Because SAP has so many modules, this article focuses on the most common ones and the business functionality they provide.
SAP has grown into one of the world’s largest and most successful software companies during the last 50 years. The company provides a variety of software that allows organizations to integrate practically all of their processes into a single platform. Bringing together different parts of your organization, like as accounting, logistics, and human resources, allows your company to have a deeper understanding of how each component interacts with and influences one another. Understanding these interconnections gives you more control over your company.
SAP Financial Accounting(What are the SAP Modules)
Even if you design and manufacture the most cutting-edge product or service available, if you fail to keep accurate records, your business will collapse.
This is why the SAP Financial Accounting (FI) module is one of the most important SAP business suite components. SAP FI is the SAP system’s financial backbone and serves as your company’s general ledger. FI is made up of numerous sub-modules that track and record all goods, services, and other financial transactions that flow from your organization to your consumers, clients, vendors, and financial institutions.
General Ledger (GL), Accounts Payable (AP), Accounts Receivable (AR), Bank Accounting (BA), Asset Accounting (AA), Travel Management (TV), and others are among the sub-modules.
Each of these sub-modules has the ability to integrate with other disciplines. The Accounts Receivable sub-module, for example, works together with the Sales and Distribution module to keep track of transactions between your organization and clients. Your organization can keep accurate external spending records in real-time by using the tools given by the SAP Financial Accounting module. This will show you how different parts of your business influence your revenue.
SAP Controlling Module(What are the SAP Modules)
The planning of your company’s finances does not end with the reporting of external expenses. For reporting and organizational planning, knowing where your money is spent inside is just as important. Maintaining a close check on your internal spending allows you to determine which sections of your company are appropriately supported, where additional funds would be useful, and where you can afford to shift funds.
This is exactly what the Controlling (CO) module allows your organization to achieve. SAP CO is closely linked to the Financial Accounting module, and the two are frequently referred to as SAP FICO. CO is where you keep track of your internal accounting, but it’s also where you keep track of your company’s financial planning.
You may compare real-time financial data to the company’s financial plans in CO. Cost Element Accounting (OM-CEL), Cost Center Accounting (OM-CCA), Activity-Based Accounting (OM-ABC), Internal Orders (OM-OPA), Product Cost Controlling (PC), Profitability Analysis (PA), and Profit Center Accounting are the seven sub-modules that make up the Controlling module (PCA).
CO’s numerous sub-modules enable you to look for discrepancies in your company’s finances and determine what improvements to make to your financial goals are necessary. SAP FICO, when utilized in tandem, provides a comprehensive picture of your company’s financial status. Despite the fact that these two modules only make up a small part of the SAP business suite, they are two of the most often used because of their importance in achieving financial stability.
SAP Materials Management(What are the SAP Modules)
Maintaining an uninterrupted supply chain must be a key focus when delivering products to clients. If your supply chain fails and clients do not receive the things they ordered on time, it can have major consequences for your organization. This is why putting in place a good supply chain management system is so important.
The SAP MM module, as the name implies, manages the materials that are demanded, processed, and generated in businesses. Vendor master data, consumption-based planning, purchasing, inventory management, invoice verification, and so on are some of the most common sub-components of the SAP MM module.
SAP Production Planning
The Manufacturing Planning (PP) module makes it easier than ever to create production orders. This module is useful when your organization is ready to plan its future production in order to prepare for the future. Assembly-to-Order (LO-ASM), Master Planning (MP), and Sales and Operations Planning are some of the sub-modules in this module (SOP). The numerous sub-modules collaborate to transmit the orders required to keep the supply chain working smoothly.
SAP Quality Management
The SAP QM module aids in the management of quality in manufacturing processes within a business. This quality management module aids an organization in accelerating its operations by implementing a structured and functional approach to quality management across several activities. Procurement and sales, production, planning, inspection, notification, control, and audit management are all covered by the SAP QM module.
The QM module is made up of various components, each with its unique set of capabilities. The Quality Planning (PT) component, for example, allows you to define inspection requirements for vendor materials and your company’s products. You can use Quality Inspection (IM) to schedule inspections, keep track of outcomes, and report faults.
SAP Human Capital Management
The SAP HCM module improves enterprise HR departments’ work processes and data management. This module handles everything from hiring a person to evaluating their performance, as well as managing promotions, compensations, payroll, and other HR-related tasks. This SAP ERP HCM module is used to manage the details and job flow of the most significant resource, namely human resources. One of the most important ways your firm can try to increase its productivity is by managing and optimizing its employees. The SAP Human Capital Management (HCM) module gives your firm command over a variety of HR functions. The tools given by HCM can handle anything from employee engagement to workload predictions to scheduling and payroll.
SAP Sales and Distribution
This module integrates with SAP MM, PP, and FICO modules. Most importantly, the transactions are in real-time; hence Inventory and Financial calculations update with each transaction. Sales data is captured to forecast future planning, which helps the Warehouse team to keep the required stock and the Production team calculate demand and capacity beforehand. Master data, sales support, sales, shipping and transportation, billing, credit management, sales information system, and so on are some of the SAP SD module’s sub-components.