Meaning of sap system (what is it, concept and definition)

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 represents the German acronym 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) like others that exist in the market such as, for example, the Microsoft ERP system called Microsoft Dynamics, and the Oracle ERP system, called JD Edwards.

All ERP systems are comprehensive systems made up of different modules for managing the resources of each area of ​​the company such as the areas of 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'.

Features of the SAP system

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 SME companies or micro-companies and TR modules or treasury. Human resources: HCM modules. Multi-application: IS or sector modules and WF or workflow modules to define information flows and work hierarchies.

See also:

• LogisticsHuman ResourcesPymeMicrocompany