Introduction

SAP is the abbreviation for Systeme, Anwendungen, Produkte, the German words for Systems, Applications, Products

R/3 means Release 3-tier. 3 Tier is a computer architecture in which a computer application is installed en 3 different computers:

Tier 1: The database computer system, which runs a database program to keeps all the data and information (In Grant Macewan College we use the brand name Oracle)

Tier 2: The application computer system, which runs the SAP program.

Tier 3: The user's desktop, which runs the SAP user interface program. This is the one everybody uses and you can have it in your home computer installed along with your personal programs)

Having a 3-tier ERP system was a big accomplishment from SAP, because before the only option for this kind of programs was to use a very expensive mainframe computer system. There us another version called SAP R/2, which is designed for mainframe use. Both R/2 and R/3 use the ABAP/4 programming language. This means that data can be moved easily between mainframe and open systems.

The SAP R/3 System is designed primarily to meet the needs of mid-sized businesses up to large corporations. Usually the system works with a company's existing computer system, and it can escalate up to a large number of different types of computer.

SAP Modules

The SAP R/3 system is designed to handle all of the business management tasks of a company, such as the creation of invoices, production planning, and the update of accounting records.

SAP R/3 handles these tasks using application modules. This information is shared between modules despite any existing organisational limitations of a company. This is because the SAP R/3 system works with a common database, and the information entered into the system by one of the modules is immediately accessible to the other modules.

In the original documentation the modules are referred by initials, for example: SD for Sales and Distribution, MM for Materials Management, WM for Warehouse Management

The SAP R/3 modules are grouped into three main areas: Logistics, Accounting and Human Resources. So, for example, Materials Management module is within Logistics group, and Controlling is a module within Accounting.

Customization

The R/3 system can be customized to meet the specific technical or business requirements of a company. Also business terms can be modified to match those utilized within a particular company. When installing the application, the modules can transfer data from a company's existing programs. Also a company may install only the modules that it needs at the moment, and additional modules can be added when the business needs grow.

Security

The SAP R/3 system manages a group-based security implementation. Each group gives access to specific modules and specific functions within each module. To access the system you have to have a user account, which is assigned to one or several of those groups. The security settings are maintained by the system administrator.