Introduction to SAP R3

SAP basically is the name of the company which stands for Systems, Applications and Products in Data Processing. The company SAP AG started its operation in 1972 and became successul in 1980 with thir SAP R/2 solution. In 1992, after the introduction of SAP R/3, SAP AG became the world's leading vendor of standard application software.

SAP R/3 is designed with distinct functional modules covering the typical functions of an organization such as Finance (FI) Controlling (CO), Materials Management (MM), Sales & Distribution (SD), and Production Planning (PP), Human Resources (HR), Plant Mantainence (PM) etc.

Each module handled its own specific business tasks on its own, but is linked to the other modules where applicable. For example, an invoice from the billing transaction of Sales & Distribution (SD) would pass through to Accounting (FI), where it will appear in accounts receivable and cost of goods sold. SAP typically focused on best practice methodologies for driving its software processes, but more recently expanded into vertical markets. In these situations, SAP produced specialized modules (referred to as IS or Industry Specific) geared toward a particular market segment, such as utilities or retail.

SAP history is of an evolution from a traditional, integrated, and solid ERP software company to one company that can offer a full set of business, integration, and collaboration solutions and services in the open and global business world.

Some Intresting facts of SAP