Learn How To Apply SAP Modules Into Your Business Process

Posted on February 6, 2009 @ 2:26 am
by Joe Long

An ERP system is a real-time business support system that caters to the information demands of the whole corporation using a single deposit of data points (a database) and a very sophisticated set of highly-customizable software modules which, together, help decision-making and the activities established on these decisions. This invariably consequences in extremely effective procedures and a resultant competitive reward. SAP, prepared by SAP AG, situated in Walldorf, Germany, is 1 such branded ERP system.

The SAP system is arranged into different sets of ‘solutions’ (essentially, modules) that address the info requires of special fields of any company’s processes. Set on top of these already-integrated personalized modules is the Cross-Application layer, components of which further learn that these various result ‘talk’ to each other in a cohesive fashion.

There is a saying, “If you fail to plan, you are actually planning to fail”. Hence, a right starting point for interpreting SAP is it’s Project System which deals each activity within the organization as part of several project. Settled on occurrent orders (or perceived demand), this module is practiced specify projects that will accomplish these orders and begin chasing after them from then on. A normal project would take on a combination of different manufacturing activities as well as whatever linked procurement (raw materials as well as bought-out items). Tracking each of such project right from inception, through to it’s completion and beyond (post-project analysis) is ably dealt by this module.

For project actions that refer to manufacturing, the Production Planning module handles the particulars of capability planning, production scheduling down to the individual chores on the store floor. This takes on handling data on the accessibility and deployment of human resources, machinery, tools and fixtures, consumables and energy requirements to list a few.

With streamlined production gets Plant Maintenance which treats preventive maintenance, breakdown maintenance along with the associated down-time of tools and lost hours of the work-force as well as the time, material and labor involved for such maintenance.

The Materials Management module interfaces with Production Planning and Plant Maintenance to learn a) Timely delivery of stuffs and b) Cut down cost of inventory. Its range begins with material requisitions (based on Bills of Material emanating from production programs as well as for unplanned purchases) and leads them from placing orders to receipt of goods, their acquiring review (quality control), their being needed 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 cash value linked with it. It takes into thoughtfulness the several cost-centers and all the linked prices : equipment, material, labor and services. The identical makes true for the profit centers. This costing module has a provision for product-based costing (which could fail to comprehend certain set costs accurately ) as well as activity-based costing which is considered more scientific and supplies for cross-functional apportioning of all the drivers of these costs.

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 primary books of accounts, maintains the General Ledger and every defined sub-ledgers, consolidates all this into the final 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 gets implemented with the country-specific options of SAP.

Asset Management is practiced for tracking assets from the time they are purchased, right through their lives with regard to their depreciation (and, hence their latest valuation) to the point they are either sold or written off.

The Quality Management module, along with the Project System, in reality overlaps all some other procedures and interfaces with all one of them throughout the lifetime of the organization. Quality, they say is never by chance; it’s always by design. That is why this module is used to facilitate all actions that make quality into the company’s products/services (preventing defects/errors happening in the 1st place). This is complete by planning (essentially, incorporating preventive steps in the organization’s work-flow), fulfilling these quality programs and conducting periodic inspections to find out deviations, if any. Important to the company’s image and credibility in the outside universe, are activities that take to the several applicable certifications obtaining which is likewise handled effectively by this module

This was a simplex view of a very extensive application called SAP.

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