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SAP Basics for Beginners

What is SAP software?

SAP stands for Systems, Applications and Products in data processing (German acronym). It is an ERP (Enterprise Resource Planning) software by the same name as the company. The SAP is employed in various businesses such as- Aerospace, Automotive, Finance, Defense & Security, Healthcare, Education, Media, Life science, Oil & Gas, Pharmaceuticals, Telecommunications.

What is SAP ERP?

An ERP is a logical representation of the business which is centrally connected and helps in doing the necessary transactions and real-time reporting. For example, suppose you are working with Amex and Amex has various divisions. e.g. Risk Analysis, Accounts Payables, Sales & Marketing, CRM, etc. If there is an ERP (SAP), it will have the necessary 'specific' screens to capture the transactions happening in various departments, and the access is also restricted. i.e. A CRM person cannot access the Risk Analysis screen, etc. And when your MD or MIS team wants to review the performance at various levels, they can just pull out multiple reports of the transactions happened in various functions.

Benefits of SAP

With the help of SAP, the organisational teams are able to work independently, with the necessary access controls and approvals and also the management is able to consolidate and integrate regulatory performance reporting.

SAP modules

There are two main types of SAP ERP Modules -
  • Functional Modules
  • Technical Modules
SAP has a total of 25 modules; however, all the 25 SAP modules are not applied. The most implemented modules are the most successful and have the highest job opportunities. Such vital SAP modules utilised by numerous organisations are as follows:
1. ECC FI - This module manages the financial transactions within the enterprise. It helps employees to manage data involved in any business and financial transaction in a unified system.
2. SAP HR/HCM - This module is SAP's one of the essential modules which manage all tasks from hiring an employee to its final termination in an organisation. The various components in this module are Personnel Management, Organizational Management (OM), Time Management and Payroll.
3. SAP SCM - SAP SCM stands for Supply Chain Management. This module deals with Production Planning (PP), Demand Planning and Business Forecasting. It also controls the information flow and product flow in the organisations.
4. SAP NetWeaver - SAP NetWeaver enables Provision, Composition and Management of SAP and non-SAP applications across all heterogeneous software environments.
5. SAP BI - This Module deals with analysing and reporting data from various heterogeneous data sources
6. SAP HANA - SAP HANA is a significant module of SAP. It is an in-memory data platform that is deployable as an on-premise appliance, or in the cloud. It is a revolutionary platform, which is best suited for performing real-time analytics and developing and deploying real-time applications.
7. SD MM - SAP MM refers to Materials Management (MM). It is a part of the Logistics area which manages the procurement activity of an organisation. It supports all aspects of material management (planning, control etc.). It deals with material management and inventory management.

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