An ERP system is a real-time business support system that caters to the data needs of the whole corporation using a sole repository of information (a database) and a really sophisticated set of highly-customizable software modules which, unitedly, ease decision-making and the activities located on these decisions. This invariably answers in highly competent operations and a resultant competitive advantage. SAP, built by SAP AG, located in Walldorf, Germany, is 1 such branded ERP system.
The SAP system is organized into some sets of 'solutions' (essentially, modules) that comprehend the information requires of specified regions of any corporation's operations. Sitting on top of these already-integrated individual modules is the Cross-Application layer, components of which farther ensure that these several solution 'talk' to each other in a cohesive mode.
There is a saying, "If you fail to plan, you are actually planning to fail". Consequently, a right introductory aim for visualizing SAP is its Project System which deals all action within the corporation as part of numerous project. Settled on occurrent orders (or perceived demand), this module is practiced define projects that will meet these orders and start trailing them from then on. A typical project would include a mix of several manufacturing activities as well as whatever linked procurement (raw materials as well as bought-out items). Chasing After each of such project right from inception, through to its completion and beyond (post-project analysis) is competently handled by this module.
For project actions that relate to manufacturing, the Production Planning module handles the specifics of capacity planning, production scheduling down to the individual tasks on the store floor. This includes handling data on the accessibility and deployment of human resources, machinery, tools and fixtures, consumables and energy requirements to name a few.
With streamlined production comes Plant Maintenance which treats preventive maintenance, breakdown maintenance along with the associated down-time of equipment and lost hours of the work-force as well as the time, material and labor expected for such maintenance.
The Materials Management module interfaces with Production Planning and Plant Maintenance to ensure a) Timely delivery of stuffs and b) Cut down price of inventory. Its scope originates with material requisitions (based on Bills of Material emanating from production programmes as well as for unplanned purchases) and tracks them from placing orders to receipt of goods, their receiving review (quality control), their being taken into stock and being subsequently supplied for production. This module also addresses finished-goods inventory.
The Costing module interfaces with each entity that has a money value affiliated with it. It takes into consideration the different cost-centers and all the associated costs : equipment, material, labor and services. The same holds true for the profit centers. This costing module has a provision for product-based costing (which could fail to handle certain set prices accurately ) as well as activity-based costing which is regarded more scientific and provides for cross-functional sharing of each of the drivers of these prices.
The Sales and Distribution module tracks all transactions from inquiries, requests for proposals/ quotations and pricing to interfacing with the finished-goods inventory (in factory and warehouses) to picking, packing, shipping and delivery.
The Financial Accounting module logs financial transactions in the electronic equivalent of basic books of accounts, keeps the General Ledger and every defined sub-ledgers, consolidates all this into the last books of accounts (essentially, Profit & Loss account and the Balance Sheet), manages tax-related transactions/adjustments and interfaces with book closure. Incidentally, most of this is of a statutory nature and has applied with the country-specific picks of SAP.
Asset Management is used for going after assets from the time they are bought, right through their lifetimes with regard to their depreciation (and, consequently their current valuation) to the point they are either sold or written off.
The Quality Management module, along with the Project System, really overlaps all some other procedures and interfaces with each 1 of them throughout the life of the corporation. Quality, they say is never by accident; it is always by design. That is why this module is used to facilitate all activities that build quality into the enterprise's products/services (preventing defects/errors happening in the first place). This is done by planning (essentially, incorporating preventive steps in the organization's work-flow), performing these quality programs and conducting periodic inspections to discover deviations, if some. Important to the enterprise's icon and credibility in the outside universe, are activities that leave to the various applicable certifications getting which is also cared in effect by this module
This was a uncomplicated view of a very comprehensive application called SAP. - 16069
The SAP system is organized into some sets of 'solutions' (essentially, modules) that comprehend the information requires of specified regions of any corporation's operations. Sitting on top of these already-integrated individual modules is the Cross-Application layer, components of which farther ensure that these several solution 'talk' to each other in a cohesive mode.
There is a saying, "If you fail to plan, you are actually planning to fail". Consequently, a right introductory aim for visualizing SAP is its Project System which deals all action within the corporation as part of numerous project. Settled on occurrent orders (or perceived demand), this module is practiced define projects that will meet these orders and start trailing them from then on. A typical project would include a mix of several manufacturing activities as well as whatever linked procurement (raw materials as well as bought-out items). Chasing After each of such project right from inception, through to its completion and beyond (post-project analysis) is competently handled by this module.
For project actions that relate to manufacturing, the Production Planning module handles the specifics of capacity planning, production scheduling down to the individual tasks on the store floor. This includes handling data on the accessibility and deployment of human resources, machinery, tools and fixtures, consumables and energy requirements to name a few.
With streamlined production comes Plant Maintenance which treats preventive maintenance, breakdown maintenance along with the associated down-time of equipment and lost hours of the work-force as well as the time, material and labor expected for such maintenance.
The Materials Management module interfaces with Production Planning and Plant Maintenance to ensure a) Timely delivery of stuffs and b) Cut down price of inventory. Its scope originates with material requisitions (based on Bills of Material emanating from production programmes as well as for unplanned purchases) and tracks them from placing orders to receipt of goods, their receiving review (quality control), their being taken into stock and being subsequently supplied for production. This module also addresses finished-goods inventory.
The Costing module interfaces with each entity that has a money value affiliated with it. It takes into consideration the different cost-centers and all the associated costs : equipment, material, labor and services. The same holds true for the profit centers. This costing module has a provision for product-based costing (which could fail to handle certain set prices accurately ) as well as activity-based costing which is regarded more scientific and provides for cross-functional sharing of each of the drivers of these prices.
The Sales and Distribution module tracks all transactions from inquiries, requests for proposals/ quotations and pricing to interfacing with the finished-goods inventory (in factory and warehouses) to picking, packing, shipping and delivery.
The Financial Accounting module logs financial transactions in the electronic equivalent of basic books of accounts, keeps the General Ledger and every defined sub-ledgers, consolidates all this into the last books of accounts (essentially, Profit & Loss account and the Balance Sheet), manages tax-related transactions/adjustments and interfaces with book closure. Incidentally, most of this is of a statutory nature and has applied with the country-specific picks of SAP.
Asset Management is used for going after assets from the time they are bought, right through their lifetimes with regard to their depreciation (and, consequently their current valuation) to the point they are either sold or written off.
The Quality Management module, along with the Project System, really overlaps all some other procedures and interfaces with each 1 of them throughout the life of the corporation. Quality, they say is never by accident; it is always by design. That is why this module is used to facilitate all activities that build quality into the enterprise's products/services (preventing defects/errors happening in the first place). This is done by planning (essentially, incorporating preventive steps in the organization's work-flow), performing these quality programs and conducting periodic inspections to discover deviations, if some. Important to the enterprise's icon and credibility in the outside universe, are activities that leave to the various applicable certifications getting which is also cared in effect by this module
This was a uncomplicated view of a very comprehensive application called SAP. - 16069
About the Author:
Are you looking for SAP Jobs? Discover how to master SAP in 24 hours and learn all about sap business workflow and webflow now.
