Last updated on Nov 18, 2023
In the year 1972, five German entrepreneurs namely Dietmar Hopp, Hans – Werner Hector, Claus Wellenreuther, Klaus Tschira, and Hasso Plattner had discovered this SAP company to increase the business potential. They named it SAP Systemanalyse und program Entwicklung (“System analysis and program development”).
Real-time business application touches more of the business-related applications: SAP R/2, it’s a fully packaged mainframe software application processes and integrates all the enterprise business functional applications. The growing power of mainframe servers is enabling SAP to expand its customer base to approximately 200 companies.
Here the SAP real-time application reaches the Desktop: this is a client-server version of the standard application software that allows a large number of businesses to run more efficiently across the globe. SAP’s revenue and employee number continue their rapid ascent reaching DM 707.1 million and nearly 2,700 members respectively. The company now has more than 14 international subsidiaries and more than 2,500 customers in 32 different countries using its ERP software.
These SAP real-time moves to the web development applications, cloud computing, mobile developments, and in-memory computing open up the new version for real-time data access- anywhere, anytime. SAP expands mySAP.COM, making it a comprehensive technology for business applications. As a result, SAP has the architecture it needs to help many larger companies integrate a wide variety of information technology systems.
SAP launches the new module known as SAP S/4 HANA and SAP C/4 HANA, 4th generation enterprise software to help customers become business intelligent enterprises. Customers, already more excited in 2010 by SAP’s in-memory computing, are able to take full advantage of its benefit in 2011. Initial customers implement the first-in memory application product, the SAP HANA platform, enabling them to analyze data in seconds rather than days or weeks. SAP’s strategy for mobile business applications is also bearing fruit since its acquisition of Sybase, an SAP company.
Now it’s time to know the definition of SAP:
SAP can be abbreviated as a System application and products in data processing. SAP is also known as Enterprise resource planning (ERP). SAP system application contains various fully integrated functional modules that help to manage business development applications. SAP is a no.01 ERP application and has more than 150,000 installations, 85,000 customers in 125 countries.
SAP is a German multinational software company located in Wall Dorf. SAP develops enterprise software to manage business operations and establishes customer relations. The company is popularly known for its ERP software services. SAP enterprise application offers “best-computing Cloud ERP solutions” that will empower the next generation of business development applications.
The following are the major reasons that will explain why we need SAP ERP;
SAP R/3 is three-tier architecture and we will explain the important components.
SAP R/3 is three-tier architecture and new generation enterprise software from mainframe computing technology (we can also call it client-server architecture). This three-tier architecture contains a database, application, and user interface servers.
Let me explain them one by one;
Presentation server helps to create the system capable graphical interface.
The below diagram will explain the process of the presentation server;
2. Application server:
The application server contains specialized system devices such as multiple CPUs and varieties of RAMs.
This database server contains specialized system applications with fast and larger hard-drives.
Client: A client is a logical portion of any SAP ERP R/3 database server. According to a business standpoint, a client can be defined as a logical group of various companies.
The below diagram will illustrate Client functionality:
SAP Modules :
SAP ERP solution consists of various functional modules, which are used to provide transaction execution key business applications, they are;
Now it’s time to know the advantages of SAP ERP:
Below are a few advantages of using SAP ERP software:
SAP business suite is nothing but a collection of all fully integrated business applications namely SAP CRM (customer relationship management), SAP ERP (Enterprise resource planning), SAP PLM (product lifecycle management), SAP SRM (supplier relationship management), and SAP SCM (supply chain management).
SAP HANA is a high-performance business suite that supports analytical appliances by using in-memory computing, and this is one of the break-through technologies. The main motto of using this business suite application is to enable business analysis on a large scale, non-aggregation of data available at an unprecedented speed only for local memory enables the user to work on complex analyses, plans, and simulations using real-time data, this business suite also provides multi-model data processing and enables you to provide advance level data analytics.
b. SAP Convergent Charging:
SAP convergent charging offers a rating and charging business solution for high-volume data processing in service-based industries. The main motto of using this SAP convergent business suite is to deliver price design capabilities, high-performance business ratings, and balance management.
c. Customer relationship management (CRM):
Unlike other Customer relationship management, the SAP’s Customer relationship management (CRM) a part of the SAP business suite. The main motto of this business suite application is to reduce the application cost, increases the decision-making abilities, address the short-term business services with effective outcomes, and achieve differentiated capabilities over the long term services.
d. Enterprise resource planning:
ERP business suite is a foundation to compete and win in the business global marketplace. The SAP ERP business application supports the basic functionalities of business processes and operations. This is the specific need for many business application modules such as SAP ERP financial management, SAP enterprise resource planning (ERP), SAP ERP HCM (Human capital management, SAP enterprise resource planning (ERP) operations, and SAP ERP corporate service management.
e. SAP Environment, safety, and health management:
SAP business suites support various environments, business occupational, and safety-related to product services, regulatory compliances, and responsibility. This business suite application is accomplished by several corporate policies, business compliances, and environmental setup, health and safety measurements with the global business process for human resources, business logistics, productivity, and finance management.
f. SAP global traceability:
The SAP business suite allows you to trace objects like a batch which is implemented across both SAP and Non-SAP systems. When in the event of recall or withdrawal process, SAP global batch traceability assures timely compliance with legal timelines. This SAP GBT helps you to minimize the resource cost and reduces the risk exposure. With the help of SAP GBT, you can also analyze multiple business objects, for example, batches, in a single run.
g. SAP product life cycle management:
This business suite is applicable to those whose service wants to survive in the ever-changing tech environment. With the help of products, life cycle management enables you to create and deliver innovative products or services. The SAP Product life cycle management (SAP PLM) offers 360- degree business support for all the product or service related process (this may include requirements to product manufacturing process).
h. SAP supplier life cycle management:
SAP supplier life cycle management considered to be one of the holistic approaches to manage supplier relationships. This business suite also helps to establish the relationship between the suppliers, customers, and organization.
i. Supply chain management:
While working with any project, you may face a lot of pressure to reduce maintenance costs, increase product innovation, and provide effective customer services. SAP supply chain management (SAP SCM) offers collaborations, planning, analysis, execution, and coordination of the entire supply management network, and also empowers the supply chain process to ever-changing business environments.
j. Supplier relationship management:
With the help of SAP, supplier relationship management enables you to examine the forecast purchase behavior, reduce the time of procurement cycles, and also helps you to work with real-time partners. This business suite helps to develop long-term business relationships with all the suppliers and also offers better communication with reliable partners.
k. Governance, risk, and compliance:
You cannot avoid the risk, but it’s possible to manage the risk. With the help of SAP governance, risk, and compliance you can balance the risk and opportunities.
l. Sales and operations planning:
This type of business suite provides long-term future demand; the services included are sales and marketing, finance, demand planning stricture, and supply chain planning demands.
SAP NetWeaver is a combination of SAP kernel (This kernel is also known as SAP operating system basically of type web Application system) and SAP software tool for business environments.
This SAP NetWeaver specifies all the software types and services used for business process enablement. As I said earlier, SAP business suites like ECC and SRM consist of software components.
Below are the important points to be considered while working with SAP NetWeaver:
The below diagram will illustrate the SAP NetWeaver application:
The following are the important components of SAP NetWeaver;
This SAP NetWeaver application server offers platform-independent web application services, business applications, and standard developments, and also enables you to leverage already existing technologies for various web-based service-oriented solutions.
This component enables you to integrate business data across the organizations and enterprise into practical business information. And also provide an effective decision-making facility.
This SAP NetWeaver component enables developers to create the business application that links the business user to the SAP software environment.
This component supports cross-system data consistency and integrates the business process development across the extended value chain management.
This type of SAP NetWeaver component improves the process, simple workflow methods to integrate a business process that offers the span applications and organize the boundaries. The functions included are business process management, business rules management, and process integration.
This unifies the critical information and business applications to provide users’ role-based view that helps you to understand the project lie cycle and also guides you to take advantage of resources.
This NetWeaver component gives all the capabilities to auto integrate devices namely RFID readers, Bluetooth devices, Printers, embedded systems, and USB devices.
This component addresses the device access and helps you to solve the issues which are facing typical enterprise-related issues. NetWeaver identity management also enables you to create a new opportunity to integrate business processes and integrate devices in any heterogeneous IT environment.
This NetWeaver component allows developers to perform data archiving and implement regulatory retention rules in the environment.
In this section we are going to explain how to login into the SAP system, Firstly let me explain about SAP logon:
SAP Logon is used to generate any icons to logging into SAP R/3 systems. One important to be considered here is that usually SAP logons are not placed in the SAP R/3 windows group, instead, they are generated through the SAP logon menu. This type of SAP logon is available once you have installed the SAP GUI at your workstations.
SAP Logon icon:
The below diagram will give an idea about the SAP logon Icon:
Point to remember:
To create a shortcut for connecting the new SAP application server, you should follow these steps:
3.Next step is to fill in this information:
Below are the important GUI types available;
This SAP project life cycle will explain the work environment and tells which transaction code, this project life cycle contains various stages and subsequent. The below diagram will explain this:
Stages of SAP project life cycle:
Transaction codes in SAP are used to access various stages. Let me list them:
In this SAP tutorial blog, I have explained SAP’s definition, history, advantages, and what makes it so popular ERP system. Learning this blog will help you to gain theoretical knowledge but to get some hands-on experience; you must take any online course. In today’s business market SAP ERP module has been dominating other programming applications. Due to this reason almost all the fortune 500 companies are coming forward to recruit SAP consultants with good packages.
SAP FICO module is a highly powerful module that covers nearly all business processes experienced in different industries. This module is extensively implemented within SAP and is the preferred design module for both external and internal reporting on accounting processes. The main purpose is the collection and recording of all financial transactions which are displayed by an entity to provide accurate financial statements at the end of the trading period.
With SAP FICO, companies can improve their financial administration. It aims to manage finance perfectly. It will be very hectic, complex, and stressful to use the workforce in financial accounting management. The Sap FI module helps relieve workforce stress by dealing more effectively with a company's financial and accounting needs. It also enables them to examine the company's financial situation on the market in real-time as well. That's why the SAP FI module has become the most popular module implemented successfully across organizations. This can be integrated into other SAP modules such as SAP PP, SAP SD, SAP SCM, SAP MM, etc. SAP FI consultants implements financial accounting and cost accounting through SAP ERP Financials.
The SAP FI module allows you to manage data related to financial accounting in an international framework of several currencies, languages, and companies. The critical components of the SAP FI module are General ledger, Cash journal, Parallel valuations, Tax accounting, Financial statements, Accrual, Inventory, Master data governance, Accounts receivable and payable, Fixed asset, and Fast close functions.
The SAP FI includes the following subcomponents:
General Ledger: A general ledger includes every detail of a company's transaction. It serves as the main record for keeping all accounting information. General ledger entries include Customer Transactions, Supplier Purchases, and Company Internal Transactions. Some of the common T-codes used for the maintenance of General Ledger accounting are FBCJ, FB50, FB02, F-06, F-07.
Accounts Receivable and Accounts Payable: It contains details like how much amount is paid by the client and how much amount is paid by the company to the provider. This means that the Accounts Payable contains all transactions of the Vendor, and the Accounts Receivable contains all transactions of the client.
Some of the common SAP Accounts Receivable T-codes are FRCA, VD01, FD11, FD10.
Some of the common SAP Accounts Receivable Tables are KNVV, KNA1, BSIW.
Some of the common SAP Accounts Payable T-codes are MK01, MK02, XK01, FCHU.
Some of the common SAP Accounts Payable Tables are LFBK, LFM2, LFA1.
Asset Accounting: Asset Accounting covers all of the company's fixed assets and provides full details of the fixed asset transaction. The Financial Accounting's asset accounting module works in close collaboration with other modules such as SAP Plant Management, SAP MM, EWM, etc.
Some of the common T-codes in Asset Accounting are AUN0, ASEM, AT01, AT03
Banks: Bank Accounting covers all transactions carried out via banks. It consists of balance management, all incoming and outgoing transactions, and the master data of banking transactions. You may create and handle all types of banking transactions with the component Bank Accounting.
Commonly used Bank Accounting module tables are KNBK, BNKA, LFBK
Some of the common T-codes in Bank Accounting are FF_6, FI13, RVND.
Funds Management: The purpose of this module is to manage funds within an organization. It covers all transactions relating to the receipt of funds, expenditures of funds, and future expenditures. It interacts with other modules like General Ledger, SAP Accounts Receivable and Accounts Payable, SAP Material management, etc., for obtaining the details of funds. It assists a company in preparing budget forecasts and using the funds appropriately.
Some of the common T-codes in SAP Funds Management are FMWA, FM5I, FMEQ.
Commonly used SAP Funds Management tables are FMIT, FMIFIIT, and FMFCTR.
Travel Management: The purpose of this module is to manage any business travel costs. It covers all travel requests, their planning, and the expenditures involved in all travel requested. It assists an organization in managing travel expenses effectively by enabling integration with any other SAP modules.
Some of the common T-codes in Travel Management are PR00, TRIP, PR05, PRTS.
Commonly used Travel Management tables are FTPT_PLAN, FTPT_ITEM, PTRV_HEAD, TA22B.
Legal Consolidation: It assists an organization in treating its multiple units as one company; it, therefore, makes it possible to consider all the details as one financial statement for every company in the group. An organization may have a clear understanding of its financial agency as a unique entity.
Commonly used Legal Consolidation module tables are T000K, MCDX, GLT3, FILCP.
Another important SAP module available to an organization is SAP Control (CO). It supports monitoring, optimization, and coordination of all the processes across the organization. SAP CO comprises the management and configuration of master data covering internal orders, cost and benefit centers, and other functional areas and cost elements. SAP CO consists of recording both services provided and production factor consumption by an organization. The primary focus of the SAP control module is planning. It allows you to identify variances by comparing real data with plan data, allowing you to control your organization's business flows.
Integrating SAP CO into financial accounting
SAP CO and SAP FI modules are two different elements within an SAP system. There is a steady flow of data between these components. Data flows related to cost flows to financial accounting control. Simultaneously, the system assigns costs and revenues to various controlling account allocation objects, like business processes, cost centers, projects, or orders.
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The following are the major sub-modules of the SAP CO system:
In this tutorial, we have covered all the basic information related to SAP FICO. I hope you found this information helpful. For more information related to SAP FICO, stay tuned.
SAP security is one of the essential function modules that is required to secure the SAP system requirements and critical data from any unauthorized access while transferring data in the distributed environments. SAP security enables organizations to maintain and review the profile policies, and system policies locally or remotely. To secure your system, it’s important to understand the user access policies, data encryption, authorization methods, and profile policies. SAP security enables you to regularly check “SAP system Landscape” and always keep your eyes on changes you made in the configuration and access profiles. With the help of SAP security, standard super-users will be well protected, user profile parameters, and values.
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The following are the few scenarios that explain the needs of SAP security;
To overcome all the above reasons we need a security system that should define the security policies in the SAP environment. Database security is one of the severe problems that commonly occur, so it’s mandatory to maintain the database users and check for the passwords are well protected or not.
Below is the important security mechanism that should be applied in the SAP system environments. They are:
The following image gives you a complete idea of SAP security policies:
Let me explain a common scenario that we face every day; If an unauthorized user tried to access the SAP system under a known authorized user, and tried to make configuration changes, manipulate the system configuration, and key policies. If an authorized user accesses the system and important data, there might be chances that unauthorized users can also access other critical information as well. So to reduce such scenarios, we need an authorized and secured system.
The user authentication mechanism in the SAP Security system;
Here is a few authentication methods provided,
The most common method to access the SAP system is by using the UserId and password, UserIDs are created by system administrators. SAP offers various parameters to define the password policies such as password length, password complexity, and default password change, etc.
User management tools in the SAP system:
SAP NetWeaver system offers various user management tools that help to manage users in the environments. They also provide a strong authentication service for Netweaver applications such as JAVA and ABAP.
User management for the application server in ABAP (use the transaction code: SU01),
Network communication security is used to login into an application server by using a secured authentication method. You can also use SNC (secure network communication) for user authentication that can be done through SAP GUI (graphical user interfaces) for windows or by using RFC (remote functional calls) connections.
Network communication security makes use of various network topologies that eliminate threats and prevent network attacks.
A well-defined network topology doesn’t allow intruders to connect to the organization’s LAN (local area network, hence there are no security loopholes on the network services.
In the following image, you can see the network topology;
It is always good to place your database and application server in a separate VLAN (Virtual LAN). It allows users to improve the access control system and increases the security of the SAP system. Frontend SAP systems are implemented in different VLANs, so it’s not easy to get into the separate server VLAN, and that bypasses the security of the SAP system.
In your SAP system, the most common targeted areas of network attacks are Landscape, application servers, and Database. In the windows/ Unix, these network services are maintained in a separate file /etc/services as shown in the below the diagram;
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When we talk about SAP security in the UNIX platform, the following are the important criteria that we should consider;
a. Password protection
b. Deactivating BSD remote services.
a. Password protection:
In the UNIX platform, an intruder or attacker uses a dictionary attacker program to identify the password stored in the UNIX operating system. So to avoid this, you can store your password in a shadow password file, only root users are able to access this file to improve the system security.
b.Deactivating BSD remote services:
BSD remote services that allow remote access to the UNIX systems. When a remote connection is initiated through the files /etc/host.equiv and $HOME/.rhosts. These file types consist of information about the hostname and IP address of the connection source and a wildcard character.
You can deactivate any threat scenario by using the file name inetd. conf in the UNIX system as shown below;
In your windows OS, you need to create different users and groups to run the SAP system securely. It is always good to add all WIN NT users to use groups to ease the management tasks. In the Windows OS, there are types of users groups used;
In the below image, you can notice the global groups and local groups;
Generally, all the global groups are available in WIN at the domain level and that can be used to assign users from multiple servers. You can choose the global group as per your requirements, although it is recommended to use a naming convention as per the SAP S/3 system installation. The standard global group name available in the SAP system installation is SAP_
The following are the commonly used global groups in the WIN;
Local groups are limited to one server in the Windows domain, however, they increase the security of the SAP environment.
Users can notice the relation between local and global groups: let me make a list of them.
You can create a local group with the following file name;
Window NT User −
SAP System User −
Database Users −
− Database user to perform general DB operations.
The SAP security tutorial article explains the fundamental concepts of SAP security such as Introduction, benefits, purpose, user authentications, SAP security in both Windows and UNIX environments. We hope our articles are helpful and reaching out to many tech communities across the world.
The proper procedures of finance permit people and organizations to work together with more proficiency and to utilize the insights that help to stay in competition; it also manages the procedures of financial and operational execution. The financial value map recognizes the priorities of business and solutions which classifies them into the procedures of the logical, the products of the finance gave the support for the span portfolios such as SAP ERP financials, SAP solutions for EPM, SAP solutions for GRC, and the BI.
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The solutions of its portfolios are based on innovations of technology like SAP and its customer experiences, their innovation helps the finance companies by allowing them to offer value for the instant insight businesses. It made the IT landscape with the change of replication reduction and provided advantages to the CIO that is included in the capability end to end procedures. It has the capabilities of analysis, simulation, and also the finance procedures used to recognize the best options for business strategy, to provide an immediate team of finance, timely instances, and also the decisions of the financial. Its abilities are created to make the procedures of the finance, for the customers of the suit thorough SAP power leveraging. that may be helpful for both the finance through process prospect and IT through architectural perspective.
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The given below are some essential benefits of SAP simple finance:
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The given below are some essential features of SAP simple finance
In traditional applications, the SAP database is used to store the complete data to conduct the calculations and expose the result at the layer of the application. Almost most of the time is spent on these calculations and the aggregation. But when it comes to SAP simple finance, its applications offer an excellent performance of applications into the database. All the information is stored in a database in memory that is much faster than the old one. It helps to replicate and delete the waste data load in real-time. If you have any queries or questions that need to be answered, please make comments below to get your question answered quickly by our HKR expert trainers.
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As a Senior Writer for HKR Trainings, Sai Manikanth has a great understanding of today’s data-driven environment, which includes key aspects such as Business Intelligence and data management. He manages the task of creating great content in the areas of Digital Marketing, Content Management, Project Management & Methodologies, Product Lifecycle Management Tools. Connect with him on LinkedIn and Twitter.
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