SAP FICO

What is SAP? – History & Introduction.

What is SAP?

SAP stands for System, Applications, and Products in Data Processing. It is a German company that was founded in 1972 with its headquarters in Walldorf, Germany. Today it is the world’s top ERP Solution company, having over 4 million customers. Further, it is serving 180 countries across the globe.

What is SAP Software?

SAP launched its product, which is a software program in its name itself i.e. SAP. Hence, SAP is an ERP software program that combines the core processes into a single system. I integrate the different departments to have an inter-connected working system. These departments are called Modules in SAP terminology. The main are:

  • Financial Accounting and Controlling
  • Sales and Distribution
  • Production Planning
  • Material Management
  • Human Resource
  • Advanced Business Application Programming (ABAP)
  • Supply Chain Management

The History

In 1973, the company brought out the financial accounting software called, ”R1” with the letter “R” standing for Real-Time Processing.

By the end of the seventies, SAP R/2 was rolled out with IBM’s database and a proper business application. R/2 was further stabilized during the early years of the Eighties and the company came out with a version capable of processing business transactions in multi-language and multiple currencies.

Introducing SAP R/3

Further, in the Nineties introduced SAP R/3 with the Client-server architecture and GUI. It runs on almost any of the databases and operating systems. The R/3 is a new era in ERP by moving from “mainframe” to 3-tier architecture- That is Database, Application, and User Interface.

By 1996 the company had more than 9000 installations worldwide. By end of the Nineties, SAP brought out e-commerce enabling my SAP suite of products for leveraging the ever-expanding web technology.

Enterprise Portal in the 21st Century

In the Twenty-first century, SAP started with the Enterprise Portal and role-based access to business information. Later it brought in NetWeaver based on Enterprise Services Architecture with application integration across diverse platforms for providing a one-stop end-to-end business processing. With Netweaver, companies can now really integrate people, information, and processes.

In 2015, SAP introduced the S4 HANA Business suit on its own HANA Database by coming from both OLTP and OLAP systems.

reference: https://blogs.sap.com

What is SAP S4 HANA? – New Technology

It stands for SAP Business Suite 4 SAP HANA and it’s a collection of different things. This is one of the reasons why HANA is too complex and not managed by many consultants.  We can’t say either a technical upgrade or a functional upgrade. It is a combination of two. However, S4HANA becomes so successful. This is because it is based on cloud technology, thus giving much flexibility to users.

HANA Formation

  1. The HANA platform/Database – a new database that solves the problems faced by ERP.
  2. S/4 HANA (Business suite) – It is an updated version of business suite 7, also taking advantage of the benefits of the HANA platform.
  3. FIORI – It is a new approach to UI, thus with more focus on flexible app style development and mobile.

Related: SAP HANA Migration Guide

SAP Solution Manager

The Solution Manager provides central access to Tools, Methods, and Pre-configured content. It also supports throughout the life-cycle of solutions from Business Blueprint to Configuration to Support.

Features of Solution Manager

  1. Implementation/Upgrade of SAP Solutions
  2. Central access to Project Tools (Project Administration, Business Blueprint configuration, Test Workbench, and also Group Rollout Template)
  3. Central management of Project Information (Roadmap, System Landscape, Documentation etc.)
  4. Enables comparing/synchronizing customizing in several components
  5. Solution Monitoring
  6. Central System Administration
  7. System Landscape Analysis with System level Reporting
  8. Real-System Monitoring
  9. Business Process Monitoring
  10. Service and Support
  11. Access to Programs/services for monitoring and optimizing system performance and availability to minimize risks
  12. Service Desk – Solution Support through Work Flow to create and manage process/Problem Messages
  13. Change Management – Trace and audit system changes and transports through Change Request management

Read About: Detailed Concept of ASAP Methodology

What are SAP Clients?

A client is defined by a 3-character alphanumeric code in SAP and is a mandatory element. The settings made at the client level, data maintained, etc are available across all the company Codes. A client should have at least one company code defined.

SAP comes delivered with clients 001 and 002 which contain all the default settings. It usually copies from the default clients and creates additional and new clients.

You may want to read: Most Imp Tcodes in SAP FICO

Types of SAP Clients

In SAP typically you will have different types of clients namely:-

  1. Development Client
  2. Test Client
  3. Production Client

In any implementation, you must have at least 3 types of clients as mentioned above. However, in some companies, you will find more clients. Such as:-

  1. Development Client
  2. Test Client
  3. Quality Client
  4. Training Client
  5. Production Client

Development Client

A Development client where you will be trying out your new configurations, writing new programs, etc. This is the place, where you can do all configurations before finalizing a scenario.

Test Client

Once you are ok with the configuration, you will then move/transport it to the Test Client where you will carry out all the tests ( both modular and integration).

The end-users are provided with training using the training client. Sometimes both the test and training client could be in a single instance.

Quality Client

The Quality client is the one, which helps to undertake necessary quality checks before something is ready to be passed on to the “production” client.

Training and Production Client

After passing the test, the same will be transported to the production client. You will not be able to make any modifications manually to the production client. Also, the authorization is very limited because in production clients day to day business transactions are happening. So any issues here will create problems for the entire business operation.

Also Read: Production Order Calculation in SAP

Summary

To answer the question as to why to choose SAP as a career, you can see SAP’s growth chart, its history, and its developments. Its reach is growing every day. Further, it is the most popular application software at present time. And with the launch of the S/4HANA series, it has become even more valuable.

For this, a lot of industries are adopting it for their business. Which in turn created a good amount of job opportunities for aspirants. Subsequently, a lot of people are choosing to learn it.

If you also want to get into the SAP domain, you must start with basic concepts and facts like those I shared in this article. It will not only enhance your knowledge but would also help you in job interviews as well.

Learn: How to get a job in SAP FICO

Do choose your trainer wisely to learn your module. Since you need to have conceptual as well as practical knowledge, choosing a good trainer is very important to becoming a successful SAP Consultant.

Pradeep

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