SAP - Consistent Frozen Solutions has sent a JOB OFFER!!!! THANK YOU, LORD!!

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Last updated 1:23 PM on 7/12/26
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7 Terms

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What is SAP?

SAP stands for Systems, Applications, and Products in Data Processing.

It is an Enterprise Resource Planning (ERP) software that helps companies manage different business processes in one integrated system.

Instead of every department using separate software, SAP allows all departments to use one centralized database.

For example:

  • Sales records a customer order.

  • Warehouse prepares the products.

  • Accounting creates the invoice.

  • Finance records the payment.

Everyone is looking at the same information.


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Why do companies use SAP?

Because it helps companies:

  • Record transactions accurately

  • Reduce manual work

  • Minimize errors

  • Generate reports quickly

  • Monitor finances in real time

  • Improve communication between departments

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SAP Modules (5)

1. SAP FI (Financial Accounting)

This is the accounting module.

It handles:

  • General Ledger

  • Accounts Payable

  • Accounts Receivable

  • Bank Accounting

  • Financial Statements

2. SAP CO (Controlling)

Used for internal cost management.

Examples:

  • Budgeting

  • Cost centers

  • Profit analysis

Managers use this to monitor company costs.


3. SAP MM (Materials Management)

Used for purchasing and inventory.

Examples:

  • Purchase Orders

  • Goods Receipts

  • Vendor Management

Accounts Payable works closely with MM.

Example:

Purchasing creates a Purchase Order.

Warehouse confirms goods were received.

Accounting verifies the invoice.


4. SAP SD (Sales and Distribution)

Used for customer sales.

Examples:

  • Sales Orders

  • Customer Invoices

  • Deliveries

Collection staff often work with information from SD.


5. SAP HCM (Human Capital Management)

Handles:

  • Payroll

  • Employee records

  • Leave

  • Attendance

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Fiscal Year

The accounting year used by the company.

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Common SAP Transactions

Transaction

Purpose

Create Vendor Invoice

Record supplier invoices

Display Vendor Account

View vendor transactions

Post Incoming Payment

Record customer payment

Display Customer Balance

View outstanding receivables

General Ledger Posting

Record journal entries

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Advantages of SAP

  • Accurate financial records

  • Real-time reporting

  • Less paperwork

  • Faster processing

  • Better audit trail

  • Strong internal controls

  • Integration across departments

  • Reduced duplicate data entry

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Key Points to Remember for Your Interview

  • SAP is an ERP (Enterprise Resource Planning) system.

  • It integrates accounting, purchasing, inventory, sales, and HR into one platform.

  • SAP FI is the main module for financial accounting.

  • Accounts Payable commonly works with Purchase Orders (POs), Goods Receipts (GRs), and Invoices using three-way matching.

  • Collections and Accounts Receivable teams use SAP to monitor customer balances, record payments, and track overdue accounts.

  • Every transaction is posted in SAP and assigned a unique document number for easy tracking.

  • As a fresh graduate, it's perfectly acceptable to say you haven't used SAP yet—as long as you demonstrate that you understand its purpose and are eager to learn.