Modules In SAP: The Complete Guide

The guide helps for Freshers and who were job

shift from other software to sap, this is basic
about sap for what why where how to use sap
full detail.
« What is SAP, why it is used?
SAP makes data processing and flow of information easier for every aspect of
your company. SAP modules are available for multiple business functions, such
as supply chain management and finance. In other words, SAP clients are
diverse, ranging from local businesses to multinational corporations.

« Is SAP Hana a module?

SAP HANA (High-performance Analytic Appliance) is a multi-model database
that stores data in memory. With a single system, you can conduct sophisticated
analytics in addition to fast transactions thanks to the column-oriented in-
memory database architecture.

« What is ERP?
SAP was the company that first introduced digital enterprise resource planning
(ERP). It is a platform designed for organizations of all sizes and strengths from
various industries.

ERP systems typically perform the following functions:

 Modular business processes

 Capital planning, budgeting, and execution

 « What are the 25 modules in SAP?

Here’s a list of all the SAP modules:

 Financial Accounting (FI)

 Controlling (CO)

 Enterprise Controlling (EC)

 Sales and Distribution (SD)

 Customer Relationship Management (CRM)

 Customer Service (CS)

 C/4HANA

 Materials Management (MM)

 Supplier Relationship Management (SRM)

 Ariba

 Production Planning (PP)

 Human Resources (HR)

 SuccessFactors

 Supply Chain Management (SCM)

 Warehouse Management (WM)

 Transportation Management (TM)

 Extended Warehouse Management (EWM)

 Project System (PS)

 Plant Maintenance (PM)

 Enterprise Asset Management (EAM)

 Business Intelligence (BI)

 Analytics Cloud

 Product Lifecycle Management (PLM)

 Environment, Health, and Safety (EHS)

« Which SAP module is in main?

Here are a few popular options and their benefits:

 Finance (FI, CO) provides a solid foundation for financial analysis and

accounting tasks.

 Sales & Distribution (SD) is essential for managing customer orders and

deliveries.

 Human Resources (HR) is responsible for payroll, benefits, and recruitment.

 Supply Chain Management (SCM) improves inventory management and

logistics.

 SAP S/4HANA is the latest ERP system that provides real-time data analysis

and improved performance.

 What are SAP Modules?
Modules in SAP are business management software used to gather, organize,
handle, and analyse data from various functional domains. These software
modules are stand-alone entities that deal with particular business operations or
procedures.

SAP modules cover numerous business functions, such as customer relationship

management, finance, logistics, and human resources. Every module is designed
to full-fill a particular function and falls into one of two categories: functional
or technical.

 Business functions like order processing, business intelligence, and human

resources are accessed through functional modules.

 You can manage your environment, development, and updates using technical

modules on the SAP back end.

1. Functional Modules
 Financial Accounting (FI)

 Financial Supply Chain Management (FSCM)

 Controlling (CO)

 Customer Relationship Management (CRM)

 Materials Management (MM)

 Business Intelligence (BI)

 Sales and Distribution (SD)

 Logistics Execution (LE)

 Production Planning (PP)

 Quality Management (QM)

 Plant Maintenance (PM)

 Project System (PS)

 Human Capital Management (HCM)/Human Resources (HR)

2. Technical Modules
 Basis

 Security

 Workflow

 Solution Manager

 NetWeaver

 Exchange Infrastructure (SAP XI)

 Advanced Business Application Programming (SAP ABAP)

 Enterprise Portal

Advantages of SAP Implementation

To ensure smooth operations and profitability, organizations must coordinate
multiple functions.

However, achieving synergy among an organization’s various departments is

challenging. As the processes in multiple parts become more complex, the
overall enterprise’s efficiency may suffer. This may result in reduced efficacy.

As a result, your company must maintain a centralized node where information

can flow to and from all other parts of the organization. An ERP module does
this. Each department achieves peak performance by sharing information and
coordinating work with others.

Employing SAP and its modules has many advantages for businesses. By
integrating various departments, it permits streamlined procedures, lowers
manual labour, and gets rid of data silos.
 Organizations can increase customer satisfaction, boost productivity, and make
data-driven decisions with real-time visibility into operations.

The software automates workflows, can be deployed in the cloud or on-premise,

and includes mobile-based applications, making it versatile and accessible from
anywhere at any time.

SAP’s features offer a comprehensive view of operations, making it easier to

assess issues. An organization’s overall revenue and profits grow due to these
optimized operations.

1.Functional Modules Explained

 Financial Accounting (FI)

With the SAP Financial Accounting module, you can track the flow of financial
data throughout the company, analyse the market and the organization’s
finances, and integrate all the data you need to make better financial decisions.

A few crucial business tasks associated with SAP FI are as follows:

 General ledger and asset accounting

 Receivables management and the development of customer master data

 Master data governance and management for customers and vendors

 Vendor master data creation and accounts payable

 Global settings for financial accounting

 Tax structure and establishment of the House of Banks

 Management of financial statements and tax accounting

 Linking SAP MM and SD modules together

 Creation of organizational structure

  Controlling (CO)
All organizational processes can be coordinated, tracked, and optimized with
the help of the SAP CO module. It manages an organization’s business
operations. This module facilitates the planning of business strategies and the
analysis of actual figures with planned data.

CO manages two types of elements: revenue elements and cost elements.

A few crucial business operations carried out by SAP CO are as follows:

 Accounting for Cost Centre

 Accounting for Cost Elements

 Activity-based-accounting

 Internal orders

 Product cost control

 Profitability analysis

 Accounting for Profit Centre

 Production Planning (PP)

SAP PP handles production planning and management. Businesses can use the
production planning module to plan the production, sale, and distribution of
their products, using master data, system configuration, and transactions.

A few of the main tasks in the SAP PP module are as follows:

 Material requirement planning (MRP)

 Demand management

 Production orders

 Planning and determining capacity levels

 Bill of materials

 Managing material master data

 Product routing

 Management of work centre

 Sales and Distribution (SD)

Organizations use SAP SD to support the sales and distribution of products and
services, from inquiry to order to delivery. SAP SD can monitor an
organization’s wide range of activities, including product inquiries, quotations
(pre-sales activities), order placement, pricing, delivery scheduling (sales
activity), picking, packing, goods issuing, product shipment to customers,
product delivery, and billing.

A few essential tasks in SAP SD are as follows:

 Establishing an organizational structure

 Assigning organizational units

 Defining pricing components

 Creating sales documents, billing types, and tax-related components

 Configuring and creating customer master data records

 Logistic Execution (LE)

The SAP LE module manages all aspects of the supply chain management
process, like vendors, warehouses, production and distribution, and customers.
The Logistics Execution module facilitates more effective delivery creation,
picking and packing, and goods issue posting throughout the entire
organization, which helps businesses better manage their merchandising
operations.

The two sub-modules of logistical execution are warehouse management and

the shipment of goods (the purchase-to-procurement process). These two
modules are linked to sales, distribution, material management, production, and
planning.
  Financial Supply Chain Management (FSCM)
This module assists in managing the financial aspects of the supply chain, such
as credit management, collections management, and dispute resolution. It
facilitates better decision-making and enhanced cash flow management by
providing real-time information on credit risk, cash flow, and other financial
metrics.

Using the FSCM module, businesses can enhance the flow of financial and
business data between business partners and within internal teams. This
improves efficiency throughout the economic value chain and provides real-
time insights into crucial financial data and workflows.

A few essential tasks in SAP FSCM are as follows:

 Credit management

 In-house cash

 Conflict resolution

 Risk control and treasury management

 Biller Direct

 Collections management

 Liquidity and cash management

 Project System (PS)

SAP PS is a core module for project and portfolio management. It helps you
oversee the entire project life cycle, from planning and execution to project
completion and structuring. It supports an organization’s project planning,
execution, and monitoring and includes several sub-modules, including project
execution, costing, and planning.

With PS, you can keep a close eye on every facet of your project. This covers
the project’s technical and business aspects.

You set up your project from the following perspectives:

 Structured, utilizing a work breakdown structure (WBS).

 Processes involving individual activities (work packages)

 Human Capital Management (HCM)/ HR

SAP HCM is a crucial SAP module. It is also referred to as SAP Human
Resource Management System (SAP HRMS) or SAP Human Resource (HR).
With SAP HR software, record-keeping tasks can be automated. The SAP HCM
module manages data and processes in the HR department, such as hiring,
payroll management, learning solutions, and performance management.

The HR department can use it as an excellent basis for payroll and

administration documents.

The SAP HR module facilitates the human resources department’s management

of all employee facets, including hiring, onboarding, professional development,
and offboarding.

The HR system has excellent integration points (where data is passed to and
from without human intervention) with nearly all of the other SAP modules. In
addition, the HR sub-modules are tightly integrated.

 Customer Relationship Management (CRM)

CRM handles all customer-related processes from start to finish. CRM is
intended to centralize data relating to all customers associated with an
organization. It is concerned with customer processes from beginning to end.

The following are some of the main tasks associated with SAP CRM:

 Keeping up sales and services

 Creating marketing plans based on consumer data research and market needs.

 Enhancing services and sales

 Fortifying connections with clients

 Continuing to put its clients first

 Analysing information to discover more about customers

 Materials Management (MM)

The SAP MM module is critical to the manufacturer’s supply chain. This
module manages procurement and inventory functions essential for supply
chain management and operational efficiency. It assists businesses with
inventory, warehouse, and material management.

This module tracks everything from the initial quote to the pricing comparison,
purchase orders, receipts for goods, billing and invoice validation, and the
actual material issue. Additionally, it offers pre-built integrations with other
modules, such as logistics, warehouse management, and supply chain
management, to increase overall efficiency and connectivity.

Here are some of the main tasks that fall under SAP MM:

 Management of vendor orders and purchases

 Inventory control

 Planning for material requirements

 Transportation of goods and warehouse administration

 Business Intelligence (BI)

SAP BI has a user-facing component in which data analysts and business users
interact with data using various technologies. This involves taking raw data,
processing it so that it can be stored, and granting users access via an end-user
interface.

For thorough data handling and analysis, SAP supports both on-premise and
cloud deployments with its database services (SAP HANA, Data Warehousing),
data management tools (Enterprise Information Management, Cybersecurity
Governance), and analytics solutions (SAP Analytics Cloud, Collaborative
Enterprise Planning, Predictive Analytics, SAP Business Intelligence).

A few essential tasks associated with SAP BI are as follows:

 On-premise deployment

 Real-time business intelligence

 Improved user autonomy

 Simplified, personalized, and dynamic information consumption

 Production Planning (PP)

SAP PP is an important SAP module. It monitors and records the manufacturing
process flows, including planned and actual costs. Additionally, goods move
from raw materials to semi-finished goods. It integrates with SD, MM, QM,
FICO, and PM, among other SAP modules.

Activities related to SAP PP include capacity planning, bill of materials,

routings, and material requirements planning. Everything in SAP PP is based on
master data, stored and manipulated in centralized master data tables. Work
centre BOM, routing, and materials master are examples of master data types.
In SAP ECC, the master data is utilized to generate transactional data, such as
production orders in PP, sales orders in SD, and purchase orders in MM.

 Quality Management (QM)

QM is a feature of SAP S/4HANA that helps companies set up and manage
quality control procedures. It is intended to create long-lasting quality control
programs, facilitate ongoing process improvement, and prevent errors. The
organization may experience reduced operating expenses, increased customer
satisfaction, and compliance with manufacturing quality regulations.

QM is already integrated with various SAP application components, including

Human Resources, Finance, Control, Sales and Distribution, Plant Maintenance,
Materials Management, and Production Planning. This integration allows QM
tasks to be embedded in tasks within these integrated application components.

A few of the main tasks in SAP QM are as follows:

 Setting QM relevance for the segmentation characteristics

 Incorporating segmentation into inspection plans

 Enabling segmentation in inspection lots

 Determining the right inspection plan considering the segmentation value

 Enhancing the segmentation value in the quality certificate and quality

inspection report

 Enhancing inspection lot selection transactions with generic article and

segmentation.

 Using segmentation in batch when making usage decision

 Enhancing the SAP GUI transactions in QM with segmentation

 Assigning inspection type based on the combination of material and segment

value

 Plant Maintenance (PM)

SAP PM is industrial software that can represent all important tasks related to
technical system maintenance, including upkeep, real repair, and inspection.

Some ECC components that SAP PM integrates with are Human Resources
(HR), Production Planning (PP), Sales and Distribution (SD), Finance (FI),
Controlling (CO), and Materials Management (MM).

The following are a few tasks related to SAP PM:

 Inspection determines the actual state of the machinery or systems

 Preventive maintenance helps keep the system or equipment operating at

optimal levels.

 Repair is to bring back the equipment or systems

2.Technical Modules Explained

 Basis
SAP Basis is the technical building block that allows SAP applications to
function. It entails middleware programs and tools that facilitate the portability
and interoperability of the SAP modules across systems and databases.

SAP Basis is the system administration platform for SAP environments running
SAP R/3 through SAP S/4HANA. Its goal is to guarantee the consistent and
seamless operation of all SAP systems within the environment.

SAP Basis manages the following tasks:

 Ensuring every user has proper access rights and can rapidly utilize the features

they require

 Setting up and customizing every SAP application and system

 Data backup and restoration

 Optimizing efficiency and resolving issues

 Overseeing batch tasks

 Setting up the transportation management system (TMS) for SAP

 Managing transportation

 Managing and running background jobs.

 Setting up printers and other devices

 Setting up operation modes.

  Security
SAP security consists of three major areas of cyber security: access control, data
security, and application security. To be secure, an SAP landscape must adhere
to strict access controls, and system data should be protected as much as
possible. Finally, robust security measures should be in place for the application
itself.

Applying the best security practices and tools to the SAP landscape is necessary
to make all three security concepts work together. For instance, if the company
grants permission for network access to mobile external users through Multi-
Factor Authentication (MFA), that control should be extended to anyone else
who wants to access the SAP systems.

Then, SAP should enforce limitations on data access by Role through a data
security policy. To guarantee that no unauthorized person can gain
administrative access to the SAP back end, patch management and stringent
Privileged Access Management (PAM) controls are used to secure the
application.

 Workflow
SAP Workflow is a software solution that automates and optimizes business
processes within an organization. It allows users to create, carry out, and
monitor workflows that specify the order in which certain jobs, actions, and
approvals must be completed to complete a business process. These workflows
can be extended to several departments, roles, and platforms, guaranteeing
efficient communication and data exchange.

Users can create or establish business processes in the SAP R/3 system.
Through the workflow, users can effectively manage business operations and
ensure compliance.
  Solution Manager
SAP Solution Manager 7.2 covers the entire application lifecycle of your IT
solution, whether it is on-premise, hybrid, or cloud-based.

The highly integrated system supports the implementation, maintenance, and

adoption of all enterprise solutions, including non-SAP software. It also
promotes business innovation, business continuity, and effective operations.

The following are some tasks associated with SAP Solution Manager:

 Application operations

 Business process monitoring

 Business process operations

 Change control management

 Custom code management

 IT service management

 Job scheduling management

 Landscape management

 Maintenance planner

 Process management

 Test suite

 NetWeaver
With SAP NetWeaver, businesses can create unified SAP environments by
integrating data, business processes, elements, and more from multiple sources.
Many SAP application landscapes rely on SAP NetWeaver as their
technological backbone.

SAP NetWeaver is an open application server platform mostly used by SAP

developers, administrators, and consultants. The SAP landscape is complex,
with numerous business applications, such as Finance, Supply Chain
Management (SCM), Customer Relationship Management (CRM), and Human
Capital Management (HCM), all of which must communicate with one another.

Additionally, these apps must communicate with other apps and systems not
part of the SAP business suite. Users can control the expenses and complexity
of integrating these applications, systems, and services in their SAP
environments with SAP NetWeaver.

 Exchange Infrastructure (SAP XI)

SAP XI stands for SAP Exchange Infrastructure, a platform and technology for
integration. By default, XI connects apps using an extended SOAP protocol. In
addition to offering communication services like message routing and format
mapping, XI has a cross-component business process management (CCBPM)
component. This component enables the modelling and execution of business
processes on XI.

SAP XI allows you to run cross-system processes and link systems

implemented in various programming languages (such as Java, ABAP, and
others) and from different vendors (SAP and non-SAP).

It has an open architecture, uses open standards, especially those from the Java
and XML environments, and provides the services necessary in a complex and
diverse system environment.

 Advanced Business Application Programming (SAP ABAP)

ABAP is SAP’s proprietary fourth-generation programming language. It was
explicitly designed to handle large amounts of data in SAP business
applications.

Businesses leveraging SAP ERP and SAP S/4HANA can tailor their systems by
utilizing ABAP in SAP NetWeaver to suit their requirements. Since ABAP is a
multi-paradigm programming language, programmers can use procedural,
object-oriented, and other concepts.

Another name for ABAP is ABAP/4. The “4” in ABAP/4 represents “Fourth
Generation Language,” or 4GL.
  Enterprise Portal
SAP Enterprise Portal enables you to create visually appealing corporate portals
that use the responsive SAP Fiori launchpad experience.

The portal serves as the Web front-end part of SAP NetWeaver, the all-
inclusive application and integration platform that makes it easier to align
people, data, and business processes across technological and organizational
barriers. It is perfect for large user bases that need to access various services and
applications across multiple system landscapes, particularly ABAP—and Java-
based.

The portal provides a single point of access to databases, services, enterprise

apps, information repositories, SAP, and non-SAP information sources inside
and outside your company.

Its tools allow you to share, work with, manage, and analyse its information
resources. The portal’s role-based content and personalization tools let users—
from partners and suppliers to employees and customers—focus solely on
information vital to their everyday decision-making processes.

Final Words
SAP is a leader in technology innovation, providing businesses worldwide with
unmatched efficiency and integration. SAP redefines how businesses operate
and thrive in the digital age, from its foundational ERP systems to cutting-edge
analytics and AI capabilities.

Choosing SAP means embracing a future-ready platform that drives growth,

improves decision-making, and ensures long-term success in today’s dynamic
business landscape.

No matter how much experience you have, you can fully utilize the enormous
potential of this industry-leading software if you follow the instructions in this
article. SAP’s ability to seamlessly integrate across departments and
functionalities paves the way for a brilliant and interconnected business
ecosystem.

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