Table of Contents

............................................................................................................................................................................................................................................................................ 1
Company Details ................................................................................................................................................................................................................................................. 2
General Tab .................................................................................................................................................................................................................................................... 2
Accounting Tab ............................................................................................................................................................................................................................................... 3
Basic Initialization Tab .................................................................................................................................................................................................................................... 4
Chart of Accounts Template: ........................................................................................................................................................................................................................... 5
Company Details
General Tab
In Company details, we have to update all necessary details. For more details please refer screen shot given below. Please follow the path: Administration  System
Initialization Company Details General Tab Local Language
Accounting Tab
After updation of General information, user has to update accounting data. For more details please refer screen shot given below.
Basic Initialization Tab
After completion of accounting Data, user has to update “Basic Initialization”
Chart of Accounts Template:
There are two options in this field

User Defined Chart of Account

Select the chart of accounts that is the valid legal form for your company, or define your own by selecting User Defined

Pre-defined Chart of Account

Pre-defined option will enable you to map system generated Chart of account.
We will recommend to use User defined charts of accounts as per the company’s requirements
Local Currency

Here we have to define local (national) currency for all transactions

System Currency

SAP Business One can manage all transactions in a system currency parallel to the local currency. Select the required system currency from the list.

If defining a system currency that is not identical to the local (national) currency, the system currency can be used as the reporting currency. For example, the corporate
group requires a different reporting currency from the national currency. Also define a daily exchange rate for the system currency. Every document, and all reports and
balance sheets are posted in the database in both currencies.
Display Credit Balance with Negative Sign:

The purpose of this setting is to display credit balances with a negative sign. It is an irreversible setting.

If Setting is enabled then Journal Entries will appear as given below in screen shot
Effect in Chart of Account G/L Balance in Liability Drawer.

Effect in Chart of Account G/L Balance in Assets Drawer.

 If Setting is enabled then Journal Entries will appear as given below in screen shot

Effect in Chart of Account G/L Balance in Liability Drawer.

Effect in Chart of Account G/L Balance in Assets Drawer.

We will recommend you to enable this setting.
Use Segmentation Accounts

Segmentation of Chart of Accounts used company maintaining separate G/L accounts based on Division, Department etc with in single Chart of Account. For example there
are two segments are created in system like MPL and SWM.

Effect in Chart of account with segments MIPL and SWM as an example

We will recommend you to disable this setting. It is an irreversible setting.

Allow Negative Amounts for Reversal Transaction Posting

Selecting this option results in journal entries where the reversal is booked with negative amounts. If you do not select this option, the journal entry of the reversal is
booked using a debit/credit switch

For Example below mentioned Journal entry is in SAP system and now I am creating reversal entry

Reversal Entry for above mentioned Entry:

We will recommend you to disable this setting.

Permit More than One Document Type per Series

Certain country regulations permit document numbering series that contain more than one document type. All of these documents are part of the same numbering series.
Select this option if these regulations are relevant for the company. This setting determines the settings that are displayed in certain Document Numbering windows, and
cannot be changed after it has been selected.
We will recommend you to disable this setting.

Multi-Language Support

This setting enables the Multi-Language Support function in the company. Use this function to translate field names in SAP Business One to foreign languages and print
them in documents you send to foreign business partners.

We will recommend you to enable this setting.

Apply Point of Taxation Rules for Service Taxes

The Indian Central Government formulated the Point of Taxation Rules (PTR) vide Notification No. 18/2011-ST dated Mar. 01, 2011. Amendments were carried
out in these rules vide Notification No. 25/2011-ST dated Mar. 31, 2011.According to Rule 3 in Notification No. 25/2011-ST, the point of taxation for
service taxes shall be as follows:

(a) Date of invoice or payment, whichever is earlier, if the invoice is issued within the prescribed period of 14 days from the date of completion of the provision of service.

(b) Date of completion of the provision of service or payment, if the invoice is not issued within the prescribed period as above." However, currently in SAP Business One
Indian localization, service taxes are handled in the following ways:

Service taxes are posted to journal entries upon invoice creation. Service taxes are counted as payables only if the invoices have been paid. In order to comply with this
legal change, SAP Business One needs to be enhanced.

We will recommend to disable this setting

Use Perpetual Inventory

Under the perpetual inventory system, an entity continually updates its inventory records to account for additions to and subtractions from inventory for such activities as:

1. Received inventory items

2. Goods sold from stock
3. Items moved from one location to another
4. Items picked from inventory for use in the production process
5. Items scrapped
Non – Perpetual Inventory Valuation
Perpetual Inventory Valuation

We will recommend you to enable this setting. It is an irreversible setting.

Item Groups Valuation Method

Specify the default valuation method for newly added item groups. This field is active only if the Use Perpetual Inventory option is selected.
The available valuation methods are:
 Moving Average: Calculates the inventory value by the item cost (see the Inventory Item Master Data Inventory Data tab).
This field is updated dynamically by every inventory receipt posting.
 Standard Price: Calculates the inventory value by a fixed price.
The item's standard price should be set before you start working in your company.
 FIFO: Calculates the inventory value by the FIFO (first in first out) method.
 Each inventory receipt transaction creates a "layer" of quantities linked to costs.
 Each inventory release transaction uses quantities and their corresponding costs from the first open layers.
Manage Item Cost per Warehouse

This field appears only if you have selected the Use Perpetual Inventory option. Select this option for calculating inventory Cost for each individual
warehouse. Deselect this option for calculating inventory Cost for all the warehouses combined.
Use Purchase Accounts Posting System
Purpose of this functionality is to maintain purchase expense entries in P&L. In SAP B1, automatic Cost of goods sold is generated based on material consumption at the
time of sale hence, it is not mandatory to define Purchase accounting system but as per country India version it is necessary to define all item related purchases in expense
head, so for this functionality we have to define Purchase accounts and Purchase offset accounts in expense drawer. The net impact of purchase and purchase offset
account would be zero in P&L and it will also solve the purpose to see Purchase details as on date. It is recommend to use this setting always.

Allow Stock Release without Item Cost

It is an inventory related setting. There is no use of this setting in ESR Database. The purpose of this setting is to permit items to be included in documents such as deliveries
or A/R invoices, even when the item cost has not been determined. For Example: If user creates a Goods Receipt entry without price and now user wants to issue same
material then system will allow user to do that if respective setting is enabled. It is recommended to do not enable this setting.
Serial/Batch Valuation Method
It is an inventory related setting. There is no use of this setting in ESR Database. In the serial/batch valuation method, items are linked to a serial number or a batch:

1. A serial number is a unique identifier for a particular item.

2. A batch is a unique identifier for a group of items. This means that item value is either calculated on a serial number or a batch basis.

In the serial/batch valuation method, each item or group of items of the same type can have a different value depending on their serial/batch association.

House Bank
Steps are given below to fill the default bank details.

Step 1: Select Default Bank and click on drop-down menu and select Define new option

Default House Bank

Step 2: Bank Setup window will appear. Now user has to key Bank setup details like Bank Code and Bank Name and update the screen
Step 3: In search option, user has to select “Search Menus” option and key-in House Bank Accounts option

Step 4: House Bank Account window will appear. Here user has to key-in all necessary details shared by customer. After that click on update and OK button

Step 5: Select Default Bank, Default Account No and Default Branch details in “Basic Initialization”.
Enable Fixed Assets
To understand the logic please refer below mentioned example:
Acquisition and Production Costs: 6000 USD
Useful Life: 60 Months
Depreciation Method: Straight Line

Calculation Method: Acquisition Value / Total Useful Life

 If you calculate the depreciation by month, the system first calculates the monthly quota with the following formula:
6000 USD / 60 = 100 USD
 If you calculate the depreciation by day, the system first calculates the daily quota with the following formula:
6000 USD / (60 / 12 * 365) = 3.29 USD
With the two different quotas, the system then calculates the asset's depreciation for each period.

Enable Multiple Branches

Different branches of a company may have different legal reporting requirements. However, the branches may share some users, business partners, and so on. It is
inconvenient to maintain different databases for different branches, and it may cause data inconsistency.

With the multiple branches feature, you can work across branches on one database, but with only authorized data. The purposes of initializing this feature include the
following:

1. Various master data are catalogued into different branches; meanwhile, some master data can be shared between branches.
2. Different branches have different documents created with their own master data.
3. Different branches share some common data and settings, for example, items, document settings, and so on.
For ESR customer, we are going to create multiple Databases as discussed in our first meeting with customer.

Mask Credit Card Number

Select this checkbox to mask credit card numbers as ************#### that is, only the last four digits of the credit card number are displayed, and when specifying a new
credit card number, you can only enter its last four digits. You cannot deselect this option. In new companies this option is selected by default.

Enable Advanced G/L Account Determination

Select this checkbox to manage the inventory G/L account determination according to a flexible and centralized method. By setting a hierarchy of rules you can assign
inventory G/L accounts by:

1. Item groups
2. Items
3. Warehouses
4. Business partner groups
5. Ship-to countries
6. Ship to states

Various combinations of all the above criteria. In Case of ESR, there is no use of this setting because ESR dealing with services not Items.