SAP is an advanced Enterprise Resource Planning (ERP) system that supports the management of various business processes in companies, such as accounting, logistics, human resources, production, and sales. The following is a general overview of how SAP works and its key principles:
1. Modular system design
SAP consists of modules, each of which is responsible for a specific area of a company’s operations. Module examples:
- FI (Financial Accounting)
- CO (Controlling)
- MM (Materials Management)
- SD (Sales and Distribution)
- HR (Human Resources)
Each module is integrated so that data entered in one area is available in the others.
2. Central database
SAP operates on a single, shared database, which ensures that data is consistent and up-to-date across the entire system. For example:
When a goods delivery is accepted in the MM module, this data automatically appears in the FI module in the form of accounting entries.
Any data changes in one module are automatically updated in the other modules.
3. Business processes in SAP
SAP enables the automation and optimization of business processes.
Process examples:
- Creating a purchase order in the MM module, its execution, and subsequent settlement in the FI module.
- Selling a product in the SD module and generating appropriate accounting documents in FI.
- Managing employee data and calculating salaries in the HR module.
SAP allows businesses to:
- Eliminate errors caused by manual data entry.
- Increase process efficiency through standardization.
4. User interface
SAP provides various ways of interacting with the system:
- SAP GUI (Graphical User Interface) – classic user window where data is entered and operations are performed.
- SAP Fiori – modern user interface available in a web browser and optimized for mobile devices.
5. Transactions in SAP
SAP uses transaction codes to provide quick access to specific system functions.
Examples:
- ME21N – creating a purchase order.
- VF03 – displaying invoices.
- FB50 – posting financial documents.
The user enters the transaction code in the command field and performs the appropriate operation.
6. Flexibility and adaptability to business needs
SAP is a configurable system. It can be tailored to meet specific company requirements, such as:
- Defining custom
- Creating new authorization objects.
- Expanding the system with additional functionalities through extensions and integrations.
7. Benefits of using SAP
Data and process integration – all company units work with the same, up-to-date data.
- Error reduction – minimizing errors through automation.
- Improving efficiency – simplifying and standardizing processes.
- Scalability – the system can be expanded as the company grows.
SAP is a key tool for many large organizations looking to effectively manage their business processes.
