SAP Tutorial For Beginners – What is SAP ? – Step by Step Guide

In the ERP & IT industry, SAP has the largest market share of any unparalleled premium ERP systems & commands. These basic tutorials introduce the SAP ERP, Business Suite, SAP Modules, Interface, and SAP Consultant method.

What is SAP?

SAP stands for Device Software and Data Processing Devices. SAP is also, by extension, the name of the ERP (Enterprise Resource Planning) program and the business name. SAP Software is a multinational European company that was founded by Wellenreuther, Hopp, Hector, Plattner, and Tschira in 1972. They build company processes and customer relationship management software solutions.

What is SAP ERP? Why is it Required?

The following video will explain how an organization needs an ERP program like SAP

The very fundamental question is why Enterprise Resource Planning, also called ERP, is appropriate for any beginners? Let’s look at this usual business situation, to answer this.

Suppose a customer confronts a sales team asking for a specific product. The sales team gets in touch with the distribution department to test stock availability. The sales team found out to their shock, that the product is out of stock. So, they have to add an SAP ERP tool next time this doesn’t happen.

Before we see in-depth what ERP is and how ERP will aid with the business process, we should explain how various departments are involved in the entire business cycle, from sourcing the raw material – to making the goods – to supplying the finished items to the consumer.

Here’s the whole cycle that every business entity follows.

Customer contacts sales team to test product availability
Sales team approaches the Procurement department to verify whether the commodity is available
In the event the product is out of stock, the sales staff must contact the Production Planning Department to deliver the product
The production planning team reviews the availability of raw materials with the Procurement department
If the raw material is not available in inventory, the Production Planning team must purchase the Vendors ‘raw material
Project preparation then forward the raw materials to the execution of the shop floor for actual production
The Shop Floor Team sends the items to the Sales team until they are ready
Sales Team who in turn deliver it to the client
The sales team is updating the finances with revenues generated by the product sale. The development planning department reviews the finance with payments for the raw materials to be made to various vendors.
For any human-resource-related problem, both divisions contact HR.

For any manufacturing company, this is a standard business operation. It would be some primary inferences that one could draw from the scenario.

It has various divisions and business units
These departments or business units communicate and exchange data continuously among themselves
Any organization’s performance lies within these divisions inefficient contact and data sharing, as well as
related third parties such as suppliers, outsourcers, and consumers.

Centered on how the correspondence and the sharing of data are handled. Enterprise networks can be defined simply as

Decentralized System

Let’s look first at Decentralized Structure, in an organization with a Decentralized Data Management Framework. There are two big problems-

Data is maintained locally at the individual departments
Departments do not have access to information or data from other departments

To recognize issues that occur as a result of the unified Enterprise Management Process, the same business process may be analyzed again. The consumer asks the sales team for a product but, on an urgent basis, he wants the product this time around.

Since it is a decentralized operation, the Sales Team has no real-time access to production availability details. And they approach the Stock department to test the product’s availability. This method takes time, and the customer selects another vendor leading to sales loss and disappointment with the customers.

Today, assume the product is out of stock and the Sales Department is asking the Development Planning team to develop the product for use in the future. The production planning team checks if the necessary raw materials are available.

In a decentralized structure, both the Production Planning and the Inventory Department store details about the raw materials separately. And the cost of data maintenance (in this case, Raw Material) is increasing.

The knowledge of raw materials is available in two separate Procurement departments as well as in Production Planning. When sales team checks a specific raw material needed to produce the product, it reveals that the raw material is available as per the inventory, but the raw material is out of stock according to the production planning team’s database.

So, they are moving ahead, purchasing the raw material. And the content goes up, as well as the cost of the production.

When the raw material is available the department of the shop floor immediately discovers that they are short of staff. They approach HR, which in effect employs temporary workers at levels above the market. And the cost of LABOR rises.

The Department of Production Planning refuses to educate the department of finance on the supplies it has acquired. The finance department defaults on the vendor’s payment deadline which causes the company to lose its credibility and also invites a potential legal action to take.

These are just a few of the many problems with decentralized systems.

Some major problems with the decentralized system are –

Numerous disparate information systems created individually over time which are difficult to maintain
Integrating the data is time and money consuming
Inconsistencies and duplication of data
Lack of timely information leads to customer dissatisfaction, loss of revenue and reputation
High Inventory, material, and human resource cost.

There are some big disadvantages that we need to find a solution. Well, in Centralized Structures, i.e. ERP, the answer lies.

Centralized System

In a company, with a Centralized System of Information and Data Management.

1) Data is maintained at a central location and is shared with various departments

2) Departments have access to information or data from other Departments

Let’s look again at the same business method and see how a Centralized Enterprise System helps and solve the challenges that a Decentralized Enterprise System poses.

In this case, all departments update a Central Information System.

If the Customer asks the sales team to make an immediate purchase of a drug. The Sales Team has real-time access to the items in stock that are monitored in the Centralized System by the Inventory Department
Sales team respond on time to customer request, resulting in increased sales and customer delight.
When processing is needed, the Sales Team must update the Centralized Server to keep the entire department aware of the status of the product.
The Department of Production Planning is auto-updated for specifications by the Centralized Database. Production Planning Team tests the availability of the appropriate raw materials through the Central Database, which is maintained by the Department of Inventories.
Therefore, replication of data is avoided, and correct data is given. The Shop Floor Team periodically updates their Man Power Status in the Central Database which the HR department can access.
HR team begins the recruitment process with significant lead time to hire a suitable candidate at market price in case of a shortage of workforce. And the cost of labor goes down.
Although vendors should send their invoices directly to the Central Enterprise Network, the finance department should access it. Payments are thus rendered on time, and future legal action is prevented
SAP software is a Centralised System type. SAP Systems are the most commonly used applications on ERP.

Key benefits of the centralized system are:

Eliminates data replication, discontinuity, and redundancy
Provides real-time feedback through agencies.
SAP System gives control over the different business processes
Increases profitability, enhances inventory control, encourages efficiency, lowers material costs, efficient control of human capital, decreased overheads increase income
Improved contact with clients, and improved performance. This also improves customer satisfaction
A centralized management system for businesses is thus necessary.
SAP Software is a centralized management system for companies, also known as Enterprise Resource Planning.
The SAP acronym means Computer Software and Data Processing Devices

What is SAP Business Suite?

SAP Business Suite incorporates fully integrated software, such as SAP Customer Relationship Management (CRM), SAP Enterprise Resource Planning (ERP), SAP Product Lifecycle Management (PLM), SAP Supplier Relationship Management (SRM), and SAP Supply Chain Management (SCM) modules.

Most people compare their ERP offerings to SAP. Yet SAP also provides a range of solutions to suit an organization’s diverse needs. Let’s look at these-

SAP HANA:– High-Performance Computational Appliance uses in-memory computing, a revolutionary technology that allows extremely big, unaggregated data to be processed at unparalleled speeds in local memory (vs. disk-based database) allowing complex real-time data analytics, plans, and simulations.

SAP Convergent Charging:- SAP Convergent Charging offers a high volume production value and charge solution in the service industries. It offers capabilities in pricing design, high-performance ranking, and convergent balance management.

Customer Relationship Management:- Unlike other CRM applications, the SAP Customer Relationship Management (SAP CRM) program, part of the SAP Business Suite, not only lets you solve the short-term imperatives – cut costs and improve the decision-making capacity – but can also help the organization develop unique capabilities to compete successfully in the long term.

Enterprise resource planning:- The global marketplace needs a solid base to compete and win. The SAP ERP framework effectively serves the essential functions of your business processes and activities and is customized to your industry’s specific needs such as SAP ERP Financials, SAP ERP Human Capital Management, SAP ERP Operations, SAP ERP Corporate Services.

SAP Climate, Health, and Safety Management:- It supports environmental, workplace and product protection procedures, compliance with legislation and corporate responsibility. It is achieved by integrating corporate regulations, legislation, and financial, health, and safety resources into global human capital, logistics, manufacturing, and finance business processes.

SAP Global Batch Traceability:- It allows you to trace tracked items directly, for instance, a batch, in both SAP and non-SAP systems. In the case of a recall or suspension, SAP GBT guarantees that appropriate reporting deadlines are adhered to in a good time. This also lets you reduce the exposure to costs and corporate risk. You can also, for example, evaluate multiple objects, collections, in one sprint.

SAP Product Life Cycle Management:- Surviving in an ever-changing global climate, designing and delivering new goods and services that differentiate the market is what separates the business from the competition. The framework for SAP Product Lifecycle Management (SAP PLM) offers 360-degree support for all product-related processes – from the first product concept from production to product operation.

SAP Supplier Life Cycle Management:- SAP Supplier Lifecycle Management provides a comprehensive approach to supplier relationship management. It deals with the customer base as a whole such that the correct product balance is continually decided. Does this protect individual suppliers ‘ lifecycles? From onboarding through to ongoing growth.

Supply Chain Management:- You are under immense pressure to cut costs while increasing creativity and enhancing customer satisfaction and reactivity. SAP Supply Chain Management (SAP SCM) facilitates the communication, planning, implementation, and coordination of the entire supply network, allowing you to adapt the supply chain processes to a dynamic environment that is continuously evolving.

Supplier Relationship Management:- With SAP SRM, you can analyze and predict purchasing behavior, shorten procurement periods, and work in real-time with your partners. This allows you to establish long-term partnerships with all those suppliers that have proved to be trustworthy partners.

Governance, danger, and compliance:- Danger is inevitable, however manageable. Enterprises should strategically align risk and opportunity with governance, risk, and enforcement (GRC).
Sales and operations planning:- SAP Sales and Operations Planning helps you to meet the long-term potential demand optimally and profitably. This process typically repeats every month and involves a large number of participants including sales, marketing, finance, demand planning, and supply chain planning.

SAP Transportation Management:- It helps you in all activities related to physical goods transport from one place to another.

Extended Warehouse Management:- SAP Extended Warehouse Management provides you with the ability to map the entire warehouse complex in detail, down to the storage bin level in the program. This not only gives you a summary of the overall quantity of a commodity in the warehouse but you can also still see precisely where a specific commodity is in your warehouse complex at any time. With EWM, you can automate the use of different storage bins and stock movements, and combine product storage from multiple plants in randomly controlled warehouses.

How to Choose the Best SAP Module for your career?

We also receive emails along the way … “I’ve graduated from XYZ and have work experience with ABC. Could you recommend an SAP module for me?” It’s hard to answer all your questions, so we’ve decided to produce a guide to help you select the right module.

When selecting an SAP package you need to consider three factors

Job Opportunities in the chosen Module
Your academic background and work experience
Your Career / Life Goals

Let’s look at them one by one.

Job Opportunities

SAP has 25 add-on and modules. Refer to this list of all SAP modules But not every company implements all 25 SAP modules. The systems which are mostly applied are the ones with the most job opportunities.

We recommend that you limit your choice of SAP modules to those that are requested

SAP FI
SAP MM
SAP SD
SAP PP
SAP HCM
SAP Basis/ ABAP – for people with a technical bent

Besides the modules above, you can also find doing a career in other SAP add-on modules like HOT on the market

SAP CRM (Customer Relationship Management)
SAP BI also knew as SAP BW (Business Warehouse)

Job experience and academic history

Once you’ve narrowed your options to the modules above, you’ll need to factor in your education and work experience (if any) to further trim the choices.

For example, if you’re an MBA in HR, choosing the SAP FI module doesn’t make sense. The SAP HCM module is more suitable for you. Working in the HCM module gives you a competitive advantage over SAP FI where you will be working as a fresher.

Your career and life goals.

This is often the most ignored element while the most significant. When you pick an SAP module, do you have to think hard if you want to work first on SAP?

You need to make your choice a factor in your inclination, ambition, aptitude, and career goals.

You have to wonder if you’re looking for a “career” in SAP or just a job?

Using the guide will help you select your own best sap app. Good Luck:)