In recent years, the use of ERP software (Enterprise Resource Planning) has become the digital core of companies looking to optimize the management of their business. Within this context, SAP stands out as a complete solution to achieve maximum productivity. By using SAP modules, you can ensure that the entire organizational structure runs efficiently.

The SAP System was designed to integrate all company departments and provide instant information, using a single source of truth, real-time processes, dynamic planning, and analysis. As a result, companies from all departments can access a deep and wide range of functionalities, combined with a degree of flexibility in customization.

Are you interested in learning more about what the SAP ERP modules are and how they can benefit your company? Check below.

What are the SAP modules?

SAP modules are divided according to the resources available on the platform, and each company can choose the ones necessary for the development of its activities. Nevertheless, the large number of modules and acronyms can make understanding them confusing.

To guide you through this, let’s explore the most important SAP modules:

  • Financial Accounting (FI)

  • Financial Supply Chain Management (FSCM)

  • Controlling (CO)

  • Materials Management (MM)

  • Sales and Distribution (SD)

  • Logistics Execution (LE)

  • Production Planning (PP)

  • Quality Management (QM)

  • Plant Maintenance (PM)

  • Project System (PS)

  • Human Capital Management (HCM)

  • Supplier Relationship Management (SRM)

  • Fixed Asset Management (AM)

  • Business Warehousing (BW)

  • Warehouse Management (WM)

  • Advanced Business Application Programming (ABAP)

From this list, we will take a deeper look into some of the most commonly used modules by Brazilian organizations:

  1. Financial Accounting (FI)

    The Financial Accounting module is responsible for tracking the flow of financial data throughout the organization in a controlled manner and for integrating all information for effective strategic decision-making.

    With that in mind, the FI SAP module includes several activities, such as: creation of the organizational structure, global financial accounting settings, accounts payable, accounts receivable, and more.

    Controlling (CO)

    The SAP CO module facilitates coordination, monitoring, and optimization across all organizational processes. In addition, it supports the analysis of actual numbers by comparing them with planned data from business strategies.

    To do so, the SAP CO module includes many functionalities: cost element accounting, cost centers, activity-based accounting, product cost control, profitability analysis, profit or loss assessment of individual and independent areas within the organization, among others.

    Sales and Distribution (SD)

    SAP SD is one of the most important SAP modules, with a high level of integration complexity. Sales and Distribution is used by organizations to support their sales activities and product and service distribution—from inquiry to order, and finally, to delivery.

    Specifically, SAP SD can monitor a wide range of internal activities, such as product inquiries, quotations (pre-sales activities), order management, pricing, delivery scheduling (sales activities), picking, packing, goods issue, shipping to customers, and invoicing.

    Throughout these processes, several other modules are involved, such as FI (Financial Accounting), CO (Controlling), MM (Materials Management), PP (Production Planning), LE (Logistics Execution), among others.

    Materials Management (MM)

    The SAP MM module handles the movement of materials within the organization—including activities like logistics, supply chain management, sales and delivery, inventory management, and production planning.

    Supplier Relationship Management (SRM)

    The SRM module manages supplier relationships. In other words, it handles the efficient transition of products and services between an organization and its suppliers. The main process covered is the procurement of direct materials, indirect materials, and services. Moreover, this module integrates effectively with planning, accounting, and inventory systems.

    Human Capital Management (HCM)

    Another essential SAP module is HCM, which encompasses activities related to Human Resources. This is where data related to employees is recorded for administrative, time tracking, and payroll purposes.

    Notably, the HR system features strong integration points—transmitting data automatically—across nearly all other SAP modules. Additionally, there is close integration among its submodules.

    Production Planning (PP)

    The SAP PP module focuses on production planning and management. It works in collaboration with the sales module to enable sales and operations planning, distribution resource planning, material requirements planning, Kanban, product cost planning, and more.

    Quality Management (QM)

    The SAP QM module supports quality management in production processes. It helps organizations implement a structured and functional approach to managing quality across various processes.

    To fulfill its role, the QM module integrates with several other operations: purchasing, sales, production, planning, inspections, notifications, controlling, audit management, and more.

    Plant Maintenance (PM)

    The SAP PM module manages all of an organization’s maintenance activities. In practice, this includes key tasks like inspections, notifications, corrective and preventive maintenance, repairs, and other actions to ensure optimal technical performance.

    Advanced Business Application Programming (ABAP)

    Finally, we have ABAP, which stands for Advanced Business Application Programming. It is the primary development language used within SAP, allowing for custom solutions and system enhancements.

    Were you already familiar with these SAP modules? Want to learn how to fully leverage their potential in your company? We offer support across all business areas—built on years of experience in diverse industries. Explore how LTS can assist you with SAP consulting.