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SAP 2007 / Page 1

BASIC BUSINESS PROCESS using SAP Business One

GETTING STARTED

Choose CompanyAdministrationFinancialsSales OpportunitiesSales A/RPurchasing A/PBusiness PartnersBankingInventoryProductionMRPServiceHuman ResourcesReportsModulesDrag & RelateOEC ComputersSales managerMain MenuMy MenuCompany UserAdministration Choose CompanyServerCompany Databases

You navigate through SAP Business One using the main menu. The main menu arranges the functions of the individual applications in a tree structure. The company name and the name of the current user display at the top left. Choose Administration Choose Company to change the server, that stores the company data. The companies stored on the selected server display in a table. As long as your user exists in a company, you can switch directly to a different company. You can also change users without having to exit the system.One reason why you might use multiple companies:One reason why you might change a user: SDCA TTP Refresher

Menu Bar and ToolbarFileEditDataGotoToolsWindowHelpPrint PreviewPrintSend E-mailSend SMSSend FaxExport to MS-EXCELExport to MS-WORDLaunch ApplicationLock ScreenGeneralFor navigating between data recordsMenu BarViewModules

FindAddFirst Data RecordPrevious RecordNext RecordLast Data Record

ToolbarExport to PDF

The SAP Business One menu bar displays at the top of the screen. The menu bar contains the Windows standard menu (File, Edit, Window, Help) as well as generic SAP Business One functions.The toolbar displays under the menu bar. The toolbar is a collection of icon buttons that grant you easy access to commonly-used functions. The functions represented by the buttons are also available in the menu bar. Active functions appear in color, and inactive functions gray out. You can choose the toolbars that will be displayed or hidden. To hide or show a toolbar, right-click in the toolbar area and check or uncheck the appropriate toolbar.

SDCA TTP Refresher

Business Partner Master DataFunctions in a FormCtrl+Double-ClickOriginal Description:

New Description:

Mobile Phone? BoldItalics

Selection ListDropdown List

Link ArrowCodeNameCurrenciesTel 1Tel 2Mobile PhoneFaxEmailCustomer

The graphic shows the form of the customer business partner master. This form serves us as an example to explain some of the generic functions within any form in SAP Business One.SAP Business One offers two input tools:Selection list: Choose the icon left of the field to open a new window with a list of all possible entries.Dropdown list: Choose the icon to the right of the field to open a dropdown list with all possible entries.The link arrow is a very powerful tool. It allows you to open windows with related information.If a user has the proper authorization, he or she can change field labels by selecting the Ctrl key and double-clicking the label at the same time.At the bottom of every screen, you will find the status bar that always shows the name, length, and contents of the current field. Furthermore, if you enable the View System Information menu item, the system also displays some technical information about the field, which you can use for creating queries or formatted searches or which you may need if you are working with the Software Development Kit. You can use the four fields on the right to display additional data for an object. The system displays this data when you use the object in the active window. This means, for example, that you can display the customer's telephone number while you are entering an order.Note: Master Data opens in Add mode. Change to Display mode to search for data. For documents, the modes are reversed.SDCA TTP RefresherPersonalize windows and settingsUser-defined Shortcuts

User-defined MenuFormsReportsQueriesLinksModulesDrag & RelateMy MenuOEC ComputersSales ManagerMain Menu

OKCancelListAllocationShortcutCurrent WindowF2ModuleWindowAdministrationFinancialsSales OpportunitiesSales A/RPurchasing A/PBusiness PartnersBankingInventoryProductionMRPServicePurchase OrderGoods Receipt POGoods ReturnA/P Down Payment RequestA/P Down Payment InvoiceA/P InvoiceA/P Credit MemoA/P Reserve InvoiceLanded CostsDocument PrintingPurchasing ReportsAllocateRemoveCustomizeUnder Tools My Shortcuts Customize, the system allows you to assign the function keys F2 through F12 to your most used transactions. You can then start these transactions simply by hitting the respective function key. The function key F1 is reserved for accessing online help.Furthermore, every user can create a personalized menu containing favorite transactions and frequently-used queries. Choose Tools My Menu to maintain your user menu.User Defaults can be set for each user. You can change the settings for columns in a document for each user. Once you make the settings, these defaults will be applied automatically each time this user logs in.

SDCA TTP Refresher

AdministrationFinancialsSales OpportunitiesSales A/RPurchasing A/PBusiness PartnersBankingInventoryProductionMRPServiceHuman ResourcesReportsModulesDrag & RelateOEC ComputersSales managerMain MenuMy MenuCustomize Main Menu

Form Settings Main Menu Administration Financials Sales /AR ...Display only modules and menu items the user is authorized for.Menu ItemManually choosethe menu items you want to display.VisibleApply AuthorizationsEvery system user can determine which modules and menu options will be displayed on his or her main menu.Visible: When this box is checked the module/menu item displays on the main menu. When this box is cleared the module/menu item will not display.Apply Authorization: This button is relevant to normal users only.Normal users, contrary to superusers, can be restricted to certain actions and menu items due to authorizations.By choosing the Apply Authorization button, a regular user can set the main menu to display only authorized modules and menu items.SDCA TTP RefresherMASTER DATA

Master Data ConceptBusiness Partners

Items

AddressesPayment TermsPrice listsControl Account

Inventory AccountsWarehousesItem GroupsItem PropertiesPrice lists

SAP Business One tracks business activities using documents such as purchase orders, invoices, production orders, sales orders, and so on. Each of these documents is constructed from smaller reusable chunks of data called master data. Master data refers to the key information that describes your customers, vendors, and leads as well as items that your company buys and sells. Creating documents from master data increases productivity, ensures data consistency, and reduces errors. It is easy to look up business partner and item information while you are entering sales and purchasing documents. A selection list icon is available in the business partner and item number fields in marketing documents. Use the selection list icon to make a selection list appear. You can scroll through the list or use characters with wildcards to search.SDCA TTP RefresherThree Types of Business Partner Master RecordsAll purchasing transactionsAll sales transactionsSales opportunities Quotations and ordersSales opportunitiesOne or more control accounts for vendorsPossibletransactionsOne or more control accounts for customersPossibletransactionsLeads do not have any effect on accounting.Possibletransactions

VendorsCustomersLeadsThere are three types of business partner master records in SAP Business One: vendors, customers, and leads. You generally use these business partners in specific business processes:You use vendor master records in purchasing to handle all purchasing transactions. Accounting manages the relevant transactions in one or more control accounts.You use customer master records in sales to handle all sales transactions. Accounting manages the relevant transactions in one or more control accounts.You use leads in the Customer Relationship Management (CRM) functions in SAP Business One. You can also create quotations and orders for leads. Leads have the inability to use them in transactions that affect accounting. In other words, you cannot post invoices for a lead. If you want to do so, you first have to convert the lead into a customer. Customers that are also vendors require two master records.You assign the business partner codes externally when you create a new business partner master record. The codes are alphanumeric and must not overlap with the G/L account numbers. The codes must not contain mathematical operators, since these would be misinterpreted by the SQL database. Underscores, however, are allowed.The system always interprets the codes as alphanumeric codes. If you want to establish a numeric sort sequence, you have to make sure that the codes always contain the same number of digits or use leading zeros.

Structure of the Business Partner Master RecordHeader Data

Code Business Partner TypeNameGroupCurrencyAccount BalanceDeliveriesOrdersOpportunities Contact PersonsName

Address

AddressesBill to Address/Pay to Address

Ship to Address

Payment TermsPayment Terms

Discount

Credit Limit

Partial Delivery

Payment& SystemHouse Bank

Payment Method

AccountingConsolidating

Control Account

Dunning

Tax

PropertiesUp to 64 differentBusiness PartnerProperties

Telephone/Fax

Active / On Holdwith Dates

Contact Person

GeneralDetailsText

Photo

Business Partner Master DataThe business partner master record consists of header data and information arranged on several tab pages. The header data comprises the Code, BP type (customer, vendor, lead), Name and Foreign name (for addresses entered in two languages), as well as the Currency. You can arrange your business partners into groups for analysis purposes. The General tab mainly contains information fields, such as telephone numbers, e-mail, password, and so on, as well as default values for documents, such as the buyer or the sales person. You can also specify here that the business partner is valid or frozen for a certain time period. On the Contact Persons tab, you can enter data for any number of contact persons at the customer's company. The system displays the name of the person you define as the standard contact person on the General tab page.The Addresses tab contains the bill to address / several pay to addresses as well as several ship to addresses, which you can specify in the sales documents. The delivery address for purchasing documents is always the address of your company. The Payment Terms tab contains payment data that is used by default in documents. The system takes most of this payment data from the payment terms defined.The Payment System tab contains payment data that is used by the payment system.The Accounting tab contains the Control account and optionally a reference to another master record for the business partner's head office (Consolidating BP). It also contains information on how the VAT is handled.Finally, you can assign certain Properties and an additional picture or text information (Details) to the business partner.General AreaItem NumberDescriptionItem GroupPricesStructure of the Item Master Record Type of Item Bar CodeGeneralPurchasingPurchasing Units of Measurement

Customs Group

Tax Information

Dimensions

Sales Sales Unit ofMeasurement

Tax Information

Dimensions

InventoryCosting Method

Warehouses

Stock Quantities

Cost Price

PlanningPlanning System

Procurement Method

Order Information

Lead Time

PropertiesUp to 64 differentItems Properties

DetailsText

Photo

Manufacturer

Shipping Type

Serial andBatch Numbers

Valid / On Holdwith Dates

Item Master DataThe Item Master Data consists of the general area and seven tabs. Each tab enables you to manage sales and purchase items, warehouse items, and planning data for MRP and Production SAP Business One enables you to manage all the items that you purchase, manufacture, sell, or keep in stock. Services can also be defined as items, although they are only relevant for sales.For each item, you enter the data relevant for a particular area in the system. This data is used automatically by the system for purchasing, sales, production, managing your warehouse, and accounting SAP Business One, therefore, provides optimum support for your business processes. In Sales, it helps you create orders, delivery notes, and outgoing invoices because prices, sales units and gross profit calculate automatically. Using the item data in the system, you can optimize stockholding. You have complete control over stock quantities at all times and can also analyze the financial aspects of stockholding at the same time. The system allows you to control production based on the items that are used for production and based on the finished product and any by-products created.Use the general area to maintain general item information relevant for all types of items.Finding Item Master Records

Regular VendorMfr Catalog No.Purchasing UoMItems per Purchase Unit.............Purchasing Data

Item NumberDescriptionItem TypeItem GroupPrice ListItems Master DataPurchased ItemSales ItemWH Item

Fixed AssetsSearching for an item with a specific catalog number*ball*Example: Searching for all items containing ball in the descriptionYou can use general criteria and procurement, sales, or warehouse information to find an item master record.When you choose the Master Data transaction, SAP Business One launches the find mode.Common Data Structure for Marketing Documents

GeneralDocument DataContentsBusiness PartnerNameContact PersonNo.StatusPosting Date

Item/ServiceItem/Cat. No.Quantity12Ship toPay toShipping TypeLogisticsAccountingJournal RemarkPayment TermsTax Information

Buyer/Sales PersonTotal Before Disc.% DiscountTotal Payment DueRemarksGeneral Information(Footer)Document ContentAll the documents in purchasing and in sales share a similar structure. The documents for sales and purchasing are also often called Marketing Documents.In general the document is divided into:the upper part (header) with the general information,the middle part with the information on different tab pages and the item specific data (you can access more item specific data in the line details by double-clicking a row),and the lower part (footer) with more general information.The middle part contains three tabs:The Contents tab is where all the specific information about the ordered items or services is entered, such as quantity, price, item number, and descriptionThe Logistics tab contains the details about where the items or services as well as payments are to be sent. Shipping method is also specified here. Most of the data is pulled from preconfigured master company details and vendor data.The Accounting tab contains the relevant general ledger (G/L) account information for the purchase pulled from the financial accounting master data.Much of the data appearing in these tabs defaults from the master data. The values can be changed while working in the documents. These changes will affect the document, but do not change the master data records.

SDCA TTP Refresher

Drag&RelateList of all quotations for item M00001Sales / ARDeliveryA/R InvoiceDrag and RelateSales QuotationReturnsA/R Credit MemoSales OrderDelivery DetailsA/R Invoices DetailsSales Quotation DetailsReturn DetailsA/R Credit Memo DetailsSAP Business OneOEC ComputersmanagerSales Order DetailsItem NumberDescriptionItem TypePrice List 01 Purchase Price ListItem GroupM00001Mouse PadItemsAccessoriesItem Master DataForeign Descrip.Drag&Relate is a particularly effective means of linking two business objects to create a query.The screen on the right shows the data in an item master record. If you want to find out which quotations have been made for this item, for example, you simply drag the Item Number field to the Quotations entry in the navigation Drag&Relate tree. The system then displays a list of all the quotations for item M00001. If this list is too long, you can filter the list to display just the results that you are interested in. You can limit the authorizations per user for using the reports: Administration System Initialization Authorizations General Authorizations, select General Drag&Relate

SDCA TTP RefresherPURCHASING PROCESSPurchasing Items: Process Overview

Purchase OrderGoods Receipt POA/P InvoiceOutgoing PaymentSystem ConfigurationPurchasingWarehouse managementProductionInbound logisticsOutbound logisticsMarketing & SalesServiceFinancial controllingMaster dataPurchasing is not just about ordering and paying for pencils and paper clips. Rather, purchasing is the process of ensuring a steady stream of required materials is on the way to your company when and where you need them. As a fully integrated, end-to-end business management application, SAP Business One helps you run the purchasing process, starting with the purchase order and continuing with the rest of the purchasing documents. SAP Business One automatically captures information at each step so you always know whats on hand in inventory as well as the up-to-the-minute financial state of your business. The real-time view helps you identify potential shortages before they happen. Precise historical information keeps track of which vendors come through for you consistently. The graphic shows the basic four-part process of ordering, receiving, and paying for goods or services. The purchase order (PO) is the document you provide to the vendor specifying the items or services you want to purchase, including agreed-to quantities and prices. The goods receipt PO is the document that denotes the delivery of goods from a vendor to a company. It is used to update the inventory quantities and values.The A/P invoice (or A/P voucher) is the document into which accounts payable enters the vendors invoice information and sets up the payment.The outgoing payment is the document which tells the system to send a payment to the vendor. There are, generally speaking, four ways of sending outgoing payments: cash, checks, credit cards, and bank transfers. There are also some additional country-specific payment methods. In SAP Business One, the functionality and reporting associated with processing payments are accessed through the banking module. SDCA TTP RefresherDocument Flow in PurchasingGeneral Ledger(Value)Warehouse(Quantity)123

After a document has been added, you can navigate from a document to preceding and follow-up documents by using the Base Document and Target Document icons.Now that we have finished the first three steps in the procurement process for items, lets review what happens when each document is added.1) Purchase Order: When you enter a purchase order, no value-based changes are posted in Accounting. However, the order quantities are listed in inventory management. You can view the ordered quantities in various reports and windows such as the inventory status report and the item master data window.2) Goods Receipt Purchase Order: When you enter a goods receipt PO, the goods are accepted into the warehouse and the quantities are updated. If your company runs a continuous stock system, SAP Business One creates the relevant postings to update the stock values as well.3) Accounts Payable Invoice: When an incoming invoice is posted, the vendor account is updated in Accounting. If a goods receipt PO is not referenced by the A/P, the stocks also increase when the invoice is posted.

SDCA TTP RefresherPurchase Order

10 printers are currently in stockWe order 5 more from our vendorFive appear on the inventory reports as ordered15 will be available to promise,Although only 10 are physically in stockPurchase Order Definition: A purchase order is a commercial document issued by a buyer to a seller specifying the items (goods or materials) or servicesalong with agreed-to quantities and pricethat the seller will provide the buyer. Accounting and Inventory Effects: When a purchase order is added in SAP Business One, no value-based accounting changes occur. However, the order quantities are listed in inventory management. You can view items and quantities on order in various reports and windows, such as the inventory status report and the Item Master Data window. Obviously, having such real-time access to this information can play a key role in optimizing a companys purchasing and inventory management business processes.How is the information stored in the purchase order used? Normally, when goods are received, purchase orders are matched with packing slips and vendor invoices before the invoices are paid. In SAP Business One, this process is automated: the purchase order can be linked to the goods receipt PO (information from packing slip), which then can be linked to the A/P invoice (information from vendors invoice), allowing information to be consistent and retained throughout the process. You never have to enter data twice.

SDCA TTP RefresherGoods Receipt PO

10 printers are currently in stockWe ordered 5 more from our vendorThe vendor delivers 5After goods receipt, 15 are in stock

Definition of a Goods Receipt PO: In SAP Business One, a goods receipt PO is created when you receive goods from a vendor. In most companies, the person in the warehouse or the office responsible for taking delivery of shipments executes the goods receipt PO. For services, the person for whom the services are rendered usually issues the document.How to create a goods receipt PO: A goods receipt PO can be created new by selecting the document name in the module menu, or it can be built from an existing purchase order. If you are basing your goods receipt PO on an existing PO, you may copy all the data contained in the PO or use the draw document wizard to select the data to copy from one or more existing Purchase orders. Even if you copy all data from an existing PO you can still adjust quantities and pricesas well as dates, vendor, and item informationbefore you post (add) the document. Regardless of how you create your goods receipt PO, there should be no differences between the data in the goods receipt PO and the vendors shipping document (packing slip) sent with the items, because the details in the vendors document are legally binding. If there are any discrepancies between the base PO data and the vendors shipping document, you should resolve them with the vendor before you post your goods receipt PO.Accounting and Inventory Impact of a Goods Receipt PO: It is essential that the quantities and prices in your goods receipt PO match the vendors shipping document. Unlike a purchase order, a goods receipt PO cannot be amended after it has been added to SAP Business One because it triggers both inventory and (when using perpetual inventory) accounting transactions.

SDCA TTP Refresher

Two options to create a follow-up document: Copy to/ Copy fromCopy to Copy fromOpen saved document to copyAll items copied to new documentNo options available on how items are copiedHowever, you can delete items and adjust quantities after copyingEnter business partner in a new documentChoose one or multiple documents from a listDraw document wizard allows you to:customize rows and quantities copiedselect the exchange rate to usePurchasing documents build on each other. Often, a purchase order becomes a goods receipt PO that records the vendors delivery and finally an A/P invoice when the vendors bill is received. You can quickly copy a document to the next document in the sequence using the Copy To button. The original document is called a base document; the document you create from it is called a target document. Building one document from another saves time and effort. It also reduces the possibility of errors.When you copy all of a base documents items and quantities, it will be closed and you will not be able to copy it again to another document. The other method for copying a document is Copy from. The Copy From button allows you to select a base document or documents from which to create a new document. Clicking Copy From starts the draw document wizard.Often the first step in building one document from another is locating the base document you want to use. For example, goods may be delivered to a warehouse and a goods receipt PO needs to be entered. How do you find the relevant purchase order? One tool for locating such documents quickly is the Open Items List. The report shows all open documents of the type you select in the drop-down list in the upper right. You can then select the relevant purchase order, for example, and create a goods receipt with a single click on the Copy To button. When one document is built from another in this fashion, all the relevant information is copied from the base document to the new document, reducing both data entry time and errors.

SDCA TTP RefresherEffects of the Goods Receipt PO 14

23

Once the Goods Receipt PO is added to the system it has the following consequences:1) The purchase order (base document) cannot be changed.2) The goods receipt PO creates a journal entry to increase inventory value, and therefore cannot be changed.3) The system updates the stock quantity in inventory.4) Items that have been partially or completely delivered appear in light gray in the purchase order document. When all items are received, the purchase order status changes to Closed.Note: The journal entry is created only when you run perpetual inventory, however the quantity is increased regardless of type of inventory method.SDCA TTP RefresherGoods Receipt PO# 12203 Goods Receipt POPartial Deliveries and Overdeliveries1) Overdelivery2) Add ItemsPurchase Order# 1102153 2 Goods Receipt PO# 1623 # 1234 1Goods Receipt PO# 1423 3) 1st Partial Delivery4) 2nd Partial Delivery

Vendor Y1000Vendor Y1000Vendor Y1000Vendor Y1000Vendor Y1000Sometimes vendors deliver too little or too great a quantity for an item. A vendor might send a different item than was originally ordered. In these circumstances you can adjust the goods receipt PO accordingly to reflect the actual amount received.1) If you refer to a purchase order document when you enter a goods receipt, you can increase (over delivery) the copied quantity.2) You can also add additional items in the goods receipt.3) If you refer to a purchase order document when you enter a goods receipt, you can reduce the copied quantity. This is a partial delivery.4) You can create a second partial delivery.If you do not expect to receive any additional deliveries after the partial delivery, you should close the purchase order so that the open purchase order quantity can be reduced (choose Data Close or right mouse-click Close). The Status of the purchase order will change to Closed. It is only possible to manually close a document with open status that has been partially received or not received. The purchase order is not deleted so you can still display or duplicate the document, but it is no longer available for copying to another document, such as a goods receipt, goods return or A/P invoice.If a purchase order will never be received, then you should cancel the purchase order. You can cancel a purchase order that has never been copied or one that has been partially copied. As with the status Closed, a Canceled purchase order is not deleted. You can still display or duplicate the document, but it cannot be copied to another document.

SDCA TTP RefresherA/P Invoice

You receive an invoice from the vendor for the 5 printersYou enter an A/P invoice to reflect the vendor invoiceThe A/P invoice is the basis for payment to the vendorDefinition of an A/P invoice: An A/P invoice is entered into SAP Business One when you a receive an invoice from the vendor. It will be used to trigger a payment to the vendor.How to enter an A/P invoice: You can create an A/P invoice new by selecting the document name in the module menu or by basing it on one or more POs or goods receipt POs. If you are basing your A/P invoice on one or more existing purchasing documents, you may copy all the data contained in the PO or use the draw document wizard (see Chapter 10) to select the data to copy from one or more existing POs or goods receipt POs. Even if you copy all data from existing purchasing document(s), you can still adjust quantities and pricesas well as dates, vendor, and item informationbefore you post the document.Data entry tip. Use the Document Date field in the A/P invoice header to enter the vendors invoice date. This is important for accounting and auditing reasons as the invoice date and the posting date may differ. You may also wish to change the name of the Vendor Ref. No. field in the document header to Vendor Invoice No. This field prints on the check and allows your vendor to tie the payment to their invoice. Accounting Impact of an A/P Invoice: The posted A/P invoice generates entries in the general ledger and updates the vendor account with the amount owed to the vendor. Inventory Impact when a Goods Receipt PO is not referenced: In those cases where a vendors invoice arrives at the time the items are received, the resulting A/P invoice also increases inventory quantities and values.

SDCA TTP RefresherEffects of the A/P Invoice34

Quantity increases only if no prior goods receipt is referenced.21

Once the A/P Invoice is created in the system it can have the following consequences:1) The Goods Receipt PO increased the stock value earlier. Only if there is no goods receipt PO are the stock values updated when an A/P invoice is entered.2) The A/P invoice creates a journal entry to update the vendors balance to show the amount due.3) You cannot change anything in the A/P invoice that would affect the journal entry once the invoice is added to the system.4) On the goods receipt PO, items that have already been partially or completely invoiced display in light gray. If the invoice is for the full quantity on the goods receipt PO, then the goods receipt PO status changes to Closed.

SDCA TTP Refresher

Payment Processing

We owe the vendor for 5 printersAn A/P invoice has been entered for the amount owedYou create an Outgoing Payment according to payment termsThe journal entry: Reduces cash (credit)Decreases the amount owed to the vendor

After you have entered an A/P invoice, the final step in the Purchasing-A/P process is to trigger the payment to the vendor. The outgoing payment document can be created for the following payment means:cashcheckcredit cardbank transferbill of exchangeOnce the outgoing payment is added, an appropriate journal entry is created. The journal entry reduces the vendors balance.When creating an outgoing payment to clear (fully or partially) a specific document or transaction, an internal reconciliation automatically takes place.Multiple outgoing payments can be created together by the Payment Wizard. Payment wizard runs cover A/P and A/R documents and transactions that are not fully paid, credited, or reconciled, as well as unreconciled/allocated payments on account.When creating outgoing payments, either individually or with the Payment Wizard, you can also partially pay invoices.Payment processing is considered to be part of the Banking Module in SAP Business One.

SDCA TTP RefresherGeneral Ledger(Value)Warehouse(Quantity)Goods ReturnsStock Acc.100100Allocation Acc.

20 scanners were ordered and delivered2 scanners were damaged in transitUse the goods return to return the scanners to the vendor for credit

Stock Acc.Allocation Acc.100 100The Goods Returns is the clearing document for a Goods Receipt PO.When you enter a goods returns, the goods are issued from the warehouse and the quantities are reduced. If your company runs a continuous stock system, SAP Business One creates the relevant postings to update the stock values as well.To reverse a specific Goods Receipt PO, create the goods returns based on it, provided that an A/P Invoice has not yet been created for that Goods Receipt.If you have already entered an A/P Invoice for the transaction, use the A/P Credit Memo function to carry out quantity and value-based corrections in the system.When you return goods to a vendor, goods cannot be received again with reference to the existing documents. When the goods are delivered again, you can either enter a delivery without a reference to a purchase order in the system, or duplicate one of the preceding documents.Beginning with release 8.8, when a Goods Return is created without being based on a previous document, the value of a moving average item is the current item cost calculated for the item and not the unit price entered in the goods return document.SDCA TTP RefresherGeneral Ledger(Value)Credit Memo for Purchasing Allocation Costs Acc.Stock Acc.100100VendorAlloc.100100Stock Acc.Vendor 100 100

Warehouse(Quantity)

50 CD boxes were ordered, delivered and invoiced5 boxes were defectiveUse the credit memo to return items for credit when an A/P invoice existsYou can use the credit memo document for goods returns that the vendor has already invoiced. The credit memo then updates the stock quantities and corrects the values in accounting.You can create a credit memo using services to correct amounts without affecting inventory.When you create the credit memo, the system finds the same accounts that were used to post the invoice and posts a negative value to them.It is a requirement in certain jurisdictions, e.g. Spain, that sales and purchase credit analysis is shown separately in the Profit & Loss account to the normal sales and purchase accounts. Account determination functionality is extended to determine which Profit & Loss accounts are updated on the posting of sales and purchase credit notes. This functionality allows a user to specify different posting accounts for sales revenue and sales credits. It also allows the user to specify different posting accounts for purchase expenditure and purchase credits. If not for any legal requirement this functionality is useful for analysis purposes when seen directly on the face of the chart of accounts.

SDCA TTP RefresherSALES PROCESSSales ProcessSales OrderDeliveryIncoming PaymentA/R Invoice

System ConfigurationPurchasingWarehouse managementProductionInbound logisticsOutbound logisticsMarketing & SalesServiceFinancial controllingMaster dataThe sales-A/R process moves selling the goods (and services) to delivering those goods to invoicing the customer for their purchases. Each of the steps involves a document, such as a sales order , delivery or A/R invoice. SAP Business One efficiently moves all relevant information from one document to the next in the document flow. According to the business needs, you can choose which documents to include as your process steps. The only mandatory document in sales is the A/R invoice.Sales documents carry much of the same information throughout the sales process. This topic helps you recognize what is the same in each document so that you can quickly focus on just the information you need. The sales order is a commitment from a customer or lead to buyat agreed-to quantities and pricea product or service from you.The delivery indicates that the shipment of goods has occurred.The A/R invoice is the only document that must be created in the sales process. It is the request for payment and records the revenue in the profit-and-loss statement.The incoming payment receives the payment from the customer and clears the customer account. Internal reconciliation takes place automatically.A customer or lead is entered for all sales documents.SDCA TTP RefresherGeneral Ledger(Value)Warehouse(Quantity)

Document Flow in Sales 1 2

3

Sales OrderDeliveryA/R InvoiceThe sales process involves the sales order, delivery note, and A/R invoice documents. Sales orders, and delivery notes are optional, but if you do not refer to a delivery note when you post an A/R invoice, the A/R invoice affects your stock.1) When you create an order the Available quantity is reduced and the Committed quantity is increased by the sales order quantity. 2) When you create a delivery the In Stock quantity and the Committed quantity is reduced.3) When you create an invoice the In Stock quantity is reduced if you did not create a delivery note beforehand.When you create a document, you can always refer to one or more documents that you created earlier (except for quotations). When you create a document with a reference to an existing document, only documents that are still open are displayed. All documents, for which you have not created a follow-on document have open status. Open documents remain open until you have transferred all the items to a follow-on document, or until you manually close or reverse them.You cannot make any changes to base documents that you have already copied completely to a follow-on document.Copy rules:Reference to just one base document: The system copies all the header and row data to the target document.Reference to several base documents: The system distributes the total discount from the header data of the base document to the rows and copies it to the rows in the target document.SDCA TTP RefresherLeads and Customers

LeadsUse on pre-sales documents or sales orders Not on deliveries or invoicesCustomersUse on any sales documentConvert leads to customers when they buy

When you identify a potential customer, you can create a lead master data record using the Business Partner Master Data window. This enables you to document and track the presales activities with this lead. You can create the following documents for lead master data: sales quotation, sales order, sales opportunity, and activity.When the lead takes the next step and buys a product or service, the lead becomes a customer. In this case, all you have to do is to change the type of the business partner master record from lead to customer. All the information you have added to the lead master data record is saved, as well as the documents you created for this lead.For example, if you created a sales order for a lead, once the lead becomes a customer and buys the items in the sales order, you can use the sales order as the basis for creating a delivery document and later on an invoice.Because SAP Business One automates so much of the processes related to the sales-A/R process, it is essential that you select or enter the correct customer and item data when you initiate a sales order. For example, things as simple as a customers ship-to and bill-to addresses, if entered inaccurately or incompletely, can have a huge impact on your companys bottom line when goods ordered show up where they are not supposed to or invoices are sent to the wrong office. The tax code and rate is determined based on the ship to assignment, so make sure you select the appropriate ship to address from the drop down list, rather than updating the address manually.

SDCA TTP Refresher

Sales Order

Our customer orders 5 laptopsWe enter customer, items, and quantities in the sales orderThe system determines the price automaticallyA manual discount for 1% is entered in the orderThe customer is also eligible for an early payment discount of 2%How to create a sales order: Select Sales - A/R Sales Order. When master data is set up properly, you enter information in just a couple of fields: Customer: customers and leads can be entered here.Items: enter items and specify quantities.Who uses the information in the sales document: The sales order is an important documentit tells everyone to get busy filling that order. As such, this document is important for planning production, creating purchase orders, and scheduling resources.One unique feature of SAP Business One is that you can create purchase orders directly from sales orders, thereby streamlining your supply chain as well as material requirements planning processes You can change a sales order (changing quantities, updating prices or discounts, and so on) after you have posted it. This is possible as long as you have made the appropriate setting in Document settings and there are no deliveries or invoice documents which reference the sales order.Effect on Inventory and Accounting: In SAP Business One, a sales order affects the available stock level. This means that the stock available to sell is reduced by the quantity in the order. When you enter sales orders, no value-based changes are posted to the G/L, but the items are added to the committed quantity in the inventory module.Canceling a Sales Order: A sales order can be cancelled or closed if it is not needed. It will no longer show in the Open Items List. When an order for items is cancelled or closed, the committed quantity in the inventory module is decreased. You can view the ordered quantities in various reports, such as the inventory status report. This information is important for optimizing sales processes and stock levels.

SDCA TTP RefresherItem Availability Check in Sales OrdersSales OrderA00001Item No.Description Quantity50 01 WHItem Availability Check

Select Action:ContinueChange To Available QuantityDisplay Quantities in Other WarehousesDisplay Alternative ItemsDelete RowIf Order Quantity>Quantity AvailableDocumentPer DocumentAdministration System Initialization Document SettingsSales OrderActivate Automatic Availability CheckDocument Settings1.)2.)3.)

Item No.WarehouseQuantity Ordered Available QuantityA10000150 Pair = 100 pcs10.06.2010 Requested Due Date05.06.201028 pieces Earliest AvailableDisplay Available-to-Promise Report1) You can activate an automatic availability check for sales orders. You do this in Administration System Initialization Document Settings on the Per Document tab page choose the Document Sales Order and select the checkbox for Activate Automatic Availability Check..2) When you create a sales order and enter a quantity for an item, which is greater than the available quantity for this item, the Item Availability Check window comes up automatically. If the automatic availability check for sales orders is not activated through the document settings, you can also always get to the Item Availability Check window by choosing Goto Item Availability Check or with a right mouse click in the item line.3) Item Availability Check Window displays Quantity Ordered: (the quantity from the item line of the sales order per sales unit of measure) and Quantity Available: (the quantity that is available per inventory unit of measure.) Actions in this window include:Continue: Accepts the information and proceeds without changes. Change to Available Quantity: Reduces the order quantity to the available quantity.Display Available-to-Promise Report: Provides an at-a-glance report on stock inflow and outflow including projections. This report is also available directly from the context menu.Display Quantities in other Warehouses: Provides a report where you can check and possibly select the quantities from another warehouse.Display Alternative Items: Allows you to check and select the quantities from an alternative item.Delete Row: Deletes the items row from the sales order.Change to Earliest Availability: this option only appears when the availability date can be calculated. It copies the earliest availability date to the rows delivery date.

SDCA TTP RefresherDelivery

We ship 5 laptops to the customerThe quantity of 5 laptops is removed from inventoryThe inventory account is credited for item costThe cost of goods sold account is debited

Definition: A delivery indicates that goods have been shipped. This document is also sometimes referred to as a packing slip or delivery note.How to create a delivery: To create a delivery note, select Sales - A/R Delivery. A blank delivery note appears; you select a customer and fill in the items being delivered. To post the delivery note, click Add.You may want to create a delivery note from a sales order or sales quotation. To do so, simply display the sales order or quotation and select Delivery from the Copy To buttons drop-down list. If you have multiple sales orders to be delivered to one customer, open a blank delivery, add the customer name, then use Copy from to select from a list of sales orders and quotations for that customer.Effect on Inventory and Accounting: Adding a delivery reduces the actual inventory levels. When you post a delivery, the corresponding goods issue is also posted. The goods leave the warehouse and the relevant inventory changes are posted. If you are using perpetual inventory, the inventory account is credited and the cost of goods sold account is debited based on the current item cost. A delivery cannot be modified once it is added to the system.

SDCA TTP RefresherA/R Invoice

We bill our customer for the 5 laptopsThe total includes the 1% manual discountThe due date is based on the customers payment termsA journal entry is created to record: a credit to revenue a debit to the customer account

Definition: An A/R invoice is a request for payment. Posting an A/R invoice records the revenue in the profit and loss statement.How to create an A/R invoice: You can create an A/R invoice from single or multiple sales quotations, sales orders, or delivery notes. You can also create an invoice directly by selecting Sales - A/R A/R Invoice. Effect on accounting and inventory: Once posted, the A/R invoice posts a journal entry to the corresponding customer and revenue accounts. Effect of creating only an A/R invoice: The A/R invoice is the only mandatory document in the sales process. If a business desires a streamlined process, all the functions normally handled in the sales order and delivery can also be handled by an invoice. In those cases where a delivery document is not referenced for an A/R invoice with inventory items, the A/R invoice also decreases inventory values and quantities. The inventory account is credited and the cost of goods sold account is debited based on the current item cost in addition to the postings to customer and revenue accounts.Once an A/R invoice is posted, only fields which do not affect the journal entry can be changed.

SDCA TTP RefresherIncoming Payment

The customer pays the invoice on time for the 5 laptopsThe total includes the 1% manual discount and the early payment discount of 2%A journal entry is created to record:debits to our house bank account and discount accountsa credit to the customer accountDefinition: Incoming payments are the last step in the basic sales process, even though they are a function in Banking. Posting an incoming payment receives the payment from the customer.How to create an incoming payment: You can create an incoming payment by selecting Banking Incoming Payments Incoming Payments . Choose the customer account and a list of open invoices will appear. The list also includes any credit memos and manual journal entries posted to the account. You can select the invoices to be paid or make the payment to the customers account. When you select an invoice with an early payment discount and the payment was received before or on the due date, the total amount owed is reduced by the discount amount.When a full payment is applied to an invoice, the invoice is closed and will no longer appear on the list when you enter the next payments for this customer.Customer payments can be processed for bank transfers, checks, credit cards and cash, and in some localizations, bill of exchange.Effect on accounting: A journal entry is made crediting the customer account for the payment. Depending on the payment means, an appropriate G/L account (such as one of our bank accounts) is debited. If there is a early payment discount, a debit is applied to a discount account.When you create an incoming payment to clear (fully or partially) a document or transaction, internal reconciliation takes place automaticallySDCA TTP Refresher

Sales to One-Time Customers (A/R Invoice + Payment)MenuAdministrationSalesDefault Customer for A/R Invoice + PaymentC9999One-Time CustomerSetup Financials G/L Account DeterminationC9999A00001CustomerItem No.Item DescriptionA00002Twin SeaterThree Seater...Michael KramerMain 9855Chicago TX 65095NameShip ToBalance DueUSD 1303.84AddA/R Invoice + PaymentPayment MeansCheck

Bank Transfer

Credit Card

CashUSD 1000.00USD 303.84USD 1303.84Balance DueSAP Business One provides the A/R Invoice + Payment transaction for sales to one-time customers.Prerequisites The customer pays the entire amount at once (for example, in a shop).The customer does not need documents such as an order or delivery note document.Settings in the SystemYou maintain a representative master record for one-time customers in the system (Administration Setup Financials G/L Account Determination, choose the Sales tab page, then choose Default Customer for A/R Invoice + Payment)The system automatically calls up this customer when you enter the invoice. You cannot change the customer number in the document. You can, however, change the customer's name and address in the fields provided.Using the default values in the user parameters, you can also assign a separate customer master record to each user for the A/R Invoice + Payment transaction.Exception: The customer only makes a partial paymentIn this case, you should create a separate customer master record for this customer so that you can monitor the incoming payments.When you use a one-time customer, no master data record is saved in the system. All the details are inside the document. If you need to keep contact with the one-time customers, you should use a master data record for them instead.

SDCA TTP RefresherPostings in Sales Process for Inventory ItemsPurchased ItemFixed AssetsInventory ItemSales Item100100Stock Acc.Cost Acc.Sales OrderDeliveryA/R InvoiceRevenues AccountSales Revenues EUForeign Revenues Acc.Customer100100

When you sell inventory items, the system creates the following journal entries:The delivery creates a journal entry that posts the value of the delivered goods to the debit side of a cost account (cost of goods sold or COGS) and to the credit side of the stock account (as long as you are using perpetual inventory). The stock account and the cost account are retrieved from the Stock Account field and the Cost Account field on the Inventory tab of the item master record. The stock quantity is affected whether or not you are using perpetual inventory.The A/R invoice creates a journal entry that posts the invoiced amount to the debit side of the customer account and to the credit side of a revenues account. If the customer is located in the same country, the account from the Revenues Account field is used. If the customer is located in a European Union (EU) country, the account from the Sales Revenue - EU field is used. A customer is indicated as an EU customer according to the country defined in the ship-to address.If the customer is located in a non-EU foreign country, the account from the Foreign Revenues Account field is used. A customer is indicated as foreign if the country in the bill-to address is different from the country in which the company is located.If you skipped the delivery before posting the A/R invoice, the system adds the stock posting to the A/R invoice posting.This graphic does not cover tax postings or postings of additional revenues and expenses. The sales order document is not relevant for accounting.SDCA TTP RefresherReturnsReturns

5050Stock AccountCost Account

DeliveryWarehouse(Quantity)

General Ledger(Value)50Cost Account50Sales Returns

Definition: If a delivery is damaged or of poor quality, the customer returns it to you. A Return allows you to reverse a delivery, either partially or fully. When you create the Return with reference to the delivery note, the system corrects the stock postings in the delivery note.Why use a Return: For legal reasons, you cannot change or delete deliveries and customer invoices that have already been entered in the system. To correct these, you need to use a clearing document such as a Return or an A/R credit memo document. Prerequisite: If a delivery is returned before you create the A/R invoice for the customer, you can post the return delivery in the system. If an A/R invoice exists, you cannot use a return.How to create returns: Open the original delivery and choose Copy to. The other option is to use the menu path Sales A/R Return and use Copy from to choose items from the delivery.Effect on inventory and accounting: When you add a returns document, the system creates a journal entry that posts the value of the returned goods to the debit side of a sales returns account and to the credit side of the cost account. The value of the returned goods is not posted back to the original stock account in order to keep it separate from the value of the undamaged goods. The sales returns account and the cost account are retrieved from the Sales Returns field and the Cost Account field on the Inventory tab of the item master record.Note: If you also want to manage the inventory of the damaged goods separately from the undamaged goods, you should define a special warehouse for the damaged goods and enter this warehouse in the return document.

SDCA TTP RefresherCredit Memo5050Stock Acc.Cost Acc.

SalesRevenuesCustomer100100

Warehouse(Quantity)

General Ledger(Value)100Customer100Revenues Acc.50Cost Acc.Stock Acc.50

Definition: An A/R credit memo (credit note) reverses either partially or fully the journal entry created by an A/R invoice. An A/R credit memo can also be created with reference to a Returns document.Effects on inventory and accounting: When you create an A/R credit memo with reference to the A/R invoice, the system corrects both the quantities and values in the A/R invoice.The system increases the stocks of the credited items.The system credits the credit memo value to the customer's account in the general ledger and corrects the revenue by the same amountCreating a credit memo without reference: When a customer returns items that do not refer to a specific delivery, you can post this quantity directly to the warehouse without referencing a preceding document. The stock and stock value increase as a result. Creating a credit memo with reference to a Returns document: An A/R credit memo with reference to the returns delivery ensures that system credits the values to the customer. This might be used if the customer returns items and is later invoiced for the returned items. The credit memo can reverse the invoiced amount, but since it is referencing a Return, it will not adjust the inventory amount.

SDCA TTP RefresherContents:Overview of Inventory ProcessesSetting up InventoryWarehouse ManagementPick and PackSetting up PricingMRPInventory

In this unit, you will:Complete the process steps for receiving, issuing and transferring inventorySet up master data for inventory Create items managed by batches and serial numbersPick and pack items for a sales inventoryCreate price lists and special pricesRun MRP for an item

Inventory: Purpose

Your company makes, buys and sells items that are stored in multiple warehouses. Some of these items are managed by serial numbers and others are batch-managed.All of the items have multiple prices for the various price lists you use for different types of customers. In addition, special prices have been set up for certain customers.Sales items ready to be delivered are picked and packed by warehouse personnel.Material requirements planning (MRP) is performed on items that you manufacture or purchase in order to maintain needed inventory levels or fulfill customer requirements.Inventory: Business Example

Overview of Inventory Processes: Unit Overview DiagramTopic 3: Warehouse ManagementTopic 4: Pick and PackTopic 5: PricingInventory ManagementTopic 1: Overview of Inventory ProcessesTopic 2: Setting up InventoryTopic 6: MRPWarehouse Management ProcessGoods ReceiptInventory TransferGoods IssueSystem ConfigurationPurchasingWarehouse managementProductionInbound logisticsOutbound logisticsMarketing & SalesServiceFinancial controllingMaster data

Goods receipts are used to enter items into a warehouse. Additionally, some marketing documents in logistics can be used to receive items into the warehouse, such as the Goods Receipt PO in purchasing or the Return document in sales. Inventory transfers are used to move items between warehouses. Goods issues are used to move items out of warehouses. Additionally, some marketing documents in logistics can also issue items out of the warehouse such as a delivery notes in sales, or goods return document in purchasing.Inventory Goods Issue and Goods Receipt documents are typically used when there is no sales or purchasing process involved in the goods movement, for example, receiving samples or scrapping damaged goods.

Pick and PackA/R Invoice

Packing for the DeliveryDeliveryDocument CreationPickingSales Order

System ConfigurationPurchasingWarehouse managementProductionInbound logisticsOutbound logisticsMarketing & SalesServiceFinancial controllingMaster dataThe pick and pack process is an optional step in the sales cycle. If a company manages a large warehouse, and has dedicated personnel to collect the items, pack and ship them, then the pick and pack manager can be helpful. The pick and pack manager scans open sales orders and reserve invoices by requested delivery date and priority. It also presents the available quantities ready to be picked and shipped. Once you have created a new sales order with an approved status, you may use the pick and pack manager, accessed through the inventory module, to handle your picking activities. The process starts with the creation of a pick list, moves to the reporting of picked quantities, and terminates with packaging and delivery. The pick and pack manager allows you to release some or all items to a pick list, perform a partial pick for the items, or pick all items. You can also create a delivery note at any stage of the picking process.

Materials Requirements Planning (MRP)Define Planning DataRun MRPView order recommendations

Production OrderPurchase OrderSystem ConfigurationPurchasingWarehouse managementProductionInbound logisticsOutbound logisticsMarketing & SalesServiceFinancial controllingMaster dataMaterial requirements planning (MRP) is, in the most generic sense, a set of planning techniques that extract demands, match supplies, to calculate material requirements for made or bought items.MRP calculations consider bill-of-materials data, inventory data, and supply inputs from scheduled production and purchase orders, as well as demand inputs from actual and forecasted orders.MRP Process Steps include:Define the planning data to be used in MRP. One key piece of planning data is your forecast.Run the MRP Wizard.After MRP runs, the system gives you recommendations for production order or purchase orders to fulfill your requirements. Review the order recommendations resulting from the MRP run. From there, you create either production orders or purchase orders as needed.

Overview of Inventory Processes: Topic Summary

Key points from the Overview topic:Three inventory management processes covered in this topic:Warehouse ManagementPick and PackMaterials Requirements PlanningThe three main documents in warehouse management are:Goods IssueInventory TransferGoods ReceiptPick and Pick Manager adds two inventory management steps to the Sales Process: picking and packing.Materials Requirements Planning is a process for planning and optimizing inventory for purchased and made items.

Discussion for Inventory Overview

Overview of Inventory Processes: Unit Overview DiagramTopic 3: Warehouse ManagementTopic 4: PricingTopic 5: MRPInventory ManagementTopic 1: Overview of Inventory ProcessesTopic 2: Setting up InventoryTopic 3: Warehouse ManagementTopic 4: Pick and PackTopic 5: PricingTopic 6: MRP

Defining a warehouseWarehouse 01General WarehouseGeneralAccountingDefault Accounts Address InformationLocationDrop ShipIn SAP Business One, there is a direct relationship between warehouses and items. Choose Administration Setup Inventory Warehouses to define new warehouses. Here, you can enter a Warehouse code and a Warehouse name.Address Fields: Specifies address details for the warehouse. This address defaults into the purchasing document for the ship-to address for the warehouse. Location: Specifies the warehouse location. Use this field to classify warehouses according to their physical location. Drop Ship: Defines the warehouse as a drop-ship warehouse. Use this option when the company does not manage inventory for specific items, but receives commission for every order. SAP Business One will not calculate stock postings for this warehouse. In the Accounting tab, you define various default accounts used for inventory management per warehouse. To define a warehouse as a default in the MRP wizard, select the Nettable checkbox. If unchecked, the warehouse can still be chosen in MRP, but does not appear as default.Item Master

SAP Business One enables you to manage all the items that you purchase, manufacture, sell, or keep in stock. Services, such as labor, can also be defined as items. This can be useful for defined services you sell on a regular basis. Items can also be used to describe fixed assets that are tracked for accounting purposes.Item data includes how the item may be purchased or sold, the price of the item, the inventory level, and how purchasing of the item is forecast and planned. Some items may be fixed assets that are tracked for accounting purposes. For each item, enter the data relevant for a particular area in the system. This data is used automatically by the system for purchasing, sales, production, managing your warehouse, and accounting. SAP Business One, therefore, provides optimum support for your business processes. In Sales, it helps you create orders, delivery notes, and outgoing invoices because prices, sales units and gross profit calculate automatically. Using the item data in the system, you can optimize your stock. You have complete control over stock quantities at all times and can also analyze the financial aspects of stockholding at the same time. The system allows you to control production based on the items that are used for production and based on the finished product and any by-products created.One important rule applies to all master data. If a master data record is involved in an accounting or inventory transaction (such as an A/P invoice, A/R Invoice, Journal Entry and so on), it cannot be deleted. However, items can be marked as inactive if you do not want them to be available for use in marketing documents.

Structure of the Item Master RecordGeneral AreaItem NumberDescriptionDescription in Foreign LanguageItem TypeItem GroupPrice List Type of Item Bar Code

Unit PriceGeneralPurchasingPurchasing Units of Measurement

Customs Group

Tax Information

Dimensions

Sales Sales Unit ofMeasurement

Packaging Unit

Dimensions

InventoryCosting Method

Warehouses

Stock Quantities

Item Cost

PlanningPlanning Method

Procurement Method

Order Information

Lead Time

PropertiesUp to 64 differentItems Properties

RemarksText

Photo

Manufacturer

Shipping Type

Serial andBatch Numbers

Valid / On Holdwith Dates

Item Master DataThe header of the item master data record contains general information about the item, including a unique ID number assigned by the user, a description (including a description in a foreign language), and settings to determine the type of the item, the group it belongs to, the price, and the applicable price list. Checkboxes on the right indicate whether the item is kept in inventory, and if it is offered for sale or purchase (in many cases both apply). There is also a checkbox for fixed assets.General tab of the Item Master Data window has a mix of information about the manufacturer of the item, additional identifiers, shipping methods, and issue method. Purchasing Data tab indicates the preferred vendor who sells the item, how to identify the item in a catalog, the units of measurement used for the item for purchasing purposes, and the actual size of the item. For items with a purchasing history, you can click on the chart icon on the lower left of the tab to display a graphical purchase analysis.Sales Data tab contains similar fields to ones in the Purchasing Data tab such as units of measurement, packaging, and other parameters that determine how the item is handled. It also offers a graphical view of sales data for the item when you click on the chart icon in the lower left of the tab.Inventory Data tab tracks quantities in warehouses and sets inventory and management parameters, such as the valuation method, the G/L account determination method, the indication whether item quantities are managed separately by each warehouse or at the item level, and the actual inventory quantities for the item in each warehouse.Planning Data tab contains settings that control how the planning for purchasing or producing an item takes place. The order interval, order multiple, and minimum order quantity can be set here, as well as the required lead time in days. These settings are used by the MRP module.Inventory Data tab and Stock LevelsManage Inventory by WarehouseRequired Purch. UoMMinimumMaximum

In StockCommittedOrderedAvailableWH NameWH CodeGeneral WarehouseEast CoastWest CoastDrop Ship - +=In StockCommittedOrderedAvailable

Manage Inventory by WarehouseMin. Stock Min. Stock Max. Stock Req. Stock WH Name WH CodeGeneral WarehouseEast CoastWest CoastDrop ShipOption 1:Option 2:Several important settings for inventory are managed and displayed on the Inventory Data tab:Valuation method. The default is retrieved from the selected item group. When the item is first set up, you can choose a different valuation method, such as Standard, Moving Average or FIFO.G/L Accounts. Based on the system initialization, the default G/L account determination method is displayed, you can modify it at any time to a different method. (By Group, Warehouse or Item level). On the Inventory Data tab of the item master data the system displays per warehouse:The quantity in stockThe committed quantity (quantity ordered by customers)The ordered quantity (quantity ordered by your company but not yet delivered)The available quantity (calculated as In Stock - Committed + Ordered quantity)You can define whether a specific item should have inventory managed on the warehouse level or across all warehouses. Based on this checkbox, the maximum, minimum and required quantity fields appear either in the warehouse table below, or set at the item level. Option 1: If you decide to manage the inventory by warehouse, the system lets you enter the minimum stock level, the maximum stock level, and the required stock level for every warehouse. Choose this option by flagging the Manage Inventory by Warehouse checkbox. Option 2: If you decide to manage the inventory at the company level, leave the Manage Inventory by Warehouse checkbox deselected for the item. Then you can enter a maximum stock level, a minimum stock level and a required stock level across all warehouses.Basic Units of MeasureUse different units of measure in:Purchasing documentsSales documentsWarehousePurchasing10 xBale (10kg)Warehouse2000 x Ball of wool (50g)Sales5 x 10-pack (500g)Sales15 x Set 1 (600g)Sales25 x Set2 (300g)Different units of measure can be used in purchasing, sales and warehouse documents.Define a standard unit of measure for sales and a different standard unit of measure for purchasing inside the item master record. A unit of measure has two parts: a text field and items per unitBeginning with the 8.8 release, the standard units of measure can be changed even when transactions exist.You can overwrite the unit of measure in marketing documents as needed.Item Master: Grouping CriteriaYou can choose the item group from the dropdown list. To create new entries, choose the Define New option.Several important default values can be set at the item group level: valuation method, procurement method and even G/L accounts.

Item NumberDescriptionItem TypeItem Master Data

Inventory ItemSales ItemPurchased Item

Fixed AssetsPropertiesChoose AllClear SelectionCancelUpdateDetailsPlanning DataInventorySales DataGeneralProfessional EquipmentBeginnersSuitable for ChildrenItem Group 4..........................Item Group 64A1001Baseball Cap UniSports WearPrice List 01 Purchase Price ListItem GroupItemsItem groupings allow you to combine or classify your item master records in the system. You can group your products by Item Group (General Area) and by Manufacturer (General tab).Item groups also allow you set defaults for important fields in the item master. This allows you to group items by how they are used in your system. For example, for a group called raw materials, you could set the valuation method as standard cost and set the procurement method default to buy. This would make it easier for users correctly create new items that belong to this group. This is especially useful because the valuation method for an item is fixed once an inventory quantity is received for that item.You can also set inventory G/L accounts to be determined at the item level.You can assign each item to one item group and / or one manufacturer (General tab). You can use item groupings for reports and analyses to filter the item master records in an item grouping.If the item grouping is not sufficient to filter your data, you can also use the Properties or user-defined fields.You can define the item groups and properties in the Administration. For the item groups you can define some default values: choose Administration Setup Inventory Item Groups / Item Properties.

Inventory Valuation MethodsMoving Average PriceFirst In First Out (FIFO)Standard Price

In the item master record, you can specify the inventory valuation method in which you want to manage the item. You have three options:Moving Average priceThe system calculates the moving average price by dividing the total value of the goods by the amount in stock. First In - First Out (FIFO)The system stores each good receipt in the inventory in a separate layer. When you post any good issue, the system uses the price from the oldest layer, from the second-oldest, and so on.Standard PriceWhen you select this option, you also need to enter a fixed price into the item master record. The system uses this price for all stock movements. This especially makes sense for items which you produced yourself.The default setting for inventory valuation method is made at the item group level. The default can be changed at the item level.If you do not work with the perpetual inventory system, you can use the Inventory Valuation Simulation Report to valuate the entire warehouse inventory of all items on a key date. You will normally valuate the warehouse inventory on the balance sheet key date. This report is intended as a managerial report to check what-if scenarios. For instance, you can see what happens if you value an item based on a different calculation method. Possible Calculation Methods: Moving Average, FIFO, By Price List, Last Revaluation Price.G/L Account DeterminationSet G/L Accounts by WarehouseSet G/L Accounts by Item GroupSet G/L Accounts by Item Level#WH CodeWH NameAccounts Types101General Warehouse202Drop Shipment303ConsignationAccounts from Warehouse Definition#WH CodeWH NameAccounts Types101General Warehouse202Drop Shipment303ConsignationAccounts from Item Group Definition#WH CodeWH NameAccounts Types101General Warehouse202Drop Shipment303ConsignationAccounts Entered ManuallyOn the Inventory tab of the item master record, you specify the G/L account determination. Accounts are defined in a matrix per item and per warehouse. You can set one of the warehouses as default warehouse. The system will use the default warehouse when you create a document unless you specify otherwise. If you did not set a default, the system uses the first warehouse as default.You define default accounts under Administration Setup Financials G/L Account Determination. These values are defaulted for all levels (warehouse level, item group level, and item level). You can specify different accounts on item level and enter them directly into the item master record. Choose Inventory Item Master Data and choose the Inventory tab. This enables detailed account determination but also involves much maintenance work. To simplify the account determination, in every item master record you can specify that the accounts are retrieved from a higher level:Warehouse level: In this case the system automatically retrieves the accounts from the warehouse definition. To maintain the accounts in the warehouse definition, choose Administration Setup Inventory Warehouses and choose the Accounting tab.Item group level: In this case the system automatically retrieves the accounts from the item group definition. To maintain the accounts in the item group definition, choose Administration Setup Inventory Item Groups and choose the Accounting tab.You influence accounting and financial reporting by choosing the appropriate level at which to maintain accounts for perpetual inventory. The perpetual inventory is then managed at that level automatically by the system whenever you enter a transaction that would affect stock levels.

Exercises for Creating Items and Warehouses

Goods Movement and Serial Numbers

On Every TransactionOn Release OnlyOptional on Receipt documents

You have the option to set the serial numbers or batch numbers to be assigned on every transaction or to be assigned when the item is first released from inventory. If you choose to assign a serial number on release only, you might manufacture the item and issue it into inventory without a serial number. When the item is picked for delivery, you assign the serial number in the delivery document. This gives you the flexibility to not worry about serial numbers for warehouse functions.On the other hand, if you choose on every transaction then the item will be assigned a serial number at the point it is bought or manufactured.Release documents include: Goods issue, delivery, A/R invoice, A/R invoice + payment, A/P goods return, A/P credit memo, inventory transfer (out of warehouse), inventory tracking with a negative difference, negative initial quantities, and goods issue for production.Configuration Settings for Item Master RecordsSerial and batch management methodsDefault warehousesSet G/L accounts for items at one of three levels:WarehouseItem GroupItem LevelCosting by company or warehouse

Set up default values for items belonging to an item group:Valuation MethodPlanning MethodProcurement MethodG/L accountsThere are several configuration settings used to set defaults for master data.In Administration System Initialization General Settings Inventory tab Items subtab: you can define defaults and settings such as management methods for serial and batch numbers, default warehouses for items, and G/L methods for setting up new item groups. In Administration Setup Inventory: you can set defaults and settings for predefined values such as item groups, item properties, warehouses, units of measurement, customs groups, and shipping types. In Administration System Initialization Company Details on the Basic Initialization tab use the Manage Item Cost per Warehouse checkbox to define whether the system calculates one inventory cost for all warehouses or a separate inventory cost per warehouse.Exercises for Batches and Serial Numbers

Overview of Inventory Processes: Unit Overview DiagramTopic 3: Warehouse ManagementTopic 4: PricingTopic 5: MRPInventory ManagementTopic 1: Overview of Inventory ProcessesTopic 2: Setting up InventoryTopic 4: PricingTopic 5: MRPTopic 4: Pick and PackTopic 5: PricingTopic 6: MRPWarehouse Management OverviewWarehouse

Goods Receipts PO/Goods Returns from PurchasingFunctionsDelivery/Returns from SalesFunctionsGoods ReceiptsGoods IssuesRemoveComponentsfor ProductionGoods Receipts fromFinal ProductInventoryTransferbetween WarehousesBeginning QuantitiesThis graphic shows an overview over the different possibilities of stock movements.When an item is purchased or sold, warehouse inventory is automatically reduced or increased when the transactions are entered in purchasing and sales. For example, if a delivery note is created based on a sales order for a customer, the warehouse stock is reduced by the delivery quantity when the delivery note is added. If an incoming invoice is entered in purchasing, the warehouse stock increases by the delivery quantity when the incoming invoice is added.The purchase or sale of an item is, however, not the only transactions that result in a goods receipt or goods issue.For example, if five pieces of an item are found damaged in the warehouse as a result of water damage, rendering them useless, they are removed from the warehouse. These items cannot, however, be sold because they are now useless. In this case, you have to post a separate goods issue with the function described here. A goods receipt may be necessary, for example, if, after carrying out a physical inventory, you establish that you have not considered part of the quantity stored. You enter the forgotten quantity by means of a goods receipt in the system.

Goods Receipts / Goods IssueLast Purchase PriceRemarksJournal RemarkGoods ReceiptGeneral Information 1NumberPrice ListGoods IssueItem No. Quantity Price Total22PrimaryA1000 1010 EUR 100 EUR Goods Receipt General Information 2Table WindowGeneral Information 1:Price List: The system displays the Last Purchase Price list by default. You can choose a different price list, if necessary. Table Window:Price: The price of the item is copied automatically by the system from the price list on the basis of the price list selected in the upper part of the window. You can change the price manually here.Total: The system calculates the total amount for an item and the total document from the specified price and the quantity of goods received. The document displays in the column below even if not all of the rows of the goods receipt are visible because the list is too long to fit into the window.Inventory Offset Decrease / Increase: The system automatically determines the correct revenue account for goods receipt and the correct expense account for goods issue: Administration Setup Financials G/L Account Determination (Inventory tab).General Information 2:Remarks: You can enter your own text to describe the goods receipt in this field.Journal Remark: In this field, you can enter your own text to describe the goods receipt. This text is copied into the Remarks field of a journal entry when the goods receipt is posted.

Inventory Postings100100Stock AccountInventory Offset - Increase100Stock AccountInventory Offset - Decrease100Goods ReceiptGoods IssuePurchased ItemFixed AssetsInventory ItemSales Item

Warehouse

Warehouse

For goods receipts and goods issues that do not refer to a sales process or purchasing process, you must specify the warehouse to which or from which you want to post the goods. The system always uses the default warehouse from the item master record if you do not specify otherwise.To post a goods receipt, choose Inventory Inventory Transactions Goods Receipt.To post a goods issue, choose Inventory Inventory Transactions Goods Issue.You can enter the Inventory Offset - Increase account (for goods receipts) or the Inventory Offset - Decrease account (for goods issues) directly in the document. The system defaults the account shown on the item master record. (This account can be set at warehouse, item group or item level.)A goods receipt creates a journal entry that posts the value of the received goods on the debit side of the stock account and the credit side of the inventory offset increase account.A goods issue creates a journal entry that posts the value of the issued goods on the debit side of the inventory offset decrease account and the credit side of the stock account.The stock accounts are retrieved from the Inventory Account fields on the Inventory Data tab of the item master record.

Transferring StockInventory account (Warehouse 01)100Inventory account (Warehouse 02)100Inventory TransferPurchased ItemFixed AssetsInventory ItemSales Item

Warehouse 01

Warehouse 02

When you post an inventory transfer from warehouse 02 to warehouse 01, the system creates an inventory transfer document and a journal entry. The journal entry posts the value of the transferred goods on the debit side of the stock account of warehouse 01 and on the credit side of the inventory account of warehouse 02. The inventory accounts are retrieved from the Inventory Account fields on the Inventory Data tab of the item master record.To post a stock transfer, choose Inventory Inventory Transactions Inventory Transfer.Warehouse ReportsInventory in Warehouse ReportInventory Audit ReportInventory StatusItems ListOverview of items and prices Displays items with prices from stored price listsCurrent and planned statusShows current stock situation and information on planned receipts and withdrawalsStock overview: normal or detailedDetailed gives additional information on the last stock movement data and prices per materialOrigins of posted stock transactionsProvides an audit trail for usersInventory Valuation Simulation ReportWhat if scenariosAllows you to valuation your inventory using different valuation methods and dates.Overview of postings Shows all quantity- or cost based postings for itemsInventory Posting ListThere are a number of useful warehouse reports. Choose Inventory Inventory ReportsThe Items List is an overview of all (or selected items) with relevant prices according to price lists store in the system.The Inventory Posting List provides an overview of all postings in the system. You can use selection criteria such as: items, business partners, warehouse and sales employees.The inventory status provides an overview of the current stock situation and information on planned receipts and withdrawals. This information is now also accessible from within documents in the available to promise report.The inventory in warehouse report lists the current inventory by warehouse based on all the documents used in Logistics to receive and issue stock. You can view in stock, committed, ordered, and available quantities. The information from this report can then be used to determine whether there is a need to move items between warehouses, for example, to supplement a warehouse with lower stock totals. There are two versions of the report: normal or detailed.With the Inventory Audit Report, the user will be able to compare between accounting view (inventory balance accounts) and logistics view (inventory value displayed by the audit report) and have explanation of the value changes in inventory accounts. This report provides an audit trail for the posted inventory transactions in the chart of accounts.The Inventory Valuation Simulation Report is intended to be used by management to check what-if scenarios. The report allows you valuate the entire warehouse inventory of items on a given reporting date. You would normally valuate the warehouse inventory on the balance sheet reporting date. For companies using non-perpetual inventory, the report is named Inventory Valuation Report.Warehouse Management: Topic Summary

Key points from the Warehouse Management topic:A goods receipt document is used to receive items into the warehouse. A goods issue document is used to remove items from the warehouse.An inventory transfer is used to move inventory between warehouses.Reports in warehouse management include:Items listInventory Posting ListInventory StatusInventory in WarehouseInventory Audit ReportInventory Valuation Simulation Report

Exercises for Warehouse Management

Pick and Pack: Unit Overview DiagramTopic 3: Warehouse ManagementTopic 4: PricingTopic 5: MRPInventory ManagementTopic 1: Overview of Inventory ProcessesTopic 2: Setting up InventoryTopic 4: PricingTopic 5: MRPTopic 4: Pick and PackTopic 5: PricingTopic 6: MRPSales Process with PickingSales OrderOpenReleasedPickedDeliverDeliveryA/R InvoiceList of orders to be released or picked.Picking from Pick List234Pick Pack Manager1

5Available ItemsA1000 4 pcs.

Choose Inventory Pick and Pack Pick Pack Manager1) Status Open: This window displays all the items that are still open. They have not been released, picked or delivered yet. In this window you select the orders and quantities to be released. Quantity To Release = In Stock Released Picked2) Status Released: This window displays all the pick lists in status released.You can display the data in two views Detailed and Summary.Quantity Available to Pick = In Stock Picked3) To get the pick list, click in the list of the released orders into the orange arrow link next to the pick no. or choose Inventory Pick and Pack Pick List . Enter the picked quantity.4) Status Picked: This window displays the items that are already picked but are not delivered yet.5) In the list of the picked items choose the Deliver button to create the deliveries. You can create the deliveries also from the open or released list.Sales Process with Packing DeliveryA/R InvoiceDefine PackagesPickingExisting PackagesBoxAvailable ItemsA1000 4 pcs.Package ContentA1001 2 pcs.

321

Sales Order

Packing

In SAP Business One, the delivery or A/R invoice may serve as the pack document.1) In the delivery choose Goto Packaging or right mouse click to get to the Packages - Setup window.2) Existing Packages: Enter the packages that you want to use for packing the items of the delivery.You can define Package Types in Administration Setup Inventory Package Types. Available Items: Lists items and quantities that you can pack into the packages.3) Select the items and enter the quantities that you want to assign to the package selected in the Existing Packages list above. Package Contents: Shows the content of the package that is selected in the Existing Packages list above. The package list is also printed when a delivery note is printed.Setting up Pick and Pack

Document Settings, General TabSetting the response to release of inventory below minimum level:Without warningWarning onlyBlock ReleaseAdministration Setup for InventoryDefining package types used for packingThe Response to Release of Inventory Below the Minimum Level setting can affect what happens when you use Pick and Pack Manager. This setting controls what occurs when the inventory level falls below this minimum quantity as the result of a sales document or goods issue.The available options are:Without Warning select to avoid any notification from SAP Business One.Warning Only select to receive a warning message. In this case the user can choose whether to continue (and fall below minimum level), or to make the required adjustments first, such as issue only partial quantity, search for alternative items, and so on.Block Release select to receive an error message that prevents the user from completing the document and falling below the minimum level defined for the item.Your selection applies on the following scenarios:When creating delivery (also when created from Pick List window or from Pick and Pack Manager window).When releasing items to pick list from the Open drawer in the Pick and Pack Manager window.When updating the Released quantity in the Released drawer of the Pick and Pack Manager window.To define package types for packing, use the path: Administration Setup Inventory Package Types. Pick and Pack: Topic Summary

Key points from the Pick and Pack topic:The Pick and Pack Manager:Creates a pick listReports on picked quantitiesAllows you to specify packages types for picked itemsCreates a delivery for picked itemsPacking can be done inside the Pick and Pack Manager or directly in the delivery documentPick and pack manager displays items in status drawers:Open for open sales orders or reserve invoice rowsReleased for items ready to be pickedPicked for quantities already picked

Exercises for Pick and Pack

Overview of Inventory Processes: Unit Overview DiagramTopic 3: Warehouse ManagementTopic 4: PricingTopic 5: MRPInventory ManagementTopic 1: Overview of Inventory ProcessesTopic 2: Setting up InventoryTopic 4: PricingTopic 5: MRPTopic 4: P