List of Top SAP Modules for 2023
List of Top SAP Modules for 2023 [SAP FI, SAP CO, SAP SD, SAP HCM & More]
SAP Certification Exams are based on Enterprise Resource Planning solutions, usually SAP software solutions. Enterprise Resource Planning (ERP) which allows companies to manage databases for various processes from one integrated system. ERP systems were developed initially for inventory control; however, over the years; Different software is developed for different processes in a company for better data management and workflow. In today's world, there are many market leading providers of ERP systems, and SAP is one of the market and technology leaders in building business software towards structured work and data management in organizations. SAP AG was originally a German multinational software company that was involved in developing software for business management and improving customer relationships in companies.
Systems Analysis and Development Program (SAP) was founded in June 1972 and since then, many SAP ERP operational modules have emerged that were designed with a focus on a variety of different processes including SAP ERP sales and service, sales and distribution, customer relations, financial management, intelligence business, and more.
SAP Financial Accounting (FI)
The SAP FI module, as the term suggests, suggests an agreement in managing financial transactions within the company. This financial accounting module helps employees to manage the data involved in every financial and business transaction in an integrated system. This module works great for reporting requirements. The SAP FI module is very flexible and works well in all types of economic situations. Be it a smaller organization or a larger organization; SAP implementation helps in consolidating data for various business transactions and legal requirements. The Financial Accounting module helps one to get the real-time financial position of a company in the market. SAP FI combines with other SAP modules such as SAP SD, SAP MM, SAP PP, Payroll and others for better work results.
SAP Finance and Accounting Module Components
· SAP General Ledger: The main purpose of SAP general ledger accounting is to provide a system to manage all the external accounts of an organization. Recording of all business transactions of a company along with various other operational areas is managed by this SAP accounting module. It provides real-time assessment of the cost accounting area.
· SAP Accounts Payable and Receivable: While SAP accounts payable records all components and data for vendors, SAP accounts receivable records all components and data for customers. Balance sheets and account statements can be created using these modules.
· SAP Bank Accounting: This module is used to handle all bank accounting transactions. Starting from managing bank master data, managing cash balances to processing incoming and outgoing payments; Everything can be managed using this module.
· SAP Asset Accounting: This module is designed to manage the fixed assets of an organization. SAP financial system allows to manage and supervise fixed assets along with providing detailed information and reporting data.
· SAP Funds Management: This SAP accounting module supports all tasks related to creating and managing budgets. Calculating income, expenses, and funds is on the list of SAP fund management tasks.
· SAP Travel Management: This SAP module takes into account all transactions related to corporate travel arranged within and by the organization. Various travel approvals, bookings, settlements and expenses are recorded and managed using the SAP travel management module.
SAP Controlling (CO)
SAP CO module is another important SAP module offered to companies. The control module supports the work processes of planning, reporting and monitoring business operations. It involves methods for viewing and managing costs required for financial reporting. The controller module allows one to plan, track, perform and report on costs. Controlling includes managing and configuring master data that includes cost elements, cost centers, profit centers, internal orders, and functional areas, and so on.
Finance and Controlling (FICO)
FICO is a SAP module used for external and internal financial reporting, which is intended to record all financial transactions posted by an organization and generate correct reports at the close of the training period. It is further divided into several sub-modules as follows.
General ledger accounting
It deals with managing all the general ledger accounts used for reporting. A set of ledger accounts used by a company or a group of companies is called a chart of accounts in SAP. These accounts are used to prepare financial reports.
Accounts receivables
This SAP FICO module deals with managing customer accounts and capturing all transactions with customers. A separate account is maintained for each customer, and once a transaction is posted in the customer account, it is updated in the reconciliation account in the general ledger. Transactions in this module include posting invoices, credit memos, advances, and invoice payments.
Accounts payables
This SAP module manages vendor accounts and captures all transactions with vendors. Separate accounts are maintained for vendors. When transactions are posted in customer accounts, the reconciliation account in the general ledger is updated with details in real-time. Transactions in this module include posting invoices, credit memos, invoice payments, automatic payment programs, and creating vendor reports.
Asset accounting
All transactions related to assets for an entity are managed through this SAP FICO module. The reconciliation account in the general ledger is adjusted each time a transaction is posted in an asset account. Transactions in this module include asset acquisition, retirement, sale, transfer, revaluation, and depreciation.
Bank accounting
It deals with capturing all transactions made with the bank. All transactions recorded on bank statements are reconciled through bank reconciliation.
Activities Involved in SAP SD
SAP Sales and Distribution (SD) is a functional SAP module in the SAP ERP Central Component (ECC) that helps companies and organizations store and manage data related to customers and products. Organizations use this data to manage sales orders, shipping, billing, and invoicing goods and services sold.
Activities in SAP SD involve activities related to the sales process, which can be divided into pre-sales activities, sales, and post-sales activities.
Pre-sales activities
This includes pre-sales and support documents. The goal is to update salespeople with all the details necessary to negotiate and close a potential sale. Pre-sales documents help determine sales probability and recognize sales-related activities. Pre-sales support involves tracking customers through contact sales visits, phone calls, letters, and letters.
Sales
It deals with selling products to customers at pre-negotiated prices.
Post-sales activities
It involves post-sales support, which is provided to customers after the purchase of a product by a seller or company. This includes product warranties, managing relationships, and other support activities delivered to customers.
Logistic Execution (LE)
Logistics Execution (LE) is one of the core activities of a company which is used to map all its logistics processes. It deals with the complete supply chain process consisting of vendors, warehouses, product production and distribution, and customers. It consists of the following components:
· An inbound process that involves collecting goods from vendors and storing them in a warehouse.
· The outbound process involves removing the deity from storage and shipping it to the end customer.
· Warehouse processes involve posting changes, stock transfers, and WM inventory.
· The transportation process is related to calculating incoming and outgoing shipments, and settling shipping costs.
Supplier Relationship
Management (SRM)
Supplier relationship management is a systematic approach to analyzing the supply of goods and materials by vendors to determine each supplier's contribution to success and develop strategies to improve their performance. SRM helps evaluate vendor performance to determine which are most valuable to the business and its success. It also helps managers develop better relationships with suppliers based on their interests.
Customer Relationship
Management (CRM)
Customer Relationship Management is a combination of practices, technologies, and strategies that organizations use to manage and evaluate customer interactions and data during their dealings with customers.
The goal of CRM is to improve customer service relationships and maintain customer retention with the goal of increasing sales growth. CRM systems collect customer details from different channels or touchpoints between the customer and the company, analyze them, and use that information to increase sales.
CRM software consolidates customer information and documents into a single database at the most basic level to provide easy access to business information. Over time, many different functions such as recording customer interactions via phone or email and automating workflow processes have been added to CRM systems to make them more useful.
Human Resource (HR)
Human resources is the department of a company or business that is concerned with detecting, recruiting, and instructing job applicants and managing employee welfare programs. HR plays a key role in enabling companies to face the highly evolving business environment and increasing demand for efficient employees in the present era.
Key people-related responsibilities of the HR team that add value to the company include finding efficient employees, linking employee key performance indicators to compensation, developing competencies that improve individual performance and overall company performance, and ensuring the implementation and integration of technology through increased staffing, training , and reduce communication gaps with employees.
SAP Sales and Distribution (SD)
The SAP SD module deals in managing all transactions starting from inquiries, proposals, quotations, prices, and much more. The sales and distribution module is very helpful in inventory control and management. The 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 specifically designed for production planning and management. This module also consists of master data, system configuration, and transactions to complete production planning procedures. The SAP PP module collaborates 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 the company.
SAP Materials Management (MM)
The SAP MM module as the term suggests manages the materials required, processed and produced in the company. Various types of procurement processes are managed with this system. Some of the popular sub-components in the SAP MM module are vendor master data, consumption-based planning, purchasing, inventory management, invoice verification, and so on.
SAP Quality Management (QM)
The SAP QM module helps in managing quality in production throughout all processes in an organization. This quality management module helps organizations to accelerate their business by adopting a structured and functional way to manage quality in different processes. SAP QM modules collaborate in procurement and sales, production, planning, inspection, notification, control, audit management, and so on.
SAP Human Capital Management (HCM)
The SAP HCM module improves work processes and data management in a company's HR department. Starting from hiring someone to evaluating someone's performance, managing promotions, compensation, handling payroll, and other related activities of HR are processed using this module. The task of managing the details and task flow of the most important resources, namely, human resources 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 companies.