SAP offers several functional and technical software

modules (with underlying sub-modules) that combine into

a comprehensive ERP system to process multi-functional
business transactions and reports.
What Is SAP?
SAP is one of the largest global providers of ERP software.
SAP corporate headquarters is in Germany, with office
locations in many countries, including the United States.
Although SAP is well-known for its enterprise ERP
solutions for the largest corporations, it also offers ERP
software products targeting small businesses and mid-
sized companies.
What Is ERP?
ERP is enterprise resource planning software having
multiple integrated modules in a unified database working
together to handle business processes and transactions
for functions throughout the organization.
ERP systems work with SAP HR and SAP CRM modules or
integrate with third-party software for human resources,
payroll, and CRM (customer relationship management). We
include these modules in our SAP modules list, although
they may be considered separate products outside ERP.
SAP ERP System Modules
SAP ERP system modules consist of both functional
modules and technical modules. For a complete list
of SAP ERP modules, visit the SAP website Help section
to find a searchable and expandable Product Hierarchy of
SAP software.
Functional
SAP functional modules are used to process transactions
and reports in a business area of the company.
The functional ERP SAP modules list includes:
  Human Capital Management (SAP HCM)
 Production Planning (SAP PP)
 Material Management (SAP MM)
 Financial Supply Chain Management (SAP FSCM)
 Sales and Distribution (SAP SD)
 Project System (SAP PS)
 Financial Accounting and Controlling (SAP FICO)
 Plant Maintenance (SAP PM)
 Quality Management (SAP QM)
 Investment Management (SAP IM)

Technical
Technical modules perform technical processes in the
information system and functions in the ERP system,
including providing an advanced programming language
(ABAP) to use with SAP, system administration, and
evaluating and maintaining SAP solutions that may be
combined with third-party software.
Technical SAP modules, tools, and platforms include:

 SAP NetWeaver (formerly SAP Basis)

 SAP EP (Enterprise Portal)
 SAP PI (Process Integration)
 SAP Solution Manager
 Advanced Business Application Programming (SAP
ABAP)
 SAP Application Server
 Business Technology Platform (SAP BTP)

SAP offers AI-driven business analytics and business

intelligence (BI) solutions within the SAP Business
Technology Platform.
Main SAP ERP Functional Modules
Descriptions of the main SAP ERP functional modules that
are in demand from users follow.
Human Capital Management (SAP HCM), also known as Human
Resource Management (SAP HRM) or Human Resources (SAP
HR)
The SAP Human Capital Management (HCM) module
progresses beyond just human resources personnel
administration and payroll to treating employees as
valuable assets.
Features relating to HCM include:

 Employee experience management

 Talent management from recruiting and onboarding to
employee training
 Core HR and payroll
 HR analytics and workforce planning

Human Success Factors, a SaaS suite, provides cloud-

based HXM features for human experience management.
Human experience management includes using built-in
Qualtrics surveys for employees to track their needs and
experiences.
Production Planning (SAP PP)
The SAP Production Planning module is used to plan and
accomplish manufacturing tasks with materials
requirements planning (MRP). The Production Planning
module does capacity planning, uses the hierarchical bill
of materials (BOM) from master data for each product and
subcomponent with underlying parts, accomplishes
master scheduling of resources, and handles inventory
movement.
Production Planning can perform lot size optimization,
sequence planning, and exception handling as part of data
management.
Material Management (SAP MM)
SAP Material Management module deals with supply chain
logistics, sourcing, inventory procurement with purchase
requisitions and purchase orders, and inventory
management. The master data file, vendors file, and bill of
materials are part of SAP MM.
Material Management is used in combination with
accounts payable in the Financial (SAP FI) module for the
invoice verification process to match POs and receivers.
SAP offers a separate web-based Supplier Relationship
Management (SAP SRM) platform.
The add-on Warehouse Management System (WMS) SAP
solution maps and manages inventory to the storage bin
level.
SAP HANA S/4 has an Advanced Planner and Optimizer
(SAP APO) for supply chain management (SCM).
SAP also offers Product Lifecycle Management (PLM)
software.
Financial Supply Chain Management (SAP FSCM)
The SAP Financial Supply Chain Management module
redefines the meaning of the supply chain, relating it to
customer functions for risk management assessment,
billing, accounts receivable, and collections.
Sales and Distribution (SAP SD)
The SAP Sales & Distribution module handles sales,
pricing, shipping, credit management, billing, and foreign
transactions. SAP offers an add-on CRM product for
customer relationship management besides its SAP SD
module.
Project System (SAP PS)
The SAP Project System module is project management
software used for customer and internal projects,
including capital investment and overhead. Project
System includes a work breakdown structure (WBS),
processes consisting of individual activities in a work
package, and planning and scheduling tasks. Procedures
include budget allocation and management for the
project.
Financial Accounting and Controlling (SAP FICO)
The SAP modules for finance are Financial Accounting
(SAP FI) and Controlling (SAP CO) modules, combined as
FICO to handle accounting and planning.
The Finance SAP FI module includes SAP sub-modules for
accounts receivable, bank accounting, asset accounting,
accounts payable, travel management, fund accounting,
general ledger accounting, and legal consolidation.
Controlling (SAP CO) is used for planning by account
category for each cost center and profit center (rolled up).
Enterprise Controlling accomplishes actual cost vs budget
variance analysis in combination with cost and profit
center accounting. The functionality of CO includes
profitability analysis by market segment, product cost and
pricing for profitability analysis, activity-based
accounting, and internal orders with cost tracking.
SAP offers another product for Treasury and Risk
Management that integrates with the S/4HANA SAP
system.
Plant Maintenance (SAP PM)
SAP’s Plant Maintenance module is used for planned
maintenance, predictive maintenance, and plant shut
down for maintenance. SAP offers embedded IoT (Internet
of Things) using sensors connected to plant equipment
and software, within its Business Technology Platform.
SAP Plant Maintenance can be used with Amazon’s AWS
IoT to accomplish predictive maintenance and operational
cost savings.
Quality Management (SAP QM)
The SAP Quality Management module is used to
accomplish quality planning, quality inspection, and
quality control. You can create quality certificates and get
quality notifications for exceptions handling. An
impressive capability of the Quality Management module
is that it can be used to implement a quality system that
reaches ISO 9000 goals.
Quality Management integrates with other SAP modules,
including Materials Management (MM), Sales and
Distribution (SD), and Production Planning (PP). And
Quality Management works with cost accounting data
within the SAP ERP system.
Investment Management (SAP IM)
The SAP Investment Management module in ERP Central
Component (ECC) is used to plan, budget for, finance, and
manage investments projects, including capital
expenditures, R&D, maintenance projects, establishing
new markets, and employee training.