- [Instructor] SAP ERP is broken up into different modules
that all interact with each other
to form a comprehensive solution.
Let's look at a very high level overview.
There are two types of modules in SAP,
technical modules and functional modules.
Technical modules deal with SAP infrastructure.
Work done in technical modules
make sure the system runs correctly.
Developing or maintaining functional applications
is completed in technical modules.
Because of this, most SAP end users
never come in direct contact with any technical modules.
We'll spend most of our time focusing on functional modules.
Functional modules support transactions
that align with business processes.
These modules have very strong integration.
This means they send information
between each other very efficiently,
and this is one of the biggest strengths of SAP.
There are many functional modules in SAP.
Each organization can choose which modules they need
to implement to suit their specific business.
Let's talk through
some of the most common functional modules.
The first group we'll look at are accounting modules.
SAP Financial Accounting includes the general ledger,
accounts payable, and accounts receivable.
Next is SAP Controlling.
This is where profit center
and cost center accounting are done.
A third common accounting module is SAP Project System.
This module houses project planning, project monitoring,
and project costing functionality.
The next group are logistics modules.
SAP Sales and Distribution has sales order processing
and shipping.
The SAP Materials Management module includes purchasing,
inventory management, and valuation.
Next, SAP Production Planning
includes production order processing
and materials requirement planning.
SAP Quality Management is where incoming,
in process, and final inspection are done,
and SAP Plant Maintenance includes breakdown,
predictive, and preventive maintenance functions.
Finally, SAP Human Capital Management
in the human resources area
can capture the entire cycle of an employee at a company,
from new hire all the way to termination.
Besides the typical functional modules,
there are many industry specific modules available
in SAP as well.
Modules that are industry solutions start with I and S.
For example, the IS-A module
is built for the automotive industry
while IS-U supports the utilities industry.
Modules that are financial services related
are built for banks and insurance firms.
Two examples of financial services modules are FS-CM,
which deals with claims management,
and FS-ICM, which does incentive and commission management.
Because of its broad capabilities,
SAP has built modules
for almost every common business process.