In the last years, the use of ERP’s software (Enterprise Resource Planning) has become the digital core of companies that looking to optimize the management of their business. In this scenario, SAP stands out as a complete solution to achieve maximum productivity. With SAP modules you can ensure that all organizational structure run efficiently.
The SAP System was designed to integrate all of company and provide instant information, using a single source of truth, real-time processes, dynamic planning and analysis. Therefore, companies from all departments can get a deep and wide level of functionalities combined with a degree of flexibility in personification.
Do you want to know more what are the SAP ERP modules and how They can contribute with your company? Check down below.
What are the SAP modules?
SAP modules are divided according to the resources that are available on the platform and each company can get those that are necessary in the development of its activities. However, the large number of modules and acronyms can make understanding confusing.
To help you in this process, let’s better understand what are 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 (MM)
– 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)
With these ones, we are going to deepen understanding of some of the most used by Brazilians organizations:
- Financial Accounting (FI)
The Financial Accounting module is responsible for tracking financial data flow throughout the organization in a controlled manner and for integrate all information for effective strategic decision making.
With this in mind, the FI SAP module includes a lot of activities, such as: creation of the organizational structure, global financial accounting settings, bills to pay, bills to receive, etc.
- Controlling (CO)
The SAP CO module makes the coordination, monitoring, optimization easier into all the organization processes. Besides that, it helps in the analysis of real numbers, making a comparison with the planned data in the business strategies.
To achieve its goal, the SAP CO module works with many functionalities: cost element accounting, cost centers, activity-based accounting, product cost control, profitability analysis, profit or loss assessment of individuals and independents areas within an organization, among others.
- Sales and Distribution (SD)
SAP SD is one of the most important modules of SAP, having a high level of integration complexity. Sales and Distribution is used by the organizations to support their sales activities and products and services distribution, starting from the inquiry to the order and ending with the delivery.
SAP SD can monitor an infinity of activities that happens inside of an organization, such as products inquiries, quotation (pre-sales activities), order management, pricing, delivery scheduling (sales activity), picking, packing, goods issue, shipping products to customers, delivering products and invoicing.
In all these processes, several modules are involved, such as FI (Financial Accounting), CO (Controlling), MM (Materials Management), PP (Production Planning), LE (Logistics Execution), among others.
- Materials Management (MM)
SAP MM module handles the movement of materials in the organization – including some activities like logistic, supply chain management, sales and delivery, deposit management, production and planning.
- Supplier Relationship Management (SRM)
SRM module manages the relationship with suppliers. That is, it deals with the effective and efficient transition of products and services between an organization and its suppliers. The main process covered in this section is the procurement of products such as direct materials, indirect materials and services. This module can be effectively integrated into the planning, accounting and inventory system.
- Human Capital Management (HCM)
Among the SAP modules is also the HCM – which encompasses activities related to Human Resources. It is in this module that data related to employees is entered for administrative, time recording and payroll purposes.
The HR system has very strong integration points (where data is transmitted without human intervention) with practically all the other SAP modules. Besides that, there is a very close integration among the HR’s submodules.
- Production Planning (PP)
SAP PP module aims to make the planning and management of production. It works in conjunction with sales to be possible to make the sales and operations planning, distribution resource planning, material requirements planning, Kanban, product cost planning, and more.
- Quality Management (QM)
SAP QM module contributes to the management of the quality in productions in an organization’s processes. It is a help for the organization to accelerate its business – adopting a structured and functional way of managing quality in different processes.
To achieve its purpose, QM module has integration with a lot of other processes: purchase and sales, production, planning, inspection, notification, controlling, audit management and so on.
- Plant Maintenance (PM)
SAP PM module manages all maintenance activities of a organization. In practice, we are talking about the key activities that include inspection, notifications, corrective and preventive maintenance, repairs and other measures to maintain an optimal technical system.
- Advanced Business Application Programming (ABAP)
Finally, we have ABAP, which refers to the term Advanced Business Application Programming and can be understood as “advanced business application programming”. It represents the most used development language within SAP.
Did you already know these SAP modules? Want to find out how to explore the full potential of these solutions in your business? We support you in all business areas, gained through years of experience and in the most varied segments, so check out how LTS can help you in SAP consulting.