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Notes 1 - Introduction To SAP

This document provides an introduction to SAP, including what SAP is, its history starting in 1972 in Germany, and the various modules it offers to support business processes like finance, materials management, sales, production, and more.

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117 views

Notes 1 - Introduction To SAP

This document provides an introduction to SAP, including what SAP is, its history starting in 1972 in Germany, and the various modules it offers to support business processes like finance, materials management, sales, production, and more.

Uploaded by

saisundargatti365
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MM: Notes 1 – INTRODUCTION TO SAP

Introduction to SAP
SAP stands for Systems Applications Products in Data Processing.
SAP is a ERP tool (Enterprise Resource Planning)
SAP is a German software implemented in the year 1972 with headquarters in Walldorf,
Germany and by following 5 IBM engineers.
• Dietmar Hopp,
• Hasso Plattner,
• Hans-Werner Hector,
• Klaus Tschira,
• Claus Wellenreuther

The History

In 1973, the company brought out the financial accounting software called, ”R1” with the
letter “R” standing for Real-Time Processing. By the end of the seventies, SAP R/2 was rolled
out with IBM’s database and a proper business application. R/2 was further stabilized during
the early years of the Eighties and the company came out with a version capable of processing
business transactions in multi-language and multiple currencies.

Further, in the 90’s introduced SAP R/3 with the Client-server architecture and GUI. It runs on
almost any of the databases and operating systems. The R/3 is a new era in ERP by moving
from mainframe to 3-tier architecture- That is Database, Application, and User Interface.

In the Twenty-first century, SAP started with the Enterprise Portal and role-based access to
business information. Later it brought in NetWeaver based on Enterprise Services
Architecture with application integration across diverse platforms for providing a one-stop
end-to-end business processing. With NetWeaver, companies can now really integrate
people, information, and processes.

In 2015, SAP introduced the S4 HANA Business suit on its own HANA Database.

DHANUSH 1
MM: Notes 1 – INTRODUCTION TO SAP

SAP’s default languages are English and German


SAP’s default currency is EURO’s but based on the company and its country we can change the
currency.

What is SAP?
SAP is a software or ERP tool which supports each and every business process of the company
such as purchasing, selling and delivering goods to customer, quality check of a material,
accounts, Manufacturing activities (converting raw materials into final product), maintenance
activities logistics activities and warehouse management etc . .

Who will use SAP?


SAP can be used by small sector industries to larger sector industries. Ex. Banking, insurance,
construction, engineering works, pharmacy, software companies, chemical industry,
manufacturing industry, automobile etc.

Why SAP?
SAP offers following advantages

• SAP will provide solutions to all the departments available in the company
• The beauty of SAP is integration of modules
• Data security
• SAP will capture each n every transaction taking place in the company.
• SAP will provide Realtime information whenever we required. Ex. Reports

Why not SAP?


SAP suffers with following disadvantage

• High cost

What is ERP?
Enterprise resource planning (ERP) is a software, companies use to manage and integrate the
different business scenarios. An ERP software system can also integrate planning, purchasing
inventory, sales, marketing, finance, human resources, and more.

What Happens in Realtime Projects?


Firstly, we functional module consultants will take the SAP business requirements from clients
(individual end users/departments). Once we receive requirements then we consultants will
check solution in standard SAP if we got solution then we consultants will do the
configuration(settings) as per client’s requirements then it will be tested by both consultants
and clients. If it is working fine then we will handover to client and client will use to do regular
business. In case if there is no solution in standard SAP then we functional module consultants
will approach ABAP consultants with a requirement document called FSD - Functional

DHANUSH 2
MM: Notes 1 – INTRODUCTION TO SAP
specification document based on FSD ABAP consultants will develop new program. (Reports,
Printouts etc…)

Modules in SAP
In SAP each object is called module.
Each and every business process of the company will be treated as module in SAP. In SAP we
have functional, technical and business modules.
The people who are working in functional modules are called functional consultants and for
this no coding knowledge is required.
The people working in technical module like ABAP are called technical consultants or
developers and for this coding knowledge is required.

List of Functional modules


FI – Finance
CO - Controlling
MM - Materials Management
QM - Quality Management
SD - Sales and distribution
PP - Production planning
PM - Plant maintenance
PS - Project Systems
LE - Logistics Execution
WM - Warehouse Management
HCM - Human Capital Management

From technical side we have ABAP - Advanced business application programming and BASIS
module, SAP security ETC.

Roles n responsibilities of individual module consultants


•FI - Finance: This module helps in company’s all financial activities such as AP - accounts
payable, AR - Accounts receivables and taxation.
•CO- Controlling: This module helps in capturing cash flows of the company.
•MM- Materials Management: This module supports all purchasing activities of materials and
services, inventory activities and invoice verifications before making payment.
•QM - Quality Management: This module helps in quality check (QC) of company’s materials.
•SD - Sales and distribution: This module helps in all sales activities and delivery materials to
customers.
•PP - Production planning: This module helps in all manufacturing activities of company’s
materials.
•PM- Plant maintenance: This module supports all maintenance activities of the company.

DHANUSH 3
MM: Notes 1 – INTRODUCTION TO SAP
•PS - Project system: mainly this module will be used in EPC projects - Engineering works
procurement constructions. This module captures project budgets.
•WM - Warehouse management: This module helps in storing company’s materials physically.
•HCM - Human capital management: This module helps in all HR activities.
•ABAP - This module consultants will write new program to design new data in SAP. This
module consultants are called developers.

DHANUSH 4

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