SAP is translation of the German term Systeme, Anwerndungen und Produkte in der Datenverarbeitung. It was developed y SAP AG, Germany. The basic idea behind developing SAP was the need of standard application software that helps in real-time business processing . The development process began in 1972 with five IBM employees, Dietmar Hopp, Hans-werner, hasso Plattner, Klaus Tschira, and Claus Wellenreuther in Mannheim, Germany. A year later, the first financial and accounting software was developed; it formed the basic for continuous development of other software components, which later came to be known as the SAP R/1 System. Here, R stands for the real-time data processing and 1 indicates single-tier architecture, Which means that the three networking layer networking layer, Presentation, Application, and database, on which the architecture of SAP depends, are implemented on a single system.