Solution Design Document: Implementation of SAP Business One at Boston - Proper

Solution Design Document
Implementation of SAP Business One at Boston_Proper
Version 1.1
Prepared by Deyanira Hurtado
Date 17/04/2019
190100US
Sapphire Systems Inc, The Chrysler Building, Level 46, 405 Lexington Avenue, New York, New York, 10174 | +1 (212) 905 0100
Registered in England - No: 3101259 | Registered Office: 300 West Colorado Boulevard, Pasedena, CA, 91105 | FEIN: 26-2694787
CONTENTS
Version control Summary ............................................................................................................................................................................................................. 5
Introduction ........................................................................................................................................................................................................................................... 6
2.1 Overview..................................................................................................................................................................................................................................................................... 6
2.2 External Documents ........................................................................................................................................................................................................................................ 6
2.3 Glossary - Definitions ....................................................................................................................................................................................................................................... 6
2.4 Deployment Platform..................................................................................................................................................................................................................................... 7
2.5 Project Information .......................................................................................................................................................................................................................................... 7
2.5.1 Current System .................................................................................................................................................................................................................................................. 7
2.5.2 Client Information .......................................................................................................................................................................................................................................... 7
2.5.3 Partner Information ...................................................................................................................................................................................................................................... 7
Project Landscape.............................................................................................................................................................................................................................. 8
3.1 Deliverable Description ................................................................................................................................................................................................................................. 8
3.1.1 Solution Overview ............................................................................................................................................................................................................................................. 8
3.1.2 Roles ............................................................................................................................................................................................................................................................................ 9
3.2 Localization .............................................................................................................................................................................................................................................................. 9
3.3 Databases.................................................................................................................................................................................................................................................................. 9
Business Solution Description.................................................................................................................................................................................................... 10
4.1 Sales ............................................................................................................................................................................................................................................................................... 10
4.1.1 Managing Demand ........................................................................................................................................................................................................................................ 10
4.1.2 Manage Customer Returns .................................................................................................................................................................................................................... 16
4.1.3 Crediting a Customer................................................................................................................................................................................................................................... 21
4.2 Accounts Receivables / Credit Control ............................................................................................................................................................................................. 23
4.2.1 Monitor Accounts Receivables ............................................................................................................................................................................................................. 23
4.2.2 Posting an Incoming Payment .......................................................................................................................................................................................................... 25
4.3 Purchasing ............................................................................................................................................................................................................................................................... 27
4.3.1 Managing a Purchase Order .................................................................................................................................................................................................................. 27
4.3.2 Managing a Vendor Return ................................................................................................................................................................................................................... 33
4.3.3 Receiving an AP Credit Note ................................................................................................................................................................................................................ 38
4.3.4 Allocate Landed Costs................................................................................................................................................................................................................................ 41
4.4 Accounts Payables ............................................................................................................................................................................................................................................ 44
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Not to be reproduced without the express consent of Sapphire Systems Inc
4.4.1 Monitoring Accounts Payables ........................................................................................................................................................................................................... 44
4.4.2 Posting an Outgoing Payment .......................................................................................................................................................................................................... 45
4.4.3 Generate a Payment Run ....................................................................................................................................................................................................................... 47
4.5 Business Partners Management........................................................................................................................................................................................................... 49
4.5.1 Create a Customer.......................................................................................................................................................................................................................................... 49
4.5.2 Create a Vendor ............................................................................................................................................................................................................................................... 52
4.6 Inventory .................................................................................................................................................................................................................................................................... 53
4.6.1 Define a New Warehouse......................................................................................................................................................................................................................... 53
4.6.2 Create an Item .................................................................................................................................................................................................................................................. 54
4.6.3 Transfer Items between Warehouses ........................................................................................................................................................................................... 56
4.6.4 Apply Inventory Decrease Adjustment ....................................................................................................................................................................................... 58
4.6.5 Apply Inventory Increase Adjustment .......................................................................................................................................................................................... 60
4.6.6 Count Inventory ............................................................................................................................................................................................................................................... 62
4.6.7 Manage a Pricing Scheme ..................................................................................................................................................................................................................... 65
4.7 Financial Management and Accounting ....................................................................................................................................................................................... 67
4.7.1 Maintain the Chart of Accounts .......................................................................................................................................................................................................... 67
4.7.2 Create a Manual Journal Entry Posting....................................................................................................................................................................................... 69
4.7.3 Maintain a Transaction Template ..................................................................................................................................................................................................... 69
4.7.4 Recurring Postings ....................................................................................................................................................................................................................................... 69
4.7.5 Define Cost Centers Analysis and Project Accounting .................................................................................................................................................. 70
4.7.6 Manage Expenses .......................................................................................................................................................................................................................................... 73
4.7.7 Financial Budget............................................................................................................................................................................................................................................. 74
4.7.8 Check Management.................................................................................................................................................................................................................................... 75
4.7.9 Bank Reconciliation ..................................................................................................................................................................................................................................... 75
4.7.10 Accruals and Prepayments.................................................................................................................................................................................................................. 75
4.7.11 Tax Management ........................................................................................................................................................................................................................................... 75
4.7.12 Tax Reporting – Tax Return .................................................................................................................................................................................................................. 77
4.7.13 Financial Reporting..................................................................................................................................................................................................................................... 78
4.8 Fixed Assets Management ......................................................................................................................................................................................................................... 79
4.8.1 Create and Capitalize a Fixed Asset................................................................................................................................................................................................. 79
4.8.2 Ordinary Depreciation ............................................................................................................................................................................................................................... 82
4.8.3 Retirement ........................................................................................................................................................................................................................................................... 83

4.8.4 Transfer ................................................................................................................................................................................................................................................................... 84
4.8.5 Fixed Assets History Sheet...................................................................................................................................................................................................................... 85
4.9 1099 Reporting ...................................................................................................................................................................................................................................................... 86
System Description ........................................................................................................................................................................................................................... 86
5.1 System Modifications ...................................................................................................................................................................................................................................... 86
5.1.1 UDF: User Defined Fields ............................................................................................................................................................................................................................ 86
5.1.2 New Purchase Order Draft Alert

Error! Bookmark not defined.
5.1.3 Counter Widget: Purchase Orders without BP Reference

Error! Bookmark not defined.
5.2 Database Setup.................................................................................................................................................................................................................................................... 87
5.2.1 Irreversible Settings........................................................................................................................................................................................................................................ 87
5.3 System Accessibility – Authorizations ............................................................................................................................................................................................... 88
5.4 User Environment.............................................................................................................................................................................................................................................. 88
5.4.1 Mandatory Fields.............................................................................................................................................................................................................................................. 89
Reporting ................................................................................................................................................................................................................................................. 90
Print Layouts .......................................................................................................................................................................................................................................... 91
Produmex Warehouse Management System................................................................................................................................................................. 94
8.1 Warehouse Layout (Organizational Structure) ......................................................................................................................................................................... 94
8.1.1 Warehouses ........................................................................................................................................................................................................................................................... 94
8.1.2 Zones .......................................................................................................................................................................................................................................................................... 94
8.1.3 Bins............................................................................................................................................................................................................................................................................... 95
8.1.4 Moveable Locations....................................................................................................................................................................................................................................... 95
8.1.5 SSCC / License Plates.................................................................................................................................................................................................................................... 96
8.2 Purchase Order Receiving .......................................................................................................................................................................................................................... 96
8.3 Quality Assurance/Re-box ........................................................................................................................................................................................................................... 96
8.4 Put Away Process ............................................................................................................................................................................................................................................... 97
8.5 Sales Order – Fulfillment .............................................................................................................................................................................................................................. 97
8.5.1 Sales Order Preparation ............................................................................................................................................................................................................................. 98
8.5.2 Sales Order Picking ....................................................................................................................................................................................................................................... 98
8.5.3 Packing and Shipping ................................................................................................................................................................................................................................ 99
8.5.4 Returns Processing....................................................................................................................................................................................................................................... 100

8.5.5 Cycle Count .......................................................................................................................................................................................................................................................... 103
Data Transfer Strategy..................................................................................................................................................................................................................... 105
Pending Issues ..................................................................................................................................................................................................................................... 106
Sign Off & Acceptance ..................................................................................................................................................................................................................... 107

VERSION CONTROL SUMMARY
Date Version Produced By Details
17/04/2019 1.0 Deyanira Hurtado
22/04/2019 1.1 Deyanira Hurtado Process flow section 4.3.1 updated and sections 5.1.2
and 5.1.3 removed.
© Copyright Sapphire Systems Limited Page 5

Not to be reproduced without the express consent of Sapphire Systems plc
INTRODUCTION
2.1 Overview
The purpose of this document is to record the requirements of Boston_Proper and to detail how SAP Business One could be
set up to meet them.
Any modification to the settings described in this document will then need to be specified and agreed to a Change Request
Form to be provided by Sapphire.
This document has been prepared using information gathered during system design discussions between Sapphire and
Boston_Proper. Sapphire would like to take this opportunity to thank Boston_Proper staff for their time and input during the
design process.
2.2 External Documents

SAP Business One will be complemented by the operation of other solutions that will cover specific parts of the company’s
operations. This document should be read along with other supporting material provided.
The current document contains references and needs to be read along with the documents listed below to gain a full
understanding of the design.
 Design Support Document.xlsx. It describes the main setup required for SAP Business One. Author: Boston_Proper
Team
2.3 Glossary - Definitions

Some of the terms regularly used in the documentation for implementation and development of SAP Business One.
 SAP: Systems, Applications & Products

 SAP B1: SAP Business One
 DSD: Design Support Document. Shared as a separate document, part of the design process
 UDF: User Defined Field – Fields that do not exist as standard in SAP Business One but are explicitly created for this
implementation
 UDT: User Defined Tables – Data tables that do not exist as standard in SAP but are expressly created for this
implementation
 UDO: User Defined Object – Linked data tables that do not exist as standard in SAP Business One but are designed
specifically for this implementation
 Query: SQL report which can be displayed on the screen or used to apply a specific search
 Formatted Search: Query attached to a field to populate it with the results of an automation
 SDK: SAP Business One Software Development Kit
 API: An application programming interface
 UI API: User Interface API
 DI API: Data Interface API
 Business Partners: Customers, Vendors, Lead
 Items: Articles of Items (inventory & non-inventory), Products, Services

 Sales – AR: Sales Accounts Receivable
 Purchases – AP: Purchases Accounts Payable. Buying Process
 BOM: Bill of Materials
2.4 Deployment Platform

 SAP Business One 9.3 (HANA Version)
2.5 Project Information
2.5.1 Current System

Current System Great Plains and OPCS
2.5.2 Client Information

Name Boston_Proper
Address 1155 Broken Sound Parkway NW, Suite A-D, Boca Raton, FL 33487
Telephone 561 990-1746
Website https://www.bostonproper.com/
Project Manager Yvonne Bramble
2.5.3 Partner Information

Name Sapphire Systems Inc.
The Chrysler Building

Level 46
Address
405 Lexington Avenue
New York, 10174
Telephone +1 (212) 905 0100
Website http://www.sapphiresystems.com
Project Manager Donna Jones
Lead Consultant Deyanira Hurtado

PROJECT LANDSCAPE
3.1 Deliverable Description
3.1.1 Solution Overview

SAP Business One will replace the current backend system used, with a common platform, aiming at covering a broader
part of the Operations of the Organization and applying best-practices in areas that were covered less effectively or not
covered at all. A principal driver for the change is also to enhance and extend the reporting capabilities of the company,
combining information from different places in the organization’s value chain and reaching information currently less
approachable.
The areas covered in the implementation and described in the document are:
 Sales
 Accounts Receivables / Credit Control
 Purchasing
 Accounts Payables
 Business Partners Management
 Inventory
 Financial Management and Accounting

3.1.2 Roles
The following business roles have been identified to control or be responsible for a business process or task:
 Operations Department
 Finance Department
 Warehouse Department
 Sales Department
3.2 Localization
SAP Business One is available in a number of languages and has local settings to comply with the accounting rules and
regulations of different countries.
The localization is defined when creating each company and cannot be changed later.
Languages English
Localization US
3.3 Databases
The following companies will be set up in SAP Business One:
Company Local System

Company Databases Localization Based on Type
Name Currency Currency
MASTER_Boston_Pro MASTER
US USD USD Master
per Boston_Pro
per
TEST MASTER_Boston_Pro Test
TEST_Boston_Proper US USD USD
Boston_Pro per
PROD_Boston_Prop per
Boston_Pro MASTER_Boston_Pro Production
US USD USD
er per per
Notes:
 The Test Databases can be regularly recreated to allow Boston_Proper to have test training companies as well as
formal UAT test companies.
 However, regularly creating new Test Databases is a time-consuming process. Data needs to be accumulated in the
Test Databases so that the system and the reports can be evaluated appropriately.
 Following each testing stage, the Master Database (Build) will be updated with any change agreed. From this
Master Database (Build) at the end of the implementation process, the Production Database will be created.
 It is critical to ensure that the Master Database (Build) will remain free of any transaction.

BUSINESS SOLUTION DESCRIPTION
4.1 Sales
The organization is using the Sales related processes to capture and fulfill customer demand. Those processes, with their
steps, are described in detail below.
4.1.1 Managing Demand

This process monitors all the steps from the creation of the demand in the system until its final delivery and invoicing.
The primary input and trigger for the process is the posting of a Sales Order document, it will be created in OMS and will be
transferred into SAP via integration, with the corresponding AR Down Payment Invoice 100% and the payment of the Invoice.
WMS will receive the information to process the order (Pick, Pack and Ship), and a Delivery Note will be posted in SAP. Finally,
a user will copy Deliveries into final AR Invoices that will be linked to the initial AR Down Payment Invoice, the total open
balance of the AR Invoice will be zero.
The primary output of the process is the AR Invoice with which the items are dispatched to the customer.

4.1.1.1 Create Sales Order
Roles Involved OMS Sales Force - MuleSoft
Environment SAP Business One
SAP Business One Impact New Sales Order, Committed inventory Increase, Decrease of available inventory
Required Input -
Sales Order is created in Sales Force and only the Sales Orders that can be fulfilled based on the available stock will be sent
to SAP. The inventory becomes committed to fulfilling this order.
The fields that need to be set for each Sales Order:
Document Header
Field Description Mandatory Comments
Customer Code 
Customer Name 
Document Series 
Posting Date 
Delivery Date 
Document Date 
Bill-to Address
Ship-to Address
Payment Terms Default from the BP
Customer Reference  Sales Force Reference # - OMS
Shipping method 
Document Discount
Sales Order Type  UDF valid values
Exchange Order # UDF - OMS
Source Code UDF valid values
Shop Runner Order? UDF valid values Yes/No
Shipping Costs Freight
Remarks
Final Ship to Address UDF for international orders.
International order? UDF valid values Yes/No

SO Cancellation
UDF valid values
Reason
Document Lines
Item Code 
Item Description
Quantity  In units
Warehouse 
Unit Price  Customer Price
Discount (%) For Line Item Total
TAX Code  EX
MSRP Price UDF
Advertised Price UDF
Shipping Type UDF
Gift Item? UDF valid values Yes/No
Notes Legal text field in SAP
Gift Wrap? UDF valid values Yes/No
Gift Message? UDF valid values Yes/No
Expected Date UDF date
The TAX number is generated automatically, based on the customer in the Sales Order document.
Creating a Sales Order does not have any impact on General Ledger. Committed inventory increases and, subsequently, the
available inventory quantity.
In the example of a situation where we have 1.000 units in inventory in the warehouse, the effect of a Sales Order of 100 units
will be as below.
Inventory In Stock Committed Ordered Available
Quantity: 100 1,000 100 900
4.1.1.2 Create AR Down Payment Invoice

Roles Involved OMS Sales Force - MuleSoft

SAP Business One Impact New AR Down Payment Invoice, GL Accounts updated
Required Input Sales Order
The company can require down payments from customers to ensure they are committed and will follow through with the
orders they place. This is an event-based decision task of the Sales Execution, where a part of the full amount of the Sales
Order value is requested as a Down Payment. The document is created with a manual, one-to-one based method, copying
from each Sales Order.
Same as before, the information is copied over from the order and can be amended manually in case there is any difference.
The fields required are the same as the previous task, having a difference in the selection of the Down Payment amount.
Boston Proper will have the AR Down Payment Invoice information coming into SAP at the same time that the Sales Order
is created, a Sales Order will always have a 100% AR Down Payment Invoice and the Incoming Payment linked and created
automatically via integration (Mulesoft – OMS).
The fields that need to be set for each AR Down Payment Invoice are:
Document Header
DPM %  Down Payment % = 100% Always
DPM  Down Payment Amount
Creating an AR Down Payment Invoice based on a Sales Order will create a Journal Entry in General Ledger, and Inventory
will not be affected.
Account Debit Credit
Accounts Receivables 1080

TAX 80
Payment Advances 1,000
The accounts are retrieved from:
 Accounts Receivables, from the Control Account, set at Business Partner level.
 TAX account, from the account linked to the Tax Code used in the document, as described in the Design Support
Document, Tax codes sheet.
 Payment Advances account, set at Business Partner level.
4.1.1.3 Create Delivery Note

Roles Involved Warehouse management department.

SAP Business One Impact New Delivery Note, Closed Sales Order, decrease of committed inventory, Decrease
of In Stock Quantity, GL Accounts updated
Required Input Sales Order
The delivery note is the document with which the items are dispatched to the customer. They are created in a one-to-one
manual basis, as copies from existing Sales Orders.
The fields required are the same as the previous task.
For Boston Proper the Delivery Note will be automatically created by WMS to confirm that the Sales Order was processed
and shipped to the customer. The detail of this process can be reviewed in Section 8.5 Sales Order – Fulfillment.
Creating a Delivery Note based on a Sales Order will create a Journal Entry in General Ledger and reduce the amount of In
Stock and remove the Committed quantity. An AR Invoice can be created based on the Delivery Note.
The actual journal will be for Delivery Notes:
Inventory account 500

Cost of Goods Sold 500
 Inventory account, from the setting Inventory Item in the Item Group GL Account determination, as described in
the Design Support Document, Item Group sheet.
 Cost of Goods Sold, from the setting Cost of Goods Sold in the Item Group GL Account determination, as described
in Design Support Document, Item Group sheet.
The impact on the inventory status will be as below:
Quantity: 900 900 900
4.1.1.4 Create AR Invoice

Roles Involved Finance Department
SAP Business One Impact New AR Invoice, Closed Delivery Note, GL Accounts updated
Required Input Delivery Note

This is the final task of the Managing a Sales Order process, where an AR Invoice is created for each Delivery Note, closing the
cycle and generating the input for the Credit Accounts and Accounts Receivables later. The document is created with a
manual, one-to-one based method, copying from each Delivery Note.
Like the previous tasks, the information is inherited from the Delivery Note with any change required, done to the document
at the time of posting.
Boston Proper will copy the Deliveries that were automatically created through WMS into AR Invoices, this process is manual
and SAP will automatically link the AR Down Payment from the base Sales Order.
Creating an AR Invoice based on a Delivery Note will create a Journal Entry in General Ledger, and Inventory will not be
affected.
Accounts Receivables 1,080

TAX 80
Revenue 1,000
Creating an AR Invoice based on a Delivery Note with and applied AR Down Payment Invoice create a Journal Entry in
General Ledger and Inventory will not be affected.
Down Payment Clearing 1,080
TAX 80
Revenue 1,000
 Accounts Receivables, from the Control Account, set at Business Partner level
 TAX account, from the account linked to the tax code used in the document, as described in the Design Support
Document, TAX codes sheet.
 Revenue account, from the setting Revenue in the Item Group GL Account determination, as described in Design
Support Document, Item Group sheet
 Payment Advances account, from the Control Account, set at Business Partner level.
4.1.1.5 Amazon Process

For the transactions happening in Amazon, Boston Proper will setup a virtual warehouse for Amazon orders.
Users will create a Stock Transfer Request, warehouse users will process the request in WMS and the Stock Transfer will be
created in SAP.
Periodically, the Finance team will create AR Invoices against Amazon warehouse to recognize the revenue. If an adjustment
needs to be done, they will use AR Credit Notes using the same Amazon warehouse, with or without quantity.

4.1.2 Manage Customer Returns
Manage Customer Returns is the process in which the customer requests returning items that have been shipped and
invoiced. Task by task, this request is served by returning items into the warehouse.
The main input and trigger for the process is the posting of a Return Request document in the system, which will then be
transformed to a Return if the request is accepted.
The main output of the process is the Return in which the items are returned from the customer to the warehouse.
4.1.2.1 Create Return Request (AR) based on a Delivery Note

Roles Involved Operations Department

SAP Business One Impact New Return Request (AR), Increase of Ordered inventory, Increase of available
inventory
Boston Proper will not use this Copy To option, the user will create the Return Request referenced to the Sales Order. Return
Request will come from OMS, two types: Exchange and Return/Refund. The RMA will be processed and converted into a
Return by WMS, OMS will take the Return and convert it into a AR Credit Note with a Payment if it was a Return/Refund or it
will trigger the Sales Process without AR Down Payment and Sales Order Type Exchange.
The WMS process can be reviewed in Section 8.5.4 Returns Processing.
A Return Request is created at the point that a customer notifies that item from a Delivery Note will be returned. If the Return
Request is accepted, the agreed quantities, prices, return reason and return action is captured before the goods are received.
The Return Request will be created as a copy of an existing Delivery Note. The new document inherits the information from
the Delivery Note. However, the user can amend that if the final agreement was, in any way, different.
The details in the document are like whatever the Delivery Note contains, with a couple of extra fields required.
The fields that need to be set for each Return Request are:
Document Header
Customer Code 
Customer Name 
Document Series 
Posting Date 
Delivery Date 
Document Date 
Bill-to Address
Ship-to Address
Payment Terms Default from the BP
Customer Reference  Sales Force Reference # - OMS
Shipping method 
Document Discount
Sales Order Type  UDF valid values
Exchange Order # UDF - OMS
Source Code UDF valid values

Shop Runner Order? UDF valid values Yes/No
Shipping Costs Freight
Remarks
Final Ship to Address UDF – Information coming from OMS.
International order? UDF valid values Yes/No
Document Lines
Item Code 
Item Description 
Warehouse 
Unit Price  Customer Price
TAX Code  EX
MSRP Price UDF
Advertising Price UDF
Shipping Method UDF
Gift Item? UDF valid values Yes/No
Notes Legal text field in SAP
Gift Wrap? UDF valid values Yes/No
Gift Message? UDF valid values Yes/No
Warehouse
UDF 500chr length and should be visible in WMS
instructions
Expected Date UDF date
Return Action
Return Reason
Creating a Return Request (AR) does not have any impact on General Ledger. Ordered inventory increases and, subsequently,
the available inventory quantity.

In the example of a situation where we have 900 units in inventory in the warehouse, the effect of a Return Request of 10
units will be as below.
Quantity: 10 900 10 910
4.1.2.2 Create Return Request (AR) based on AR Invoice

SAP Business One Impact New Return Request (AR), Increase of Ordered inventory, Increase of available
inventory
Required Input AR Invoice
Boston Proper will create the Return Requests in OMS and will be created automatically in SAP through the integration.
A Return Request is created at the point that a customer notifies that items from an AR Invoice will be returned. If the Return
Request is accepted, the agreed quantities, prices, return reason and return action is captured before the goods are returned
and credited for.
The Return Request will be created as a copy of an existing AR Invoice. The new document inherits the information from the
AR Invoice. However, the user can amend that if the final agreement was, in any way, different.
The details in the document are like whatever the AR Invoice contains. The fields required are the same from the previous
task.
Creating a Return Request (AR) does not have any impact on General Ledger. Ordered inventory increases and, subsequently,
the available inventory quantity.
Quantity: 10 900 10 910
4.1.2.3 Create Return based on Return Request (AR)

Roles Involved Warehouse department
SAP Business One Impact New Return, Close Return Request, Increase of available inventory
A Return is created once the agreed items from a Return Request arrive back to the warehouse.

Boston Proper could also receive merchandise directly in the warehouse without a Return Request, Warehouse department
will create a Return with reference to the original Sales Order in this scenario.
Creating a Return based on a Return Request (AR), where the source document is a Delivery Note, has an impact on General
Ledger. Inventory increases and, subsequently, the available inventory quantity.
The actual journal for a Return will be:
Sales Returns 50
Cost of Goods Sold 50
 Sales Returns account, from the setting Sales Returns in the Item Group GL Account determination, as described
 Cost of Goods Sold, from the setting Cost of Goods Sold in the Item Group GL Account determination, as described
In the example of a situation where we have 900 units in inventory in the warehouse, the effect of a Return of 10 units will be
as below.
Quantity: 10 910 910
4.1.2.4 Create an AR Credit Note based on Return (AR)

SAP Business One Impact New AR Credit Note, Closed Return, GL Accounts updated, Increase of Ordered
inventory, Increase of available inventory
Required Input Return
An AR Credit Note is created once the agreed items from a Return Request arrive back to the warehouse and the Return
document is created.
Creating an AR Credit Note based on a Return (AR), where the source document is a Delivery, has an impact on General
Ledger.
The actual journal for an AR Credit Note will be:

TAX 8
Sales Credit 100

 Sales Credit account, from the setting Sales Credit in the Item Group GL Account determination, as described in
Design Support Document, Item Group sheet
4.1.3 Crediting a Customer

Crediting a Customer is the process in which Accounts Receivables reduces a customer’s Open Balance from an Invoice,
without expecting items to be returned.
The main input and trigger for the process is the request of a Refund out of the system, which will then be transformed to a
Credit Note if the request is accepted.
The main output of the process is the AR Credit Note, reducing the outstanding balance of the customer.
Boston Proper will not follow this process as the main one, but could be useful under the scenario where they don’t receive
the merchandise in the warehouse but will refund the customer.

4.1.3.1 Credit Note based on AR Invoice without Quantity
SAP Business One Impact New AR Credit Note, GL Accounts updated
Required Input AR Invoice
The company might be required to reduce the open balance of an AR Invoice without involving the return of items back into
inventory, even after the creation of an AR Invoice. To do so, the checkbox of without Quantity posting must be activated.
Creating an AR Credit Note based on an AR Invoice without Quantity posting will create a Journal Entry in General Ledger
without affecting Inventory.
The fields that need to be set for each Return Request are:
Document Header
Customer Code 
Customer Name 
Document Series 
Posting Date 
Delivery Date 
Document Date 
Sales Employee
Bill-to Address
Ship-to Address
Payment Terms 
Document Lines
Item Code 
Warehouse 
Unit Price 

TAX Code 
Without Quantity 
Posting
Return Action
Return Reason
The actual journal for an AR Credit Note will be:

TAX 8
Sales Credit 100
 Sales Credit account, from the setting Sales Credit in the Item Group GL Account determination, as described in
Design Support Document, Item Group sheet
4.2 Accounts Receivables / Credit Control
4.2.1 Monitor Accounts Receivables

Monitor Accounts Receivables is the process in which a company reviews all customer’s open documents.

4.2.1.1 Generate Ageing Report
Roles Involved Accounts Receivables – Finance Department
SAP Business One Impact Customer Ageing Report
Required Input AR Invoice, AR Reserve Invoice, AR Credit Note, Incoming Payment, Outgoing
Payments,
Boston Proper will follow this process under a few scenarios, according to their business model and rules, the Sales Orders
are processed and shipped after the payment is created. Customers could have balance linked to AR Credit Notes.
The outstanding invoices of customers will be monitored through the Ageing Report option. This report provides a list of all
customers’ open documents. The report is run for a specific range of dates and for different time periods. The functionalities
below will be used:
 Run the report per Customer
Different days-bands may be used when extracting the report.
4.2.1.2 Apply manual reconciliation

Roles Involved Accounts Receivables – Finance Department
SAP Business One Impact Closed AR Invoice, Closed AR Reserve Invoice, Closed AR Credit Note

Required Input AR Invoice, AR Reserve Invoice, AR Credit Note, Incoming Payment, Outgoing
Payments
Applying manual reconciliation will close documents when the open amount is equal to the reconciled amount. No journal
entries are expected when reconciling transactions posted in the Local Currency where no exchange rates differences apply.
Boston Proper will use this process to reconcile the Exchange process, the return process will have as input an AR Credit
Memo and the Exchange Shipping will result into an AR Invoice. Finance Department will reconcile both documents, AR
Credit Memo and AR Invoice to clear the balance of the customer.
Sales Orders will be flagged as Exchange Order Type, that will make it easier to track them in the process and for reporting
filters.
4.2.2 Posting an Incoming Payment

An Incoming Payment can be posted in the system, against specific transactions or as an advance payment. The payment
means used are:
 Cash
 Check
 Credit Card
 Bank Transfer
4.2.2.1 Create an Incoming Payment

Roles Involved Accounts Receivables
SAP Business One Impact New Incoming Payment, GL accounts updated
Required Input AR Invoice, AR Reserve Invoice, AR Down Payment Invoice
An incoming payment will be created to clear the debt of an open A/R invoice or an opening balance. One payment is posted
for each customer choosing the way of payment as well as the relevant AR documents – if any. By doing that, those
documents selected are cleared (fully or partially) automatically.
Boston Proper will have the Incoming Payment linked to the AR Down Payment created automatically by the integration
with Sales Force. Exceptions will be entered manually by Finance Department.

The fields that need to be set for each Incoming Payment are:
Document Header
Document Type  Customer/Vendor
Customer Code 
Customer Name 
Document Series 
Posting Date 
Delivery Date 
Document Date 
Reference 8 Characters
Remarks
Journal Remarks
GL Account 
Transfer Date 
Reference  27 Characters
Primary Form Item
Document Lines
Selected Document 
No.
Total Payment 
The actual journal for an Incoming Payment will be:
GL Account 100
Accounts Receivables (Customer Code) 100
 GL Account, Payment Means setting, GL Account in Bank Transfer tab

4.3 Purchasing
4.3.1 Managing a Purchase Order

Purchasing Module is used to process and store purchase documentation such as Purchasing Quotations, Purchase Orders,
Goods Receipt PO, Invoices and Credit Memos. Any Purchase Document can be reprinted, emailed, exported or attached to
contacts and queries.
Purchase Transactions such as item Goods Receipt PO, Returns, Invoices and Credit Memo in SAP Business One update the
accounting with journal entries at the time of being added.

4.3.1.1 Create Purchase Order
SAP Business One Impact New Purchase Order, increase of ordered inventory, increase of available inventory
Required Input -
A Purchase Order is created at the point that the company agrees and gets committed to a Purchase Quotation. Boston
Proper will start this process with the automatic creation of a Purchase Order Draft coming from Soft Vision via integration
for merchandise transactions or manually entered for non-merchandise transactions.
The fields that need to be set for each Purchase Order are:
Document Header
Vendor Code 

Vendor Name 
Document Series 
Posting Date 
Delivery Date = In DC 
date (In house)
Document Date = PO 
Creation Date (Date
issued)
Contact Person Name
Contact Person
Phone
Contact Peron Email
Bill-to Address
Ship-to Address
Payment Terms 
Vendor Reference Vendor Purchase Order No. to confirm the Order - will be updated when they
receive the number. Create a counter to know how many open Purchase Orders
doesn’t have the Reference. (Widget in SAP)
Soft Vision PO # UDF
Legacy Doc. # UDF – Legacy Doc. # for OPCS
Event UDF - 30 char
Planner UDF – 100 char
Sourcing Person UDF – 100 char
FOB UDF – 50 char
Incoterms UDF – 20 char
Ship After Date UDF – date type
Ship Before Date UDF – date type
Remarks
Document Discount
Document Total
Shipping Type

Document Lines
Item Code 
Quantity 
Warehouse 
Unit Price 
TAX Code 
Line Total
Vendor Style # 
(Vendor Mfg Number)
Vendor Color 
Original Qty  UDF – Qty of the 1st version of the PO
Cost Center  For non- merchandise PO – setup by GL Account
ASN # UDF
Container # UDF
Confirmed Qty UDF
Shipping Type UDF
In DC Date by line UDF date type
Ship After Date UDF date type
Ship Before Date UDF date type
Ship Date UDF date type
HTS Code UDF coming from Product
The TAX number is generated automatically, based on the Vendor in the Purchase Order document.
Creating a Purchase Order does not have any impact on General Ledger. Inventory Quantities are marked as Ordered and,
subsequently, the available inventory quantity increases to the agreed upon ordered quantity.

In the example of a situation where we have 1,000 units in inventory in the warehouse, the effect of a Purchase Order of 100
Quantity: 10 1,000 100 1,100
4.3.1.2 Create AP Down Payment Invoice

SAP Business One Impact New AP Down Payment Invoice, GL Accounts updated
Required Input Purchase Order
Creating an AP Down Payment invoice is an event-based task, used when a vendor requires the company to pay in advance
the orders placed. The document is created with a manual, one-to-one based method, copying from each Purchase Order.
Non- paid AP Down Payment Invoices will be reflected as an outstanding Accounts Payable.
Boston Proper will use this document for non-merchandise transactions as needed.
The information is copied over from the order and can be amended manually in case there is any difference. The fields
required are the same as the previous task, having a difference in the selection of the value of the required Down Payment.
The additional fields required to be set for each AP Down Payment Invoice are:
Document Header
DPM %  Down Payment %
DPM  Down Payment Amount
Creating an AP Down Payment Invoice based on a Purchase Order will create a Journal Entry in General Ledger. Inventory
will not be affected.
Accounts Payables 540

Payment Advances 540
 Accounts Payables, from the Control Account, set at Business Partner level.
4.3.1.3 Create Goods Receipt PO

Roles Involved Warehouse Department (Merchandise) / Finance (Non-merchandise)

SAP Business One Impact New Goods Receipt PO, Closed Purchase Order, decrease Ordered inventory,
Increase In Stock, GL Accounts updated
The Goods Receipt PO is the document to acknowledge that items sent by the Vendor are received into the company. They
are created in a one-to-one manual basis, as copies from existing Purchase Orders.
Boston Proper will have the GRPO created automatically from WMS when the Purchase Order is received and processed in
the warehouse, and the shipping label of the product will come from Process Weaver.
The receiving process details are explained in Section 8.2 Purchase Order Receiving.
For non-merchandise transactions the user will created the GRPO by copying from the original Purchase Order and this
confirms that the service or the non- stock items were received.
The fields required are the same as the previous task.
Creating a Goods Receipt PO based on a Purchase Order will create a Journal Entry in General Ledger and increase the
amount of In Stock and remove the Ordered quantity. An AP Invoice can be created based on the Goods Receipt.
The journal will be for Goods Receipt is:

Allocation account 500
 Allocation account, from the setting Allocation in the Item Group GL Account determination, as described in Design
Support Document, Item Group sheet.
The impact on the inventory status will be as below:
Item Qty=100 1,100 1,100
4.3.1.4 Create AP Invoice

SAP Business One Impact New AP Invoice, Closed Goods Receipt PO, GL Accounts updated
Required Input Goods Receipt PO

This is the final task of the Managing a Purchase Order process, where an AP Invoice is created for each Goods Receipt PO,
closing the cycle and creating the input for Accounts Payables later. The document is created with a manual, one-to-one
based method, copying from each Goods Receipt PO.
Like the previous tasks, the information is inherited from the Goods Receipt PO, allowing changes to the final document at
the time of posting.
Creating an AP Invoice based on a Goods Receipt will create a Journal Entry in General Ledger. Inventory will not be affected.

TAX 40
Creating an AP Invoice based on a Goods Receipt PO with an applied AR Down Payment Invoice creates a Journal Entry in
General Ledger. Inventory will not be affected.
Accounts Payables 0
Down Payment Clearing 540
 Accounts Payables, from the Control Account, set at Business Partner level.
Support Document, Item Group sheet.
4.3.2 Managing a Vendor Return

Through Vendor Return, the company returns goods received to the Vendor.
The main input and trigger for the process is the posting of a Return Request (AP) document in the system, which will then
be transformed into a Goods Return if the request is accepted.
The main output of the process is the Goods Return in which the items are returned from the warehouse to the vendor.

4.3.2.1 Create Return Request (AP) based on Goods Receipt PO
Roles Involved Warehouse Department
SAP Business One Impact New Return Request (AP), Increase of Committed inventory, Decrease of available
inventory
A Return Request is created at the point that the company notifies the vendor that items from a Goods Receipt PO will be
returned. If the Return Request is accepted, the agreed quantities, prices, return reason and return action is captured before
the goods are returned.
The Return Request will be created as a copy of an existing Goods Receipt PO. The new document inherits the information
from the Goods Receipt PO. However, the user can amend that if the final agreement was, in any way, different.
Produmex WMS process details can be reviewed in Section 8.5.4.4 Vendor Return.
The details in the document are like those contained in the Goods Receipt PO, with a couple of extra fields required. The
fields that need to be set for each Return Request are:
Document Header
Vendor Code 
Vendor Name 

Document Series 
Posting Date 
Delivery Date 
Document Date 
Buyer
Bill-to Address
Ship-to Address
Payment Terms 
Vendor Reference
Event UDF - 30 char
FOB UDF – 50 char
Incoterms UDF – 20 char
Remarks
Shipping Type
Document Lines
Item Code 
Warehouse 
Unit Price 
TAX Code 
Return Reason Select from drop-down list.
Return Action Select from drop-down list.
Line Total
Vendor Style # 

Vendor Color 
ASN # UDF – data coming from GRPO
Container # UDF – data coming from GRPO
Confirmed Qty UDF – data coming from GRPO
Creating a Return Request (AP) does not have any impact on General Ledger. Committed inventory increases and,
subsequently, the available inventory quantity decreases.
Quantity: 10 1.000 10 990
4.3.2.2 Create Return Request (AP) based on AP Invoice

SAP Business One Impact New Return Request (AP), Increase of Committed inventory, Decrease of available
inventory
Required Input AP Invoice
A Return Request is created at the point that the company notifies the vendor that items from an AP Invoice will be returned.
If the Return Request is accepted, the agreed quantities, prices, return reason and return action is captured before the goods
are returned.
The Return Request will be created as a copy of an existing AP Invoice. The new document inherits the information from the
AP Invoice. However, the user can amend that if the final agreement was, in any way, different.
The details in the document are like those from an AP Invoice. The fields required are the same from the previous task.
Creating a Return Request (AP) does not have any impact on General Ledger. Committed inventory increases and,
subsequently, the available inventory quantity decreases.
Quantity: 10 1.000 10 990

4.3.2.3 Create a Goods Return based on a Return Request (AP)
SAP Business One Impact New Goods Return, Close Return Request, Decrease of In inventory
A Goods Return is created once the agreed items from a Return Request arrive back to the warehouse.
The Goods Return will be created as a copy of an existing Return Request (AP). The new document inherits the information
from the Goods Return. However, the user can amend that if the final agreement was, in any way, different.
Creating a Return based on a Return Request (AP), where the source document is a Goods Receipt PO, has an impact on
General Ledger. In inventory decreases and, subsequently, the available inventory quantity.
The actual journal for a Goods Return will be:
Allocation Account 50
Inventory Account 50
 Inventory, from the setting Inventory in the Item Group GL Account determination, as described in Design Support
Document, Item Group sheet.
In the example of a situation where we have 1000 units in inventory in the warehouse, the effect of a Return of 10 units will
be as below.
4.3.2.4 Create an AP Credit Note based on Return (AP)

SAP Business One Impact New AP Credit Note, Closed Return, GL Accounts updated
Required Input Return
An AP Credit Note is created once the agreed items from a Return Request are delivered from the warehouse, the Return is
created and an AP Credit Note is received from the vendor.
The details in the document are like those contained in a Return. The fields required are the same from the previous task.

Creating an AP Credit Note based on a Return (AP), where the source document is an AP Invoice, has an impact in General
Ledger.
The actual journal for an AP Credit Note will be:
Accounts Payable 60
Allocation Account 60
 Accounts Payables, from the Control Account, set at Business Partner level
4.3.3 Receiving an AP Credit Note

We may want to return 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 Note 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 Note. You can create the A/P Credit Note 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 Note without having a base
document.

4.3.3.1 Create an AP Credit Note without Quantity Posting based on AP Invoice
Roles Involved Accounts Receivables
SAP Business One Impact New AP Credit Note, GL Accounts updated
Required Input AP Invoice
The company might be required to reduce the open balance of an AP Invoice, without involving the return of items back to
the Vendor, even after the creation of an AP Invoice. To do so, the checkbox of without Quantity posting must be activated.
Creating an AP Credit Note based on an AP Invoice without Quantity posting will create a Journal Entry in General Ledger
without affecting Inventory.
The fields that need to be set for each AP Credit Note are:
Document Header
Vendor Code 
Vendor Name 
Document Series 
Posting Date 
Delivery Date 
Document Date 
Buyer
Bill-to Address
Ship-to Address
Payment Terms 
Vendor Reference
Document Lines
Item Code 
Merchandise
Item Description / 
Description

Quantity 
Merchandise
Warehouse 
Merchandise
Unit Price 
TAX Code 
Without Quantity 
Posting Merchandise
Return Reason Credit Reason
Return Action Credit Action
Vendor Style # 
Vendor Color 
The actual journal for an AP Credit Note (Merchandise) will be:
TAX 20
The actual journal for an AP Credit Note (Non-Merchandise) will be:
TAX 20
Expense Account 100
 Inventory, from the setting Inventory in the Item Group GL Account determination, as described in Design Support
Document, Item Group sheet

 Expense, defined on the document at line level for that specific transaction.
4.3.4 Allocate Landed Costs

Landed Cost Document is used to distribute the already spent expenses on the items. The distribution method can be
defined at the setup screen and can be changed on the fly according to the nature of the transaction. Landed Costs supports
the following Documents as Base Document: GRPO, AP Invoice, Landed Cost.
4.3.4.1 Create Landed Cost Based on Marketing Document

SAP Business One Impact Landed Cost Document/ Item Cost Update
Required Input Goods Receipt PO, AP Invoice
Allocating the expenses on the items Landed Costs will be used.
The fields that need to be set for each Landed Costs Document are:
Document Header

Vendor Code 
Vendor Name 
Broker Code
Broker Name
Document Series 
Posting Date 
Due Date 
Reference
Costs Tab
Allocation by
Amount 
Include for Duty
In the example of a situation where we have 500 expense to allocate to the items

Landed Cost Allocation Account 500
4.3.4.2 Create Landed Cost Based on Landed Cost Document

SAP Business One Impact Landed Cost Document/ Item Cost Update
Required Input Landed Costs Document
Necessary fields are same as per section 4.3.4.1 Create Landed Cost Based on Marketing Document
In the example of a situation where the previous 500 expense is increased to 600
Example 2
Debit Credit
Account


In the example of a situation where the previous 500 expense is decreased to 300
Example 2
Debit Credit
Account


4.4 Accounts Payables
4.4.1 Monitoring Accounts Payables

This includes the monitoring of the balances and overdue documents of Vendors. Two screens will be used for that reason:
 Vendors Ageing Report

 Trial Balance (based on Vendors)
The Vendors Ageing Report will show the documents of the Vendors in four different, user-defined time-bands. The basis for
putting a document in a band can be either the posting date or the due date of the document.
The Trial Balance shows the opening balance, the total amounts as well as a final balance for all vendors for the period
selected.

4.4.1.1 Generate Ageing Report by Vendor
Roles Involved Accounts Payable – Finance Department
SAP Business One Impact Vendor Ageing Report
Required Input AP Invoice, AP Reserve Invoice, AP Down Payment Invoice, AP Credit Note, Outgoing
Payments
The outstanding invoices of Vendors will be monitored through the Ageing Report option. This report provides a list of all
Vendors’ open documents. The report is run for a specific range of dates and for different time periods. The functionalities
below will be used:
 Run the report per Vendor
Different time intervals may be used when extracting the report.
4.4.1.2 Apply manual reconciliation

Roles Involved Accounts Payables – Finance Department
SAP Business One Impact Closed AP Invoice, Closed AP Reserve Invoice, Closed AP Down Payment Invoice,
Closed AP Credit Note
Required Input AP Invoice, AP Reserve Invoice, AP Down Payment Invoice, AP Credit Note, Outgoing
Payments,
Applying manual reconciliation will close documents when the open amount equals the reconciled amount. No journal
entries are expected when reconciling transactions posted in the Local Currency where no exchange rates differences apply.
4.4.2 Posting an Outgoing Payment

An Outgoing Payment can be posted in the system, against specific transactions or as an advance payment. The payment
means used are:
 Cash
 Check
 Credit Card
 Bank Transfer

4.4.2.1 Create an Outgoing Payment
SAP Business One Impact New Outgoing Payment, GL accounts updated
Required Input AP Invoice, AP Reserve Invoice, AP Down Payment Invoice
You can create an outgoing payment against one or more open documents or a payment on account.
When you create an outgoing payment to clear (fully or partially) a document or transaction, internal reconciliation takes
place automatically.
Creating a bank transfer Outgoing Payment will create a Journal Entry in General Ledger.
The fields that need to be set for each Outgoing Payment are:
Document Header
Document Type  Customer/Vendor
Vendor Code 
Vendor Name 
Document Series 
Posting Date 
Delivery Date 
Document Date 
Reference 8 Characters. Counter Reference
Remarks
GL Account 
Transfer Date 
Transfer Reference  27 Characters
Primary Form Item
Document Lines
Selected Document 
No.
Total Payment 

The actual journal for an Outgoing Payment will be:
Bank Account 100
 Bank Account, Payment Means setting, GL Account in Bank Transfer tab.
4.4.3 Generate a Payment Run

The payment wizard enables you to generate in batch outgoing payments of bank transfer or check type, according to the
criteria selected.
Using the payment wizard requires the following steps to prepare the relevant master data properly:
 Create Payment methods

 Define the default payment method for business partners
 Define vendor bank details (for bank transfer payment runs).

4.4.3.1 Create an Outgoing Payment through Payment Wizard
SAP Business One Impact New Outgoing Payment, GL accounts updated
Required Input AP Invoice, AP Reserve Invoice, AP Down Payment Invoice
The Payment Wizard allows creating multiple outgoing payments to clear the debt of any open document per Vendor. When
you create an outgoing payment to clear (fully or partially) a document or transaction, internal reconciliation takes place
automatically.
Creating a bank transfer Outgoing Payment will create a Journal Entry in General Ledger.
The actual journal for an Outgoing Payment will be:
GL Account 100
 GL Account, from the House Bank, Payment Methods, Payment Means setting GL Account in Bank Transfer tab, as
described in the Design Support Document, Payment Methods sheet.

4.5 Business Partners Management
Under the Business Partners module, all the information relevant to Customers, Vendors, and Leads (interested parties) is
stored. Maintaining business partner master data enables keeping contact details, contact persons, addresses, payment
terms up to date, to be able to reuse this data in financial and logistics transactions.
Below, we describe the processes related to maintaining a Business Partner.
4.5.1 Create a Customer

Information of any potential customer that contacted the company for any reason can be stored. Data and lists from various
sources can be uploaded and used as the source for a marketing campaign or any other related activities.
4.5.1.1 Create a Customer Business Partner

Roles Involved Sales Representative
SAP Business One Impact New Customer Business Partner
Required Input
Boston Proper will use a dummy Customer for all transactions (non Amazon), and the addresses will be updated directly in
the Sales Order. For Amazon transactions, a specific customer will be created for this process.
The details required for each Customer are:
Master Data
Type  Lead/ Customer
Code
Name 
Foreign Name
Group 

Currency 
TAX Number
Tel. 1
Email
Shipping Type
Fax
Legacy Code (Alias)
Contact Persons
Contact ID 
First Name
Surname
Telephone 1
Mobile Phone
E-Mail 
E-Mail Group
Position
Addresses
Type  Bill To / Ship
Address ID  Minimum 1 Bill To and 1 Ship to Address
Address Name 2 = Attn.  To be used for Attn. contact name.
Street/ PO Box 
Building/Floor/Room
City 
State 
Postcode 
Country 

Bank
Bank Code  System Mandatory
Bank Country  System Mandatory. Based on Bank Code
Account No.  System Mandatory
Bank Account Name
Branch  Sort Code for the UK
BIC/SWIFT Code  Default System Validation warning per Country
All lines of address are typed by the user. Notes:
 Most address lines are 100 characters of free text apart from the postcode (20char) and country code (2char from
the list).
 The address ID is not listed in the fields included in the printed address format and allows the users to identify the
address recorded as well as select the address when processing documents.
The Business Partner address format printed on marketing documents can be tailored to include or exclude parts of the
Business Partner’s address. The following format can be according to the following format definitions:
Address Name 2
Street/ PO Box
Building/Floor/Room
City, State, Zip Code
Country

4.5.2 Create a Vendor
Information of Vendors that have been contacted by the company can be stored. Data and lists from various sources can
be uploaded and used as the source for a Purchase Process or any other related activities
4.5.2.1 Create a Vendor Business Partner

Roles Involved Finance
SAP Business One Impact New Vendor Business Partner
Required Input
Boston Proper will have an integration with PLM to create merchandise vendors. Non-merchandise vendors will be manually
entered by Finance department.
Merchandise Vendor codes will be same as PLM Vendor codes and Non Merchandise Vendor codes will be automatically
generated in SAP starting with NM0001.
The fields required for a Vendor are the same as in section 4.5.1.1 Create a Customer Business Partner

4.6 Inventory
The Inventory module can be used to manage item master data records, work with serial and batch numbers; manage
inventory transactions; and generate inventory related reports.
4.6.1 Define a New Warehouse

Multiple warehouses can be defined according to inventory management, and a clear distinction is usually made between
them.
4.6.1.1 Create a Warehouse

Roles Involved Logistics
SAP Business One Impact New Warehouse
Required Input -
Warehouses are defined for companies that require a storage location for items and are used for all transactions.
The fields that need to be set for each Warehouse are:
Warehouse
Warehouse Code 
Warehouse Name 
Location
Dropship Can be used when a vendor delivers items directly to the Customer.
Netable Makes the warehouse available for the MRP process.
Enable Bin Locations Enabling requires the recording of bin locations for all inventory transactions
Tax Code

Allow Use Tax
Street/PO Box
Street No
Block
Building/Floor/Room
Postcode
City
County
Country
The accounts for a new warehouse are retrieved from:
 Setting Inventory GL Accounts – Account Code, in the GL Account (General Determination) Inventory, as described
in the Design Support Document, Item Group sheet.
The following accounts are mandatory:
 Inventory
 Cost of Goods Sold
 Allocation
4.6.2 Create an Item

Creating an Item Master data is used to manage all items that are purchased, manufactured, sold, or kept in inventory by
the company. Services can also be defined as items, although they are only relevant for sales.
Boston Proper will generate the SKU’s in PLM and will come into SAP through an integration. Item Master Data will be the
lowest level of the product.
4.6.2.1 Create an Item Master Data


SAP Business One Impact New Item Master Data
Required Input -
For each item, you enter the data relevant for a module, which uses this data for purchasing, sales, production, warehouse
management, accounting, and services.
The following fields have been identified as required for Item Master Data:
Master Data
Item No.  Based on the automatic numbering series
Description 
Item Group 
Inventory Item
Sales Item
Purchase Item
Purchasing Data
Purchasing UoM Name
The default value when UoM Group is Manual = 1. Otherwise, quantity is defined
Items per Purchase unit
by the UoM group used.
Packaging UoM Name
Quantity per package
Tax Type Regular Tax; Use Tax; No Tax
Sales Data
Sales UoM Name
Items per Sales unit
Packaging UoM Name
Quantity per package
Inventory Data

Set Inventory Method By  Default= Item Group. Account Defined by Item Group or Item.
UoM Name All Inventory Transactions and reporting are made in this unit.
The UoM and UoM Groups are retrieved from:
 Code, in the setting Units of Measurement, as described in the Design Support Document, UoM sheet.
 Code, in the setting UoM Groups as described in the Design Support Document, UoM Groups sheet.
4.6.3 Transfer Items between Warehouses

Transfer items between warehouses are the process to move inventory from one warehouse to another.
Boston Proper will use Produmex to create these transactions.
4.6.3.1 Request Inventory Transfer

Roles Involved Inventory

SAP Business One Impact New Inventory Transfer Request, In Stock Decrease
Required Input
Inventory Transfer Request will be used to notify Warehouse employees that inventory is required from one Warehouse to
another.
The fields that need to be set for each Transfer Request are:
Document Header
Business Partner 
Name 
Document Series 
Posting Date 
Delivery Date 
Document Date 
From Warehouse 
To Warehouse 
Remarks
Document Lines
Item Code 
From Warehouse 
To Warehouse 
Inventory Transfers Request will not generate any Journal Entries.
The impact in the inventory status, where the initial quantity of 1000 units is considered will be as below:
Quantity from warehouse: 10 1.000 10 990

Quantity to warehouse: 10 10 10

4.6.3.2 Transfer Inventory
SAP Business One Impact New Inventory Transfer, Closed Inventory Transfer Request, In Stock Decrease From
Required Input Inventory Transfer Request
Once the Transfer has arrived at the recipient warehouse, an Inventory Transfer will be created based on the Inventory
Transfer Request, for the amount received.
The fields that need to be set for each Inventory Transfer are the same as the task above.
The actual journal entry for an Inventory Transfer is:
Quantity from warehouse: 10 990 990

Quantity to warehouse: 10 10 10
4.6.4 Apply Inventory Decrease Adjustment

Items can be removed from a warehouse for multiple reasons such as requiring samples, or identifying damaged, expired or
missing inventory.
All adjustments will happen in Produmex addon and will create SAP B1 documents automatically.

4.6.4.1 Create a Goods Issue
SAP Business One Impact New Goods Issue, GL accounts updated, In Stock Decrease
Required Input
A goods issue reduces the inventory level in a situation that is not a direct result of a sales document entry and provides the
documentation to allow the exit of physically available inventory from the warehouse. The value of the inventory will be based
on the valuation method used in the item master data.
The fields that need to be set for each Goods Issue are:
Document Header
Document Series 
Posting Date 
Document Date 
Remarks
Document Lines
Item Code 
Warehouse 
GL Account 
The actual journal will be for a Goods Issue is:

Inventory Offset - Decr Acct 50
 Inventory Offset - Decr Acct, from the setting Inventory Offset - Decr Acct in the Item Group GL Account
determination, as described in Design Support Document, Item Group sheet.
4.6.5 Apply Inventory Increase Adjustment

Applying an inventory increase adjustment can be done if you discover during an inventory count that part of the stored
quantity has not been taken into consideration.
All adjustments will happen in Produmex addon and will create SAP B1 documents automatically.
4.6.5.1 Create a Goods Receipt

SAP Business One Impact New Goods Receipt, GL accounts updated, In Stock Increase
Required Input
Creating a Goods Receipt increases the inventory level in a situation that is not the direct result of adding a purchasing
document. The value will be based on the costing price assigned during the Goods Receipt and the valuation method used
in the item master data.

The fields that need to be set for each Goods Receipt are:
Document Header
Document Series 
Posting Date 
Document Date 
Price List
Remarks
Document Lines
Item Code 
Unit Price 
Total 
Warehouse 
GL Account 
The actual journal will be for a Goods Receipt is:
Inventory Offset - Incr Acct 50
 Inventory Offset - Incr Acct, from the setting Inventory Offset - Incr Acct in the Item Group GL Account
The impact in the inventory status, where an initial quantity of 1000 units is considered will be as below:

4.6.6 Count Inventory

Counting Inventory is a process that can be generated as many times as required and should be performed at least for year-
end. This process will apply any inventory adjustments from variances between the physical quantity and the system quantity.
All adjustments will happen in Produmex addon Section 8.5.5 Cycle Count and will create SAP B1 documents automatically.

4.6.6.1 Create an Inventory Count
SAP Business One Impact New Inventory Count
Required Input
Creating ann Inventory count allows making a selective list of items that will be counted in the warehouse and calculating
the system quantities at a specific point in time.
The fields that need to be set for each Inventory Counting are:
Document Header
Series 
Count Date 
Time
Count Type 
Inventory Counter 
Remarks
Document Lines
Item Code 
Warehouse 
Counted 
Counted Qty 
4.6.6.2 Create Inventory Posting

SAP Business One Impact New Inventory Posting, GL accounts updated, In Stock Increase/Decrease
Required Input Inventory Count
After the Inventory count has been updated, the final quantities can be adjusted in the system to match physical Inventory
with the system quantities.

The fields that need to be set for each Inventory Posting are:
Document Header
Series 
Posting Date
Count Date 
Time
Price Source 
Remarks
Document Lines
Item Code 
Warehouse  In units
Counted 
Counted Qty 
The actual journal for an Inventory Posting will reflect both the cases of inventory increase and inventory decrease.
Inventory Offset - Incr Acct 50
Inventory Offset - Decr Acct 100
 Inventory Offset - Incr Acct, from the setting Inventory Offset - Incr Acct in the Item Group GL Account determination,
as described in Design Support Document, Item Group sheet.
 Inventory Offset - Decr Acct, from the setting Inventory Offset - Incr Acct in the Item Group GL Account

4.6.7 Manage a Pricing Scheme
Sap Business One pricing scheme provides flexibility and different tools to set up pricing, such as price lists, period and
volume discounts, discount group and special prices for business partners.
Boston Proper will use Price List feature to set up the “Advertise Price”, and based on this price they will also use “Period and
Volume Discounts” to create promotions and liquidations on different periods.
A UDF on the “Period and Volume Discounts” window will be created to indicate the status and the prices will be updated
using Data Transfer Workbench tool.
The Original Price (MSRP) of each SKU will be stored at item level in a UDF.
4.6.7.1 Create a Price List

SAP Business One Impact New Price List
Required Input -
Price List is defined for companies that require a price for items and are used for all transactions if needed.
The fields that need to be set for each Price List are:
Price List
Price List Name 
Default Base Price List 
Default factor
Primary Currency
Price List

Base Price List 
Factor 
Price
4.6.7.2 Set Special Prices

SAP Business One Impact New Special prices for business partners
Required Input -
Special prices can be defined for business partners to manage special price deals. Pricing for a different unit of measurement
is also supported.
Boston Proper will not use Special Prices.
The fields that need to be set for each Price List are:
Special Prices for business partners
BP Code 
BP Name 
Price List 
Base Price List 
Item No 
Item Description
Price After Discount
Special prices defined for a business partner override all other prices except blanket agreements.

4.7 Financial Management and Accounting
The Financials module or General Ledger stores the information received from all modules and produces financial and
management reports. It also handles the processing of journal entries which can be recurring, reversing or a template for
General Ledger or Business Partners accounts.
Journal entries can be processed and updated in the system instantly or stored for inspection and updated at a later stage.
It is possible to post journal entries in SAP Business One to G/L (nominal) posting codes, as well as bank accounts and
Business Partner accounts. Transactions are reflected in the general ledger tables as they are added to the different tables
from the other modules. There is no time delay or further manual update required.
SAP Business One will automatically suggest the System Date as the Posting Date.
4.7.1 Maintain the Chart of Accounts

The structure of General Ledger is maintained in the Chart of Accounts, with accounts created in different categories and
levels. There is an up to ten levels hierarchy in the Chart of Accounts for the United States localization, allowing for reports at
any level.
Some points to be considered;
 Two types of accounts can be created:

 Title Accounts which are used for reporting purposes only (grouping accounts) and,
 Active Accounts to which transactions are posted.
 When creating a new company, a “Segmented” or “Non-Segmented” chart of account must be specified. It is not
possible to change this option once the chart of account is created.
 Some GL Accounts can be made confidential, restricting access to them to allowed users only. There is only one
level of confidentiality. Any user can be allowed to view all accounts or non-confidential accounts only.
 GL Accounts can be specified as ‘Sales,’ ‘Expenditure’ and ‘Other.’ Any account, including a Balance Sheet account,
can be flagged as ‘Sales.’
The related processes are described below.

4.7.1.1 Create a tittle Account
SAP Business One Impact New GL Account
Required Input -
Title Accounts are used for reporting purposes only (grouping accounts)
The following fields have been identified as required for GL Account:
Master Data
G/L Account  Code of the GL Account
GL Account Name 
Description 
Account type 
4.7.1.2 Create an active Account

SAP Business One Impact New GL Account
Required Input -
Transactions are posted against Active Accounts . A GL Account cannot be changed once transactions have been attached
to it, although it can be made inactive.
The following fields have been identified as required for GL Account:
Master Data
G/L Account  Code of the GL Account
GL Account Name 
Description 
Currency 
Account type 
Distribution Rules

4.7.2 Create a Manual Journal Entry Posting
Journal Entries will be used to process entries such as Prepayments, manual re-assignment of expenses and Payroll Journals.
All those types of entries can be posted manually, imported using the DTW (Data Transfer Workbench) or through copy-
pasting from an excel sheet.
For each posting, reference fields can be populated, as supporting description to any journal entry when this is seen at a
General Ledger Report or a Journal. The source of those values, per document, are as described in the setting Reference Field
Links, as described in Design Support Document, Reference Field Links sheet.
4.7.3 Maintain a Transaction Template

Transaction templates can be called in a journal entry to populate the journal with predefined accounts, distribution
percentages, and other information. If a value is entered in a line of the journal entry for which the template is used, all other
lines are populated as a percentage of the value entered.
4.7.3.1 Create a transaction template

SAP Business One Impact New transaction template
Required Input -
4.7.4 Recurring Postings

Recurring journals are used for entries that are replicated on a regular basis. Entries set for specific days will prompt the user
for processing on the due day. Some entries can be flagged as templates which can be used on an ad-hoc basis.
It is important to remember that UDF’s are not available in recurring postings.

4.7.4.1 Create a recurring posting
SAP Business One Impact New Recurring Posting
Required Input -
The creation of a recurring posting will only provide a reminder to post the scheduled transaction.
4.7.4.2 Execute a recurring posting

SAP Business One Impact New journal entry; GL accounts updated
Required Input Recurring Posting
The execution of a recurring posting will post the scheduled transaction in the general ledger and affect the accounts
balances.
4.7.5 Define Cost Centers Analysis and Project Accounting
A Cost Center is a company unit that performs a business function such as trading specific products or providing a specific
service. The cost centers represent the respective branch or department and are used to consolidate the expenses and
revenues resulting from the ongoing activity of the organizational unit.
Boston Proper will use one dimension “Departments” on their accounting.

4.7.5.1 Define a Dimension
SAP Business One Impact New Dimension
Required Input -
A dimension defines the type of cost/profit center. Jacob Ash will be able to activate to use up to five dimensions. A dimension
will need to be activated before a profit / cost center is created. There are two fields available for each dimension, listed in the
table below
Active  Yes / No
Name  Field to set the name used for that dimension throughout the system
An activated dimension cannot be de-activated if it has cost centers linked to it.
4.7.5.2 Create a Cost Center

SAP Business One Impact New Cost Center
Required Input -
The following fields have been identified as required for Cost Center:
Master Data

Cost Center 
Name 
Dimension 
Effective From 
With the creation of a Cost Center, the system automatically creates a distribution rule. Those distribution rules cannot be
changed.
The default values of the distribution rule are as follows:
 Values in the Code and Description fields are the same as they appear in the Cost Center and Name fields,
respectively, of the corresponding cost center.
 The dimension and active period are the same as those of the relevant cost center.
 The Active and Direct Allocation checkboxes are automatically selected.
 The value of the corresponding cost center is 100, for a total amount of 100.
SAP Business One provides the following three kinds of distribution rules:
 Distribution rules that SAP Business One creates when a Cost Center is created.
This kind of distribution rule has a one-to-one relationship with the corresponding Cost Centers.
 Distribution rules that are created once and are, then, re-used in multiple occasions.
This kind of distribution rule is the most common one. You create it to allocate direct and indirect expenses and
revenues to one or more cost centers.
 Distribution rules are created ad-hoc, at the time of posting an individual transaction.
This kind of distribution rule is defined for transactions and does not affect the distribution rule master data.
The exact Cost Centers and dimensions that will be used are described in the setting CC Code, as described in Design Support
Document, Cost Center Structure sheet.
4.7.5.3 Reporting Based on Cost Centers

Assigning Cost Centers (and projects) when making an entry adds several reporting capabilities. The financial reporting is
enhanced as below:
 Use Cost Center as a filter when running the reports of Trial Balance, General Ledger, and Profit and Loss. One or
more cost centers can be used, however with a filter type from-to (meaning that we cannot select distinct cost
centers). It should be mentioned that even when more than one cost centers are selected, the report does not show
a break-up of the figures per cost center but the sum for all the cost centers selected. Also, Sort/Grouping Code
cannot be used as a filter for those reports
 Trial balance, with total amount for a period, per cost center. This report can also be exported per Sort/Grouping
code.
Reporting with further criteria can be done, or capabilities can be developed using available BI tools

4.7.5.4 Project Accounting
A project is an effort to a specific starting and ending date. Under this effort, the organization wants to collect expenses and,
possibly, income and report based on that.
This can be done using the Project element at SAP Business One. Each document or journal entry can be linked to a specific
project, independent of the GL account used or any other parameters of the document. Project-based reports are available
in the system as well as standard financial reports which can be produced only for a specific project or a range of projects
(e.g., Profit and Loss).
Finance team will create the projects manually in SAP to make reference to the catalogues, them will be used on the
Purchasing transactions for reporting purposes.
The list of projects from which the system will be initiated as described in the Code setting, in the Design Support Document,
Projects Sheet.
Project
Code Name Active From Active To
4.7.6 Manage Expenses
4.7.6.1 AP Invoice Posting

Roles Involved Financial User
SAP Business One Impact Updated GL Accounts
Required Input -
The posting of an employee-related expense is a single step process, with an AP Invoice document posted directly into the
system.
The fields that need to be set in the header of each AP Invoice are:
Document Header
Vendor Code 
Vendor Name 

Posting Date 
Delivery Date  Due Date of Invoice (based on selected payment terms)
Document Date 
Payment Terms  Based on the selected vendor
Vendor Reference Vendor Invoice Number

Number
Document Lines
Item Code 
Unit Price 
It is possible that the whole TAX will be posted in one line at the end. This can take place by setting all items as 0% TAX and
adding an extra, Tax-Only, line at the end of the document.
A user-defined field will be available on the lines of the document to post the mileage if required
Effect in GL Accounts. Accounting-wise, the Accounts Payable, Expense and TAX accounts will be updated. For example, an
AP Invoice with a value of 800 USD and 8% Tax, will be reflected as below:

Tax Account 8
Expense Account 100
 Expense account, selected manually at the AP Invoice

 TAX account, from the account linked to the Tax Code used in the document, as described in the Design Support
Document, Tax codes sheet.
4.7.7 Financial Budget

A budget scenario will be kept in SAP Business One for each combination of Distribution Channel and Cost Center dimension.
The budget will be kept per GL account, and the currency will be USD.

The figures of the budgets can be uploaded using Data Transfer Workbench.
An annual amount will be set for each GL Account which then can be split per month either using a predefined rule or in a
custom way.
4.7.8 Check Management

Incoming and Outgoing checks will not be posted into SAP Business One. They will be managed out of the system.
4.7.9 Bank Reconciliation

It will be possible to import the bank statement at SAP Business One and, then, produce payments received according to
the data in it. For the payments received to take place, the customer should have put his account as a reference for the
payment. All payments will be posted as payments received on the account as invoice details are not provided by the
customers at that time. The reconciliation of the payment with the invoices will take place later by the financial department.
4.7.10 Accruals and Prepayments

Accruals and prepayments are posted as regular Journal Entries in the system. However, using the Recurring Postings
system, a financial user can schedule a journal entry, in a pre-defined schedule, until the time it is required for that pre-
payment or accrual.
Recurring postings can be included in the Cash Flow report of the system to enhance the Cash Flow reporting.
4.7.11 Tax Management
The Tax Codes which will be used are described in the Design Support Document, Tax Codes sheet.
Boston Proper will use Avalara addon to calculate and post the taxes on the marketing documents, standard SAP tax fields
will be setup as Exempt.
Other Tax Notes
 All Tax codes require a valid G/L code for posting, even when the percentage assigned is zero, as the system will
write a zero-value transaction to the account when the code is used.
 The journal entry settings will be set to ‘Automatic TAX’ ticked to prevent entries without a Tax code being posted
directly to the Tax control account
 The system allows for a reconciliation of transactions once processed within the Tax report.
 Where applicable within the localization the option ‘Extended Tax reporting’ within the company settings will be
activated and the frequency set to ‘Quarterly.’
When setting up new Sales taxes the following settings and fields are required.
4.7.11.1 Sales Tax Jurisdiction Types

Sales Tax Jurisdiction Types - Setup

Type Name 
4.7.11.2 Sales Tax Jurisdictions

The following setting must be configured for each Jurisdiction Type
Jurisdiction Rates -Setup
Code 
Name 
Effective From 
Rate 
Sales Tax Account 
4.7.11.3 1 Sales Tax Codes

The following setting must be configured for each Jurisdiction Type
Sales Tax Codes -Header
Code 
Name 
Freight Enable if the tax code is applicable to freight codes
Tax Rate Based on the sum of jurisdiction codes at line level.
Inactive
Sales Tax Codes - Lines
Type 
Code  Valid values based on jurisdiction type
Name Based on code from jurisdiction rates

Rate Based on code from jurisdiction rates
Sales Tax Account Based on code from jurisdiction rates
4.7.11.4 Tax Code Determination

The following setup is optional and can be used to simplify the recommended Tax Code to use. If any of the conditions below
are met, the default tax code from the Warehouse Code or Business Partner Master data will be overwritten.
Tax Code Determination - Setup
Document Type  Item; Service; Item & Service
Business Area  Sales; Purchase; Sales & Purchase
Condition 1  VAT Number; Ship-To Address; Ship-To Street / PO Box; Ship-To City; Ship-To
Postcode; Ship-ToCounty; Ship-To State; Ship-ToCountry; Ship-To, Item, Item
Group, Business Partner, Customer Group, Supplier Group, Warehouse, GL
Account, Tax Status, Freight, UDF
Value 1  Valid values based on Condition 1
Condition 2 Optional. VAT Number; Ship-To Address; Ship-To Street / PO Box; Ship-To City;
Ship-To Postcode; Ship-ToCounty; Ship-To State; Ship-ToCountry; Ship-To, Item,
Item Group, Business Partner, Customer Group, Supplier Group, Warehouse, GL
Value 2 Valid values based on Condition 2
Condition 3 VAT Number; Ship-To Address; Ship-To Street / PO Box; Ship-To City; Ship-To
Postcode; Ship-ToCounty; Ship-To State; Ship-ToCountry; Ship-To, Item, Item
Group, Business Partner, Customer Group, Supplier Group, Warehouse, GL
Value 3 Valid values based on Condition 3
Description Recommended. Can be used to describe Determination
Line Tax Code  Tax Code to be used if conditions are met.
4.7.12 Tax Reporting – Tax Return

Extended Tax Determination mechanism will be used. At the end of each period (month), a report is produced with the
transactions to be included in the Tax report for the specific period. The user confirms the document to be included in that
report. At the end of the process, a Journal Voucher is created for the Tax Settlement, which the user can then find and post
in the ledgers.

4.7.13 Financial Reporting
A selection filter is available in SAP Business One to produce Profit & Loss, and Trial Balance reports by Profit/Cost Center or
Projects. SAP Business One can produce Trial Balances, Profit & Loss reports, and Balance Sheet.
Note: it is essential to use the ‘posting date’ to produce all financial reports to ensure the inclusion of all relevant transactions
in the report, regardless of the original document date. The closing of the period following the production of the month end
reports then ensures that the reports submitted for a specific period are consistent historically and are not accidentally
modified later.
 The standard reports offered by SAP Business One include:

 Account listings (account transaction details for the selected period)
 Journal listings (details of journals posted as requested)
 Trial balance
 General Ledger
 Balance Sheet Report
 Profit and Loss Report
 Period comparing for Trial Balance, Profit and Loss, and Balance Sheet

4.8 Fixed Assets Management
4.8.1 Create and Capitalize a Fixed Asset

A fixed asset requisition starts with the creation of a Fixed Asset Master Data, and through an approved Purchase Order it
ends with the posting of an AP Invoice.
4.8.1.1 Create Fixed Asset

Roles Involved Financial Department

SAP Business One Impact New Fixed Asset
Required Input -
Before a requisition of a Fixed Asset is initiated, a Fixed Asset master data form is created. This holds all the data that defines
the behavior of the asset later; for example, the depreciation values and journals.
The asset is created as an item. We will use that Item Master Data in every relevant transaction. The information required is:
Fixed Assets
Item Code 
Description 
Asset Class  From a list. Based on that GL Accounts and Depreciation Type are inherited
Useful Life  Default based on Asset Class. Can be modified
Depreciation Type  Default based on Asset Class. Can be modified
4.8.1.2 Create a Purchase Order

Roles Involved Any User
SAP Business One Impact New Purchase Order
Required Input Fixed Asset
The Purchase Order is the first in the line of documents in the requisition process. It can be posted by any system user,
describing the details of the future purchase, which then they can be reviewed by any other person in the company. The
fields for a Purchase Order are:
Document Header
Vendor Code 
Vendor Name 
Posting Date 
Delivery Date  Due Date of Invoice (based on selected payment terms)
Document Date 

Payment Terms  Set automatically based on the selected vendor
Vendor Reference Number Vendor Order Number
Document Lines
Item Code  Fixed Asset Code
Total Value  Net Value of the Fixed Asset
TAX Code  TAX Code
There is no effect in the accounting at this stage. There is, also, no effect at the Inventory figures as there is no Inventory
management for a fixed asset.
4.8.1.3 Create an AP Invoice Posting for a fixed asset

Roles Involved Financial User
SAP Business One Impact AP Invoice Posted, Capitalization document posted, Fixed Asset values updated, GL
accounts updated
An AP Invoice is created when received by the vendor. In SAP Business One, this is done by copying the relevant Purchase
Order to an AP Invoice, closing it at the same time.
4.8.1.4 Capitalization
For each fixed asset related AP Invoice, a Capitalization document will be created.
Capitalization is the process of recording an acquisition and production cost as a fixed asset (written off as depreciation over
several accounting periods) instead of an expense (charged against earnings in one accounting period). When you acquire
an asset, SAP Business One will automatically capitalize it.
The result will be two journal entries. In the example below, for an AP Invoice with a value of USD 800 and 20% VAT, the
entries will be:

VAT 64
Acquisition Clearing Account 800
Asset Balance Sheet Account 800

Acquisition Clearing Account 800
 Acquisition Clearing account, for the specific Fixed Asset class

 Asset Balance Sheet account, for the specific Fixed Asset class
 VAT account, from the account linked to the VAT Code used in the document, as described in the Design Support
Document, VAT codes sheet.
 Accounts Payables, as the link in the Vendor Master Data, used for that AP Invoice
4.8.2 Ordinary Depreciation

SAP Business One Fixed Assets module supports two different types of Fixed Assets Depreciation:
 Planned Depreciation (Depreciation Run)
Each single asset transaction leads to a change in planned depreciation, but not to a posting to the relevant general ledger
accounts. Only when you execute a depreciation run does the system carry out all depreciations planned up to the specified
date.
 Unplanned Depreciation (Manual Depreciation)
The available manual depreciation types in SAP Business One are:
1. Ordinary Depreciation – Refers to the ordinary manual depreciation.

2. Unplanned Depreciation – Refers to the unplanned depreciation, usually carried out when there is an
unexpected reduction in the value of an asset resulting, for example, from an accident.
3. Special Depreciation – Refers to a special manual depreciation.
4. Appreciation – Refers to the increase in an asset’s book value to offset the asset’s unplanned depreciation.
The effect at the GL Accounts will be as below:
Depreciation (Ordinary)
Ordinary Depreciation 100%

Accumulated Ordinary Depreciation 100%
Depreciation (Unplanned)
Unplanned Depreciation 100%

Accumulated Unplanned Depreciation 100%
Depreciation (Special)

Special Depreciation 100%

Accumulated Special Depreciation 100%
 The Account Determination codes & the GL Accounts that will be applied are described in the Design Support
Document, Fixed Asset Classes sheet.
4.8.3 Retirement
In accounting, retiring a fixed asset means removing it from a corporate balance sheet and operating activities.
In SAP Business One, you can retire an asset in the following ways:
 Retirement through Sale
A fixed asset is sold with a profit or loss. If you want to specify the customer information for the asset sale, you can create an
A/R invoice to retire the asset. Upon the creation of the A/R invoice, a retirement document is generated automatically.
However, if you do not want to specify the customer information, you can directly create a retirement document using the
Sales type.
 Retirement through Scrapping
If a fixed asset leaves the asset portfolio without any profit or loss being made, you can retire the asset by creating a retirement
document with the scrapping type. In this case, the system posts the remaining book value of the asset during retirement
as an expense.
 Complete or Partial Retirement
A retirement can refer to an entire asset (complete retirement) or part of an asset (partial retirement). You can trigger the
partial retirement of an asset by entering the retired acquisition and production costs or the retired quantity. When you enter
the retired acquisition and production costs or quantity, the system determines the percentage that is deducted from the
asset.
When you create a partial retirement for an asset, the retirement reduces the asset’s acquisition and production costs and
thereby affects the planned depreciation. The date on which the partial retirement reduces the asset’s acquisition and
production costs is calculated based on the asset value date in the retirement document and the retirement convention you
specified for the asset’s depreciation type.
When you retire an asset completely, the asset becomes inactive, and you can no longer carry out any transactions with it.
The effect at the GL Accounts will be as below.

Scrapping
NBV Retirement Expense (Gross) APC-Act Dep

Accumulated Ordinary Depreciation Actual Dep
Retirement with Revenue (Net) APC
Sell
Revenue Clearing Account 100%

Revenue Account for Retirement 100%
NBV Retirement Expense (Gross) APC-Act Dep
Accumulated Ordinary Depreciation Actual Dep
Retirement with Revenue (Net) APC
The Account Determination codes & the GL Accounts that will be applied are described in the Design Support Document,
Fixed Asset Classes sheet.
4.8.4 Transfer
In SAP Business One, you can transfer a fixed asset to a different asset class or a different asset master data record. This may
be necessary if you want to do any of the following:
 Assign a different set of G/L accounts to an asset
If you want to change the G/L accounts for a certain asset, transferring the asset offers an alternative to creating a completely
new asset. Once you transfer the asset, the system copies all depreciation data to the target asset. You only need to assign
the new set of G/L accounts to the target asset. After the transfer, the system continues carrying out the asset’s depreciation
and transactions with the new set of G/L accounts.
After you completely transfer an asset to another asset, the system deactivates the source asset and carries out the
depreciation calculation for the target asset with its own depreciation types.
 Create different asset master records for the same asset
If you use a certain type of asset in multiple locations, it may be necessary to maintain different master data records for this
asset. Transferring the asset enables you to create and store different master records for an asset, and you do not need to
create a completely new asset in the system.
 Change the asset class of an asset for which bookings have already been carried out
 Change the asset class when the asset construction has been completed
For an asset under construction, it is often necessary to reflect the asset at the year-end in the asset history sheet. To achieve
this, as well as monitor the construction progress, you may need to create a specific asset class for this asset. After the
construction is completed and the asset is ready to be used, you can move the asset to a designated asset class.

4.8.5 Fixed Assets History Sheet
The main report provided is the Fixed Asset History Sheet. The information printed in that report is:
 Asset Class
 Asset Number
 Asset Description
 Capitalization Date
 Useful Life
 Remaining Life
 Capitalization Value
 Depreciation
 Net Book Value at End Date
 Depreciation at End Date
The figures shown in that report are as calculated at the end of the reporting period.

4.9 1099 Reporting
1099 forms are used for sending the details of outgoing payments paid to vendors within a given calendar year, to the tax
authorities. There are three different legal forms to be used when generating the 1099 report in SAP Business One:
 Miscellaneous
 Interest
 Dividend
1096 form is an annual summary of all payments grouped by type of form (Miscellaneous, Interest, and Dividend)
This report enables you to retrieve the information required for both 1099 and 1096 reports, and print it on the pre-printed
official forms.
Boston_Proper has decided this functionality is not currently required. If needed, Boston_Proper must capture the
appropriate 1099 Forms and boxes within the business partners master data or manually within each AP Invoice in the
accounting tab.
Only paid invoices with the 1099 Form and 1099 Box will be considered for 1099 calculations.
Any additional amounts that must be calculated to increase the 1099 Form can only be captured as 1099 Opening balances
or missing paid invoices.
Through the 1099 Edit area, the amounts to be reported can be reduced. This amount must be less than or equal to the
Payment Amount and it cannot be increased.
SYSTEM DESCRIPTION
5.1 System Modifications
Based on the Business Solution described above, the following deltas were recognized and will be delivered to accomplish
the expected result.
5.1.1 UDF: User Defined Fields

Level of complexity
Low
Related Solution Element

Several user-defined fields are needed to comply with Boston Proper reporting and process requirements.
The definition of the fields can be find in the Design Support Document.
Type
SAP Business One - UDF
Description
User-Defined fields to be set in SAP B1 are part of Boston Proper requirement. These fields are mainly used for analytical and
process flow related management.

5.2 Database Setup
The database will be initiated with the settings listed in Design Support Document.xlsx for the elements marked as
Completed.
5.2.1 Irreversible Settings

The settings below are considered as irreversible as they cannot be changed once activated or before the first transaction
(journal entry or inventory transaction) is executed or before a G/L account or master data is defined.
Company Details
Chart of Accounts 
Template
Local Currency 
System Currency 
Display Credit
Balance with
Negative Sign
Use Segmentation
Accounts
Permit more than one

document type per
Series
Use Continuous Specify whether you use continuous inventory and if so, select the default
Inventory valuation method for a newly added item groups and make the required
settings regarding item costs.
If you use a non-continuous inventory system, leave the “Use Continuous
Inventory” checkbox deselected.
Item Group Valuation This option is active only if ‘Use Continuous Inventory’ is selected
method
Manage Item cost per This option is active only if ‘Use Continuous Inventory’ is selected
Warehouse
Use Purchase This option is active only if ‘Use Continuous Inventory’ is selected
Accounts Posting
System
Enable Separate Net When marketing documents exist, enabling separate net and gross price
and Gross Price Mode mode functionality is irreversible. After enablement, price on marketing
document will be calculated as pure net or pure gross mode only.
Install Bank
Statement Processing
Enable Intrastat
Enable Fixed Assets
Calculate This option is active only if ‘Fixed Assets’ option is selected

Depreciation By Month\ Day
Enable Multiple Multiple Branches allows you to manage companies by business unit. Inventory
Branches will no longer be managed on a company level, but instead on a warehouse
level, representing each branch.

Mask Credit Card
number
Enable Project
Management
Enable Personal Data

Protection
Management
General Settings
Exchange rate  Direct: Defines that exchange rates are maintained as the local currency price
of one unit of foreign currency.
postings
Indirect: Defines that exchange rates are maintained as the foreign currency
price of one unit of a local currency.
Use Multidimensions
Document Settings
Manage Freight in
Documents
5.3 System Accessibility – Authorizations

Each user is assigned a login code and a password.
 Each user can be allocated ‘Full Access,’ ‘Read Only,’ or ‘No Access’ to functions within the system.
 Alternatively, access can be denied by removing items from the menu.
 A user needs to have been assigned a license to be able to access SAP Business One.
 A license can subsequently be taken away from a user and assigned to another,
 More users than available licenses can, therefore, be created, although users who do not have a license will
not be able to access the system until a license is assigned to them.
 The login user codes can be up to 25 characters.
 The user code, as well as the password, are case sensitive
The password security policy will be set as in the SDD preparation document excel sheet.
Boston Proper will use single sign-on which doesn’t need a password in SAP to login, the authentication will be through
windows user.
5.4 User Environment

5.4.1 Mandatory Fields
As described in the chapters above.
Field Document
Customer Reference SO - Header
Sales Order Type SO - Header
Customer Reference Return Req - Header

REPORTING
There will be no print reports delivered other than the standard ones included in the SAP Business One package.
Two Reports will be created:
 Budget Report
 Vendor On time delivery Report
The details of each report are described in the Boston Proper Report Design Document. – To be defined.
The team of Boston_Proper will develop any new reports.

PRINT LAYOUTS
There will be no print layouts delivered other than the standard ones included in the SAP Business One package, the Check
layout and the Shipping label.

Any amendment to these layouts to fit Boston_Proper needs or any additions of new print layouts will be done by the
Boston_Proper team.

PRODUMEX WAREHOUSE MANAGEMENT SYSTEM
8.1 Warehouse Layout (Organizational Structure)
8.1.1 Warehouses
Boston Proper will create three warehouses in the system:
 Main
 Returns
 Amazon
The Main warehouse will be the only one controlled through Produmex WMS. The layout below represents the warehouse,
its organization and initial areas and zones:
8.1.2 Zones
The initial zones identified were:
 Return To Stock (RTS)

 Accessories
 Swimwear
 Shoes
 Travel
 Basic
 Quick Pick

8.1.3 Bins
Bin Locations are already designed and labeled and ready for import and further configuration in Produmex WMS.
The warehouse is divided into two “buildings” (a virtual designation) – AA and BB. Each “building” has a set of rows, each of
which have bays, which have slots defined within them. A picture of the racks and bin location is shown below.
The Bin Structure is as follows:
Sample Location - BB 11 01 C F
 BB - “Building” or side of the warehouse

 11 - Row
 01 - Bay
 C - Level (Only 4 of the 6 Levels are used – A through D)
 F - Slot (Six slots available per bay shelf – A through F)
8.1.4 Moveable Locations

Boston Proper will make extensive use of Moveable Locations in the following areas.
 Picking – Sales Order Picking and Fulfillment

 Returns – Totes are used extensively to sort, store and move returned goods through the process
 Swim – Temporary location to hold Swim Wear that is going through the outside operation of Dry Cleaning

8.1.5 SSCC / License Plates
Boston Proper labels each case that enters the warehouse with SSCC/License Plate codes that are pre-printed prior to the
receipt. There is currently a numbering scheme in use that will likely need to be replaced by the Produmex generated SSCC’s.
Boston Proper License Plate
Supplier Based Case ASN Label
8.2 Purchase Order Receiving

Roles Involved Receiving Personnel
Environment Produmex WMS
SAP Business One Impact New Goods Receipt PO
Required Input ASN and/or Purchase Order
Goods are usually shipped to Boston Proper by its supplier via freight and received into the Kingdom City Warehouse using
the Warehouse Management system. Either in advance of a shipment arriving or immediately after its arrival the Receiving
Team will print License Plate (LP) stickers for each case to be received. This provide an immediate location for the goods
received so that they can be tracked from initial receipt to put away in the racks.
The Purchase Order Receipt process is conducted in one of two ways:
 ASN Based – the top tier suppliers provide ASN’s to Boston Proper and label each carton with SSCC label that is
scanned to receive the product into the system. The Boston Proper LP label is placed on the box and then the SSCC
label is scanned to receive the product onto the LP. This doesn’t provide any number of carton accountability and
requires that the user count the cases that have been received against the packing slip in order to ensure complete
receipt of the goods.
 PO Based – the suppliers who do no supply ASN’s ship against PO’s that have been created, approved and routinely
updated by Boston Proper’s materials team. In this case the receipt is done manually by selecting the purchase
order, the item and recording the quantity received by case onto the Boston Proper LP label. The cases are counted
and totaled against what is listed on the Packing List from the shipment.
Once the shipment has been completely received into the system, it remains in a “Restricted” status it is staged in the Quality
Assurance (QA) area.
8.3 Quality Assurance/Re-box

Roles Involved Quality Inspectors

SAP Business One Impact Quantity Available to Pick/Ship
Required Input Produmex WMS Receipt
Stock is staged in the Quality Assurance area where it is examined, and multiple quality inspections are performed.
 If the supplier has shipped in a non-compliant sized box, then the product will be re-boxed into a standard sized
box. This is done by scanning out of its receiving LP and onto the LP placed on the standard sized box.
 Each box/case is opened and at least one article is examined for multiple attributes – color, size, style, cleanliness,
etc.
 If there is a defect identified, the case is hand labeled with a tag and put to the side for problem resolution. The
product remains restricted until the problem is resolved (i.e., the goods are repackaged, re-tagged, dry cleaned or
returned).
Once the shipment has been cleared through Quality Assurance, it is the staged for put-away in the racks. At this point the
stock is still located on LP’s and can be identified as in stock, but not yet pickable.
8.4 Put Away Process

Roles Involved Material Handlers
SAP Business One Impact Quality Available to Pick/Ship
Required Input SSCC with Quality Status = Released
Stock that has been approved for sale through the Quality Assurance Process, either from the Receiving Process or through
the Returns process, it is ready to be located in the racks.
Currently the locating (or slotting) of goods is a manual, non-directed activity.
 Smaller quantities of stock are slotted in the Ready to Pick area, which is the first row of rack locations where the
stock is placed into smaller, multiple sectioned boxes/cases, identified by the rack location.
 Standard box/case sized products and placed manually by the warehouse operators and organized often by
product type. There are at this point 3 product types that are located in specific rows:
o Accessories
o Shoes
o Swimwear
The put-away process consists of physically moving the product to the desired location and then transferring it from the
Receiving LP to the Rack Location. At that point, the Receiving LP is emptied, and the Rack Location contains the inventory.
The future state of slotting will implement Zones and Zone Types by Product Category, then assigning the Zone Types to the
appropriate products to start the location suggestion process on Put-Aways. There is also a desire for “Affinity Slotting” where
the system could be used to ensure the proper placement of goods in relationship to each other (e.g., a bathing suit top next
to the appropriate bathing suit bottom, etc.).
8.5 Sales Order – Fulfillment

Roles Involved Shipping Supervisor, Pickers, Pullers

SAP Business One Impact Quantity Available to Pick/Ship
Required Input SAP Sales Orders, Produmex WMS Pick Lists
8.5.1 Sales Order Preparation

The proposed design will result in sales orders flowing from Salesforce into SAP for only those lines where there is stock
available and can be filled. The desired approach will be paperless picking (although this needs to be confirmed by Boston
Proper that the Pick/Packing list can be removed from the shipment).
There will be four types of Pick Waves that will be generated by the Picking Robot. The Picking Robot will generate Pick
List documents that are grouped automatically and assigned to a Pick Wave.
 Express Ship Single Line – in this grouping, multiple single line orders that have a Ship Via related to Overnight or 2
Day Express will be selected into a single wave and picked into a single box or tote and then staged at the packaging
line. The carton or tote will be a re-usable Moveable Location defined in the Organizational Structure.
 Express Ship Multiple Line – in this grouping, multi-line orders that have a Ship Via related to Overnight or 2 Days
Express will be selected into a single wave. The number of orders will need to be determined to be defined for this
grouping, since they will be limited to the number of cartons/totes that can fit on a cart. The cartons or tote will be
a re-usable Moveable Location defined in the Organizational Structure.
 Single Line Order – in this grouping, multiple single line orders that are Non-Express Shipping related will be select
into a single wave and picked into a single box or tote and then staged at the packing line.
 Multiple Line Orders – in this grouping in this grouping, multi-line orders that are Non-Express Shipping related will
be selected into a single wave. The number of orders will need to be determined to be defined for this grouping,
since they will be limited to the number of cartons/totes that can fit on a cart.
8.5.2 Sales Order Picking

The proposed design is for a paperless Sales Order Picking Process. The proposed process is as follows:
 The warehouse supervisor will select the Wave to be “released” to the picker for processing. As part of this process,
the warehouse supervisor can “assign” the wave to a picker by using the Bulk Change and using the Picklist Type
to note the picker that will process the picks (see the example below). As part of this release, a Wave Label will be
printed, showing the assigned picker’s name and wave number in both human and barcode format and given to
the picker to initiate the Picking process. The label should be on standard 4 x 6 label stock and can be attached to
a clipboard on the picking cart.
 There will be two methods for picking orders
o Single Line Order Wave – the user will utilize the “Picking” option on the WMS hand-held and be routed
through the warehouse (using the Pick Sequence defined on the bin locations) and will be prompted to
scan the stock for each order from the location for each order individually into a single carton or tote. Once
s/he has picked all the orders in the wave, they will bring it to the proper staging area for packing and
shipping.
o Multiple Line Order Wave – the user will use the “Multi-Picking” option on the WMS hand-held.

 The first step in the Multi-Picking process is to assign each pick list in the wave to a Moveable
Location (carton or tote defined in the Organization Structure) that has a barcode label on it that
is scanned to associate that Moveable Location to that Pick List (which equals the Sales Order).
 The picker is then routed through the warehouse and will be prompted to scan the stock from
the bin location to the proper carton or tote for each order in the group. If there are multiple
orders requiring stock from the same bin location, then the quantity will be scanned for each
order individually into the carton or tote assigned to that Pick List line.
 Once s/he has picked all the orders in the wave, they will bring it to the proper staging area for
packing and shipping.
8.5.3 Packing and Shipping

Roles Involved Packing Personnel
SAP Business One Impact Delivery Note or A/R Invoice
Required Input Completed Pick Lists
Once the orders have been completely picked they are staged in the Packing/Shipping Area. Regardless of the process that
the orders have gone through for Pulling, the process for Packing and Shipping will be the same.
Each packing station is equipped with a computer and screen, a scale and a scanner. The packing operator collects the
box/tote or cart and begins the process of packing the goods (into either a polybag or carton), placing it on the scale,
retrieving the Sales Order on the screen, selecting the package type, retrieving the weight from the scale and manifesting
the shipment, printing the shipping label, attaching it to the package and sending the package down the conveyor.
The proposed design will be similar in nature, implementing a touch screen environment and maintain a single user
interface for the workstation, scale and manifesting (shipping) software. The process will be as follows:
 The operator will retrieve either the carton/tote or the cart full of cartons/totes.
 The operator will scan barcode on the carton/tote to load the orders from the Wave
 If there are multiple orders, the operator will select the order to process (they should be listed in descending order
from the pick sequence)
 The operator will scan the item(s) to confirm the right items were picked and place them in the shipping container
(bag or carton) and place it on the scale.
 The operator will select the correct shipping container (polybag or carton)
 The operator will press the button to retrieve the weight from the scale
 The operator will press the button to manifest the package in the shipping software
 The Shipping Label will be printed using Process Weaver addon.
 The operator will apply the Label and send the package down the conveyor
The Shipping Types will be flagged to Auto Invoice since there is no Shipping Operation in the Boston Proper warehousing
operation.

8.5.4 Returns Processing
Roles Involved Customer Service Representatives, Warehouse Returns Personnel
Environment Sales Force, SAP Business One, Produmex WMS
SAP Business One Impact Credit Return or Credit Memo
Required Input Open SAP Return Requests
There are three types of returns processes that occur at the Boston Proper Warehouse.
 Pre-Approved Returns (based on an RMA)

 Pre-Approved Returns for Exchange (based on an RMA)
 Non-Pre-Approved Returns
The Pre-Approved scenarios will originate from Customer Service through Sales Force and create an RMA in SAP Business
One which will then be available to receive the goods against in Produmex WMS. The Non-Pre-Approved scenario will result
in the Warehouse Creating the return in Produmex WMS which will in turn create a Customer Return in SAP. In all cases,
the Returns documents and process will occur in the Returns Warehouse, which will be a non-nettable, non-pickable
warehouse.
8.5.4.1 Pre-Approved Return

The warehouse returns operator go through the returns that have been identified as using the Boston Proper supplied
Return Label on them.
 The returns operator will identify the customer name on the label and open the package.
 The returns operator will use the Sales Return WMS Function on the WMS Client and search for and select the
customer.
 The returns operator will use the “Select a Return Request” option on the WMS Client and then scan the RMA on
the label
 The returns operator will confirm the item to be returned by scanning it on the WMS Client.
 The returns operator will enter the quantity of the item and press enter or click next
 The operator will then scan the Moveable Location (tote) that the return is to be placed in for further processing.

The item is received into the Moveable Location with a “Quarantined” status … placing the inventory in a restricted state.
Once the tote is full, the Moveable Location will be transferred in the system to an area where it will be dispositioned through
the Returns Disposition Process. This process will create an Accounts Receivable Credit Memo.
When the scenario requires an exchange, a separate sales order will be entered for the replacement item to be picked,
packed and shipped. The Credit Memo and the replacement Invoice will need to be reconciled.
8.5.4.2 Non-Pre-Approved Return

When the warehouse returns operator go through the returns and finds those that don’t use a Boston Proper supplied
Returns Label, they will:
 The returns operator will attempt to identify the customer name and open the package.
 The returns operator will use the Sales Return WMS Function on the WMS Client and search for and select the
customer.
 The returns operator will use the “No Delivery” option on the WMS Client
 If the original label is on the packaging, the returns operator will confirm the item to be returned by scanning it on
the WMS Client and also view a Picture of the article through an SAP Client screen.
 If the original label is not on the packaging, the returns operator will research the article through the SAP Client
screen to retrieve the Item Number and use that to enter into the WMS Client to retrieve the item in the WMS
system.
 The returns operator will enter the quantity of the item and press enter or click next.
 The operator will then scan the Moveable Location (tote) that the return is to be placed in for further processing.
The item is received into the Moveable Location with a “Quarantined” status … placing the inventory in a restricted state.
Once the tote is full, the Moveable Location will be transferred in the system to an area where it will be dispositioned through
the Returns Disposition Process. This process will create a Return in SAP Business One.
8.5.4.3 Return Disposition

Once the returns have been received into the system and located in a Moveable Location/Tote, it will be brought to a
workstation where it is inspected and dispositioned; either refolded and repackaged and tagged for return to stock, identified
as needing repair or requiring another outside operation (i.e., dry cleaning). This physical operation will be mirrored in the
system by utilizing the Inventory Report Screen to disposition the stock.

Through this screen the operator will be able to:
 Change the quality status to Passed or SUQ (Ship Under Quarantine)

 Print Labels to relabel the product
 Move the goods from the Returns Tote to a Quick Pick Location in the Main Warehouse.
* Note – the stock remains in a restricted, non-pickable status until such time as it is placed in either the Quick Pick Location
or a Return to Stock location.
8.5.4.4 Vendor Return

Roles Involved Purchasing Management, Warehouse Supervisor, Returns Personnel
SAP Business One Impact SAP Supplier Return
Required Input Approved Returns Report from Purchasing/Materials
Products that fail the Quality Process or for other reasons are deemed to be returned to the Supplier or Vendor. The process
for identifying, tagging and categorizing the returns will be managed manually outside the system. However, once the
stock has been approved for return, the warehouse operator will initiate the return using the Produmex WMS Client
application – Purchase Return – No Delivery. This will result in a Goods Return in SAP Business One.

8.5.5 Cycle Count
The Cycle Count functionality in Produmex WMS is configured using a combination of parameters set on the Bin Location
Level and in the Cycle Count Extension Parameters section of the Organization Structure.
8.5.5.1 Bin Level Definition

There are settings at the Bin Level that the Cycle Count process will examine when the Locations are selected during the
Stock Count.
 Allow location to be counted during cycle count – this indicates whether or not the bin should ever be counted
 Allow locations to be counted during other operations – this indicates whether the bin should be counted if there
are picks, move orders or other operations active that utilize the bin.
 Location needs to be counted now – this is a selection for when a bin is identified as requiring immediate count
 Count after number of days – this is a parameter utilized during the Location Selection (shown below) as to the
number of days after which a bin should be counted.
 Count after number of operations – this is a parameter utilized during the Location Selection (shown below) as to
when a bin has been visited X number of times, it should be included in a Stock Count.

8.5.5.2 Select Locations to Count
The screen below enables the Warehouse Supervisor to select and create Cycle Counts based on the combination of Bin
Parameters, Cycle Count Extension Parameters and this selection screen.
 Note – the Lock location for user can be used to create specific Cycle Count location or item lists for specific users –
thereby assigning the cycle count to a specific user.

DATA TRANSFER STRATEGY
The information that will be required to be migrated are:
Master Data
 Items
 Business Partners
 Fixed Assets
Opening Balances
 Open AR Invoices, as service documents

 Open AP Invoices, as service documents
 Open Sales orders, as item documents
 Open Purchase orders, as item documents
 GL Accounts Balances, monthly per combination of dimensions
 Inventory Opening Balances per Warehouse
Historical data will not be migrated

PENDING ISSUES
Issue Description Responsible Date to be Comments
completed

SIGN OFF & ACCEPTANCE
Customer – Project Sponsor
Signed on Behalf of Boston_Proper
Name Michael Truong
Date
Signature
Customer – IT Director
Name Cid Gomes
Date
Signature
Customer – Controller – SAP Product Owner
Name Barry Bard
Date
Signature
Customer – Manager of Merchandise Operations
Name Kari Bouchlas
Date
Signature
Customer – DC Supervisor
Name Levi Iman
Date

Signature
Sapphire – Project Manager
Signed on Behalf of Sapphire Systems Inc
Name Donna Jones
Date
Signature
Sapphire – Lead Consultant
Signed on Behalf of Sapphire Systems Inc
Name Deyanira Hurtado
Date
Signature


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Solution Design Document

Implementation of SAP Business One at Boston_Proper

Prepared by Deyanira Hurtado

2.2 External Documents ........................................................................................................................................................................................................................................ 6

2.3 Glossary - Definitions ....................................................................................................................................................................................................................................... 6

2.4 Deployment Platform..................................................................................................................................................................................................................................... 7

2.5 Project Information .......................................................................................................................................................................................................................................... 7

2.5.1 Current System .................................................................................................................................................................................................................................................. 7

2.5.2 Client Information .......................................................................................................................................................................................................................................... 7

2.5.3 Partner Information ...................................................................................................................................................................................................................................... 7

3.1 Deliverable Description ................................................................................................................................................................................................................................. 8

3.1.1 Solution Overview ............................................................................................................................................................................................................................................. 8

3.1.2 Roles ............................................................................................................................................................................................................................................................................ 9

3.2 Localization .............................................................................................................................................................................................................................................................. 9

Business Solution Description.................................................................................................................................................................................................... 10

4.1 Sales ............................................................................................................................................................................................................................................................................... 10

4.1.1 Managing Demand ........................................................................................................................................................................................................................................ 10

4.1.2 Manage Customer Returns .................................................................................................................................................................................................................... 16

4.1.3 Crediting a Customer................................................................................................................................................................................................................................... 21

4.2 Accounts Receivables / Credit Control ............................................................................................................................................................................................. 23

4.2.1 Monitor Accounts Receivables ............................................................................................................................................................................................................. 23

4.2.2 Posting an Incoming Payment .......................................................................................................................................................................................................... 25

4.3 Purchasing ............................................................................................................................................................................................................................................................... 27

4.3.1 Managing a Purchase Order .................................................................................................................................................................................................................. 27

4.3.2 Managing a Vendor Return ................................................................................................................................................................................................................... 33

4.3.3 Receiving an AP Credit Note ................................................................................................................................................................................................................ 38

4.3.4 Allocate Landed Costs................................................................................................................................................................................................................................ 41

4.4 Accounts Payables ............................................................................................................................................................................................................................................ 44

© Copyright Sapphire Systems Inc Page 1 of 108

4.4.2 Posting an Outgoing Payment .......................................................................................................................................................................................................... 45

4.4.3 Generate a Payment Run ....................................................................................................................................................................................................................... 47

4.5 Business Partners Management........................................................................................................................................................................................................... 49

4.5.1 Create a Customer.......................................................................................................................................................................................................................................... 49

4.5.2 Create a Vendor ............................................................................................................................................................................................................................................... 52

4.6 Inventory .................................................................................................................................................................................................................................................................... 53

4.6.1 Define a New Warehouse......................................................................................................................................................................................................................... 53

4.6.2 Create an Item .................................................................................................................................................................................................................................................. 54

4.6.3 Transfer Items between Warehouses ........................................................................................................................................................................................... 56

4.6.4 Apply Inventory Decrease Adjustment ....................................................................................................................................................................................... 58

4.6.5 Apply Inventory Increase Adjustment .......................................................................................................................................................................................... 60

4.6.6 Count Inventory ............................................................................................................................................................................................................................................... 62

4.6.7 Manage a Pricing Scheme ..................................................................................................................................................................................................................... 65

4.7 Financial Management and Accounting ....................................................................................................................................................................................... 67

4.7.1 Maintain the Chart of Accounts .......................................................................................................................................................................................................... 67

4.7.2 Create a Manual Journal Entry Posting....................................................................................................................................................................................... 69

4.7.3 Maintain a Transaction Template ..................................................................................................................................................................................................... 69

4.7.4 Recurring Postings ....................................................................................................................................................................................................................................... 69

4.7.5 Define Cost Centers Analysis and Project Accounting .................................................................................................................................................. 70

4.7.6 Manage Expenses .......................................................................................................................................................................................................................................... 73

4.7.7 Financial Budget............................................................................................................................................................................................................................................. 74

4.7.8 Check Management.................................................................................................................................................................................................................................... 75

4.7.9 Bank Reconciliation ..................................................................................................................................................................................................................................... 75

4.7.10 Accruals and Prepayments.................................................................................................................................................................................................................. 75

4.7.11 Tax Management ........................................................................................................................................................................................................................................... 75

4.7.12 Tax Reporting – Tax Return .................................................................................................................................................................................................................. 77

4.7.13 Financial Reporting..................................................................................................................................................................................................................................... 78

4.8 Fixed Assets Management ......................................................................................................................................................................................................................... 79

4.8.1 Create and Capitalize a Fixed Asset................................................................................................................................................................................................. 79

4.8.2 Ordinary Depreciation ............................................................................................................................................................................................................................... 82

4.8.3 Retirement ........................................................................................................................................................................................................................................................... 83

© Copyright Sapphire Systems Inc Page 2 of 108

4.8.5 Fixed Assets History Sheet...................................................................................................................................................................................................................... 85

4.9 1099 Reporting ...................................................................................................................................................................................................................................................... 86