SAP ERP (Enterprise Resource Planning) is a comprehensive and integrated suite of business

applications offered by SAP (Systems, Applications, and Products in Data Processing). It is one
of the leading enterprise resource planning solutions available in the market.

SAP ERP provides organizations with a range of modules and functionalities to manage various
aspects of their business operations, including finance, human resources, procurement,
manufacturing, supply chain management, sales, and more. It serves as a centralized system
that integrates different departments and processes, enabling efficient data sharing and
streamlined workflows.

Key features and modules of SAP ERP include:

1. Financial Accounting (FI): Handles financial transactions, general ledger accounting, accounts
payable and receivable, asset accounting, and financial reporting.

2. Controlling (CO): Supports cost accounting, profit center accounting, internal orders, and
profitability analysis to provide insights into the company's financial performance.

3. Materials Management (MM): Manages procurement, inventory management, material

valuation, vendor management, and purchase order processing.

4. Sales and Distribution (SD): Covers sales order management, pricing, shipping, billing, and
customer relationship management to facilitate sales processes.

5. Production Planning (PP): Supports production planning and control, master production
scheduling, bill of materials, work center management, and capacity planning.

6. Human Capital Management (HCM): Includes functionalities for managing employee data,
payroll, time and attendance, recruitment, talent management, and organizational
management.

7. Supply Chain Management (SCM): Supports supply chain planning, procurement, demand
management, logistics, warehouse management, and transportation management.

8. Quality Management (QM): Manages quality planning, inspections, quality control, and
quality certificates to ensure product quality and compliance.
9. Project System (PS): Enables project planning, budgeting, execution, and tracking for
managing complex projects.

SAP ERP is known for its scalability, flexibility, and extensive customization options to meet
specific business requirements. It helps organizations streamline their processes, optimize
resource utilization, improve productivity, and make data-driven decisions.

Note that SAP has also introduced its next-generation ERP solution called SAP S/4HANA, which
is built on an in-memory computing platform, providing real-time analytics, simplified
processes, and a modern user experience.