SAP ERP TERMINOLOGIES AP (Accounts Payable) – Money the company

owes to vendors.
1. General SAP Terms
Asset Accounting (AA) – Managing company
SAP (Systems, Applications, and Products in assets (e.g., machinery, buildings).
Data Processing) – A leading enterprise
software for business operations. Document Posting – Recording financial
transactions in SAP.
ERP (Enterprise Resource Planning) –
Integrated management of core business Posting Key – Determines debit/credit entry in
processes. accounting transactions.

SAP GUI (Graphical User Interface) – The Fiscal Year Variant – Defines the financial year
front-end interface used to access SAP systems. structure.

T-Code (Transaction Code) – A shortcut to Reconciliation Account – Ensures sub-ledgers

access specific transactions in SAP. and GL accounts are aligned.

Client – A self-contained unit in an SAP system

with its own master data. 3. Controlling (CO)

Instance – A single installation of the SAP Cost Center – A unit within an organization
system. where costs are tracked.

Customizing (IMG – Implementation Guide) Profit Center – A division that generates

– The process of configuring SAP to meet revenue and is responsible for profits.
business requirements.
Internal Order – Tracks costs for temporary
Organizational Structure – Defines company activities or projects.
structure (Company Code, Plant, Sales Org,
etc.).
Activity Type – Defines work performed by a
cost center.
RFC (Remote Function Call) – A protocol for
communication between SAP systems.
Variance Analysis – Comparing planned vs.
actual costs.
IDoc (Intermediate Document) – A standard
format for exchanging data between SAP and
Overhead Cost Controlling – Managing
external systems.
indirect costs.
BAPI (Business Application Programming
Primary Cost Elements – Direct expenses like
Interface) – A standardized interface for
wages and materials.
integrating SAP with other software.

Secondary Cost Elements – Internal costs

ABAP (Advanced Business Application
allocated within an organization.
Programming) – SAP's programming language.

4. Sales and Distribution (SD)

2. Financial Accounting (FI)

Customer Master – Stores customer-related

Company Code – The smallest organizational
data.
unit for financial reporting.

Sales Order – A document representing a

Chart of Accounts (CoA) – A list of all general
customer's purchase request.
ledger accounts used by the company.

Delivery Document – Contains shipping details

GL (General Ledger) – The central record for
for a sales order.
financial transactions.

Billing Document – Generates invoices for

AR (Accounts Receivable) – Money owed to
sales transactions.
the company by customers.
Pricing Procedure – Determines how prices Shop Floor Control – Monitoring and managing
and discounts are applied. production activities.

Credit Management – Controls credit limits for Goods Issue – Removing materials from
customers. inventory for production.

Shipping Point – The location from where

goods are shipped. 7. Human Capital Management (HCM)

Availability Check – Ensures stock is available Employee Master Data – Stores personal and
before confirming a sales order. professional information.

Organizational Management (OM) – Defines

5. Material Management (MM) company structure and job roles.

Material Master – The central record Personnel Administration (PA) – Manages

containing all material-related information. employee records, hiring, and termination.

Purchase Requisition (PR) – An internal Payroll Processing – Calculates salaries and

document requesting the purchase of deductions.
goods/services.
Time Management (TM) – Tracks employee
Purchase Order (PO) – A formal order sent to a working hours and leave.
vendor.
ESS (Employee Self-Service) – Allows
Goods Receipt (GR) – Confirms receipt of employees to manage their own HR data.
materials from vendors.
LMS (Learning Management System) –
Invoice Verification – Checks and approves Handles employee training and development.
vendor invoices for payment.
Benefits Administration – Manages employee
Stock Transfer – Moving materials between benefits like health insurance.
different locations.

MRP (Material Requirements Planning) –

Calculates material needs based on demand. 8. Warehouse Management (WM)

Batch Management – Tracks batches/lots of Storage Location – Defines where materials are
materials. stored.

Warehouse Number – The highest level of

6. Production Planning (PP) warehouse organization.

BOM (Bill of Materials) – A list of raw Storage Bin – The exact location where goods
materials needed for production. are placed.

Work Center – A physical location where Transfer Order – Moves materials within the
production takes place. warehouse.

Routing – Defines the sequence of production Physical Inventory – Verifies actual stock
steps. against system records.

Planned Order – A system-generated proposal Putaway Strategy – Determines where items

for production. should be stored.

Production Order – A document authorizing Picking Strategy – Determines how items are
production. retrieved for shipping.

Capacity Planning – Ensuring enough

resources (labor, machines) for production. 9. SAP S/4HANA and New Technologies
SAP S/4HANA – The latest SAP ERP suite, Server Landscape – The overall setup of SAP
optimized for HANA database. servers (Development, Quality, Production).

HANA (High-Performance Analytic Transport Management System (TMS) –

Appliance) – SAP’s in-memory database. Moves configurations between SAP
environments.
Fiori – A user-friendly interface for SAP
applications. SAP Kernel – The core executable of an SAP
system.
SAP Leonardo – SAP’s digital innovation
platform using AI, IoT, and machine learning. Database Layer – Stores all transactional data.

Embedded Analytics – Real-time reporting in Application Layer – Processes business logic.

S/4HANA.
Presentation Layer – Provides the user
Cloud Deployment – Hosting SAP systems on interface.
the cloud.
SAP Fiori – A modern, web-based user interface
SAP Ariba – Procurement and supplier for SAP applications.
management solution.
SAP BASIS – The technical foundation that
enables SAP applications to function.

1. Basic SAP ERP Concepts

3. Key SAP Functional Terms
ERP (Enterprise Resource Planning) –
Integrated software for managing business Transaction Code (T-Code) – A shortcut to
operations. execute a function in SAP.

SAP (Systems, Applications, and Products in Master Data – Core business information (e.g.,
Data Processing) – A global leader in ERP Customer Master, Vendor Master).
software.
Transactional Data – Data generated from
SAP GUI (Graphical User Interface) – The business transactions (e.g., Sales Orders).
interface used to access SAP.
Organizational Units – Structures within SAP
SAP S/4HANA – The latest generation of SAP (Company Code, Plant, Sales Org).
ERP, built on the HANA database.
Module – Different areas of SAP (FI, CO, SD,
SAP ECC (ERP Central Component) – The MM, HR, etc.).
predecessor to S/4HANA.
Customizing (IMG - Implementation Guide)
Cloud ERP – SAP's cloud-based ERP solutions. – Configuration of SAP settings.

On-Premise ERP – A locally hosted version of

SAP ERP. 4. Data and Reporting in SAP

SAP Business One – SAP’s ERP solution for SAP HANA (High-Performance Analytic
small and medium-sized businesses. Appliance) – An in-memory database for fast
processing.
SAP NetWeaver – A technology platform for
integrating SAP with other systems. SAP BW (Business Warehouse) – A data
warehouse solution for reporting.

2. SAP System Architecture SAP BI (Business Intelligence) – Analytical

tools for business insights.
Client – A self-contained unit within an SAP
system with its own data. Embedded Analytics – Real-time reporting
capabilities in SAP S/4HANA.
Instance – A single installation of an SAP
system.
ABAP (Advanced Business Application RPA (Robotic Process Automation) –
Programming) – SAP’s programming language. Automates repetitive SAP tasks.

SAP Query – A tool for creating custom reports. SAP AI & Machine Learning – Enhances
business processes with intelligent automation.
Data Migration – Moving data from legacy
systems to SAP. SAP Leonardo – SAP’s digital innovation
platform for AI, IoT, and blockchain.
Data Archiving – Storing historical data
efficiently. SAP Workflow – Automates business processes
within SAP.

5. Integration and Communication SAP BPM (Business Process Management) –

Optimizes workflows and process automation.
RFC (Remote Function Call) – Communication
between SAP systems.
8. Financial and Accounting Terms in SAP
BAPI (Business Application Programming
Interface) – Standardized functions for SAP Company Code – The smallest organizational
integration. unit for financial accounting.

IDoc (Intermediate Document) – A standard Chart of Accounts (CoA) – A list of all GL

format for data exchange between systems. accounts.

EDI (Electronic Data Interchange) – GL (General Ledger) – Records all financial

Automates business transactions with partners. transactions.

SAP PI/PO (Process Integration/Process Accounts Payable (AP) – Money owed to

Orchestration) – Middleware for integrating vendors.
SAP with external systems.
Accounts Receivable (AR) – Money owed by
API (Application Programming Interface) – customers.
Connects SAP with third-party applications.
Cost Center – Tracks costs for different
departments.
6. Security and User Management
Profit Center – Measures business profitability.
User Role – Defines a user's permissions in SAP.
Controlling (CO) – Helps with cost tracking
Authorization Object – Controls user access to and budgeting.
specific functions.
SAP Treasury & Risk Management (TRM) –
SAP GRC (Governance, Risk, and Manages financial risks.
Compliance) – Manages security risks and
compliance.
9. Supply Chain & Logistics Terms in SAP
Audit Log – Records user activities for security
audits. Material Master – Stores details of all
materials.
SAML (Security Assertion Markup
Language) – Enables single sign-on (SSO) for Purchase Order (PO) – A document for
SAP purchasing goods/services.

SSO (Single Sign-On) – Allows users to log in Sales Order (SO) – A document recording a
once and access multiple SAP systems. customer order.

SAP Authentication – Verifies user identities in Inventory Management – Tracks stock levels.
SAP.
SAP Ariba – Cloud-based procurement and
supplier management.
7. SAP Process Automation & AI
Goods Receipt (GR) – Confirms that ordered 12. Industry-Specific SAP Solutions
goods have arrived.
SAP IS (Industry Solutions) – SAP solutions
Goods Issue (GI) – Records the removal of tailored for industries (e.g., Retail, Healthcare,
goods from inventory. Banking).

SAP EWM (Extended Warehouse SAP CRM (Customer Relationship

Management) – Advanced warehouse Management) – Manages customer
management. interactions.

SAP TM (Transportation Management) – SAP SCM (Supply Chain Management) –

Optimizes shipping and logistics. Optimizes supply chain processes.

SAP PLM (Product Lifecycle Management) –

10. SAP HR & Employee Management Manages product development.

SAP HCM (Human Capital Management) – SAP SuccessFactors – Cloud-based HR

Manages HR functions. management.

Employee Self-Service (ESS) – Allows

employees to manage personal data.
1. Core SAP ERP Concepts
Time Management (TM) – Tracks employee
work hours and leave. SAP ERP – Enterprise Resource Planning
system by SAP.
Payroll Processing – Calculates employee
salaries and deductions. SAP S/4HANA – Next-generation SAP ERP with
real-time processing.
Organizational Management (OM) – Defines
company structure and job roles. SAP ECC (ERP Central Component) – The
older version of SAP ERP.
Learning Management System (LMS) –
Manages employee training. SAP Cloud ERP – Cloud-based ERP solutions.

Performance Management – Tracks and SAP HANA – High-performance in-memory

evaluates employee performance. database.

SAP GUI (Graphical User Interface) –

11. Project & Change Management Interface to access SAP.

SAP Activate – A methodology for implementing SAP Fiori – Modern, web-based UI for SAP.
SAP solutions.
SAP Business Suite – Collection of core SAP
ASAP (Accelerated SAP) – An older applications.
implementation methodology.
SAP Business One – ERP solution for small
Business Blueprint – A document defining businesses.
business processes in SAP.
SAP NetWeaver – Integration and application
Change Management – Managing SAP system platform for SAP.
updates.

Testing & Quality Assurance (QA) – Ensures 2. SAP System Architecture

SAP functions correctly.
Three-Tier Architecture – SAP system
User Acceptance Testing (UAT) – Testing structure:
performed by end-users.
Presentation Layer – User interface (SAP GUI,
Go-Live – Deploying an SAP system for daily Fiori).
use.
Application Layer – Processes business logic.
Database Layer – Stores data (HANA, Oracle, BAPI (Business Application Programming
SQL Server). Interface) – Interface for integrating external
applications.
SAP BASIS – System administration and
technical infrastructure. IDoc (Intermediate Document) – SAP format
for exchanging data between systems.
Instance – A single SAP system installation.
RFC (Remote Function Call) – Communication
SAP Client – Logical partition within an SAP between SAP systems.
system.
SAP PI/PO (Process Integration/Process
Transport Management System (TMS) – Orchestration) – Middleware for SAP system
Moves configurations between SAP integration.
environments.
SAP API Hub – Provides APIs for external
SAP Kernel – The core executable for SAP system integration.
runtime.

SAP Landscape – The system environment 5. Finance & Accounting (FI)

(Development, Quality, Production).
General Ledger (GL) – Core financial data
storage.
3. User & Security Management
Chart of Accounts (CoA) – List of all accounts
SAP User Roles – Permissions assigned to used by a company.
users.
Accounts Payable (AP) – Manages vendor
Authorization Objects – Defines what users invoices and payments.
can access.
Accounts Receivable (AR) – Manages
Single Role – Grants a user access to specific customer invoices and payments.
functions.
Asset Accounting (AA) – Tracks company-
Composite Role – A combination of multiple owned assets.
roles.
Bank Accounting (FI-BL) – Manages bank
SAP GRC (Governance, Risk, and transactions.
Compliance) – Security and risk management.
Tax Calculation (FI-TX) – Configures VAT,
SAML (Security Assertion Markup GST, withholding tax.
Language) – Single sign-on (SSO) integration.
SAP Controlling (CO) – Manages cost and
SAP Audit Log – Tracks user activities in SAP. profitability analysis.

SAP Profile Generator (PFCG) – Creates and Cost Center – Tracks costs by department.
manages user roles.
Profit Center – Tracks revenue and expenses by
business unit.
4. SAP Data Management & Integration
Internal Orders – Tracks costs for specific
projects.
Master Data – Core data that does not change
frequently.
SAP Treasury (TRM) – Manages corporate
finance, risk, and investments.
Transactional Data – Data generated by daily
operations.

Organizational Data – Defines company 6. Procurement & Supply Chain (MM, SD,
structure (Company Code, Plant, etc.). PP)

Data Dictionary (SE11) – Defines database Materials Management (MM)

structures in SAP.
Material Master – Stores details of all Storage Location – Where materials are stored.
materials.
Warehouse Number – The highest warehouse
Purchase Requisition (PR) – Internal request level.
for materials.
Storage Bin – Exact location of goods in a
Purchase Order (PO) – Formal order sent to warehouse.
suppliers.
Transfer Order (TO) – Moves materials within
Goods Receipt (GR) – Confirms received goods. a warehouse.

Invoice Verification (MIRO) – Checks and Physical Inventory – Stock count verification.
approves vendor invoices.
SAP Extended Warehouse Management
Stock Transfer – Moves stock between (EWM) – Advanced warehouse system.
locations.
SAP Transportation Management (TM) –
SAP Ariba – Cloud-based procurement and Optimizes shipping and logistics.
supplier management.

Sales & Distribution (SD) 8. HR & Payroll (HCM, SuccessFactors)

Customer Master – Stores customer Personnel Administration (PA) – Manages

information. employee records.

Sales Order (SO) – Order placed by a customer. Organizational Management (OM) – Defines
job roles and hierarchy.
Delivery Document – Shipping details for an
order. Time Management (TM) – Tracks employee
working hours.
Billing Document – Invoice sent to customers.
Payroll Processing – Calculates salaries and
Pricing Procedure – Determines pricing and deductions.
discounts.
SAP SuccessFactors – Cloud-based HR
Availability Check (ATP) – Checks if stock is management.
available.
Employee Self-Service (ESS) – Allows
Production Planning (PP) employees to update personal data.

Bill of Materials (BOM) – List of materials Learning Management System (LMS) –

required for production. Handles training and development.

Work Center – Production facility for

manufacturing.
9. Analytics & Reporting

Routing – Defines production steps.

SAP BW (Business Warehouse) – Data
warehouse solution.
Planned Order – Suggestion for production.
SAP BI (Business Intelligence) – Tools for
Production Order – Actual order for data analytics.
production.
Embedded Analytics – Real-time reporting in
MRP (Material Requirements Planning) – S/4HANA.
Ensures materials are available for production.
SAP Crystal Reports – Tool for generating
Goods Issue (GI) – Records materials used in detailed reports.
production.
SAP Lumira – Data visualization tool.

7. Warehouse & Logistics (WM, EWM, TM)

SAP SAC (SAP Analytics Cloud) – Cloud-based The programming language of SAP’s ERP
analytics solution. software.

SAP Data Services – ETL tool for data Used for developing reports, interfaces, and
extraction, transformation, and loading. custom enhancements.

Basis
10. SAP Implementation & Project
Management The underlying technology base that allows
SAP’s functional applications and modules to
SAP Activate – Implementation methodology for interoperate.
SAP S/4HANA.
Manages system administration, database
ASAP Methodology – Older SAP project management, and performance tuning.
implementation framework.

Business Blueprint – Document outlining 2. SAP Implementation & Business Process

business processes in SAP. Setup

Unit Testing – Testing individual SAP Blueprinting

components.
Phase 2 of the implementation process.
User Acceptance Testing (UAT) – End-user
testing before go-live. Involves identifying the organization's structure,
designing new business processes, installing
Go-Live – Launching the SAP system into SAP software, and beginning team training.
production.
Configuration
Change Management – Managing SAP system
updates. The process of establishing SAP settings to
support specific business rules, validations, and
SAP Solution Manager – Helps manage SAP default values.
implementations and operations.
Ensures the system meets business and
regulatory requirements.
11. SAP AI, RPA, & Emerging Technologies
Go Live & Support
SAP Leonardo – SAP’s AI, IoT, and machine
learning platform. The fifth and final phase of the implementation.

SAP Conversational AI – Chatbot integration The system moves into actual production use.
for SAP.
Support is provided to resolve any operational
SAP Robotic Process Automation (RPA) – issues.
Automates repetitive SAP tasks.

SAP Blockchain – Uses blockchain for secure 3. Data Management & Storage
transactions.
Business Warehouse (BW)
SAP Internet of Things (IoT) – Connects
devices to SAP ERP. SAP’s term for a data warehouse where state
data is stored.

Used for reporting and analytics.

1. SAP Programming & System Infoset

Infrastructure
A SAP Query element that determines which
ABAP (Advanced Business Application tables or fields within a table a query can refer
Programming) to.
Infosets are usually based on table joins or Environments include Development (DEV),
logical databases. Quality Assurance (QA), and Production (PRD).

Infotype Legacy Applications

A set of data grouped together according to Refers to older, outdated computer programs
subject matter. currently used by the client.

From the user perspective, infotypes are entry SAP ERP software will eventually replace these
screens that support the maintenance of infotype applications to improve efficiency and
records. integration.

4. Employee & Workforce Management

CATS (Cross Application Time Sheet)

An electronic time sheet for recording employee

working times.

Integrates with HR and payroll systems.

EE (Employees)

An abbreviation used for employees in the SAP

software.

ESS (Employee Self-Service)

A module that allows employees to manage their

personal data, benefits, and work-related
information.

5. Enterprise Resource Planning (ERP) &

Integration

ERP (Enterprise Resource Planning)

A collection of software applications that use a

common database to integrate an organization’s
business processes.

SAP ERP helps manage finance, HR, supply

chain, and other business functions.

Integration

Allows data to flow freely from one business area

to another without time-consuming and error-
prone manual processes.

Maintains and synchronizes data across various

SAP modules and external systems.

Landscape

Refers to the SAP R/3 systems, which share a

common transport directory.