Sunday 10 June 2018

Introduction to SAP

The name SAP, being a German company is an acronym for “System, Anwendungen, and Produkte in Der Datenverarbeitung”. This is translated into English as “Systems, Applications, and Products in Data Processing”.The SAP system consists of complex integration of different modules or aplications, each representing part of the basic business process. SAP runs on a 4th generation programming language called Advanced Business Application Programming (ABAP).
SAP is an Enterprise Resource Planning product capable of integrating multiple business applications with each applicant is representing a specific business area. SAP processes a product that is capable of great depth in specific application area. The SAP Graphical user Interface SAP has also developed a user interface called the SAP graphical user interface (SAPGUI), which runs on Windows 3.1/95/98/NT, Motif, OS/2 presentation manager, and Macintosh. All SAPGUIs look identical,
regardless of the operating system on which they are running. This interface varies according to the version of SAP or SAPGUI you are running; however, the difference in appearance is minimal. The appearance of the screens and means is configurable. The Application Integration SAP is an “Enterprise Resource Planning” (ERP) software product capable of integrating multiple business
applications, with each application representing a specific business area. These applications update and process transactions in real time, thus allowing seemingly effortless integration and communication between areas of a business. Customizing Tools The cornerstone of SAP is its ability to be configured to meet the needs of your business. This is done by customizing or adapting the system to your business requirements, which is the process of mapping SAP to your
business process. Since SAP version 3, the “Reference Implementation Guide” (IMG) for R/3 customizing has been available. Until this version, customizing had to be done in the menu paths of the system with considerably more hassle. This IMG screen is the backbone for SAP and the entries placed in it determine how the system functions. We will be using this screen extensively for the purpose of configuring the SD module. R/3 Applications overview R/3 applications are categorized into 3 core functional areas: Logistics, Financial, and Human Resources of these three functional areas, there is a further subdivision into applications or modules. In addition to these
applications, SAP creates “Industry – Specific Solutions (ISs), which are, as the name defines, created tailor – made
for a specific industry. A few examples of these would be:
IS – OIL = The SAP industry solution for oil companies.
IS – T = The SAP industry solution for Telecommunications.
IS – B = The SAP industry solution for Banks.
IS – Retail = The SAP industry solution for Retail.
In addition to these industry solutions of which there are currently 19, standard cross – application
components are available, such as the SAP business workflow. The following is a brief description and overview of
a few of the major functional areas in SAP.
Financial Applications: This functional area contains the necessary information on profitability analysis, general
ledger accounts, and information on reporting using the “Executive Information system (EIS). This area contains
the following modules:
FI = Financial Accounting
CO = Controlling
EC = Enterprise Controlling
IM = Investment Management
TR = Treasury

Human Resources: This functional area includes support on salary and payroll administration as well as areas such
as work schedule models. This core functional area is very country – specific, due to country – related taxes,
employee benefits, and employment laws. This are contains the following modules:
PA = Personnel Administration
PD = Personnel Development
Logistics Applications: Logistics is the largest of the three functional areas. It includes, among others, the
following modules:
SD = Sales and Distribution
MM = Materials Management
WM = Warehouse Management
PP = Production Planning
LO = General Logistics
QM = Quality Management
The Sales and Distribution module (SD)
SD module integrates with every other R/3 application including FI, CO, MM, PP, and so on. The SD
module is made up of multiple components. Here is a brief list of these:
SD –MD = Master Data
SD – BF = Basic Functions subdivided into multiple components,
such as pricing, output, and so on.
SD – SLS = Sales
SD – SHP = Shipping
SD – TBA = Transportation
SD – FTT = Foreign Trade
SD – BIL = Billing
SD – CAS = Sales support
SD – EDI = Electronic Data Interchange
SD – IS = Information System

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