Enterprise Resource Planning (SAP)
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An ERP system consists of software components, called modules, that each focus on an essential business function, such as finance and accounting, HR, production, materials management or customer relationship management (CRM). Organizations only use the modules they need to run their particular business.
SAP’s various ERP products enable its customers to run their business processes, including accounting, sales, production, HR and finance, in an integrated environment, with data from each module stored in a central database. The close integration and common data store ensure that information flows from one SAP ERP component to another without the need for redundant data entry and help enforce financial, process and legal controls. Its modules are separated into functional modules and technical modules. The functional modules include the following:
- Human Capital Management (SAP HCM)
- Production Planning (SAP PP)
- Materials Management (SAP MM)
- Project System (SAP PS)
- Sales and Distribution (SAP SD)
- Plant Maintenance (SAP PM)
- Finance and controlling (SAP FICO)
- Quality Management (SAP QM)
How does the SAP ERP system work?
As an on-premises ERP system, SAP ECC is usually deployed in a three-tier, client-server architecture. The three tiers are the presentation tier, the application tier and the database tier.
The presentation tier provides the user with the SAP graphical user interface (SAP GUI), which can be installed on any computer that uses Microsoft Windows or macOS. The SAP GUI is the point of communication between the user and ECC.
The application tier is the core of ECC. It is responsible for processing transactions, executing business logic, running reports, monitoring access to the database, printing documents and communicating with other applications.