What is SAP? What are SAP Modules and Functions?

26.03.2024

SAP is a software system that enables effective management of data between organizations, facilitating profitable management and providing solutions for information flow. This system aims to strengthen coordination and communication across different departments of organizations and enhance integration.

As the system allows multiple functions to be performed together, its importance is growing day by day. With SAP, organizations can establish strong communication among departments that are crucial to them and ensure the healthy and simultaneous execution of functions.

With SAP solutions you can manage procurement, production, and customer satisfaction all in one software. Data gathered on a single platform can also be processed, providing companies with the opportunity for detailed analysis to better understand their customers.

ERP (Enterprise Resource Planning) what is it?

ERP is a type of software that enables systematic and automated action in business processes to sustain maximum performance in organizations. It regulates data flows across all processes throughout an organization from a single source and facilitates the streamlining of these processes.

ERP systems collect data from various sources and prevent duplication, thus providing the ability to manage operations and data from a single source. Nowadays, these systems have become crucial in business management across various sectors.

What is SAP ERP?

SAP ERP is a system used in investment, control, finance, business auditing, projects, supply chain management, and many other areas. As it consolidates multiple systems into one, facilitating data flow and process management, this system is increasingly preferred by more companies over time.

What are SAP Modules?

SAP is a comprehensive Enterprise Resource Planning (ERP) system covering various industries and functional areas. SAP's modules are designed to support different business processes and functions, covering almost every aspect a business may need.

1. SAP SD (Sales and Distribution)

The Sales and Distribution (SD) module, used for managing bidding, pricing, and various other transactions, significantly contributes to the management and control of sales and distribution processes. This module consists of system configuration, master data, and transactions. SAP SD integrates with other modules and is responsible for the details of sales and distribution phases.

  • It handles order management and tracks order.
  • It ensures optimization of the sales process.
  • It controls inventory.
  • It manages pricing.
  • It manages discounts.
  • It handles customer relations.

2. SAP MM (Materials Managament)

It is used in the management of materials produced and processed by businesses. Different procurement processes can be managed using the MM system. SAP MM, one of the important modules, plays a key role in the supply chain. All the details in this module depend on master data.

  • It ensures supply chain management.
  • It conducts inventory control.
  • It manages relationships with supplier.
  • It ensures optimization of the procurement process.

3. SAP FICO (Financial Accounting and Controlling)

It denotes the combination of two ERP modules, Financial Accounting (FI) and Controlling (CO). The FI module tracks the flow of financial data in the business and is used for integrating information for strategic decision-making. The CO module ensures coordination of all processes within a structure, tracks them, and monitors the workflow.

  • Manages financial transactions
  • Records financial transaction data
  • Performs budget management
  • Conducts tax calculations
  • Prepares financial statements

Discover: SAP ABAP Consulting

4. SAP QM (Quality Management)

This module ensures the management of quality in ongoing processes within an organization. The Quality Management module is implemented to sustain quality in various processes and, in addition, contributes to expediting the organization's operations through functional means.

  • Quality management.
  • Quality assurance.
  • Quality planning.
  • Quality control.
  • Monitoring and improvement of quality.
  • Provision of quality training.

5. SAP PP (Production Planning)

This module, used for production management and planning, includes specialized software. It consists of basic data, processes, and system configuration for the implementation of procedures and plans used in production.

  • Plans the production process.
  • Analyzes and monitors the production process.
  • Plans production capacity.
  • Analyzes and manages production orders .
  • Optimizes the company's production process to increase efficiency.

6. SAP PS (Project System)

This module, which is highly important in SAP ERP systems, is used for planning and managing projects in existing business processes. It encompasses many tools used in processes such as service and material requisition, scheduling, planning, and cost budgeting.

7. SAP PM (Plant Maintenance)

It is one of the necessary modules for supporting and maintaining systems and equipment in organizations. It is integrated with other components such as quality management, materials management, sales, production, planning, finance, distribution, etc. Through this module, companies can easily carry out maintenance and repair activities.

  • Plans maintenance schedules.
  • Creates equipment maintenance programs and manages maintenance requirements .
  • Executes maintenance tasks. It allows you to track these activities and also records them .
  • Manages maintenance costs.
  • Monitors maintenance performance and conducts maintenance analysis.

8. SAP HCM (Human Capital Management)

It is used to improve the business processes of the human resources department of the relevant company. SAP HCM enables the processing and analysis of data in HR management. Additionally, it helps analyze the following:

  • Employee performance.
  • Promotions.
  • Management of employee salaries.
  • Payroll processes.
  • Training management.
  • Recruitment processes.

What is SAP used for?

  • The SAP system collects all data within an organization in a single point, allowing users to store and organize them.
  • It ensures that all operations are completed on one platform.
  • It enables departments within the organization to carry out their operations much more advantageously.
  • By using different modules, it ensures that processes belonging to different departments within the organization are conducted much more efficiently.
  • Corporate transactions, payments, personnel training, personal planning, and other applications can also be effectively and efficiently maintained through modules.

How does SAP ERP work?

The SAP ERP system operates by bringing together various resources. Each application developed in the software field deals with a different process but operates from the same database. ERP, on the other hand, has a complex structure and facilitates all processes by integrating them into a single system. Thus, the utilization of resources belonging to organizations becomes efficient. Organizations using ERP software can consolidate data and manage successful processes in delivering data to the necessary places.

SAP ERP Features

The features of SAP ERP can be listed as follows:

  • They are packages targeting all industries and can be customized during installation.
  • They can be enhanced with additions in specific industry sectors.
  • It is an application software. It operates in a layered structure consisting of servers, databases, and clients.
  • It consolidates the data of business processes and master data.
  • It provides solutions with its applications.
  • It has a supportive structure for corporate functions, making it functional.
  • The system, designed independently of regions and countries on a global scale, can also be used for regulatory compliance and applications that may vary according to regions or countries.
  • ERP, with its functional structure offering ease of use globally, can be implemented across all industries.
  • ERP packages also support continuous and regular practices such as payments, orders, and procurement.
  • The interface and graphics of the system are consistent across all application areas.

How is SAP Expanded?

The expansion of SAP stands for "Systems, Applications, and Products."

Is SAP Software Paid?

SAP software is paid, but demo versions are available on platforms where the software is procured or training is provided for its use. With this version, you can use it for trial purposes for a certain period. To successfully implement SAP modules, you need support from experts. Pricing can vary depending on your processes, the number of users, etc.

Discover: SAP BTP ve SAP Analytics Cloud (SAC), with example...

What is the Difference Between ERP and SAP?

ERP stands for Enterprise Resource Planning, and SAP software is a type of software within the scope of ERP. SAP software is the most widely used ERP program worldwide and some types of it can also be used with artificial intelligence support. In this context, the concept of ERP is much broader than SAP.

You may be interested in: SAP S/4HANA Conversion Consultancy