An Introduction To SAP ERP: Significant Modules In It

SAP Training


System Applications and Products in Data Processing (SAP) is a leading software tool for managing business processes and developing business-related solutions. It consists of a suite of modules that allows an organization to easily manage various business operations.

Significant Modules of SAP:

The SAP ERP consists of various modules useful for various different processes like sales and service, sales and distribution, customer relationship, financial management, business intelligence, and more. To further know about these modules, one can visit SAP Learning Hub. Given below are some of the most popular modules of SAP.

Financial Accounting (FI):

SAP FI is useful in managing financial transactions within enterprises. It deals with any kind of data involved in financial and business transactions in an organization. It facilitates reporting and is very flexible and functions in any type of economic situation. Almost all kinds of organizations, regardless of their size, use this module for consolidating data for business transactions and legal requirements. It helps in knowing the real-time financial position of an enterprise in the market.

Controlling (CO):

The SAP controlling module supports various business processes like planning, reporting, and monitoring operations of businesses. In addition, it helps a business in organizing costs necessary for financial reporting. The controlling module allows you to efficiently plan, track, perform, and report costs. Furthermore, it is also responsible for managing and configuring master data which covers cost elements, cost centers, profit centers, and internal orders. Etc.

Supplier Relationship Management (SRM):

Supplier relationship management is the systematic approach to analyzing the supply of goods and materials by vendors to determine each supplier’s contribution toward success and develop strategies to improve their performance. SRM helps evaluate the performance of vendors to determine which ones are most valuable to the business and its success. It also helps managers develop better relationships with the suppliers based on their importance.

Human Resources (HR):

Using this module helps the Human Resource department detect, recruit, and instruct job applicants. In addition, it helps companies in dealing with the highly-evolving business environment. It is useful in finding efficient employees, linking key performance indicators of the employees to compensation, and developing competencies that improve individual performance. SAP HR also helps in decreasing the communication gap between employees.

Sales and Distribution (SD):

This is a functional module of SAP ERP that helps organizations in storing and managing data related to customers and products. Furthermore, this data is useful in managing sales orders, shipping, billing, and producing invoices for the sold goods and services. This module consists of the activities related to the sales process such as sales activities, sales, and post-sales activities.

Production Planning (PP):

This module consists of software tools for production planning and management. In addition, it includes master data, system configuration, and transactions in order to accomplish the planned procedure for production. Furthermore, this module facilitates collaboration with master data, sales, and operations planning, distribution resource planning, material requirements planning, Kanban, and product cost planning. Etc.

Materials Management (MM):

The MM module is responsible for managing the number of materials required, processed, and produced in enterprises. In addition, it manages various kinds of procurement processes and offers multiple sub-components like vendor master data, consumption-based planning, purchasing, inventory management, and invoice verification. Etc. Many institutes in India provide SAP Training and one can enroll in them to start a career in it.

Quality Management (QM):

The SAP QM module manages the quality of productions in various processes in an organization. In addition, it helps a business accelerate its revenue by adopting a structured and functional way of managing quality. Furthermore, it ensures collaboration with procurement and sales, production, planning, inspection, notification, control, and audit management. Etc.


SAP is a leading tool for managing business processes and developing business-related solutions. In addition, it consists of various modules useful for different processes like sales and service, sales and distribution, customer relationships, financial management, business intelligence, and more. Its most common modules include Financial Accounting, Controlling, Human Resources, Sales & Distribution, Quality management, and a few more.

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