What is SAP ERP? An Essential Guide

Last Updated: August 28th, 2024
Researched and Written by: Lexi Wood

SAP ERP refers to any enterprise resource planning software developed by the SAP company. Discover their most popular ERP products and their key features below.

What is SAP ERP?

SAP ERP is any enterprise resource planning (ERP) product developed by SAP SE. The company was founded in 1972 and has since developed dozens of ERP solutions for various business sizes and industries.

SAP’s ERP solutions integrate core business functions, including financial management, asset management, manufacturing, project management, and sales, into one comprehensive platform.

How to Use SAP ERP Software

Operating SAP ERP software is fairly straightforward. Navigate the system using menus, tabs, and icons, starting from a customizable dashboard. The home screen can display key performance indicators (KPIs), notifications, and quick links to frequently used functions.

Every user needs valid credentials and access permissions. Users can be assigned specific roles within the system based on their job responsibilities. Although the navigation and tools are intuitive, training is recommended to ensure employees can maximize the system’s benefits.

Examples of Products

The dozens of ERP solutions from SAP give businesses access to tools designed to simplify workflow processes. Top features include integrated financial management, supply chain management, and CRM tools.

SAP S/4HANA is modern and versatile ERP software offering a wide range of functionalities that cater to various industries, including logistics, manufacturing, finance, human resources, supply chain, services, and procurement. Its HANA in-memory database enables real-time processing and analysis and provides organizations with an up-to-date view of their operations. It’s suitable for medium to enterprise-level businesses with complex needs, especially those expanding globally.

SAP S/4HANA
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SAP S/4HANA: Contracts Page
SAP S/4HANA: Contract Renewal Page
SAP S/4HANA: Procurement Overview Page
SAP S/4HANA: Production Orders Management Page
SAP S/4HANA: Sales Order Fulfillment Issues Page
SAP S/4HANA: Procurement Overview
SAP S/4HANA: Supplier Evaluation
What We Like
HANA database
Large network of resellers
Strong BI tools
What We Don’t Like
Difficult setup
Lack of pricing transparency
Relatively new and unproven
Overview
Price Range: $$$$$
Client OS: Windows, Web
Deployment: Cloud or On-Premises

SAP Business One offers integrated support for various departments, including finance, sales, supply chain management, production, and project management. This solution is suitable for a wide range of industries and is specifically designed for SMEs, focusing on ease of customization and extensibility through third-party add-ons.

SAP Business One
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SAP Business One: Sales Analysis
SAP Business One: Enterprise Search
SAP Business One: Cash Flow
What We Like
Highly customizable
Improved decision-making capabilities via extensive BI
Multi-currency/multi-language support
What We Don’t Like
Requires phone consult for pricing
Setup usually requires help from a Value Added Reseller (VAR)
No payroll module
Overview
Price Range: $$$$
Starting Price: $410/user/year
Client OS: Windows
Deployment: Cloud or On-Premises

SAP Business ByDesign is a cloud-based business solution designed for small and midsize enterprises (SMEs). It provides features for various business operations, including finance, customer relationship management (CRM), marketing, sales, service, human resources, project management, supplier relationship management, supply chain management, and more. The solution offers several advantages, including completeness, adaptability, an excellent customer experience, and affordability with predictable ownership costs.

SAP Business ByDesign
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SAP Business ByDesign: Dashboard
SAP Business ByDesign: Business Configuration Page
SAP Business ByDesign: Launchpad
SAP Business ByDesign: SAP Business ByDesign Product Planning
SAP Business ByDesign: SAP Business ByDesign Organization Structure
SAP Business ByDesign: SAP Business ByDesign Sales Order
SAP Business ByDesign: SAP Business ByDesign Financial Dashboard
SAP Business ByDesign: SAP Business ByDesign Homescreen
What We Like
Advanced reporting capabilities
Extensive user manuals, videos, and articles
Easy integration with other SAP products
What We Don’t Like
May be cost-prohibitive for smaller businesses
Initial learning curve
Overview
Price Range: $$$
Starting Price: $22/user/month
Client OS: Web
Deployment: Cloud Hosted

SAP Business All-in-One is an ERP solution tailored for midsize companies. It offers an adaptable approach to enterprise resource planning (ERP) and caters to the core business software needs of midsize companies, from customer acquisition and product innovation to talent management and financial reconciliation. It streamlines business processes, supports fast deployment with industry-specific solutions, and encourages quick user adoption.

SAP Business All-in-One
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SAP Business All-in-One: Homepage
SAP Business All-in-One: Performance Dashboard
SAP Business All-in-One: Rush Order
SAP Business All-in-One: Document Flow
What We Like
Supported multiple real-time ledgers for local GAAP, IFRS, tax, and US-GAAP processes
Managed multiple processes and reports required for foreign trade
Integrated with CAD systems, geographic information systems (GIS)
What We Don’t Like
Discontinued
Tedious setup
Overview
Price Range: $$$$$
Client OS: Windows
Deployment: Cloud or On-Premises
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SAP ERP, also known as SAP ECC, is an on-premise Enterprise Resource Planning (ERP) system designed for large enterprises. It offers solutions across various operational areas, including manufacturing, procurement, sales, finance, and human resources. More than 25 industries have adopted this versatile ERP system, which is available in 37 languages.

SAP ERP 6.0
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SAP ERP 6.0: Leave Request
SAP ERP 6.0: Paystubs
SAP ERP 6.0: Timesheet
SAP ERP 6.0: Change Request Details
SAP ERP 6.0: Purchase Order
SAP ERP 6.0: Sales Order
SAP ERP 6.0: Production Order
What We Like
Hybrid deployments
Large network of resellers
Extensive customer and partner community
What We Don’t Like
Complex learning curve
High upfront costs
No longer supported in 2027
Overview
Price Range: $$$
Client OS: Windows
Deployment: On-Premises

Key Features of SAP ERP

Most SAP ERP products include:

  • Financial tools: This includes features like a general ledger and accounts payable/receivable.
  • Sales forecasting: Enables users to gain insight into potential sales based on historical records.
  • Manufacturing: This can include scheduling, Bill of Materials (BOM), and inventory control.
  • Supply chain management: Tracks product movement along the supply chain and manages warehouse stock.

Alternatives

As popular as SAP is, it’s not always a right fit for businesses seeking ERP software. Some top alternatives include:

  • JD Edwards: JD Edwards ERP solutions, distributed by Oracle, offer an integrated suite of user-friendly business applications to streamline work. Two solutions, EnterpriseOne and World, focus on different industries.
  • NetSuite: NetSuite ERP integrates business accounting, CRM and eCommerce capabilities. Hundreds of third-party add-ons make it highly customizable and suitable for multiple industries.
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