Understanding Business Management

SAP R/3 Architecture and Conceptual Area

SAP (Systems Applications Products for data processing) is an ERP software. It was developed in Germany by the company named SAP.


SAP R/3 system is to provide a suite of tightly integrated, large scale business applications. Following are the standard set of applications or functional module in R/3 system:

- PP (Production Planning)
- SD (Sales and Distribution)
- MM (Material Management)
- FICO (Finance and Controlling)
- AM (Fixed Asset Management)
- PS (Project System)
- WF (Work Flow)
- IS (Industry Solution)
- HR (Human Resource)
- PM (Plant Maintenance)
- QM (Quality Management)

You can learn about the functional areas in details by reading the R/3 online reference. It contains tutorials and information for all the functional areas.

System Architecture

There are three servers in SAP R/3 architecture.

Presentation server is actually a program named sapgui.exe. It is usually installed on a client machine. User can interact with the system with the help of this server. Application server is a set of executables that collectively interpret the ABAP/4 programs. Database server is a set of executables that accept database requests from the application server.

In three-tier client/server architecture the presentation servers, application servers and database severs all run on separate machines. For large systems this is the most common configuration and is common in production.

In two-tier client/server architecture, the presentation and application severs are combined and the database server is separate. This configuration is used in conjunction with other application server.

Conceptual Area

Following are the three conceptual areas in the R/3 system-

- The Application Area
- The Basis Area
- The Development Workbench

In the Application area, you initiate transactions for the functional areas within R/3. In the Basis area, you can run transactions that monitor the R/3 system itself. The Development workbench is used to create and test ABAP/4 program.

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