SAP is the short form of Systems, Applications and Products. SAP is not entirely the name of mankind one of the broadest software development enterprise but as well the name of the software product originated by this enterprise. SAP AG, the authorized name of the enterprise since it was made in Germany, in the first place thought of providing customers with a tool with which they can interact with a only master info base for each and every application necessary across the company.
The idea of the tool got functional in the form of a financial accounting system referred SAP R/1, the beginning version of SAPs iconic enterprise software. The improved version of this application, SAP R/2, was founded towards the end of 1970s, which was mainframe established business application software. Later on, SAP AG launched a client -server version of the software addressed SAP R/3, after the advent of divided client -server computing.
SAP R/3 Functionality:
SAP applications, established around their current R/3 system allows R/3 to comprehend complete procedure and management tasks throughout the enterprise. That signifies, SAP R/3 supply the users with the instrument to supervise financial, asset, and cost accounting, production operations and materials, personnel, plants, and archived documents. It functions on Advance Business Application Programming (ABAP), which is a 4th generation programming language. The R/3 system is compatible with several platforms including Windows 2000 and utilises the client/server model.
SAP R/3 Modules:
SAP R/3 is made up of whatsoever individual operational software modules. These modules combine to execute the functional and management tasks of any enterprise. Each individual working module manages particular activities on it's own, but is related to the others where applicable. The most wide used modules are - Logistics, Accounting and Human Resources.
Logistic Module:
Logistics is the way of supplementary a process from starting to finish on request e.g. delivering a product at its desirable location, on request. Different tasks needed in this process are Sales and Distribution, Production Planning, Materials Management, Plant Maintenance and Quality Management etc among others, each of which are integrated by Logistic module. The varied components of this module and illustration of their functions are:
Logistic Module
Sales and Distribution module: Presales support, customer enquiry processing, quotation working, sales order processing, delivery working, billing and sales information system.
Material Management module: Purchasing processes, warehouse management, inventory, invoicing etc.
Production Planning module: Planning & preparing production operation e.g. transport and storage of raw materials, by-products and waste etc.
Plant Maintenance module: Repair of buildings, maintenance of tools used in the production operation, information about machine usage and possible downtime etc.
Quality Management module: All processes associated to the quality assurance of the product.
Accounting Modules:
This module executes every financial and accounting activities or in different words this module meets each financial and accounting needs of the corporation. It is self-activating to supply management and reporting of ledger, receivables & payments etc. which in turn enables balance sheets and Profit & Loss (P&L) accounts to be self updated, repeatedly. Hence, the basic advantage of this module is that the book shines the real situation. The several elements of this module are:
Accounting Module Examples
Financial Accounting: Accounting functions example balance sheet, Profit & Loss statements, Compliance with accounting regulations etc.
Controlling: Controls cost as well as corporations targets, Provides information needed for decision making and future preparation.
Enterprise Controlling: Collates internal data with market information to bring out subjects in marketing strategies.
Treasury: Corporate banking, Money, budget management etc.
Capital Investment Management: Helps finance organizations in their capital investments and tracking.
Project System: Project Management I, Project budgeting, Project execution/integration, Information system, Operative structures, Project planning etc.
Human Resources Modules
As the words itself determines, Human Resource Modules leaves a accomplished HR management system, dealing areas such as personnel planning and recruitment, personnel and salary administration, payroll and personnel development.
Initially, SAP executions as well as its training were coordinated on module lines. For illustration, in a training class on Logistics, you would learn many things about SD such as SD-MD, SD-GF, SD-SLS etc but not much about the rest of the SAP system and how SD fits into it. So, the integration between modules was altogether absent. This used to result to that, the results were optimized on the modules, but missed in integration. So, to accomplish that integration, programs are nowadays being organised along the procedure lines such as:
Order to Money (including parts of SD, FI-AR and probably TY as well)
Purchase to Pay (including MM-Purchasing and FI-AP)
Record to Report (FI-GL etc)
With adaptation of process lines rather of modules for results, SAP nowadays are moving away from reporting their system as a set of modules, and nowadays are practicing the term answers. These Original Dimension Products can stand solely or be integrated with R/3. It's benefits include elimination of duplication, discontinuity and redundancy in data and gains the return on investment made on IT implementations. It presents quality info designed for the Organisation as a wholly Faster and cheaper which in turn presents quality information to make a quality organisation. These answers are:
Financials
Human Resources
Customer Relationship Management
Supplier Relationship Management
Product Lifecycle Management
Supply Chain Management
Business Intelligence
Conclusion:
SAP is an Corporation Wide Business Answer. This signifies that organisations running SAP can effectively integrate all of its business actions including finance, purchasing, sales, human resources etc. This integration allows each business proceedings in an organisation are available to all regions of that organization and there is no duplicate of info in separated systems.
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