How Many Modules are there in SAP S/4HANA?

SAP S/4HANA is a next-generation intelligent ERP software suite based on the advanced in-memory SAP HANA (High-performance Analytic Appliance) database. The SAP S/4HANA system helps to integrate and align key business functions like finance, human resources, procurement, sales, manufacturing, and services, as also business enablers and tools like data processing, advanced analytics, and improved real-time user experiences. The SAP S/4HANA platform consists of key modules like supplier relationship management (SRM), customer relationship management (CRM), supply chain management (SCM), and product lifecycle management (PLM).

SAP S/4HANA modules cover different functionalities of business operations. The specific modules can vary or be suitably customized depending on the version and the unique needs of the organization. Here is an overview of the typical modules used:

1. Finance (FI — Financial Accounting): Finance is one of the key modules of the SAP S/4HANA system. It is used to manage all financing and accounting-related functions within the business or organization. Finance consists of:

• General Ledger (GL): Management of the company’s financial records.
• Accounts Payable (AP): Vendor invoices and payments.
• Accounts Receivable (AR): Management of customer invoices and collections.
• Asset Accounting (AA): Tracking and management of fixed assets.

2. Controlling (CO — Management Accounting) The controlling module in SAP S/4HANA monitors, manages, and optimizes all the activities in enterprises. The management accounting module within an organization consists of:

• Cost Element Accounting: Tracks cost elements for reporting and analysis.
• Cost Center Accounting: Management of cost centers for controlling expenses.
• Profit Center Accounting: Helps monitor and track the profitability of various business segments.
• Internal Order Accounting: Management of internal spends and projects.
• Product Costing: Calculates the cost of products and services.

3. Material Management (MM): The material management SAP S/4HANA module helps organizations manage materials, inventory, and warehouses which are an integral part of the supply chain management process. This consists of:

• Procurement: Management of the procurement process, including purchase requisitions, purchase orders, and goods receipt.
• Inventory Management: Tracking and control of inventory levels.
• Material Valuation: Handling material valuation and inventory accounting.

4. Sales and Distribution (SD): is one of the critical components of the SAP ERP ecosystem. It is used to manage and orchestrate billing of the entire sales process, shipment of goods, sales orders, and the generation and maintenance of various sales documents, i.e., bills, and invoices. Sales and distribution are also a part of an organization’s shipping and transportation department that manages, tracks, and maintains order fulfillment, logistics, customer relations, and price quotations. This module thus comprises:

• Sales Order Management: Management of customer sales orders.
• Pricing: Defining pricing strategies, clauses, and conditions.
• Shipping and Transportation: Managing and handling order fulfillment and logistics.
• Billing and Invoicing: Management and maintenance of customer billing and invoicing.

5. Production Planning (PP): The production planning (PP) module in the SAP S/4HANA platform is mainly used for managing all the manufacturing processes and planning related activities. It helps to create business plans and strategies for production, materials requirement planning, billing, and capacity planning. The various components of Production Planning include:

• Production Orders: Controlling and tracking various production processes.
• Material Requirements Planning (MRP): Management of material procurement and production planning.
• Shop Floor Control: Monitoring and management of shop floor activities.

6. Quality Management (QM): Quality Management is important module in SAP S/4HANA focusing on quality control, quality planning, quality checks, and quality-related SOPs. The module mainly comprises:

• Quality Planning: Defining quality control plans.
• Quality Inspection: Conducting and orchestrating quality inspections and tests.
• Quality Notifications: Handling quality-related issues and incidents.

7. Plant Maintenance (PM): The SAP S/4HANA plant maintenance (PM) module is a central component of the ERP system that helps organizations in the maintenance and upkeep of their plant and factory-related equipment, machinery, assets, and inventory. This module consists of:

• Maintenance Planning: Planning and scheduling equipment maintenance.
• Maintenance Orders: Executing maintenance tasks.
• Asset Management: Management and tracking of physical assets.

8. Human Resources (HR): This is a core function of the SAP S/4HANA module, and comprises all HR-related processes, including personnel management and payroll. The human resources (HR) function supports activities like employee attendance management, administration benefits, employee data management, and all the employee onboarding/offboarding activities. The various aspects of the HR module are as follows:

• Personnel Administration: Management of employee data.
• Organizational Management: Outlining the company’s organizational layout.
• Payroll: Calculation of employee salaries and wages.
• Time Management: Tracking employee working hours.
• Talent Management: Handling employee recruitment, training, and performance management.

9. Human Capital Management (HCM): This SAP S/4HANA module refers to all the practices and applications used for recruiting, managing, and developing an organization’s human capital, i.e., its workforce. Human capital management software, often referred to as human resources management systems (HRMS), are the systems and solutions used to accomplish and optimize these tasks and support overall organizational goals.

10. Supply Chain Management (SCM): is an important tool provided by SAP AG that helps to manage the entire supply chain process for an enterprise. Supply Chain Management mainly consists of:

• Advanced Planning & Optimization (APO): Supporting demand and supply planning.
• Extended Warehouse Management (EWM): Management of warehouse operations.
• Transportation Management (TM): Handling transportation planning and execution.

11. Project Systems (PS): The project system module in the SAP S/4HANA platform is an integrated project management tool that helps to monitor, manage, and track all projects and project-related activities within the organization. This tool consists of the following:

• Project Planning: Planning and structuring projects.
• Project Execution: Management of all project activities and resources.
• Project Controlling: Monitoring and tracking project costs and progress.

12. Customer Relationship Management (CRM): This is an add-on component of the SAP S/4HANA system. While the SAP S/4HANA platform is primarily ERP-based, CRM functionality can be integrated into customer-related processes. The Customer Relationship Management component allows organizations to manage customer interaction, supporting other sales activities such as order management, and interaction with customers to gather their requirements or feedback. Thus, CRM helps to:

• Co-ordinate customer relationships, along with sales, marketing, and other customer related service processes. While not a core SAP S/4HANA module, CRM functionality can be integrated and aligned to other modules and tools.

13. Supplier Relationship Management (SRM): The Supplier Relationship Management module deals with the management of supplier relationships and procurement processes. SRM thus focuses on supplier management, procurement processes, and supply chain collaboration.

14. Investment Management (IM): The investment management module in the SAP S/4HANA platform helps to maintain, track, and monitor all the investment-related financial activities and capital expenditures of the organization or enterprise.

15. Customer Service (CS): The customer service (CS) module is a core logistic module in the SAP S/4HANA system. This module is used to manage and maintain customer equipment and can also be integrated and aligned with other functional modules.

16. Enterprise Performance Management (EPM):

This module helps in all budgeting, financial management, and financial forecasting activities for the business. It helps to maintain and track data analytic processes and dashboards and also creates various business planning strategies.

17. Enterprise Asset Management (EAM): This SAP S/4HANA module extends asset management capabilities for organizations having complex asset management requirements. The module focuses on managing and maintaining an organization’s assets throughout its lifecycle. EAM uses systematic approaches like asset tracking, asset planning, asset maintenance, and asset analysis to ensure optimal asset utilization and performance at all times.

18. Sourcing and Procurement (S&P): An extension of the Supplier Relationship Management (SRM) module, the sourcing and procurement (S&P) module focuses on strategic sourcing and procurement processes. Automated sourcing and procurement management software helps to streamline all sourcing and procurement processes while delivering near-real-time insights into organizational expenditure, suppliers, and market information.

19. Governance, Risk, and Compliance (GRC): This SAP S/4HANA module helps in managing business risk, compliance, and corporate governance processes. SAP GRC helps organizations to automate and streamline the processes of identifying, assessing, and managing risk and compliance across their operations.

These are some of the commonly used modules in the SAP S/4HANA platform. It is important to note that the SAP S/4HANA system is highly configurable and can be adapted and tailored to meet specific organizational needs. The exact module structure and configuration will vary based on the business requirements and industry-specific solutions of the SAP S/4HANA platform that an organization has implemented.

Here is a diagram showcasing the key SAP S/4HANA modules:

Image Courtesy: https://www.rewion.com/sap-s4hana-vorstellung/

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