Management decision-making can be achieved with the level of information provided by this module. The Cost Element Accounting component provides information which includes both the costs and revenue for an organization. SAP Technology is known to be an advanced software technology which enables R/3 to handle all kinds of business management duties throughout all sections of the organization. SAP Technology is easily goes with all kinds of business computers, which means that the company’s hardware can be expanded in different ways as requirements increase. SAP Technology also handles the changes in the organization’s structure. For instance, changes may which need data processing to be decentralized or centralized. SAP Technology has also been designed for organizations that are made up of numerous corporations.
R/3 System can manage several independent legally corporations. Even if the corporations themselves have subsidiaries, they all can handle within a single system. International companies choose R/3 due to its benefits like multi-lingual options, accounting practices and national taxation laws that support multiple time zone operations. SAP Technology ensures that organizations are always ready for business on the Internet. Coming to different kinds of SAP modules, here is some useful information. The Basis System which is also known as the Kernel, is responsible for defining checking entries, the screens and makes sure that data goes to the right place. The interfaces are known as the connection which is the R/3 System that is available in many versions designed for each kind of system and software. It is the interfaces that enable the System R/3 to appear the same, and it doesn’t matter which system is being used.
Other kinds of modules are; the Sales and Distribution module also called SD, handles work that is related to sales, billing and shipping. Production Planning module, PP assists staffs, managers and the operators to plan the process production. The Material Management module also called MM handles the flow of materials in, through and out of the organization. Plant Maintenance module, PM handles building repair and maintenances equipments used in production process. It gives information on machinery usage. Financial Accounting module, FI gives general accounting facilities such as loss and profit statements and balance sheets. Quality Management module, QM supports all the processes related to the quality assurance of the products.
The Controlling module, SAP CO is made not only to control costs but even to control the company’s objectives. CO also provides information to help managers in future planning and also in making decisions. The Personnel Administration module, PA has the master data where the information of all staffs is stored. The HRD department of a company accesses this data which is often updated. Enterprise Controlling module, EC is an information system for executives; it is designed to combine a company’s internal information along with the external data. Personnel planning and Development module, PD covers all human resources planning area, like the cost planning which enables the effect of different payment strategies that has to be predicted as the basis for decision making.