SAP S/4HANA Modules: Full Guide

Table of contents

• SAP S/4HANA Core Modules
• Industry-Specific Benefits of SAP S/4HANA Modules

SAP S/4HANA is a powerful enterprise resource planning (ERP) suite designed to drive business innovation and efficiency. Its modular structure allows businesses to adopt and customize functionalities based on their unique needs. In this guide, we will explore the various SAP S/4HANA modules, providing a comprehensive overview of their features and benefits.

Whether it’s optimizing production in manufacturing, managing sales in retail, or ensuring precision in healthcare, SAP S/4HANA delivers industry-specific benefits that help businesses stay competitive and responsive to market changes.
Next, let’s understand various SAP S/4HANA modules and uncover their key features and benefits. Understanding these modules will provide valuable insights into how SAP S/4HANA can transform your business operations and drive efficiency across all facets of your organization.

SAP S/4HANA Core Modules

SAP S/4HANA modules cover different functionalities of business operations. The specific modules can vary or be suitably customized depending on the version and the unique needs of the organization. Now,let’s discuss them one by one.

Finance (FI)

The Finance module is at the heart of SAP S/4HANA, providing comprehensive financial management capabilities.

The Finance module is essential for managing all financial operations within a business. It includes:

• General Ledger (GL): Maintains comprehensive financial records.
• Accounts Payable (AP): Manages vendor invoices and payments.
• Accounts Receivable (AR): Oversees customer invoices and collections.
• Asset Accounting (AA): Tracks and manages fixed assets.

This module supports real-time financial processing, compliance, and financial planning and analysis.

Controlling (CO)

The Controlling module focuses on internal reporting and management accounting. It covers:

• Cost Element Accounting: Monitors cost elements for reporting.
• Cost Center Accounting: Manages cost centers to control expenses.
• Profit Center Accounting: Tracks profitability of different business segments.
• Internal Orders: Oversees internal projects and spending.
• Product Costing: Calculates costs of products and services.

This module aids in cost tracking, budgeting, and optimizing financial operations.

Materials Management (MM)

Materials Management handles procurement and inventory processes, including:

• Procurement: Manages requisitions, purchase orders, and goods receipts.
• Inventory Management: Tracks and controls inventory levels.
• Material Valuation: Manages material valuation and accounting.

This module ensures efficient procurement and inventory management.

Sales and Distribution (SD)

Sales and Distribution manages the sales process from order creation to billing. It includes:

• Sales Order Management: Oversees customer sales orders.
• Pricing: Defines pricing strategies and conditions.
• Shipping and Transportation: Manages order fulfillment and logistics.
• Billing and Invoicing: Handles customer billing and invoicing.

This module integrates with other functions to ensure seamless sales operations.

Production Planning (PP)

Production Planning supports manufacturing processes and planning activities. It includes:

• Production Orders: Manages and tracks production processes.
• Material Requirements Planning (MRP): Oversees material procurement and production planning.
• Shop Floor Control: Monitors shop floor activities.

This module helps in effective resource utilization and production scheduling.

Quality Management (QM)

Quality Management ensures that products meet quality standards. It involves:

• Quality Planning: Defines quality control plans.
• Quality Inspection: Conducts quality inspections and tests.
• Quality Notifications: Manages quality-related issues.

This module helps maintain high product quality and regulatory compliance.

Plant Maintenance (PM)

Plant Maintenance oversees the maintenance of physical assets. It includes:

• Maintenance Planning: Schedules equipment maintenance.
• Maintenance Orders: Executes maintenance tasks.
• Asset Management: Tracks and manages physical assets.

This module ensures optimal asset performance and longevity.

Human Resources (HR)

The Human Resources module handles all HR-related activities, including:

• Personnel Administration: Manages employee data.
• Organizational Management: Defines the company’s organizational structure.
• Payroll: Calculates employee salaries and wages.
• Time Management: Tracks working hours.
• Talent Management: Manages recruitment, training, and performance.

This module supports efficient workforce management.

Supply Chain Management (SCM)

Supply Chain Management manages the entire supply chain process. It includes:

• Advanced Planning & Optimization (APO): Supports demand and supply planning.
• Extended Warehouse Management (EWM): Manages warehouse operations.
• Transportation Management (TM): Handles transportation planning and execution.

This module ensures efficient supply chain operations.

Project Systems (PS)

Project Systems is an integrated project management tool. It includes:

• Project Planning: Plans and structures projects.
• Project Execution: Manages project activities and resources.
• Project Controlling: Monitors project costs and progress.

This module helps manage complex projects efficiently.

Customer Relationship Management (CRM)

Customer Relationship Management integrates with SAP S/4HANA to manage customer interactions. It includes:

• Sales Activities: Manages sales processes.
• Order Management: Handles customer orders.
• Customer Feedback: Gathers and analyzes customer feedback.

This module enhances customer relationships and supports sales.

Enterprise Performance Management (EPM)

EPM integrates with SAP S/4HANA to provide comprehensive tools for planning, budgeting, forecasting, and financial consolidation. Our EPM solutions help organizations align strategies with execution, ensuring that business objectives are met efficiently and effectively.

Key features of our EPM solutions include:

• Strategic Planning: Aligning organizational goals with operational plans.
• Budgeting and Forecasting: Enhancing financial accuracy and agility.
• Financial Consolidation: Streamlining financial reporting processes.
• Performance Analysis: Providing insights for informed decision-making.

By implementing EPM, businesses can achieve greater transparency, improved financial performance, and better decision-making capabilities.

Investment Management (IM)

Investment Management tracks and monitors investment activities and capital expenditures. It includes:

• Capital Budgeting: Manages budget allocations.
• Investment Planning: Plans investment activities.
• Project Evaluation: Evaluates investment projects.

This module supports effective investment management.

Customer Service (CS)

Customer Service manages customer equipment maintenance. It includes:

• Equipment Management: Tracks and maintains customer equipment.
• Service Order Management: Manages service orders.

Industry-Specific Benefits of SAP S/4HANA Modules

SAP S/4HANA modules offer a suite of advanced capabilities tailored to meet the unique demands of various industries. These modules provide comprehensive solutions that enhance efficiency, streamline processes, and drive innovation across multiple sectors. Whether it’s optimizing production in manufacturing, managing sales in retail, or ensuring precision in healthcare, SAP S/4HANA delivers industry-specific benefits that help businesses stay competitive and responsive to market changes.

Manufacturing

For the manufacturing sector, SAP S/4HANA modules offer comprehensive solutions for managing production processes, ensuring optimal resource allocation, and streamlining supply chain operations. The Production Planning (PP) module enables precise capacity planning and efficient billing management. Additionally, Plant Maintenance (PM) ensures seamless equipment management, reducing downtime and optimizing operations.

Retail and Consumer Goods

In the retail and consumer goods industry, customer-centric operations are paramount. The Sales and Distribution (SD) module in SAP S/4HANA allows businesses to effectively manage sales processes, from order processing to delivery and billing. This ensures a seamless transactional process, enhancing customer satisfaction and loyalty.

Healthcare

In healthcare, precision and efficiency are critical. SAP S/4HANA modules facilitate effective management of resources, from personnel to inventory, through the Human Capital Management (HCM) and Materials Management (MM) modules. This ensures that healthcare providers can deliver quality care while managing costs effectively.

Professional Services

For professional services firms, effective project management is essential. The Project Systems (PS) module aids in the streamlined monitoring of project-related activities, ensuring deadlines are met and resources are optimally allocated. This leads to improved project outcomes and client satisfaction.

Financial Services

In the financial services sector, data accuracy and compliance are paramount. The Controlling (CO) module provides comprehensive insights into the financial performance of various business units, enabling data-driven decision-making. Additionally, the Finance (FI) module ensures accurate accounting and financial reporting.

High-Tech and IT Services

In the rapidly evolving high-tech and IT services industry, agility and innovation are key. SAP S/4HANA modules support efficient procurement, inventory management, and goods issue processes through the Materials Management (MM) module. This enhances the efficiency of the supply chain, enabling businesses to adapt quickly to changing market demands.

Energy and Utilities

For the energy and utilities sector, effective maintenance of assets is crucial. The Plant Maintenance (PM) module ensures efficient management of inventory and equipment, reducing downtime and optimizing operations. This leads to improved reliability and productivity in the field.

Overall, SAP S/4HANA modules play a vital role in driving digital transformation across various industries. By leveraging these intelligent ERP solutions, your company can enhance efficiency, foster innovation, and achieve sustainable growth.

If you’re a forward-thinking leader ready to elevate your enterprise with SAP S/4HANA or seeking to optimize your digital transformation journey, connect with ITP’s experts today. With over 31 years of industry experience, ITP stands at the forefront of digital transformation and business process management. With over than 100 projects in 18 countries, ITP’s expertise spans a diverse range of industries, including manufacturing, finance, and retail. We specialize in delivering cutting-edge IT solutions and consulting services, including SAP S/4HANA implementation, process optimization, and digital workplace solutions.