At the heart of the manufacturing LOB is SAP's Production Planning module, another carryover from ECC. Manufacturing encompasses production planning and execution, quality management and anything else having to do with turning raw materials into finished goods. SAP Ariba, a procurement and supply chain collaboration platform, can operate as a standalone product but is tightly integrated with SAP's Sourcing and Procurement LOB. The functions within this LOB include service agreement management, spend analysis, supplier and category management, sourcing, contract management, operational procurement and invoice management. This LOB addresses purchasing and procurement processes from start to finish and is tightly integrated with manufacturing and supply chain functions. As with many of the modules in S/4HANA, MM and SRM are carryovers from SAP's legacy ECC product. Sourcing and Procurement incorporates the Materials Management (MM) and Supplier Relationship Management (SRM) modules.
This LOB also addresses governance, risk and compliance from a financial perspective. The Finance LOB also includes the Investment Management module, which helps guide decisions with respect to investment in fixed assets. Customers migrating to S/4HANA from ECC may need to transition from SAP's "classic GL" to the so-called "new GL," as S/4HANA only supports the latter. FICO is a natural starting point for most customers implementing SAP for the first time. FI and CO, which comprise the core of most customers' SAP systems, are often referred to as "FICO." This nomenclature dates back to the early days of SAP. The core elements of the Finance LOB are embodied in the Finance (FI) and Controlling (CO) modules, as well as the Treasury Management (TM) module. Think of LOBs as logical groupings of SAP modules that correspond to broadly defined business functions within your organization.įinance encompasses everything having to do with financial management in the business, including general ledger (GL) accounts payable and accounts receivable financial planning and analysis, controlling, treasury and risk management and financial closing and consolidation.
In this article, I'll provide an overview of the primary SAP S/4HANA modules, organized into the LOB groups defined by SAP.
SAP has reorganized its concept of ERP modules around "lines of business" (LOBs) within S/4HANA. That has been especially true in recent years, as the company has rolled out a new generation of its flagship ERP, reconfiguring many of the modules from the old SAP ERP Central Component (ECC) product. To make matters even more challenging, SAP's portfolio is constantly evolving, leading to a near-constant stream of name changes and new acronyms. That complexity has spawned an alphabet soup of SAP products and modules that can be especially confusing, even to those who are quite familiar with the company's products.
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