SAP ( Systems
Applications and Products)
Introduction
SAP is a
German Software company and is the fourth largest software company in the
world. It’s name comes from German,
Systeme Anwendungen und produkte in Der
Datenverarbeitung. (Systems Applications
and Products in Data Processing) and founded by five former employees
of IBM in 1972- Hasso Plattner, Dietmar Hopp, Klaus Tschira, ClausWellenreuther and Hans-Werner Hector.There are three kind of versions:-
- First
version of Software was launched in 1972 known as the SAP R/1 system stands for real-time data processing. It is one tier
architecture in which three layers- Presentation, Application and Database are
installed in one server.
- Second version of SAP R/2 was released in 1979 with IBM’s Database and a dialogue-oriented business application. It’s handle different language and currencies and is two tier architecture in which three layers- Presentation, Application and Database are installed in two separate server.
- Third version of SAP R/3. SAP upgraded R/2 to R/3. It’s the client/server version of the software and is three tier architecture in which three layers Presentation, Application and Database are installed in three server.
What is SAP ERP and Why do we need it?
ERP
stands
for Enterprise Resource Planning software,
there is only one of provider called SAP and other providers like Oracle, Infor
Orbis, Epicor and Microsoft.
Why do we need it? Here is the whole process that is
followed by any business unit. For example:-
- Let’s say a customer approaches the sales team to buy a particular product.
- The sales team (ST) approaches the inventory Department (ID) to check the availability of the product.
- In this case, the product is out of stock the
ST approaches the production
planning (PP) Department to manufacture
the product.
- The PP
team checks with the ID for
availability of raw material.
- If raw material is not available within the
inventory the PP team buys the raw
material from the vendors.
- Then PP
forwards the raw materials to the shop floor execution for actual production
- Once ready the (shop) floor team forwards the
goods to the sales team who in turn deliver it to the customer.
- The ST
updates the finance Department with revenue generated by the sale of the
product. The PP team updates the
finance department with payments to be made to different vendors for raw
materials.
- All Departments approach HR for any Human Resource related issue.
SAP FICO:-
SAP
FICO
stands for FI (Financial Accounting)
and CO (Controlling) is a module
used for financial reporting both externally and internally covers almost all
business process encountered in various industries and one of the very
important and widely implemented modules in SAP. It's record to all financial
transactions that are posted by an entity and produce financial statements that
are accurate at the end of the trading period.
SAP MM:-
SAP MM stands for Materials Management (MM) is module in SAP consists of several
components and sub-components and widely used are Master Data, Purchasing and
Inventory. It helps an organization to manage its
material resources and inventory transactions proficiently and also helps to
access real-time stock information, track part recognition information,
mechanize transactions with wireless barcode expertise in multiple dimensions
etc.
SAP PP:-
SAP PP stands for Production Planning (PP) is the application module is used to plan
and control the manufacturing activities of a company consists of all system
configuration, master data and complete solution to Produce process.
SAP
SD:-
SAP SD stands for Sales and Distribution (SD) is important module of SAP and it is a
part of logistics and it is the main of activity SD are sales taking care of
order, distribution of shipments to customers, billing process, customer
invoice, delivery. It's module fully integrated with other modules in the SAP
R/3 system such as Finance, Purchasing (MM), Production Planning (PP).
SAP
HR:-
SAP HR stands for Human Resources (HR) manages employee life cycle and payroll. These
are all aspects are covered from training to appraisal. If
there is issue, All Departments approach HR
for any Human Resource related issue.
