SAP is a computer system that manages in an integrated way “on-line” all the functional areas of the company. SAP is organized into a set of client / server software modules at three levels (in the R / 3 version), to which it adds a “Workflow” module for the optimization and reengineering of business processes.
The SAP System is based on the concept of combining all business activities and technical processes of a company into a simple, integrated, robust and reliable IT solution.
The strength of the SAP system lies in its integration in real time, linking the company’s business processes and corresponding IT applications, as well as supporting and implementing immediate solutions to changes that through the organization (at the level of aggregation Departmental, divisional or global) are proposed.
The success of SAP R/3 is because it combines unique features that are ideal when working in business management. To begin with, SAP is very flexible. It allows to streamline the daily tasks of any company regardless of the sector and the country in which it works, its size and other factors that can pose a problem with other software, especially with developments to measure.
Another important aspect is that it is highly integrated: it overcomes the hierarchical and functional limitations typical of the company. Everything is integrated (on-line) in the same software that coordinates the different structures, processes and events of all departments and functional areas, allowing each employee to have all the necessary information at all times.
Thus, not only updates the information in real time (important feature of SAP that is a huge advantage), but also simply enter the data once, since it is the system is responsible for passing and update the data in the rest Of the modules or programs. Thus the interconnection between plants, offices, production centers, etc. Is secured. With a non-integrated system, all operations could be done in each department, office, factory … with its specific programs for each one (materials management software, software to control wages, sales, purchases, etc. Each of them working with their own protocols, with their own information, adapted to different hardware, without connecting or sharing information) with which they worked twice: data that is repeated in several areas are handled several times (for example, In the warehouse and in the administration) and, because they are not interconnected (although there is an internal network, the various programs could work with incompatible formats, data, machines), it is necessary for someone to dedicate themselves to passing information on to each other, Losing a time that could be dedicated to improving the strategy. SAP R/3® prevents unnecessary repetition of the information (the data you enter does not need to be entered by another, even from another section).
It was designed as an integrated product, but it is possible to install only part of the software (the modules can be used individually) and then expand step by step according to your needs. It also allows communication with third parties (customers or suppliers of your company other than SAP AG and its partners).
- Integrates the business functions in the company / group of companies.
- It balances the use of client / server technology, which is scalable and offers optimal configurations in hardware, database management and open systems.
- An open architecture system that makes it easy for companies to choose their computer equipment and operating systems so that they can take full advantage of advances in technology.
- It uses standard user interfaces that make it very simple to integrate other software, especially the office automation (word processing, spreadsheets, etc.).
- It uses recognized international standards, reducing the dependence of companies on proprietary technologies, promoting the development of new applications.
- It is able to work in multinational enterprise environments, supporting many languages and responding to the necessary flexibility of the specific currencies of each country as well as the requirements of the tax legislation.
- It provides proven development tools so companies can develop programs tailored to their needs and integrate them into the R / 3 system.
- It incorporates the level of business knowledge and the best “practices” business, in continuous evolution.
- Ensures the maintenance of product improvements based on the amount that SAP performs in R & D: 25% of revenues.
By deploying the best technology, services and development resources, SAP has delivered a platform that uncovers valuable information resources, improves supply chain effectiveness, and builds strong customer relationships.
From a functional point of view and its technical architecture, SAP R/3 can be defined as an open and interconnectable Information System based on client / server technology and designed to meet the information needs of any company.
The architecture of the R / 3 System meets, among others, all the specifications of POXIS – Portable Operating System Interface for UNIX – standard for the definition of open systems.
For this reason, SAP guarantees the opening of R / 3 by incorporating internationally recognized standards for interfaces, services and data formats, allowing interaction and portability between applications, data and user interfaces.
It includes among others the following open interfaces: TCP / IP, RFC -application ABAP / 4 of RPC. It is the open interface of the R / 3 System to use the R / 3-, CPI-C – communication between applications of different systems – SQL and ODBC – to access databases – OLE / DDE – Integration with PC applications, X.400 / X.5400, MAPI, EDI – for external communications – Open Interfaces – for specific applications like: CAD, Optical Archive, etc.
The R / 3 architecture is designed for virtually unlimited portability.
Availability under the most important UNIX operating systems in the market: Windows NT, AIX, HP-UX, SINIX, LINUX, etc. It also works in the IBM Host environment under the S. O. OS / 390.
The portability allows to use different Databases like Informix, Oracle, Software AG, SQL Server, DB2, etc.
The Graphical User Interface allows the presentation of the business functions under different client environments: Windows, OSF / Motif, OS / 2 PM and Macintosh.
Central Database with Distributed Applications
Central database to ensure the integration and consistency of data and distributed applications allowing the scalability of the system. This also ensures the portability of different environments.
Financial Accounting (FI Module)
It registers and manages the accounting data of its company necessary for the national and international surrender of accounts, it justifies documentary all the operations and it facilitates the current information for the tasks of financial control and planning of the whole of the Company.
It has the following submodules:
- General Accounting.
- Accounts Receivable.
- Bills to pay.
- Legal consolidation.
- Financial control.
- Control of Funds.
- Accounting Fixed Assets.
- Control of Investments.
- Technical Asset Management.
Cost Accounting (CO Module)
Integrated system of planning, monitoring and complementary processes necessary for the financial control of the Company as a whole, equipped with a uniform information communication infrastructure and the coordination of processes between Companies.
It also incorporates the following subcomponents:
- General Cost Accounting in Cost Centers: Definition of the CeCo’s structure.
- Cost sharing.
- Allocation of planned costs.
- Comparisons between Planned and Real Value.
- Budgeting and Budget Tracking.
- Product Cost.
- Comparisons between planned and actual product.
- Results by Product and Factory.
- Analytical and Accounting Results Account.
- Benefit Centers.
- Costs based on Activities (ABC).
Treasury (TR Module)
The complete solution for efficient financial management. It controls and guarantees the Company’s liquidity, manages profitable financial investments while reducing risk.
It has the following functionality:
- Treasury forecast.
- Bank position.
- Forecast of liquidity.
- Treasury budget.
Sales Management and Distribution (SD Module)
Active support of sales activities with integrated functions for pricing, rapid order processing and timely delivery. In addition, the applications contain an interactive and multilevel configuration of variants and integrate sales with profitability analysis and manufacturing.
- Organizational Structures in Sales and Data Customer and product masters.
- Assignments of Products to Type, Families, Clients, etc.
- Sales Process.
- Route Management.
- Stock Updating.
- Issuance of Documentation.
- Sales Analysis.
- Very complete and advanced INFO system.
Materials Management, Purchasing, Suppliers and Stocks (MM Module)
It optimizes all purchasing processes, allows automatic evaluation of suppliers, uses precise management of stocks and stores to reduce costs of supply and storage and is integrated with invoice verification.
It offers, in brief, the following:
- Organizational Structures in Purchases and Product Master Data.
- Purchasing Management.
- Supplier Management.
- Invoice Verification.
- Control of Stocks and Warehouses.
- Material movements.
- ABC Analysis Lots Management.
Production Planning (PP Module)
The integrated processes serve as support for all known manufacturing processes, including:
- Continuous manufacturing.
- Repetitive manufacturing.
- Manufacture upon request.
- Manufacture of configurable products.
- Process design.
- Manufacture against stock and per project.
It also has:
- Master and Organizational Data (Jobs, roadmaps, physical layout, etc).
- Needs Planning and Purchasing.
- Formulas Management.
- Resource planning based on consumption.
- Explosion of Needs.
- Needs Tracking.
- Inventory management.
- Planning of Manufacturing Processes.
- Programming and adjustment of capacities.
- Simultaneous planning of needs and capacities.
- Management of Production Processes.
Management of Maintenance
The need to carry out the three types of maintenance in companies with significant infrastructure results in an efficient and effective control of maintenance repairs and inspections. By hosting the teams in the database of locations, SAP is able to perform an excellent management of the maintenance orders, communicating in a timely manner to the responsible, and all this in an integrated way with the other R/3 modules.
Quality Management (QM Module)
It controls, records and manages all processes of your company relevant to quality management, coordinates the inspection process, automatically introduces corrective measures and can be integrated into the laboratory information systems.
Project Management (PS Module)
In direct connection with Purchasing and Financial Control, the Project System coordinates and controls all phases of a project: from budget to design and approval, through the management and settlement of human resources and the necessary supplies.
- Definition of the structure of the projects.
- Project planning.
- Control Projects.
- Project following.
HR Management (PA and PD Modules)
Global solutions for planning and managing all the processes of personnel of your company. It is permanently updated in accordance with current regulations.
It covers all human resources tasks:
- Development and personnel planning.
- Candidate data management.
- Courses taken.
- Payroll Accounting.
- Time management and shifts.
- Organization and Planning Staff Development.
- Qualifications of candidates.
- Organizational charts.
- Planning of personnel costs.
- Staff Administration
- Time and turn management.
- Travel expenses.
Workflow (WF Module)
This is a module functionally crossed with the rest of applications. It is based on the use of triggers for event startup, such as creating an order or releasing an invoice. Its use facilitates the flow of the work processes of each company.