SAP ERP software package consists of various function modules that include cross-functional business units that are fully integrated in a single system.
Some of the functional modules included in SAP ERP product are:
- Sales and Distribution(SD)
- Materials Management(MM)
- Finance and Controlling(FI/CO)
Out of the box, SAP ERP software can be configured to match the unique business processes for an organization using the available functional modules by performing system configuration.
SAP Programming language – ABAP
If a specific requirement cannot be met using the standard SAP configuration settings, then that requirement can be programmed by a developer using a programming language.
SAP uses a proprietary programming language called ABAP (Advanced Business Application Programming). ABAP is a high-level programming language similar to Java, C#, C++ that can be used for writing programs for reports, interfaces, conversions, enhancements, and forms within SAP software.
Functional Modules Brief Intro
SAP SD: SAP Sales and Distribution is one of the key components of SAP ERP system and is used to manage shipping, billing, selling and transportation of products and services in an organization.
SAP Sales and Distribution module is a part of SAP Logistics module that manages customer relationship starting from raising a quotation to sales order and billing of the product or service. This module is closely integrated with other modules like SAP Material Management and PP.
Key Components in SAP SD
The key components in SAP Sales and Distribution module are −
- Customer Master Data
- Sales Order Processing/Customer Service
Sales and Distribution module involves processing involving the order-to-cash (OTC) to include sales order entry, shipping/delivery of the product and performing invoice billing. Sales Order -> Delivery -> Invoicing
SAP MM: SAP Materials Management is a module in SAP ERP Central Component (ECC) that provides companies with materials, inventory and warehouse management capabilities. The primary goal of SAP MM is to make sure that materials are always kept in proper quantities and without shortages or gaps in the organization’s supply chain. It also helps supply chain professionals and other SAP users complete the purchasing of goods in a timely and cost-effective way and to be able to deal with day-to-day changes in these processes.
One of the critical modules in SAP ECC, SAP MM is part of SAP ECC’s logistics function and plays a vital role in a manufacturer’s supply chain. It integrates with other ECC components like Production Planning (PP), Sales and Distribution (SD), Plant Maintenance (PM), Quality Management (QM), Finance and Controlling (FICO) and Human Capital Management (HCM).
SAP FICO: SAP Finance and Controlling is a module used for financial reporting both externally and internally. The objective is to record all financial transactions that are posted by an entity and produce financial statements that are accurate at the end of the trading period. Full form or SAP FICO stands for FI (Financial Accounting) and CO (Controlling).