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Sap in Finance, HR & MKTG

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62 views9 pages

Sap in Finance, HR & MKTG

E-Business notes

Uploaded by

Lavin Bhawnani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SAP IN FINANCE

The application of SAP in finance can be broadly categorised on the basis


of modules created by SAP. There are many different modules of SAP in
practice. But among that most important and popular are SAP-FI and
SAP-CO, which were introduced separately. But due to its important
nature, both are taught together as SAP FICO.

SAP FICO consists of two sections, SAP Finance (FI) and SAP Controlling
(CO). Each of which is used for a specific financial process. SAP FI deals
with overall financial reporting and accounting, while SAP CO focuses
more narrowly on planning and monitoring costs.

SAP FICO is an important core functional component in SAP ERP Central


Component that allows an organization to manage all of its financial data.

SAP FICO allows an organization to store a complete version of their


financial transaction data. Specifically, the purpose of SAP FICO is to help
companies generate and manage financial statements for analysis and
reporting, as well as to aid in effective business planning and decision-
making.

SAP FICO also integrates with other SAP Logistics modules, including
Sales and Distribution (SD), Production Planning (PP), Plant Maintenance
(PM), Quality Management (QM), and Materials Management (MM).

SAP FI Modules

SAP FI enables organizations to make financial statements for reporting


and analysis. Types of financial statements may include balance sheets
or profit and loss statements. SAP FI consists of several sub-modules that
handle specific accounting processes:
1. General Ledger: It contains all of the company's transaction data in a
chart of accounts. This lists all of the accounts in the system. Transactions
are recorded in sub-modules that can be recorded in real time with general
ledger data.
2. Accounts Receivable: It captures customer transactions and
manages customer accounts. Transactions include invoice posting, credit
memo posting, down payments, invoice payments or executing customer
reports.

3. Accounts Payable: It involves all of the transactions with vendors and


managed vendor accounts. Transactions can include invoice posting,
credit memo posting, down payments, invoice payments, automatic
payments program, and executing vendor reports.

4. Asset Accounting: It manages all of the transactions related to the


company's fixed assets, such as land, buildings and heavy equipment.
Transactions include asset acquisitions, retirement, sales, transfers,
revaluations and depreciation.

5. Bank Ledger: It deals with all of the company's bank account


transactions and data. It can reconcile all transactions recorded on bank
statements and compare them with the transactions in the system.

6. Consolidation: It enables the company to combine financial


statements for multiple entities, which provides an overview of the
company's financial position as a whole.

7. Funds Management: It manages the budgets for the company's


revenues and expenses.

8. Special Purpose Ledger: It defines the ledgers in SAP FI for reporting


purposes.

9. Travel Management: It manages all of the transactions for travel


processes, including booking trips and handling travel-related expenses.
SAP CO Modules

While SAP FI deals with a company's accounting and internal and external
reporting, SAP CO supports processes to plan, report on and monitor
costs from business operations. SAP CO can be instrumental in improving
the company's profitability. Similar to SAP FI, SAP CO is comprised of
sub-modules that handle specific processes:
1. Cost Elements: It provides an overview of all the company's costs and
revenues based on profit and loss statements -- also known as income
statements. Cost element accounting describes the origin of the costs.
Cost elements represent specific costs that the company incurs.

2. Cost Centers: It deals with the costs associated with the company's
internal divisions or departments, such as sales, production, marketing or
human resources. Cost Centers involve only expenses, not revenues.

3. Profit Centers: It handles all of the cost data related to the company's
business lines. It deals with both expenses and revenues -- unlike Cost
Centers, which deals only with expenses.

4. Internal Orders: It is used to manage the costs for smaller internal


projects or non-fixed assets -- like a limited-time marketing campaign, for
example.

5. Profitability Analysis: It enables the company to analyze the


profitability of its products. For example, Profitability Analysis can be
useful for making decisions on matters like product pricing, distribution
channels and target market segments. It also allows levels of detail in
analyzing profitability, such as for each region or country, product types
and distribution channels or individual customer profitability.

6. Product Costing: It manages data about the costs required to produce


the company's goods and services. Product costing analysis can help
manage manufacturing costs and optimize efficiencies.
SAP IN HUMAN RESOURCE (HR)

SAP Human Resource (HR) or SAP Human Capital Management (HCM)


solutions provide strategic and innovative solutions for core HR and
payroll, time and attendance, talent management, employee experience
management, and people analytics to address your critical workforce
transformation needs.

SAP HR software allows you to automate record-keeping processes. It is


an ideal framework for the HR department to take advantage of the
administration and payroll documents.

Using SAP solutions can help companies to put the right talent in the right
positions, provide meaningful employee experiences, and build a highly
motivated workforce in sync with company's corporate objectives.

Importance / Uses / Benefits of SAP in HR


1. Simple and intuitive user experiences: Deliver engaging,
individualised experiences that span HR and business applications, with
embedded feedback loops to consistently monitor and optimise key
moments across the employee journey.

2. Depth and breadth of capabilities: Address your critical workforce


transformation needs, such as intelligent career exploration,
comprehensive self-service options, and individualised recommendations
for built-in guidance, with strategic, innovative solutions.

3. Automated compliance: Leverage localisation frameworks in more


than 100 countries for core HR and 46 countries for payroll. We have more
than 120 local product managers dedicated to understanding country-
specific and regional regulations that impact HR, privacy, and security.

4. Cross-enterprise insight and intelligence: Increase visibility into your


total workforce, workforce impact, and HR costs with insights into data
from across the business and use artificial intelligence for planning.
5. Rapid innovation: Access prebuilt extensions, more than 300 HR
partner apps, and an open cloud platform for building, extending, or
integrating applications, so you can address unique business
requirements with the flexibility and independence you need.

6. Unmatched services and support: Complete your implementation in


a timely and cost-effective manner by leveraging industry-leading best
practices and a ready-to-use, preconfigured system to accelerate cloud
adoption and business outcomes.

7. Bottom-up approach to skill development: Realise greater potential


across the entire workforce by understanding the evolving capabilities,
desires, and needs of every individual, so you can build the skills and
agility needed for the future.

8. Technology for a more inclusive workforce: Drive inclusion and


belonging and help eliminate inherent biases at the point of decision-
making with powerful features embedded across the suite that are
accessible by users of all abilities.

9. Flexibility to start anywhere: Start where you want based on your


critical needs, without the requirement of launching core HR first, so your
journey reflects your strategy at the pace you want.

10. Partnership with a recognised leader: Maximise results with a


recognised market leader in human capital management, enterprise
resource management, data integration, analytics, and platform as a
service – with proven success for thousands of customers across all
industries, sizes, and geographies.
SAP HR modules / Scope of SAP in HR
SAP HR consist of the following modules:
1. Organization management:
Organization management is a very important sub-module of SAP HR. It
enables the organization to represent the organizational plan and analysis
of the current plan. It also allows you to create additional plans and create
better workflow management.
2. Personnel Administration:
Personnel Administration is an important sub-module of SAP systems. It
records essential employee’s information. It helps you to perform various
administrative tasks like hiring the employees, personnel information,
travel expenses, payroll accounting,etc.

3. Time Management (TM)


Time management is another important sub-module of HR and records
employee data. It is mostly is related to attendance, time evaluation, shifts,
etc.

4. Payroll:
SAP payroll module helps you to process the payment for the work done
by employees. It includes wages, medical benefits, taxes, deductions, etc.
SAP payroll module is also integrated with other modules like personal
administration, time management, financial accounting, and so on.

5. Training and Event Management:


Training and Event Management module deals with recognizing training
needs, scheduling training process, cost management, etc.

6. Travel Management:
This SAP module includes managing official trips, cost management for
travel, travel expenses, etc.
SAP IN MARKETING

The SAP Marketing Cloud provides you with detailed customer


information in real time, allowing you to get to know your customers better
and personalize your approach on all channels throughout the entire
customer journey. This increases the conversion rate and customer
loyalty.

The SAP Marketing Cloud provides you with a 360° view of each of your
customers including their motives and needs. All of the relevant signals
from customers are recognized in real time on the basis of context-based
marketing, and the associated purchase intentions are recorded – across
all channels.

The SAP Marketing Cloud uses this data to constantly update an all-round
profile for existing as well as potential customers. This includes data on
the past buying behavior of individual customers, forecasts of possible
future buying behavior as well as focused interests. The solution records
how and where the customer moves, which websites and apps they are
using and whether they are more likely to contact a call center or sales
personnel.

Using the targeting tools of the SAP Marketing Cloud, your marketing
team can contact customers via personalized 1-to-1 campaigns on the
website, by email, digital advertising, sales trigger, by phone or via push
messages on mobile end devices. This will allow you to provide customers
with a customized and consistent, topic-relevant experience and to
respond proactively to their needs.

Benefits of SAP in Marketing

1. Multi-channel strategy integration


By collecting and processing data on each customer-brand interaction,
you can build personalized offers and advertising messages adjusted to
the current needs of your audience while maintaining a consistent
marketing strategy across all sales channels.
2. Measuring key performance indicators:
A well-thought-out strategy should follow marketing activities. With SAP
Marketing Cloud, you can monitor KPIs and track the progress of your
campaigns to improve marketing efficiency and accelerate business
outcomes.

3. Access to a unified customer view:


System users gain access to unified customer view with real-time insights.
By analyzing audience behavior, marketing professionals can deliver the
right messages to the right customer, at the right time and in the right
place.

4. Segmenting high volumes of customer data:


SAP Marketing Cloud enables determining customer expectations and
dividing clients into groups based on common characteristics that go
beyond demographic data. Customer segmentation makes it easier to
build personalized marketing communications and plan activities for better
customer engagement.

5. Automating advertising campaigns:


SAP ERP automates the advertising campaigns using an intuitive creator
or built-in tactics – pre-defined scenarios that meet specific goals.

6. Simplified marketing operations:


SAP makes simple the marketing operations like supply and distribution
with native integration of communication channels: e-mail, SMS, mobile
apps, website and push notifications, Facebook and Google ads.

7. Supporting e-commerce:
SAP also supports E-Commerce by collecting client data from online
platforms using pre-built integrations and then creating unified customer
profiles based on gained insights.
8. Managing real-time customer data:
SAP helps to manage the customers of the firm on real time basis in order
to determine level of interest, chance of purchase, resigning from a
product or service.

9. An advanced recommendation system:


SAP can also be considered as a highly advanced recommendation
system that uses Artificial Intelligence (AI) and Machine Learning (ML) to
recommend complementary products to customers and maximize a profit
per transaction.

10. More efficient cross-team collaboration:


SAP is also highly useful for efficient cross-team collaboration by having
high-quality leads automatically forwarded directly to the sales
department.

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