SAP Functional Modules List with Basic Understanding

SAP Functional Modules

In the previous blog with discussed about the difference between SAP Technical and Functional Modules, where we discussed about some Functional Modules too. Here, we are going to discuss those Modules in details, Let's start:

SAP Financial Accounting (FI)
SAP FI module as the term suggests deals in managing financial transactions within enterprises. This financial accounting module helps employees to manage data involved in any financial and business transactions in a unified system. This module functions very well for reporting requirements. The SAP FI module is very flexible and functions well in any type of economic situation. Be it a smaller organization or a larger organization; SAP implementation helps in consolidating data for diverse business transactions and legal requirements. Financial Accounting module helps one to get the real-time financial position of an enterprise in the market. SAP FI incorporates with other SAP modules such as SAP SD, SAP MM, SAP PP, Payroll, and more for better work results.


SAP Controlling (CO)
SAP CO module is another important SAP modules offered to enterprises. The controlling module supports the process works of planning, reporting, and monitoring operations of businesses. It involves methods to view and organize costs that are required for financial reporting. The controlling module enables one to plan, track, perform, and report about costs. Controlling includes managing and configuring master data that covers cost elements, cost centers, profit centers, internal orders, and functional area, and so on.

Note: If we integrate SAP FI and CO together, it will become SAP FICO.


SAP Sales and Distribution (SD)
SAP SD modules deal in managing all transactions ranging from inquiries, proposals, quotations, pricing, and more. The sales and distribution module helps greatly in inventory control and management. SAP SD module consists of master data, system configuration, and transactions.  Some of the sub-components of the SAP SD module are master data, sales support, sales, shipping and transportation, billing, credit management, sales information system, and so on.


SAP Production Planning (PP)
SAP PP module is another important module that includes software designed specifically for production planning and management. This module also consists of master data, system configuration, and transactions in order to accomplish the plan procedure for production. SAP PP module collaborate with master data, sales, and operations planning, distribution resource planning, material requirements planning, product cost planning, and so on while working towards production management in enterprises.


SAP Materials Management (MM)
SAP MM module as the term suggests manages materials required, processed, and produced in enterprises. Different types of procurement processes are managed with this system. Some of the popular sub-components in SAP MM module are vendor master data, consumption-based planning, purchasing, inventory management, invoice verification, and so on.


SAP Quality Management (QM)
SAP QM module helps in the management of quality in productions across processes in an organization. This quality management module helps an organization to accelerate their business by adopting a structured and functional way of managing quality in different processes. SAP QM module collaborates in procurement and sales, production, planning, inspection, notification, control, audit management, and so on.


SAP Plant Maintenance (PM)
The SAP Plant Maintenance (PM) application component provides you with a comprehensive software solution for all maintenance activities that are performed within a company. Supports cost-efficient maintenance methods, such as risk-based maintenance or preventive maintenance, and provides comprehensive outage planning and powerful work order management.


SAP Human Capital Management (HCM)
SAP HR and SAP HCM until Version 4.7 it was called as SAP HR, From the Version 5.0 is changed to SAP HCM - Human Capital Management. SAP HCM module enhances the work process and data management within the HR department of enterprises. Right from hiring a person to evaluating one’s performance, managing promotions, compensations, handling payroll, and other related activities of an HR is processed using this module. The task of managing the details and task flow of the most important resource, i.e., human resource is managed using this SAP ERP HCM module.


SAP Financial Supply Chain Management (FSCM)
SAP Financial Supply Chain Management (FSCM) optimizes the financial and information flows within a company and between business partners. SAP Financial Supply Chain Management contains the following components:

• Treasury and Risk Management (SAP TRM)
• Biller Direct (SAP BD)
• Cash and Liquidity Management (SAP CLM)
• Collections Management (SAP COL)
• Credit Management (SAP CR)
• Dispute Management (SAP DM)
• In-House Cash (SAP IHC)

SAP Project System (SAP PS)
SAP Project System (PS) is an integrated Project Management tool that is used for planning and managing projects and is a crucial part of SAP Enterprise Resource Planning (SAP ERP). SAP PS includes several tools that enable the project management process, such as budgeting, scheduling, materials requisition, and planning.  SAP PS ensures that organization’s business process are to be handled efficiently and quickly. It can handle both small scale and large scale projects of an organization. SAP PS can integrated with other modules of SAP ERP, such as SAP MM, SAP SD, SAP PP etc.


These are the main functional modules used in the market these days . Please let me know your views in the comment section below.