SAP is the short form of Systems, Applications and Products. SAP is not just the name of Earth some of the widest software development organisation but also the name of the software product built by this organisation. SAP AG, the authorized name of the enterprise since it was shaped in Germany, in the first place thought of allowing clients with a tool with which they can interact with a sole master data base for each and every application needed across the company.

The idea of the tool became functional in the form of a financial accounting system listed SAP R/1, the introductory version of SAPs iconic enterprise software. The improved version of this application, SAP R/2, was set up towards the end of 1970s, which was mainframe founded business application software. Later, SAP AG launched a client -server version of the software called SAP R/3, after the advent of distributed client -server computing.

SAP R/3 Functionality:

SAP applications, developed round their current R/3 system enables R/3 to treat complete performance and management tasks throughout the enterprise. That means, SAP R/3 cater the users with the instrument to handle financial, asset, and cost accounting, production operations 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 whatever personalized functional software modules. These modules combine to execute every of the working and management tasks of any enterprise. Every individual functioning module deals special activities on it's own, but is united to the others where applicable. The most widely used modules are - Logistics, Accounting and Human Resources.

Logistic Module:

Logistics is the method of supplementary a process from beginning to complete on invite e.g. delivering a product at its wanted location, on request. Various tasks needed in this process are Sales and Distribution, Production Planning, Materials Management, Plant Maintenance and Quality Management etc among others, every last of which are integrated by Logistic module. The different components of this module and illustration of their functions are:

Logistic Module

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

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

Production Planning module: Planning & organising production operation 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 process, information about machine usage and possible downtime etc.

Quality Management module: Each processes connected to the quality assurance of the product.

Accounting Modules:

This module performs every last financial and accounting activities or in another words this module plays all financial and accounting needs of the corporation. It is automated 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. Therefore, the original reward of this module is that the book reflects the real situation. The various factors 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 objectives, Provides info needed for decision planning and future planning.

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

Treasury: Corporate banking, Cash, budget management etc.

Capital Investment Management: Aids finance organisations in their capital investments and tracking.

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

Human Resources Modules

As the words itself specifies, Human Resource Modules supplies a full HR management system, handling fields such as personnel preparation and recruitment, personnel and salary administration, payroll and personnel development.

Beginning, SAP implementations as well as its training were organised on module lines. For instance, in a training course on Logistics, you would see many things about SD such as SD-MD, SD-GF, SD-SLS etc but not much about the remaining of the SAP system and how SD fits into it. So, the integration between modules was entirely absent. This utilised to result to that, the solutions were optimized along the modules, but lacked in integration. Therefore, to achieve that integration, programmes are nowadays being organized on the operation 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 adjustment of process lines alternatively of modules for results, SAP now are moving away from describing their system as a set of modules, and nowadays are applying the term answers. These New Dimension Products can stand exclusively or be integrated with R/3. It's profits include elimination of duplication, discontinuity and redundancy in information and increases the return on investment made on IT implementations. It delivers quality information designed for the Organization as a completely Faster and cheaper which in turn delivers quality info to produce a quality organisation. These answers are:

Financials

Human Resources

Customer Relationship Management

Supplier Relationship Management

Product Lifecycle Management

Supply Chain Management

Business Intelligence

Conclusion:

SAP is an Organisation Wide Business Answer. This signifies that corporations operating SAP can in effect integrate all of its business activities including finance, purchasing, sales, human resources etc. This integration allows each business transactions in an enterprise are accessible to every last fields of that enterprise and there is no duplicate of data in separate systems.