SAP R/3 system runs on one common database, so that the information or data that is entered in the SAP system by one department of an organization is immediately available to all departments of an organization. SAP HCM module is responsible for managing resources, identify needs and necessity of man power, employee satisfaction, payroll management, etc. SAP Human Capital Management (SAP HCM) SAP HCM (Human Capital Management) is also known as Human Resource Management (HRM) module. SAP MM module can be integrated with other modules of financial accounting, controlling, sales & distribution, plant maintenance, warehouse management, etc. MM module deals with all the activities of procurement, material storage, consumption based planning and inventory. SAP Material Management: SAP MM (Material Management) is a core component of supply chain. SAP SD module can be integrated with other modules of Material management, Financial accounting, Production planning, etc. SD handles all the activities of Sales and Distribution of an organization. SAP Sales and Distribution (SAP SD): SAP SD (Sales & distribution) is one of the important application area of logistics. SAP CO helps in planning, reporting, managing and monitoring business operations of an organization.
SAP Controlling (SAP CO): SAP CO (Controlling) module is a part of SAP FICO (Financial Accounting & Controlling). It records all the transactions on day to day basis and generates financial reports as per requirements. SAP Financial Accounting (SAP FI): SAP FI (Financial Accounting) module is a backbone of an organization, as it manages financials and controlling activities of an organization. Now let’s discuss each SAP module in detail one by one.
Currently, they are a multinational software corporation with a revenue of $16 billion and the largest market share in the market of enterprise software.Each module in SAP is integrated with each other to share the common information. Nevertheless, this naming strategy turned our to be lucky for SAP. Almost all of the names that their software system had were comprised of the first letters of other words. The full form of ECC is ERP Central Component.Īs you can see the people who founded SAP and then worked at management positions in this company really liked acronyms. They first renamed it to SAP ERP and then to SAP ECC. SAP does not call its ERP system R/3 anymore.
The letter R means Real-time and the real-time capabilities of SAP system were the primary competitive advantage that it had over systems from IBM back in 1970-1980. Before R/3 they also had R/2 and R/1, so the last digit denotes version of the software system. Until recent time, the full name of SAP’s ERP system was SAP R/3. Now that you know what is SAP full form, we can also tell you about other acronyms that are closely related to SAP. SAP = Systeme, Anwendungen und Produkte in der Datenverarbeitung ( The English translation from German reads as “Systems, Applications and Products in Data Processing”) Later, SAP changed its name to the current form and now SAP stands for the following name (again in German ? ): SAP = Systemanalyse und Programmentwicklung (The English translation from German reads as “System Analysis and Program Development”)