SAP stands for Systems, Applications and Products in Data Processing. This is the company that has been steadily developing the product since it was formed in 1972. R/3 indicates that this is Release 3 of the software.
SAP R/3 is designed to handle all of the business management tasks of a company. Some particular examples that you will see are: the payment of invoices, the management of production resources and the control of financial accounts.
SAP R/3 handles these tasks using application modules, usually known simply as modules. The modules are often referred to by their initials. For example, SD is Sales and Distribution. MM is Materials Management.
The modules process information from all parts of the organization. Since R/3 works within one system, this information is shared between modules despite any existing organizational limitations of a company.
R/3 works with a common database. This means that information which is entered into the system by one part of the organization is immediately accessible to all other parts of the organization. Everyone is always up to date.
The R/3 System is designed primarily to meet the needs of mid-sized businesses up to large corporations. However, the adaptability of R/3 makes it a sound investment for smaller businesses, enabling them to grow without ever having to change their system.
