Friday, February 20, 2009

What Is The Right SAP Module For Your Business

By Austin Flores

SAP is the short form of Systems, Applications and Products. SAP is not simply the name of worlds 1 of the greatest software development organisation but also the name of the software product developed by this organization. SAP AG, the official name of the company since it was processed in Germany, in the first place thought of allowing customers with a tool with which they can interact with a sole master info base for each and every application required across the enterprise.

The mind of the tool become functional in the process of a financial accounting system named SAP R/1, the first version of SAPs iconic enterprise software. The amended version of this application, SAP R/2, was established towards the end of 1970s, which was mainframe established business application software. After, SAP AG launched a client -server version of the software addressed SAP R/3, after the advent of separated customer -server computing.

SAP R/3 Functionality:

SAP applications, built round their current R/3 system allows R/3 to comprehend full operation and management tasks throughout the enterprise. That signifies, SAP R/3 cater the users with the tool to manage financial, asset, and cost accounting, production processes and materials, personnel, plants, and archived documents. It runs on Advance Business Application Programming (ABAP), which is a 4th generation programing language. The R/3 system is compatible with various platforms including Windows 2000 and applies the client/server model.

SAP R/3 Modules:

SAP R/3 is made up of different personalized working software modules. These modules merge to execute every of the operating and management tasks of any enterprise. Each individual functional module handles specified activities on its own, but is connected to the others where applicable. The most widely used modules are - Logistics, Accounting and Human Resources.

Logistic Module:

Logistics is the method of completing a process from beginning to complete on invite e.g. delivering a product at it's desired location, on request. Individual tasks involved 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 several components of this module and example of their procedures are:

Logistic Module


Sales and Distribution module: Presales support, client enquiry processing, quotation forming, sales order processing, delivery working, billing and sales information system.

Material Management module: Purchasing operations, warehouse management, inventory, invoicing etc.

Production Planning module: Planning & organizing production procedure 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, data about machine usage and possible downtime etc.

Quality Management module: Each procedures related to the quality assurance of the product.

Accounting Modules:

This module executes every last financial and accounting activities or in different words this module meets every financial and accounting needs of the corporation. It is self-activating to offer management and reporting of ledger, receivables & payments etc. which in turn allows balance sheets and Profit & Loss (P&L) accounts to be self updated, unceasingly. Thus, the fundamental advantage of this module is that the book reflects the real situation. The several components 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 necessary for decision planning and future planning.

Enterprise Controlling: Collates internal information with market data to bring out issues in marketing strategies.

Treasury: Corporate banking, Money, budget management etc.

Capital Investment Management: Helps finance corporations in their capital investments and tracking.

Project System: Project Management I, Project budgeting, Project execution/integration, Info system, Operative structures, Project planning etc.

Human Resources Modules

As the words itself defines, 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.

Beginning, SAP implementations as well as its preparation were prepared 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 totally absent. This applied to lead to that, the results were optimized along the modules, but lacked in integration. And So, to achieve that integration, programmes are nowadays being organized on the process 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 operation lines alternatively of modules for solutions, SAP nowadays are moving away from drawing their system as a set of modules, and now are using the term results. These Fresh Dimension Products can stand exclusively or be integrated with R/3. Its gains take on elimination of duplication, discontinuity and redundancy in info and increases the return on investment made on IT implementations. It delivers quality info designed for the Enterprise as a whole Faster and cheaper which in turn presents quality info to produce a quality organisation. These solutions are:

Financials
Human Resources
Customer Relationship Management
Supplier Relationship Management
Product Lifecycle Management
Supply Chain Management
Business Intelligence

Conclusion:

SAP is an Organization Wide Business Result. This means that corporations running SAP can in effect integrate all of its business actions taking on finance, purchasing, sales, human resources etc. This integration allows every business transactions in an organization are accessible to each areas of that enterprise and there is no duplication of information in separate systems. - 15634

About the Author: