SAP Explained

What is SAP?

 SAP stands for Systems Applications and Products in Data Processing.

 SAP Software was Founded in 1972 by 5 IBM Engineers Wellenreuther, Hopp,
Hector, Plattner and Tschira.
 SAP system consists of a number of fully integrated modules, which covers
virtually every aspect of the business.
 SAP is one of the largest vendors of enterprise resource planning
(ERP) software and related enterprise applications having 437,000
customers in 180 Countries, almost 100,000 employees from over 140
countries almost 28 billion dollars in revenue last year.
 SAP Business Suite
 SAP Business Suite is collection of fully integrated applications such as SAP customer
relationship management (CRM), SAP Enterprise Resource Planning (ERP), SAP
product lifecycle management (PLM), SAP supplier relationship management
(SRM), and SAP supply chain management (SCM) modules.
 Most people relate SAP with its ERP offering. But SAP now offers variety of products
to address varied needs of an organization including
 SAP HANA
High Performance Analytic Appliance uses in-memory computing, a breakthrough
technology that enables analysis of very large, non-aggregated data at
unprecedented speed in local memory (vs. disk-based database) enabling complex
analyses, plans and simulations on real-time data
 SAP Convergent Charging
SAP Convergent Charging provides a rating and charging solution for high-volume
processing in service industries. It is built upon a powerful, flexible pricing modeling,
and charging solution. SAP CC drives a powerful set of systems and user applications
to profitably rate and charge millions of service consumption events in prepaid or
postpaid environments.
 SAP Business Suite (Continued)
 SAP Global Batch Traceability
It allows you to completely trace tracked objects, for example, a batch, across both
SAP systems and non-SAP systems. is a repository for batch genealogy data (from raw
material to finished goods) that supports fast and easy where-used analysis. .
Furthermore, it helps you to minimize cost and corporate risk exposure. You can also
analyze multiple objects, for example, batches, in one run.
 SAP Product Life Cycle Management
The SAP Product Lifecycle Management (SAP PLM) application provides you with a
360-degree-support for all product-related processes – from the first product idea,
through manufacturing to product service.
 Supply Chain Management
SAP Supply Chain Management (SAP SCM) enables collaboration, planning,
execution, and coordination of the entire supply network, empowering you to adapt
your supply chain processes to an ever-changing competitive environment.
 SAP Transportation Management
It supports you in all activities connected with the physical transportation of goods
from one location to another.
 SAP Business Suite (Continued)
 Customer Relationship Management
Customer-relationship management is an approach to manage a company's
interaction with current and potential customers. It uses data analysis about customers'
history with a company to improve business relationships with customers, specifically
focusing on customer retention and ultimately driving sales growth.
 Extended Warehouse Management
SAP Extended Warehouse Management gives you the option of mapping your entire
warehouse complex in detail in the system, down to the storage bin level. Not only
does this give you an overview of the total quantity of a product in the warehouse, but
you can also always see exactly where a specific product is, at any time, in your
warehouse complex. With EWM, you can optimize the use of various storage bins and
stock movements, and can combine the storage of stocks from several plants in
randomly-managed warehouses
 Governance, Risk and Compliance
Risk is unavoidable, but it can be managed. With governance, risk, and compliance
(GRC), businesses can strategically balance risk and opportunity.
SAP as an ERP
What is an ERP?
 An ERP, or Enterprise Resource Planning, is the integrated management of
core business processes, often in real-time and mediated by software and
technology.
 ERP’s facilitate the bringing together of multiple aspects of the business.

SAP Modules
SAP Modules can be categorized into
 Functional Modules.
 Technical Modules (Used for Programming a
Functional Modules
In order to replicate and enable business process, SAP offers various predefined or
standard functionality to help departments in performing various business activities.
The SAP modules which provide predefined standard functionality to replicate
actual business activity are called functional module. A functional consultant has to
understand the business requirement and use the standard functionality provided
by SAP.
 SAP FI Module - FI stands for Financial Accounting
SAP FI module is very robust and covers almost all financial business process
encountered in various industries. It is one of the widely implemented modules in
SAP.
 SAP CO Module - CO stands for Controlling
Cost Accounting (CO) module of SAP provides information to managers decision
makers to understand where the company's money is being spent. CO helps them
to optimize business costs
 SAP HCM Module - HR stands for Human Resources
SAP Human Capital Management (HCM) is also called SAP-HR. SAP HCM consists of
sub-modules like Personnel Administration (PA), Organizational Management (OM),
Time, Payroll that help in employee management.
SAP MM Module - MM is Materials Management
 Materials Management module in SAP consists of several components and
sub-components including Master Data, Purchasing, and Inventory.
SAP QM Module - QM stands for Quality Management
 SAP QM (Quality Management) is an integral part of several key business
processes of SAP like production, sales, procurement, material
management, etc.
SAP PP Module - PP is Production Planning
 SAP PP ( Production Planning) is a SAP module, specially designed for
integrating different department involved in production and
manufacturing. It has various components like Data Center, BOM, Work
Center, CRP etc.
SAP SD Module - SD is Sales and Distribution
 SAP Sales and Distribution (SD) is an important module of SAP ERP consisting
of business processes required in selling, shipping, billing of a product. The
module is tightly integrated with SAP MM & SAP PP. Key sub-modules of SAP
SD are Customer and Vendor Master Data, Sales, Delivery, Billing, Pricing
and Credit Management.
Technical Modules
These modules do not directly replicate actual business activity but provide needed
support to functional modules.
 SAP BASIS
This team is responsible to install, configure, update, patch, migrate, troubleshoot any
technical problem on SAP system to ensure system runs smoothly. BASIS team is
basically system administrator.
 SAP ABAP
ABAP stands for Advanced Business Application Programming. It’s a programming
language in which codes are written. SAP offers predefined functionality to meet
business requirement. But predefined functionality may not suffice to fulfill business
requirement hence customization is needed. Standard or predefined functionality is
basically set of codes which are already developed by SAP hence when
customization is required to meet requirement either new codes are developed or
existing standard code is copied and edited.
 SAP NET WEAVER
Organizations have become big and robust. Organization might be using various SAP
applications as well as non-SAP applications (other than SAP). In order to run business
effectively various applications and servers need to interact with each other. SAP NET
WEAVER provides a common platform where various applications/ servers can be
integrated.