What is SAP R/3

SAP in English stands for Systems Applications and Products in Data Processing. "R" in R/3 represents Real Time Integration and “3” stands for 3 tier architecture.

SAP allows an enterprise to integrate all their business operations in one system for Planning , Controlling, and Monitoring. The SAP R/3 system consists of application modules that support business transactions and are integrated real-time. Because of integration, a change in one application module will result in an automatic update of the data in the other application modules involved. All application modules have common architecture and user interface. In other words, a person familiar with one module, will have little difficulty in understanding other SAP modules. The SAP screens in general, across modules, have same “look & feel” and navigation.

Some of the commonly used SAP R/3 application modules are:

• Financial accounting and Controlling (FICO)
• Materials management (MM)
• Sales and Distribution (SD)
• Production Planning & Control (PP)
• Asset management (AM)
• Project system (PS)
• Human resources (HR)
• Plant maintenance (PM)
• Quality management (QM)
• Warehouse Management (WM)

SAP also has Industry Solutions which combine the SAP R/3 framework and application modules alongwith additional industry-specific functionalities. Special processes, techniques and modules have been developed for almost all different industry types such as oil and gas, mining, pharmaceuticals, retail, banking etc. which makes SAP relevant for all kinds of businesses.