Introduction to SAP

SAP was founded in 1972 in Walldorf, Germany by five former IBM employees: Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus E. Tschira, Claus Wellenreuther. It stands for Systems, Applications and Products in Data Processing. Over the years, it has grown and evolved to become the world premier provider of client/server business solutions for which it is so well known today. The SAP R/3 enterprise application suite for open client/server systems has established new standards for providing business information management solutions.

SAP product is considered excellent but not perfect.  The main problems with software product are that it can never be perfect.

The main advantage of using SAP as your company ERP system is that SAP has a very high level of integration among its individual applications which guarantee consistency of data throughout the system and the company itself.

In a standard SAP project system, it is divided into three environments, Development, Quality Assurance and Production.

The development system is where most of the implementation work takes place. The quality assurance system is where all the final testing is conducted before moving the transports to the production environment.  The production system is where all the daily business activities occur.  It is also the client that all the end users use to perform their daily job functions.

To all company, the production system should only contain transport that has passed all the tests.

SAP is table drive customization software.  It allows businesses to make rapid changes in their  business requirements with a common set of programs.  User-exits are provided for business to add in additional source code.  Tools such as screen variants are provided to let you set fields attributes whether to hide, display and make them mandatory fields.

SAP are categorized into 3 core functional areas:

  • Sales and Distribution (SD)
  • Material Management (MM)  
  • Warehouse Management (WM) 
  • Production Planning (PP) 
  • General Logistics (LO) 
  • Quality Management (QM)
  • Financial Accounting (FI) 
  • Controlling (CO) 
  •  Enterprise Controlling (EC)  
  • Investment Management (IM)  
  • Treasury (TR) 
Human Resources 
  • Personnel Administration (PA)  
  • Personnel Development (PD)


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