Tech Articles SAP R/3The R/3 System contains a large number of modules, which combine to execute the business management tasks of an organisation. Modules are grouped into three main areas: Logistics, Accounting and Human Resources. The Logistics Modules handle business tasks that concern the whole company.
Accounting modules handle the management of assets and provide report regarding the performance of the business so that management decisions are based on objective, up to date information.
Human Resources group integrates such activities as personnel planning, recruitment, salary administration and personnel development.
Sales and Distribution module
The Sales and Distribution module, SD, handles tasks related to sales, shipping and billing. It provides sales support, such as tools for managing information on sales leads and competitor activity and the sales information system provides early warning of market trends.
When a customer places an order, the SD module is able to extract info from the DB such as the customer's address, sales activity and credit limit. SD works with modules such as Materials Management and Production Planning to check on material availability and estimate the earliest possible delivery date for the order.
SD provides info to employees about orders, which are due for delivery. It works with MM to pick the completed goods from the warehouse and supports activities related to packaging and the creation of shipping papers.
Once delivery is initiated, SD carries out billing automatically. This info is immediately available to the Financial Accounting and Controlling modules.
Material Management module
The main task of MM is to handle the flow of materials in, through and out of the company.
MM deals with purchasing operations, warehouse management and inventory. It also features invoice verification and provides a sophisticated information system.
Production Planning module
PP assists all staff, from plant managers to operators, to plan the production process. For example, it plans the transport and storage of raw materials, production equipment and by-products and waste.
Plant Maintenance module
PM handles the repair of buildings and the maintenance of equipment used in the production process. It provides information about machine usage and possible downtime. PM and PP works closely together to ensure an efficient production process.
Quality Management module
QM supports all processes related to the quality assurance of the product. It provides detailed definitions of inspection schedules and manages data such as defect rates and quality related costs. When required, QM will also manage quality certification.
The Accounting modules provide a general ledger system, enabling balance sheets and profit and loss accounts to be continuously updated. However, they also have other functions such as the management of assets and the provision of high level reporting to assist in the general control of the organisation.
Financial Accounting module
FI provides the general accounting facilities such as balance sheets and profit and loss statements. These may be tailored to the needs of individual subsidiaries and are often multi-lingual. They will also comply with the regulations applying in any particular country.
In addition, FI handles asset management, including asset history and depreciation. It will even provide simulations of the position following planned investments to assist the decision making process.
Controlling module
CO is designed not only to control costs but also to control the objectives of the company. As part of this process, CO supplies information to assist managers in decision making and future planning.
Enterprise Controlling module
EC is an information system for company executives. It is designed to combine internal company information with data about the external markets and isolate the strategic issues which affect marketing strategy.
The Human Resources modules provide an integrated human resources management system, covering personnel planning and recruitment, personnel and salary administration, payroll and personnel development.
Personnel Administration module
PA contains the master data area where the records of all employees are held. All Human Resources applications and many other modules in the other business groups access this data. New or updated details are, therefore, available throughout the system.
PA also provides a range of levels of time management from simple monitoring of hours worked through to automatic matching of employee hours and machine availability. PA is also responsible for such issues as payroll and the administration of travel expenses.
Personnel Planning and Development module
PD covers all aspects of human resources planning. For example, cost planning enables the effect of different payment strategies to be predicted as a basis for decision making.
PD also supports long term succession planning. For example, data on the age structure of employees in particular skills area may highlight a need for the career development of existing employees or the efficient recruitment of additional resources.
The ability of the modules to communicate with each other enables R/3 to handle the business management tasks of an organisation.
First Page: Brief Intro on SAP Components & Modules
| good article |
