SAP refers to "System Applications Product" and the modules in SAP are Financials, Human Resources, Customer Relationship Management, Supplier Relationship Management, Product Lifecycle Management, Supply Chain Management and Business Intelligence. The various modules are designed to be standalone and it can be integrated as per the needs of the organization.
The environment includes the database, the purpose and the user interface for the end users. There are three types of cost objects - cost centers, internal order and WBS Element. The cost centers are budgeted as per the financial year and the operating account of a unit can be defined as cost centre whereas the WBS element is the fund account which has the feature of non sponsored fund account and it can be used to track expenses for a particular activity. This is not based on the financial year - therefore it does not end as the year end. The start and end of this account is based on a project or activity.
FI: The module is called Financial Accounting, and the user makes entries for the book of record in the module. It includes the General Ledger, Tax, Book Close, Accounts Payable, Accounts Receivables, Asset Management, Consolidation and Special ledgers. The G/L accounts are also defined as a form of cost elements and these are defined as expense on revenue. In the FI module the G/L modules are integrated.
CO: Controlling is the SAP module which allows the user to manage the internal costs which includes the cost elements, cost centers, profit centers, internal order, activity based costing and product costing.
PS: PS refers to the module called Project System, in which, the projects are managed and it includes the large and small projects. User can record data in forms such as Make to order, plant shut downs and Third party billing.
HR: The Human Resource module includes forms to keep a record of Employment History, Payroll, Career Management, Training, Appraisals and Succession Planning.
PM: Plant Maintenance is the module where the maintenance of equipments and machines such as oil rig, aircraft is included, and stores data related to the labor, material, downtime etc.
MM: Material Management module manages the supply chain, and it includes Requisitions, Purchase orders, Good receipt, Accounts Payable, Inventory Management, Bill of Material, Raw Material masters, finished goods entries etc.
QM: Quality Management module is designed to provide high quality goods and it includes planning, executing, inspection and certifications.
PP: Production Planning is the module where the production processes can be planned and it includes the Capacity Planning, Master Production Scheduling, Shop Floor Management and Material Requirements Planning.
SD: SD is the Sales and Distribution module where the entries for order and delivery related functionalities are made. The modules in SD are RFQ, Pricing, Sales Orders, Picking, Shipping and Packing.
BW: The Business Warehouse functions include the data extractions from source, transformation and storage of data and reporting.
ABAP: It is the Advanced Businesses Application programming which is the structured programming language and it is used for custom development and reporting.