The SAP Enterprise resource planning (ERP) integrates internal and external management information across the entire organization, embracing finance/accounting, manufacturing, sales and service, etc. ERP system automates this activity with an integrated computer-based application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.

ERP system includes the following characteristics

• An integrated system that operates in (next to) real time, without relying on periodic updates.
• A common database that supports all applications.
• A consistent look and feel throughout each module.
• Installation of the system without elaborate application/data integration by the Information Technology (IT) department.

Functional areas covered by the SAP ERP

• Finance/Accounting
• General ledger, payables, cash management, fixed assets, receivables, budgeting, consolidation
• Human resources
• payroll, training, benefits, recruiting, diversity management
• Manufacturing
• Engineering, bill of materials, work orders, scheduling, capacity, workflow management, quality control, cost management, manufacturing process, manufacturing projects, manufacturing flow, activity based costing, Product lifecycle management
• Supply chain management
• Order to cash, inventory, order entry, purchasing, product configurator, supply chain planning, supplier scheduling, inspection of goods, claim processing, commissions
• Project management
• Costing, billing, time and expense, performance units, activity management
• Customer relationship management
• Sales and marketing, commissions, service, customer contact.
• Data services
• Various "self-service" interfaces for customers, suppliers and/or employees
• Access control
• Management of user privileges for various processes