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What Does SAP Mean and What Does SAP Abbreviation?

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Many people who don’t know or have never heard of SAP, what they will ask when they hear the word SAP is certain, what is SAP? There must be a lot of these questions, SAP stands for “System Application and Product in Processing” which develops with the aim of helping a company or an organization to conduct its business.

SAP Terms and Their Development

SAP translation from English, SAP ERP which means enterprise resource planning software. SAP applications are among the world’s leading ERP software which is currently being implemented by many companies in Asia. That’s why SAP has become one of the company’s resources that must exist because the price of the SAP application is also classified as very affordable for the company that will use it, ERP will make work easier because the work is automatic, not like it was originally done manually and because of that. ERP role in a company is very important.

Also read: A Brief Overview of SAP and Its Benefits in the Business World

According to Indonesian, SAP stands for system applications and products in data processing, so SAP is a software application or software that is often used by many large companies to run their business and develop their business. There are so many companies in countries in the world that almost 80% have switched to the SAP application and use SAP as well as in Indonesia, many business activities implement it at the price of the sap application which according to them is in accordance with the results obtained. The history of the SAP company itself has continued to develop from the past until now, business processes that include SAP ERP are Operations, Finance, Human Resource Management, and Corporate Services.

In 2016, the latest version of SAP ERP 6.0 was released, which was then updated through the SAP enhancement package and the latest, the SAP enhancement package for SAP ERP 6.0. Initially, SAP was only made for the manufacturing industry, in Indonesia, it was implemented in the 90s and companies that initially used SAP included Indofood, Astra International, and Toyota Motor Manufacturing Indonesia which later developed and was followed by other companies that are now using it.
SAP Business One Indonesia

The term ERP (Enterprise Resource Planning)

Talking about ERP, which is also SAP software, maybe this is what makes people rarely know what SAP is and what is ERP? ERP system itself means software which defacto means software or application that can help and encourage all activities carried out by the company at any time.

Some of the existing modules in SAP

As already discussed, the SAP stands for (System Application and Product in data processing) which means that SAP also has modules that are made for certain systems. So the modules used by each company are different, depending on their needs, this module will be operated and even better, other branch companies can also see the progress of the data because it has all been integrated.

Also read: Module Type and SAP Business One Implementation Objectives

The modules that are owned by the SAP application have the ability to support the transactions needed within the company. The price of SAP applications is expensive, IT consultants are expensive and HR salaries are also high, maybe this is the reason SAP is rarely used by middle to lower companies, and mostly nowadays it is used for large well-known companies.

The following are some of the modules contained in SAP.

  1. Human Resource Management (HRM): to integrate HR processes ranging from registration applications, time management, employee administration, travel financing, and employee salary processes.
  2. Quality Management: Helping to check the quality of processes throughout the logistics chain
  3. Sales and Distribution or SD: Aims to help the sales process in the company and can help to cross-check the transactions that have been done by the company
  4. PP stands for Production Planning: This module helps companies plan product control and check every activity in the production department
  5. Materials Management: to help run the purchasing process (procurement) and inventory management
  6. PP or Plant Maintenance: helps solve problems that occur in production, sales, and data input activities
  7. FI or Financial Accounting: All activities related to finance and financial reporting are in this module
  8. AM or Asset Management: Makes it easy to manage the overall production activities of the company, both finance and sales plans and in production, you will find this module including helping control investment.

Indeed, there are quite a lot of modules, but this is the advantage of SAP and of course, each module is well integrated. SAP stands for (System Application and Product in Processing) or this SAP application is now widely used by companies in the world because this software better understands the needs of large companies and will really help them.

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