SAP Configuration


What Is SAP Configuration?

Installing and configuring an SAP system, particularly an ERP system, can be a complex and time-consuming task. While SAP Basis teams manage the installation itself, SAP systems are standard software that has nothing in place that is developed specifically for your organization. This is where SAP Configuration becomes important to the process since every company has its own specific way of posting and creating purchase orders, sales orders, or any of their other day-to-day tasks.

What Is SAP Configuration?

Installing and configuring an SAP system, particularly an ERP system, can be a complex and time-consuming task. While SAP Basis teams manage the installation itself, SAP systems are standard software that has nothing in place that is developed specifically for your organization. This is where SAP Configuration becomes important to the process since every company has its own specific way of posting and creating purchase orders, sales orders, or any of their other day-to-day tasks.

Configuration is not coding, nor is it customization which involves changing standard features. It is a part of the implementation of a system that allows you to specify information like currency, language, organizational structure, function, and processes. SAP software is designed in such an open way to let you configure it the way your organization needs it to be set up. You can define how your company runs, since it’s your processes. While SAP introduced the concept of the SAP Model Company in 2019, which included preconfigured end-to-end processes, business content, and industry specific accelerators to streamline the implementation of SAP S/4HANA and SAP SuccessFactors, organizations still have the capability to configure an SAP system exactly how they want it to look.

Key Considerations for SAPinsiders

  • You can use tools like SAP Solution Manager to accelerate and manage the configuration of your SAP systems. Rather than having to use different transactions or configuration files to go in and make configuration changes to your SAP systems, a tool that SAP supplies in order to readily manage configurations across multiple systems is SAP Solution Manager. Managing a configuration from SAP Solution Manager allows you to control access to the configuration as well as document the process. It also allows you to preserve configuration states, support testing, and manage delivery of configuration to different systems around the organization.
  • The SAP Model Company can help accelerate your configuration when it comes to the move to SAP S/4HANA. While organizations have always had the ability to configure their SAP systems so that they support the way their individual organization works, there has always been a debate between those who prefer fit to standard, using a standard out-of-the-box solution with as few changes as possible, to a fit-to-requirement model which involves a highly customized solution that very much fits the specific needs of a given organization. Leveraging the SAP Model Company provides a pre-configured reference example of a fit-to-standard implementation that can both streamline and accelerate an SAP S/4HANA deployment, while making SAP configuration considerably easier.

970 results

  1. Prepare for IFRS with the Starter Kit for IFRS for SAP BusinessObjects Financial Consolidation

    Published: 18/August/2009

    Reading time: 14 mins

    The adoption of International Financial Reporting Standards (IFRS) as part of a global international accounting convergence can be expensive for your company because it is an implementation rather than just an accounting or reporting project. Learn about the latest starter kit from SAP for its SAP BusinessObjects Financial Consolidation application, which can speed up and...…

  2. Implement Configurable Material to Optimize the Procurement Process

    Published: 11/April/2014

    Reading time: 9 mins

    The variant configuration functionality in SAP ERP enables companies to manage a large number of a product’s variants efficiently without maintaining massive master data. However, a lesser-known and lesser-used derivative of variant configuration is configurable material, which enables a procurement person to procure different variants or variations of the same material without the need for...…

  3. How to Integrate Enterprise Systems and an MES Using SAP MII

    Published: 29/April/2015

    Reading time: 31 mins

    Learn how to develop a composite application in SAP Manufacturing Integration and Intelligence (SAP MII) by mashing up data from ERP and a manufacturing execution system (MES). See how to leverage message services and business logic services for ERP and MES integration. Key Concept The information required for manufacturing execution may come from different systems...…

  4. payroll

    A look at SAP SuccessFactors Payroll Control Center Manage Configuration  

    Published: 10/November/2022

    Reading time: 5 mins

    In 2021 SAP SuccessFactors delivered a new experience for how to configure the payroll control center application. SAP has delivered multiple enhancements throughout 2022 including game changing pre-delivered content that makes it much easier for customers to get up and running. Read this article to understand the key functionality including the latest and greatest innovations.…

  5. How to Build a Strong Security and Compliance Foundation for Your SAP Landscape

    How to Build a Strong Security and Compliance Foundation for Your SAP Landscape

    Published: 06/November/2020

    Reading time: 19 mins

    While most successful cyberattacks are carried out on a company’s application layer, many security departments see the SAP application layer as a “black box,” and its security as the responsibility of their Basis or SAP application colleagues or of a service provider, making the security of this layer a blind spot within many organizations. Compounding…

  6. Quickly Develop SAPUI5 Applications with AppBuilder

    Published: 09/October/2014

    Reading time: 17 mins

    Ameya Pimpalgaonkar shows how to use AppBuilder, which is a proof-of-concept tool that SAP has released to help developers adopt SAPUI5. Key Concept SAP AppBuilder is a browser-based tool for rapid SAPUI5 application development. It allows you to concentrate on application functionality rather than worrying about user interface (UI) design by providing UI drag-and-drop features....…

  7. SAP Labs Singapore Fuels AI Innovation Through Talent and Strategic Partnerships

    SAP Showcases New AI Customers Across APAC

    Published: 06/February/2025

    Reading time: 3 mins

    During SAP’s FY2024 earnings call, strong cloud revenue growth, particularly in the Asia Pacific and Japan region—attributed to the increased adoption of AI in 50% of deals—was highlighted, showcasing the company’s commitment to embedding 400 AI use cases by 2025 and emphasizing the significant impact of Business AI on various organizations throughout the region.

  8. Understanding Service Level Agreements in Service Desk

    Published: 26/August/2011

    Reading time: 17 mins

    Manager See how the configuration of Service Level Agreements (SLA) works in SAP Solution Manager, with a specific focus on how information moves among configuration objects. Knowing how the objects involved interact allows you to not only perform more effective configuration but also solve problems should anything go wrong. Key Concept SAP Solution Manager’s Service...…

  9. How to Use Standard Configuration to Assign Fiscal Year Periods to Quota Banks

    Published: 15/July/2010

    Reading time: 12 mins

    Does your organization require quota entitlement banks for an accrual period that is not a part of the standard SAP system settings? You don’t have to create custom ABAP enhancements or write custom personnel calculation rules. With a few simple configuration steps, you can create quota entitlement banks for time evaluation by establishing a fiscal...…

  10. Repetitive Cost Accounting in a Production and Process Order Environment

    Published: 27/February/2015

    Reading time: 21 mins

    Learn how to configure and use product cost collectors (repetitive) to capture and control production and process order costs. Key Concept A hybrid order type for production moves the cost object from the production or process order to a product cost collector. This enables the use of orders for control of production and the aggregate...…