How Does SAP Integration Work?

July 14, 2022
Ann Oliver

SAP is a technology company headquartered in Walldorf, Germany. The company’s software manages and integrates financial, manufacturing, and operations processes. It allows companies or organisations to customise and manage their applications from the SAP platform.

If you’re using SAP and want to know how it integrates with other systems, check out the SAP cloud integration – a definitive guide to learn how it works. It also guides you when choosing the correct SAP integration solution for your company.

What is SAP Integration?

It is the data conversion process from an application or software, making it readable on SAP. Most organisations gather data from their departments, especially sales, marketing and Research and Development, and use it for product improvement.

How Does SAP Integration Work?

Data from the field comes raw and needs processing to get actionable information. Each SAP system has modules that compose the data for conversion and integration. They include Sales and Distribution, Material Management, Project Systems, Financial Accounting, and Quality Management. The organisation then uses this information for resource planning, which creates operation systems and processes for better management.

Below is the SAP Integration Procedure

  1. Clean your data – irrespective of your data source, you should ensure that it does not have gaps or duplicates and represent the actual information.
  2. Identify the conditions for its usage – in SAP processing, each condition represents an activity or step that predetermines the eventual outcome. If it is pricing, conditions factored include list price, invoice price and net price. Other conditions include the type of customers, sales regions and product volumes. Define these conditions from the start to benefit from the SAP integration.
  3. The system integrates the data and offers usable information depending on the request. Pricing systems are preferred in this case as they give the exact selling figure. Product distribution is also clear since the system gives out the number of products per region, based on the type and number of customers.

Ensure you get an SAP technician who understands enterprise resource planning software. It helps if the technician is in-house as they can combine SAP technicality and the company’s operations. The product is information that aligns with the company’s vision.

Benefits Of Sap Cloud Integration

  • Central Management system – data from every department goes to a central SAP database, which helps quantify every activity in the organisation. Decision-makers use this data to craft strategies for the business.
  • Human Resource compliance – you can easily track the activity and performance of every resource in the organisation.
  • Reduce IT costs – organisations using different software for different activities incur more to operationalise their business. With SAP, you have everything you need under one roof for easier and cost-effective data management.
  • The operations department can provide timely and accurate answers, especially when dealing with fast-moving consumer goods. They have all the information at the click of a button.
  • Reduced information complexity in decision making. Raw data from the field does not have direct pointers to problems or solutions. Since there are several data sources, managers cannot conclusively come up with informed decisions based on the scattered data. SAP consolidates data from all its modules, cleans it up and simplifies it for easy decision-making.

SAP Integration Tools and Technologies

iPaaS

The SAP Integration Platform as a Service (iPaaS) offers the SAP cloud service that offers the medium for data processing and service-oriented architecture. You can integrate data in real-time, both cloud-to-cloud and cloud-to-premise.

SAP Middleware

SAP Middleware is a tool built in the customer relationship management (CRM) system that interacts with other SAP modules. It can also gather data from other third-party software and harmonise it for integration.

SAP APIs

They are tools and protocols pre-set by SAP that help integrate its modules and other third-party software. Essentially, they are command centres that gather data from different sources in a specific form for SAP integration.

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