What Is SAP?

SAP is a software company that offers ERP systems to companies across the globe. The term SAP stands for Systems, Applications and Products in Data Processing. Major companies such as Coca Cola, Nestle and Siemens operate their basic business functions through SAP, including finances, sales, stock and human resource management.

ERP systems integrate different aspects of business functions into one common system. Normally businesses handle their finance management, procurement, sales and stock data through different systems and different applications. ERP systems integrate these functions into one database where each function has access to the data. Companies use SAP for its efficiency and automation. In SAP sales orders create an update to the inventory data, generate delivery notes and create a finance entry. There is no need for separate spreadsheets or other manual input of data.

What Does SAP Do?

SAP runs the core activities of an enterprise in a unified system. Finance, sales, procurement, manufacturing, and human resources run in the same environment through SAP. Companies adopt SAP because it helps in replacing many spreadsheets and software systems in order to have everything under one. This means that there will be no redundant data entry, and there will be lesser errors in reports. Enterprise Resource Planning (ERP) is what SAP is based on, and it is the standard adopted by companies such as Siemens, Nestlé, and Coca-Cola. SAP links all the departments in such a way that a sales order in one module shows up automatically in inventory, finance, and logistics modules.

SAP course online delivers value through four core functions:

Centralized Data Management

It keeps all business records in one single database rather than distributing them among several different databases. All finance, human resources, sales, and inventory modules take their input from one single source so that the customer's order history, credit rating, and shipping address remains the same in every instance.

Business Process Integration

It integrates all the business functionalities so that each activity initiates changes in all the interconnected modules automatically. If a sales executive generates an order through the SD module, then SAP automatically updates the material management module (MM) about the inventory and the finance module (FI) regarding financial transactions.

Real-Time Reporting

Unlike other systems, which generate reports by using outdated data, SAP reports are generated based on current data. Managers have access to live sales, inventory, and cash flow when they log into their dashboards created based on the Fiori and ics Cloud tools. In addition, the traditional approach of generating batch reports at the end of the day or month has become obsolete due to the availability of real-time information.

Workflow Automation

Administrative tasks that were done manually by employees are now automated by using the SAP system. The workflow includes tasks such as approving invoices, creating purchase requests, making vendor payments, and assigning each task to the right person.

What Is SAP Used For?

Businesses use various SAP modules such as SAP FI, SAP HR (referred to as SAP HCM/SuccessFactors now), SAP SD, SAP MM, SAP PP, and SAP SCM in automating their workflows and improving the accuracy of reports to facilitate effective decision-making at all levels.

SAP is used for :

Finance

SAP FI controls the financial backbone of firms. The software helps to manage the general ledger, accounts payable, and accounts receivable in real time. Additionally, the tool provides financial statements in accordance with the rules of IFRS and GAAP.

Human Resources

SAP HCM and SAP SuccessFactors control the entire process of managing employees in a firm. The respective process includes the storage od employee data, payroll management and attendance records that are recorded in a single database. SAP is also used by the recruitment team for the advertising of vacancies and for the information of hired employees.

Sales

It controls the whole and complete process of order to cash. It automatically records as well as captures consumer orders, applies pricing instructions and generates automated invoices. SAP SD also works closely with warehouse teams to plan and manage the shipping process, ensuring that customer orders are packed, dispatched, and delivered to the correct location on time.

Procurement

This module is used to compare pricing of the supplier and to reduce delays that are caused by manual approvals. It also automates requisitions of purchasing, generates purchasing orders and manages vendor contracts. Businesses use this module to monitor inventory stock levels and trigger re-order alerts when inventory runs low.

Manufacturing

It helps manufacturers to avoid production bottlenecks by tracking material consumption on the shop floor and use this data to align output with the actual customer demand. Production Planning assists to organize the factories schedules, execution and production.

Supply Chain

The SAP SCM integrates procurement, production, and distribution in a single logistical stream. Demand is predicted based on past sales and market indicators, followed by managing inventory placement within the warehouse and order fulfillment. Reduced delivery disruptions.

Customer Service

SAP CRM records all customer contacts, all tickets, calls, complaints, in a single report. The service representative handling the case will have immediate access to the complete customer history, solve the issue faster and even detect any emerging problem with the product.

Key Features of SAP

SAP is used by organizations to unify finance, supply chain and HR data into a single one connected system. It provides deep automation, processing real time data and enterprise grade security into a single platform. Businesses ranging from mid size companies to global enterprises think SAP as a suitable ERP solution because of its cloud capabilities and scalability.

Below are the core features that define SAP's value :

• Immediate transaction processing is done via SAP HANA, which is SAP’s in-memory database system. Dashboards in real-time are available for the companies instead of old-fashioned reports.

• Repetitive activities like invoice matching, payroll, and procurement approval are automated by SAP. Thereby, there are no mistakes and workflow gets much faster.

• Companies build extensive reports on sales, inventory, and performance by using SAP Analytics Cloud and SAP BW/4HANA. Decision makers receive correct information without transferring data into external applications.

• SAP lets businesses scale up with more users, more modules, and larger amounts of data and keep the same performance capacity. Businesses scale up without moving to another platform.

• Role-based access control, encryption, and regulations like GDPR and SOX are used by SAP. Business information is secure in all SAP modules.

• Businesses can use SAP S/4HANA Cloud to do all SAP functions online. Businesses work with SAP from any location without any SAP infrastructure in place.

Industries That Use SAP

The functioning of companies in almost all industries across the world runs on SAP. There are different SAP products that companies use such as SAP S/4HANA, SAP ERP, SAP SuccessFactors, and SAP Ariba to perform functions in finance, supply chain, human resources, and customer relationship management respectively. Manufacturing, retail, health care providers, banks, and even governmental organizations need SAP to optimize their processes and make better decisions.

The wide usage of SAP leads to skills being in high demand in any industry. Below is an overview of the benefits of this software for different industries.

Manufacturing

SAP MM (Material Management) and SAP PP (Production Planning) are utilized in industries for planning production schedules and inventory management. The software is able to incorporate information from the shop floor and financial systems such that managers can be aware of costs and productivity on a real-time basis.

Retail

For retail chain stores, SAP is used to connect point of sales systems with inventory and pricing systems. SAP Retail and SAP S/4HANA provide functionalities that allow for demand forecasting, so that organizations can forecast the need for their stocks and not have too much or too little in their storages.

Healthcare

Hospitals and other healthcare organizations use SAP for patient billing, claims processes, and medical supplies management. SAP solutions also assist healthcare facilities in maintaining compliance with regulatory standards because all records and audit trails become centralized.

Banking

Banks use SAP Banking applications for managing bank operations, including lending process, risk management, and reporting for regulatory purposes. Financial modules of SAP make it possible for banks to integrate data from various branches into one centralized system.

IT

IT companies use SAP for Project Systems (SAP PS) and for tracking resources usage, budgeting, and timelines in client projects. SAP also offers service delivery tracking functionality.

Telecommunications

The telecommunication industry makes use of SAP for high volume billing, SAP CRM, and tracking of assets in their networks. The telecoms use SAP for keeping track of millions of customers' transactions while ensuring that all the network assets are well documented.

Automotive

The automotive industry uses SAP for coordinating its extensive logistics involving many hundreds of components' suppliers. SAP is used for production scheduling and tracking the stock of dealers' networks.

Government

The public sector makes use of SAP for budgeting, purchasing, and public fund management. SAP ensures transparency and accountability in government organizations by tracking expenses against the budget.

Education

Education institutions make use of SAP for student management, including their admission and enrollment data. SAP is also used for managing university's finances and HR activities like staff payrolls.

Popular SAP Modules You Should Know

The following are the most popularly used SAP modules along with their functionalities :

SAP FICO

It includes Financial Accounting (FI) and Controlling (CO). FICO takes care of all general ledger accounting, accounts payable, accounts receivable, asset accounting, banking, cost center accounting, and profitability accounting. Businesses use SAP FICO for preparing correct financial statements, internal costing, and complying with regulatory requirements and audits.

SAP MM

MM refers to Materials Management. It handles procurement and inventory management within the supply chain. The key functionalities of SAP MM include purchase requisition, purchase order, vendor evaluation, goods receipt, invoice verification, and stock checking.

SAP SD

SD (Sales and Distribution) is responsible for the entire lifecycle of sales from order to cash. This includes sales order management, pricing, credit management, billing, and delivery. SAP SD is used along with SAP MM for availability of stocks and FICO for proper accounting and invoicing.

SAP PP

Production Planning facilitates production processes right from planning till execution of manufacturing processes. MRP (material requirements planning), BOM (bill of material), scheduling, capacity planning and shop floor management are some main tasks of this module. SAP PP works with MM for checking the availability of raw material and QM for quality check during the production process.

SAP EWM

EWM (Extended Warehouse Management) is a solution that gives sophisticated control over warehouse processes in addition to basic inventory management processes. This includes processes related to inbound and outbound, storage bin management, wave management, cross-docking, and real-time visibility of inventories. Large organizations with complicated warehouses adopt SAP EWM to increase efficiency in their processes.

SAP SUCCESS FACTOR

SAP SuccessFactors is an HCM solution based on SAP Business Technology Platform. It involves talent acquisition, onboarding, performance and goals management, learning management, and succession planning. Organizations choose SuccessFactors to update their HR process in the cloud environment.

Why Learn SAP with Ezylern?

With the help of pre-recorded lessons and lectures at Ezylern students can access our SAP course online anytime as per their own schedule, without being subjected to any time and place restrictions. SAP modules that are taught in the Ezylern SAP certification courses include SAP FICO, SAP MM, SAP SD, and SAP HANA. The curriculum offered by Ezylern is provided by SAP certified instructors who design all the classes keeping in mind the latest industry standards. Each learner gets a well recognized certificate after completing the course.

FAQ:

Q1 Do I need to have any technical knowledge to learn SAP?

Ans : No. You don't need to have any technical knowledge to begin your SAP training journey. Although some familiarity with business processes and accounting may be beneficial.

Q2 Is SAP difficult to learn?

Ans : It may appear extremely complex due to the various business processes involved. However, with sufficient guidance and practice it will be easy to at least build a basic foundation over it.

Q3 Which SAP module is suitable to start my SAP training with?

Ans : Choosing the right SAP module will depend on what career path you intend to follow. Finance specialists usually choose SAP FICO, supply chain specialists, SAP MM, sales specialists, SAP SD, HR specialists, SAP HCM and SuccessFactors.

Q4 Can I learn SAP online?

Ans : Learning SAP is very easy through online video training programs that enable you to study from any place at any time.

Q5 How much time will it take to learn SAP?

Ans : It depends on the module and on the individual as well. Regular learning and practice can help you acquire a good knowledge of SAP in a few months.