What is SAP Software Used For?

Last Updated on March 2, 2020 by The Soft Best

What is SAP Software Used For

What is SAP?

What is SAP software used for? The SAP System or “Systems, Applications, Products in Data Processing” is a computer system that allows companies to manage their human. Financial-accounting, productive, logistic resources, and more, the world’s leading companies use SAP to manage A successful way all phases of your business models.

The tools offered by SAP have the function of helping the user with all the administrative tasks of his company and, through internal operation, creating an integrated environment that allows increasing the efficiency of its users. The SAP ERP has three different versions: SAP ERP 6.0 – previously R/3 – All-In-One (A1) and Business One (B1).

SAP ERP 6.0 is the version designed for multinational companies, such as those listed in the “Fortune 500” list; This is due both to the complexity of the solution, and the cost associated with it. Meanwhile,  SAP Business One and SAP All-In-One are versions for small and medium enterprises (SMEs).

What is SAP Software Used for?

SAP establishes and integrates the productive system of companies. It is constituted with ideal tools to cover all the needs of business management – be they large or small – around: business administration, accounting systems, financial management, accounting, operations management, and marketing plans, logistics, etc.

The SAP provides software products and services to solve problems in companies that arise from the global competitive environment, the development of customer satisfaction strategies, the needs of technological innovation, quality processes, and continuous improvements, as well as compliance with legal regulations imposed by the government institutions. The application modules are as follows:

  • Financial management (FI). Ledger, auxiliary books, special ledgers, etc.
  • Controlling (CO). General expenses, product costs, income statements, profit centers, etc.
  • Treasury (TR). Control of funds, budget management, etc.
  • Project system (PS). Graphs, project cost accounting, etc.
  • Personnel management (HR). Personnel management, payroll calculation, recruitment, etc.
  • Maintenance (PM). Task planning, maintenance planning, etc.
  • Quality Management (QM). Quality planning, quality inspection, certificate, quality notice, etc.
  • Product planning (PP). Manufacturing on demand, mass production, etc.
  • Material management (MM). Stock management, purchases, invoice verification, etc.
  • Commercial (SD). Sales, shipping, billing, etc.
  • Workflow (WF)., Sector solutions (IS), with functions that can be applied in all modules.

These modules are as if they were “separate applications” that fit each department in question. Let’s say all departments have their programs to manage tasks, and then everything is reflected together in the common database. The bosses, for example, can see thanks to BI (Business Intelligence) the situation of the company in real-time, through graphs, reports, etc.

Why Implement or Use SAP?

The solutions of the German multinational are very expensive and represent an important disbursement in the company, in addition to the initial chaos that they cause in the employees. However, being standard and backed by a serious company, countless partners to choose from, documentation, and courses for everyone’s access remains one of the best and most popular options. Besides, the competition has a similar or higher price in many cases.

When we talk about SAP costs, even for an SME, as we have already mentioned, he is an important disbursement. If you are looking for the price, even the most “light” version implies spending thousands of dollars. As a general rule, you have to acquire or rent certain infrastructure, pay the partner for the implementation, maintenance costs, etc.