3 Concepts for SAP Beginners

3 Concepts for SAP Beginners

What is SAP?

SAP stands for:

  1. Systems
  2. Applications and
  3. Products in processing

SAP began on a path that might not only transform the planet of data technology, but also forever alter the way companies do business. Now 44 years and approximately 300,000 customers stronger, quite ever, SAP is fueled by the pioneering spirit that inspired its founders to repeatedly transform the IT industry. SAP is listed on several exchanges, including the Frankfurt stock market and NYSE, under the symbol “SAP”.

SAP ERP consists of several important modules supported different business functions of the corporate. We shall start with the Functional Modules.

Functional Modules

Financial Accounting

SAP FI Financials module is one among the foremost important modules behind SAP. it's designed for meeting all the accounting and financial needs of a corporation . Within this module Financial Managers also as other Managers within your business can review the financial position of the corporate in real time.

The real-time functionality of the SAP modules allows for better deciding and strategic planning. The FI (Financial Accounting) Module integrates with other SAP modules like MM (Materials Management), PP (Production Planning), SD (Sales and Distribution), PM (Plant Maintenance) and PS (Project Systems).

FI module is made by several sub-components, but not limited to, also referred to as sub-modules. Few of them are mentioned below:

  1. Accounts Receivables
  2. Accounts Payable
  3. Asset Accounting
  4. Bank Accounting
  5. Ledger /New General Ledger


SAP CO (Controlling) Module provides supporting information to Management for accurate planning supported costing reports. Basically, it's an important tool for management to hold out organizational decisions.

The CO (Controlling) Module has following:

  1. Cost Center Accounting
  2. Internal Orders
  3. Product Cost Controlling
  4. Profitability Analysis
  5. Profit Center Accounting

Material Management

It covers business functions like procurement or purchasing and inventory management. The procurement is often for materials or services. It are often either local or imports (procuring from abroad) or both. Materials management (MM) is integrated with other modules like SD (Sales & Distribution), PP (Product Planning), FI (Financials), CO (Controlling), PM (Plant Maintenance) and QM (Quality Management). Materials Management is employed for channelizing procurement process and managing inventory at store/warehouse level.

MM (Materials Management) Module has following,

  1. Purchasing / Procurement management
  2. Request for Quotation Management
  3. Handling Purchase requisitions generated from different modules like PP, PM.
  4. Vendor Evaluation
  5. Goods Receipt
  6. Invoice Verification
  7. Inventory Management

Technical Modules

Advanced Business Application Programming (ABAP) - It is the programming language of SAP

Net weaver – Business Application Software Integrated Solutions (Basis)

 SAP ERP software installation

  1. Taking timely backups
  2. Disaster recovery
  3. Security of the SAP servers
  4. User creation
  5. Managing roles and authorizations of the users which incorporate authorization management to regulate which process owner is permitted which specific set of business transactions.

SAP security

 SAP security may be a module that keeps certain sorts of data under lock and key while allowing access to others, working to make sure your SAP system is secure from both external and internal threats. A large amount of confidential or sensitive data is stored in the AP system.

Users on your network using an SAP system must have access to everything they have to try to their jobs; at an equivalent time, they ought to not have access to big data, like financial records or tip . If an employee accidentally accesses data that ought to be restricted, they might cause problems by deleting or moving something.

A good worse scenario is that if someone accesses sensitive data deliberately, whether to wreck your business, leak data or commit fraud. Moreover, for compliance reasons, in some industries (like those involving health or financial data), certain sorts of information must be carefully protected.