Meaning of SAP System

What is the SAP System:

The SAP system is an integrated business management computer system designed to model and automate the different areas of the company and the administration of its resources.

The name of the SAP system represent the acronym in German Systeme Anwendungen und Produkte which means in Spanish "systems, applications and products".

The SAP system is an ERP system (Enterprise Resource Planning or enterprise resource planning) as well as others that exist in the market, such as Microsoft's ERP system called Microsoft Dynamics, and Oracle's ERP system, called JD Edwards.

See also Planning.

All ERP systems are comprehensive systems composed of different modules for managing the resources of each area of ​​the company such as administration and finance, purchasing, sales, production, human resources, maintenance and more depending on the size of the company.

The most relevant characteristics of an ERP system are:

  • Centralized database: which helps the consistency of company data.
  • Interaction of the different modules: which helps the interaction of the different areas of the company as a ‘living organism’.

SAP system features

The company SAP AG has created different modules for its SAP system divided into four specific areas: logistics, financial, human resources and multi-applications:

  • Logistics: PP modules or industrial planning and production, MM modules or materials handling (acquisition of goods and contracting of services) and SD modules or sales and distribution.
  • Financial: FI or financial-accounting modules, co-designed modules for SMEs or micro-companies and TR or treasury modules.
  • Human resources: HCM modules.
  • Multi-application: IS or sector modules and WF modules or workflow to define information flows and work hierarchies.
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