Every enterprise requires an automated system which can provide an integrated solution for every work procedure and the system helps the company to operate functions easily and uniformly across various operational units. Managing a large enterprise requires huge resources but if it is automated, the maintenance of an enterprise becomes easy.
SAP technology enables the company to deal with the business management procedures and make changes to organizational structure, which can be easily managed in case it is handled through software. The technology provides the enterprise with an easy way to handle all operations and work efficiently. The business can be handled regardless of the size and it can help the employees to deliver work on time, improve the sales and distribution feature and deliver reports for each activity of the company.
Some of the components in SAP ERP are
Kernel and Engine
Implementation of ERP is a time taking procedure and it can take more than a year to implement SAP in a midsized organization. It has a primary system which is called the kernel, and the engine of the R/3 systems takes care of the functionalities of the system.
The screen interpreter takes inputs and displays through the ABAP/4 interpreters.
SAP system has a data dictionary which is used for storing definitions and the flow control is handled in another component .The interface links to the outside environment and it allows communication between the system and the user.
There are mainly three modules in SAP ERP: Logistics, Accounting and Human Resource Management. It has separate modules and sub modules for each department, and the modules help the company to execute the business management processes. It enables customization and helps the software to do a number of complex business activities.
Logistics has sub modules such as sales and distribution, material management, plant maintenance, production planning and quality. Material is handled in the material management whereas production planning and production management are the modules related to the production process. Quality management is the sub module where the entries related to the quality processes are made. It ensures the quality of products, and the sale and purchase of products is done through the SD module.
The accounting module in SAP automates the process of accounting in the large organizations. The FI module helps an organization to handle accounting related forms such as profit and loss, balance sheet, and ledger and asset management. The controlling feature is done through the CO module and it not only controls the cost but also takes care of the various financial objectives of the enterprise. The module helps the company to make project plans and design future plans. All the financial transactions are registered in the books and the enterprise controlling module can be integrated to market information to get fast and immediate market reports.
The human resource management module of SAP is crucial for organizations as it stores the records related to working hours of each employee. The records of employee history and recruitments are made in HR. It also includes training, appraisals and tests within a company.