SAP Modules – SAP FI, SAP CO, SAP SD, SAP HCM and more

Overview of SAP Modules

The SAP Certification exam is based on Enterprise Resource Planning solutions, typically SAP software solutions. Enterprise Resource Planning (ERP) that allows an enterprise to manage databases for different processes from a single unified system. ERP system was developed initially for inventory control; however, over the years; different software was developed for different processes in an enterprise for better data management and workflow. In today’s world, there are many leading market providers of ERP system, and SAP is one of the market and technology leaders in building business software towards structured work and data management in organizations. SAP AG is originally German multinational software which deals in software development for business management and improved customer relations in enterprises.

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Systems Analysis and Program Development (SAP) was founded on June 1972 and since then, many SAP ERP operations modules have emerged that are designed focusing on various different processes including SAP ERP sales and service, sales and distribution, customer relationship, financial management, business intelligence and more. Let’s get an overview of a few of the SAP development modules in this post.

  • SAP Financial Accounting (FI)
  • SAP Controlling (CO)
  • SAP Sales and Distribution (SD)
  • SAP Production Planning (PP)
  • SAP Materials Management (MM)
  • SAP Quality Management (QM)
  • SAP Human Capital Management (HCM)

SAP Financial Accounting (FI)

SAP FI module as the term suggests deals in managing financial transactions within enterprises. This financial accounting module helps employees to manage data involved in any financial and business transactions in a unified system. This module functions very well for reporting requirements. The SAP FI module is very flexible and functions well in any type of economic situation. Be it a smaller organization or a larger organization; SAP implementation helps in consolidating data for diverse business transactions and legal requirements. Financial Accounting module helps one to get the real-time financial position of an enterprise in the market. SAP FI incorporates with other SAP modules such as SAP SD, SAP MM, SAP PP, Payroll, and more for better work results.

SAP Controlling (CO)

SAP CO module is another important SAP modules offered to enterprises. The controlling module supports the process works of planning, reporting, and monitoring operations of businesses. It involves methods to view and organize costs that are required for financial reporting. The controlling module enables one to plan, track, perform, and report about costs. Controlling includes managing and configuring master data that covers cost elements, cost centers, profit centers, internal orders, and functional area, and so on.

SAP Sales and Distribution (SD)

SAP SD modules deal in managing all transactions ranging from inquiries, proposals, quotations, pricing, and more. The sales and distribution module helps greatly in inventory control and management. SAP SD module consists of master data, system configuration, and transactions.  Some of the sub-components of the SAP SD module are master data, sales support, sales, shipping and transportation, billing, credit management, sales information system, and so on.

SAP Production Planning (PP)

SAP PP module is another important module that includes software designed specifically for production planning and management. This module also consists of master data, system configuration, and transactions in order to accomplish the plan procedure for production. SAP PP module collaborate with master data, sales, and operations planning, distribution resource planning, material requirements planning, Kanban, product cost planning, and so on while working towards production management in enterprises.

SAP Materials Management (MM)

SAP MM module as the term suggests manages materials required, processed, and produced in enterprises. Different types of procurement processes are managed with this system. Some of the popular sub-components in SAP MM module are vendor master data, consumption-based planning, purchasing, inventory management, invoice verification, and so on.

SAP Quality Management (QM)

SAP QM module helps in the management of quality in productions across processes in an organization. This quality management module helps an organization to accelerate their business by adopting a structured and functional way of managing quality in different processes. SAP QM module collaborates in procurement and sales, production, planning, inspection, notification, control, audit management, and so on.

SAP Human Capital Management (HCM)

SAP HCM module enhances the work process and data management within the HR department of enterprises. Right from hiring a person to evaluating one’s performance, managing promotions, compensations, handling payroll, and other related activities of an HR is processed using this module. The task of managing the details and task flow of the most important resource, i.e., human resource is managed using this SAP ERP HCM module.

These are some of the most important SAP deployment modules that develop software for efficient work in enterprises.

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About the Author

Eshna VermaEshna Verma

Eshna writes on PMP, PRINCE2, ITIL, ITSM, & Ethical Hacking. She has done her Masters in Journalism and Mass Communication and is a Gold Medalist in the same. A voracious reader, she has penned several articles in leading national newspapers like TOI, HT, and The Telegraph. She loves travelling and photography.

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