SAP Modules Overview: Functional and Technical Modules

SAP offers a wide range of modules that cater to various business needs. SAP modules are designed to streamline business processes, improve decision-making, and enhance overall efficiency. In this blog, we'll provide an overview of the functional and technical SAP modules and discuss their importance in modern business environments.

What Are SAP Modules?

SAP modules are business management software used to collect, store, manage, and interpret data from many functional areas. These modules are individual software components that address specific business functions or processes.

SAP modules cover a broad spectrum of business operations, including finance, logistics, human resources, customer relationship management, and more. Each module is tailored to serve a specific purpose and can be categorized as functional and technical.

SAP Functional Modules

SAP functional modules are specialized components within the SAP system that focus on specific business processes or functional areas. These modules are designed to help organizations streamline their operations, improve efficiency, and effectively manage various aspects of their business.

Here are some of the key SAP functional modules:

1. Human Capital Management (SAP HCM): SAP HR, now known as SAP HCM (Human Capital Management), helps manage employee data, payroll, and workforce planning. It ensures that HR processes are automated and compliant with regulations. SAP HCM module includes:
   • Personnel Administration
   • Personnel Time Management
   • Payroll Accounting
   • Organizational Management
   • Personnel Development (Talent Management)
   • Training and Event Management
   • Recruitment

Read more about SAP HCM – click here

2. Production Planning (SAP PP): SAP PP (Production Planning) is a core module of the SAP ERP (Enterprise Resource Planning) system. For manufacturing companies, SAP PP aids in production planning, scheduling, and capacity management. SAP PP module includes:
   • Sales and operations planning
   • Long-term planning
   • Data management
   • Master production schedule/material requirements planning
   • Capacity requirements planning
   • Shop floor control and information systems
   • Bill of materials
   • Capacity planning
   • Supply chain planning
3. Material Management (SAP MM): SAP MM, or SAP Materials Management, is a module in the SAP ERP suite that streamlines procurement and inventory management processes. It helps organizations manage their material resources efficiently, from purchasing to inventory control. SAP PP module includes:
   • Consumption-Based Planning
   • Purchasing
   • External Services Management
   • Inventory Management
   • Logistics Invoice Verification
4. Financial Supply Chain Management (SAP FSCM): SAP Financial Supply Chain Management (FIN-FSCM) targets all financial and information flows within a company and between business partners. SAP FSCM module includes:
   • Treasury and Risk Management
   • Biller Direct
   • Cash and Liquidity Management
   • Collections Management
   • Credit Management
   • Dispute Management
   • In-House Cash
   • Bank Communication Manager
5. Sales and Distribution (SAP SD): SAP SD (Sales and Distribution) is a primary ERP module developed by SAP that focuses on sales, order processing, and distribution processes. It aids in managing customer orders, pricing, and delivery, making it an essential module for sales-driven organizations. SAP SD module includes:
   • Master Data
   • Basic Functions
   • Sales
   • Shipping
   • Transportation
   • Foreign Trade
   • Billing
   • Sales Support
6. Project System (SAP PS): SAP PS (Project System) is a module in the SAP ERP system that helps manage projects from planning to completion. It's part of SAP's Project and Portfolio Management solution. SAP SD module includes:
   • Project structuring
   • Time scheduling
   • Cost and Revenue Planning
   • Budgeting
   • Procurement of materials and services
   • Confirmation of project activities
   • Billing
   • Project Progress Analysis
   • Period End Closing
   • Reporting
7. Financial Accounting and Controlling (SAP FICO): SAP Financial Accounting (FI) and SAP Controlling (CO) manage an organization's financial transactions and accounting processes by providing tools for cost accounting, budgeting, and internal reporting. SAP FICO module includes:
   • Accounts Receivable
   • Accounts Payable
   • Asset Accounting
   • General Ledger Accounting
   • Bank Accounting
8. Plant Maintenance (SAP PM): This module focuses on asset and facility maintenance. It helps organizations minimize downtime, reduce maintenance costs, and improve equipment reliability. SAP PM module includes:
   • Preventive maintenance
   • Maintenance Order Management
   • Work Clearance Management
   • Plant Maintenance Projects
   • Takeover/Handover of Technical Objects
   • Standard Analyses
   • Capacity and Resource Planning
   • Configuration Control
9. Quality Management (SAP QM): Quality control and assurance are essential in various industries. SAP QM ensures that products meet quality standards through inspections, audits, and quality planning. SAP QM module includes:
   • Quality Planning
   • Quality Inspection
   • Quality Control
   • Quality Certificates
   • Quality Notifications
   • Test Equipment Management
10. SAP Logistic Execution (LE): The SAP Logistics Execution (LE) module links procurement and distribution. It also includes functions for planning and monitoring transportation. SAP LE module includes:
    • Shipment of goods
    • Warehouse

SAP Technical Modules

SAP technical modules are specialized components within the SAP system that focus on the technical aspects of SAP implementation, configuration, and development. These modules are designed to cater to the technical needs of organizations and are necessitated by SAP Consultants and Implementation Service Providers responsible for maintaining and customizing the SAP environment.

Here are some of the key SAP technical modules:

1. SAP Basis: SAP Basis is the technical foundation of the SAP system. It involves system administration, installation, configuration, and maintenance. Basis administrators are responsible for ensuring that the SAP system is available, stable, and performing optimally. They manage user access, security, system backups, and other technical aspects of the SAP landscape.
2. SAP ABAP (Advanced Business Application Programming): ABAP is the primary programming language for SAP. ABAP developers create custom reports, interfaces, enhancements, and workflows within the SAP system. They work on the technical customization of SAP applications to meet specific business requirements.
3. SAP BI/BW (Business Intelligence/Business Warehouse): SAP BI/BW is a data warehousing and business intelligence solution. It collects and transforms data from various sources, creating a unified data repository. BI developers use SAP BI tools to create reports, dashboards, and data visualizations, allowing businesses to make data-driven decisions.
4. SAP NetWeaver: SAP NetWeaver is a comprehensive technology platform that underlies the SAP landscape. It integrates various SAP applications and allows them to work together seamlessly. NetWeaver includes components for application servers, web application servers, and portal technologies.

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