An Introduction to SAP R/3

SAP is the world’s largest enterprise software company and the world’s third-largest independent software supplier overall.R/3 is scalable and highly suited for many types and sizes of organizations.

The software is highly customizable using SAP’s proprietary programming language, ABAP/4.SAP R/3 is based on various hardware and software architectures, running on most types of UNIX, on Windows NT and OS/400. Also SAP R/3 runs on several databases Oracle, ADABAS D, Informix, DB2 for UNIX, DB2/400, Microsoft’s SQL Server 6.0.

ERP consists of common global processes and systems integrated across all business units. With SAP R/3, all units like Manufacturing, Order Management, and Product Delivery are linked together across business units with greater speed, accuracy, and service to the customers with utmost satisfaction. A key outcome from SAP R/3 implementation will be more robust processes which in turn increase the Operating Excellence and also help in facilitating easier integration of new businesses and acquisitions. A sample like SAP R/3 process helps in generating invoices that are easier to read and understand.

As everyone know a very good information systems is expensive to build and difficult to maintain or expand. This realization has lead many companies to purchase integrated software applications rather than try to build their own. Such implementations of integrated applications are what have produced massive sales of large application suites for companies such as SAP because R/3 integrates many application and some to name are:

• Financial applications
• Distribution applications
• Human resources applications
• Manufacturing applications

Indeed, so broad is SAP’s R/3 that it offers virtually every common business application needed by a typical enterprise.

SAP R/3’s applications are modules. They can be used either alone or combined with other solutions. The integration capability of these applications increases the benefits derived for any company. Some of them are namely:

MM This stands for Materials Management. MM optimizes all purchasing processes, helps in accurate inventory and warehouse management and so on.

PP This stands for Production Planning and Control. This helps in the management of all process and all types of manufacturing like assemble-to-order production, supply chain management and so on.

SD This stands for Sales & Distribution. This helps in all sales and distribution activities namely pricing, on-time delivery, profitability analysis and so on.

FI This stands for Financial Accounting. This module helps in gathering all accounting information and documenting and thereby helps in producing a report and information that can be used for analysis and control and planning.

CO This stands for Controlling. This helps in the control of complete controlling system, internal process of company and so on.

PA Stands for Payroll Accounting and this helps in centralizing the payroll process and helps in giving a global view and maintaining the data securely.

OM This stands for Organizational Management and this helps in giving an accurate picture of organization structure and also helps in cost planning even in the individual level.

Apart from this there are many more modules available like PDM which stands for Product Data Management, TR which is for Treasury, EC which stands for Enterprise Controlling and so on.

SAP R/3 Enterprise Core which is popularly known as Enterprise Release 4.7 is the latest version of the SAP R/3 suite of enterprise software applications. It is designed to offer the best possible foundation for easily carrying the company through to e-business with mySAP Business Suite. Enterprise core provides users with the SAP R/3 Enterprise HR and non-HR Core Support Packages. SAP 4.7 has a more structured approach as compared to SAP 4.6C from a technical perspective as well as from a functional perspective. In SAP 4.7 the functional and infrastructure developments are made on separate levels.

Editorial Team at Geekinterview is a team of HR and Career Advice members led by Chandra Vennapoosa.

Editorial Team – who has written posts on Online Learning.


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