01 · What is SAP?
What you’ll learn
Learn how information flows through a company, how SAP differs from ERP, and what the people who work with SAP do.
1. Explain the difference between SAP and ERP.
2. Follow an order as it moves between teams.
3. Distinguish between modules and between the roles people play.
Are SAP and ERP the same thing?
ERP stands for enterprise resource planning. It is an approach to business software that connects sales, purchasing, inventory, production and finance. SAP is a software company that develops products in this field. When people say “we use SAP,” they usually mean one of SAP’s business applications or ERP products. ERP is a category, and SAP is one of the companies that supplies it. Other companies also make ERP software, and SAP’s portfolio extends beyond ERP.
• ERP describes the overall approach.
• SAP is a software provider.
• SAP ERP and SAP S/4HANA are product families.
Why does a company need a shared system?
Suppose sales records orders in one file, the warehouse keeps stock figures in another, and finance stores invoices somewhere else. Each team can update the same information differently. Sales might see more stock than the warehouse actually holds. ERP lets teams use shared definitions and linked transaction records. The software alone cannot guarantee good data. Someone has to enter the correct product, quantity and date, and responsibilities need to be clear. With an integrated system, other teams can trace what one team has done. People can have different roles and permissions without needing to edit every record.
Sales → Inventory → Finance
• Shared product and customer definitions
• Traceable links between transactions
• Access and responsibilities based on permissions
Example: an order for coffee machines
A customer wants ten coffee machines. Sales enters the customer, product, quantity and required date on the order. The next step is to check whether the order can be filled. If enough machines are in stock, shipping can prepare the delivery. If stock falls short, purchasing or production may need to cover the difference. Delivery and billing records link back to the sale, and finance tracks the payment. This is a teaching example. Companies can use different steps, and a sales order does not automatically generate a purchase order in every case. Follow the customer’s request as it passes from one team to the next.
• Start with the customer, product, quantity and date.
• Decide whether to deliver from stock or obtain more units.
• Track delivery, invoicing and payment.
How do modules work together?
Modules focus on business functions. SD covers sales and distribution, MM handles materials and purchasing, PP covers production planning, and PM handles maintenance. FI deals with financial accounting, CO with management accounting and cost tracking, and QM with quality management. Think of a repair. Its spare parts may involve MM, its labor costs may involve CO, and a breakdown that stops production may affect PP. The applications and module names in a real system can vary by product version. Understanding the relationships between the processes will serve you across versions.
• SD / MM: sales, materials and purchasing
• PP / PM / QM: production, maintenance and quality
• FI / CO: accounting and costs
Business users, key users and consultants
Business users carry out everyday tasks. They create orders, post stock movements or track maintenance work. Key users know their business area well and contribute to testing, training and process validation. Consultants analyze the need, design a suitable solution and configure the system within their authority. Technical teams may handle development and integration. A consultant needs to understand why people do their work and in what order, as well as how to use the screens. The scope of each role can vary by company.
• Business users carry out transactions.
• Key users represent the business process.
• Consultants design and configure solutions to meet business needs.
Where should you start learning?
Start by learning to navigate the screens, recognize basic records and follow one workflow. Then explore an area that fits your interests and experience. In PM, a good starting point is the relationship between equipment, organizational assignments, work centers, notifications and maintenance orders. You do not have to master every module. Learn how neighboring processes affect your work. Someone may use several modules daily without knowing how to configure all of them. Support work often focuses on resolving existing problems, while project work can involve new implementations or changes.
• 1. Learn the main screens and transaction codes.
• 2. Follow a business process from beginning to end.
• 3. Practice using and configuring the relevant module.
Try it yourself
1. A customer wants ten units and there are six in stock. Which teams might get involved, and why?
2. Explain the difference between SAP and ERP in one sentence.
3. How does the role of someone who enters orders every day differ from that of someone who configures the order process?
Answer key
1. Sales clarifies the request and date. The warehouse confirms the available stock. Purchasing or production may cover the shortfall. Finance becomes involved as delivery and invoicing progress. The exact flow depends on the company’s setup.
2. ERP is a software category and an approach to business processes. SAP is a company that offers products in that field.
3. The first person is a business user. The second is usually a consultant or an authorized in-house SAP specialist.
Short glossary
ERP: enterprise resource planning
Module: a group of functions for a particular business area
Transaction: a function or operation carried out in the system
Configuration: adapting the system to business requirements
Key user: an experienced user who represents a business process
Sources and next step
Instructor: Enes Alku, SAP PM / PP. The screenshots come from the corresponding ERPHub lesson. Screens can vary with the SAP version, permissions and company-specific configuration.