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Different Types of SAP Modules: A Brief Guide

In this fast-paced world where efficiency, quality, and agility of product delivery are given utmost priority, SAP has emerged as a crucial technology for organisations. The Different Modules in SAP offer distinct functionalities and processes, designed based on the demands of the stakeholders involved.  

According to the official SAP site, over 440,000 organisations and individuals in 180 countries use SAP software, including 92% of the Forbes Global 2000 companies. This exhibits the popularity that SAP has gathered over the last decade as an Enterprise Resource Planning (ERP) software in organisations worldwide. 

In this blog, we will explore in detail what are Modules in SAP and categorise and explain the Different Modules in SAP according to their use in an organisation. Read ahead to learn more! 

Table of Contents 

1) What are Modules in SAP? 

2) Categorising and explaining the Different SAP Modules 

    a) Functional 

    b) Technical 

3) Conclusion 

What are Modules in SAP?   

In SAP, a Module refers to a distinct set of business processes and functionalities that are grouped together based on their relatedness and common objectives. Each Module typically covers a specific area of business operations, such as finance, sales and distribution, materials management, production planning, human resources, and more. Within each Module, there are various functionalities that allow users to perform specific tasks related to that area of business. 

For example, the Finance Module in SAP encompasses functionalities such as General Ledger accounting, Accounts Payable, Accounts Receivable, Asset Accounting, and more. Similarly, the Sales and Distribution (SD) Module includes functionalities such as sales order processing, pricing, delivery processing, billing, and more. 

SAP Modules are designed to integrate with one another to provide a comprehensive and unified view of an organisation's operations. This allows users to perform cross-functional processes, such as Order-To-Cash or Procure-To-Pay, seamlessly within the system.

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Categorising and Explaining the Different SAP Modules   

In SAP, Modules can be categorised based on the functionality they belong in or technicality they offer. Listed below are some of the most-used Modules along with an explanation of what they are used for: 

1) Functional 

In SAP, Functional Modules refer to the individual units of functionality that make up the various SAP applications. Each Functional Module is designed to perform a specific business process or task, such as financial accounting, sales and distribution, materials management, and human resources. They are designed to support the business processes of an organisation and are used by business users to perform their day-to-day tasks. 

Functional Modules in SAP are typically organised into functional areas, such as finance, logistics, and human resources. Within each functional area, multiple Functional Modules work together to support the business processes of that area.

Listed below are some of the key Functional Modules in SAP: 

1) Production Planning (PP): This Module is responsible for creating and maintaining the master data for production, such as bills of materials, work centres, and routing. It also includes functionalities for creating production orders, planning production resources, and capacity planning. 

2) Material Management (MM): This Module deals with the procurement and management of raw materials and finished goods. It includes functionalities for purchasing, inventory management, and material valuation. 

3) Quality Management (QM): This Module covers the quality control processes within production. It includes functionalities for inspection planning, quality notifications, and quality control results. 

4) Plant Maintenance (PM): This Module is responsible for the maintenance of the production equipment and machinery. It includes functionalities for maintenance planning, preventive maintenance, and work order management. 

5) Sales and Distribution (SD): This Module deals with the sales and distribution of finished goods. It includes functionalities for sales order processing, delivery processing, and billing. 

6) Financial Accounting (FI): This Module is used to manage financial transactions and generate financial statements for an organisation. It covers various sub-Modules like General Ledger, Accounts Receivable, Accounts Payable, Bank Accounting, Asset Accounting, etc. 

7) Financial Supply Chain Management (FSCM): This Module helps to manage the financial aspects of the supply chain, including credit management, collections management, and dispute management. It provides real-time information on cash flow, credit risk, and other financial metrics, enabling better decision-making and improved cash flow management. 

8) Controlling (CO): This Module provides the tools to monitor and control the costs of an organisation and helps in decision-making. It covers various sub-Modules like Cost Element Accounting, Cost Center Accounting, Internal Orders, Profitability Analysis, etc. 

9) Logistics Execution (LE): This Module deals with the physical movement of goods and materials across the supply chain. It covers various sub-Modules like Warehouse Management, Transportation Management, and Shipping.

10) Project System (PS): This Module helps in planning, execution, and monitoring of projects in an organisation. It covers various sub-Modules like Project Planning, Project Costing, Project Execution, and more. 

11) Human Resources (HR): This Module manages an organisation's human resources data, including employee records, payroll, benefits, and performance management. It covers various sub-Modules like Personnel Administration, Organisational Management, Time Management, and more. 

Get in-depth knowledge of how SAP can be integrated with supply chain systems to make them better with SAP Supply Chain Management Training. Join now! 

2) Technical

Popular Technical Modules in SAP


SAP offers a wide range of Technical Modules that provide different functionalities to support various business processes. 

Here are some of the Technical Modules in SAP: 

1) Basis: Basis serves as the core Technical Module in SAP. It provides the underlying system infrastructure and services required for other SAP Modules to function. It includes components such as system administration, database administration, and network management. 

2) ABAP (Advanced Business Application Programming): This Module is the programming language used by SAP to develop custom applications and extensions. It allows developers to create new functionality and modify existing SAP applications to meet specific business requirements. 

3) NetWeaver: NetWeaver is a comprehensive platform for building and integrating SAP applications. It includes tools for developing web applications, business intelligence, and enterprise portals. 

4) Solution Manager: Solution Manager is a Module used for managing and monitoring SAP systems. It provides features such as system monitoring, incident management, change management, and technical administration. 

5) Security: The Security Module is used to manage user access and authorizations to SAP systems. It includes components such as user administration, role management, and authentication. 

6) Workflow: Workflow is a Module used to automate business processes in SAP. It enables the creation and management of workflows for tasks such as approvals, notifications, and escalations. 

7) Enterprise Portal: This Module provides a central location for accessing SAP applications and data. It enables users to access SAP systems through a web interface and provides a personalised view of the SAP system based on user roles and preferences. 

Technical modules in SAP refer to the modules that provide technical functionality and support to the SAP system. These modules are used by technical users, such as developers and system administrators, to maintain and enhance the SAP system. Each Module serves a unique purpose and is designed to provide specific capabilities to support business processes.  


In this blog, we have discussed in detail about what Modules in SAP are, explained what the Different Modules in SAP stand for and categorised them based on functionality and technicality.  

The Different SAP Modules cater to specific business functions, allowing organisations to streamline their processes and make informed decisions based on real-time data. Each type of SAP Module plays a critical role in ensuring the smooth functioning of an organisation. By leveraging them, organisations can optimise their operations, improve productivity and achieve their goals effectively.  

Overall, SAP Modules are a valuable asset to businesses looking to stay competitive and thrive in today’s dynamic marketplace.  

Learn in depth about SAP by signing up for our SAP Training courses! 

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