SAP ERP - Made Simple

I recently completed an end-to-end integration of a SAP suite in a large construction equipment manufacturing company and after being regaled by thousands of requests and questions which I answered in the most technical of ways to assure absolute understanding, I realized that I could have answered in simple terms by just explaining what SAP ERP is. (Basically, after starting to explain in depth about certain features, the stakeholder would go all glassy eyed, I guess he/she was thinking about anything but what I was explaining). That way I would have saved myself a lot of time and energy which I could have devoted to actual architectural work.
Many ERP users sometimes get confused between different ERP systems. Amongst them is SAP ERP which incorporates a number of modules and submodules that make up the ERP system as a whole and enable SAP consultant a more fluid environment to suit a wider range of customer types.
SAP ERP might seem confusing at first since they present a lot of modules, of which some are not apparently directly related to the ERP purpose. So let's start with the basics.
A quick introduction to Databases, a database is basically a table made up of columns (fields) and rows (items). The item will decide what fields are necessary. All databases require identifiers, and in some instances require unique identifiers with no duplicates, such as an ID number. When more than one database is used, and there are links between two databases we call this relational database, and the management system is called a Relational Database Management System, this is RDBMS. (There are now graphical databases but we will not discuss this here.)
The best way to realize or visualize a database is to look at an Excel sheet, where the columns would represent the specific fields and the rows would represent the various items populating the sheet. Excel offers any number of sheets or tables, and when you link one table to another, this would be the relational database function.
SAP databases are identical to all databases, they are comprised of fields and columns. They create indexes for quick access to specific important data. SAP is basically an environment created around a database that enables the end user to input and access all their relevant information in an easy to use way. The difference between SAP and other ERP systems is the way the databases are managed, the suites of professions that SAP has created over time and the constant solutions SAP develops as more and more technologies and professions evolve.
The basics: (SAP Physical Architecture)
There are four tiers in a SAP system;
Tier 1: The database servers on which databases are stored and operated by operating systems Here sits the core elements of SAP. Client stakeholders do not have access to the database server, this is reserved for the company’s IT and SAP consultants.
Tier 2: The inter-relational platforms (on site server) that exist between the user and the database server. This is a server that houses the SAP modules which are managed and monitored by the main platform which is SAP NetWeaver. Other technical SAP modules sit here. This tier is also reserved for the company’s IT and SAP consultants.
Tier 3: The user interface or GUI, this sits on individual PC’s and each PC might have a different GUI, GUI’s are individual, each employee has access to different aspects of the SAP system. These are the access points for all the company’s stakeholders.
Tier 4: SAP Cloud and SAP Mobile, which is basically a SAP portal allowing global access via the internet. SAP cloud is a technical application allowing access to all the SAP features. SAP Mobile is the interface with a mobile unit.
Note: No matter what solution you are seeking, All SAP solutions (Even Business one) include the NetWeaver Platform that houses the SAP Basis suite.
Here is a comprehensive list of SAP modules based on their direct (functional) or indirect (technical) purpose.
Technical Modules
SAP NetWeaver
SAP NetWeaver is a platform on which sits the SAP Basis applications: ABAP Workbench (SE80), SAP NetWeaver Developer Studio (NWDS) based on Eclipse for most of the Java part of the technology (Web Dynpro for Java, JEE, Java Dictionary, portal applications etc.), SAP NetWeaver Development Infrastructure (NWDI) and Visual Composer. (Source: https://wiki.scn.sap.com/wiki/display/WHP/Home)
SAP Basis (Business Application Software Integrated solution)
SAP Basis is now a component of the NetWeaver platform, Aliases include Application Server Technology or Web Application Server. (Confused?) Let’s make it simple:
SAP Basis includes implementing, configuring, monitoring, tuning, and troubleshooting the SAP technical environment. It also schedules and executes the SAP transport system. SAP Basis is responsible for the installation, upgrade, and maintenance of SAP systems. It is also the platform for the design of interfaces between SAP and external systems, optimize and analyze performance issues, design architectures of the landscape.
Advanced Business Application Programming (SAP ABAP)
All SAP applications use ABAP, it is the default programming language for all the SAP interfaces. SAP also uses JAVA. Therefore, a programming environment was created for SAP consultants and SAP programmers to access in order to make tailor-made changes that suit each customer’s specific requirements.
High-Performance Analytic Appliance (SAP HANA)
SAP HANA is basically a memory management system enables transactions to be performed using the servers RAM rather then disk-space memory. This means that the system is using is an in-memory database, and platform which can be deployed on-premises or cloud. SAP HANA is a combination of hardware and software, which integrates different components like SAP HANA Database, SAP SLT (System Landscape Transformation) Replication server, SAP HANA Direct Extractor connection and Sybase replication technology. SAP HANA Database runs on SUSE Linux Enterprise Server and builds on C++ Language.
Other Technical SAP modules include
SAP Security,
Information Systems Management (SAP IS),
Customer Relationship Management (SAP CRM Technical module),
Exchange Infrastructure (SAP XI),
SAP Solution Manager.
Internet Transaction Server (ITS)
I will not discuss them here since they are tools for the SAP technical team to enhance performance and integration of certain systems.
Functional Modules
SAP developed many modules, which can be integrated separately or as part of a suite of modules. Each module is a parent with a number of submodules (children) that offer specific tasks or methods to the parent module. A group of modules will make up a suite which is usually a full solution for most businesses. However, taking into account the size and scope of a business, SAP enables flexibility when applying SAP architecture to a business solution.
I will list the SAP suites and then list the SAP modules and their subcomponents.
SAP suites

SAP Enterprise Resource Planning SAP (SAP ERP)

SAP Customer Relationship Management (SAP CRM)

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SAP Supply Chain Management (SAP SCM)
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SAP Supplier Relationship Management (SAP SRM)

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SAP Product Life-cycle
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SAP HANA (High-Performance Analytic Appliance)

Government, Risk, and Compliance (SAP GRC)

SAP Strategic Enterprise Management (SAP SEM)

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SAP Compliance Management for SOA
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SAP Suites are basically packages that SAP created, housing different modules that conform to the standard uses of the suite as per SAP customer experience. This does not mean that you cannot add other modules to the suite or have duplicate modules in two suites.
SAP modules (and submodules, and in some cases sub-sub modules) Whilst the original list was going to be basically a list of titles, I decided to show you the complexity of the submodules, so in SAP SD I added a full list of submodules and explanations and in SAP MM I added the (§) Table titles for the submodules, which shows you the next level of modality, note that each level has a specific identifier, for instance, if you were to see this string: SAP-ERP-MM-PUR-EKAN, it would mean SAP, the platform, ERP, the system, MM-the module-PUR-the submodule, EKAN-the Vendor Address Table. Under a table comes columns which represent fields of specific data such as Vendor Name, or Date of Purchase etc.
Human Resource Management (SAP HRM), also known as Human Resource (HR)
Organizational Management
Personnel Administration
Recruitment
Payroll
Travel Management
Personnel Management
Time Management
Compensation Management
Training and Event management
Wages
Personnel Development
Workforce Administration
Production Planning (SAP PP)
Sales and Production Planning
Demand Management
Material Requirement Planning
Capacity Requirement Planning
Bills of material
Production Orders
Routing
Work Center
Shop floor control
Material Management (SAP MM)
Purchasing (MM-PUR)
§ EKPO - Purchasing Document Item
§ EKKO - Purchasing Document Header
§ EBAN - Purchase Requisition
§ EKBE - History per Purchasing Document
§ EKET - Scheduling Agreement Schedule Lines
§ EINE - Purchasing Info Record: Purchasing Organization Data
§ EKKN - Account Assignment in Purchasing Document
§ EINA - Purchasing Info Record: General Data
§ EKES - Vendor Confirmations
§ EBKN - Purchase Requisition Account Assignment
§ EORD - Purchasing Source List
§ T024 - Purchasing Groups
§ EKBZ - History per Purchasing Document: Delivery Costs
§ AMPL - Table of Approved Manufacturer Parts
§ EKAN - Vendor Address: Purchasing Document
Inventory Management (MM-IM)
Material Planning
Invoice Verification
Material Requirement Planning (MRP)
Warehouse Management
Vendor Valuation
Financial Supply Chain Management (SAP FSCM)
Credit Management
Cash & Liquidity Management
Treasure and Risk Management
Collections Management
Payments
Dispute management
Sales and Distribution (SAP SD)
(Source: https://wiki.scn.sap.com/wiki/display/ABAP/What+is+SAP+SD-+Sales+and+Distribution+Module)
SAP-SD-MD (Master Data): SAP SD user has a master data that tracks each and every transaction within the data. The SD master data comprises of both customer and material data, record of price conditions, and credit management. This module includes processes of order and cash.
SAP-SD-BF (Basic Functions): SAP SD configuration results in an effective process across all basic functions involved in sales and distribution area. Here, examples of the basic functions can be pricing, output, etc. The amount of pricing used for a particular sale and the output result from the same and so on.
SAP-SD-SLS (Sales): As the term suggests, SAP SD sales handle the minute details of every sale that is taking place. From recording the product to customer details, pricing, feedback and the sales process, everything is tracked through this module.
SAP-SD-SHP (Shipping): Sales are closely related to shipping and delivery. A Product needs to be rightly shipped and delivered to the customer. There are different methods of shipping and this module tracks each product used for each delivery. The entire process from being shipped to delivered or return back is recorded through this module.
SAP-SD-TBA (Transportation): This component works hand in hand with the shipping. The mode of transportation for each product differs and this module keeps track of all the transportation data.
SAP-SD-FTT (Foreign Trade): This component helps a department to handle the data related to foreign trade including both imported and exported products. This module works best for enterprises involved with trade across nations.
SAP-SD-BIL (Billing): Billing is the key part in any transaction. Consumers prevail the choice of either paying through online media or else through cash on delivery. This particular module keeps track of all the billing data in an appropriate manner.
SAP-SD-CAS (Sales Support): From selling a product to maintaining it for a process, customers constantly interact with the sales team. The data exchanged between the sales team and customers while delivering support for a product is recorded and reported through this module.
SAP SD EDI (Electronic Data Interface)
SAP SD BOM (Bill of Materials)
SAP SD POS (Point of Sale)
SAP SD IS (Information Systems)
Project System (SAP PS)
Project Planning
Project Preparation
Project Tracking
Project Reporting
Project Costs
WBS Elements
Financial Accounting and Controlling (SAP FICO)
SAP General Ledger Accounting
SAP Accounts Payable
SAP Accounts Receivable
SAP Bank Accounting
Budgeting and Monitoring
Cash management
SAP Asset Accounting
SAP Funds management
SAP Treasury Management
SAP Special Purpose Ledger
Withholding Tax (TDS)
SAP cost element accounting
Cost center Accounting
SAP Product Cost Accounting
SAP CO internal orders
SAP Profit Center Accounting
SAP Profitability Analysis
Plant Maintenance (SAP PM)
Maintenance planning
Preventive Planning
Service Management
Predictive Maintenance
Project Maintenance
Quality Management (SAP QM)
Planning
Process Inspections
Notifications of Quality
Quality Control
Test Equipment
Quality certifications
General Functions
SAP Advanced Planning and Optimization (SAP APO)
Salesforce Automation (SFA)
SAP Business Warehouse (SAP BW)
As you can see, there is a lot of information under every title, in fact, we can look at SAP as we look at the human body. The base of any SAP application is the customer (parents that create the child), they set the core genetic code for what will eventually become the SAP Solution. In every SAP solution, there will be a database and the application platform (NetWeaver) and technical modules, the language interface (ABAP), the function modules, and the final look and feel (GUI). When compared to a human body, C++ is the genetic code (This is the programing language that created ABAP and NetWeaver and all the platforms) NetWeaver and the technical modules are the brain and nervous system, ABAP is the language, the Database is the heart, the modules are the skeleton and muscles, and the face is the GUI.
When designing a SAP solution, the SAP architect will first of all learn all about the customer’s needs, their size and scope and take into account the customers vision for the future. When designing a particular module, certain aspects may be changed easily, such as GUI. Constraints and specific algorithmic limits and standards can be set for automatic use, this enables the SAP ERP system to analyze and produce reports that meet with the customer’s requirements. For instance, once customer might be using Lean manufacturing without Six Sigma, another might use Six Sigma with JIT and another might be a retailer that has no manufacturing processes but a vast supply chain import and distribution needs which would point the SAP architect to SAP for Retail. Which would require solutions such as SAP Merchandising for Retail and SAP MAP (Merchandising and Assortment Planning) which is made up of various SAP modules and submodules in a way that complements retail.
SAP Solutions based on corporate size, structure and sector.
SAP can produce a large number of solutions based on each company’s type, such as Finance, Banking, Insurance, Accountancy, Law, Healthcare, Hospitality, Project management, Government, Charities, Recruitment. The manufacturing sector will include aerospace, FMCG, automotive, medical, pharmaceutical, packaging etc., software, hardware, electro-optical etc. Trade will include Retail, Logistics, Energy and then there is Construction, Mining, Communications etc.
While there are vast differences between each sector, there are also common denominators, they include the supply chain process (including distribution), the financial and human resources process, marketing and sales process and project management.
The variances between each common denominator are reduced when dealing with similar industries within a sector, for instance the aerospace manufacturing industry is similar to the medical device, the main difference is in regulatory requirements which are basically quality control methods rather than actual processing methods. The food industry has similarities with the pharmaceutical industry in that it is also highly regulated, especially baby foods, and is shelf life dependent. The services sector has banking, investments, insurance, basically variations of control over customer finances and investment systems. Lawyers and accountants provide project based services. Supermarkets and fashion houses are all middle processing units, they must buy their materials and then distribute them, they are fast moving inventory intensive systems. Energy and construction are all micro geo-physical manufacturing units, basically small assembly factories set up to produce a final product but utilize different project management tools since they are not fixed manufacturing sites. The list goes on.
SAP basically takes modules and adapts them to meet every client’s need, from small to large. A large complex global company might need every SAP solution, whilst a small local trader might only need two modules.
Conclusions
Whilst SAP might seem to be rigid, and technically heavy, it is in fact the exact opposite. It is highly versatile, enabling constant changes and upgrades to cater for every need and advance. it offers a complete package that will give a full solution. SAP has a solution for both large enterprises and small businesses. With large enterprises, SAP becomes extremely versatile since these companies employ IT divisions and have both in-house SAP specialists and employ SAP consultants that can deal with all the complex issues of supporting a large SAP solution. However, for small enterprises, SAP has introducing SAP Business One and SAP cloud, which enables quick access to all of SAP’s features from a remote site. This allows you to decide if you want a dedicated server or be a sharing partner in a server, or if you want Business One (a small business solution from SAP) in-house.