What are SAP Modules?
SAP stands for “Systems, Applications, and Products in Data Processing,” and it is the fourth-largest software company in the world. SAP software provides end-to-end solutions for financials, manufacturing, logistics, distribution, etc. Each business process solution is referred to as a module in SAP.
SAP offers the various modules based on the business functions. These modules are categorized into Functional, Technical, and Industry-Specific modules.
SAP modules are the backbone of ERP for the industries like Manufacturing, Healthcare, Retail, Logistics, Financial Sectors, etc.
Why SAP Modules are Important?
The implementation of SAP for any organization depends upon its existing business process. Based on their business process, you need to choose what are the SAP modules that need to be implemented to streamline the operations.
Each SAP module is integrated with other modules and it ensures single data available across departments.
Core ERP SAP Modules
The core ERP SAP modules are divided into two types of modules such as functional modules and technical modules.
The important core ERP SAP modules used by organizations are
- SAP FI (Financial Accounting)
- SAP CO (Controlling)
- SAP MM (Materials Management)
- SAP SD (Sales & Distribution),
- SAP HR (Human Resources Management),
- SAP PP (Production Planning)
- SAP QM (Quality Management)
- SAP PS (Project systems)
- SAP PM (Plant Maintenance)
- SAP LE (Logistics Execution)
SAP Functional Modules Overview
SAP FI (Finance Accounting)
SAP Financial Accounting is one of the important core modules of SAP. SAP FI module is mainly responsible for recording financial transactions and the generation of financial statements for external reporting purposes.
The following are important sub-modules of Financial Accounting
- General Ledger(GL)
- Accounts Payable(AP)
- Accounts Receivable(AR)
- Bank and Cash Management
- Budgeting and Monitoring
- Withholding Tax (TDS)
- Asset Accounting(AA)
- Funds Management(FM)
- Treasury Management(TM)
SAP CO (Controlling):
SAP CO stands for Controlling. It is responsible for managing and reporting the costs. The SAP Controlling module is mainly used for internal reporting purposes.
The important sub-modules of control are as follows
- Product Costing(CO-PC)
- Periodic Allocations
- Profitability Analysis(CO-PA)
- Cost Center Accounting(CCA)
- Profit Center Accounting(PCA)
SAP SD (Sales and Distribution):
SAP SD module is responsible for managing order to cash cycle including pricing, shipping, delivery, and billing.
The important components of SAP SD module are as follows:
- Sales Order Processing and Monitoring
- Shipping
- Bill / Invoice Generation
- Credit Management
- Bill of Material
- Pricing and Discounts
- Statutory Requirements
SAP HR/ HCM:
- Organizational Management
- Personnel Administration
- Recruitment Time Management
- Management Personnel Cost
- Planning Budget
- Payroll Benefits Compensation
- Management Personnel
- Development Training & Event Management
- Travel Management
SAP PP (Production Planning)
- Production Planning
- Production Order Processing
- Demand Management (DM)
- Materials Requirements Planning (MRP)
- Shop Floor Control
- Capacity Requirements Planning (CRP)
- Information System
SAP MM (Materials Management)
- Purchasing
- Inventory Management
- Inventory Valuation
- Vendor Evaluation and Rating
- Invoice Verification
- Statutory Requirements
SAP QM (Quality Management)
- Incoming Inspection
- Process Inspection
- Final/Delivery Inspections
- Quality Reports / Certificates
- Quality Notifications
SAP PM (Plant Maintenance)
- Maintenance Planning
- Breakdown Maintenance
- Preventive Maintenance
- Predictive Maintenance
SAP PS (Project Systems)
- Project Planning
- Project Monitoring
- Project Costing
- Milestone based Billing
- Handling of WBS Elements
Industry-Specific SAP Modules
SAP provides solutions for niche industries. Here are the top industry-specific SAP modules:
- SAP IS-Retail
- SAP Is-Utilities
- SAP IS-Oil & Gas
- SAP for Healthcare
- SAP for Automotive
- SAP Fashion Management
- SAP IS-Banking
- SAP IS-Aerospace & Defence.
SAP is-Retail:
SAP IS-Retail is mainly used for retailers and e-commerce businesses. The key components of SAP is-retail includes
- Merchandise planning
- Promotions
- Point of sale integration.
SAP IS-Utlities
SAP IS-Utilities is used by the energy and utilities organization. The important components of utilities are:
- Billing
- Customer Service Automation
- Meter Data Management
SAP for Healthcare
SAP for healthcare solutions is used for the hospitals and healthcare industries. The features of the healthcare module are:
- Patient Management
- Electronic Health Record(EHR)
- Customer Service Automation
SAP For Automotive
SAP Automotive solution is used by automakers and suppliers. The features of automotive module are:
- Vehicle lifecycle management
- Supplier collaboration
- Recall Management.
SAP Fashion Management
SAP fashion management is an integration solution used for fashion companies. The important features of fashion management are
- Master data management for articles
- Planning and procurement
- ATP.
SAP Technical Modules
- SAP Netweaver
- SAP ABAP – Advanced Business Application Programming
- IS (Information Systems) Management
- XI – Exchange Infrastructure
- SAP Basis
- SAP BI – Business Intelligence
- SAP BTP (Business Technology Platform)
- SAP MDG (Master Data Governance)
- SAP Security
- SAP PI/PO
SAP S/4HANA Cloud Modules
SAP S/4HANA is a next-generation of ERP and SAP is continuously evolving the new features with S/4HANA. The important modules of SAP S4 HANA are
- SAP S/4Hana Finance
- SAP S/4Hana Logistics
- SAP S/4HANA Procurement & Sourcing
- SAP S/4HANA Sales
- SAP SAC (SAP Analytics Cloud)
- SAP SuccessFactors
>>Download various SAP Modules Overview training materials in PDF.