SAP Modules and Solutions Overview

When it comes to corporate structure, SAP is currently moving away from their module based systems to a more solutions based company approach. This will allow them to more accurately tailor SAP’s company processes to its customer’s needs. This will also allow SAP to develop a more integrated and optimized training path for both its users and program teams.

But what does this all mean?

First, it allows SAP to better accommodate recruited candidates with the appropriate training and subsequent job roles. Whereas the candidate who may have had difficulty pinpointing the exact right module designations for his or her former experiences, the new solutions based approach makes it clear what functions are entailed in which job. The candidate who had purchasing process experience previously could have been put into a position with Inventory Management (MM), Accounts Receivable (FI), and Profitability Analysis (CO), without having experience in any of these areas. This former process would have left that candidate in a less than ideal situation and would have under-prepared for the position and SAP users under-served.

The new solutions-based approach allows SAP to better serve its customers and its employees. As you can see from the SAP website, the new solutions tab breaks down the components of businesses into the most easily identifiable categories.

ñ     Financials

ñ     Human Resources

ñ     Customer Relationship Management

ñ     Supplier Relationship Management

ñ     Product Lifescycle Management

ñ     Supply Chain Management

ñ     Business Intelligence

With these new categories, SAP believes individuals can identify the best solutions for their needs, and SAP can better serve them.


However, for those who more easily associate with the modules structure, we have identified what they previously entailed:

FI or Financial Accounting: Used for your general bookkeeping and accounting matters such as accounts receivable and payable, taxes, consolidation, book closes, and both general and special ledgers.

CO or Controlling: Used for your internal cost or management accounting such as cost elements, cost and profit centers, internal orders, and activity based or product costing.

AM or Asset Management: Used to help you track, value and depreciate your assets through purchasing, sales, and general depreciation.

PS or Project systems: This module would help you manage your project processes from making orders to third party billing and even included necessary plant shut downs.

HR or Human Resources: This module is generally self explanatory and included things like payroll, training manuals, tracking employee history and planning, and even tips on career management.


PM or Plant Maintenance: Used to aid with all the facets of plant maintenance such as labor, materials, and what to do in the event of down time or outages.

MM or Materials Management: Used for anything related to materials care all the way from receipt of master raw materials, managing inventory, BOMs, purchase orders and requisitions, all the way to finished goods.

QM or Quality Management: This module was dedicated to improvement, taking you through the process of planning to execution to inspection and certification.

PP or Production Planning: This module focused on the flow between each step of the production process, and was devoted to maximizing one’s potential with regards to capacity, materials, and production on the shop floor.

SD or Sales and Distribution: Where production meets the customer, this module took you through from order to delivery, improving everything from pricing orders to packing and shipping the orders.

CA or Cross Application: Bridging the gap between modules, CA helped smooth transitions with areas like workflow, business information warehousing, internal office affairs, and overall industry solutions. It also helped introduce New Dimension products, helping identify how they could help businesses improve.

Got something to share? Let us know by adding a comment.

Incoming search terms:

  • sap modules