Every company has some departments, and it is fundamental to integrate every of these sections to work uniformly. SAP software integrates all internal operations by means of various modules. The advanced SAP technology enables R/3 to deal with business management works throughout every of the segments of the organization. Any change in the organisational structure can be easy pondered by the SAP technology, and it offers space for the expansion. Both decentralization and centralization of procedures can be done efficiently if the organisation has set up SAP software. Irrespective of the size of the business, SAP helps the organisation to prepare all its business activities.

Components of SAP

Equally with any software system, SAP has a elementary system also known as the kernel. This is the engine of the entire R/3 system liable for taking out all functionalities. The screen interpreter checks user input and displays error messages. This takes the input fed to the system and transfers the input to the ABAP/4 interpreter. This interpreter executes the instructions written in ABAP/4 programming language which was used to develop SAP. The SAP system also has a data dictionary for storing all types of definitions used in various modules. Flow control is handled by as a separate component which maintains perfect data flow inside the system. Interfaces connect the software with the outside environment enabling communication between the user and the system.

Modules of SAP

For any business, logistics, accounting, and human resources are the three essential departments carrying out the entire business process. SAP has separate modules for each of these departments and these modules help the organization to execute the business management tasks. SAP enables customization, making the software suitable for any organizing doing any type of business.

Logistic modules

The business processes like sales and distribution handling (SD), material management (MM), production planning (PP), plant maintenance (PM), and quality management (QM) are taken care of by logistic modules. Any organization will require most of these modules if not all. Materials used for production are handled by the MM module. PP and PM modules ensure that the production process works as required. QM module is used to handle quality assurance of the product. The ultimate aim of any organization is to sell its products and hence, SD module is an important module in the SAP system.

Accounting modules

Accounting is important for an organization and the SAP accounting modules automate the accounts department. The FI module handles all accountings like ledgers, balance sheets, and profit and loss statements. Asset management is also carried out by the FI module. The controlling functionality is carried out by the CO module which controls not only the costs but also the objectives of the company. Enterprise controlling (EC) module takes care of integration of company information and external markets to devise efficient marketing strategy.

Human resources modules

Among the various departments, the HR department is crucial for an organization. The personal administration (PA) module of the SAP system takes care of maintaining the records of all the staff. Any department can get access to these data and this module makes the updated data available throughout the system. The personnel planning and development (PD) module incorporates all that is essential for managing the man power of the organization.