SAP ERP Modules overview

SAP ERP Modules overview – this is small introduction to the SAP ERP modules.

The core part of SAP systems is the EPR – Enterprise Resource Planning system. This is the SAP system where all business activities are recorded with transactions. The data is stored in a database, which consists from tables.

The different transactions in SAP ERP are organized in modules. A SAP module contains transactions and also master data by business area.  Master data is the core data of the different business objects like material, customer or vendor. The master data includes their basic characteristics, while transactional data includes the information about the different actions with these business objects. For example purchase, sell, delivery or other material movement.

The main SAP ERP modules are following:

• SAP FI – Financial accounting – this is the module for the accounting in SAP. It corresponds to the legal requirements for accounting and the result is the reports required by the legal authorities for every company. It includes General Ledger, Accounts Receivable and Payable, Asset Accounting, Bank Accounting and others.
• SAP CO – Controlling or management accounting – This module takes the same financial information from the financial accounting and present it in different ways for management purposes. For example it can present the costs for a product, the costs by customer or other combinations. It includes Cost center accounting, profit center accounting, internal orders, product costing and profitability analyses. All financial transactions related to profit and loss accounts are updated in controlling. They create also records in controlling module.
• SAP HR/HCM – Human resources or also called human capital management is one of the key modules in SAP. It allows the management of all processes connected with the human resources. It includes Organization management and enterprise structure, Time management, Personnel Administration, Payroll, Recruitment, Training and Event Management and Travel management.
• SAP PP – Production planning – This module includes planning processes, such as capacity planning, material planning, execution of production order, bill of material and goods movement.
• SAP MM – Material Management is part of Logistics area and supports all aspects of material management (planning, control etc). It deals with the Procurement Process, Master Data (Material & Vendor Master), Account Determination & Valuation of Material, Inventory Management, Invoice Verification, Material Requirement Planning etc.
• SAP SD – Sales and distribution module is also part of the Logistics as MM and includes shipping, billing, selling and transportation of products and services of a company.

I hope this small SAP ERP Modules overview was useful. Check also my simple explanation of ‘What is SAP?” question: here