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This SAP article will guide you all about “SAP (System Applications Products)”. The first question which arises in our mind “what is SAP” ? and what is SAP ERP software?, which is the best SAP module and which module has a best scope for bright future ??

What does SAP stands for – SAP stands for Systems, Applications and Products in data processing.

1. SAP is the fourth largest software company in the world.


2. The SAP R/3 system is a business software package designed to integrate all areas of a business.


3. It provides end to end solutions for financials, manufacturing, logistics, distribution etc.


4. All business processes are executed in one SAP system and sharing common information with everyone.

Define SAP :- SAP is an Enterprise Resource Planning (ERP) system by SAP AG, company based out of Walldorf in Germany. AG is derived from the German word AKtiengesellschaft. According to German Language SAP Stands for Systeme, Anwendungen und Produkte in Der Datenverarbeitung. SAP software suite that is being implemented as part of re-engineering and Provides end to end solutions for financial, logistics, distribution, inventories. Present scenario large number of companies are using sap software for their day to day business activities.

After the hugely successful R/3, SAP created more and more niche software like Customer Relationship Management (CRM), SRM, XI (now called Process Integration or PI) and once again living up to the standards of SAP by maintaining tight integration with their core ECC software. The newest version of the suite is SAP ECC 6.0.
SAP History :- SAP Founded in and around 1972 by five IBM engineers Hopp, Wellenreuther, Hector, Tschira and Plattner.

SAP R/1 :- The first version of SAP was launched in and around 1972 known as the “R/1 system. R” stands for real-time data processing. it is one tier architecture in which three layers Presentation, Application and Database are installed in one system/server

(one – Presentation + Application + Database)

SAP R/2 :- In 1979 second version of SAP R/2 was released. with IBM’s database and a dialogue-oriented business application. SAP R/2 to handle different languages and currencies. R/2 is 2 tier architecture in which three layers Presentation, Application and Database are installed in two separate server.

(Server one – Presentation, Server two – Application + Database

SAP R/3 :- SAP upgraded R/2 to R/3. SAP R/3 is the client/server version of the software and it is 3 tier architecture in which three layers Presentation, Application and data base are installed in three server/system.

Server one – Presentation, Server Two – Application, server Three – Database

Products of SAP :- 

1. SAP R/3 and R/3 Enterprise


2. mySAP Business Suite


3. SAP ERP


4. SAP Industry Solutions


5. SAP xApps


6. SAP Solution Manager

Industry Solutions of SAP :-

SAP R/3 – Modules & Integration :- 

SAP Functional Modules :-

1. FICO – Finance & Control


2. PP – Production Planning


3. MM – Material Management


4. SD – Sales & Distribution


5. HR – Human Resources

SAP Technical Modules :- 

1. ABAP – Advanced business applications programming


2. XI – Exchange Infrastructure


3. Net viewer


4. Basis


5. BIW – Business Information Warehousing

What is SAP FICO ?

SAP FICO Stands for FI (Financial Accounting) and CO (Controlling). SAP FICO is the imp module of ERP and both Finance and Controlling modules stores the financial transactions data. The ‘FI (Financial Accounting)’ records, collects, and processes financial transactions or information on a real-time basis to provide the necessary inputs for external (statutory) reporting purpose. SAP CO plays an important role for the management decision making purpose and for the internal reporting purpose.

FICO contains the following sub-modules.

What is SAP MM ?

SAP MM ( Material Management ) is one of the imp module in SAP ERP software and it supports the procurement and inventory functions occurring in day-to-day business operations. This MM module contains many aspects such as purchasing, goods receiving, material storage, consumption-based planning, and inventory. SAP MM module is fully integrated with other modules in the SAP R/3 System such as FICO, SD, QM, PM, PP, and WM. Read More

SAP PP :- The Production Planning application module is used to plan and control the manufacturing activities of a company. consists of all system configuration, master data, , and complete solution to Produce process

SAP SD :- SAP SD ( Sales and Distribution ) is important module of SAP and it is a part of logistics. The main activities of SD are sales order handling, distribution of shipments to customers, billing process, customer invoice, delivery.SD module is fully integrated with other modules in the SAP R/3 System such as Finance, Purchasing(MM), Production Planning(PP). Read More

What is SAP HR ?

SAP Human Resources manages complete employee life cycle and payroll. All aspects are covered from training to appraisal.

Advantages of SAP :-

• SAP manages these business management tasks in modules that all work together in one system by sharing information.


• Promoting consistent practice across an entire division


• No duplicate data


• Automate Project Monitoring and Multi dimensional and flexible reporting


• Standardization of business processes


• Make Planning, Scheduling, Tracking and Management easier leaving more time for you to perform value-added work


• Ability to provide clear cut job roles with authorizations


• Enabling integration with e-commerce


• Cost Savings on overheads such as Stationery, File Storage, etc

Why – SAP R/3 has been successful :- 

• Multi-Lingual


• Secure Information


• Multi-Currency


• Best business Practice


• Enterprise-Wide


• Real time processing with an integrated suite of client/server applications

Phases of SAP Implementation project :- 

• Phase 1 – Project Preparation,


• Phase 2 – Business Blueprint,


• Phase 3 – Realization,


• Phase 4 – Final Preparation,


• Phase 5 – Go-Live and support

Now, hopefully, you will get more idea about what is SAP (System Applications Products).