History of SAP
SAP was founded in Germany in 1972 by five former IBM engineers. Their goal was to help companies manage their business processes using software. SAP's first product, known as SAP R/1, was a simple financial accounting software. Later, SAP R/2 was introduced, allowing companies to manage logistics and production processes as well.
With the rise of client-server technology, SAP introduced SAP R/3 in the 1990s, a revolutionary ERP system that integrated multiple business functions into a single platform. This system quickly grew in popularity and became the industry standard for ERP solutions. As technologies evolved, SAP ECC and later SAP S/4HANA were developed to enable companies to work even more efficiently with faster databases and modern user interfaces.
SAP Modules
SAP is composed of different modules, each supporting a specific business process. A module in SAP is a separate component of the system designed to manage a particular business area. Each module includes standard processes and functionalities but can be customized to meet a company's specific needs (more on that later...). Modules work together within the SAP system, allowing seamless data sharing between different departments.
Here are some commonly used SAP modules:
- FI (Financial Accounting) - Manages a company's financial transactions and reporting.
- CO (Controlling) - Handles cost management and budgeting within organizations.
- MM (Materials Management) - Tracks procurement and inventory management processes.
- SD (Sales and Distribution) - Supports the sales process and order management.
By combining different modules, companies can establish an integrated and efficient ERP system that optimally supports their business processes.
SAP ECC vs. SAP S/4HANA
SAP ECC (ERP Central Component) was SAP's standard ERP solution for many years. SAP has since developed a new system: SAP S/4HANA. This system is faster and more modern. Below are the key differences:
| Feature | SAP ECC | SAP S/4HANA |
|---|---|---|
| Database | Works with databases like Oracle and MS SQL | Works exclusively with SAP HANA, an in-memory database |
| Ease of Use | Classic SAP GUI | More modern interface with SAP Fiori |
| Data Model | Complex and heavy | Simplified and more efficient |
| Cloud Options | Limited cloud options | Supports both cloud and on-premise |
| AI and Machine Learning | Limited | Integrated AI capabilities |
| Performance | Slower data processing | Fast real-time processing |
SAP has announced that support for SAP ECC will end in 2027, with a possible extension to 2030 for companies that sign additional maintenance contracts.
In addition to ECC and S/4HANA, SAP also offers SAP Business Suite and SAP Business One. SAP Business Suite is a comprehensive set of applications for large enterprises, while SAP Business One is specifically designed for small and medium-sized businesses. SAP Business One is simpler and more cost-effective, whereas SAP Business Suite provides a broader set of functionalities.
Transaction Codes
In SAP, users work with transaction codes (T-codes) to execute specific tasks quickly and efficiently. A transaction code is a short alphanumeric code that grants access to a particular function within the SAP system. Instead of navigating through menus, users can directly enter a T-code in the SAP command field to quickly access the desired functionality.
T-codes are organized by module and business process. They can be used for data entry, generating reports, and performing system configurations. Here are some commonly used transaction codes:
- SE16 - View table data.
- ME21N - Create a purchase order.
- FB50 - Enter financial postings.
- VA01 - Create a sales order.
- MM03 - View material data.
- FBL1N - View open vendor items.
- FBL5N - View open customer items.
- XD01 - Create customer master data.
- XD02 - Modify customer master data.
- SU01 - User management.
Using these codes, employees can work faster and execute their daily tasks more efficiently. For audit analytics, these codes are also quite important, as SAP records extensive logging, helping to track who performed which actions.
ABAP
Then there's ABAP (Advanced Business Application Programming). This is the programming language SAP uses to develop custom solutions. With ABAP, companies can tailor their SAP system to their specific needs, such as additional reports or customized workflows.
Key features of ABAP:
- Development Environment: Developers use the ABAP Workbench to write and manage code.
- Object-Oriented Capabilities: In addition to traditional code, ABAP also supports object-oriented programming (OOP).
- Database Access: ABAP enables direct interaction with the SAP database.
- Extensibility: Through extensions like User Exits and BAdIs, companies can customize SAP functionality without modifying the core code.
It is not an easy language, which is why specialized ABAP developers are often responsible for system development. For auditors, it is crucial to track which changes have been implemented to ensure the system functions as expected.
Conclusion
This was my basic introduction to SAP. It is far from complete, and in future articles, I will delve deeper into other aspects such as GITC, transaction codes, and tables, as knowledge of this application is certainly valuable!
