SAP has often used its own terms for areas and items that already have industry standard naming conventions. In some cases, SAP even use existing terminology for different purposes. The purpose of this page is to provide an SAP Glossary of terms to share with IT professionals from other disciplines.
It will be continuously updated as I find more accurate sources and definitions.
Materials Management Automatic Account Assignment (configured with transaction omwb)
System function that determines automatically the accounts in financial accounting to which the amount(s) in question should be posted for the user during any posting transaction.
Asset Management Module
Application Link Enabling
Application Link Enabling (ALE) supports the creation and operation of distributed applications and application integration is achieved via synchronous and asynchronous communication , not via a central database. Provides business-controlled message exchange with consistent data on loosely linked SAP applications.
Advanced Planner & Optimizer
Tool for creating the graphical models that describe the functionality and integration of the SAP R/3 System.
Available-to-promise is the quantity of a material or part still available to MRP which can be used for new sales orders.
Allowing a person/system/module to have a specified access limitations. An authorization specifies one or more permissible values for each of the authorization fields that are listed in an authorization object.
Material is issued for use in an order. Automatic posting of a goods issue for these components some time after their actual physical issue is termed as backflush. During confirmation, the goods issue posting of backflushed components is carried out.
To schedule a process to happen without coming onto the screen. Data can be processed in the background while other functions are being carried out in parallel on the screen. Some programs can be schedules to run on week ends at a particular time. This is particularly useful for batch processing, taking back-up of data etc.
Business Application Programming Interface
Interface to facilitate the transfer of large amounts of either old data or external data to an SAP system.
The procedure to process large volumes of data at once. The processing can not be modified once processing has begun.
Batch Data Communication. Used to define processing mode for a batch input sessions like Displaying all records, Displaying error dialogs, Process sessions in background etc.
Business Information Warehouse
SAP tool for grouping and automating repetitive business transactions for test runs and text modules.
Handling of transformation from one environment to another. This could be changing systems internally from one system to another or moving to a new release from the existing system.
A self-contained unit with separate master records and its own set of tables. Typically a Corporation.
The smallest organizational unit for which a complete self-contained set of accounts can be drawn up . Will be able provide data for generating balance sheets, profit-loss statements.
Customer Relationship Management
The system agent that helps in sending a job to an idle work process by identifying the type of task (ex: update, on-line, batch)
Electronic Data Interchange
SAP Early watch
The EarlyWatch Service has been developed to take note of any problems that may occur and to coordinate R/3 applications within your system, providing you with Optimal system performance. Early recognition of potential problems in R/3 customer systems is crucial to a problem-free installation. The EarlyWatch team of experts locate bottlenecks and potential problem sources and recommends feasible solutions. Constant system tuning helps you to optimize your system resources.
Financial Accounting Module
Authoring system for developing hypertext books in the R/3 System
Goods Transfer posting.
Graphical User Interface. Windows like feel and look. User friendly screens to develop and use are provided. The user can simply point the cursor and click the mouse to operate.
All SAP systems are provided with information , in case the user needs more information. In SAP system , place the cursor on the object where you would like to know more information, and press F1 for more details.
Hot site backup
Identical copy of the Production database on a stand-by database host
Human Resources Module
International Demonstration and Education System. A sample application provided for faster learning and implementation
Intermediate Document. Data container for data exchange between SAP systems or between a SAP system and a Non-SAP system.
Implementation Guide Hierarchical structure reflecting the R/3 component hierarchy and contains all configuration activities.
An administrative unit that groups together components of an SAP R/3 system or simply an Application server which has its own set of work process.
Industry Specific Solutions
InterSAP is REAL TIME COMMUNICATIONS WITH R/3 resulting in immediate on-line transaction processing and transaction formats can easily be adapted to evolving requirements.
Internet Transaction Server links R/3 Application server to web servers to communicate with Internet.
A continuous chain of programs, using control commands.
KANBAN Production control
System used for organizing production that aims to reduce stock levels in the warehouse, thus reducing production costs.
Logistics Execution System
Last in First Out is a valuation procedure according to which the stocks of a material that were last received are the first to be used or sold.
A tool for finding specific record Mainly used to find possible entries for an input field
Moving Average Price.
Material Management External Services Management
Master Production Scheduling takes care of those parts or products which greatly influence company profits or which take up critical resources.
Material Requirements Planning takes into account and plan every future requirement during the creation of order proposals (independent requirements, dependent requirements etc).
Material’s Valuation Price. The standard price for a standard price material, the moving average price for a moving average price material.
Online Analytical Processing
On-line Service System that helps in users to get fast and effective help from SAP. The user may log-in to OSS system to find a possible solution for a ‘bug’. Get the patch ,if any, download and apply to correct the problem.
Pre-Configured Client. The R/3 Simplification Group’s pre-configured client.
Product Requirement Planning
Number under which a price is stored in the POS system of Industry Solution -IS.
Remote Function Call. Allows to call and process predefined procedures/functions in a remote SAP system.
Request For Quote
Reversal of goods Issue.
Return Material Authorizations
Reversal of goods Receipt.
Reversal of goods Transfer posting
Structured Analysis and Design Technique
Sales and Distribution
Electronic mail system in SAPoffice with which you can transmit messages.
The electronic mail system and folder structure in the R/3 System allows you to send documents internally (to other R/3 users in the same system) or externally (to users in other systems).
SAP R/2 was the first compact software package for the whole spectrum of business applications from the SAP corporation. SAP R/2 runs on mainframes, especially IBM, BS2000 (Siemens’ machines) or Amdahl.
Modules of SAP R/2
- RF Financial Accounting
- RA Assets Accounting
- RK Cost Accounting
- RK-P Projects
- RP Human Resources
- RM-INST Plant Maintenance
- RM-QSS Quality Assurance
- RM-MAT Materials Management
- RM-PPS Production Planning and Control
- RV Sales and Distribution
R/3 is the SAP client-server solution It has proved hugely popular in many countries. The solution is available to many more companies than R/2 as a mainframe is not required.
It consists of the following modules:
- BC Basis (includes abap/4 Programming Language)
- AM Asset Management
- CO Controlling
- FI Financial Accounting
- HR Human Resources
- IS Industry Specific Solutions
- PM Plant Maintenance
- PP Production Planning
- PS Project System
- QM Quality Management
- SD Sales and Distribution
- MM Materials Management
- WF Business Work Flow
Includes more than 200 new business processes that have been designed specifically for retail purposes. This is the integral part of R/3 release 4.0.
Software module that acts as part of a firewall system.
SAP-own word processing system. The text editor supplied with the R/3 System for creating and editing documentation.
Supply Chain Optimization Planning & Execution
Structured Entity Relationship Model
Record of a batch input session run. For each run, a session log is created.
Sales & Operations Planning Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which sales, production, and other supply chain targets can be set on the basis of historical, existing, and/or estimated future data. Resource planning can also be carried out to determine the amounts of the work center capacities and other resources required to meet these targets.
Universal Product Code
Work Breakdown Structure is a model of a project, that represents in a hierarchy the actions and activities to be carried out in a project.
Business Work Flow: Tool for automatic control and execution of cross-application processes. This involves coordinating the persons involved, the work steps required, the data which needs to be processed (business objects). The main advantage is reduction in throughput times and the costs involved in managing business processes. Transparency and quality are enhanced by its use.
XXL List Viewer
Tool used to configure Microsoft Excel for display and further processing of R/3 application data. The XXL List Viewer facilitates presentation of R/3 data in Excel, taking into account information delivered by R/3 on the structure of the data
Annual balance sheet and profit and loss (P+L) statement, which must both be created in accordance with the legal requirements. All assets, debts and accrued and deferred items (balance sheet) as well as all revenue.
Zero Stock Check
Check or inventory procedure used to increase the level of accuracy in stock figures. If a storage bin becomes empty after a goods movement, the bin is checked as to whether it is really empty or not.