Professional Documents
Culture Documents
Computer Application
Computer Application
Computer Application
COMPUTER
APPLICATION using
SAP Business One
TABLE OF CONTENTS
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47
71
105
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Unit I:
INTRODUCTION TO COMPUTER APPLICATION AND BUSINESS SOFTWARE
Every business has numerous processes. Some simple, others are complex and
cumbersome. But as the business grows, acquires new customers, enters new markets and keeps
pace with constant changes in statutory regulations... the company will need to maintain highly
accurate and up-to-date accounting, inventory and statutory records.
This is where a computer application helps simplify, integrate, and streamline all the
business processes, cost-effectively and easily.
Salient Features of Computerized accounting
Computerized accounting is designed to automate and integrate all the business operations, such
as sales, finance, purchase, inventory and manufacturing. With Computerized accounting,
accurate, up-to-date business information is literally at the fingertips. The Computerized
accounting combine with enhanced MIS, Multi-lingual and Data organization capabilities to help
the company simplify all the business processes easily and cost-effectively.
2. Complete Visibility
Computerized accountings giving the company sufficient time to plan, increase the customer base,
and enhance customer satisfaction. With Computerized accounting the company will have greater
visibility into the day-to-day business operations and access to vital information.
3. Enhanced User Experience
Computerized accounting allows the company to enter data in a variety of ways which makes
work a pleasure. Adapting to the specific business needs is possible.
4. Accuracy, Speed
Computerized accounting has User-definable templates which provides fast, accurate data entry
of the transactions; thereafter all documents and reports can be generated automatically, at the
press of a button.
5. Scalability
Computerized accounting adapts to the current and future needs of the business, irrespective of
its size or style.
6. Power
Computerized accounting has the ability to handle huge volumes of transactions without
compromising on speed or efficiency.
7. For Improved Business Performance
Computerized accounting is a highly integrated application that transforms the business processes
with its performance enhancing features which encompass accounting, inventory, reporting and
statutory processes. This helps the company access information faster, and takes quicker
decisions. Computerized accounting also guarantees real-time optimization of operations and
enhanced communication.
8. Quick Decision Making
Generates real-time, comprehensive MIS reports and ensures access to complete and critical
information, instantly.
9. Complete Reliability
Computerized accounting makes sure that the critical financial information is accurate, controlled
and safe from data corruption.
Advantages of Computerized accounting
Automation of tedious clerical jobs
Speed and accuracy
Low cost of packages
Automatic generation of standard reports
Redundant data storage permits efficient generations of some reports
Increase revenue while lowering operating costs and enhancing competitive advantage of the
company.
Accounting and SAP Business One
SAP software can help you become a best-run business in fact, it's the choice of more than
80,000 small businesses and midsize companies.
SAP software is:
SAP is the world's largest software company in business for more than 30 years.
SAP has more than 109,000 total customers 80,000 of which are small and midsize
enterprises.
SAP has customers in more than 50 countries and more than 4,500 channel partners
worldwide.
SAP Business One gives you access to real-time information through a single system
containing financial, customer relationship management, manufacturing, and management
control capabilities. The application consists of modules that cover these corresponding areas, and
more.
File
Edit
View
Data
Goto
Modules
Tools
Window
Help
Menu Bar
Toolbar
General
Print Preview
Export to MS-EXCEL
Find
Export to MS-WORD
Add
Send E-mail
Export to PDF
Send SMS
Launch Application
Previous Record
Send Fax
Lock Screen
Next Record
Menu Bar
The SAP Business One menu bar is located at the top of the main window and contains the
commands File, Edit, View, Data, Go to, Modules, Tools and Window. The menus in the menu bar
change according to the application window that is open at the time.
the menu bar change according to the application window that is open at the time.
Tool Bar
The toolbar, located below the menu bar, is a collection of icons that provide easy access to
commonly used functions. Active functions are shown in color, while inactive ones are grayed out.
The functions represented by the buttons are also available in the menu bar.
To hide or show a toolbar, right-click in the toolbar area and select or deselect, as required.
Main Menu
Choose Company
Main Menu
Company
OEC Computers
Sales manager
Modules
User
My Menu
Administration
Financials
Sales Opportunities
Sales A/R
Purchasing A/P
Business Partners
Banking
Inventory
Production
MRP
Server
Service
Human Resources
Reports
Company Databases
The SAP Business One Main Menu controls all the system functions. The name of the company
and the current user are displayed in the upper left corner. Its three tabs are Modules, Drag &
Relate and My Menu:
Three Tabs Under Main Menu
1. Modules
Contains all SAP Business One modules. These are the essential menus through which you access
all the windows and sub-menus.
The Modules tab contains 13 SAP Business One modules:
Administration
Contains the basic system settings for currency exchange rates, system setup, and authorizations,
as well as settings for online alerts, and data import/export functions.
Financials
Manages all your accounting data and chart of accounts, general ledger, current accounting
posting, and reporting. In addition, you can define budgets and profit centers for better
management of company revenues and expenses.
Sales Opportunities
Helps the sales employees to manage their sales opportunities and enables you to analyze your
sales information. It also includes opportunity forecast reports, won opportunities, an
opportunities pipeline, and a dynamic display of sales stages.
Sales A/R
Handles all aspects of the sales process, from entering sales quotations, sales orders and
deliveries, to issuing customer invoices and returns. In addition, you can draw base documents to
target documents, or send letters to customers with open debts.
Business Partners
Stores the master data for all your business partners, including relevant information about
customers, dealers, vendors, and leads. In addition, you can store information about business
partner activities, as well as data for sales volume forecasts.
Banking
Handles the full range of monetary transactions. In addition, you can use Payment Engine to
process automatic payments.
Inventory
Manages your inventory, including warehouse inventory, price lists, special pricing agreements,
alternative items, and warehouse transactions, as well as the pricing and packaging process, and
batches and serial number management.
Production
Enables you to handle bills of material and production orders.
Purchasing A/P
Lets you manage all your vendor transactions. You can map the entire buying process, from
purchase orders to vendor invoicing. Companies that import goods can use the landed costs
functionality to calculate the purchase prices of their imported items, including customs, transport
and insurance, fees, taxes, and other landed costs.
Service
Manages interaction between service representatives and customers. It enables you to enter and
maintain information about service contracts, items and serial numbers, customer complaints and
inquiries, as well as perform numerous related functions. Each time a customer reports a problem,
you log it in by opening a service call.
Human Resources
Maintains information on company employees and enables you to perform numerous related
functions. It provides staff management capabilities, including employee details, contact
information, and absence reports.
Reports
Enables you to compile reports with corporate data and information in exactly the way you want
to see it. This includes company internal evaluations, inventory reports, financial reports, and
accounting data. In addition to the predefined reports, you can also define individual queries.
The Drag & Relate menu is a tab in the SAP Business One Main Menu. It enables you to
find and display important information quickly and efficiently. It is an interactive tool based on
predefined system queries. You use it to create reports and to display information about business
processes. The user-friendly interface helps you find important information quickly, and locate
different objects or documents in SAP Business One. For example, you can generate a report on all
items or item groups, or all purchase orders that you created for a particular vendor.
The Drag & Relate queries allow you to search for data both in reports and in the master
data, such as G/L accounts and business partners.
3. My Menu
My Menu is a customizable menu on which you can save the most frequently used
functions. Use the My Menu tab in the Main Menu to customize a personal menu to include
windows, menu options, and queries you use most frequently. Your personalized menu does not
affect the menus of other SAP Business One users.
Exercise 1.1. Log-in to SAP Business One
Double click on the SAP Business One logo
in your desktop
In the Login Window choose Change Company.
Preference
12H
MM/DD/YY
Upon successful log in, you should see the Menu Bar, Tool Bar and Main Menu.
To set the font you use for displaying texts in SAP Business One and to place your
company logo or other graphic as the background image in the main SAP Business One window:
Go to Administration>System Initialization>General Setting
Click on the Font & Bkgd tab and change the following settings:
Font
: <any font>
Font Size
: <any size>
Background
: <any picture file>
Image Display : <any option>
Click UPDATE to save the settings.
Click OK to exit the window.
Exercise 1.3: Hide documents and reports which are not to be used
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1.3.1. Administration
Hide Exchange Rates and Indexes; Data Import/Export; Approval Procedures; License; Add-ons;
Alerts Management
Click' Form Settings' icon on the window.
Expand the Administration module by clicking the black arrow before it.
Uncheck Exchange Rates and Indexes, Approval Procedures, License, Add-ons, Alerts
Management.
Click Update, then OK.
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1.3.2. Financials
Uncheck everything under Financials except Chart of Accounts, Edit Chart of Accounts, Journal
Entry, Journal Vouchers, and Financial Reports.
Go back to Form Settings in the window.
Expand the Financials module by clicking the black arrow before it.
Uncheck everything under Financials except Chart of Accounts, Edit Chart of Accounts,
Journal Entry, Journal Vouchers, and Financial Reports.
Click Update then OK.
1.3.3. Sales AR
Show only Sales Order, Delivery, Return, A/R Invoice, A/R Invoice + Payment, A/R Credit Memo
and Sales Reports.
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1.3.4. Purchasing - AP
Show only Purchase Oder, Goods Receipts PO, Goods Return, A/P Invoice, A/P Credit Memo and
Purchasing Reports.
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Only 10 Modules shall be visible in the main menu, under the Module tab.
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Values
F2
Sales A/R
Sales Order
Values
F3
Purchasing A/P
Purchase Order
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Values
F4
Sales A/R
A/R Invoice
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Values
F5
Purchasing A/P
A/P Invoice
Also, on the ToolsMy ShortcutsCustomizeList Tab, you can view the allocated shortcuts.
Key in F2 from your keyboard. The allocated form 'Sales Order' shall come into view. The same
shall be true for F3, F4 and F5.
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Exercise 1.5. Navigate SAP Business One using Drag & Relate
Find all the purchase orders for Lumarx using Drag&Relate.
Go to the Drag & Relate menu.
Use one these two methods to find the purchase orders.
Option 1: Select Purchasing A/P then double click Purchase Order. All purchase orders are
displayed.
Use the Filter function to select the purchase orders only of the vendor V50000.
Choose Ok.
Only Purchases from V50000 will be displayed.
Close Filter Table window and Drag and Relate-Purchase Order window.
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To check whether you have successfully added the Sales Order form in the My Menu, go
to My Menu and click Forms.
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Exercise 1.6.2. Rename the Forms folder under the My Menu tab
To rename the Forms folder, Click Tools on the menu bar.
Choose My Menu, then Organize.
Click Rename. Type Frequently Used Forms
Click OK, then Update.
Click Ok again to save the changes made.
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To restore the default field label, put the mouse cursor on the Vendor field
Press Ctrl then double click without releasing the Ctrl key
The Changing Description Window will come out
Choose Restore Defaults
Click Update, then Ok.
Unit II:
MANAGING THE MASTER DATA
Master data also keeps track of predefined values and settings that are used by the
automated wizards for payment processing, dunning activities, and material requirements
planning (MRP). Default control accounts assigned to vendors and customers are also master data.
The rest of the information that describes what is happening for a specific transaction is called
transactional data. Proper setup and management of master data allow everyone to use SAP
Business One to maximum efficiency. If master data is set up accurately, creating a document such
as a sales order becomes a lot easier. You only have to confirm that the default information is
correct.
However, if master data is not accurate, business processes come to a halt while people
figure out how to enter the correct information. This chapter offers guidance to help you
understand, set up, and use master data properly so that you and your company get the full
benefit of SAP Business One.
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. Creating documents from master data
increases productivity, ensures data consistency, and reduces errors.
Master data refers to the key information that describes your customers, vendors, and
leads as well as items that your company buys and sells.
2 TYPES OF MASTER DATA
Lead
Business Partner
Master Data
Customer
Skillful use of master data is essential in getting the most out of the SAP Business One
application. Data describing business partners such as customers, vendors, and leads is master
data. Descriptions of items that are kept in inventory or manufactured by the company are master
data. G/L accounts which are used to post transactions are also master data. When a new
document, such as a purchase order, an invoice, a sales quotation, or a goods receipt, is created,
master data provides much of the necessary information.
Vendor/Supplier
Master Data
Inventory Item
Sales Item
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A. Lead data: Describes people and organizations in the sales pipelineyour potential
customers. Lead master data records are used as the foundation for sales and marketing.
When you make the first sale to a lead, you change the business partner type to customer,
turning the lead into a customer.
B. Customer data: Describes people and organizations to which your company sells products
and services. Customer master data records are used as the foundation for documents related
to processing and fulfilling orders for customers and for the wizard for dunning customers.
Entering and Managing Master Data
C. Vendor data: Describes the people and organizations from which your company buys
products and services. Vendor master data records are used to create documents related to
purchasing and accepting delivery of goods and services and processing payments to
vendors.
Most software systems have lists of data that are shared and used by several of the
applications that make up the system. For example, a typical ERP system as a minimum will have a
Customer Master, an Item Master, and an Account Master. This master data is often one of the
key assets of a company.
2. Item Master Data
SAP Business One lets you to manage all items that you purchase, manufacture, sell, or
keep in inventory. 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 SAP Business One, which
uses this data for purchasing, sales, production, warehouse management, accounting, and
services.
You use the Item Master Data window to add, update, search, and maintain item data.
This window lists all the items in your company.
To access the window, choose Inventory Item Master data.
Item Master 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. Item master data
supports a two-way process. Some items in inventory are sold by your company. Other items are
purchased by your company. Some items may be fixed assets that are tracked for accounting
purposes.
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However, you can do a wild card search by placing the asterisk (*) before, after or in the
middle of the word that you want to search. The list would show all items that contains the
particular string that you used.
You could also find specific information by typing in the word or number that you are
looking for in the particular field.
Note: 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. In addition, once a sales order is created, the business partner or the item
linked to it cannot be removed.
Exercise 2.1. Searching Business Partners from the Business Partner Master Data
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Note: If the Find icon (binocular) is in gray color or is disabled, you are already in Find mode.
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2.1.5. Find all Business Partners whose name starts with letter 'A'
Go to Business PartnersBusiness Partner Master data
Make sure you are in Find mode
Type A then asterisk (A*) in the 'Name' field.
Press enter
All Business Partners whose name starts with letter 'A' will be displayed
Click Cancel, then Cancel again to exit both windows
2.1.6. Find all Business Partners that have the word 'Tech' on its name
Go to Business PartnersBusiness Partner Master data
Make sure you are in Find mode
Type asterisk then tech (*tech) in the 'Name' field.
Press enter
All Business Partners that have 'tech' on its name will be displayed
Click Cancel, then Cancel again to exit both windows
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Solutions
2.2.1. Find all items
Go to InventoryItem Master data
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2.2.3. Find all item descriptions that have the word 'print'
Go to InventoryItem Master data
Make sure you are in Find mode
Type asterisk then print (*print) in the in the 'Description' field
Press enter
All items that have the word 'print' on its item description will be displayed
Click Cancel, then Cancel again to exit both windows
2.2.2. Find all items with item description that starts with letter 'M'
Go to InventoryItem Master data
Make sure you are in Find mode
Type then asterisk (M*) in the in the 'Description' field
Press enter
All item descriptions that starts with letter 'M' will be displayed
Click Cancel, then Cancel again to exit both windows
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Name
Jaimie Lou
Rome Alfred
Jaci Martin
MJ Siando
Group
Suppliers
Suppliers
Suppliers
Gas and Oil
Payment
Terms
2/10, n/30
2/10, n/30
30 Days
Cash
NEW CUSTOMERS
Name
Group
Harry Potter
Customers
Charm Sael
Distributors
Happy Roque Distributors
JuniBeth
Retailers
Payment Terms
3 Installments
3/5, n/30
3/5, n/30
Cash
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Type the Vendor Code VT100 in the Code Field and choose Vendor from the dropdown list
next to it.
Type the vendor name Jaimie Lou in the Name field.
Choose the appropriate Group which is Suppliers (Click the dropdown list button on the
Group field to show list of groups).
Go to 'Payment Terms' Tab
On the Payment Terms field, click the dropdown list button and Choose the appropriate
Payment Term '2P10Net30' (for Payment Term 2/10, n/30)
Click Add.
*2/10, n/30 means that the credit period is 30 days. But if you pay within 10 days,
a discount of 2% is given.
Note: If the Add button is in gray color or is disabled, you are already in the Add mode
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Type the Vendor Code VT200 in the Code Field. Choose Vendor from the dropdown list
next to it.
Type the vendor name Rome Alfred in the Name field.
Choose the appropriate Group which is Suppliers
Go to Payment Terms Tab
On the Payment Terms field, click the dropdown list button and Choose the appropriate
Payment Term 2P10Net30 (for Payment Term 2/10, n/30)
Click Add.
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2.3.1.d. MJ Siando
To add MJ Siando, go to Business PartnersBusiness Partner Master data
Go to Add mode
Type the Vendor Code VT400 in the Code Field. Choose Vendor from the dropdown list
next to it.
Type the vendor name MJ Siando in the Name field.
Choose the appropriate Group which is Gas and Oil
Since the group Gas and Oil is not existing, choose Define New from the drop down list
The Vendors Group Setup window will appear
Add Gas and Oil in the group
Click Update, then Ok.
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2.3.2.c. Happy Roque
To add Happy Roque, go to Business PartnersBusiness Partner Master data
Change to Add mode
2.3.3.d. JuniBeth
To add JuniBeth, go to Business PartnersBusiness Partner Master data
Go to Add mode
Type the Customer Code CT900 in the Code Field. Choose Customer from the dropdown
list next to it.
Type the customer name JuniBeth in the Name field.
Look for the appropriate Group which is Retailers
Since the Retailers Group is not yet existing, choose Define New
The Customers Group - Setup window will appear
Add Retailers to the Customers Group
Click Update, then Ok.
Type the Customer Code CT800 in the Code Field. Choose Customer from the dropdown
list next to it.
Type the customer name Happy Roque in the Name field.
Choose the appropriate Group which is Distributors
Go to Payment Terms Tab
On the Payment Terms field, click the dropdown list button and Choose 3/5,n/30
Click Add.
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Although item master data is completely different from business partner master data in
content, both are set up in a robust yet versatile way. For example, item master records keep
track of items that are sold, purchased, and inventoried by your business. Frequently the same
items are purchased, inventoried, and sold. The information is the same; it is just used differently.
Item master data is at the heart of almost every process in SAP Business One. It is used in
almost every module, including the sales, purchasing, production, MRP, inventory, and service
modules.
Create an Item Master Data for the following new items:
NEW ITEMS
P300
P400
Unit Price
Item Description
HP DeskJet Printer
2TB External Drive
Laminating
Machine
USB Keyboard
Item Group
HP Printers
External Devices
GBP 100.00
GBP 70.00
Items
GBP 120.00
Accessories
GBP 50.00
Item
Number
P100
P200
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Note: If the error "One of the Inventory Accounts is Missing" occurs while adding/creating a new
Item Group, update the posting period.
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Unit III
PURCHASES, INVOICING AND PROCESSING PAYMENTS
You can begin the purchasing in SAP Business One by requesting quotations for items or
services from your vendors using the purchase quotation document. Once you have compared the
vendors' quotes and found the best offer, you proceed to ordering the goods. To order the items
or services, you create a purchase order document.
In SAP Business One, you can create an A/P reserve invoice. This document is similar to a
purchase order but includes a request for payment. The A/P reserve invoice is used when a vendor
is concerned about the credit worthiness of his customers. In the purchasing process of SAP
Business One, it is possible to return goods to the vendor if, for example, the goods you received
were faulty. You can use a goods return if you based the return on a goods receipt PO or an A/P
credit memo if the return is based an A/P invoice.
You can create a new document based on one or more of the existing ones. When you
create a new document with reference to an existing document, only the documents that are still
open are displayed. All documents for which you have not created a follow-on document have an
open status. Open documents remain open until you transfer all items completely to the followon document, or until you manually close or reverse them.
Each document affects inventory quantities and some affect the general ledger. The
purchase order affects the available inventory quantity. The goods receipt PO increases the actual
inventory quantity. If you create an A/P invoice without reference to the goods receipt PO, it will
also increase the quantity in stock.
As far as accounting is concerned, the A/P invoice always creates an accounting
transaction. It records freight and tax and updates the vendor account with the new outstanding
balance. The A/P reserve invoice only affects the available inventory quantity and creates an
accounting transaction.
The goods return reduces the actual inventory levels. The A/P credit memo reduces the
actual inventory levels and also creates an accounting transaction by applying negative amounts
to the previously invoiced accounts.
Note: Depending on the complexities and requirements of a business, the use of some marketing
documents may be omitted such as creating a Purchase Requisition for, Purchase Oder, Sales
Opportunities, Sales Order, etc.. But invoices are required marketing documents and therefore
should never be omitted. This Material will start the Purchasing Process from the creation of a
Purchase Order.
Exercise 3.1. Creating Purchase Order
3.1.1.a. Create a Purchase Order for Vendor VT100. Order the following:
The next stage is the goods receipt PO. It is the stage when the inventory is received into
the company. The goods receipt is followed by an A/P invoice, which is the request for payment. It
is the only mandatory document in the purchasing process. It is possible to create the A/P invoice
without first creating a goods receipt PO or a purchase order.
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Values
P100
30
P200
20
P500
20
48
Values
P500
Bluetooth Headset
GBP 35
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3.1.1b. Create a Purchase Order for Vendor VT200. Order the following:
50
Values
P300
15
P400
1
A00001
50
Delivery Date
tomorrow
Warehouse
01
01
02
3.1.1.c. Create a Purchase Order for Vendor VT300. Order the following:
Field Name or Data Type
Item No.
Quantity
Item No.
Quantity
Values
C00001
5
C00002
5
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52
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3.2.2. Create a Goods Receipt P.O. Using Copy from (Orders were not received in full)
Record a partial receipt of your latest purchase from VT100. Follow the following data:
Field Name or Data Type
Item No.
Quantity
Item No.
Quantity
Item No.
Quantity
Values
P100
20 (instead of 30)
P200
20
P500
20
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3.2.3. Create a Goods Receipt P.O. to record the receipt of the remaining undelivered ordered
items from VT100
You receive an additional delivery for the same purchase order. VT100 delivered all the remaining
items. Create a goods receipt PO for the remaining items:
Field Name or Data Type
Item No.
Quantity
Values
P100
10
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QUICK GUIDE TO COMPUTER APPLICATION using SAP Business One
3.3.2. Use Copy from to record the receipt of VT200's A/P Invoice
Go to Purchasing A/PA/P Invoice
Type VT200 in the code field
Click Copy from, choose Goods Receipt PO
Click the latest Goods Receipt PO created for VT200 so that it will be highlighted
Click Choose. Draw Document Wizard Window will be displayed
Choose Use Doc and Row Exchange Rate from Base Doc and Draw all data, then
click Finish
You will return to the A/P Invoice window
Enter the following Data:
Posting Date: Today's Date
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Select the A/P Invoice to be paid by checking the box before the document number of the
(In our exercise, select the latest A/P Invoice recorded for VT200)
Click the Payment Means button on the tool bar
Choose the Check tab
Scroll to the right to view the Amount column
Put the cursor in the Amount field and press Ctrl+B on the keyboard to automatically
copy the total amount to be paid
Click OK, then Add
Choose Add to confirm the system message
Click Cancel to Exit
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The goods return document is used to return delivered goods to vendors or to reverse a
purchasing transaction for an item completely or partially, for example, a goods receipt PO in SAP
Business One. Due to legal stipulations, you cannot delete or make any accounting-relevant
changes to these documents. However, to return unwanted or faulty goods, or to correct errors
made when entering the above-mentioned documents, you can create a goods return.
When you create a goods return, the goods are issued from the warehouse and the
quantities are reduced. If your company uses perpetual inventory, SAP Business One automatically
creates the relevant posting to update the inventory values as well.
To access the window, choose Purchasing A/P Goods Return.
Note: The prerequisite before creating a Goods Return document is that there should be no A/P
invoice was created for the goods being returned. If an invoice has been created, you must create
an A/P credit memo.
Suppose you discovered that 1 unit of item no. P100, referencing Goods Receipt P.O. no.
270, orderred from Jaimie Lou were defective when received.Since no A/P Invoice was created for
Goods Receipts P.O. no. 270, use Goods Return document to reutrn 1 unit of item no. P100.
3.5.1. Create a Goods Return for 1 Unit of intem No. P100
Go to Purchasing Goods Receipt P.O.
Click the Last Data Record icon on the toolbar then click the Previous Data Record
icon until you reach Goods Receipt P.O. no. 270.
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When you create a delivery for a purchase order or an A/P invoice in SAP Business One,
legal stipulations prevent you from deleting or making any changes to these documents. You may,
however, want to return the goods to the vendor for a variety of reasons, or you may find that
you have made a mistake while creating the documents.
The A/P credit memo is the clearing document for the A/P invoice. Therefore, if the
vendor has delivered goods, and you have already created an A/P invoice, you can reverse the
transaction either partially or completely by creating an A/P credit memo.
You create the A/P credit memo based on the A/P invoice to establish a link between the
two transactions in SAP Business One. However, it is also possible to create an A/P credit memo
without having a base document.
SAP Business One lets you create an A/P credit memo with a zero amount. You can do this
when you clear A/P invoices for no-charge items, such as items that are part of a promotion or
covered by a service contract.
You correct both the quantities and the values with the credit memo. SAP Business One
reduces the inventory of the credited items by the quantity specified in the credit memo, posts
the value of the credit memo to the vendor account in the accounting system, and reduces the
expense account by the same amount.
To access the window, choose Purchasing A/P Credit Memo.
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Suppose you discovered that 3 units of item no. A00001, referencing the last A/P invoice
created - no. 251 (Vendor: VT200; Rome Alfred) were defective. Since an A/P Invoice was already
created, we use A/P Credit memo to return the 3 units.
Before creating an A/P Credit Memo, verify that your credit balance to Rome Alfred is
zero. Remember that we have already paid the invoice issued by Rome Alfred.
Values
VT200
A00001
3
Based on A/P Invoice no. 251
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Click Add and Choose Yes to confirm the system message.
Click Cancel to exit the window.
3.6.3. Check the effect of a posted A/P Credit memo on your credit balance.
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Item - choose if you are to create a purchasing document for items defined in the
Inventory module.
Service - choose if you are to create a Purchasing document for a Service, such as a onetime consultation, that has not been defined as an item in SAP Business One. The table
view on this tab is different for each option
Exercise 3.7.1. Create a Purchase Order for the Pest Control Services availed from VT400
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You contracted VT400 do pest control in your office. Create a Purchase Order for the
services you need from VT400
Choose Purchasing-A/P Purchase Order
On the Item/Service Type field under the Contents tab, choose Service
Enter the following required information:
Field Name or Data Type
Vendor
Delivery Date
Item/Service type
Service Description
G/L Account Number
Total Price
Values
VT400
Today
Service
Pest Control
605030 (Other Maintenance
Costs)
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The service was provided and you received an invoice from the vendor. The Invoice
Number on the vendor invoice is L7342. Create an A/P Invoice for the service received.
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Unit IV:
SALES, INVOICING AND RECEIVING PAYMENTS
THE SALES PROCESS IN SAP BUSINESS ONE
The sales process moves from issuing a sales quotation for goods to selling the goods (and
services) to delivering the goods to invoicing the customer for the goods. Each step involves a
document, such as a sales order or A/R invoice. SAP Business One moves all relevant information
from one document to the next in the document flow. You can adapt the steps according to your
needs and business processes.
Prerequisites
Business partner master data, especially the customer's bill-to and ship-to address,
payment terms and dunning parameters
Item master data
Process
The sales process in SAP Business One entails creating the following documents:
1. Sales Quotation
Before ordering, customers often require a sales quotation for review in their company.
You create it as a proposal of your goods and services to a customer or lead. It does not
result in any posting that alters quantities or values in inventory management or
accounting.
2. Sales Order
The sales order is a commitment from a customer or lead to buy a product or service. The
document is important for planning production, creating purchase orders and scheduling
resources.
To avoid problems during document creation in later stages of the sales process, make sure that
the following key data is maintained correctly before you start creating sales documents:
3. Delivery
You create a delivery note to indicate that the goods have been shipped.
4. A/R invoice
After you have delivered the goods or provided services, you bill the customer using an
A/R invoice. With this document, you request payment from your customer and record
the revenue in the profit and loss statement.
Note:
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The invoice is the only mandatory document in the sales process. You can create one
without first creating the other three.
For legal reasons, you cannot delete deliveries and A/R invoices or change any accountingrelevant data on these documents if they have been already entered in SAP Business One.
Additional Process Documents
Each of the following documents has a specific purpose in the sales process.
It is possible to create new documents based on existing ones. When you do so, only the
documents that are still open are displayed.
Open documents:
Are those for which you have not created a follow-on document
Remain open until you transfer all items completely to the follow-on document, or until
you manually close or reverse them
Each document updates the inventory quantities and the general ledger in the following ways.
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A/R reserve invoice used when a company is concerned about the credit worthiness of
its customer. In this case, the company demands payment before any delivery of items to
the customer.
Return a corrective clearing document used to credit a customer if the goods were
delivered but no A/R invoice was issued
A/R Invoice + Payment document for cash sales to one-time customers. SAP Business
One treats an A/R invoice + payment document the same way as an A/R invoice. The
corresponding journal entries in accounting and inventory are processed automatically
after the document is posted.
A/R credit memo used to credit a customer if the goods were delivered and an A/R
invoice was issued
A sales order affects the amount of inventory committed to a customer and, therefore,
the available inventory quantity.
A delivery reduces the inventory committed and the in-stock quantities. Furthermore, it
affects the general ledger, if SAP Business One manages the perpetual inventory. In such a
case, the delivery reduces inventory valuation and posts a cost of sale.
An A/R invoice created without reference to the delivery, also reduces the quantity in
stock. An A/R invoice always creates an accounting transaction. It records the revenue and
tax, and it updates the customer accounts with a new outstanding balance.
An A/R invoice + payment reduces the quantity in stock and records the revenue and tax.
An A/R reserve invoice affects the amount of inventory committed to a customer and,
therefore, the available inventory quantity. It also creates an accounting transaction.
A return increases the in-stock quantity and updates the associated inventory accounts.
An A/R credit memo increases available inventory levels and creates accounting
transactions. It credits the customer accounts in the general ledger and corrects the
revenue account by the same amount.
Note: Depending on the complexities and requirements of a business, the use of some
marketing documents may be omitted. This Material will start the Sales Process from the
creation of a Sales Order.
Exercise 4.1. Define customer groups
Create customer groups
Choose Administration Setup Business Partners Customer Groups.
Field Name or Data Type
Values
Group Name
Department Stores
Group Name
Book Stores
Add Department Stores in the customer group
Click Update
Add another customer group: Bookstores
Choose Update.
Then choose OK to close the window.
4.1.1
Values
LT100
Lead
Dwarde RJ
Bookstores
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Values
LT100
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Values
CT1000
4.2.4. Create the delivery form for customer CT1000 (already possible)
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4.3. Create a sales order for customer CT600, Harry Potter. Enter the data below:
Field Name or Data Type
Values
Customer
CT600
Delivery Date
Tomorrow
Item No.
I00001
Quantity
15
Item No.
I00002
Quantity
10
Go to Sales A/R Sales Order.
Enter the required information
Click Add
Click Last Data Record button on the toolbar to retrieve the last sales order created
Take note of the sales order number. Click Cancel to exit from the window
Sales order number: ___________________________
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Within the same day, customer CT600 calls you to increase the Units of his order:
Field Name or Data
Values (Initial
Values (Changes to
Type
Order)
the Order)
Item No.
I00001
I00001
Quantity
15
30
Item No.
I00002
I00002
Quantity
10
20
Also, since the customer doubled his order, he asked for a discount. You agreed and
decided to give 2% discount.
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Observe that the Sales Order's status is Open before the delivery was created.
As soon as full delivery was made, the Sales Order's status will change to Closed
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Observe that the Delivery's status is Open before the A/R invoice is created.
As soon as an A/R invoice is created for the full items delivered, the Delivery's status
will change to Closed
Exercise 4.7. Create an Incoming Payment
4.7..1 Create an Incoming Payment for Cash Settlement
Customer CT600 paid the first installment of his invoiced orders in cash. Remember that
CT600's payment term, which we set in our previous exercises is in 3 Installments.
To view CT600's payment terms, go to Business Partners Business Partner
Master Data
Go to Find mode. Press Ctrl+F on your keyboard or click the Find icon
(binocular icon) on the toolbar.
Type CT600 on the Code field then press Enter. The master data of Customer
CT600 will be displayed.
Go to Payment Terms tab.
Check the Payment Terms field. The payment term is in 3 Installments.
Click Cancel to exit the window.
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4..7.3.Suppose CT600 sent a check amounting to BGP 157.79 in full payment of the second
installment due (BGP 107.79) and in partial payment of the third installment (GBP
50).
Go to Banking Incoming Payments Incoming Payments.
Enter CT600 in the Code field
Select the second and third installments to be paid by checking the box before the
document number.
Go to Total Payment Column
Change the Second Amount to BGP 50
Choose the Payment Means button (money bag icon) from the toolbar. The payment
means window will be displayed.
Go to Check tab.
Enter the total check amount GBP 157.79 in the Amount Column or Press Ctrl + B to
automatically copy the total check amount in the Amount Column.
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Choose OK.
Choose Add to save the document.
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Mouse over to the Yellow shade or the red shade to view amount paid or unpaid.
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Exercise 4.8. Track the effect of each step in the sales process to Inventory and to Accounting.
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IN STOCK:
The current stock level of the item. This is the quantity that is physically in the warehouse.
COMMITTED:
The quantity of an item reserved from the inventory for the following document types:
Sales orders
Production orders (the quantity used for producing a parent item)
Values
C30000
< today>
A00004
15
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The Master Data for item A00004 will come into view
Warehouse
01
02
03
04
88
Available
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Close the window to return to the sales order.
Open the item master record. Choose the link arrow to next to the Item No. field.
Choose the Inventory Data tab.
Are there changes in the total In Stock Quantity? If yes, which warehouse was
affected?______
*None
Are there changes in the Ordered Quantity? If yes, which warehouse was
affected?______
*None
Are there changes in the Committed Quantity? If yes, which warehouse was
affected?______
* Yes. It increased by 15 Units.
*Warehouse 01
Are there changes in the Available Quantity? If yes, which warehouse was
affected?______
*Yes. It decreased by 15 Units
*Warehouse 01
Choose Cancel to return to the Sales Order window and click OK to exit from the Sales
Order window.
4.8.2. Delivery
Create a delivery and view the effect of the delivery.
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Open the sales order you just created. Go to Sales A/R Sales Order
Choose Last Data Record.
Click Copy to. Choose Delivery.
Choose Add to save the delivery.
Choose Last Data Record to retrieve the Delivery you just made.
Open the item master record for A00004. Choose the link arrow to next to the Item No.
field.
Choose the Inventory Data tab.
Are there changes in the total In Stock Quantity? If yes, which warehouse was
affected?______
*Yes. It decreased by 15 Units.
*Warehouse 01
Are there changes in the Ordered Quantity? If yes, which warehouse was
affected?______
*None
Are there changes in the Committed Quantity? If yes, which warehouse was
affected?______
* Yes. It decreased by 15 Units.
*Warehouse 01
Are there changes in the Available Quantity? If yes, which warehouse was
affected?______
*None
Choose Cancel to return to the Delivery window. Do not yet exit from the window.
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Re-open the invoice you created with the Last Data Record icon.
Choose the Accounting tab.
To view the journal entry, choose the link arrow next to the Journal
Remarks field.
Close all windows. Go to Windows Menu , choose close All.
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As you can see in the journal entry, no changes to inventory were recorded when you
create the A/R invoice. This is because, the increase in Inventory is already posted upon the
creation of the Delivery document.
However, if there is no preceding delivery document, the A/R invoice records the changes
to inventory quantity. Additionally, if you are running perpetual inventory, the A/R invoice records
the changes to inventory value in the resulting journal entry.
Exercise 4.9. Sales Returns and A/R Credit Memo
For legal reasons, you cannot delete a delivery or invoice that you enter in SAP Business
One, or change accounting-relevant data in these documents. However, the customer might send
the goods back for various reasons, or you might have made a mistake when you entered the
documents. In such situations, create a return document.
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When you enter a return document, you can reverse the posting of a delivery. When you
create the return, the system corrects the inventory Units. If your company runs a perpetual
inventory, creating a return automatically generates a journal entry that updates the inventory
value.
Note:
If an A/R invoice has not yet been created for the delivery you want to reverse, use the
Return document under Sales A/R Return. If you have already recorded an invoice, use the A/R
Credit Memo (Sales A/R A/R Credit Memo) to correct values and Units for the transaction in
SAP Business One.
4.9. Suppose Customer C30000 (Microchips) returned 2 defective HP Color Laser Jet 5 (Item No.
A00004). These were from the recent items delivered to Microchips.
Since an A/R Invoice is already created for the said delivery, we cannot create a Return Document
for the 2 HP Color Laser Jet 5. Instead, we will be issuing a credit memo to record the return.
Open the A/R Invoice relating to the returned items.
Go to Go to Sales A/R A/R Invoice
Choose the Last Data Record
Click Copy to and choose A/R Credit Memo.
Click Add to save the A/R Credit Memo.
Choose Yes to confirm the system message.
Click Cancel to exit A/R Credit Memo window
Then Cancel again to exit A/R Invoice window.
The Item Availability Check window only appears when the quantity of an item required in a sales
order is larger than the availability quantity on the delivery date, minus the minimum level. The
minimum level is defined on the item level or at the warehouse level (as defined in the Item
Master Data window).
The quantity is calculated as follows:
Available = In Stock + Ordered Committed from the current date to the requested delivery date.
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If you update an existing sales order (instead of creating a new one), SAP Business One does not
take into account the existing sales order values when calculating available quantity, as it does
when you create a new sales order.
Example
Note: Item Availability Check window appears only if the Activate Automatic Availability Check
checkbox is selected under AdministrationSystem InitializationDocument SettingsPer
Document Tab for the document type Sales Order
Available Quantity is the quantity of an item that will be available for delivery on the Requested
Due Date for the selected warehouse. If the Requested Due Date is beyond the item's lead time,
then the Available Quantity is the requested quantity since there is still a time for the company to
order or produce the ordered quantity before the requested due date.
SAP Business One determines the available quantity by checking that the amount in the Available
Quantity field is greater than the minimum level defined on the warehouse level, if the item is
managed by warehouse, or greater than the minimum level defined in the Item Master Data
window, if the item is not managed by warehouse
If a Delivery Date is not entered in the sales order the current system date is used.
Lead time (LT) is the planned time interval between the shipping of a delivery in the ship-from
location and the expected time of arrival at the location receiving the delivery (customer or shipto location).
The calculation of lead time is done as follows:
Lead Time = Current date + lead time + Saturdays, Sundays and Holidays
Lead Time is defined under InventoryMaster DataPlanning Data tab
Holidays are defined under AdministrationSystem InitializationCompany Details Accounting
Data tab
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Example
The example below describes how to calculate the earliest available date for an item.
Lead Time When calculating the Earliest Availability date for an item:
The current date is Thursday May 22, 2008.
The lead time defined in the Item Master Data window is 3 days.
The weekend is defined as Saturday and Sunday in the Company Details window. In addition, May
27, 2008 is defined as a holiday.
The earliest available date is calculated as Wednesday May 28, 2008.
Thursday
May 22,
2008
Friday
May 23, 2008
(1st day Lead
Time)
Saturday Sunday
Monday
Tuesday
Holiday
Wednesday
May 28, 2008 (3rd
day Lead Time)
4.10.2. To illustrate, post a Goods Receipt for 30 Units of P200 (2TB External Drive) in
warehouse 02.
Go to Inventory Inventory Transactions Goods Receipt
Enter the following information:
Field Name or Data Type
Values
Item No.
P200
Quantity
30
Unit Price
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Click Form Settings icon from the tool bar.
On the Form settings window, under the Table Format Tab,
Make Warehouse (Whse) visible by checking the box next to it.
Click OK. You will return to the Goods Receipt window.
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Under the Warehouse (Whse) Column, change the warehouse code from 01 to 02.
Click Add to save the Goods Receipt.
Choose Yes to confirm the system message.
Click Cancel to exit from the Goods Receipt window.
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4.10.3. Open the master data for item no. P200 (2TB External Drive) and check the
Inventory status
Go to Inventory Item Master Data
Make sure you are in Find Mode (Ctrl + F)
Type P200 in the Code field and press enter.
The master data for P200 will be displayed.
Go to Planning Data tab and type '2' in the Lead Time field.
Go to the Inventory Data tab and choose Manage Inventory by Warehouse.
Set 10 and 5 Units as the Minimum Inventory in Warehouse 01 and 02
respectively.
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4.10.4. Create a Sales Order for 20 Units of item P200. Use Customer C20000.
Go to Sales A/R Sales Order
Enter the following information:
Field Name or Data Type
Values
Customer
C20000
Delivery Date
Today
Item No.
P200
Quantity
15
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Unit V:
INVENTORY, WAREHOUSE MANAGEMENT AND GOODS MOVEMENT
Values
01
A00001
06
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105
106
107
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Exercise 5.5. Aside from opening the Item Master Data of A00001 to check the current stock
situation in warehouses 01 and 06, you may also open the Inventory Warehouse Report.
Choose InventoryInventory Reports Inventory in Warehouse Report.
Deselect all warehouses except01 and 06.
Choose OK.
Inventory in Warehouse Report (Detailed) Window will be displayed.
Choose OK to exit both windows.
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UNIT VI:
BASIC REPORT GENERATION
EXPORTING DOCUMENTS AND REPORTS
You can export a document or report from your computer to one of the following file
types:
Exercise 6.1. Define a Path to where you will store your SAP files
Specify the path to the folder where you want to store
Create a folder in your Desktop and name it as SAP Report
Go to Administration System Initialization General SettingsPath tab
Assign the SAP Reports folder you created earlier as the path for Microsoft Word
Templates Folder, Microsoft Excel Folder, Pictures Folder and Attachments Folder
Click Update, then OK.
Exercise 6.2. Generate the Quarterly Balance Sheet Report for the Calendar Year 2009
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Go to ReportsFinalcialBalance Sheet
Choose the following information
Field Name or Data Type
Values
Date
Posting Date
To
12-31-2009
Display in Report
Quarterly Report
Click OK
The Balance Sheet report will be displayed.
Choose Level 3 in the Level field to display a more comprehensive Balance Sheet Report
(Note: Level 1 to see the Summarized Balance Sheet report, Level 2 to add details to the report,
Level 3 to add more details to the report, up to Level 5- the most detailed report.)
Click the MS-EXCEL icon on the toolbar to export the Balance sheet report to MS Excel
Save the file as Microsoft Excel 97-2003 Workbook and Rename as Quarterly Balance
Sheet 2009.
Choose whether to export Currency Symbols or not
Click Ok then OK.
Open the exported report in the SAP Reports folder on your Desktop.
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Exercise 6.3. Generate the Annual Profit and Loss Statement for the Calendar Year 2009
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Exercise 6.2. Perform database backup and store it in another storage device
a. Click Start
Button (lower leftmost corner of the screen)
b. Click All Programs > Microsoft SQL Server 2005> SQL Server Management Studio
Express
c. Click Connect
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d. Click + before the Databases to expand and view all databases > Right Click on the
database that you want to back up > Click Tasks > Click Backup.
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e. Click OK when Backup Database window appears. Take note of the default location of the
backup. See example below (c:\Program Files\Microsoft SQL
Server\MSSQL.1\MSSQL\Backup\SBO)
f. Retrieve the backup database. Go to Start > Computer > Local Disk (C:) > Program Files >
Microsoft SQL Server > MSSQL.1 > MSSQL > Backup g. Copy the backup file with an extension file
of .bak and save it to another storage device.
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