SAP - Basic concept for professionals

What is SAP (System Application Product)?

SAP software is that it integrates the flow of information between various business processes and basic transaction with company financial system in real time. It provides end to end solution for every business activity. All process starting from planning, production procurement, inventory, Product Pricing, Sales & Distribution, Financial statement and also use of Human Resource and many other are covered under SAP.

Basically SAP system is divided in two types of module (1) Function (2) Technical

Functional SAP is responsible for the functionalities or process in a SAP system. Whereas SAP technical look into the technical aspects like coding, programming and system administration.

Learning the different SAP modules can provide you with a valuable career path. There is a chain to work on SAP system application and choose your career path.

1. End User
2. Super User
3. Core User
4. Consultant

End User – End user will work only entry level like create FI entry, PR, Purchase Order etc.

Super User- Super user work for a support for end user. His any type of problem, he can solve it.

Core User- will work for, if some serious problem occurs, then he will take care of that. If he can’t solve that, then he will forward to consultant.

Consultant – will work for programming and system application to solve problem and develop program, have a good knowledge about all SAP system.

Under functional module part as a end user easily learn and work on SAP System., there are many module available in SAP system to work but basically four module mostly use as are under:-

1. FI Module
2. CO Module
3. MM Module
4. SD Module
5. HR Module

What is FICO Module (FI – Financial Accounting) (CO-Controlling)

1. SAP FI (Financial Accounting)

An important core module, designed for meeting all the accounting and financial transaction need of an organization. This module helps employees to manage data involved in any financial and business transaction in a unified system.  Let’s get an overview of entry level transaction in FI Module.

1. Data Entry (Use T-code – FB01, F-02, FB60, FB41)
2. View General Ledger, Vendor and Customer Ledger (T-Code – FBL1N, FBL3N, FBL5N, FAGLL03 )
3. View Trail Balance and Financial Statement (T-Code – F.01)
4. Any other

2.  SAP CO (Controlling)

Play an important role to make management decision making and internal controlling purpose. This module enables one to plan, track, perform and reporting about cost. It is also managing and configuring master data that covers cost element, cost centre, profit centers, internal order, and functional area and so on.

3. SAP MM Module (Material Management)

This module handles the procurement and inventory function of organization that engage in large volume of purchasing by giving them hands on control of inventory management. The user must fully understand the inventory approach that will be used in the module. The material requirement planning and consumption based planning are the two types of material management procedure in the module

4. SAP SD Module (Sales and Distribution)

This Module is important and largest function module of SAP and handles all the process of order to delivery of product and service. The main operation of this module handling from an customer sales order processing, pricing. Picking, packing shipping, billing, account receivable and risk management of products and services. 

5. SAP HR Module (Human Resource)

The aim of this module is to enable companies to process employee related data according to business requirement in an effective structure.

The SAP Human Capital Management contains all the processes are classified in major scenarios:-

• Organizational Management
• Personnel Management
• Time Management
• Payroll
• Training and Event Management

Conclusion 

Basically it depends on your interest where you want to start your career. In SAP there are many modules you can choose. If you have done your graduation from technical side then you can go for technical module like, SAP ABAP, Basis and programmer, and if you are from management background then go for functional module like explained above. Apart from that everyone has a different view of what career success looks like. We encourage you to bring your personal talent and passions to work, and combined them with SAP opportunity to create a good career.

CA Vikram Agarwal is working as a Finance and Account Profession in Cement Industry in the field of Account, Taxation, Costing, MIS and heading of Department.