What is Enterprise Resource Planning

Before we start with ABAP course, it is important to understand ERP and ERP software. Next, we will have an Introduction to SAP and its historical overview.

ERP stands for Enterprise Resource Planning.

  • ERP is enterprise management software with business applications to run large-to medium-sized business enterprises.
  • ERPs integrate the different business activities of a business enterprise and have a centralized database for storing all function module data
  • ERPs guarantee consistency of data throughout the system and the company itself.
  • They support multi currency and multi language for enterprises to operate globally.
  • ERPs also posses the feature to consolidate accounting data of an enterprise with multiple subsidiaries.

Enterprise business activities

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Functional Modules in an ERP software

An enterprise has to perform various business activities to smoothly run their business. Common business activities are Accounting, Sales, Procurement (Material Management), Production Planning, HR, Customer Relationship Management, etc. These business activities are performed by specific department within an enterprise. From ERP point of view, these departments are business functions or functional modules. A functional module represents a particular business function.

ERP software with a Centralized database

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