July 23, 2021

What is SAP

What is SAP


SAP is a German software corporation that makes enterprise software to manage business operations and customer relations. The original name for SAP was German: Systeme, Anwendungen, Produkte, German for “Systems Applications and Products.” The original SAP idea was to provide customers with the ability to interact with a common corporate database for a comprehensive range of applications. Gradually, the applications have been assembled and today many corporations, including IBM and Microsoft are using SAP products to run their own businesses.

SAP is the market leader in enterprise application software. The company’s best known products are its enterprise resource planning application (SAP ERP), SAP Business Objects software, and most recently, Sybase mobile products and in memory computing appliance SAP HANA.

SAP is the world’s largest business software company. SAP operates a network of 115 subsidiaries, and has R&D (Research & Development) facilities around the globe in Germany, India, the US, Canada, France, Brazil, Turkey, China, Hungary, Israel, Ireland and Bulgaria.

SAP focuses mainly on six industry sectors : process industries, discrete industries, consumer industries, service industries, financial services, and public services. It offers more than 25 industry solution portfolios for large enterprises and more than 550 micro-vertical solutions for midsize companies and small businesses.

SAP’s products focus on Enterprise Resource Planning (ERP). The company’s main product is SAP ERP. The current version is SAP ERP 6.0 and is part of the SAP Business Suite. Its previous name was R/3. SAP ERP is one of five enterprise applications in SAP’s Business Suite. The other four applications are 1. Customer Relationship Management (CRM). 2. Product Lifecycle Management (PLM). 3. Supply Chain Management (SCM) and 4. Supplier Relationship Management (SRM).

SAP are categorized into 3 core functional areas :


  • Sales and Distribution (SD)
  • Material Management (MM)
  • Warehouse Management (WM)
  • Production Planning (PP)
  • General Logistics (LO)
  • Quality Management (QM)


  • Financial Accounting (FI)
  • Controlling (CO)
  • Enterprise Controlling (EC)
  • Investment Management (IM)
  • Treasury (TR)

Human Resources

  • Personnel Administration (PA)
  • Personnel Development (PD)

A SAP system is divided into modules which maps business process of that particular department or business unit. Following is the list of modules available in SAP system.

  1. SAP FI Module- FI stands for Financial Accounting
  2. SAP CO Module- CO stands for Controlling
  3. SAP PS Module – and PS is Project Systems
  4. SAP HR Module – HR stands for Human Resources
  5. SAP PM Module – where Plant Maintenance is the PM
  6. SAP MM Module – MM is Materials Management
  7. SAP QM Module –  QM stands for Quality Management
  8. SAP PP Module – PP  is Production Planning
  9. SAP SD Module – SD is Sales and Distribution
  10. SAP BW Module – where BW stands for Business (Data) Warehouse
  11. SAP  EC Module – where EC stands for Enterprise Controlling
  12. SAP TR Module – where TR stands for Treasury
  13. SAP    IM Module – whre IM stands for Investment Management
  14. SAP   QM Module – where QM stands for Quality Management
  15. SAP – IS where stands for Industries specific solution IS

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