SAP ERP is primarily based on SAP Enterprise Core Components (SAP ECC) – previously known as R/3. The latest version of SAP ECC is version 6.0 with enhancement package 4. Enterprise Core Component comprises a range of modules or applications.

The most important of these are:

• Financial Accounting (FI)

Comprises elements such as General Ledger (FI-GL), New General Ledger (NGL), Accounts Receivable Accounting (FI-AR), Accounts Payable Accounting (FI-AP), Asset Accounting (FI-AA), Travel Management (FI-TV) and Special Purpose Ledger (FI-SL)

• Controlling (CO)

Comprises elements such as Overhead Cost Controlling (CO-OM), Product Cost Controlling (CO-PC), and Profitability Analysis (CO-PA)

• Sales & Distribution (SD)

Comprises elements including Sales Orders (SD-SLS), Delivery (SD-DEL) and Billing (SD-BIL)

• Material Management (MM)

Comprises elements such as Inventory Management (MM-IM), Purchasing (MM-PUR) and Material Requirements Planning (MRP).

• Production Planning & Execution (PP)

A number of different versions of the manufacturing module are available to support different types of manufacturing, such as standard discrete manufacturing and process manufacturing. Contains functions for both planning and execution.

• Quality Management (QM)

Contains options for integrating quality management for Sales, Purchasing and Production.

• Project System (PS)

Provides functionality for the establishment and control of both simple investment projects and large, complex, “Engineer-to-order” projects. Closely integrated with other applications.

• Human Resources (HR)

Comprises functionality for the control of the HR administrative process (application, employment, termination), employee development and organizational control.

These core applications can naturally be closely integrated with the other SAP components.