SAP R/3 Functionality
R/3 software allows the integration of all of a company’s business operations in an overall system for planning, controlling and monitoring. Over 1000 ready-made business processes are available, that include best business practices that reflect the experiences, suggestions and requirements of leading companies in a host of industries. New features are continuously being added to releases of R/3.
SAP R/3 System provides an integrated suite of business applications that covers a full range of processes used in almost any business. The main application groupings are:
· Logistics
· Financial/Management Accounting and Reporting
· Human Resources
· Cross-Application Functions
The following sub-sections list the main applications and some of their components.
2.1 Logistics
· Logistics General (LO)
Logistics General integrates the manufacturing and distribution functions for Sales and Distribution, Production Planning, Materials Management, Plant Maintenance and Quality Management. The following components are included:
· Logistics Information System (LO-LIS)
· Master Data (LO-MD)
· Forecast (LO-PR)
· Variant Configuration (LO-VD)
· Engineering Change Management (LO-ECH)
· Materials Management (MM)
A material can also be a person or a service. The MM application supports manufacturing, distribution and service industries:
· Material Requirements Planning (MM-MRP)
· Purchasing (MM-PUR)
· Inventory Management (MM-IM)
· Warehouse Management (MM-WM)
· Invoice Verification (MM-IV)
· Information System (MM-IS)
· Electronic Data Interchange (MM-EDI)
· Sales & Distribution (SD)
This includes sales, shipping, and billing. It actively supports sales and distribution activities with functions for pricing, prompt order processing, and on-time delivery, interactive multilevel variant configuration, and a direct interface to Profitability Analysis and Production.
· Master Data (SD-MD)
· Basic Functions (SD-GF)
· Sales (SD-SLS)
· Shipping (SD-SHP)
· Billing (SD-BIL)
· Sales Support (SD-CAS)
· Information System (SD-IS)
· Electronic Data Interchange (SD-EDI)
· Production Planning (PP)
This involves the planning and control of manufacturing activities, including make-to-order or repetitive manufacturing.
· Basic Data (PP-BD)
· Sales and Operations Planning (PP-SOP)
· Master Planning (PP-MP)
· Capacity Requirements Planning (PP-CRP)
· Material Requirements Planning (PP-MRP)
· Production Orders (PP-SFC)
· Product Costing (PP-PC) (which is also CO-PC Product Costing)
· Kanban/Just-in-Time Production (PP-KAB)
· Repetitive Manufacturing (PP-REM)
· Assembly Orders (PP-ATO)
· Production Planning for Process Industries (PP-PI)
· Plant Data Collection (PP-PDC)
· Information System (PP-IS)
· Quality Management (QM)
This module provides quality planning, inspections, certificates, notification. It monitors, captures, and manages all processes relevant to quality assurance along the entire supply chain, coordinates inspection processing, initiates corrective measures, and integrates laboratory information systems.
· Planing Tools (QM-PT)
· Inspection Processing (QM-IM)
· Quality Control (QM-QC)
· Quality Certificates (QM-CA
· Quality Notifications (QM-QN)
· Plant Maintenance (PM)
The Plant Maintenance module provides planning, control, and processing of scheduled maintenance, inspection, damage-related maintenance, and service management to ensure availability of operational systems, including plants and equipment delivered to customers.
· Equipment and Technical Objects (PM-EQM)
· Preventive Maintenance (PM-PRM)
· Maintenance Order Management (PM-WOC)
· Maintenance Projects (PM-PRO)
· Service Management (PM-SMA)
· Plant Maintenance Information System (PM-IS)
2.2 Accounting
· Financial Accounting (FI)
This application enables the company to publish legally required financial documents, and includes the following modules:
· General Ledger (FI-GL)
· Accounts Receivable (FI-AR)
· Accounts Payable (FI-AP)
· Legal Consolidation (FI-LC)
· Special Purpose Ledger (FI-SL)
· Controlling (CO)
The following modules are integrated with FI and are used to better control a business:
· Overhead Cost Control (CO-OM)
· Product Costing (CO-PC)
· Activity-Based Costing (CO-ABC)
· Sales and Profitability Analysis (CO-PA)
· Project Control (CO-PRO)
· Enterprise Controlling (EC)
· Executive Information System (EC-EIS)
· Business Planning (EC-BP)
· Management Consolidation (EC-MC)
· Profit Center Accounting (EC-PCA)
· Treasury (TR)
The Financial Accounting module provides treasury functions, but the following are more specialized:
· Treasury Management (TR-TM)
· Funds Management (TR-FM)
· Cash Management (TR-CM)
· Market Risk Analyzer (TR-MRM)
· Capital Investment Management (IM)
· Tangible Fixed Assets (IM-FA)
· Financial Investments (IM-FI)
· Project System (PS)
This module accommodates all types of research and development projects. It coordinates and controls all phases of a project, in direct cooperation with Purchasing and Controlling, from quotation to design and approval, to resource management and cost settlement.
· Basic Data (PS-BD)
· Operational Structures (PS-OS)
· Project Planing (PS-PLN)
· Approval (PS-APP)
· Project Execution/Integration (PS-EXE)
· Information System (PS-IS)
2.3 Human Resources (HR)
The Human Resources module includes administration, payroll accounting, shift management, employee attendance, trip costs, training, and recruitment. It provides solutions for planning and managing the company’s human resources, using integrated applications that cover all personnel management tasks and help simplify and speed the processes.
· Personal Planning and Development (HR-PD)
· Organizational Management (PD-OM)
· Seminar and Convention Management (PD-SCM)
· Personnel Development (PD-PD)
· Workforce Planning (PD-WFP)
· Room Reservations Planning (PD-RPL)
· Personnel Administration (HR-PA)
· Employee Management (PA-EMP)
· Benefits (PA-BEN)
· Compensation Administration (PA-COM)
· Applicant Management (PA-APP)
· Time Management (PA-TIM)
· Incentive Wages (PA-INW)
· Travel Expenses (PA-TRV)
· Payroll (PA-PAY)
