Enterprise resource planning (ERP) is business management software that allows an organization to use a system of integrated applications in order to manage their business. In other words, Enterprise resource planning (ERP) systems incorporate internal and external management information across an entire organization integrating all facets of operations, including development, manufacturing, sales and marketing.
The information made available through an ERP system provides visibility for key performance indicators (KPIs) required for meeting corporate objectives. The enterprise resource planning (ERP) functionality in SAP is designed to meet the needs of organizations with features in areas including
1- Accounting and financials
2- Sales and service
3- Procurement and logistics execution
4- Inventory management
5- Human capital management
6- Product development and manufacturing
7- Reporting and analytics
SAP\'s ERP solution includes a number of functional modules, which support transactions to execute key business processes
SAP Quality Management (QM) assures that products meet stringent regulatory standards, are safe and uniform, and meet company product specifications. SAP QM processes are thoroughly integrated into the manufacturing process.
Production Planning consists of all master data, system configuration, and transactions to complete the Plan to produce process.
The Sales and Distribution (SAP SD) consists of all master data, system configuration, and transactions to complete the Order to Cash process.
The Materials Management module (SAP MM) consists of all master data, system configuration, and transactions to complete the Procure to pay process. This process map spans from MRP generated procurement proposals through final invoice receipt and verification.
The purpose of the Controlling (CO) module in SAP is to provide organizations with a method of slicing and dicing data to view costs from an internal management perspective and provide a view of profitability beyond that of basic financial reporting.
The Financial Accounting (SAP FI) module in SAP is designed to capture organizations business transactions in a manner that will satisfy external reporting requirements. This module is also very supportive to make available financial responsibility in terms of creating General Ledger Account and chart of accounts in large scale enterprises in Indian and abroad.