What is SAP ERP?
SAP stands for Systems, Applications, and Products in Data Processing and is the largest database software company in the world. SAP is based in Waldorf, Germany. ERP is an abbreviation for Enterprise Resource Planning. ERP helps an enterprise or an organization or a company runs its business efficiently by planning its resources efficiently. These resources may be material, manpower or services. SAP ERP is database software that integrates various business functions of a company to eliminate the need for redundant or duplicate data entry. SAP ERP stores all the activities and business functions that the users perform in its database. Eventually, all this data helps in making better business decisions in the form of a large number of standard reports available.
SAP ERP is flourishing in the market. Therefore, any person can increase possibilities after completing SAP ERP certification, in the initial phase salary can be less, but in the long run, it can improve substantially. The SAP is largest produces of business solutions and third largest software company in the world. Previously its ERP was confined to only large companies, fortune 500 companies, but recently SAP has broadened its market by decreasing the cost of purchasing and implementing its ERP. This change will bring in more SAP users in the market and people can enhance their career possibilities after completing SAP certification immensely. SAP has been facing a shortage of trained professionals in the market which is hurting its business. Lack of professionals who can help in implementing and running the ERP reduce company's credibility in the market. It becomes a lot easier to get a job after completing SAP courses if a person has achieved sound and practical knowledge and has sincerely pursued the courses.
SAP ERP helps professionals to enhance skills to get a better designation in the same company or to switch the job to get into a better position. A certification in the subject is generally overvalued, and not all who are certified get very reputed jobs. Generally, the job depends on the previous experience, university education and the way you prepare for interviews.
Main Components of SAP ERP
SAP ERP consists of several essential components and to adequately segregate the business functions of the company. These components are:
- Financial Accounting (FI): It covers the basic accounting business functions of the company such as general ledgers, accounts payable, accounts receivable, cash & bank and asset accounting.
- Managerial Accounting (CO): Managerial accounting is alternatively referred to as Controlling (CO). It covers business functions such as cost centers, profit centers, internal orders and product costing.
- Materials Management (MM): It covers business functions such as procurement or purchasing and inventory management. The procurement can be for materials or services and can be both local or imports (foreign procurement).
- Sales and Distribution (SD): Its cover business functions such as inquiry, Sales order management, quotation, s and credit and debit memos. It also includes rebates handling, as well as exports sales.
- Production Planning (PP): It covers all phases of production, including the time it takes to set up machine, the product manufacturing time as well as labor hours consumed in producing a product. Production wastages, scrap, by-products, and co-products are all within the scope of PP component.
- Project System (PS): SAP PS covers business processes to manage the project of any size effectively, and includes Work Breakdown Structure (WBS), Network, milestones, and confirmation on the progress of project completed.
- Human Capital Management (HCM): It includes business processes involving all aspects of managing company’s employees. Time management, personal development, organization structure and payroll are some of the sub-components of HCM component.
- NetWeaver (Basis): It entails the SAP ERP software installation, taking a timely backup, disaster recovery. It also includes authorization management to control which process owner is authorized a specific set of business transactions.
- Quality Management (QM): SAP QM covers business processes involving quality control and quality checks in all aspects of logistics and supply chain management.
- Advanced Business Application Programming (ABAP): ABAP is the programming language of SAP ERP and is used to create custom-developed reports, layouts, screens or scripts.
Possibilities and Job Opportunity after Getting the SAP ERP Certification.
- It can be used to get a better income or promotion in one of the most flourishing industry based solutions which have been adopted worldwide. Some of the common modules found in the solution are Human Resource (HR), Sales (SD), Production (PP), Finance and Accounting (FICO) etc.
- After doing the certification, one can go for entry-level jobs where the salary can be less than the previous jobs, but it will pay off in the long run. The job market for SAP is growing even in a recession, and it has been found that the research work is also increasing. Before the recession, it was suffering from a shortage of professionals and the condition have not changed much, therefore, SAP is promoting training certification and the salary given to professionals is lucrative.
- After completing the SAP ERP certification one can also improve his career possibilities by becoming an independent SAP ERP functional or technical consultant. Many small or medium-sized organizations prefer to hire independent professional for helping in their ERP implementation. A Person possessing sound knowledge of different modules of SAP and ABAP programming can contribute exceptionally well in implementation and customization. Even large organizations hire independent consultants to cross-check the analysis done by consultants of ERP providing companies. Hence career possibilities are brighter after completing SAP ERP certification.
- If you work as SAP ERP consultant and in a consulting firm, you’ll have countless opportunities to travel, meet new clients, implement SAP ERP projects for various industries and learn new features and functionality of SAP ERP with its every new release. With each new project or implementation, you career graph will exponentially raise and so will be your compensation.
Salary of SAP ERP Professional
If you work for a company that is implementing SAP ERP, you may be financially compensated for a lot of hard and long work that goes into implementing the new system. Further, the company wants to retain such resources to take advantage of all the knowledge and experience gained from SAP ERP implementation for its business continuity. It is also essential to highlight that regardless of your industry or professional experience when you initiate your consulting career in SAP ERP, you are still considered a “Fresher” and must start from the bottom-of-the-ladder.
SAP Enterprise Resource Planning (ERP) Median Salary by Job
- Financial Analyst- $60,351
- Senior Financial Analyst- $80,128
- Production Planner, Manufacturing- $57,515
- Supply Chain Planner- $63,622
- Logistics Analyst- $57,622
- Supply Chain Analyst- $59,908
- SAP Business Analyst- $79,214