SAP Overview and Modules

Jul 17, 2025

View transcript

Overview

This lecture introduces SAP, its importance for multinational companies, main modules (with a focus on the FICO module), and key SAP roles.

Introduction to SAP

  • SAP stands for Systems, Applications, and Products in Data Processing.
  • SAP is an accounting and business management software used by large multinational companies.
  • Compared to Tally and Busy, SAP is more complex and versatile.

Importance and Usage of SAP

  • SAP is widely used in big companies due to its ability to integrate and manage various business processes.
  • It helps in handling finance, materials, sales, employees, and customer relationships through different modules.

Main SAP Modules

  • FI (Financial Accounting): Manages financial accounting and reporting.
  • CO (Controlling): Manages cost and revenue control for business processes.
  • MM (Material Management): Oversees procurement, material handling, and vendor evaluation.
  • SD (Sales and Distribution): Handles order management, pricing, delivery, and billing.
  • HR (Human Resources): Manages personnel administration, payroll, and time management.
  • QM (Quality Management): Oversees quality inspection and management.
  • WM (Warehouse Management): Handles warehouse operations.
  • CRM (Customer Relationship Management): Manages customer data, leads, and relationships.
  • SRM (Supplier Relationship Management): Manages supplier interactions and procurement.

SAP FICO Module

  • SAP FICO combines Finance (FI) and Controlling (CO) modules.
  • FI records accounting entries and prepares financial statements and reports for external and internal use.
  • CO manages cost centers, allocations, and efficiency in cost management.
  • FI module includes sub-modules: Accounts Payable (vendor transactions), Accounts Receivable (customer transactions), Asset Accounting (asset records), and Bank Accounting (bank transactions).
  • General Ledger (GL) integrates all sub-modules and is used for creating financial statements and trial balances.

SAP Roles: End User and Consultant

  • End users perform daily transactions using SAP as configured.
  • Consultants configure SAP based on business requirements and need prior end-user experience.
  • Gaining experience as an end user is essential before becoming a consultant.

Skills and Recommendations

  • To succeed in multinational companies, combine SAP knowledge with strong accounting, communication, academic background, and advanced Excel skills.

Key Terms & Definitions

  • SAP — Systems, Applications, and Products in Data Processing.
  • FICO — Finance (FI) and Controlling (CO) modules in SAP.
  • General Ledger (GL) — Central module integrating financial information from all sub-modules.
  • Accounts Payable — Sub-module for supplier transactions.
  • Accounts Receivable — Sub-module for customer transactions.

Action Items / Next Steps

  • Learn SAP, especially if you have 1-3 years’ work experience in accounting or related fields.
  • Improve communication skills, accounting knowledge, and learn advanced Excel for better job prospects in MNCs.

Full transcript