Everything you need to know about SAP

What is SAP?

SAP refers to Systems, Applications, and Products in Data Processing.SAP is a world-wide technology and market leading in client and server enterprise application software, providing solutions for companies of all sizes and industry sectors. Originally discovered in Germany, SAP is now found in over 130 countries across the globe.

What is SAP Business One?

SAP Business One is an affordable, integrated Enterprise resource management (ERP) solution designed to enable growing small to midsized enterprises (SMEs) and large enterprises with subsidiary operations to better manage their entire company. SAP Business One provides a simple solution that streamlines business processes, provides real-time information, and helps boost overall business performance.

What type of company is SAP Business One designed to support?

SAP Business One is designed specifically for small to midsized businesses that have outgrown their current packaged accounting software or spreadsheets and/or may need to replace multiple, non-integrated applications. Many of our customers first start their research knowing they have a specific business pain – such as redundant data entry, poor reporting or sales challenges due to lack of visibility into customer accounts and inventory. Through the discovery process, they see how SAP Business One can solve these challenges and more. SAP Business One is also a good fit for large enterprises using SAP and looking to quickly integrate their subsidiaries or rapidly grow into new geographic markets.

What core functional areas are supported by SAP Business One?

SAP Business One is a single, integrated solution that provides clear visibility into your entire business and complete
control over every aspect of your operations. It delivers what you need to manage your key business areas, including:

-Accounting and Finance
-Purchasing and Operations
– Inventory and distribution
– Sales and Customer Management

Read about the SAP FInancial Accounting module

What are some of the benefits of using SAP Business One?

SAP Business One is designed to meet the needs of SMEs and subsidiaries of large enterprises. Businesses that adopt SAP Business One very quickly see measurable benefits of using an integrated ERP application including:

  • Targeted business growth through streamlined operations.
  • Improved customer retention and satisfaction through quicker response times and instant access to customer information.
  • Operational efficiency achieved by eliminating redundant and manual data entry errors with integrated core functionality .
  • Closer relationships with key stakeholders including customers, vendors, and employees through better supply chain management .
  • Lower technology costs and speed time to value .

Does SAP Business One adapt to my business’ specific industry requirements?

Unlike niche business applications, SAP Business One offers the flexibility to meet your business’ unique process requirements and challenges, regardless of the industry your company services. With over 550 prepackaged, fully integrated industry-specific solutions, SAP Business One provides your business with the tools your business needs to succeed. From manufacturer of highly customizable paper products looking to gain greater control over your order-to-cash process to IT
Service provider looking to integrate all aspects of your business to better serve your customers, SAP Business One has a solution for your industry. Oil and Gas Medical Devices Food & Beverage Apparel Manufacturing Wholesale Distribution Automotive Common Industries Serviced: 7. What types of User Licenses are available in SAP Business One? Lumber and Building Materials Professional Services Retail High Tech Industrial Machinery and Components Consumer Products Engineering, Construction and Operations.

Can I transfer my existing business data into the SAP Business One application?

You need existing business data such as customers, vendors, items, and invoices in order to go live with SAP Business One. Data migration from your old system to SAP Business One can be imported from a text file, excel spreadsheet or manually. To ensure that the migration of data is done as easily as possible, SAP Business One has an add-on called the data transfer workbench (DTW). This tool allows you to import additional master data and transactional data through data extraction, data mapping, and data import – guaranteeing data consistency.


Related Links:

Click here to know SAP Human Resource module.

Click here to know about SAP material management module.

Click here to know about SAP Sales and Distribution module.


SAP Human Resource Module

SAP Human Capital Management (HCM) is also called SAP-HR. SAP HCM consists of important sub-modules such as Personnel Administration (PA), Organizational Management (OM), Time, Payroll which will be discussed in detail.

The objective of the Human Resources component is to enable companies to process employee-related data according to the needs of the company in an efficient structure. The Human Resources module uses a grouped data system called infotype.

Info-type reflects a quantity of connected data records; Types of information can be identified by a four-character numeric string and a complete list is included. You can record the infotype as a function of time to allow for retroactive evaluation of employee data. The infotype appears as an input screen for the user, where you can keep the infotype records. The infotype can be processed individually or in fast entry mode.


What are the main modules of SAP HR?
SAP Human Capital Management (HCM) contains all processes classified into three major scenarios:

Managing Workforce Processes

This includes the following processes:

  1. Employee Administration
  2. Staff Time Management and Evaluation
  3. Organizational management
  4. Benefits Management
  5. Payroll calculation
  6. Talent Management


This includes the following processes:

  1. Recruitment
  2. Career Management
  3. Succession Management
  4. Business Learning
  5. Employee Performance Management
  6. Compensation Management

Various sub-modules are:

Personnel Administration (PA):

PA is an important sub-module of SAP HCM that stores key employee data. PA also helps in HR processes like hire, fire, change in designation, travel etc. Infotype is the basic employee information unit in SAP HR. Lets Study it in detail.

Organizational Management:

Organizational management is a sub-module of SAP HCM that structures the organization at the enterprise, staff and organizational level. Simply put, it helps to define different business units, workstations, reporting structures, current and future hiring plans in SAP ERP.


The Time Management (TM) module stores information about employee attendance, absence, time evaluation plans


SAP Payroll module helps to calculate the salary and wages of permanent and temporary employees of an organization.


The conclusion is that SAP HCM takes care of the employees, their track record and their performance, which is assessed with the help of this module. This helps to improve the quality of the workforce.

SAP Material Management Module

The Materials Management module in SAP consists of several components and subcomponents. The most used are the master data, purchases and inventory. All of these components have their essential subcomponents in specific business processes, and all of these processes are executed using transactions. Transactions involve the processing of certain information to complement the requirements of the business process. For example, if you bought 10 pieces of buckets, you can perform a particular transaction code that will reflect those changes in SAP. Most business processes involve multiple SAP transactions to be accomplished and distributed across one or more modules.

Various sub-modules in SAP MM are

Data stored in SAP R/3 is categorized as

  1. Master Data:

The master data is used as the basis for any transaction. If you produce, transfer inventory, sell, buy, and make a physical inventory, whatever your activity, certain basic data must be retained.

Example of basic data

  1. Hardware Master Data
  2. Customer Master Data
  3. Supplier Master Data
  4. Basic price / conditions data
  5. Warehouse management data (capital storage data)

Those that we will concentrate in the MM module are the hardware master and the recording of purchase information.


  1. Purchasing

Purchasing is a component of SAP MM module, and its process can be roughly depicted in below diagram.

MRP (material resource planning) creates procurement proposal and later gets converted into Purchase Requisition. Next step is to assign a source to Purchase Requisition, and release of Purchase Requisition. The PR gets converted to Purchase Order, and upon goods receipt, an invoice receipt can be done to complete the purchasing process. Additionally, payment is processed (in FI module).

  1. Inventory Management

Inventory management is used to manage the inventory of the goods. It is based on several key processes like

  • Definition of movement types
  • Reservations
  • Goods issue
  • Goods receipt

There are a number of functions and transactions used in the Inventory management processes.

  1. Pricing Procedure

The pricing procedure in the MM module is a way of determining prices in purchase documents. It allows us to assign different types of calculation for different needs. The definition of a pricing procedure can be performed by creating an access sequence and assigning it to the condition types. The access sequence tells the system where to look for condition values.

Features of SAP MM

The features of SAP MM system are as follows:

SAP MM is one of the SAP modules that handles materials management and inventory management. The material management process ensures that there has never been a shortage of materials or gaps in the organization’s supply chain process. SAP MM accelerates the procurement and material management activities, making the company more fluid with complete time and profitability. It deals with the management of an organization’s material resources (products and services) in order to accelerate productivity, reduce costs and improve improvement, and at a similar time be versatile to account for Changes in everyday life. It deals with the procurement process, master data (vendor hardware and equipment), Account Determination and Equipment Assessment, Inventory Management, Invoice Verification, Material Requirements Planning, and more.

What is material master?

The material in SAP is a logical representation of certain goods or services that are an object of production, sale, purchase, inventory management, etc. It can be a car, a gasoline, a transportation service or a consulting service, for example.

All information for all materials on their potential use and characteristics in SAP are called hardware master. This is considered as the most important basic data in SAP (there is also customer master data, vendor master data, pricing base conditions / data, etc.) and all material processing Is influenced by the hardware master. This is why it is crucial to have a precise and well-maintained hardware master.

In order to be confident in your actions, you must understand the main views of materials and its implications on processes in other modules, business transactions and some useful information, such as tables that store material master data, Transactions for the maintenance of mass materials (to change certain characteristics for a large number of materials at a time).



The material management module helps you to take care of the inventories and data of the organization, as well as purchasing of the company.

SAP Human Capital Management

SAP HCM is one of the main modules of SAP which plays an important role in the creation of an organized management in companies. SAP HCM consultants are among the most requested professionals in the global market. It is advisable to have an overview of the basics of SAP, SAP Net Weaver and SAP solution manager before starting with the SAP HCM module. Applicants must meet certain eligibility criteria to be eligible for the Optional SAP HCM Exam. The eligibility criteria are determined according to the education policies of SAP AG and vary from one continent to another. In general, candidates must have a year or two of experience in the SAP HCM module before attempting the exam. Let’s look at the SAP Human Capital Management (HCM) module.

HCM is one of the most important processes in organizations across industries. The general idea about HR is only about recruitment. But HR is far more than just recruitment. In an organization, HR not only engages employees but separates employees based on a variety of factors such as department level, payment days, payment details, designations and more. In addition, other work such as promotions, employee engagement and team motivation are supported by HR. This work may seem very simple; However, solving these problems for the people of an entire organization is not at all an easy job. To streamline all these HR processes, SAP ERP operations are widely used. SAP HCM ERP is one of the most flexible software for HR processes widely used in all industries.

Advantages of SAP Implementation

There are many advantages of implementing SAP and SAP ERP operations are no exception. The SAP HCM training allows you to acquire better hands on the use of the SAP HCM module. SAP HCM allows us to organize a system and HR process structure in a workstation. Many tasks can be automated, reducing manual labor and increasing productivity. The SAP HCM configuration maximizes the recruitment process, as organizations can hire permanent workers, but also contractual, part-time and also daily bets. The implementation of the SAP HCM does not require the entire process to be overhauled. SAP HCM User is a flexible software and allows us to adjust the new SAP developments in the existing process. SAP has various models for different human resource management processes. For example: each employee has the name, employee ID, designation, etc., to be registered by the HR team of each organization. This data can be created and stored automatically using SAP HCM tools and methods. Similarly, data can be saved based on time management, payroll details and work schedules, and so on. There are different sub-models in SAP HCM for different processes.

SAP HCM Modules

  1. Organizational management: This process defines an organized way of operating different people under a common platform to achieve a predefined goal. It provides intelligent time and resource management on the workstation.
  2. Personal administration: This process defines the process by which the human resource of an organization is managed. Since the recruitment phase through pay, benefits, new employee orientation, performance evaluation and more, everything can be recorded and monitored as part of this process.
  3. Electronic recruitment: This process is an automated web-based recruitment process that helps HR professionals to recruit appropriate talent. It opens up innovative methods of recruitment processes within an organization.
  4. Time management: This process helps one in the processes of planning, recording and evaluating the performance of the employee for a certain period of time. The impact of the presence and absence of the employee in the organization is evaluated in this process. Also presence management, salary calculation, connection and disconnect report, etc., are included in this process.
  5. Payroll: This process as the term defines is based on the scale of compensation and compensations granted to employees. From salary to overtime, compensatory pay and the compensation program, everything is calculated in this process.
  6. ESS and MSS: Employee Self-Service helps employees to individually track different data of their mandate within an organization. On the other hand, Self-Service Management is a vital process for managers to create and maintain employee data.
  7. Reports: Finally, the reports enable the HR team to provide complete and up-to-date information for all its employees. The reporting tool also allows you to follow the hierarchical structure followed in an organization. These are the SAP HCM modules that allow the HR team to work effectively to manage employee profiles and data within an organization.


To conclude, HCM is a part of HRM which helps the organization to manage their workforce and also help it run smoothly.

SAP Sales and Distribution Module


SAP develops enterprise software for large and small businesses. There are 3 components to the SAP strategy.

  1. Applications
  2. Platforms
  3. Corporate Network

Applications are the commonly known ERP for which SAP is known, but it also refers to analysis, crm, hr, etc.

Platform refers to the database in memory called HANA. People can create applications on top of the HANA on-site and on the cloud. In hybrid scenarios, the HANA platform is also used to connect on pre-deployments with cloud applications. Business networks are the future of enterprise computing where buyers, suppliers, workers, large data and assets will be connected in real time. All it will take is a click of a button.

Sales and Distribution in SAP

SAP’s sales and distribution function is part of the logistics area. The module contains processes that help a company integrate with its customers.Sales & Distribution (SD) is one of the main and most used modules of SAP R / 3 products alongside the Financial (FI), Controlling (CO), Material Management (MM) and Production Planning (PP) modules.The Sales and Distribution module (SD) consists of different components, also called sub-modules.

The main areas covered by this module and the sub modules are:

  • Pre-sales activities, including Inquiry and Quotation creation.
  • Sales Order processing, including Sales Order (SO) creation.
  • Shipping, including Outbound Delivery document creation.
  • Billing, including Billing document and invoice creation.

Sales & Distribution (SD) is a highly integrated module with other SAP modules like FI, CO, MM, PP and more. This can make SD a complex module, so as part of this introduction we will also attempt to detail a normal sales process and how the activities fit and are covered by this module.These processes include:

  1. Providing quotations to customers:

The cost and the product details are provided through the quotations.

  1. Receiving sales order via phone, internet or EDI:

Ones the quotation is approved, sales order is received through phone, internet or through other network.

  1. Shipping the finished goods:

After getting the order, the finished goods are being transported at the final destination.

  1. Billing the customer for the goods received:

As soon as the good are received, billing process takes place and money is transferred.

Organizational structure

The organizational structure forms a business framework, in which companies are connected.Each company is structured in a certain way, and this structure must be represented in SAP, it is done with the help of the organizational structure.In sales and distribution, organizational structures are closely integrated with those of financial accounting and material management. The creation and assignment of organizational units takes place in the corporate customization structure.


As you can see the integration is one of the fundamental aspects of this module, so all SD Consultants need a very good understanding of the process.


The technological giant ERP of yesteryear are going the way of the dinosaur, and the future looks promising with a growing number of enterprise system changes. Here are seven major developments that you might be interested in:


1. ERP decisions getting tougher with growing choices.

With growing developments in the ERP and technological advancements, specialized ERP systems comes into play. Companies find it difficult to choose the appropriate and relevant ERP software for the same.  Other than integrating specialized products into their own business operations, some are building out their own cloud-based specialized solutions


2.Big Data is the new buzz

 In the era of growing amount of information in society on an every, Business intelligence can be utilized to better understand customer trends and how to optimize inventory and margins.

Having powerful, cloud-based platforms allows companies to use predictive analytics for business operations at molecular level.  For making real-time operational adjustments and better business analysis, ERP software comes as an effective platform.

By enhancing their core ERP systems and by adding cloud-based point solutions for services like human capital management, CRM [customer relationship management], expense management and other functions, companies are going the way of data enabled ERP solutions.


 3.Intelligent ERP systems

 In the era of increased concerns over security and smart management of works, ERP systems are going the intelligent way. Tighter security over IoT and shared data has been implemented by ERP. Intelligent ERP systems employs newer technologies such as artificial intelligence, machine learning   and predictive analysis


 4. ERP Adoption by small and midsize enterprises

ERP is no longer restricted and confined for large enterprises. With increased usability and previously mentioned cloud deployment options, small & medium companies are resorting to value enhancement through. With the advent of reduced costs to implement and deploy newer technologies, ERP is growing as a viable resource for companies of all sizes.


5.ERP and Social Media Integration

ERP vendors after observing the value and growth of social media have incorporated social media presence into their systems. ERP systems have been integrated with Sales, Customer Service and Marketing to gain insights about customers and to be in alignment with their needs, pains and requirements, allowing for purposeful marketing activities and increased brand loyalty.


Career opportunities in Enterprise Resource Management

In order to get on an enterprise resource planning (ERP) career path, you need skills in an ERP software package — not necessarily in a particular technology like networking or programming.

If you’re interested in pursuing a career in ERP, or if your company has just implemented an ERP system, you definitely want to seek out formal training.

Business enterprise training in ERP systems can be applied across a broad range of industries, offering diverse career opportunities and flexibility, and also applies to specific careers and titles, including:

  • Director of ERP Development
  • ERP Application Analyst
  • SAP Team Lead
  • Director of SAP Business Analysis
  • ERP Consultant
  • ERP Operations Director
  • ERP Trainer
  • ERP Training Manager
  • SAP Project Manager
  • Senior Director of ERP Implementation

ERP is applicable and in high-demand across a multitude industries. Here are just a few of the coordinated SAP solutions by industry your ERP specialization prepares you to work within:

· Aerospace and Defense

· Banking

· Consumer Products

· Oil and Gas

· Sports and Entertainment

· Retail

· Telecommunications

· Consumer Products

· High Tech

· Public Sector

Let’s explore a few of the potential career paths in the growing field of enterprise resource planning:

ERP Business Analyst

ERP business analysts must have a strong grasp of how potential ERP solutions converge with business needs and goals. Typically,these professionals assist with implementing and maintaining ERP systems, with responsibility for business systems analysis, workflow analysis and technical communications.

ERP Technical/Functional Analyst

An ERP technical/functional analyst may act as a liaison between technical support staff and end users, including through providing expertise and guidance relating to ERP systems.

ERP Technical Developer

ERP technical developers may have responsibility for recognizing and evaluating potential problems within ERP systems, and developing and implementing appropriate responses to resolve those issues. They may also be tasked with upgrading enterprise resource planning systems in conjunction with evolving business needs and organizational processes.

ERP course is designed for educating a professional who is already working or even aspiring for a good career in a field that makes use of ERP products for showing good performance.And for a competent ERP professional, securing good position and high remuneration is not a difficult thing to achieve.


SAP Financial Accounting Module


SAP stands for Systems, Applications, Products in data processing. SAP is the fourth largest enterprise software company in the world. It helps companies to solve obstacles and bring innovation and growth within them. SAP has a solution for finance accounting by providing services such as cloud solutions support FP&A, financial close processes, financial operations, treasury and risk management and many more…

The different software’s under financial accounting are:

  • Financial Planning and Analysis.
  • Accounting and Financial close.
  • Treasury and Risk Management.
  • Financial Operations.
  • Enterprise Risk and Compliance Management.

The financial accounting management consist of:

  • General Ledger Accounting
  • Accounts Receivable
  • Accounts Payable
  • Asset Accounting
  • Bank Accounting

And it is integrated with:

  • Controlling
  • Logistics
  • Project System and Investment Management.


  • Enable detailed accounting for multiple financial reporting standards, industries, currencies, and languages
  • Record and valuate business activities automatically from various applications and systems.
  • Provide an only source of truth for general ledger and sub-ledger applications and real-time integration to logistics with a full audit trail
  • Enable financial reporting and real-time, self-service analytics directly from highly granular operational data.
  • Drive efficiency, close books fast at less cost, and make smarter decisions faster
  • Ensure controls and auditability throughout the process



To conclude the topic financial accounting management is a tool that enables a company to prevent complexity and problems. They also help to track the progress of not just one but all the modules.

Enterprise Resource Planning

Master of Enterprise Resource Planning (ERP) Management

Enterprise Resource Planning (ERP) management  is a course that helps student learn about SAP ERP business processes across Financial Accounting, Human Resources, Materials Management, Sales & Distribution and helps to learn how to design, configure and perform business transactions related to these modules on SAP ERP system.

ERP uses integrated applications to manage important operations, to support all functions conducted in the organization such as Sales & Marketing, Finance & Accounting, Production, Procurement & Supply Chain.

Learn more about Enterprise Resource Planning: ERP-What is enterprise resource planning?



ERP-What Is Enterprise Resource Planning?

ERP is the IT backbone of any company and keeps the organisation running efficiently. Enterprise resource planning supports and integrates all functions conducted in an organization such as Sales & Marketing, Finance & Accounting, Production, Procurement & Supply Chain. This enables the departments of the organization to be connected. ERP application is used by both large businesses and small businesses.

ERP implementations are typically complex because they have to ensure that all the business processes are in harmony and that all the people interacting with the software are properly trained to handle the software. When successfully implemented the ERP system provides valuable data to senior management for better decision making in addition to making book keeping and tracking more efficient.


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