SAP has many modules to help with different business needs. These modules make business processes easier, support better decisions, and improve efficiency. This blog will explain the functional and technical SAP modules and why they are essential.
What are SAP Modules?
SAP modules are business management software used to collect, store, manage, or interpret data from any functional modules. These modules target individual processes and cover various components such as finance, logistics, human resources, customer relationship management, and more.
SAP Functional vs Technical Modules
Let’s read an easy way to understand the difference between SAP functional and technical modules.
Functional Modules
SAP functional modules are parts of the SAP system designed to handle specific business tasks. They help companies run smoothly and efficiently. Here are some critical SAP functional modules:
Human Capital Management (SAP HCM)
SAP HCM helps to manage employee information, payroll, and workforce planning. It makes HR processes easier and ensures they follow the rules. The SAP HCM module includes:
- Employee Administration
- Time Management
- Payroll
- Organizational Management
- Talent Management
- Training and Event Management
- Recruitment
Production Planning (SAP PP)
SAP PP is a core part of the SAP ERP system. It helps manufacturing companies with production planning, scheduling, and managing capacity. The SAP PP module includes:
- Sales and operations planning
- Long-term planning
- Data management
- Master production scheduling/material requirements planning
- Capacity requirements planning
- Shop floor control and information systems
- Bill of materials
- Capacity planning
- Supply chain planning
Material Management (SAP MM)
SAP MM, or SAP Materials Management, is one of the modules of SAP ERP that helps enhance procurement and inventory manageability. It assists in procuring and storing all material needed in a certain company or organization. Here are the SAP MM modules;
- Consumption-Based Planning
- Purchasing
- External Services Management
- Inventory Management
- Logistics Invoice Verification
Financial Supply Chain Management (SAP FSCM)
SAP Financial Supply Chain Management (FIN-FSCM) focuses on managing all financial and information flows within a company and between business partners. The SAP FSCM module includes:
- Treasury and Risk Management
- Biller Direct
- Cash and Liquidity Management
- Collections Management
- Credit Management
- Dispute Management
- In-House Cash
- Bank Communication Manager
Sales and Distribution (SAP SD)
SAP SD (Sales and Distribution) is a crucial ERP module that handles sales, order processing, and distribution. It helps manage customer orders, pricing, and delivery, making it vital for sales-driven companies. The SAP SD module includes:
- Master Data
- Basic Functions
- Sales
- Shipping
- Transportation
- Foreign Trade
- Billing
- Sales Support
Project System (SAP PS)
SAP PS (Project System) is a module in the SAP ERP system that helps manage projects from start to finish. It’s part of SAP’s Project and Portfolio Management solution. The SAP PS module includes:
- Project structuring
- Time scheduling
- Cost and Revenue Planning
- Budgeting
- Procurement of materials and services
- Confirmation of project activities
- Billing
- Project Progress Analysis
- Period End Closing
- Reporting
Technical Modules
SAP technical modules are sections of the SAP system which are involved in the shuttling, settling and building of the system. These modules enable the SAP consultants and all implementation service providers to manage and maintain the SAP environment as well as configure it depending on the requirements of a certain organization. Here are some key SAP technical modules:
SAP Basis
SAP Basis is under SAP, which is the technical layer of the SAP system. It comprises overseeing issues regarding the system’s administration, installation, configuration, and maintenance. Basis administrators are always on the lookout, ensuring the SAP system is up and running, well, and stable. They involve themselves in user authorization, security, database backup, and others.
SAP ABAP
It is one of the principal programming tools used in SAP systems and stands for Advanced Business Application Programming. The ABAP developers build up new reports, interfaces, enhancements and work flows in the SAP system and adapt applications of the SAP system according to the business needs.
SAP BI/BW (Business Intelligence/Business Warehouse)
SAP BI/BW stands for system, applications, and products in business intelligence and data warehousing. It brings data from various sources and integrates and organizes them into a data warehouse entity. SAP BI developers utilize SAP BI to build reports, dashboards, and various other types that focus on business intelligence for organizations.
SAP NetWeaver
SAP NetWeaver is a technology platform that supports SAP applications. It helps different SAP programs work together easily and includes tools for application servers, web servers, and portals.
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