SAP R/3 is arranged into distinct functional modules, covering the typical functions in place in an organization. The most widely used modules are Financials and Controlling (FICO), Human Resources (HR), Materials Management (MM), Sales & Distribution (SD), and Production Planning (PP).
FI Financial Accounting
Designed for automated management and external reporting of general ledger, accounts receivable, accounts payable and other sub-ledger accounts with a user defined chart of accounts. As entries are made relating to sales production and payments journal entries are automatically posted. This connection means that the "books" are designed to reflect the real situation.
The FI module has 9 sub modules:
FI-GL
General Ledger Accounting
FI-LC
Consolidation
FI-AP
Accounts Payable
FI-AR
Accounts Receivable
FI-BL
Bank Accounting
FI-AA
Asset Accounting
FI-SL
Special Purpose Ledger
FI-FM
Funds Management
FI-CA
Contract Accounting
CO Controlling
Represents the company's flow of cost and revenue. It is a management instrument for organizational decisions. It too is automatically updated as events occur.
The CO module has following sub modules:
CO-OM
Overhead Costing (Cost Centers, Activity Based Costing, Internal Order Costing)
CO-PA
Profitability Analysis
CO-PC
Product Cost Controlling
AM Asset Management
Designed to manage and supervise individual aspects of fixed assets including purchase and sale of assets, depreciation and investment management.
PS Project System
Designed to support the planning, control and monitoring of long-term, highly complex projects with defined goals.
FS Insurance
An integral part of mySAP ERP, SAP for Insurance enables insurance companies to handle customer and market requirements and simultaneously control profitability and economic viability.
In Release 6.00, SAP for Insurance includes the following components:
FS-CD
Collections and disbursements
FS-CM
Claims management
FS-CS
Commissions management
FS-PM
Policy management
FS-RI
Reinsurance management
FS-PE
Payment Engine (Banking Payments Solution still in development)
IS Industry Solutions
Combines the SAP application modules and additional industry-specific functionality. Special techniques have been developed for industries such as banking, oil and gas, pharmaceuticals, etc.
As of Feb 2006, following Industry Specific Solutions are supported by SAP:
IS-A
Automotive
IS-ADEC
Aerospace and Defense
IS-AFS
Apparel and Footwear
IS-B
Banking
IS-BEV
Beverage
IS-CWM
Catch Weight Management (Variable Weight Items such as Meats and Cheeses)
IS-DFS
Defense and Security
IS-H
Hospital
IS-HER
Higher Education
IS-HSS
Hospitality Management
IS-HT
High tech
IS-M
Media
IS-MIN
Mining
IS-MP
Milling (or IS-MILL)
IS-OIL
Oil
IS-PS
Public Sector
IS-R
Retail
IS-REA
Recycling Admin
IS-SP
Service Provider
IS-T
Telecommunications
IS-U
Utilities
IS-U Supplier Switch
Utilities
IS-U EDM
Utilities
IS-U EDM Billing
Utilities
IS-U Agregated Billing
Utilities
IS-U /BW
Utilities
HR Human Resources
Complete integrated system for supporting the planning and control of personnel activities and HR module is sometimes equivalently referred to as HCM (Human Capital Management).
HR-OM
Organizational Management
HR-PA
Personnel Administration
HR-PB
Recruitment
HR-PD
Personnel Development
HR-PT
Time Management
HR-PY
Payroll Management
HR-TEM
Training and Event Management
HCM Human Capital Management
LE Logistics Execution
PLM Product Lifecycle Management
PM Plant Maintenance
Equipment servicing and rebuilding. These tasks affect the production plans.
MM Materials Management
Supports the procurement and inventory functions occurring in day-to-day business operations such as purchasing, inventory management, reorder point processing, etc.
QM Quality Management
A quality control and information system supporting quality planning, inspection, and control for manufacturing and procurement.
PP Production Planning
Used to plan and control the manufacturing activities of a company. This module includes; bills of material, routings, work centers, sales and operations planning, master production scheduling, material requirements planning, shop floor control, production orders, product costing, etc.
PP-PI
Production Planning Process Industries.With the component PP-PI (Production Planning for Process Industries), SAP provides an integrated planning tool for batch-oriented process manufacturing
It is primarily designed for the chemical, pharmaceutical, food and beverage industries as well as the batch-oriented electronics industry. PP-PI supports:
The integrated planning of production, waste disposal, and transport activities within a plant The integration of plants within the company: Vertically by means of an information flow, ranging from central business applications down to process control Horizontally by the coordination of planning between production plants, recycling and waste disposal facilities, and production laboratories.
SD Sales and Distribution
Helps to optimize all the tasks and activities carried out in sales, delivery and billing. Key elements are: presales support, inquiry processing, quotation processing, sales order processing, delivery processing, billing and sales information system.
SCM
Supply Chain Management
SRM
Supplier Relationship Management
BW
Business Information Warehouse
SEM
Strategic Enterprise Management
WM Warehouse Management
Subdivides the Storage Location used in the MM sub-module Inventory Management that already defines inventory values by high-level location, into Storage Types, Storage Sections and then into Storage Bins. WM allows control of stocks to a physical level down to a warehouse bin or, if batch-managed, to the batch level within a bin. Placement and removal strategies can be configured, and physical inventory and cycle counting can be done at this finite level.
HUM Handling Unit Management
Used as a unique ID for each pallet of stock held in the warehouse.
AF&R Advanced Forecasting & Replenishment
Mostly referred to as Forecasting & Replenishment
Apart from this there are other modules like APO
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