© SAP AG <course number> Course Overview - 1

Material number: 50098705

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SAP Business One is a business management solution designed for small and midsize businesses.

SAP Business One gives you instant access to real-time information through one single system. Theapplication is divided into a number of modules, each covering a different business function.

SAP Business One has a user-friendly interface that serves as your central ERP access point, withstandard interfaces to internal and external data sources, handheld computers, and other analysis tools.

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SAP Business One represents a new breed of business software that is specifically designed to meettoday‘s small and mid-size business needs and challenges. It completely removes the needs andproblems associated with having disconnected business processes or systems:

It integrates and streamlines all business functions across sales, marketing, customers, financials andoperations, all in a single system so your business operates like a seamless one

It stores all critical business information in one database so you can instantly access without having toget information from different systems that often don‘t agree with each other

It provides built-in customer relationship management (CRM) tools that are fully integrated to thebackoffice operations to help you better manage sales and customer services

It‘s also a flexible system that can be easily customized and tailor to your own business and industryneeds

Last but not the least, SAP designed and built the product from the ground up, specifically for thesmall and mid-size businesses like yourself so you can leverage the best experiences and practices thatSAP has learned over the past 30 years yet don‘t have to deal with the complexities.

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SAP Business One is based on a two-tier client/server architecture. The server runs a database server asa central data repository (Microsoft SQL Server). Most of the application resides on the client ("fatclient"). This means that processing is carried out locally and is largely independent of serverperformance.

SAP offers a Software Development Kit (SDK) for SAP Business One. You can use this kit to addyour own functions programmed in Visual Basic (VB), C/C++, and Java. The SDK runs either on theserver or on the client depending on its purpose. An integration platform (B1i) provides an interface tointegrate SAP Business One to a larger company’s system landscape.

SAP Business One is shipped with a Service Manager and services for sending e-mails, faxes, andSMS from SAP Business One (mail service) and creating regular database backups (backup service).The Remote Support Platform (RSP) is an automated tool that allows end-to-end support byproactively monitoring the health status and integrity of the databases and sending results to SAPsupport.

SAP Business One provides general functions that cover all business areas, as well as certaininnovative enhancements, such as Customer Relationship Management (CRM), contact management,and user-defined values.

Country versions are constantly being developed to fulfill country-specific requirements.

The user interface has already been translated into most major languages, and users can switchbetween the languages they need.

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Your best source of information regarding SAP Business One is the global Channel Partner portal. Youneed to be an SME partner, customer, or employee of SAP to access the portal. There are also localportals available by country and region.

Ask your instructor for the most current link to the Channel Partner portal. From here you can navigateto different areas which provide information about Solutions, Solution Development, Service &Support, Partnering with SAP, Marketing & Sales, and Education.

Learn more about the SME Portal in the TB1200 SAP Business One – Implementation and Supportcourse.

Customers have access to a customer partner portal.

The SCN (SAP Community Network) is another resource for sharing information and communitysupport for any interested persons. Anyone can register to be an SCN user.

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Main logistics areas within SAP Business One:

Purchasing and Inbound Logistics

Marketing, Sales and Outbound Logistics

Warehouse Management

Production

Service

Master data is common to all areas of Logistics.

Financial controlling underlies all areas of Logistics.

Process variations are controlled by System Configuration.

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A example from a small business of integration of business processes might be :

A customer orders a custom-built personal computer.

A production order is created to build the computer.

Materials are purchased for the components of the computer using the procurement process: purchaseorder, goods receipt PO and A/P invoice.

When the materials are received, they are issued as components to the production order.

The computer is built and we report the item as complete and receive it into finished inventory.

The serialized item is delivered to the customer. When it is issued, the system automatically creates acustomer equipment record showing the sale to the customer and a service warranty contract.

If the customer has a future problem, a service call is created.

Based on the service warranty contract, there is a service level agreement for response and resolutiontime.

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You navigate through SAP Business One using the main menu. The main menu arranges the functionsof the individual applications in a tree structure. The company name and the name of the current userdisplay at the top left.

Choose Administration Choose Company to change the server, that stores the company data. Thecompanies stored on the selected server display in a table. As long as your user exists in a company,you can switch directly to a different company. You can also change users without having to exit thesystem.

One reason why you might use multiple companies:

One reason why you might change a user:

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The SAP Business One menu bar displays at the top of the screen. The menu bar contains theWindows standard menu (File, Edit, Window, Help) as well as generic SAP Business One functions.

The toolbar displays under the menu bar. The toolbar is a collection of icon buttons that grant you easyaccess to commonly-used functions. The functions represented by the buttons are also available in themenu bar.

Active functions appear in color, and inactive functions gray out. You can choose the toolbars that willbe displayed or hidden. To hide or show a toolbar, right-click in the toolbar area and check or uncheckthe appropriate toolbar.

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The graphic shows the form of the customer business partner master. This form serves us as anexample to explain some of the generic functions within any form in SAP Business One.

SAP Business One offers two input tools:

Selection list: Choose the icon left of the field to open a new window with a list of all possibleentries.

Dropdown list: Choose the icon to the right of the field to open a dropdown list with all possibleentries.

The link arrow is a very powerful tool. It allows you to open windows with related information.

If a user has the proper authorization, he or she can change field labels by selecting the Ctrl key anddouble-clicking the label at the same time.

At the bottom of every screen, you will find the status bar that always shows the name, length, andcontents of the current field. Furthermore, if you enable the View System Information menu item,the system also displays some technical information about the field, which you can use for creatingqueries or formatted searches or which you may need if you are working with the SoftwareDevelopment Kit.

You can use the four fields on the right to display additional data for an object. The system displaysthis data when you use the object in the active window. This means, for example, that you can displaythe customer's telephone number while you are entering an order.

Note: Master Data opens in Add mode. Change to Display mode to search for data. For documents, themodes are reversed.

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Under Tools My Shortcuts Customize, the system allows you to assign the function keys F2through F12 to your most used transactions. You can then start these transactions simply by hitting therespective function key. The function key F1 is reserved for accessing online help.

Furthermore, every user can create a personalized menu containing favorite transactions andfrequently-used queries. Choose Tools My Menu to maintain your user menu.

User Defaults can be set for each user.

You can change the settings for columns in a document for each user. Once you make the settings,these defaults will be applied automatically each time this user logs in.

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Every system user can determine which modules and menu options will be displayed on his or hermain menu.

Visible: When this box is checked the module/menu item displays on the main menu. When this box iscleared the module/menu item will not display.

Apply Authorization: This button is relevant to normal users only.

Normal users, contrary to superusers, can be restricted to certain actions and menu items due toauthorizations.

By choosing the Apply Authorization button, a regular user can set the main menu to display onlyauthorized modules and menu items.

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SAP Business One tracks business activities using documents such as purchase orders, invoices,production orders, sales orders, and so on.

Each of these documents is constructed from smaller reusable chunks of data called master data.

Master data refers to the key information that describes your customers, vendors, and leads as well asitems that your company buys and sells.

Creating documents from master data increases productivity, ensures data consistency, and reduceserrors.

It is easy to look up business partner and item information while you are entering sales and purchasingdocuments. A selection list icon is available in the business partner and item number fields inmarketing documents. Use the selection list icon to make a selection list appear. You can scroll throughthe list or use characters with wildcards to search.

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All the documents in purchasing and in sales share a similar structure. The documents for sales andpurchasing are also often called “Marketing Documents”.

In general the document is divided into:

the upper part (header) with the general information,

the middle part with the information on different tab pages and the item specific data (you canaccess more item specific data in the line details by double-clicking a row),

and the lower part (footer) with more general information.

The middle part contains three tabs:The Contents tab is where all the specific information about the ordered items or services is entered,such as quantity, price, item number, and description

The Logistics tab contains the details about where the items or services as well as payments are to besent. Shipping method is also specified here. Most of the data is pulled from preconfigured mastercompany details and vendor data.

The Accounting tab contains the relevant general ledger (G/L) account information for the purchasepulled from the financial accounting master data.

Much of the data appearing in these tabs defaults from the master data. The values can be changedwhile working in the documents. These changes will affect the document, but do not change themaster data records.

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In purchasing and sales documents, you can choose the row’s type on the Contents tab page.

The default view of the system is without the type column and can be edited using the Form Settings.You have to select the Type indicator on the Form Settings – Table Format tab page.

The options for the row types are:

Blank: for a regular item row this field is empty

T: for a text row

: for a subtotal row

A: If the document is a sales quotation, the option A is available for an alternative item row. Analternative item is not taken into account on sum calculations.

You can change the format of any row in the Contents tab of any SAP Business One purchasingdocument to insert text or a subtotal of the preceding row. Simply click on the drop-down list in theType field and select T (for text) or (for subtotal). When you select T, the Text Editor pop-upwindow appears. From here, insert predefined text from the drop-down list or insert your own text.This is especially helpful when you want to convey specific instructions to your vendor about howitems should be manufactured, handled, or shipped.

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You can use SAP Business One online help in several ways. If you press F1, you get context-sensitivehelp; that is, help about the particular screen you are on. Use Shift + F1 to get a field context help.

Selecting Help Support Desk Find a Solution from the main window menu bar displays an SAPLibrary window, which allows you to search for a solution by key words.

The System Messages Log pane displays up to the last 50 system messages appeared on the applicationwindow for the current user since the last login.

This pane appears at the bottom part of SAP Business One application, but you can close it, move it,and re size it as required, like any other application window.

The window displays errors, warnings or information messages.

A hyperlink to relevant help files may appear in the row. Click it to read more detailed information onthe message. When available, the system message will display an eight or nine digit unique identifier.You can use this ID as a search key in the online help.

The date and time of message appears. You can change the format of the date and time in the GeneralSettings area. Administration System Initialization General Settings Display tab DateFormat and Time Format fields .

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Drag&Relate is a particularly effective means of linking two business objects to create a query.

The screen on the right shows the data in an item master record. If you want to find out whichquotations have been made for this item, for example, you simply drag the Item Number field to theQuotations entry in the navigation Drag&Relate tree. The system then displays a list of all thequotations for item M00001. If this list is too long, you can filter the list to display just the results thatyou are interested in.

You can limit the authorizations per user for using the reports: Administration System InitializationAuthorizations General Authorizations, select General Drag&Relate

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Under Administration System Initialization General Settings on the Display tab, you canchange various display parameters.

On the Font&Bkgd tab, you can choose a background image.

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Purchasing is not just about ordering and paying for pencils and paper clips. Rather, purchasing is theprocess of ensuring a steady stream of required materials is on the way to your company when andwhere you need them. As a fully integrated, end-to-end business management application, SAPBusiness One helps you run the purchasing process, starting with the purchase order and continuingwith the rest of the purchasing documents. SAP Business One automatically captures information ateach step so you always know what’s on hand in inventory as well as the up-to-the-minute financialstate of your business. The real-time view helps you identify potential shortages before they happen.Precise historical information keeps track of which vendors come through for you consistently.

The graphic shows the basic four-part process of ordering, receiving, and paying for goods or services.

The purchase order (PO) is the document you provide to the vendor specifying the items or servicesyou want to purchase, including agreed-to quantities and prices.

The goods receipt PO is the document that denotes the delivery of goods from a vendor to a company.It is used to update the inventory quantities and values.

The A/P invoice (or A/P voucher) is the document into which accounts payable enters the vendor’sinvoice information and sets up the payment.

The outgoing payment is the document which tells the system to send a payment to the vendor. Thereare, generally speaking, four ways of sending outgoing payments: cash, checks, credit cards, and banktransfers. There are also some additional country-specific payment methods. In SAP Business One, thefunctionality and reporting associated with processing payments are accessed through the bankingmodule.

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Purchase Order Definition: A purchase order is a commercial document issued by a buyer to a sellerspecifying the items (goods or materials) or services—along with agreed-to quantities and price—thatthe seller will provide the buyer.

Accounting and Inventory Effects: When a purchase order is added in SAP Business One, no value-based accounting changes occur. However, the order quantities are listed in inventory management.You can view items and quantities on order in various reports and windows, such as the inventorystatus report and the Item Master Data window. Obviously, having such real-time access to thisinformation can play a key role in optimizing a company’s purchasing and inventory managementbusiness processes.

How is the information stored in the purchase order used? Normally, when goods are received,purchase orders are matched with packing slips and vendor invoices before the invoices are paid. InSAP Business One, this process is automated: the purchase order can be linked to the goods receipt PO(information from packing slip), which then can be linked to the A/P invoice (information fromvendor’s invoice), allowing information to be consistent and retained throughout the process. Younever have to enter data twice.

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There are three types of business partner master records in SAP Business One: vendors, customers, andleads. Vendor data identifies who is supplying the goods and services.

You use vendor master records in purchasing to handle all purchasing transactions. Accountingmanages the relevant transactions in one or more control accounts.

Vendor codes are alphanumeric and must not overlap with the G/L account numbers. The codesmust not contain mathematical operators, since these would be misinterpreted by the SQL database.Underscores, however, are allowed.

Before purchasing documents can be created, the vendor must be entered in the SAP Business One listof business partners.

To locate existing vendor information, either click on the button to the right of the Vendor field in thedocument header or press the Tab key in the Vendor field. The List of Business Partners appears in apop-up window.

If you are authorized, you can enter new vendor information while creating a purchasing document. Todo so, click on the New button on the bottom of the List of Business Partners pop-up window.

If you plan to issue the vendor a check or bank transfer using the payment wizard, make sure you havedefined the payment method in the vendor business partner master data record.

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It is important to understand how the Ship to and Pay to addresses are used in the purchasing process.

Ship-to address come from two places, depending on the setting chosen for the Service/Item Typefield.

The company ship-to address is displayed under the Logistics tab and is defined in the Administrationmodule. This address is used for service-type purchasing documents.

The warehouse ship-to address is used for purchasing documents with items. The address is taken fromthe warehouse associated with the first row in the document. This setting is found in DocumentSettings Use Warehouse Address. Warehouse addresses can be set up and changed in SetupInventory Warehouses.

Pay to address: This information is displayed under the Logistics tab and is defined in the vendorbusiness partner master data record. Make sure the Pay to address is the one you want for a givenpurchase since this information prints on the check when payment is issued.

Addresses can be overwritten inside a purchasing document.

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In the purchasing process, item master data identifies what is being purchased.Frequently the same items are purchased, inventoried, and sold. The information is the same; it is justused differently. This is the advantage of using an item master record which can be copied into anydocument in the purchasing, sales, production, MRP, inventory, and service modules.

The header of the item master data record contains general information about the item, including aunique ID number assigned by the user, a description (including a description in a foreign language),and settings to determine the type of the item, the group it belongs to, the price, and the applicableprice list. Checkboxes on the right indicate whether the item is kept in inventory and whether it isoffered for sale or purchase (in many cases both apply). The item can be marked as a fixed asset withanother checkbox.

The General tab of the Item Master Data window has a mix of information about the manufacturer ofthe item, additional identifiers, shipping methods, and issue method.

The Purchasing Data tab indicates the main vendor who sells the item, how to identify the item in acatalog, the units of measurement used for the item for purchasing purposes, and the actual size of theitem. For items with a purchasing history, you can click on the chart icon on the lower left of the tab todisplay a graphical purchase analysis.In a purchasing document, you can locate the List of Items (goods and materials), by pressing the tabkey from the Item No. field in the document’s Contents tab. From the resulting pop-up window, youcan select from the list or enter new data by clicking on the New button.

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You can save every document of sales or purchasing as a draft. When you enter a document you canchoose File Save as Draft.Drafts are often used when approval is needed to create a purchase order. The document is saved as adraft, then the draft document is forwarded to an approver. Once the document is approved, thepurchase order is added and a copy is sent to the vendor.

You can display a list of all the document drafts. Choose either Sales - A/R Sales ReportsDocument Drafts or Purchasing – A/P Purchasing Reports Document Drafts.

You can select all the documents that you have saved as drafts. By double-clicking a document in thelist, you can display it and edit the data. If you choose Add you add the document.

Draft documents remain in the system after they have been further processed.

Important note: you specifically have to remove drafts that you no longer need.

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When you create a purchase order, you can quickly email a copy to your vendor to expedite the order.You also have the option to print, fax, or export any documents you create in purchasing or sales.

The layout of a printed document can be viewed on the screen. When the business transaction isentered choose File Print Preview or the print preview icon.

There are two ways of printing out the documents of sales or purchasing

The document can be printed immediately when the business transaction is entered.Choose File Print or the print icon.

Several documents can be printed simultaneously (all the invoices from one day, for example).Choose Purchasing – A/P Document Printing or Sales – A/R Document Printing. Documentsthat have already been printed can be printed again.This document printing function allows you to print many documents at once, by generating anddisplaying a list of documents according to the user’s specifications. The user can choose whether toprint the whole list or certain documents.

TB1200 Implementation and Support course covers how to design the print layout.

The functionality Export to File allows you to export the documents in different types of file. Whenyou enter the business transaction choose File Export

Notes: Install Outlook Integration to use email output. Fax functionality requires specific add-onsoftware.

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

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Purchasing documents build on each other. Often, a purchase order becomes a goods receipt PO thatrecords the vendor’s delivery and finally an A/P invoice when the vendor’s bill is received.You can quickly copy a document to the next document in the sequence using the Copy To button. Theoriginal document is called a base document; the document you create from it is called a targetdocument. Building one document from another saves time and effort. It also reduces the possibility oferrors.When you copy all of a base documents items and quantities, it will be closed and you will not be ableto copy it again to another document.The other method for copying a document is Copy from. The Copy From button allows you to select abase document or documents from which to create a new document. Clicking Copy From starts thedraw document wizard.Often the first step in building one document from another is locating the base document you want touse. For example, goods may be delivered to a warehouse and a goods receipt PO needs to be entered.How do you find the relevant purchase order? One tool for locating such documents quickly is theOpen Items List. The report shows all open documents of the type you select in the drop-down list inthe upper right. You can then select the relevant purchase order, for example, and create a goodsreceipt with a single click on the Copy To button. When one document is built from another in thisfashion, all the relevant information is copied from the base document to the new document, reducingboth data entry time and errors.

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Once the Goods Receipt PO is added to the system it has the following consequences:

1) The purchase order (base document) cannot be changed.

2) The goods receipt PO creates a journal entry to increase inventory value, and therefore cannot bechanged.

3) The system updates the stock quantity in inventory.

4) Items that have been partially or completely delivered appear in light gray in the purchase orderdocument. When all items are received, the purchase order status changes to Closed.

Note: The journal entry is created only when you run perpetual inventory, however the quantity isincreased regardless of type of inventory method.

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Definition of an A/P invoice: An A/P invoice is entered into SAP Business One when you a receivean invoice from the vendor. It will be used to trigger a payment to the vendor.How to enter an A/P invoice: You can create an A/P invoice new by selecting the document name inthe module menu or by basing it on one or more POs or goods receipt POs. If you are basing your A/Pinvoice on one or more existing purchasing documents, you may copy all the data contained in the POor use the draw document wizard (see Chapter 10) to select the data to copy from one or more existingPOs or goods receipt POs. Even if you copy all data from existing purchasing document(s), you canstill adjust quantities and prices—as well as dates, vendor, and item information—before you post thedocument.

Data entry tip. Use the Document Date field in the A/P invoice header to enter the vendor’s invoicedate. This is important for accounting and auditing reasons as the invoice date and the posting date maydiffer. You may also wish to change the name of the Vendor Ref. No. field in the document header toVendor Invoice No. This field prints on the check and allows your vendor to tie the payment to theirinvoice.

Accounting Impact of an A/P Invoice: The posted A/P invoice generates entries in the general ledgerand updates the vendor account with the amount owed to the vendor.Inventory Impact when a Goods Receipt PO is not referenced: In those cases where a vendor’sinvoice arrives at the time the items are received, the resulting A/P invoice also increases inventoryquantities and values.

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Once the A/P Invoice is created in the system it can have the following consequences:

1) The Goods Receipt PO increased the stock value earlier. Only if there is no goods receipt PO arethe stock values updated when an A/P invoice is entered.

2) The A/P invoice creates a journal entry to update the vendor’s balance to show the amount due.

3) You cannot change anything in the A/P invoice that would affect the journal entry once the invoiceis added to the system.

4) On the goods receipt PO, items that have already been partially or completely invoiced display inlight gray. If the invoice is for the full quantity on the goods receipt PO, then the goods receipt POstatus changes to Closed.

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When you buy inventory items, the system creates the following journal entries:

The goods receipt PO creates a journal entry that posts the value of the received goods to the debitside of the stock account and to the credit side of an allocation costs account. The stock account andthe allocation costs account are retrieved from the Inventory Account field and the AllocationAccount field on the Inventory Data tab of the item master record.

The A/P invoice creates a journal entry that posts the invoiced amount to the debit side of theallocation costs account and to the credit side of the vendor account. The allocation costs account isretrieved from the Allocation Account field on the Inventory tab of the item master record.

You need the allocation costs account to check if the goods receipts PO and the A/P invoices match.You need to reconcile this account on a regular basis.

If you directly post the A/P invoice without first creating a goods receipt PO, the postings to theallocation costs account are omitted.

To post a purchase order, choose Purchasing – A/P Purchase Order.

To post a goods receipt PO, choose Purchasing – A/P Goods Receipt PO.

To post an A/P invoice, choose Purchasing – A/P A/P Invoice.

This graphic does not cover tax postings or postings of additional revenues and expenses. The purchaseorder document is not relevant for accounting.

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After a document has been added, you can navigate from a document to preceding and follow-updocuments by using the Base Document and Target Document icons.

Now that we have finished the first three steps in the procurement process for items, let’s review whathappens when each document is added.

1) Purchase Order: When you enter a purchase order, no value-based changes are posted in Accounting.However, the order quantities are listed in inventory management. You can view the ordered quantitiesin various reports and windows such as the inventory status report and the item master data window.

2) Goods Receipt Purchase Order: When you enter a goods receipt PO, the goods are accepted into thewarehouse and the quantities are updated. If your company runs a continuous stock system, SAPBusiness One creates the relevant postings to update the stock values as well.

3) Accounts Payable Invoice: When an incoming invoice is posted, the vendor account is updated inAccounting.

If a goods receipt PO is not referenced by the A/P, the stocks also increase when the invoice isposted.

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After you have entered an A/P invoice, the final step in the Purchasing-A/P process is to trigger thepayment to the vendor.

The outgoing payment document can be created for the following payment means:

cash

check

credit card

bank transfer

bill of exchange

Once the outgoing payment is added, an appropriate journal entry is created. The journal entry reducesthe vendor’s balance.When creating an outgoing payment to clear (fully or partially) a specific document or transaction, aninternal reconciliation automatically takes place.Multiple outgoing payments can be created together by the Payment Wizard. Payment wizard runscover A/P and A/R documents and transactions that are not fully paid, credited, or reconciled, as wellas unreconciled/allocated payments on account.When creating outgoing payments, either individually or with the Payment Wizard, you can alsopartially pay invoices.Payment processing is considered to be part of the Banking Module in SAP Business One.

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Purchase Analysis: To manage a business efficiently, you require detailed information about thepurchasing volume made from your vendors. You must be able to determine which products youpurchase the most, and which of your purchasing employees attains the best deals. This information isprovided by the purchase analysis and is made clearer with a graphical display.

Open Items List: This report allows the user to view open sales and purchasing documents. Using thisreport gives you an accurate picture regarding the status of documents in the system, only documentswith Open status appear in this report. Documents that were partially copied to target document alsoappear in this report. You can also display the documents from the report.

Vendor Liabilities Aging: When processing this report, you can also display the detailed informationfor each vendor in the row. In the detailed view, the documents are displayed together with therespective liabilities. The report provides the size of the vendor liability and the time that the debt hasremained unpaid.

Drag & Relate: The Drag & Relate menu is a tab page in the SAP Business One Main Menu. Toswitch from the Modules menu to the Drag & Relate menu, choose the Drag & Relate tab. Drag &Relate is an extensive information system that can be used to display information about the businessprocesses quickly and easily. Drag & Relate is an interactive tool that can be used in parallel to regularworking methods. The user-friendly interface offers optimum support for finding importantinformation quickly. The Drag & Relate tool uses pre-defined queries in order to generate reports inthe system, and searches both in reports and in the master data, such as G/L Accounts and BusinessPartners. Reports can be filtered using the Filter function.

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You can use the report Inventory Status to analyze the inventory situation for one or more selecteditems. Choose Inventory Inventory Reports Inventory Status.

You can also see the inventory status in the item master on the Inventory Data tab page.

In Stock: The current stock level of the item.

Committed: The item stock that is reserved for customers and for internal use is displayed here. Thestock that is reserved for internal use is the quantity of the item for that will be used for a finishedproduct based on the BOMs for existing production orders.

Ordered: This field shows the quantity of the item ordered from the vendor. This figure consists ofthe quantity ordered from external vendors plus the quantity that is being produced and that willenter the warehouse by a certain date.

Available: The available quantity of an item displays. This figure comprises:In Stock - Committed + Ordered

If the available stock for an item is negative, the value displays in red.

To display the details for the inventory situation of an item regarding open orders, purchase orders, andproduction orders, select the row for that item in the report. The system opens the Stock Situation sub-window.

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The purchase order updates order quantities in inventory management.

The goods receipt PO updates quantities and values in inventory and creates a journal entry when usingperpetual inventory.

The A/P invoice creates an accounting entry, and can create a change in inventory if there is no GoodsReceipt PO.

The outgoing payment creates the payment to the vendor.

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Let us say you need to buy landscaping, training or other non-physical purchases. In those cases, youcan still use purchase orders and A/P invoices. You have two options for purchasing services: you candescribe a service in the row or use a “service” item that you have created.

If you purchase a service frequently and the price is pre-set with the vendor, an item can be very usefulbecause it allows you track the quantities.

When purchasing services, you may wish to begin with a purchase order which describes the servicebeing purchased, the price agreed to, and the G/L account associated with the service. The purchaseorder is optional. The advantage of using a purchase order is that it gives you a document in which toset the conditions and price for the service.

Generally you discuss the scope of the project and expected price with the vendor and at that point thepurchase order is created with the details of the agreement.

When the vendor receives the purchase order, they confirm the agreement and dates are set for them toperform the service.

The goods receipt PO document is generally not used for purchasing services. Usually, this step occursoutside the system.

After the service is received and the vendor sends an invoice, an A/P invoice is entered into the system.

Finally, an outgoing payment is created to pay the vendor.

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A sales or purchasing document can include either pre-defined items from master data or descriptionsof services which are directly entered in its rows. The document cannot include both.

On the Contents tab of Sales and Purchasing documents, you can set the Item/Service Type to eitherItem or Service.

This setting applies to the entire document, and you cannot change it once you have saved thedocument.

The table view on the Content tab page is different for each option.

Services as a service in the document:You only use the Service option in SAP Business One to buy or sell a service that does not have amaster record.

Services as an item in the document:Entering services as items has several advantages:

You can enter items and services in the same document

You can define master data for the service, such as prices, sales quantities, and so on

You can use the usual sales analyses and evaluation reports for services

Typically, creating a service as an item is done more frequently for selling services, than forpurchasing services.

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For services such as electricity or rent, there is usually no purchase order involved in the process. Usethe following steps to create an A/P invoice without referencing a purchase order:

Refer to the physical vendor invoice to create a service invoice.

Enter the vendor number to bring in data from the vendor master record.

Then enter the vendor invoice number and the vendor invoice date.

Verify the correct setting exists in order to enter a description, the general ledger account, and ofcourse the amount due.

When you save the invoice, SAP Business One performs a duplicate invoice number check for thevendor. The system alerts you if the vendor invoice number is found so you can research theinvoice. This function helps us to avoid duplicate payments.

When the system saves the invoice, the value updates the amount due to the vendor, the relatedexpense account, and the related general ledger control account at the same time.

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As mentioned before, services can be set up as items to make it possible to track purchases. Anothercommon type of non-inventory item is an item which represents an expense purchase, such as officesupplies.

When you buy items that are directly consumed and not stored in inventory, the system does nottrigger a posting for the goods receipt PO even if you create one.

The A/P invoice amount is posted on the debit side of an expense account because it goes directly intoexpenses. The credit side is posted on the vendor account. Although the item is not an inventory item,the Inventory data tab does not disappear from the item master record because the system needs it forthe G/L account determination. The expenses account is retrieved from the default warehouse on theInventory tab of the item master record.

If the vendor is located in the same country, the account from the Expenses Account field is used.

If the vendor is located in an EU country, the account from the EU Expenses Account field is used.

If the vendor is located in a non-EU foreign country, the account from the Foreign ExpensesAccount field is used.

This graphic does not cover tax postings or postings of additional revenues and expenses.

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Sometimes vendors deliver too little or too great a quantity for an item. A vendor might send adifferent item than was originally ordered. In these circumstances you can adjust the goods receipt POaccordingly to reflect the actual amount received.

1) If you refer to a purchase order document when you enter a goods receipt, you can increase (overdelivery) the copied quantity.

2) You can also add additional items in the goods receipt.

3) If you refer to a purchase order document when you enter a goods receipt, you can reduce thecopied quantity. This is a partial delivery.

4) You can create a second partial delivery.

If you do not expect to receive any additional deliveries after the partial delivery, you should close thepurchase order so that the open purchase order quantity can be reduced (choose Data Close or rightmouse-click Close). The Status of the purchase order will change to Closed. It is only possible tomanually close a document with open status that has been partially received or not received. Thepurchase order is not deleted so you can still display or duplicate the document, but it is no longeravailable for copying to another document, such as a goods receipt, goods return or A/P invoice.

If a purchase order will never be received, then you should cancel the purchase order. You can cancel apurchase order that has never been copied or one that has been partially copied. As with the statusClosed, a Canceled purchase order is not deleted. You can still display or duplicate the document, butit cannot be copied to another document.

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The Goods Returns is the clearing document for a Goods Receipt PO.

When you enter a goods returns, the goods are issued from the warehouse and the quantities arereduced. If your company runs a continuous stock system, SAP Business One creates the relevantpostings to update the stock values as well.

To reverse a specific Goods Receipt PO, create the goods returns based on it, provided that an A/PInvoice has not yet been created for that Goods Receipt.

If you have already entered an A/P Invoice for the transaction, use the A/P Credit Memo function tocarry out quantity and value-based corrections in the system.

When you return goods to a vendor, goods cannot be received again with reference to the existingdocuments. When the goods are delivered again, you can either enter a delivery without a reference toa purchase order in the system, or duplicate one of the preceding documents.

Beginning with release 8.8, when a Goods Return is created without being based on a previousdocument, the value of a moving average item is the current item cost calculated for the item and notthe unit price entered in the goods return document.

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You can use the credit memo document for goods returns that the vendor has already invoiced. Thecredit memo then updates the stock quantities and corrects the values in accounting.

You can create a credit memo using services to correct amounts without affecting inventory.

When you create the credit memo, the system finds the same accounts that were used to post theinvoice and posts a negative value to them.

It is a requirement in certain jurisdictions, e.g. Spain, that sales and purchase credit analysis is shownseparately in the Profit & Loss account to the normal sales and purchase accounts. Accountdetermination functionality is extended to determine which Profit & Loss accounts are updated on theposting of sales and purchase credit notes. This functionality allows a user to specify different postingaccounts for sales revenue and sales credits. It also allows the user to specify different posting accountsfor purchase expenditure and purchase credits. If not for any legal requirement this functionality isuseful for analysis purposes when seen directly on the face of the chart of accounts.

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The method you use to create a credit memo depends the status of the Invoice, Open or Closed, or ifthe credit memo is not related to a specific invoice.

When you can identify the related invoice and the invoice is open, you create a credit memo bycopying from the original invoice.

A credit memo for the full invoice amount will reverse the original invoice.

A credit memo for less than the original invoice amount will reduce the total invoice amount due.

When you create a credit memo without copying from the original invoice, the credit memo reducesthe total balance due to the vendor.

Starting from release 8.8, the values in the journal entry created by an A/P credit memo that is notcreated from copying from another document are based on the current value calculated for the returneditems.

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How can you search for the invoice and determine if it has been paid? You display an invoice using thesame task you use to create an A/P invoice. You can use part of the vendor name, vendor number, orthe vendor’s invoice number as search criteria.

When you display the invoice, a Closed status alone does not mean the invoice has been paid. If thepayment has been made, you can navigate to the payment details.

What is the fastest way to review the account details for a specific vendor? You can use the vendoraging report, but a more direct way is to display the vendor master data. From there, you link to theaccount balance to see the related details.

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Questions on Purchasing Concepts

Review Questions

1. What are the 3 main documents used in the purchasing process?2. What master data must be entered into every purchasing document?3. What row types are available in the marketing documents used in purchasing?4. What does the Item/Service Type field control?5. Which document in the purchasing process is the only mandatory document? Why?6. What are the advantages of using Copy from?7. What are the advantages of using Copy to?8. What is the main purpose of a purchase order? How does it affect inventory reporting?9. What is the main purpose of the Goods Receipt PO? How does it affect inventory and

accounting?10. What is the main purpose of the A/P Invoice? How does it affect inventory and

accounting?11. What happens if you create an A/P Invoice without creating a Goods Receipt PO? How

are the journal entries different for an A/P invoice created without referencing a goodsreceipt PO compared to an A/P invoice which references a goods receipt PO?

12. Where can you view inventory status information?13. Which purchasing documents are used for purchasing services?14. What information must be entered on the row when purchasing services?15. What documents are used to correct issues in the purchasing process?16. Give an example of when you would use each of these documents.17. What are examples of reports used in purchasing?

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“Extend your knowledge” discussion questions:

1. How should you create your purchase order if you want to purchase both a service andrelated non-inventory items?

2. How would this be different from a situation where you planned to purchase a capitalitem with a service contract?

3. What procurement process steps would you suggest be used for a company that typicallypurchases all items on the internet or by phone?

4. How can an A/P clerk research if a goods receipt PO has already been created when hereceives a bill from the vendor?

5. What happens if you forget to reference a purchase order when creating a goods receiptPO?

6. What are possible options to correct a situation where someone enters a goods receipt forthe wrong purchase order?

7. What is the best way to deal with a situation where you need to return items to a vendoreven though you’ve already paid the vendor for those items?

8. What happens in the system if the vendor invoice has a different price than that on thepurchase order?

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The sales-A/R process moves selling the goods (and services) to delivering those goods to invoicingthe customer for their purchases.

Each of the steps involves a document, such as a sales order , delivery or A/R invoice. SAP BusinessOne efficiently moves all relevant information from one document to the next in the document flow.According to the business needs, you can choose which documents to include as your process steps.The only mandatory document in sales is the A/R invoice.

Sales documents carry much of the same information throughout the sales process. This topic helpsyou recognize what is the same in each document so that you can quickly focus on just the informationyou need.

The sales order is a commitment from a customer or lead to buy—at agreed-to quantities and price—aproduct or service from you.

The delivery indicates that the shipment of goods has occurred.

The A/R invoice is the only document that must be created in the sales process. It is the request forpayment and records the revenue in the profit-and-loss statement.

The incoming payment receives the payment from the customer and clears the customer account.Internal reconciliation takes place automatically.

A customer or lead is entered for all sales documents.

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Lead data: Describes people and organizations in the sales pipeline—your potential customers. Leadmaster data records are used as the foundation for sales and marketing. When you make the first sale toa lead, you change the business partner type to customer, turning the lead into a customer.

Customer data: Describes people and organizations to whom your company sells products andservices. Customer master data records are used as the foundation for documents related to processingand fulfilling orders for customers and for the wizard for dunning customers.

Vendor data: Describes the people and organizations from which your company buys products andservices. Vendor master data records are used to create documents related to purchasing and acceptingdelivery of goods and services and processing payments to vendors.

Customers and leads are used in the sales documents; vendors are used in purchasing documents.

Because there is a great deal of similarity between the data for each of these types of master datarecords, SAP Business One uses windows with a common structure for each record type.

You set defaults for the company and these defaults are copied into each newly created businesspartner:

The currency defaults to the company’s local currency.

The payment terms are set to the company’s default payment terms.

Credit limit and price list are set from the company’s default payment terms.

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When you identify a potential customer, you can create a lead master data record using the BusinessPartner Master Data window. This enables you to document and track the presales activities with thislead. You can create the following documents for lead master data: sales quotation, sales order, salesopportunity, and activity.

When the lead takes the next step and buys a product or service, the lead becomes a customer. In thiscase, all you have to do is to change the type of the business partner master record from lead tocustomer. All the information you have added to the lead master data record is saved, as well as thedocuments you created for this lead.

For example, if you created a sales order for a lead, once the lead becomes a customer and buys theitems in the sales order, you can use the sales order as the basis for creating a delivery document andlater on an invoice.

Because SAP Business One automates so much of the processes related to the sales-A/R process, it isessential that you select or enter the correct customer and item data when you initiate a sales order.

For example, things as simple as a customer’s ship-to and bill-to addresses, if entered inaccurately orincompletely, can have a huge impact on your company’s bottom line when goods ordered show upwhere they are not supposed to or invoices are sent to the wrong office. The tax code and rate isdetermined based on the ship to assignment, so make sure you select the appropriate ship to addressfrom the drop down list, rather than updating the address manually.

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Item data identifies goods or services being sold.

To view a list of items, press the Tab key from the Item No. field in the document’s Contents tab. Youeither select from the list or click the New button to enter a new item.

Usability tip: If the customer wants to order multiple items, you can select multiple items from the Listof Items by holding down the Ctrl key and clicking on as many items as desired.

A sales order could also be created for services as well as for physical items. If the services aredefined as items, they can be entered along with items in an item type order. Otherwise, use theItem/Service type field, to switch to a service type document where descriptions of services can beentered along with prices.

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You can define multiple price list for your items. A price list contains items. Price lists can be basedon other prices lists by using a percentage mark-up.

Every item is linked to every price list.

You can assign a price list to the customer master record on the Payment Terms tab.

When you enter the customer in a sales document, the assigned price list defaults to the document.

The system will then use that price list to price the items in the order.

Of course, more complex pricing can be used such as special prices, discount groups, and pricinghierarchies. These are discussed in the Inventory unit in the Pricing section of this course.

Prices can also be changed in the sales order by authorized users. For example, a salesperson mightgive a 5% discount to a particular item or to a whole sales order.

Examples of price lists might be: sales prices list, purchase price list, large customer price list.

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How to create a sales order: Select Sales - A/R Sales Order. When master data is set up properly,you enter information in just a couple of fields:

Customer: customers and leads can be entered here.

Items: enter items and specify quantities.

Who uses the information in the sales document: The sales order is an important document—it tellseveryone to get busy filling that order. As such, this document is important for planning production,creating purchase orders, and scheduling resources.

One unique feature of SAP Business One is that you can create purchase orders directly from salesorders, thereby streamlining your supply chain as well as material requirements planning processes

You can change a sales order (changing quantities, updating prices or discounts, and so on) after youhave posted it. This is possible as long as you have made the appropriate setting in Documentsettings and there are no deliveries or invoice documents which reference the sales order.

Effect on Inventory and Accounting: In SAP Business One, a sales order affects the available stocklevel. This means that the stock available to sell is reduced by the quantity in the order. When youenter sales orders, no value-based changes are posted to the G/L, but the items are added to thecommitted quantity in the inventory module.

Canceling a Sales Order: A sales order can be cancelled or closed if it is not needed. It will no longershow in the Open Items List. When an order for items is cancelled or closed, the committed quantity inthe inventory module is decreased. You can view the ordered quantities in various reports, such as theinventory status report. This information is important for optimizing sales processes and stock levels.

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1) You can activate an automatic availability check for sales orders. You do this in AdministrationSystem Initialization Document Settings on the Per Document tab page choose the DocumentSales Order and select the checkbox for Activate Automatic Availability Check..

2) When you create a sales order and enter a quantity for an item, which is greater than the availablequantity for this item, the Item Availability Check window comes up automatically. If the automaticavailability check for sales orders is not activated through the document settings, you can also alwaysget to the Item Availability Check window by choosing Goto Item Availability Check or with a rightmouse click in the item line.

3) Item Availability Check Window displays Quantity Ordered: (the quantity from the item line of thesales order per sales unit of measure) and Quantity Available: (the quantity that is available perinventory unit of measure.) Actions in this window include:Continue: Accepts the information and proceeds without changes.Change to Available Quantity: Reduces the order quantity to the available quantity.Display Available-to-Promise Report: Provides an at-a-glance report on stock inflow and outflowincluding projections. This report is also available directly from the context menu.Display Quantities in other Warehouses: Provides a report where you can check and possibly select thequantities from another warehouse.Display Alternative Items: Allows you to check and select the quantities from an alternative item.Delete Row: Deletes the item’s row from the sales order.Change to Earliest Availability: this option only appears when the availability date can be calculated. Itcopies the earliest availability date to the row’s delivery date.

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Definition: A delivery indicates that goods have been shipped. This document is also sometimesreferred to as a packing slip or delivery note.

How to create a delivery: To create a delivery note, select Sales - A/R Delivery. A blank deliverynote appears; you select a customer and fill in the items being delivered. To post the delivery note,click Add.

You may want to create a delivery note from a sales order or sales quotation. To do so, simplydisplay the sales order or quotation and select Delivery from the Copy To button’s drop-down list.

If you have multiple sales orders to be delivered to one customer, open a blank delivery, add thecustomer name, then use Copy from to select from a list of sales orders and quotations for thatcustomer.

Effect on Inventory and Accounting: Adding a delivery reduces the actual inventory levels. Whenyou post a delivery, the corresponding goods issue is also posted. The goods leave the warehouse andthe relevant inventory changes are posted. If you are using perpetual inventory, the inventory accountis credited and the cost of goods sold account is debited based on the current item cost.

A delivery cannot be modified once it is added to the system.

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Definition: An A/R invoice is a request for payment. Posting an A/R invoice records the revenue inthe profit and loss statement.

How to create an A/R invoice: You can create an A/R invoice from single or multiple salesquotations, sales orders, or delivery notes. You can also create an invoice directly by selecting Sales -A/R A/R Invoice.Effect on accounting and inventory: Once posted, the A/R invoice posts a journal entry to thecorresponding customer and revenue accounts.

Effect of creating only an A/R invoice: The A/R invoice is the only mandatory document in the salesprocess. If a business desires a streamlined process, all the functions normally handled in the salesorder and delivery can also be handled by an invoice. In those cases where a delivery document is notreferenced for an A/R invoice with inventory items, the A/R invoice also decreases inventory valuesand quantities. The inventory account is credited and the cost of goods sold account is debited based onthe current item cost in addition to the postings to customer and revenue accounts.

Once an A/R invoice is posted, only fields which do not affect the journal entry can be changed.

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Definition: Incoming payments are the last step in the basic sales process, even though they are afunction in Banking. Posting an incoming payment receives the payment from the customer.

How to create an incoming payment: You can create an incoming payment by selecting BankingIncoming Payments Incoming Payments . Choose the customer account and a list of open invoiceswill appear. The list also includes any credit memos and manual journal entries posted to the account.You can select the invoices to be paid or make the payment to the customer’s account.

When you select an invoice with an early payment discount and the payment was received before oron the due date, the total amount owed is reduced by the discount amount.

When a full payment is applied to an invoice, the invoice is closed and will no longer appear on thelist when you enter the next payments for this customer.

Customer payments can be processed for bank transfers, checks, credit cards and cash, and in somelocalizations, bill of exchange.

Effect on accounting: A journal entry is made crediting the customer account for the payment.Depending on the payment means, an appropriate G/L account (such as one of our bank accounts) isdebited. If there is a early payment discount, a debit is applied to a discount account.

When you create an incoming payment to clear (fully or partially) a document or transaction, internalreconciliation takes place automatically

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SAP Business One provides the A/R Invoice + Payment transaction for sales to one-time customers.

Prerequisites

The customer pays the entire amount at once (for example, in a shop).

The customer does not need documents such as an order or delivery note document.

Settings in the System

You maintain a representative master record for one-time customers in the system(Administration Setup Financials G/L Account Determination, choose the Sales tabpage, then choose Default Customer for A/R Invoice + Payment)The system automatically calls up this customer when you enter the invoice. You cannot changethe customer number in the document. You can, however, change the customer's name andaddress in the fields provided.

Using the default values in the user parameters, you can also assign a separate customer masterrecord to each user for the A/R Invoice + Payment transaction.

Exception: The customer only makes a partial payment

In this case, you should create a separate customer master record for this customer so that you canmonitor the incoming payments.

When you use a one-time customer, no master data record is saved in the system. All the details areinside the document. If you need to keep contact with the one-time customers, you should use a masterdata record for them instead.

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When you sell inventory items, the system creates the following journal entries:

The delivery creates a journal entry that posts the value of the delivered goods to the debit side of acost account (cost of goods sold or COGS) and to the credit side of the stock account (as long as youare using perpetual inventory). The stock account and the cost account are retrieved from the StockAccount field and the Cost Account field on the Inventory tab of the item master record. The stockquantity is affected whether or not you are using perpetual inventory.

The A/R invoice creates a journal entry that posts the invoiced amount to the debit side of thecustomer account and to the credit side of a revenues account.

If the customer is located in the same country, the account from the Revenues Account field isused.

If the customer is located in a European Union (EU) country, the account from the Sales Revenue- EU field is used. A customer is indicated as an EU customer according to the country defined inthe ship-to address.

If the customer is located in a non-EU foreign country, the account from the Foreign RevenuesAccount field is used. A customer is indicated as foreign if the country in the bill-to address isdifferent from the country in which the company is located.

If you skipped the delivery before posting the A/R invoice, the system adds the stock posting to theA/R invoice posting.

This graphic does not cover tax postings or postings of additional revenues and expenses. The salesorder document is not relevant for accounting.

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The sales process involves the sales order, delivery note, and A/R invoice documents. Sales orders, anddelivery notes are optional, but if you do not refer to a delivery note when you post an A/R invoice, theA/R invoice affects your stock.

1) When you create an order the Available quantity is reduced and the Committed quantity is increased bythe sales order quantity.

2) When you create a delivery the In Stock quantity and the Committed quantity is reduced.

3) When you create an invoice the In Stock quantity is reduced if you did not create a delivery notebeforehand.

When you create a document, you can always refer to one or more documents that you created earlier(except for quotations). When you create a document with a reference to an existing document, onlydocuments that are still open are displayed. All documents, for which you have not created a follow-ondocument have open status. Open documents remain open until you have transferred all the items to afollow-on document, or until you manually close or reverse them.

You cannot make any changes to base documents that you have already copied completely to a follow-on document.

Copy rules:

Reference to just one base document: The system copies all the header and row data to the targetdocument.

Reference to several base documents: The system distributes the total discount from the header dataof the base document to the rows and copies it to the rows in the target document.

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1) The A/R invoice is the only document that has to be created in the system. Quotations, orders anddeliveries are optional.

2) A quotation and an order can be changed or cancelled after they have been created.You could disable the possibility to make changes to sales orders: choose Administration SystemInitialization Document Settings, on the Per Document tab page for the Document Sales Orderdeselect Allow Changes to Existing Orders.You can not change deliveries or A/R invoices after they have been added.

3) If you need to correct a delivery, you have to do that by creating a return. If you need to correct a A/Rinvoice, you have to do that by creating a A/R credit memo.

4) When you create an order, you could do that by referencing a quotation. You can create a delivery byreferencing a quotation, an order, or a A/R reserve invoice. You can create an A/R invoice byreferencing a quotation, an order, or a delivery.

5) When you create a delivery, the goods issue is posted as well. The In Stock quantity is reduced. Whenyou create an A/R invoice without reference to a delivery, the goods issue is posted. The In Stockquantity is reduced.

6) Values from both the delivery and the A/R invoice are posted in the general ledger. The goods issuefrom both deliveries and A/R invoices (with no reference to a delivery) create journal entries whichpost to the general ledger. An A/R invoice creates entries for sales revenue and the amount thecustomer owes.

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You can use the report Inventory Status to analyze the inventory situation for one or more selecteditems. Choose Inventory Inventory Reports Inventory Status.

You can also see the inventory status in the item master on the Inventory Data tab page.

In Stock: The current stock level of the item.

Committed: The item stock reserved for customers and for internal use displays here. The stockreserved for internal use is the quantity of the item used in a finished product based on the BOMs forexisting production instructions and work orders.

Ordered: This field shows the quantity of the item ordered from the vendor. This figure consists ofthe quantity ordered from external vendors plus the quantity that is currently being produced and thatwill enter the warehouse by a certain date.

Available: The available quantity of an item displays. This figure comprises:“In Stock” - “Committed” + “Ordered”

If the available stock for an item is negative, the value displays in red.

To display detailed information on the inventory situation of an item in sales and purchase documents,open the Available to Promise report from the context menu for the row.

Additionally, you can view stock information in the row details for sales documents, purchasingdocuments and production orders.

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The system offers different functions within the sales process. Some of these functions are availableonly in specific sales documents.

1) You can do a credit limit check in a sales order, delivery, and A/R invoice but not in a quotation.

2) You can display the Gross profit and Last prices report for each document in sales.To display the gross profit in a document choose Goto Gross Profit or select the icon in the menubar or choose right mouse click.To display the Last Prices Report in a document put the cursor in the price field and choose GotoLast Prices or right mouse-click on the unit price field.

3) You have a link to the transaction journal report from the A/R invoice. If you have a perpetualinventory validation, you also have a link to the transaction journal in a delivery. To display theTransaction Journal Report in a document select the icon in the menu bar or choose right mouse click.

4) Serial number and batch management is available in sales orders, deliveries, and A/R invoices.However you cannot assign serial numbers in a sales order.

5) You can create activities from every sales document by choosing Goto New Activity or by using aright mouse click. You can assign activities to every sales document.

6) Drafts can be created for every sales document by choosing File Save as Draft. Drafts allow you toenter and save information while a process step awaits approval. For example, deliveries over a certaindollar value may need approval before being shipped.

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The Document Generation Wizard is a simple process used for gathering rows from base documents totarget documents, based on several user-defined parameters. The system takes you through theindividual steps required to define the parameters for the summary. Examples of the parameters thatexist are target document type, posting date, document date, items or service and many more.

This wizard can be used for example, to produce a summarized A/R Invoice for a customer, containingall delivery notes that were created for the customer over the past week. It is a simple yet effectivemethod of summarizing data to reduce data input. All deliveries for an individual customer can beconsolidated into one invoice or set to create separate invoices. It is important to note at this stage thatonce the Document Generation Wizard has run the process, it is irreversible.

When creating deliveries as target documents, partial delivery is possible as long as it is specified asallowed in the sales orders. Also two settings must be made in the Document Settings: ‘Block NegativeInventory’ and ‘Block Release from Minimum Level’. The option for partial delivery in the DocumentGeneration Wizard is available beginning in 8.8.

Note that the wizard does not handle customers defined as multi-currency.

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Using sales analyses, you can quickly identify weak points in your sales and product portfolio. Youcan then use this information to optimize your sales processes.

The Customer Receivables Aging report contains information about the number of open receivables fora customer, as well as how old the receivable is. It analyzes receivables owed to you by yourcustomers.

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For the Open Items List choose Sales - A/R Sales Reports Open Items List

This report allows the user to view open sales and purchasing documents. Using this report gives youan accurate picture regarding the status of documents in the system, only documents with status Openappears in this report. Documents that were partially copied to target documents also appear in thisreport. You can also display the documents from the report.

This window displays the open sales or purchasing document according to the user’s choice.

Choose from the drop down menu the required document (for example, open orders, open deliveries,…) to display. If you choose, for example, the option Open Sales Quotations, the table below thisfield updates and displays all the open sales quotations recorded in SAP Business One.

After you close this window, the last open document choice is saved, and next time you open thewindow it will appear by default.

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Definition: If a delivery is damaged or of poor quality, the customer returns it to you. A Return allowsyou to reverse a delivery, either partially or fully. When you create the Return with reference to thedelivery note, the system corrects the stock postings in the delivery note.

Why use a Return: For legal reasons, you cannot change or delete deliveries and customer invoicesthat have already been entered in the system. To correct these, you need to use a clearing documentsuch as a Return or an A/R credit memo document.

Prerequisite: If a delivery is returned before you create the A/R invoice for the customer, you can postthe return delivery in the system. If an A/R invoice exists, you cannot use a return.

How to create returns: Open the original delivery and choose Copy to. The other option is to use themenu path Sales – A/R Return and use Copy from to choose items from the delivery.

Effect on inventory and accounting: When you add a returns document, the system creates a journalentry that posts the value of the returned goods to the debit side of a sales returns account and to thecredit side of the cost account. The value of the returned goods is not posted back to the original stockaccount in order to keep it separate from the value of the undamaged goods. The sales returns accountand the cost account are retrieved from the Sales Returns field and the Cost Account field on theInventory tab of the item master record.

Note: If you also want to manage the inventory of the damaged goods separately from theundamaged goods, you should define a special warehouse for the damaged goods and enter thiswarehouse in the return document.

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Definition: An A/R credit memo (credit note) reverses either partially or fully the journal entry createdby an A/R invoice. An A/R credit memo can also be created with reference to a Returns document.

Effects on inventory and accounting: When you create an A/R credit memo with reference to theA/R invoice, the system corrects both the quantities and values in the A/R invoice.

The system increases the stocks of the credited items.

The system credits the credit memo value to the customer's account in the general ledger andcorrects the revenue by the same amount

Creating a credit memo without reference: When a customer returns items that do not refer to aspecific delivery, you can post this quantity directly to the warehouse without referencing a precedingdocument. The stock and stock value increase as a result.

Creating a credit memo with reference to a Returns document: An A/R credit memo withreference to the returns delivery ensures that system credits the values to the customer. This might beused if the customer returns items and is later invoiced for the returned items. The credit memo canreverse the invoiced amount, but since it is referencing a Return, it will not adjust the inventoryamount.

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As of 8.8, SAP Business One allows negative rows on several marketing documents. This allows youto give credits directly on a sales order, delivery or invoice.

The sales documents enabled for negative rows are: A/R Invoice, A/R credit memo, Delivery andReturns.

Negative rows can also be added to marketing documents in the procurement process. The purchasingdocuments enabled for negative rows are: A/P invoice, A/P credit memo, Goods Receipt PO andGoods Returns.

In most countries, these documents can also have a negative total. However, negative totals are notallowed in Mexico, Chile, Cost Rica, Guatemala, Israel and Cyprus.

Remember that a positive total on a credit memo indicates a credit; therefore a negative amount on anA/R credit memo will indicate that the customer owes us.

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Questions on Sales-A/R Concepts

Review Questions

1. What are the main documents used in the sales process?2. What master data must be entered into every sales document?3. Which document in the sales process is the only mandatory document and why?4. What are the differences between a lead and a customer?5. What is the main purpose of a sales order? How does it affect inventory reporting?6. How does a price list get assigned to a sales order?7. Which options are available in Item Availability checks?8. What is the main purpose of the Delivery? How does it affect inventory and accounting?9. What is the main purpose of the A/R Invoice? How does it affect inventory and

accounting?10. Name two useful reports for sales. What are the advantages of each?11. What is the document generation wizard and how is it used?12. What is the purpose of the A/R Invoice + Payment document?13. What documents are used to correct issues in the sales process?14. How do you decide between these documents?15. What are some uses for using negative rows in an invoice?

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“Extend your knowledge” discussion questions:

1. How would handle a request from a customer to deliver items to a different location thanthe one associated with their business partner master?

2. What are some methods you can use to consolidate deliveries for a customer?3. What are possible options to correct a situation where someone enters an A/R invoice for

the wrong delivery?4. What is the best way to deal with a situation where your customer returns items even

though they have already paid you for those items?5. If you create an invoice with both positive and negative rows and then discover you have

made an error, which document would be used to correct the error?6. You are consulting for a business who sells home blood sugar testing kits in drugstores.

Most of their customers are large pharmacies which are set up as business partners.However, sometimes the end customers have a test result that causes them to send theresults back to the vendor for further analysis. In those cases, this customer will only dealwith them once and there is limited or no cost involved. What documents and masterdata should they use for this type of customer?

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Goods receipts are used to enter items into a warehouse. Additionally, some marketing documents inlogistics can be used to receive items into the warehouse, such as the Goods Receipt PO in purchasingor the Return document in sales.

Inventory transfers are used to move items between warehouses.

Goods issues are used to move items out of warehouses. Additionally, some marketing documents inlogistics can also issue items out of the warehouse such as a delivery notes in sales, or goods returndocument in purchasing.

Inventory Goods Issue and Goods Receipt documents are typically used when there is no sales orpurchasing process involved in the goods movement, for example, receiving samples or scrappingdamaged goods.

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The pick and pack process is an optional step in the sales cycle.

If a company manages a large warehouse, and has dedicated personnel to collect the items, pack andship them, then the pick and pack manager can be helpful.

The pick and pack manager scans open sales orders and reserve invoices by requested delivery dateand priority. It also presents the available quantities ready to be picked and shipped.

Once you have created a new sales order with an approved status, you may use the pick and packmanager, accessed through the inventory module, to handle your picking activities.

The process starts with the creation of a pick list, moves to the reporting of picked quantities, andterminates with packaging and delivery.

The pick and pack manager allows you to release some or all items to a pick list, perform a partial pickfor the items, or pick all items. You can also create a delivery note at any stage of the picking process.

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Material requirements planning (MRP) is, in the most generic sense, a set of planning techniques thatextract demands, match supplies, to calculate material requirements for made or bought items.

MRP calculations consider bill-of-materials data, inventory data, and supply inputs from scheduledproduction and purchase orders, as well as demand inputs from actual and forecasted orders.

MRP Process Steps include:

Define the planning data to be used in MRP. One key piece of planning data is your forecast.

Run the MRP Wizard.

After MRP runs, the system gives you recommendations for production order or purchase orders tofulfill your requirements. Review the order recommendations resulting from the MRP run.

From there, you create either production orders or purchase orders as needed.

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In SAP Business One, there is a direct relationship between warehouses and items. ChooseAdministration Setup Inventory Warehouses to define new warehouses. Here, you can enter aWarehouse code and a Warehouse name.Address Fields: Specifies address details for the warehouse. This address defaults into the purchasingdocument for the ship-to address for the warehouse.Location: Specifies the warehouse location. Use this field to classify warehouses according to theirphysical location.Drop Ship: Defines the warehouse as a drop-ship warehouse. Use this option when the company doesnot manage inventory for specific items, but receives commission for every order. SAP Business Onewill not calculate stock postings for this warehouse.In the Accounting tab, you define various default accounts used for inventory management perwarehouse.To define a warehouse as a default in the MRP wizard, select the Nettable checkbox. If unchecked, thewarehouse can still be chosen in MRP, but does not appear as default.

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SAP Business One enables you to manage all the items that you purchase, manufacture, sell, or keep instock. Services, such as labor, can also be defined as items. This can be useful for defined services yousell on a regular basis. Items can also be used to describe fixed assets that are tracked for accountingpurposes.

Item data includes how the item may be purchased or sold, the price of the item, the inventory level,and how purchasing of the item is forecast and planned. Some items may be fixed assets that aretracked for accounting purposes.

For each item, enter the data relevant for a particular area in the system. This data is used automaticallyby the system for purchasing, sales, production, managing your warehouse, and accounting.

SAP Business One, therefore, provides optimum support for your business processes. In Sales, it helpsyou create orders, delivery notes, and outgoing invoices because prices, sales units and gross profitcalculate automatically. Using the item data in the system, you can optimize your stock. You havecomplete control over stock quantities at all times and can also analyze the financial aspects ofstockholding at the same time. The system allows you to control production based on the items that areused for production and based on the finished product and any by-products created.

One important rule applies to all master data. If a master data record is involved in an accounting orinventory transaction (such as an A/P invoice, A/R Invoice, Journal Entry and so on), it cannot bedeleted. However, items can be marked as inactive if you do not want them to be available for use inmarketing documents.

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The header of the item master data record contains general information about the item, including aunique ID number assigned by the user, a description (including a description in a foreign language),and settings to determine the type of the item, the group it belongs to, the price, and the applicableprice list. Checkboxes on the right indicate whether the item is kept in inventory, and if it is offered forsale or purchase (in many cases both apply). There is also a checkbox for fixed assets.

General tab of the Item Master Data window has a mix of information about the manufacturer of theitem, additional identifiers, shipping methods, and issue method.

Purchasing Data tab indicates the preferred vendor who sells the item, how to identify the item in acatalog, the units of measurement used for the item for purchasing purposes, and the actual size of theitem. For items with a purchasing history, you can click on the chart icon on the lower left of the tab todisplay a graphical purchase analysis.

Sales Data tab contains similar fields to ones in the Purchasing Data tab such as units of measurement,packaging, and other parameters that determine how the item is handled. It also offers a graphical viewof sales data for the item when you click on the chart icon in the lower left of the tab.

Inventory Data tab tracks quantities in warehouses and sets inventory and management parameters,such as the valuation method, the G/L account determination method, the indication whether itemquantities are managed separately by each warehouse or at the item level, and the actual inventoryquantities for the item in each warehouse.

Planning Data tab contains settings that control how the planning for purchasing or producing an itemtakes place. The order interval, order multiple, and minimum order quantity can be set here, as well asthe required lead time in days. These settings are used by the MRP module.

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Several important settings for inventory are managed and displayed on the Inventory Data tab:

Valuation method. The default is retrieved from the selected item group. When the item is first setup, you can choose a different valuation method, such as Standard, Moving Average or FIFO.

G/L Accounts. Based on the system initialization, the default G/L account determination method isdisplayed, you can modify it at any time to a different method. (By Group, Warehouse or Itemlevel).

On the Inventory Data tab of the item master data the system displays per warehouse:

The quantity in stock

The committed quantity (quantity ordered by customers)

The ordered quantity (quantity ordered by your company but not yet delivered)

The available quantity (calculated as In Stock - Committed + Ordered quantity)

You can define whether a specific item should have inventory managed on the warehouse level oracross all warehouses. Based on this checkbox, the maximum, minimum and required quantity fieldsappear either in the warehouse table below, or set at the item level.

Option 1: If you decide to manage the inventory by warehouse, the system lets you enter theminimum stock level, the maximum stock level, and the required stock level for every warehouse.Choose this option by flagging the Manage Inventory by Warehouse checkbox.

Option 2: If you decide to manage the inventory at the company level, leave the ManageInventory by Warehouse checkbox deselected for the item. Then you can enter a maximum stocklevel, a minimum stock level and a required stock level across all warehouses.

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Different units of measure can be used in purchasing, sales and warehouse documents.

Define a standard unit of measure for sales and a different standard unit of measure for purchasinginside the item master record.

A unit of measure has two parts: a text field and items per unit

Beginning with the 8.8 release, the standard units of measure can be changed even when transactionsexist.

You can overwrite the unit of measure in marketing documents as needed.

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Item groupings allow you to combine or classify your item master records in the system.

You can group your products by Item Group (General Area) and by Manufacturer (General tab).Item groups also allow you set defaults for important fields in the item master. This allows you togroup items by how they are used in your system.

For example, for a group called raw materials, you could set the valuation method as “standard cost”and set the procurement method default to “buy”. This would make it easier for users correctlycreate new items that belong to this group. This is especially useful because the valuation methodfor an item is fixed once an inventory quantity is received for that item.

You can also set inventory G/L accounts to be determined at the item level.

You can assign each item to one item group and / or one manufacturer (General tab). You can use itemgroupings for reports and analyses to filter the item master records in an item grouping.

If the item grouping is not sufficient to filter your data, you can also use the Properties or user-definedfields.

You can define the item groups and properties in the Administration. For the item groups you candefine some default values: choose Administration Setup Inventory Item Groups / ItemProperties.

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In the item master record, you can specify the inventory valuation method in which you want tomanage the item. You have three options:

Moving Average priceThe system calculates the moving average price by dividing the total value of the goods by theamount in stock.

First In - First Out (FIFO)The system stores each good receipt in the inventory in a separate layer. When you post any goodissue, the system uses the price from the oldest layer, from the second-oldest, and so on.

Standard PriceWhen you select this option, you also need to enter a fixed price into the item master record. Thesystem uses this price for all stock movements. This especially makes sense for items which youproduced yourself.

The default setting for inventory valuation method is made at the item group level. The default can bechanged at the item level.

If you do not work with the perpetual inventory system, you can use the Inventory ValuationSimulation Report to valuate the entire warehouse inventory of all items on a key date. You willnormally valuate the warehouse inventory on the balance sheet key date. This report is intended as amanagerial report to check what-if scenarios. For instance, you can see what happens if you value anitem based on a different calculation method. Possible Calculation Methods: Moving Average, FIFO,By Price List, Last Revaluation Price.

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On the Inventory tab of the item master record, you specify the G/L account determination. Accountsare defined in a matrix per item and per warehouse. You can set one of the warehouses as defaultwarehouse. The system will use the default warehouse when you create a document unless you specifyotherwise. If you did not set a default, the system uses the first warehouse as default.

You define default accounts under Administration Setup Financials G/L AccountDetermination. These values are defaulted for all levels (warehouse level, item group level, and itemlevel).

You can specify different accounts on item level and enter them directly into the item master record.Choose Inventory Item Master Data and choose the Inventory tab. This enables detailed accountdetermination but also involves much maintenance work. To simplify the account determination, inevery item master record you can specify that the accounts are retrieved from a higher level:

Warehouse level: In this case the system automatically retrieves the accounts from the warehousedefinition. To maintain the accounts in the warehouse definition, choose Administration SetupInventory Warehouses and choose the Accounting tab.

Item group level: In this case the system automatically retrieves the accounts from the item groupdefinition. To maintain the accounts in the item group definition, choose Administration Setup

Inventory Item Groups and choose the Accounting tab.

You influence accounting and financial reporting by choosing the appropriate level at which tomaintain accounts for perpetual inventory. The perpetual inventory is then managed at that levelautomatically by the system whenever you enter a transaction that would affect stock levels.

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Batches are used to track groups of items with characteristics in common. These characteristics mightbe attributes you define such as a shade of color, granularity or PH balance. The characteristics couldbe dates, such as expiration dates, manufacturing date, or the date the items were received intoinventory.

Serial numbers can help you track items down to the level of each individual object in your warehouse,so you know exactly which one was sold to a customer.

The typical criteria for determining if an item needs a serial number are:

Is the item a high value item?

Should the item be tracked for security or repair reasons?

Serial numbers are also important in Service. A serialized item can be set up to automatically create acustomer equipment card and a service contract when the item is delivered to a customer. Thecustomer equipment card is used to store service information, such as valid service contracts, anyservice calls, and inventory transactions for the item.

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You have the option to set the serial numbers or batch numbers to be assigned on every transaction orto be assigned when the item is first released from inventory.

If you choose to assign a serial number on release only, you might manufacture the item and issue itinto inventory without a serial number. When the item is picked for delivery, you assign the serialnumber in the delivery document. This gives you the flexibility to not worry about serial numbersfor warehouse functions.

On the other hand, if you choose “on every transaction” then the item will be assigned a serialnumber at the point it is bought or manufactured.

Release documents include: Goods issue, delivery, A/R invoice, A/R invoice + payment, A/P goodsreturn, A/P credit memo, inventory transfer (out of warehouse), inventory tracking with a negativedifference, negative initial quantities, and goods issue for production.

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There are several configuration settings used to set defaults for master data.

In Administration System Initialization General Settings Inventory tab Items subtab: youcan define defaults and settings such as management methods for serial and batch numbers, defaultwarehouses for items, and G/L methods for setting up new item groups.

In Administration Setup Inventory: you can set defaults and settings for predefined values suchas item groups, item properties, warehouses, units of measurement, customs groups, and shippingtypes.

In Administration System Initialization Company Details on the Basic Initialization tab use theManage Item Cost per Warehouse checkbox to define whether the system calculates one inventory costfor all warehouses or a separate inventory cost per warehouse.

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This graphic shows an overview over the different possibilities of stock movements.

When an item is purchased or sold, warehouse inventory is automatically reduced or increased whenthe transactions are entered in purchasing and sales. For example, if a delivery note is created based ona sales order for a customer, the warehouse stock is reduced by the delivery quantity when the deliverynote is added. If an incoming invoice is entered in purchasing, the warehouse stock increases by thedelivery quantity when the incoming invoice is added.

The purchase or sale of an item is, however, not the only transactions that result in a goods receipt orgoods issue.

For example, if five pieces of an item are found damaged in the warehouse as a result of waterdamage, rendering them useless, they are removed from the warehouse. These items cannot,however, be sold because they are now useless. In this case, you have to post a separate goods issuewith the function described here.

A goods receipt may be necessary, for example, if, after carrying out a physical inventory, youestablish that you have not considered part of the quantity stored. You enter the forgotten quantity bymeans of a goods receipt in the system.

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General Information 1:

Price List: The system displays the Last Purchase Price list by default. You can choose a differentprice list, if necessary.

Table Window:

Price: The price of the item is copied automatically by the system from the price list on the basis ofthe price list selected in the upper part of the window. You can change the price manually here.

Total: The system calculates the total amount for an item and the total document from the specifiedprice and the quantity of goods received. The document displays in the column below even if not allof the rows of the goods receipt are visible because the list is too long to fit into the window.

Inventory Offset – Decrease / Increase: The system automatically determines the correct revenueaccount for goods receipt and the correct expense account for goods issue: Administration Setup

Financials G/L Account Determination (Inventory tab).General Information 2:

Remarks: You can enter your own text to describe the goods receipt in this field.

Journal Remark: In this field, you can enter your own text to describe the goods receipt. This text iscopied into the Remarks field of a journal entry when the goods receipt is posted.

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For goods receipts and goods issues that do not refer to a sales process or purchasing process, you mustspecify the warehouse to which or from which you want to post the goods. The system always uses thedefault warehouse from the item master record if you do not specify otherwise.

To post a goods receipt, choose Inventory Inventory Transactions Goods Receipt.To post a goods issue, choose Inventory Inventory Transactions Goods Issue.

You can enter the Inventory Offset - Increase account (for goods receipts) or the Inventory Offset -Decrease account (for goods issues) directly in the document. The system defaults the account shownon the item master record. (This account can be set at warehouse, item group or item level.)

A goods receipt creates a journal entry that posts the value of the received goods on the debit side ofthe stock account and the credit side of the inventory offset – increase account.

A goods issue creates a journal entry that posts the value of the issued goods on the debit side of theinventory offset – decrease account and the credit side of the stock account.

The stock accounts are retrieved from the Inventory Account fields on the Inventory Data tab of theitem master record.

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When you post an inventory transfer from warehouse 02 to warehouse 01, the system creates aninventory transfer document and a journal entry. The journal entry posts the value of the transferredgoods on the debit side of the stock account of warehouse 01 and on the credit side of the inventoryaccount of warehouse 02. The inventory accounts are retrieved from the Inventory Account fields onthe Inventory Data tab of the item master record.

To post a stock transfer, choose Inventory Inventory Transactions Inventory Transfer.

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There are a number of useful warehouse reports. Choose Inventory Inventory Reports

The Items List is an overview of all (or selected items) with relevant prices according to price listsstore in the system.

The Inventory Posting List provides an overview of all postings in the system. You can use selectioncriteria such as: items, business partners, warehouse and sales employees.

The inventory status provides an overview of the current stock situation and information on plannedreceipts and withdrawals. This information is now also accessible from within documents in theavailable to promise report.

The inventory in warehouse report lists the current inventory by warehouse based on all the documentsused in Logistics to receive and issue stock. You can view in stock, committed, ordered, and availablequantities. The information from this report can then be used to determine whether there is a need tomove items between warehouses, for example, to supplement a warehouse with lower stock totals.There are two versions of the report: normal or detailed.

With the Inventory Audit Report, the user will be able to compare between accounting view (inventorybalance accounts) and logistics view (inventory value displayed by the audit report) and haveexplanation of the value changes in inventory accounts. This report provides an audit trail for theposted inventory transactions in the chart of accounts.

The Inventory Valuation Simulation Report is intended to be used by management to check what-ifscenarios. The report allows you valuate the entire warehouse inventory of items on a given reportingdate. You would normally valuate the warehouse inventory on the balance sheet reporting date. Forcompanies using non-perpetual inventory, the report is named Inventory Valuation Report.

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Choose Inventory Pick and Pack Pick Pack Manager

1) Status Open: This window displays all the items that are still open. They have not been released,picked or delivered yet. In this window you select the orders and quantities to be released.

Quantity To Release = In Stock – Released – Picked2) Status Released: This window displays all the pick lists in status released.

You can display the data in two views – Detailed and Summary.

Quantity Available to Pick = In Stock – Picked

3) To get the pick list, click in the list of the released orders into the orange arrow link next to the pick no.or choose Inventory Pick and Pack Pick List . Enter the picked quantity.

4) Status Picked: This window displays the items that are already picked but are not delivered yet.

5) In the list of the picked items choose the Deliver button to create the deliveries. You can create thedeliveries also from the open or released list.

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In SAP Business One, the delivery or A/R invoice may serve as the pack document.

1) In the delivery choose Goto Packaging or right mouse click to get to the Packages - Setup window.

2) Existing Packages: Enter the packages that you want to use for packing the items of the delivery.

You can define Package Types in Administration Setup Inventory Package Types.Available Items: Lists items and quantities that you can pack into the packages.

3) Select the items and enter the quantities that you want to assign to the package selected in the ExistingPackages list above.

Package Contents: Shows the content of the package that is selected in the Existing Packages listabove.

The package list is also printed when a delivery note is printed.

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The Response to Release of Inventory Below the Minimum Level setting can affect what happenswhen you use Pick and Pack Manager. This setting controls what occurs when the inventory level fallsbelow this minimum quantity as the result of a sales document or goods issue.

The available options are:

Without Warning — select to avoid any notification from SAP Business One.

Warning Only — select to receive a warning message. In this case the user can choose whether tocontinue (and fall below minimum level), or to make the required adjustments first, such as issue onlypartial quantity, search for alternative items, and so on.

Block Release — select to receive an error message that prevents the user from completing thedocument and falling below the minimum level defined for the item.

Your selection applies on the following scenarios:

When creating delivery (also when created from Pick List window or from Pick and Pack Managerwindow).

When releasing items to pick list from the Open drawer in the Pick and Pack Manager window.

When updating the Released quantity in the Released drawer of the Pick and Pack Managerwindow.

To define package types for packing, use the path: Administration Setup Inventory PackageTypes.

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Using the different pricing options in SAP Business One, you can set predefined prices for selling andbuying items. Typically, a business will choose only those options that make sense for how they priceitems. For example: If a company sells smaller items to other businesses, they are more likely to usevolume discounts. A company selling higher priced items may focus on special prices created forparticular business partners.

Prices are assigned to price lists and to specific business partners.

For price lists, you define discounts based on percentages or quantities. For example, if all your largeaccounts have discounted prices since they purchase in larger volumes, you can create a relationshipbetween pricing levels that updates automatically.

On top of the basic price list functionality, you can add discounts based on item group, properties, andmanufacturer.

You can use special prices to define detailed pricing and discount structures for a business partner. Youcan base your discounts on any price list, or simply enter them manually. Special prices override allother prices.

When the system searches for a price, it first looks at special prices. If no special price, it looks fordiscount groups. If no discount group, it looks for period and volume discounts. If no period andvolume discount, it uses the basic price list assigned to the business partner.

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Every item is linked to every price list in the item master record.

To enter prices in the price lists:

Choose Inventory Price Lists Price Lists and select a row.

Selecting a row, opens a price list where you can maintain prices for the items.

SAP Business One also provides the convenience of entering an item price for each pricelist directly inthe item master record itself. The price information is available for viewing and updating, however,prices are not stored in the table OITM.

Maintaining multiple price lists for items provides you with the flexibility to offer customized prices toyour customers.

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Prices are defined for items in price lists.

A price list is assigned to a business partner.

In the document, the system proposes the price defined in the price list. You can see the Price List inthe Form Settings of the document.

When you prepare to use SAP Business One, you need to enter the data for the business partners andpayment terms as well as the price lists for customers and vendors. All of this data will then be revisedand modified over the course of time with the result that the price information used in Purchasing andSales is always up to date.

Every company is created with 10 default price lists. Different price lists are required for the items inthe system in order to take account of the following. You want to offer customers that make regularpurchases from you or who purchase large quantities a lower price than customers who only makeoccasional purchases or purchase small quantities of an item. Pricing could also be based on the size ofa customer.

You can make transaction-based manual changes to a price when you purchase or sell an item.

Note: It is recommended to assign each price list to an authorization group. Use the GeneralAuthorization to define which users can access which group. You can also prevent some users frommodifying the price that appears by default in your sales and purchasing document. Set the ChangeRow Amount to No Authorization, in the sales module.

Two of the default price lists are maintained by the system and cannot be maintained by users: LastEvaluated Price and Last Purchase Price.

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To maintain prices in the price lists choose Inventory Price Lists Price Lists and select a rowrepresenting a price list.

You can use selection criteria to choose pricing master data to maintain. You can select by a range ofvendors, a range of items, an item group or item properties.

A Base Price List is an existing price list which contains prices to be used as a base to calculate newprices in the selected price list.

The Factor field indicates the number by which each price in the base price list is to be multiplied tocalculate prices in the selected price list.

The following rounding methods are supported for prices that are calculated automatically:

Rounding to the full amount – rounds to the nearest whole number. (13.78 rounds up to 14)

Rounding to the full decimal amount – rounds decimals to nearest tenth (13.78 rounds to 13.80)

Rounding to full 10th amount – rounds to nearest whole number divisible by ten. (13.78 roundsdown to 10)

Using the group entry, you can assign user-specific authorizations for maintaining the prices in eachprice list.

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The system automatically sets the manual indicator as soon as you manually enter a price in the itemmaster record or price list maintenance window.

Make sure that you manually deactivate this indicator to include the items in the automatic updateagain.

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With this transaction, the system does not update the prices you have entered manually.

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Last Purchase Price is automatically updated when an item enters inventory with its original price

If none of these transactions listed in the graphic have been performed in the system for an item, theLast Purchase Price price list will not contain the item.

You can refer other price lists to the Last Purchase Price price list with a defined factor. You cannot,however, change the prices in the Last Purchase Price price list manually.

Another price list which is automatically updated and cannot be manually maintained is the LastEvaluated Price price list. Last Evaluated Price is automatically updated whenever the InventoryValuation Simulation Report is run. (This report is also known as the Inventory Valuation Report forcompanies using non-perpetual inventory.)

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You can use this function to define special prices for price lists. A special price can apply to a definedperiod or to a quantity scale.

In SAP Business One, time-based discounts are defined in the window “price list item details byperiod” and volume discounts are defined in hierarchies for those validity periods.

Add new items to the list by choosing Inventory Price Lists Period and Volume DiscountsYou can copy the contents.

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You can define discount groups for a business partner. These discounts are defined by an item group,a combination of item group properties or an item manufacturer.

When you use discount groups at the item properties level, SAP Business One allows you to define adiscount for several properties. You can use a rule to decide which discount is used by the system forthe calculation:

The highest discount -The property with the highest discount will determine the overall discountcalculated for the item.

The lowest discount -The property with the lowest discount will determine the overall discountcalculated for the item.

The average discount -The system calculates the average of all the discounts for the properties. Theaverage is used as the discount.

Discount totals - The system adds together all discounts of the properties that apply to the item. Thetotal (up to 100%) is used as the discount.

To define discount groups you choose Inventory Price Lists Special Prices Discount Groups

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Special prices enable you to give a discount or surcharge for a specific business partner. ChooseInventory Price Lists Special Prices Special Prices for Business Partners.With special prices you also have the possibility to assign a different pricelist for selected items to abusiness partner.

You can copy special prices to other business partners using Inventory Price Lists SpecialPrices Copy Special Prices to Selection Criteria.For copying special prices from one business partner to other ones the following copy rules exist:

Replace All Items:The system copies all the special prices and possibly overwrites existing ones.

Replace Only Existing Items:The system overwrites all the special prices that exist in the source business partner (BP) and targetBP records. It does not add any new special prices.

Do Not Replace Items:The system adds new special prices, but does not change existing ones.

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Use this function to update all of the special prices in SAP Business One.

Choose Inventory Price Lists Special Prices Update Special Prices GloballyChanges to a discount lead to an absolute change in the discount rate defined in the special price.Example: A special price of 10 percent has been defined for a specific business partner item. Anincrease of 5 percent results in a discount of 15 percent.

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Since you can define several prices in the system for the same item, the system needs to use a certainlogic to find the valid price, starting with the most specific price.

The system uses the above list of priorities to find the valid price. Once it has found the price, it entersthe result in the document.

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Material requirements planning (MRP) is, in the most generic sense, a set of planning techniques thatuse bill-of-materials data, inventory data, and supply inputs from scheduled production and purchaseorders, as well as demand inputs from actual and forecasted orders, to calculate material requirementsfor made or bought items.

After MRP runs, the system gives you recommendations for production order or purchase orders tofulfill your requirements.

MRP Process Steps include:

Define the planning data to be used in MRP. One key piece of planning data is your forecast.

Run the MRP Wizard.

Review the order recommendations resulting from the MRP run.

From there, you create either production orders or purchase orders as needed.

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The current state of inventory is modeled through the levels of items on hand in each warehouse,supplemented by the items that are already on the way through purchase orders or production orders.

The current state of demand is modeled through open sales orders, minimum inventory levels, openproduction orders, and forecasts. Entire categories of demand can be included or excluded. Forexample, an MRP run can be configured to look only at sales orders and ignore forecasts or,alternatively, to have actual orders consume forecasted quantities to avoid inflating inventory.

The result of an MRP run is a suggested set of purchase orders or production orders. Thesesuggested purchase and production orders can be converted easily to actual orders. If enough materialsare not going to be on hand in time, the MRP run signals when a required quantity will not meet its duedate based on its lead time. The recommendation report highlights recommended purchases orproduction orders that are past due. The MRP run does not suggest whether it would be better to delaythe date at which the sales orders will be delivered or to attempt to rush the arrival of the needed items.

As materials move in and out of inventory and products are produced, the financial accounting of all ofthis happens automatically because of the way each item, purchase order, and production order arelinked automatically to the relevant accounts through the account determination recorded in the masterdata.

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MRP considers the existing stock, sales forecasts and the existing purchase and production orders.

The example in the graphic above:

Before MRP run, there are 20 pieces of a purchased item in stock. Additionally there will bereceipts for 30 pieces from an existing purchase order. The requirements are 40 pieces, which will beneeded for an existing sales order. It is planned from the sales forecasts that 50 pieces and at a latertime 30 pieces will be needed.

After MRP run, recommendations for purchase orders have been generated to fulfill therequirements. MRP considered the existing stock, existing purchase orders, production orders, andsales forecasts.

In the item master record you use the Procurement Method field on the Planning Data tab to definewhether an item is a produced item (Make) or a purchased item (Buy).

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Three kinds of master data represent the core of the MRP process: the bill of materials specifies theitems used to produce a manufactured item, the item data specifies the lead time that it takes to acquireeach item, and the inventory data represents how much of each item is on hand. In addition, MRP usesforecasts as an additional source for the requirements.

Bill of Materials - The bill of materials lists all items used as inputs to a production process. Items inbills of materials can refer to items that are purchased or made. Made items must have their own bill ofmaterials, which may include other made items, and so on. An MRP run starts with the products in allof the open sales orders, production orders, forecasts, and minimum inventory levels and then traversesthe relevant bills of materials to see if all required items will be available when needed.

Item Master Data – The Lead Time field on the Planning Data tab of the Item Master Data windowis one of the most important fields to specify correctly because the accuracy and usefulness of the MRPrun is governed by this data. Lead time indicates how long it takes for a purchased item to arrive afterit is ordered. For manufactured items, lead time indicates how long it takes to manufacture an item.

Inventory Data – represents how much inventory is currently on hand.

Forecasts – SAP Business One uses the forecasts information in the MRP run as an additional sourcefor the requirements.

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In the Item Master Record there are several fields with MRP-related data on the Planning Data tab:

Planning MethodMRP: to plan the item procurement with the MRP system.None: the item procurement is not planned and no production order and purchase orderrecommendations are created for the item.

Procurement MethodMake: to generate production order recommendations for the item.Buy: to generate purchase order recommendations for the item.

Order Interval: Choose one of the values to define time intervals between different orders. You canalso choose Define New to open Define Order Intervals and to enter a name and frequency for theinterval.

Order Multiple: Enter the numeric value to define the size of the lots for the MRP. For example, ifthe value is 12, order the item in multiple of 12. So if you need 20 items and the value is 12, youhave to order 24 items.

Minimum Order Quantity: Enter the value to define the minimum lot size.

Lead Time: Enter the number of days to calculate the duration of time to produce or receive aproduct.

You can also define the planning data in the Item group (Administration Setup InventoryItem Groups). This information copies automatically to the item master data by default.

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You maintain the Lead Time in the item master record on the Planning data tab. This is the number ofdays to calculate how long it takes to produce an item.

In this graphic, it takes 10 days to produce the printer. The lead time is 10 days. That means, that thememory boards, the printer head and the power pack have to be available 10 working days before theprinter is due.

There is a sales order with the delivery date: 30.11.. The MRP planning is scheduling backward from30.11. on, considering the weekend with non working days. This results in MRP requirements for thecomponents of the printer (the boards, printer head and power pack). There are recommendations forpurchase orders, so that they get purchased and will be available by 16.11..

You can choose in the MRP scenario details, if the non working days should be considered:

Field: Consider Holiday Table for Production Planning:Select to define whether to consider holidays and weekends for production purposes. The holidaysare defined in the Holidays Details window under Administration System InitializationCompany Details. The number of holidays and weekends increases the lead time interval for theMRP calculations

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A production bill of materials represents an item to be produced. The sub-items in the bill of materialsare items that will be needed to produce the top-level item. The sub-items can either be items that arepurchased or made. These are typically physical items that are stored in inventory.

However, a labor item can be added to a bill of materials to represent labor in the production process.Some MRP applications have what is called a “routing,” which is a description of the path items takethrough labor and production processes as they are being manufactured. SAP Business One has asimplified MRP process that does not model production capacity. Labor costs, however, can beaccounted for. To get the total cost of producing an item, you must enter a special item used torepresent labor costs, in addition to entering all of the items in the bill of materials.

A bill of materials can contain items that are bills of materials.

One of the core features of the MRP functionality of SAP Business One is the way that it analyzes amultilevel bill of materials, in which one bill of materials refers to another bill of materials that couldrefer to still more. The challenge is to make sure that every item needed is available soon enough sothat the components can be made far enough in advance to meet the schedule for the highest level itemthat includes them. With complex products, bills of materials can cascade for several levels.

When you run MRP, the system generates requirements for the highest Bill of Material levelsaccording to sales orders and forecast demands. Furthermore, it calculates requirements of the lowerBill of Material levels according to demands through the Bill of Material "explosion.“

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You create forecasts to plan purchase and production in advance, even before you receive actual salesorders. You may receive sales orders in short notice, however the lead time to manufacture the productis long in most cases. Therefore, you produce the product for the forecast and when the actual salesorders arrive, you are able to supply the goods even in short notice.

You can also define in the General Settings that sales forecasts are consumed by actual sales orders.Administration System Initialization General Settings Inventory PlanningYou maintain the forecasts per item.

Enter the Start and End date to define the forecast horizon. The current date displays by default. Youcan update the field after you save the forecast.

You manage forecasts on daily, weekly, or monthly basis. When you create a new forecast, select theappropriate view. You cannot change the view once you have saved the forecast.

In addition, you can create several forecasts. However, you select only one forecast for each MRPscenario.

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MRP analysis looks backward from the due date of an order, starting with the lead time for the items ina sales order, and then cascading all of the other lead times in bills of materials for components todetermine whether all materials can be obtained on time. MRP analysis also reaches forward andreduces forecasted quantities so that inventory does not unintentionally get too high. This is calledconsuming forecasts.

Excess inventory sometimes builds up after companies prepare annual, quarterly, and monthlyforecasts for the number of units they plan to ship in order to avoid stock shortages and maintain on-time deliveries. If a company plans production based on forecasted quantities and then adds actualordered quantities to the forecasts, production may exceed actual needs and inventory may be inflated.To avoid this situation, SAP Business One can reduce forecasted quantities by actual order quantities.As a result, only the net forecast quantity (forecast minus ordered quantity) will be added to the MRPrun.

This capability of the MRP functionality of SAP Business One is important because forecasts areconsidered sources of demand for MRP. This means that if you make a forecast that orders for 50 unitswill come in during a certain period, MRP treats that forecast as actual orders and generates productionorders so that the items are ready when needed. Continuing with this example, assume that an actualorder for 10 units comes in. Now, MRP will adjust the forecast downward by the 10 units ordered toavoid a buildup of excess inventory.

You can set the default for whether sales orders are consumed by forecasts in the General Settings, butit can be changed at the row level of a sales order.

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MRP defaults for consuming sales orders are set in the General Settings, Inventory tab.

Set the default for whether sales orders are consumed in the forecast.

Consumption Method allows you to choose between methods: Backward-Forward and Forward-Backward. These methods determine in which order the system searches for existing forecastscloses to the sales order due date.

In the first method, backward-forward, the system searches previous periods of time up to the firstday of the required range (as defined in the Days Backward field). If no forecast is found (or theforecast is insufficient), the system then searches ahead started from the sales order due date.

The second method, forward-backward, begins with the sales order due date up to the last date ofthe required range (as defined in the Days Forward field.) If no forecast is found or is insufficient,then the system searches backward started from the sales order due date.

Days Forward and Days Backward specify the maximum number of days for the system to searchfor a forecast.

MRP Defaults for Item Groups are set in Administration Setup Inventory Item GroupsGeneral tabThese defaults can be overridden in the item master.

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To begin the process of an MRP run, you first select Main Menu MRP MRP Wizard. Thispresents a simple welcome window that leads to a list of existing scenarios. Each scenario defines thescope of the MRP run.

SAP Business One enables you to create a new MRP scenario or to choose an existing one. For a newscenario, enter its name and description. As for the existing one, select a scenario from the list.

The next window in the wizard is Scenario Details. In that window, you define the parameters for yourscenario, such as Planning Horizon and Item Details. You can choose Simulation if you only want tosimulate a MRP scenario. In this case you would not be able to save or release recommendations.Lastly, you choose your display preferences.

The planning horizon describes whether the report is run daily, weekly or at some other period. It alsospecifies how non-working days are handled.

For example, with our printers, we might specify a 30 day planning horizon that would analyze all thedemand for the period. Then the MRP run would calculate the production and purchase orders neededfor all items included in the bill of materials.

You can save the scenario and its details to use again.

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The Data Source window specifies the types of documents that are used to calculate demand forproducts. The data that you can enter as input for the data source for Material Requirements Planningin SAP Business One can come from:

Open purchase orders and AP reserve invoices as expected receipts.

Open sales orders and AR reserve invoices as requirements.

Defined forecasts as an additional requirement.

Inventory: existing stock per warehouse of an item and the minimum stock level in the item masterdata.

Open production orders for parent items as expected receipts.

Parent dependant requirements: these are requirements for child items of a parent item, which getcreated depending on the bill of material of a parent item.

Planning data: the data coming from the item master record, which is maintained on the planning tabof the item master record.

Bill of material: information about the parent item and the quantity of child items.

The data that you get as output from the Material Requirements Planning in SAP Business One arerecommendations for production orders and purchase orders, depending on the procurement methodmaintained in the item master record.

Tip: make sure that you choose only relevant warehouses in this step.

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The MRP results window represents a master schedule for the requirements.

The window displays a row for every item and for every date that is defined in the planning horizon.You can expand each item row into four rows. Each row contains the record that served for thecalculation of the quantities in the item row before and after you have applied MRP recommendations.These records are the initial stock in each period, stock receipts during each period, requirements forstock issues during each period, and final stock or net requirements in each period.

The data on the window is visualized: Pale gray or inactive cells define periods where no activity takesplace. Dark gray cells define dead periods, where if a requirement exists, its lead time is too long topermit timely procurement. The value in such cells appear in red and indicate that the item hasextended or extends its due date. It also gives an indication that the item needs to be expedited to makethat due date. Light yellow cells indicate an active period when either receipts, or gross requirementstake place.

To display Pegging Information, choose quantity either in the receipts row, or the gross requirementscomposing row.

In this window, you view the source of the receipts or the gross requirements for the selected periodor item. Each receipt or gross requirement displays on a separate line.

The source of the receipts is open purchase or production orders. The source of the grossrequirements is open production orders, sales orders, forecast, or MRP requirement.

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In the final step of the MRP process, you use the order recommendation report to create the newproduction and purchase orders needed to satisfy the demand for products. In this step, you bring allyour experience and knowledge to this process to supplement what SAP Business One has done.

You can take the following actions, among others:

Change the dates on production, purchase, or sales orders and inform suppliers or customers of thechanges.

Change quantities on purchase orders to take advantage of special offers or to round up or rounddown to lot sizes that may mean better prices.

Change the vendor for a purchase order.

Decide to make items rather than purchase them, or vice versa.

Shift inventory from one warehouse to another.

Change production schedules.

Delete recommendations.

You display the report in the following ways:

From MRP Wizard, choose GoTo Open Order RecommendationsChoose MRP Order Recommendations

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Another efficiency feature of the MRP functionality of SAP Business One is its ability to consolidatepurchase orders so that quantities are purchased in amounts that ensure the highest discounts.

For example, if a significant discount were available for memory boards when they are ordered in lotsof 100, the MRP functionality will consolidate any needed orders for any memory boards up to anorder amount of 100 to maximize the discount.

The terms that describe when purchase orders should be consolidated can be defined in MRP OrderRecommendations Form Settings Doc tab General tab Consolidate recommendations.

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Questions on Inventory Concepts

Review Questions

1. What are the main processes in Inventory?2. What steps do you need to take to set up inventory?3. What information do you find on the inventory data tab of an item master record?4. What are three valuation methods available? Which one are we using in this course?5. What are the three levels at which you can set up account determinations?6. What is the advantage of having batch numbers?7. What is the advantage of using serial numbers?8. Where do you set up batch numbering?9. Where do you set up serial numbers?10. Which documents in logistics are available to receive items into a warehouse (include

purchasing and sales documents as well as inventory documents)?11. Which documents in logistics are available to release items from a warehouse (include

purchasing and sales documents as well as inventory documents)?12. Which document is used to move items between warehouses?13. What are the main documents used in the warehouse management process?14. What master data must be entered into every warehouse management document?15. Name the main inventory reports. What are the advantages of each?16. What documents are used to correct issues in the inventory process?17. What type of price is maintained in a price list?18. Describe the four types of prices available in SAP Business One.19. In what order does the system search for a price in sales document?20. Where are purchasing prices maintained?21. Where are items linked to price lists?22. How are price lists maintained?23. How does the system choose a price list for a sales order?24. How does MRP work in general?25. How can you plan ahead for a production run, for instance if you know that you need a

certain number of an item produced before the holiday season begins?26. What requirements are considered in an MRP run?27. What are the receipts considered for an MRP run?28. How do you get output for an MRP run?

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“Extend your knowledge” discussion questions:

1. You are advising a business which does not stock its own inventory, but instead theirsuppliers send the products directly to the customer. How do you set up the warehousesfor this business?

2. ABC Company sells medical equipment. They often have inventory at the hospitals whoare their customers. ABC owns the inventory at the hospitals. The sale occurs when thehospital uses the inventory items. How do you set up these warehouses that are located atthe hospitals?

3. XYZ Company wants to keep separate inventory accounts and revenue accounts for theirdifferent lines of sports products. At what level would you advise them to set their G/Laccount determination for items?

4. You need to track expiration dates for dairy products you sell. How would you set up theitem master for the dairy products?

5. Someone from your marketing department is attending a trade show and would like tobring some products to demonstrate to potential customers. What goods movementwould you use to track that these items are at the trade show and not in the warehouse?

6. During picking, one of the warehouse staff dropped a carton of lightbulbs that were to beshipped to a customer. What document should be used to track the damage?

7. If you set your company to allow negative inventory, what effect do you think this willhave on pick lists?

8. Your business has a customer who should always receive 5% off the preferred customerprice list. What is the best way to set this up?

9. Your large company price list is currently set up to be 10% less than the small companyprice list. You have decided that you would like to change this to now be 12% less.What’s the easiest way to do this?

10. All the prices in your company will be going up by 2% on January 1. What’s the bestway to handle this?

11. You want to give a 4% discount for all IBM printers. What pricing option should you usefor this?

12. You have decided to give KLX Company an extra 2% discount on their five mostpurchased items during the next two months. During this period they will get a 3%discount if they purchase a quantity of 5 or more. What pricing option would you use toset this up?

13. You have built a forecast for the X-1111 item which predicts a need for 100 to beproduced each month. You have already received sales orders for this period. You donot want to count the sales orders towards the demand. How do you set MRP to ignorethe demand from the sales orders?

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The production order is the main document in the production process. It records the progress of theproduction process for each item produced.

The production order supports the planning and assembly of a production item. It also tracks all thematerial transactions and costs that are involved in the production process.

Production orders can come from recommendations in MRP or be created manually.

Before work can be done, they must be released. At this point, the production order can begincollecting the costs of production.

Components used in the production process can be issued manually as used or backflushed at the endof production.

When all work is done, you report completion of the production order. At this point, the finished itemsare received into the warehouse.

Then change the Status to Closed.

Even after the production order is closed, details on the production order costs can be found on thesummary.

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Production. This BOM is used in the production order. The parent item is a finished material, and thechildren are the components. You can add labor as one of the components; this will be a non-inventoryitem with a standard cost. During the production process, you turn the components into the finishedproduct. The Production BOM is the only type used in the MRP run and it is always used in standardproduction orders. The item at the head of the Production BOM has its own price.

Sales. This BOM is used in sales documents. The parent item must be a sales item only. For example,if you sell a gift package that contains multiple products, this could be set up as a sales bill ofmaterials. The parent item will be the package name, and the children will be the inventory itemsinside the package. Once you selected the parent in a sales document, all its children appear as sub-items. You can update the quantities of the parent or the children; however you cannot delete childrenor add new sub-items to the package in the sales document. When you set up the BOM, you can selectthe Hide BOM Components in Printout option, so that when you print the document, only the parentappears.

Assembly – This BOM is similar to the sales bill of materials. It represents a collection of individualitems in a set with a specific price. Unlike the sales bill of materials, only the finished product appearsin the sales order document; the components do not appear as sub-items.

For both the sales BOM and the assembly BOM, you do not manage the finished product as aninventory item, but rather as a sales item. The components can be sales items and stock items at thesame time.

Template. This BOM has no restrictions. Both the parent and the children can be any type of items. Itcan be used in sales and purchasing document. Once you select the parent item, all its children appear.You can delete, add or duplicate rows and make any modification as necessary.

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You have to create item master records for the finished products in the system. These are representedby the parent item in the bill of materials.

Depending on the BOM Type you must have a certain category maintained in the item master recordof the finished product:

For the assembly and sales BOMs the finished product has to be a Sales Item.For the production BOM the finished product has to be an Inventory Item. If you also want topurchase this item, you can define it as a Purchased Item. If you also want to sell it, you can alsodefine it as a Sales Item. If you produce it for stock, as a component of another parent item, then donot define it as a sales item so it will not appear as a choice in a sales document list of items.

One tip for defining items in an implementation: Define items in a multi-level bill of materials fromthe bottom up. First the children then the parent item.

Templates can have each of the three attributes (Purchased, Sales, and Inventory Items).

The components can also have each of the three categories (Purchased, Sales, and Inventory Items),and can also be purchased or sold individually.

The components for Sales BOMs and Assembly BOMs must be sales items.

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A phantom item is a sub-assembly in the BOM that does not actually exist in inventory. It is used tosimplify the BOM. Although the phantom item appears in the BOM, the Production Order will showthe components needed to make the phantom item rather than the phantom item itself.

An item can be defined as a phantom item in the Item Master Data.

MRP: The MRP will explode the phantom items and create recommendations for its components. Thephantom item will be displayed in the MRP result window without recommendations, for informationonly.

Production Order: The Production order will explode the phantom BOM and display its components inthe required order. In the example above, in the production order, the Components tire, rim, and screwswill appear, but not the wheels.

The BOM requirements of different departments in the same company can be different. Theengineering department could create a multi level BOM to define an engine .The manufacturingdepartment could then include this BOM as single phantom item.

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Description: Production Order is a command to produce or repair a production item. The productionorder supports the planning and assembly of a production item. It also tracks all the materialtransactions and costs that are involved in the production process.

The production order document records the finished material to be produced, its components and theirissue method.

In some cases, a finished product is the result of an entire production process. In other cases, though, afinished product might simply be a collection of items sold as a unit rather than the output of aproduction or assembly process. SAP Business One has three types of production orders to support thevariations in production. The three types (standard, special and disassembly) are discussed in moredetail on the next page.

In all cases, a production order must list the items involved in the production process. With thestandard and disassembly production orders, a production bill of materials is used to describe the itemsused during production.

Production orders can be created automatically by MRP or created manually. In the make to orderprocess, a production order is created manually for each sales order that creates a demand.

Before any further transactions can be associated with the production order, such as goods issues, theproduction order must be released by an authorized user.

When components are issued to the production order or when finished products are received intoinventory, an accounting document will be created automatically to document the costs associated (aslong as you are using perpetual inventory).

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Create production orders either automatically from MRP recommendations, or manually. The Status ofthe production order is Planned. At this point in the process, components are committed to theproduction order but no items can be issued until the order is released .

Once you have initiated the production order, change its Status to Released. At this stage, you canbegin reporting transactions for the production order. Components can be issued, finished productscan be received, and the production order can be completed.

Issue the components using either the Manual, or the Backflush method.

Use the Manual issue method to issue individual component items to the production order. Thatenables you to precisely post all components issued to a production order as it is used in theproduction process. Open the production order in Status Released and choose Go to (or right mouseclick) Issue ComponentsWhen you report the completion of the production, backflushed components are issuedautomatically.

At the point you start to report the completion of the production order. You can report the partial or fullcompletion of the production order or you can cancel the order.

For the standard and special production orders, you post the finished product to the stock. For thedisassembly production orders, you post the components to stock. There are two ways to reportcompletion: Choose Production Receipt from Production or open the production order in StatusReleased and choose Go to (or right mouse click) Report Completion .

Once the manufacturing is over, close the production order. You change the Status to Closed. TheSummary tab sums up the order; you can refer to the tab to review the production order details.

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SAP Business One supports three types of production orders: Standard production order, Specialproduction order and Disassembly production order.

The Standard production order is based on the production BOM; you use it to produce a regularproduction item. You manage material transactions of the regular production process. In addition, youcan change components at the production stage. When you open a new standard production order, allthe components fill in automatically. You issue components from inventory to the production order.After production is completed, you receive the finished parent product into inventory.

Use the Special production order to produce and repair items or to perform activities that are notnecessarily bill of material items, for example, repair order for customer equipment cards, or repairorder for rejected assemblies. You create special production order components manually. You issuecomponents from inventory to the production order, and ultimately receive the finished parent to theinventory. The parent can be any inventory item.

Use the Disassembly production order to disassemble a parent item of the regular product into itscomponents. You disassemble the product into separate parts that can then be put into stock and sold.For example, you can purchase a used car, take it apart, and sell the individual components. In thiscase, the parent item is issued to the production order, and the disassembled sub-items are received intoinventory at the end of production.

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Take the following steps to enter a production order:

Select the production order type and the parent item

Enter the quantity of the parent item

Enter the production order due date which represents the production completion date

Optionally you can assign a sales order to the production order.

Components appear based on the BOM setup. You can add/delete components, modify the basequantities, warehouse and issue method.

Add the production order.

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A newly created production order has the status Planned. In this status, you cannot issue componentsor report completion of the production order. However, you can make changes to the information in theproduction order.

Once the production process begins, open the production order and change its status to Released.You can release both manual and automatic production orders.

Once the status has been set to Released, you can:

issue components.

change components that have not yet been issued.

add components to the production order.

receive the finished item into inventory

report completion for a production order.

As long as the status is Planned or Released, you can manually cancel a production order.

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Components can only be issued when the status of the production order is set to Released.

You issue component items using either the Manual or the Backflush method.

Manual – You issue individual component items to the production order. This enables you to postcomponents issued to a production order precisely when they are required in the production process.Manual issue is always used for serialized or batch-managed items.

Backflush – SAP Business One automatically issues item transactions for the needed component items(as defined in the Components tab) when a product is reported as completed. Items that are set tobackflush are issued automatically when you choose Report Completion.Items that are managed with serial numbers or batch numbers cannot be backflushed; therefore, theyare automatically set to a manual issue method.

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At the end of the process, you report completion of production. This will receive the finished item intoinventory and calculate the cost of producing the item.

Use the context menu to choose Report Completion.For Standard and Special production orders, reporting completion posts the finished product to theinventory.

For Disassembly production orders, reporting completion posts the components to the inventory.

At this stage, you could also reject items.

Serial numbers and batches can be assigned at this point.

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In a standard or a special production order, components are issued out of inventory. When theproduction order is completed, the finished product is received into stock. The details of the stockmovements are shown above.

For disassembly production orders the stock effect is reversed. The disassembled finished product isremoved from stock and the components are added into the inventory.

5-19

On the Summary tab page you have the information that summarizes the production order. The tabdisplays the information on the released and closed production orders.

Actual Component Cost: Displays the total value of all components issued to the production order.

Actual Additional Cost: Displays the actual additional costs that occur when a component is defined inthe Item Master Data as a non-inventory item. This can be, for example, a service or labor cost. If thereis more than one additional cost for the item, the cost displayed is the sum of all additional costs.

Actual Product Cost: Displays the total value of all products assembled for this production order.

Total Variance: Displays the value that is the result of the actual components value subtracted from theactual products value. Variance Per Product: Displays the value that is the total variance divided bythe planned quantity value. Variance %: Displays the percentage of the variance per product value.

Journal Remark: Displays the product number by default. The value is saved in the General Ledgerand is displayed during the General ledger transactions and reports. You can modify the value of thefield.

Quantities - Planned Quantity: Displays the total planned quantity of the production order. CompletedQuantity: Displays the total completed quantity after you report the production completion. RejectedQuantity: Displays the total rejected quantity of the production order.

Dates - Due Date: Displays the due date of the production order. Actual Close Date: Displays the datewhen the production order was closed. Overdue: Displays the number of days that the actual close dateexceeded the due date.

5-20

Several journal entries are posted during a production process:

When you issue the components for the production either manually or automatically (backflush), thesystem posts the value of the components to the debit side of the WIP account and to the credit sideof the stock account of the components.

When you complete the production order, the system creates a receipt from production documentand a journal entry that posts the value of the finished product to the debit side of the stock accountof the product and to the credit side of the WIP account.

If any variances occur, the system posts these when you close the production order. The systemposts the variance as a negative value on the debit side of the WIP account and on the credit side ofthe WIP variance account.

The system retrieves the WIP account and the WIP variance account from the WIP Account field andthe WIP Variance Account field on the Inventory tab of the item master record.

The WIP-accounts used for components can either can be set to use the WIP-accounts for the parentitem or the WIP-accounts for the component item, depending on a parameter in the document settingsfor the production order.

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5-24

Questions on Production Concepts

Review Questions

1. What are the steps in the production process?2. What is the initial status of a production order?3. What is the significance of the status Released?4. What are the four types of bills of material?5. Which bills of material are used in production orders?6. What is the difference between an assembly and sales bill of materials?7. What categories must an item master have if you plan to produce and sell this finished

product?8. What category must items have that are components in a sales or assembly BOM?9. When is a template bill of materials used?10. What is a phantom item?11. What are the three types of production orders? When are they used?12. What is the difference between manual components and backflushed components?13. What is the significance of reporting completion for a production order?14. When a disassembly production order is complete, what items are added to the inventory

and what is removed from stock? How does this differ from a standard production order?15. What posting is made to an inventory account when components are issued for

production?16. What postings are made when a finished item is received into inventory from production?

Extend your knowledge questions1. You need to create a production order to re-engineer an item returned for repair. What

type of production order would you use? How would you enter the components needed?2. You are advising a business that purchases junked appliances and resells parts for those

appliances. What type of production orders would be best for them to use?3. What documents in SAP Business One would you create to produce a finished product

from a multi-level bill of materials?4. How do you calculate planned labor costs for a production order?5. The engineering department has designed a multi-level bill of materials for a new product

you will be producing. However you want to represent this product in a single-levelproduction BOM which you will assign to the production order. What type of itemshould be used in your single-level BOM to represent the top item from the lower-levelbill of materials?

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6-1

6-2

6-3

6-4

When a customer contacts you with a service-related issue, you create a service call.

The customer may have a contract which defines a service agreement in terms of response time andresolution time. Contracts may also list particular items covered by the contract.

The service call is assigned to an appropriate employee to respond to the customer issue. This can bedone by direct assignment or through the use of queues.

Both the response time and resolution time are tracked by the system.

Activities may be created and managed inside the service call.

All actions within the service call are recorded in the history tab.

Any service expenses can be recorded and tracked within the service call.

When the issue is resolved, close the service call and follow up with any service invoicing asappropriate.

6-5

Customer equipment cards store information on specific items (identified by a serial number) that arelocated at the customer site and may need services. Information includes:

The address where the item is locatedService calls that you received for this itemService contracts that are valid for this itemSales data if the customer equipment card was created automatically through a sales documentTransactions (inventory transactions to the specific serial number)Attachments

Customer equipment cards can be created automatically or manually:

Automatically: The system can automatically create a customer equipment card that records that thecustomer received an item, whenever you add an A/R invoice or a delivery for an item that usesserial number management. To set this up, choose Administration System InitializationGeneral Settings and select the Inventory tab. Select one unique serial number in the Unique SerialNumber by field and select the Automatically Create Customer Equipment Card indicator.

Manually: If you provide services for items that you did not sell yourself, you can create a customerequipment card manually. In this case you must also enter the serial number (manufacturer serialnumber or internal serial number) manually. To manually create and maintain customer equipmentcards, choose Service Customer Equipment Card.

Choose Service Service Reports Customer Equipment Report for a list of customer equipmentcards.

6-6

Service contracts are formal or legally binding contracts where you agree to provide services to thecustomer during certain coverage times and within a certain resolution time.

Service contracts focus on services for one of the following options (contract types):

Services on items with serial numbers for which a customer equipment card exists: Commonly, aservice contract that provides services for a customer based on a on an item´s warranty .

Services for special customers: You might have agreed with a customer to provide services that arenot related to any item.

Services offered for certain item groups: These contracts are valid for certain item groups only.

For all three contracts types, you can create contract templates that contain default values.

You can enter a contract template for items with serial numbers into the item master record. When youcreate an A/R invoice or a delivery for that item, the system automatically creates not only a customerequipment card but also a service contract of the Warranty service type .If you want to create a service contract with the Regular service type you must create it manually.However, you can also refer to a contract template by entering it into the Template field.

Choose Service Service Contract to create and maintain service contracts.

Choose Administration Setup Service Contract Templates to create and maintain contracttemplates.

Choose Service Service Reports Service Contracts to get a list of service contracts.

6-7

On the General tab of a service contract, you specify the service level agreement for the customer.You specify both the allowed response time and the resolution time required by the contract.

On the Coverage tab, the service availability times are listed by day and hours. You can set timeperiods for each day, including 24 hours. You can also state whether holidays are included.

You can also list what types of services are covered, such as Parts, Labor, and/or Travel costs.

All these fields can default in automatically from a contract template.

Additionally, you can specify specific items that are covered by the contract.

6-8

Choose Service Service Call to create and maintain service calls.

You open a service call to record and track an incoming customer complaint or problem.

Service calls allow you to manage the service process followed for a particular customer issue. Fromthe service call, you can manage activities, document actions, manage repairs and expenses, createinvoices or goods movements for service parts, search for solutions, and keep track of the service callhistory.

Often a customer has a valid service contract or the item is covered by warranty. If there are no validservice contracts for the customer or if the call comes in outside coverage time, the system issues awarning.

When a call comes in, the customer service representative asks if the service is for a particular item. Atthat point, the representative can choose the customer equipment card representing this piece ofequipment.

A customer equipment card is not mandatory. Items can also be covered by a service contract of theCustomer contract type.

You can only refer to a customer equipment card if its Status is Active or Loaned. When you try torefer to a customer equipment card with the status Returned, Terminated, or In Lab, an error messagedisplays.

6-9

The header and the seven tabs in the service call allow you to organize the information about the issue,steps taken to resolve the issue, related documents used during the service process, and the solutionfound.

The header of the service call contains basic information about the call: the customer, the contactperson, contact information, the subject of the call, a related service contract and any serial numbersfor the object of the call.

Fields on the General tab allow you to further characterize the problem or the service call (Origin,Problem Type, Call type). This tab also contains information about who will be handling the serviceissues.

You can use the Remarks tab to describe the problem in detail.

You record all steps concerning the analysis and the solution as activities. These steps are listed on theActivities tab.

On the Solutions tab you can use the knowledge base to search for solutions for your problem.

The system displays all documents related to this service call on the Expenses tab. From this tab, youcan also generate service invoices and inventory movement transactions.

On the Resolution tab you can enter how you solved the problem or how you otherwise helped thecustomer.

The History tab displays a simplified change log of the service call. You can get a detailed view on allthe instances by choosing Tools Change Log.

6-10

A service call is automatically assigned to the user who has entered it (Assignee field). The assignee isthe one who is responsible for the calls resolution before the Resolution by date and time. This date andtime is calculated automatically based on the Resolution Time in the service contract. If the assignee isnot able to solve the problem he can forward it to a colleague by just selecting his name in the Assigneefield.

If there is a group of colleagues who are experts in solving special problems, this group can form aqueue. To define a queue, choose Administration Setup Service Queues. You can enter themembers of the queue by double-clicking the queue definition.

The person in the call center can record the problem in a service call and then forward it to a queue byselecting the Queue option and entering the queue name into the Queue field on the General tab.

The members of the queue regularly check the queue by choosing Service Service ReportsService Calls by Queue. A member of the queue can assign any of the service calls to himself andwork on it. Every user can see all service calls that are assigned to him under Service ServiceReports My Service Calls or My Open Service Calls or My Overdue Service Calls.In the Technician field, you can enter a reference to an employee master record with the PositionTechnician.

Choose Service Service Reports Service Calls to get a list of service calls and a figure thatshows the number of incoming service calls per day and per week. To monitor the performance ofproblem solving, choose Service Service Reports Response by Assignee Report, AverageClosure Time or Service Monitor.

6-11

The deadlines for service response are copied from the service contract details into the service call.

The contract’s Coverage tab contains a profile for when services are available to the customer, such asMonday-Friday 8-5 or 24/7 coverage.

The contract also specifies how quickly the service department must respond to and resolve the servicerequest in number of hours or days. This information is set up on the General tab.

It is the combination of these two requirements that calculates the hour by which the service team mustrespond.

6-12

The service resolution time and date is calculated according to the resolution time and coverage of theservice contract.

Two fields for service resolution are found on the General tab of the Service call.

By: The last date and hour you are committed to provide a resolution for the service call. This date iscalculated according to the Resolution Time field and coverage of the service contract (from theCoverage tab in Service Service Contract ).

On: The date and time of the resolution provided for the service call. SAP Business One considers it aresolution when you add a resolution or a solution

When a service call is resolved, you enter text on the Resolution tab.

Then mark the service order as closed. You cannot set a service call to Closed if you have not attacheda solution or entered a resolution. The time and date when the service call status was set to Closed arecaptured in Closed on field. If you reopen a service call, this date and time will be deleted.

Note: Deleting solutions from the Solution tab or the text from the Resolution tab clears the ResolutionOn field. The Response On field remains because you are still responding to the service call which isno longer resolved.

6-13

The Solutions Knowledge Base is a collection of solutions for known problems.

You can create and update common solutions to customer’s problems and questions.

The Solutions Knowledge Base displays all the solutions that were ever recorded in SAP BusinessOne.

You can search for existing solutions and link an existing solution to a service call. A service call canhave more than one solution.

If you found a new solution for a problem, you can add it to the knowledge base directly from theService Call screen. Therefore, the next time a similar problem occurs, the technicians are aware ofpossible solutions and can more quickly resolve customer issues.

Solutions have statuses, such as Internal, Publish, and Review. New statuses can be defined. Statuscan define how a solution should be used. Authorizations control who can modify the solution status.

To maintain the knowledge base, choose Service Solutions Knowledge Base.

6-14

There are a number of useful service reports. Choose Service Service Reports

In addition to the reports listed on the slide there are a few more worth mentioning:

Employees can monitor their own assigned service calls with three main reports, one which is listed onthe slide above, My Service Calls, My Open Service Calls and My Overdue Service Calls.

Service Contract status can be viewed in the Service Contract Report. This provides conciseinformation on all existing service contracts and their statuses.

The Customer Equipment Card Report provides information on specific items purchased by orassigned to each customer.

6-15

The system displays all expenses regarding a service call on the Expenses tab. Here you see all A/Rinvoices, A/R credit memos, deliveries, and returns that you created concerning the handling of thisservice call. If you select the Display All Documents indicator, the system also displays stock transfers(transfers to the technician and returns from the technician).

To get a detailed view or to enter new expenses, choose Expenses Details. The system then displays alldocuments grouped by items that belong to the type Items and items that belong to the types Labor orTravel. If you choose New Document, you can create the following:

Transfers to technicians (just for items posted as stock transfers)

Returns from technicians (just for items posted as stock transfers)

Deliveries

Returns

A/R invoices

A/R credit memos

6-16

There are several configuration settings used to set defaults for service.

In Administration System Initialization General Settings Inventory tab, you can enableautomatic creation of customer equipment cards. First, you must set up unique serial numbers for thesystem. Serial numbers can be set to be unique using either the serial number itself or a manufacturer’sserial number; however you must choose between these two options here in the general settings. Thenselect the checkbox to activate the automatic creation of customer equipment cards.

In Administration Setup Service, you can set up:

Templates for contracts. Later you can assign these contract templates to an item master in the fieldwarranty template. This will allow the system to create a service contract automatically when theitem is delivered to the customer.

Service Call Queues.

Activating automatic equipment card creation and automatic service contract creation for a particularitem is done in the item master record.

You can assign a particular technician and service territory to a customer inside the business partnermaster for that customer in the General tab.

An employee can be designated a technician in the employee master data record. Specify the role inthe Membership tab of the employee master record.

Territories are defined in Administration Setup General Territories

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6-19

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Questions on Service Concepts

Review Questions

1. What is the main document used for managing service in SAP Business One?2. What are the two deadlines that are automatically set in a sales call?3. How are these deadlines calculated?4. What information is contained in the customer equipment card?5. What configuration settings control whether a customer equipment card is created

automatically?6. What is a contract template and how does it relate to a service contract?7. What controls whether a service contract is created automatically during a delivery to a

customer?8. What are the two ways a service call can be delegated to the next line of support?9. What is the solutions knowledge base?10. What are some useful service reports?11. What are two prerequisites to closing a service call?12. What happens to the Closed on time and date when a service call is reopened?13. What controls the type of documents available to view on the Expenses tab in a service

call?

Extend your knowledge questions1. Your customer is buying items without serial numbers. You want to set up a contract for

these items at the customer site. What are your options?2. Your business has loaner items that are sent to a customer while their item is in the shop

being repaired. What master data record in service can be used to track these objects?How would you set these up?

3. Which service reports would you advise a service department manager to use to improvecall handling efficiency?

4. You are setting up a service department where the items under contract are sold by adifferent company. Since you will not have customer equipment cards and servicecontracts issued automatically at the point of sale, how will adjust the steps in the serviceprocess for this business?

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7-5

A typical process might be:

1) A customer orders a custom-built personal computer.

2) A production order is created to build the computer.

3) Materials are purchased for the components of the computer using the procurement process: purchaseorder, goods receipt PO and A/P invoice.

4) When the materials are received, they are issued as components to the production order.

5) The computer is built and we report the item as complete and receive it into finished inventory.

6) The serialized item is delivered to the customer. When it is issued, the system automatically creates acustomer equipment record showing the sale to the customer and a service warranty contract.

7) If the customer has a future problem, a service call is created.

8) Based on the service warranty contract, there is a service level agreement for response and resolutiontime.

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7-7

Fundamentals-– Exercises

Unit: SAP Business One BasicsTopic: Getting Started

At the conclusion of this exercise, you will be able to:

Log into SAP Business One

Set display parameters

Set up shortcut keys

Create and change a marketing document

Use Drag & Relate

In this exercise, you begin exploring SAP Business One. Afterlogging into the system, you will set display parameters and setup shortcut keys.You will create and change a purchase order to better understandthe features common to all marketing documents. You will usedrag and relate to find purchase orders for the vendor.

1-1 You want to work with the SAP Business One.

1-1-1 Log on to the SAP Business One system and choose a database as directedby your instructor.

1-1-2 You would like to work with the SAP Business One system with thelanguage and other display parameters which you prefer.Choose the language and date format appropriate to your region.

1-1-3 You already know that the transactions for sales orders, purchasing orders,and production orders are the transactions that you will use most often.Assign these transactions to the functions keys F2, F3, and F4.

Field Name or Data Type Values

Shortcut F2

Module Sales – A/R

Window Sales Order

1-1

Field Name or Data Type Values

Shortcut F3

Module Purchasing – A/P

Window Purchase Order

Field Name or Data Type Values

Shortcut F4

Module Production

Window Production Order

1-1-4 Create a purchase order for the vendor Lasercom. You would like tosearch for the vendor by name since you do not know the vendor code.

Enter the following information in the purchase order.

Field Name or Data Type Values

Delivery Date <today’s date>

Item No. C00003

Quantity 5

Item No. C00004

Quantity 10

Note: If the Type indicator does not appear in the rows, add the field usingForm Settings.Add a row with a subtotal for the order.

Field Name or Data Type Values

Type Subtotal

Add two additional items to the order.

Field Name or Data Type Values

Item No. A00005

Quantity 2

Item No. A00006

Quantity 2

Add a text line to the order. And follow that with a second subtotal row.

1-2

Field Name or Data Type Values

Row Type Text

Text Editor Any text

Row Type Subtotal

Is it possible to add an alternative item row to the purchase order?________________________________________________________

Save your purchase order..Write down your purchase order number: ______________

1-1-5 Find all the purchase orders for Lasercom using Drag&Relate.Go to the Drag & Relate menu.

Use one these two methods to find the purchase orders.Option 1: Select Purchase Order. All purchase orders are displayed.Therefore, use the Filter function to select the purchase orders only of thevendor V20000.

Option 2: Select Business Partners. All Business Partners display. Dragbusiness partner V20000 to Purchase Order, so you get only purchaseorders for the vendor V20000.

1-1-6 Open the first purchase order in the list by choosing the arrow at thebeginning of the row.

Open the Last Prices Report window to display the last prices out ofdocuments and special prices.

1-17 Make one or more of the following changes to the purchase order: add arow, delete a row or duplicate a row. Change the item description for oneof the items.In order to group different rows by item, choose Summary Type: By Items(in the top right corner of the Contents tab.).

Tip: After changing the item description, select Ctrl+Tab in order to leavethe field.

1-1-8 Open the row details for the first item. View the warehouse quantities bynavigating to the Whse field and choosing Ctrl + Tab.

In stock: ___________Ordered: __________Committed: _________

1-1-9 Save the changes to this purchase order (if you haven’t already saved thechanges in step 1-1-7).

1-3

1-1-10 View the change log to see what the changes have been made to thepurchase order.

1-4

Fundamentals-Solutions

Unit: SAP Business One BasicsTopic: Getting Started

1-1 You want to work with the SAP Business One.

1-1-1 Log on to the SAP Business One system and choose a database.a. Start SAP Business One by choosing Start SAP Business One.b. In the window Welcome to SAP Business One you enter the User Code

and Password.

c. You get to the window Choose Company. Choose the appropriatedatabase as directed.

1-1-2 You would like to work with the SAP Business One system with thelanguage and other display parameters which you prefer.Choose the language and date format appropriate to your region.Choose Administration System Initialization General Settings.Choose the Display tab and enter your preferences.Choose OK to save your settings.

1-1-3 You already know that the transactions for sales orders, purchasing orders,and production orders are the transactions that you will use most often.Assign these transactions to the functions keys F2, F3, and F4.Choose Tools My Shortcuts Customize.

Field Name or Data Type Values

Shortcut F2

Module Sales – A/R

Window Sales Order

Choose Allocate.

Field Name or Data Type Values

Shortcut F3

Module Purchasing – A/P

Window Purchase Order

Choose Allocate.

1-5

Field Name or Data Type Values

Shortcut F4

Module Production

Window Production Order

Choose Allocate.Choose OK.

1-1-4 Create a purchase order for the vendor Lasercom. You would like tosearch for the vendor by name since you do not know the vendor code.

Choose Purchasing – A/P Purchase Order

Use one of the two methods below to search for the vendor Lasercom.Option 1: Choose the Tab key in the Vendor (Number) field, and theList of Business Partners window opens. Double-click on the BP Namecolumn and enter L into the Find field. The system positions on the firstentry beginning with L.

Option 2: Enter L* into the (Vendor) Name field, choose the Tab key,and the Choose from List window opens. The system positions directly onthe first entry beginning with L and only displays the entries beginningwith L.

Enter the following information in the purchase order.

Field Name or Data Type Values

Delivery Date <today’s date>

Item No. C00003

Quantity 5

Item No. C00004

Quantity 10

Note: If the Type indicator does not appear in the rows, choose the FormSettings icon and select Type in the Table Format tab.Add a row with a subtotal for the order.

Field Name or Data Type Values

Type Subtotal

Add two additional items to the order.

Field Name or Data Type Values

Item No. A00005

Quantity 2

1-6

Item No. A00006

Quantity 2

Add a text line to the order. And follow that with a second subtotal row.

Field Name or Data Type Values

Row Type Text

Text Editor Any text

Row Type Subtotal

Is it possible to add an alternative item row to the purchase order?No, alternative item rows are only available in sales quotations.Save your purchase order by choosing Add.Write down your purchase order number: ______________

1-1-5 Find all the purchase orders for Lasercom using Drag&Relate.

Go to the Drag & Relate menu.Use one these two methods to find the purchase orders.

Option 1: Select Purchase Order. All purchase orders are displayed.Therefore, use the Filter function to select the purchase orders only of thevendor V20000.

Option 2: Select Business Partners. All Business Partners display. Dragbusiness partner V20000 to Purchase Order, so you get only purchaseorders for the vendor V20000.

1-1-6 Open the first purchase order in the list by choosing the arrow at thebeginning of the row.Open the Last Prices Report window to display the last prices out ofdocuments and special prices.Navigate to the price in the first row of your purchase order. Choose Ctrl+ Tab or select Last Prices from the context menu for the unit price toopen the Last Prices Report.

1-1-7 Make one or more of the following changes to the purchase order: add arow, delete a row or duplicate a row. Change the item description for oneof the items.

Data Add Row or Right mouse-click Add Row.

Data Delete Row or Right mouse-click Delete Row.

Data Duplicate Row or Right mouse-click Duplicate RowIn order to group different rows by item, choose Summary Type: By Items(in the top right corner of the Contents tab.).

1-7

After changing the item description, select Ctrl+Tab in order to leave thefield.

1-1-8 Open the row details by clicking the arrow on the row number of the firstitem. View the warehouse quantities by navigating to the Whse field andchoosing Ctrl + Tab.

In stock: ___________Ordered: __________Committed: _________

1-1-9 Save the changes to this purchase order (if you haven’t already saved thechanges in step 1-1-7). Choose Update.

1-1-10 View the change log to see what the changes have been made to thepurchase order.From the menu bar, choose: Tools Change Log.

1-8

Purchasing – Exercises

Unit: Purchasing-A/PTopic: Procurement Process

At the conclusion of this exercise, you will be able to:

Perform the steps in purchasing process

Create good receipt POs for partial quantities

View inventory status for items purchased

Discuss the effects of the purchasing documents on inventoryand accounting

In this exercise, you create a purchase order for required items.One of the items has never been ordered before, so you create anitem master record. When the vendor delivers partial quantities,you create a goods receipt PO. You use the inventory statusreport to view stock quantities. Later you create a second goodsreceipt for an additional delivery. When the vendor’s invoicearrives, you enter an A/P invoice and process the vendorpayment.

You perform the purchasing process a second time to betterunderstand the effect on inventory and accounting during eachstep of the process.

1-1 You want to place an order with your vendor, V10000. To do so, you call up thepurchase order document and enter the vendor number. You order two units ofitems C00009, C00010, and C00011.1-1-1 Enter the following values in the purchase order.

Field Name or Data Type Values

Vendor V10000

Item No. C00009

Quantity 2

Item No. C00010

Quantity 2

Item No. C00011

Quantity 2

2-1

Just before you enter a zip drive as a fourth item, you realize that this itemdoes not have a master record, so you create an item master record.Use the following values for the new item master:

Field Name or Data Type Values

Item No. TA200

Item Description Zip Drive

Enter the information and go back to your purchase order. Enter a price inthe Price field in the purchase order.

Do not save the purchase order yet!

1-1-2 Since the goods are often delivered on different dates, you want to displaythe delivery date column in your item table. The same applies for thewarehouse.Set the delivery date and warehouse fields as active and visible.

Do not save the purchase order yet!

1-1-3 What payment terms does the system suggest? How did it determine these?___________________________________________________________

___________________________________________________________

1-1-4 Add the purchase order.Purchase Order Number: _____________

Choose OK.

1-2 The delivery for your purchase order has arrived, however it is not exactly whatyou had ordered. The vendor's delivery document refers to your purchase ordernumber.

Enter a Goods Receipt PO with reference to the purchase order document. Enterthe vendor number and display all the open purchase order documents.

Field Name or Data Type Values

Vendor V10000

1-2-1 The vendor did not deliver all the items and quantities. The vendordelivered the full quantity for C00009 and TA200, but delivered only aquantity of 1 for the C00010. C00011 was not delivered by the vendor.For this reason, copy 3 of the 4 items to your Goods Receipt PO in theDraw Document Wizard and change the quantity of C00010 to 1.

2-2

Save your goods receipt document.Goods Receipt Number: _____________

1-2-2 Check the current stock situation of items C00010 - C00011 using theInventory Status Report within the Inventory Reports. Record thequantities below.

C00010 C00011

In Stock

Committed

Ordered

Available

1-2-3 You receive an additional delivery for the same purchase order. The vendordelivers all the remaining items. Create a goods receipt PO for these items.

Field Name or Data Type Values

Vendor V10000

Add the goods receipt document.1-2-4 V10000 sends you an invoice for the above deliveries with the invoice

number of 00125/40. Enter an A/P invoice in the system to represent thevendor’s request for payment.

Field Name or Data Type Values

Vendor V10000

Vendor Ref. No. 00125/04

1-2-5 Record all the items, referring to the two deliveries when you enter theinvoice. Post the invoice to the system.A/P Invoice Number: _____________

1-2-6 Pay the vendor’s invoice.

Field Name or Data Type Values

Code V10000Post the payment.

2-1 You want to view the effect of each document in the purchasing process onaccounting and inventory. You will follow the steps of the purchasing processagain from purchase order through A/P invoice.

2-3

2-1-1 Create a purchase order for the vendor V20000. You order 5 units of itemsA00001.

Field Name or Data Type Values

Vendor V20000

Item No. A00001

Quantity 5

Save the purchase order.Purchase Order Number: _____________

2-1-2 You want to first determine which warehouse is the assigned for this item,so that you can then determine the stock level for that warehouse.

2-1-3 Check the stock level currently found in that warehouse.2-1-4 Leave the purchase order open.

2-2 The items on your purchase order have arrived. You will create a goods receipt POfrom the purchase order. When you save the goods receipt PO, you will check thestock level and journal entry to see how this document affects inventory andaccounting.

From the open purchase order, create a goods receipt PO.

2-2-1 Check the rows and quantities in the Goods Receipt PO to make sure theymatch the quantities delivered by the vendor.

Field Name or Data Type Values

Item No. A00001

Quantity 5

Then save the Goods Receipt PO.Goods Receipt Number: _____________

2-2-2 Open the Goods Receipt PO you just created and check the effects of theGoods Receipt PO.2-2-2-1 View the item master record.

Choose the correct tab for to check inventory quantity.

Which column shows the increase caused by the Goods ReceiptPO?__________________________________________________

Return to the Goods Receipt PO.

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2-2-2-2 View the journal entry to see the effect of the Goods ReceiptPO on accounting.

What were the two posting that were created automaticallybecause the system is using perpetual inventory?___________________________________________________

___________________________________________________

Return to the Goods receipt PO.

2-3 A vendor invoice for the delivered items arrives. You will create an A/P invoice topay the vendor. When you save the A/P invoice, you will check the journal entryto see how this document affects accounting.

From the open Goods Receipt PO, create an A/P invoice.

Enter the invoice number (55723-09) and invoice date (yesterday’s date) from thevendors invoice into the appropriate fields.

Field Name or Data Type Values

Vendor Ref. No. 55723-09

Document Date Yesterday’s date

Save the A/P Invoice.A/P Invoice Number: _____________

2-3-1 Open the A/P invoice you just created to view the journal entry.Fill in the table below based on information in the document:

Values

How much is the vendorinvoice?

2-3-1-1 View the journal entry to see the effect of the A/P invoice onaccounting.

Which field in the journal entry contains the vendor referencenumber?_______________________________________________

Which account was credited when the Goods Receipt PO wascreated and is now debited when the A/P Invoice is saved?

_________________________________________________

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Purchasing Solutions

Unit: Purchasing-A/PTopic: Procurement Process

1-1 You want to place an order with your vendor, V10000. To do so, you call upthe purchase order document and enter the vendor number. You order twounits of items C00009, C00010, and C00011.

Choose Purchasing-A/P Purchase Order1-1-1

Field Name or Data Type Values

Vendor V10000

Item No. C00009

Quantity 2

Item No. C00010

Quantity 2Item No. C00011

Quantity 2

Just before you enter a zip drive as a fourth item, you realize that thisitem does not have a master record.

Choose the Tab key in the Item No field to create a new item directlyfrom the purchase order. Choose New and create a new item for the zipdrive with item code TA200.

Field Name or Data Type Values

Item No. TA200Item Description Zip Drive

Enter the above information and go back to your purchase order. Entera price in the Price field in the purchase order.

Do not save the purchase order yet!

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1-1-2 Since the goods are often delivered on different dates, you want todisplay the delivery date column in your item table. The same appliesfor the warehouse.

Set the delivery date and warehouse fields as active and visible. Fromthe Menu bar, choose the Form Settings icon. On the Table Formattab, select Visible and Active for the fields Del. Date and Whse.Choose OK.Do not save the purchase order yet!

1-1-3 What payment terms does the system suggest? How did it determinethese?

The payment terms appear as Net 30 on the Accounting tab.The system took the payment terms from the business partner masterrecord and defaulted the terms into the document.

1-1-4 Choose Add to save the purchase order.Purchase Order Number: _____________

1-2 The delivery for your purchase order has arrived, however it is not exactly whatyou had ordered. The vendor's delivery document refers to your purchase ordernumber.

Enter a Goods Receipt PO with reference to the purchase order document.Choose Purchasing-A/P Goods Receipt PO.

Enter the vendor number and display all the open purchase order documents.

Field Name or Data Type Values

Vendor V10000

Choose Copy from Purchase OrdersChoose the correct document from the list.In the next step, you will adjust the quantities in the Draw Document Wizard.1-2-1 The vendor did not deliver all the items and quantities. The vendor

delivered the full quantity for C00009 and TA200, but delivered only aquantity of 1 for the C00010. C00011 was not delivered by thevendor.

For this reason, copy 3 of the 4 items to your Goods Receipt PO in theDraw Document Wizard:Select the two radio buttons: Use Doc and Row Exchange Rate fromBase Document and Customize.Choose Next.

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Choose all the delivered items (you can use Ctrl-Click to selectindividual rows).Change the quantity of C00010 to 1.Choose FinishCheck the rows and quantities in the Goods Receipt PO to make surethey match the quantities delivered by the vendor.Then save the Goods Receipt PO by choosing Add.Goods Receipt Number: _____________Choose Yes.

1-2-2 Check the current stock situation of items C00010 - C00011 using theInventory Status Report within the Inventory Reports. Record thequantities below.

C00010 C00011

In Stock

Committed

Ordered

Available

Choose Inventory Inventory Reports Inventory Status.

1-2-3 You receive an additional delivery for the same purchase order. Thevendor delivers all the remaining items. Create a goods receipt PO forthe remaining items.

Purchasing-A/P Goods Receipt PO

Field Name or Data Type Values

Vendor V10000

Choose Copy from Purchase Orders.Choose the correct document from the list.Draw Document Wizard: select Import Exchange Rate from BaseDocument and Customize.Choose Next.Make sure the remaining items are selected.Choose FinishChoose AddChoose Yes.

1-2-4 V10000 sends you an invoice for the above deliveries with the invoicenumber of 00125/40.

Enter an A/P invoice in the system to represent the vendor’s requestfor payment.

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Choose Purchasing-A/P A/P Invoice

Field Name or Data Type Values

Vendor V10000

Vendor Ref. No. 00125/04

1-2-5 Record all the items, referring to the two deliveries when you enter theinvoice.

Choose Copy From Goods Receipt PO.Select the two goods receipt POs with all items.Choose Draw All Data in the Draw Document Wizard.Choose Finish.Enter a posting date and the vendor reference number.Choose Add.A/P Invoice Number: _____________Choose Yes to accept the system message.

1-2-6 Pay the vendor’s invoice.Banking Outgoing Payments Outgoing Payments

Field Name or Data Type Values

Code V10000Select the row with the document number of your invoice.Choose the Payment Means icon.Click in the Amount column and press Ctrl-B to bring in the amount.Choose OK.Choose Add.Then choose Add again.

2-1 You want to view the effect of each document in the purchasing process onaccounting and inventory.

2-1-1 Create a purchase order for the vendor V20000. You order 5 units ofitems A00001.

Choose Purchasing-A/P Purchase Order

Field Name or Data Type ValuesVendor V20000

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Item No. A00001

Quantity 5Save the purchase order.Purchase Order Number: _____________Choose Add.

2-1-2 You want to view the warehouse assigned for this item, so that you candetermine the stock level in that warehouse.

Look at the warehouse assigned in the Whse field.

2-1-3 You want to view the stock level currently found in that warehouse.Choose the link arrow in the Item No. field to open the item masterdata record.Choose the Inventory Data tab.

2-1-4 Return to the purchase order and remain on the purchase orderwindow.

2-2 The items on your purchase order have arrived. You will create a goodsreceipt PO from the purchase order. When you save the goods receipt PO, youwill check the stock level and journal entry to see how this document affectsinventory and accounting.

From the open purchase order, create a goods receipt PO.

Choose Copy to.Choose Goods Receipt PO.

2-2-1 Check the rows and quantities in the Goods Receipt PO to make surethey match the quantities delivered by the vendor.

Field Name or Data Type ValuesItem No. A00001

Quantity 5

Then save the Goods Receipt PO.Goods Receipt Number: _____________Choose Add.Confirm the system message. Choose Yes.

2-2-2 Open the Goods Receipt PO you just created and check the effects ofthe Goods Receipt PO.

Choose the Last Data Record icon.

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2-2-2-1 Choose the link arrow in the Item No. field to view the itemmaster record.Choose the correct tab for to check inventory quantity.Choose the Inventory Data tab.

Which column shows the increase caused by the GoodsReceipt PO?View the In Stock column quantity. The inventory for thisitem has increased by 5.

Return to the Goods Receipt PO. Choose Cancel.2-2-2-2 View the journal entry to see the effect of the Goods

Receipt PO on accounting.

Choose the Accounting tab.Choose the link arrow next to the Journal Remark field.

What were the two posting that were created automaticallybecause the system is using perpetual inventory?

The system automatically creates two postings. A debit toshow the increase in inventory quantity and value and acredit for goods received, not yet invoiced to accrue theamount owed to the vendor.

Choose Cancel to return to the Goods receipt PO.

2-3 A vendor invoice for the delivered items arrives. You will create an A/Pinvoice to pay the vendor. When you save the A/P invoice, you will check thejournal entry to see how this document affects accounting.

From the open Goods Receipt PO, create an A/P invoice.Choose Copy to.

Choose A/P Invoice.

Enter the invoice number (55723-09) and invoice date (yesterday’s date) fromthe vendors invoice into the appropriate fields.

Field Name or Data Type Values

Vendor Ref. No. 55723-09

Document Date Yesterday’s date

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Choose Add to save the A/P Invoice.A/P Invoice Number: _____________Confirm the system message. Choose Yes.

2-3-1 Open the A/P invoice you just created to view the journal entry.

Choose the Last Data Record icon to open the A/P Invoice.

Fill in the table below based on information in the document:

ValuesHow much is the vendorinvoice?

2-3-1-1 View the journal entry to see the effect of the A/P invoiceon accounting.

Choose the Accounting tab.Choose the link arrow next to the Journal Remark field.

Which field in the journal entry contains the vendorreference number?

The Ref. 2 field contains the vendor reference number.

Which account was credited when the Goods Receipt POwas created and is now debited when the A/P Invoice issaved?

The Goods Received Not Invoiced account is creditedwhen the Goods Receipt PO is created and debited whenthe A/P Invoice is created.

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Exercises

Unit: Purchasing-A/PTopic: Purchasing Services

At the conclusion of this exercise, you will be able to:

Perform the steps to purchase a service with a purchase order

Process vendor invoices for services without a purchase order

In this exercise, you create a purchase order for a web designservice. When the services are provided, the vendor sends aninvoice. You create an A/P invoice to pay the vendor.An invoice for electricity arrives from a new utility. You createan A/P invoice for this service. Since the utility is a new vendor,you create a vendor master record.

3-1 You have spoken with your vendor, V23000 about providing web design services.Create a service purchase order document and enter the vendor number. Changethe Item/Service Type to Service. Enter a description for the service and choose theappropriate G/L account number for the service. Enter 2000 as the price for theservice.3-1-1 Enter the following information:

Field Name or Data Type Values

Vendor V23000

Item/Service type Service

Service Description Web Design Services

G/L Account Number Use an account such asmiscellaneous expenses

Total Price 2000

Add the purchase order.Purchase Order Number: _____________

3-1-2 The services have been provided and you received an invoice from thevendor. The invoice number on the vendor invoice is 187 and the invoicedate is yesterday. Create an A/P Invoice to pay for the service received.

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Choose the vendor from the list of vendors. Then enter the invoice numberin the Vendor Reference Number field. Enter today as the posting date.Change the document date to match the vendor’s invoice date.

Field Name or Data Type Values

Vendor V23000

Vendor Ref. No. 187

Posting Date Today’s date

Document date Yesterday’s date

3-1-3 Which setting should always be verified before copying from a purchaseorder? Why?________________________________________________________

________________________________________________________

3-1-4 Copy rows from the purchase order you created earlier.Note: If you do not find the purchase order on the list, check thatItem/Service Type field is set to Service.

3-1-5 Which field in the A/P Invoice should match the total on the vendorinvoice?

_________________________________________________________3-1-6 Save the A/P Invoice.

A/P Invoice Number: _____________

4-1 You receive a utility bill from a new energy vendor for the amount of 1255.60 foryour main office. Create a non-PO invoice for the utilities.

4-1-1 Create the vendor from the Vendor Code field.Enter the following values:

Field Name or Data Type Values

Vendor Code V29000

Name Southwest Energy

Enter a Pay-to Address of your choice.

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4-1-2 For the vendor reference number, create an abbreviation that identifies theinvoice to you, such as a combination of month, year and location wherethe electricity was provided.

Field Name or Data Type Values

Vendor Ref. No MMYY-MainOffice

4-1-3 Enter the current date for the posting date and enter the date from thevendor invoice (the last day of the previous month) for the document date.

4-1-4 Enter information about the service provided in the A/P Invoice.

Field Name or Data Type Values

Description Main Office Power

G/L Account (Utilities account number)

Total (LC) 1255.60

4-1-5 Save the invoice.A/P Invoice Number: _____________

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Purchasing Purchasing Solutions

Unit: Purchasing-A/PTopic: Purchasing Services

3-1 You have spoken with your vendor, V23000 about providing web designservices. Create a purchase order document and enter the vendor number.Change the Item/Service Type to Service. Enter a description for the serviceand choose the appropriate G/L account number for the service. Enter 2000 asthe price for the service.

Choose Purchasing-A/P Purchase Order3-1-1

Field Name or Data Type Values

Vendor V23000

Item/Service type Service

Service Description Web Design Services

G/L Account Number Use an account such asmiscellaneous expenses

Total Price 2000Add the purchase order.Purchase Order Number: _____________

3-1-2 The services have been provided and you received an invoice from thevendor. The invoice number on the vendor invoice is 187 and theinvoice date is yesterday. Create an A/P Invoice to pay for the servicereceived.

Choose the vendor from the list of vendors. Then enter the invoicenumber in the Vendor Reference Number field. Enter today as theposting date. Change the document date to match the vendor’s invoicedate.

Choose Purchasing-A/P A/P Invoice

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Field Name or Data Type Values

Vendor V23000

Vendor Ref. No. 187

Posting Date Today’s date

Document date Yesterday’s date

3-1-3 Which setting should always be verified before copying from apurchase order? Why?

The Item/Service Type field setting should be checked to ensure itmatches the item/service type on the purchase order. Service mustdisplay in the Item/Service Type field in order to copy from servicepurchase orders. If item is chosen in the Item/Service Type field, youcan only copy from item purchase orders.

3-1-4 Copy rows from the purchase order you created earlier.

Choose Copy from.

Choose Purchase Orders.

Choose the appropriate purchase order from the list by double-clickingon the row.

Note: If you do not find the purchase order on the list, check thatItem/Service Type field is set to Service.

Accept the default values in the Draw Document Wizard by choosingFinish.

3-1-5 Which field in the A/P Invoice should match the total on the vendorinvoice?

The Total Payment Due field should match the total due on the vendorinvoice.

3-1-6 Save the A/P Invoice.Choose Add.A/P Invoice Number: _____________Accept the system message by choosing Yes.

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4-1 You receive a utility bill from a new energy vendor for the amount of 1255.60for your main office. Create a non-PO invoice for the utilities.

Choose Purchasing-A/P A/P Invoice4-1-1 Create the vendor from the Vendor Code field.

Choose the selection list icon in the Vendor Code field.From the List of Business Partners window, choose New.Enter the following values:

Field Name or Data Type Values

Vendor Code V29000

Name Southwest Energy

Go to the Addresses tab.Enter a Pay-to Address of your choice.Then choose Add.A/P Invoice Number: _____________

4-1-2 For the vendor reference number, create an abbreviation that identifiesthe invoice to you, such as a combination of month, year and locationwhere the electricity was provided.

Field Name or Data Type Values

Vendor Ref. No MMYY-MainOffice

4-1-3 Enter the current date for the posting date and enter the date from thevendor invoice (the last day of the previous month) for the documentdate.

4-1-4 Enter information about the service provided in the A/P Invoice.Choose an appropriate G/L account from the list of accounts.

Field Name or Data Type Values

Description Main Office Power

G/L Account (Utilities account number)

Total (LC) 1255.60

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4-1-5 Save the invoice.A/P Invoice Number: _____________Choose Add.Choose Yes.

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Exercises

Unit: Purchasing-A/PTopic: Troubleshooting Issues

At the conclusion of this exercise, you will be able to:

Create credit memos with and without reference to an invoice

Use an expedited purchasing process

Manage under-deliveries, over-deliveries and substitute items.

In this exercise, you receive a credit memo for the invoice createdin the first exercise in the purchasing unit. You find the invoiceand determine whether you should create the document with orwithout reference to the original invoice.Secondly, you order some items by phone from a vendor. Nopurchase order or goods receipt PO is created; instead you createonly the A/P invoice.Lastly, you create a purchase order for some items. Some of theitems are being discontinued so the vendor can only send a partialquantity. The vendor also sends too many of another item and asubstitute item. You create a goods receipt PO which receives theitems delivered. Since you will never receive the quantityoriginally ordered, close the purchase order after creating thegoods receipt PO.

5-1 Vendor V10000 sends you a credit memo for $250 as a credit. The credit memoreferences the invoice you created in the first purchasing process exercise.

Find the invoice and determine if you should create the A/P Credit Memodocument with or without reference to the original invoice.

5-1-1 Switch to Find mode.

Search for the invoice.

Field Name or Data Type Values

Vendor V10000

Vendor Ref. No. 00125/04

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5-1-2 Can you copy this invoice to create a credit memo?_____________________________________________________.

5-1-3 Create an A/P Credit Memo to post the credit from the vendor. Choose theprice adjustment account from the list of G/L accounts.

Field Name or Data Type Values

Item/Service Type Service

Vendor V10000

Vendor Ref. No. CM00125/04

Service Description Price adjustment

G/L Account (Price difference accountnumber)

Total (LC) 250

Remarks Credit to 00125/04Add the credit memo.A/P Credit Memo Number: _____________

6-1 You are in a hurry to receive some printers and have arranged a delivery by phonewith your vendor V60000. The delivery is made quickly and the vendor hasincluded an invoice with the delivery.6-1-1 You post the invoice in the system directly (without referring to a purchase

order or to a goods receipt PO) with the result that a goods receipt is madein the background. The stock level increases accordingly.

Field Name or Data Type Values

Vendor V60000

Item/Service type Item

Posting Date Today’s date

Item A00003

Quantity 100

Add the invoice.A/P Invoice Number: _____________

6-1-2 Open the invoice you just created to view the current inventory and thejournal entry.What is the quantity in Whse 01? _____________..View the journal entries.

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Which account gets the credit? _______________Which account gets the debit? ________________

6-1-3 Return 20 of the 100 items of A00003. Make sure that the system correctsboth the values and quantities. Which document should you use and why?__________________________________________________________

Create a credit memo with reference to the invoice in the system.Credit Memo Number: _____________

6-1-4 Open the credit memo you just created to view the current inventory andthe journal entry.

What is the quantity in Whse 01? _____________.View the journal entries.Which account gets the credit? _______________Which account gets the debit? ________________

7-1 Create a purchase order for vendor V10000. You are ordering three items and thevendor has informed you that some of the items may be out of stock, but youdecide to place the order anyway.7-1-1 Enter a purchase order for three items.

Field Name or Data Type Values

Vendor V10000

Item/Service Type Item

Item C00010

Quantity 5

Item C00009

Quantity 5

Item A00002

Quantity 5

Save the purchase order.Purchase Order Number: _____________

7-1-2 A shipment arrived from vendor 10000 for some of the items that youordered. The vendor’s shipment is not the same as your original purchaseorder. The vendor has shipped only 3 of the first item (C00010).Additionally, they have delivered too many of the second item (C00009), 6

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keyboards instead of 5. Instead of the third item you ordered (A00002),they have substituted a different printer. After calling the vendor anddiscussing the differences, you decide to accept the order.

Open the purchase order you just created and create a goods receipt PO forthose items.

7-1-3 Create the goods receipt PO.

7-1-4 Change the quantity on the first row to 3.7-1-5 Change the quantity of the second item to 6.

7-1-6 Delete the third row and add the item you actually received.Enter the following information into the empty row.

Field Name or Data Type Values

Item No. A00003

Quantity 5Save the goods receipt PO.Goods Receipt Number: _____________

7-1-7 The vendor sends the remaining quantity of two for the first item (C00010).Open the purchase order you just created to create a second Goods ReceiptPO to receive the shipment.

7-1-8 What quantity displays for the first item? Why?

_________________________________________________________7-1-9 Copy the purchase order to a goods receipt PO.

7-1-10 Which items and quantities display in the Goods Receipt PO and why?

__________________________________________________________

____________________________________________________________________________________________________________________

__________________________________________________________

7-1-11 Delete the row with the printers and save the goods receipt PO.Goods Receipt Number: _____________

7-1-12 Change the status of the purchase order to Closed.

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Purchasing Solutions

Unit: Purchasing-A/PTopic: Troubleshooting Issues

5-1 Vendor V10000 sends you a credit memo for $250 as a credit. The creditmemo references the invoice you created in the first purchasing processexercise.

Find the invoice and determine if you should create the A/P Credit Memodocument with or without reference to the original invoice.

Purchasing-A/P A/P Invoice5-1-1 Switch to Find mode by choosing the Find icon.

Search for the invoice.

Field Name or Data Type Values

Vendor V10000

Vendor Ref. No. 00125/04

Choose Find or Enter to begin the search.

5-1-2 Can you copy this invoice to create a credit memo?

No, the invoice status is Closed, therefore you cannot copy the invoiceto create a credit memo.

Cancel to close this window.

5-1-3 Create an A/P Credit Memo to post the credit from the vendor. Choosean appropriate G/L account from the list of accounts. Ask theinstructor if you are unsure which account to choose.

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Purchasing-A/P A/P Credit Memo

Field Name or Data Type Values

Item/Service Type Service

Vendor V10000

Vendor Ref. No. CM00125/04

Service Description Price adjustment

G/L Account (Price difference accountnumber)

Total (LC) 250

Remarks Credit to 00125/04

Add the credit memo.Credit Memo Number: _____________Confirm the system message with Yes.

6-1 You are in a hurry to receive some printers and have arranged a delivery byphone with your vendor V60000. The delivery is made quickly and thevendor has included an invoice with the delivery.

6-1-1 Choose Purchasing-A/P A/P Invoice.You post the invoice in the system directly (without referring to apurchase order or to a goods receipt PO) with the result that a goodsreceipt is made in the background. The stock level increasesaccordingly.

Field Name or Data Type Values

Vendor V60000Item/Service type Item

Posting Date Today’s date

Item A00003

Quantity 100

Choose Add.Purchase Order Number: _____________Choose Yes.

6-1-2 Open the invoice you just created to view the current inventory and thejournal entry.

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Choose the Last Document icon.Choose the link arrow next to the Item No.field.In the item master, choose the Inventory Data tab.What is the quantity in Whse 01? _____________.Navigate back to the document by choosing OK.Choose the Accounting tab.Choose the link arrow next to the Journal Remarks field.View the journal entries.Which account gets the credit? _______________Which account gets the debit? ________________

6-1-3 Return 20 of the 100 items of A00003. Make sure that the systemcorrects both the values and quantities. Which document should youuse?

Since an invoice has already been entered, you have to create a creditmemo with reference to the invoice in the system. The system clears20 units from stock and corrects the values in the general ledger.Choose Purchasing-A/P A/P Credit Memo.

Field Name or Data Type ValuesVendor V60000

Choose Copy From A/P Invoices.Select your invoice and click Choose.

In the Draw Document Wizard:Select Use Doc and Row Exchange Rate from Base Document andCustomize.Choose Next.

Select item A00003 with a quantity of 20.

Field Name or Data Type Values

Item A00003

Quantity 20

Choose Finish.Credit Memo Number: _____________Choose Add and Yes (system message).

6-1-4 Open the credit memo you just created to view the current inventoryand the journal entry.

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Choose the Last Document icon.Choose the link arrow next to the Item No.field.In the item master, choose the Inventory Data tab.What is the quantity in Whse 01? _____________.Navigate back to the document by choosing OK.Choose the Accounting tab.Choose the link arrow next to the Journal Remarks field.View the journal entries.Which account gets the credit? _______________Which account gets the debit? ________________

7-1 Create a purchase order for vendor V10000. You are ordering three items andthe vendor has informed you that some of the items may be out of stock, butyou decide to place the order anyway.

Purchasing-A/P Purchase Order7-1-1 Enter a purchase order for three items.

Field Name or Data Type Values

Vendor V10000

Item/Service Type Item

Item C00010

Quantity 5

Item C00009

Quantity 5

Item A00002

Quantity 5

Choose Add to save the purchase order.Purchase Order Number: _____________

7-1-2 A shipment arrived from vendor 10000 for some of the items that youordered. The vendor’s shipment is not the same as your originalpurchase order. The vendor has shipped only 3 of the first item(C00010). Additionally, they have delivered too many of the seconditem (C00009), 6 keyboards instead of 5. Instead of the third item youordered (A00002), they have substituted a different printer. After

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calling the vendor and discussing the differences, you decide to acceptthe order.

Open the purchase order you just created and create a goods receiptPO for those items.

Choose the Last Data Record icon.

7-1-3 Create the goods receipt PO.

Choose Copy to.

Choose Goods Receipt PO.

7-1-4 Change the quantity on the first row to 3.

7-1-5 Change the quantity of the second item to 6.

7-1-6 Delete the third row and add the item you actually received.Select the row by clicking on the number 3 to the left of the row.Right click (to open the context menu).Choose Delete Row.Enter the following information into the empty row.

Field Name or Data Type Values

Item No. A00003

Quantity 5Choose Add.Goods Receipt PO Number: _____________Choose Yes to accept the system message.

7-1-7 The vendor sends the remaining quantity of two for the first item(C00010). Open the purchase order you just created to create a secondGoods Receipt PO to receive the shipment.Purchasing-A/P Purchase OrderChoose the Last Data Record icon.

7-1-8 What quantity displays for the first item? Why?The first item still shows a quantity of 5 which is the original quantityordered in the purchase order. The quantity in the purchase order doesnot change based on the goods receipt PO. The quantity not yetreceived displays in the Open Amount field. This field can be added tothe form in Form Settings.

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7-1-9 Copy the purchase order to a goods receipt PO.Choose Copy to.Choose Goods Receipt PO.

7-1-10 Which items and quantities display in the Goods Receipt PO and why?

Two items display. The first item has a quantity of 2. The systemsubtracts the quantity of 3 that was received in a previous goodsreceipt PO. Since this is the correct quantity, you do not need tochange the amounts.

The second item is for the printers we ordered that were out of stock.The vendor has sent us an alternate item but because the purchaseorder row item is still open, this item is automatically copied to thegoods receipt PO.

Normally when we receive all items on a purchase order, the systemchanges the status to Closed. Since this item will never be received,we should close the purchase order after we finish processing thisgoods receipt PO. Otherwise, the item will continue to display as anopen item on inventory reports.

7-1-11 Delete the row with the printers (A00002) and save the goods receiptPO.

Select the row and open the context menu by right clicking.Choose Delete Row.Choose Add to save the goods receipt PO.Goods Receipt PO Number: _____________Choose Yes.

7-1-12 Change the status of the purchase order to Closed. Use one of the twomethods listed below.

Method 1: Navigate to the purchase order from the goods receipt POyou just created. Then close the purchase order.Choose the Last Data Record icon.Choose the Base Document icon.Choose the menu path Data CloseChoose Yes to confirm the system message.

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Method 2: Use the Open Items List to navigate to the purchase order.Choose Purchasing-A/P Purchasing Reports Open Items List.Choose Purchase Orders in the Open documents dropdown list.Select the correct PO and close it by choosing Data Close from themenu bar or right mouse-click Close.Choose Yes (system message).If you would like to check the resulting stock situation, you can returnto the Inventory Status report or display the stock situation for eachpurchased item in the item master record on the Inventory Data tab.

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Exercises

Unit: Sales – A/RTopic: Business Partners

At the conclusion of this exercise, you will be able to:

Create a customer group

Create business partners

In this exercise, you create a customer group for small customers.You create customer master records for domestic and foreigncustomers. You create a lead master data record and then convertit to a customer master record.

1-1 Define customer groups

1-1-1 Create customer groups

Create two new customer groups: one for schools and one for smallcustomers.

Field Name or Data Type Values

Group Name SchoolsGroup Name Small Customers

1-2 Create customer master records

1-2-1 Create a domestic customer

Create a new customer with the following values.

Field Name or Data Type Values

Code C2001

3-1

BP Type Customer

Name Laurel School

Group Schools

Tel 1 <Any>

Sales Employee <Any you choose>

Enter the bill-to address.

Field Name or Data Type Values

Address Name Main Office

Street / P.O. Box <Any>

City <Any>

Zip Code <Any>

Country <Domestic>

Default Tax Code <Any>

Enter the ship-to address.

Field Name or Data Type Values

Name Receiving

Street / P.O. Box <Any>

City <Any>Zip Code <Any>

Country <Domestic>

Default Tax Code <Any>

Enter payment terms and credit limit.

Field Name or Data Type Values

Payment Terms 2P10Net30Credit Limit 10000

Add the data record.

3-2

1-2-2 Create a foreign customer

If your customer's currency has not already been defined,create it now. Choose Administration SetupFinancials Currencies.

Create a customer master record for a new small customer.

Field Name or Data Type Values

Code C2002

BP Type Customer

Name Richard BodyGroup Small Customers

Currency <Customer's currency>

Enter the bill-to address.

Field Name or Data Type Values

Street / P.O. Box <Any>

City <Any>

Zip Code <Any>

Country <A neighboring country>

Add the data record.

1-3 Create a lead and convert it to a customer

1-3-1 Create a lead

Create a lead for a small business with the following information.

Field Name or Data Type Values

Code L108

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BP Type Lead

Name Coffee and Copies

Group Small Customers

Currency <Your local currency>

Enter the bill-to address.

Field Name or Data Type Values

Street / P.O. Box <Any>

City <Any>

Zip Code <Any>

Country <Domestic>

Enter the ship-to address.

Field Name or Data Type Values

Name Ship To

Street / P.O. Box <Any>City <Any>

Zip Code <Any>

Country <Domestic>

Add the data record.

1-3-2 Attempt to create a delivery for a lead

Choose Sales A/R DeliveryChoose the Selection List icon in the customer field to see a list of customers.

Does Coffee and Copies appear on the list?

_______________________________________________________

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1-3-3 Convert the lead to a customer.Change to search mode and search for the lead.

Field Name or Data Type Values

Code L108

Change the Business Partner Type to Customer.Change the lead’s code to conform with naming conventions for ourcustomers.

Field Name or Data Type Values

Code C3308

Save your changes.

1-3-4 Create the delivery for the customer.

Field Name or Data Type Values

Customer C3308

Item No. C00001

Quantity 1

Add the delivery.

3-5

usiness Partners - Solutions

Unit: Sales – A/RTopic: Business Partners

1-1 Define customer groups

1-1-1 Create customer groups

Choose Administration Setup Business Partners CustomerGroups.

Field Name or Data Type Values

Group Name Schools

Group Name Small Customers

Choose Update.

Then choose OK to close the window.

1-2 Create customer master records

To go to add mode, use the key combination Ctrl + A orchoose Data Add or choose the Add button in the toolbar

1-2-1 Create a domestic customer

Choose Business Partners Business Partner Master Data.Change to add mode.

Field Name or Data Type Values

Code C2001

BP Type Customer

Name Laurel School

Group Schools

Tel 1 <Any>

Sales Employee <Any you choose>

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Choose the Addresses tab page.To enter the bill-to address, choose Define New (under Bill to).

Field Name or Data Type Values

Address Name Main Office

Street / P.O. Box <Any>

City <Any>

Zip Code <Any>

Country <Domestic>

Default Tax Code (if needed inyour localization)

(This field is not used inthe UK)

To enter the ship-to address, choose Define New (under Ship to).

Field Name or Data Type Values

Name Receiving

Street / P.O. Box <Any>

City <Any>

Zip Code <Any>

Country <Domestic>

Default Tax Code (if needed inyour localization)

(This field is not used inthe UK)

Choose the Payment Terms tab page.

Field Name or Data Type Values

Payment Terms 2P10Net30

Credit Limit 10000

Choose Add to save the data record.

1-2-2 Create foreign customer

If your customer's currency has not already been defined,create it now. Choose Administration SetupFinancials Currencies.

3-7

Choose Business Partners Business Partner Master Data.Change to add mode.

Field Name or Data Type Values

Code C2002

BP Type Customer

Name Richard Body

Group Small Customers

Currency <Customer's currency>

Choose the Addresses tab page.To enter the bill-to address, choose Bill To.

Field Name or Data Type Values

Street / P.O. Box <Any>

City <Any>

Zip Code <Any>

Country <A neighboring country>

Choose OK to confirm the message: Change accounts receivable/payable?

Enter data in the other fields.Choose Add to save the data record.

1-3 Create a lead and convert it to a customer

1-3-1 Create a lead

Choose Business Partners Business Partner Master Data.Change to add mode.

Field Name or Data Type Values

Code L108

BP Type Lead

Name Coffee and Copies

Group Small Customers

Currency <Your local currency>

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Choose the Addresses tab page.To enter the bill-to address, choose Define New (under Bill to).

Field Name or Data Type Values

Street / P.O. Box <Any>

City <Any>

Zip Code <Any>

Country <Domestic>

To enter the ship-to address, choose Define New (under Ship to).

Field Name or Data Type Values

Name Ship To

Street / P.O. Box <Any>

City <Any>

Zip Code <Any>

Country <Domestic>

Enter data in any other fields you choose.Choose Add to save the data record.

1-3-2 Attempt to create a delivery for a lead

Choose Sales A/R DeliveryChoose the Selection List icon in the customer field to see a list ofcustomers.

Does Coffee and Copies appear on the list?No. Because Coffee and Copies is a lead, it is not possible to create adelivery. You must convert Coffee and Copies to a customer in order tocreate a delivery.

1-3-3 Convert the lead to a customer.Choose Business Partners Business Partner Master DataChange to search mode and search for the lead.

Field Name or Data Type Values

Code L108

Enter the code value in the Code field and choose Find.

Change the Business Partner Type to Customer.

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Change the lead’s code to conform with our naming conventions forcustomers.

Field Name or Data Type Values

Code C3308

Save your changes.Choose Update.Choose OK.

1-3-4 Create the delivery for the customer

Choose Sales A/R Delivery.

Field Name or Data Type Values

Customer C3308

Item No. C00001

Quantity 1

Choose Add to save the delivery.Choose Yes to confirm the system message.

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Purchasing – Exercises

Unit: Sales – A/RTopic: Sales Process

At the conclusion of this exercise, you will be able to:

Perform the steps of the sales process

Discuss sales documents’ effects on inventory and accounting

Run the open items list

In this exercise, you create a sales order for one of the customermaster records you just created. Then you change the sales orderto accommodate customer requests. You deliver the items to thecustomer then create an A/R invoice for the delivery. When thecustomer pays your company, you create the incoming paymentdocument.

Later, you perform each step of the sales process again whileviewing the effects of each document on inventory andaccounting.

2-1 Follow the steps of the sales process.

2-1-1 Create a sales order for your new domestic customer, Laurel School.

Laurel School has just called to place an order for a motherboard and fivenetwork cards.

Field Name or Data Type Values

Customer C2001

Delivery Date <2 days from today>

Item No. C00001

Quantity 1

Item No. C00006

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Quantity 5

Do not save the sales order yet.

2-1-2 The purchaser from the school asked if the school receives a 2% discountfor paying within 10 days. Check if the payment terms are correct.

Review the payment terms and adjust if necessary.

Sales order number: ___________________________

Save the sales order.

2-2 Change a sales order.

2-2-1 The customer calls you to make some changes to the sales order that you justentered. Open the sales order you just created.

Increase the first quantity to 10.

The customer tells you that he had been promised a 1% discount on the wholesales order. Enter a 1% discount for the order total.

Field Name or Data Type ValuesDiscount 1

2-3 Create a delivery for your sales order.

2-3-1 Open the sales order you just created to create a delivery with the Copy tofunction.

2-3-2 Copy all the items from the sales order to a delivery.

Save the delivery.

2-4 Create an A/R invoice for your delivery.

2-4-1 From the delivery, copy the items to an A/R invoice.

Save the invoice.

A/R invoice number: ___________________________

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2-5 Laurel Schools sent a payment for the delivery using a bank transfer. Create anincoming payment for the A/R invoice.

2-5-1 Open the incoming payments window.

Field Name or Data Type Values

Code C2001

Select the A/R invoice.

Choose the Payment Means icon.Enter the following information in the appropriate tab.

Field Name or Data Type Values

G/L Account number < Use 161022 for theUK, if using anotherlocalization then theinstructor will provide>

Transfer Date < today’s date>

Reference 79773528

Total Press CTRL + B to copythe total

Save the document.

2-6 Track the effect of each step in the sales process beginning with the sales order.

2-6-1 Create a sales order for a customer and view the effect on inventory.

Field Name or Data Type Values

Customer C23900

Delivery Date < today>

Item No. A00002

Quantity 10Save the order.

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Sales order number: ___________________________

2-6-2 Open the sales order you just created.

View the details for the row.Which warehouse is assigned to the first row?

_______________________________________________________

Return to the sales order. Open the item master record.How many printers are in stock? ____________________How many printers are committed? ______________________Choose Cancel to return to the sales order._________________

2-7 View the open items list.

2-7-1 Run the Open Items List for sales orders. Look for your sales order anditem.

2-8 Create a delivery and view the effect of the delivery.

2-8-1 Open the sales order you just created and copy the items to a deliverydocument.

Add the delivery.

Delivery number: ___________________________

2-8-2 Retrieve the delivery you just created to view the effect of the delivery oninventory.

Open the item master record to find the following information.

How many printers are in stock? ____________________How many printers are committed? ______________________

Return to the delivery.

2-8-3 View the effect of the delivery on accounting.

Open the journal entry. What are the two postings made by the deliverydocument?

_______________________________________________

_______________________________________________

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2-9 Create the A/R invoice and view the accounting effects.

2-9-1 From the delivery document, create an A/R invoice.

Add the invoice.

A/R Invoice number: ___________________________

View the journal entry. What type of postings is made to indicate thecustomer owes us money: debit or credit?

_______________________________________________What type of posting is made to record sales revenues: debit or credit?

_______________________________________________

2-9-2 As you saw in the journal entry, no changes to inventory were recordedwhen you created the A/R invoice. When would an A/R invoice recordchanges to inventory?

_______________________________________________

_______________________________________________

_______________________________________________

3-15

usiness Partners - Solution

Unit: Sales – A/RTopic: Sales Process

2-1 Follow the steps of the sales process.

2-1-1 Create a sales order for your new domestic customer, Laurel School.

Laurel School has just called to place an order for a motherboard andfive network cards.

Choose Sales A/R Sales Order.

Field Name or Data Type Values

Customer C2001

Delivery Date <2 days from today>

Item No. C00001

Quantity 1

Item No. C00006

Quantity 5

Do not save the sales order yet.

2-1-2 The purchaser from the school asked if the school receives a 2% discountfor paying within 10 days. Check if the payment terms are correct.Choose the Accounting tab.

Review the payment terms and adjust if necessary.Choose Add to save the sales order.

Sales order number: ___________________________Choose Add to save the sales order.

2-2 Change a sales order.

2-2-1 The customer calls you to make some changes to the sales order that youjust entered.

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Choose Sales – A/R Sales Order

Open the sales order you just created.Either choose the Last Data Record icon or use Find mode to search for thedocument by number or customer name.Increase the first quantity to 10.

The customer tells you that he had been promised a 1% discount on thewhole sales order. Enter a 1% discount for the order total.

Field Name or Data Type Values

Discount 1

Choose Update to save your changes.Choose OK.

2-3 Create a delivery for your sales order.

2-3-1 Open the sales order you just created to create a delivery with the Copy tofunction.Choose Sales – A/R Sales Order .Choose the Last Data Record icon.

2-3-2 Copy all the items from the sales order to a delivery.

Choose the button Copy to.Choose Delivery.

Delivery number: ___________________________Choose Add to save the delivery.

Confirm the system message by choosing Yes.

2-4 Create an A/R invoice for your delivery.

2-4-1 From the delivery, you will copy the items to an A/R invoice.

If you have closed the delivery, re-open the delivery. ChooseSales – A/R Delivery. Choose the Last Data Record icon.

In the delivery document, choose Copy to.

Choose A/R invoice.Choose Add to save the invoice.

A/R invoice number: ___________________________

3-17

Confirm the system message by choosing Yes.

2-5 Laurel Schools sent a payment for the delivery using a bank transfer. Create anincoming payment for the A/R invoice.

2-5-1 Open the incoming payments window.

Choose Banking Incoming Payments Incoming Payments.

Field Name or Data Type Values

Code C2001

Select the A/R invoice. Mark the selection box in the Selected column.

Choose the Payment Means icon.Choose the tab Bank Transfer.

Enter the following information.

Field Name or Data Type Values

G/L Account number < Use 161022 for theUK, if using anotherlocalization then theinstructor will provide>

Transfer Date < today’s date>

Reference 79773528

Total Press CTRL + B to copythe total

Choose OK.

Choose Add to save the document.Choose Add.

2-6 Track the effect of each step in the sales process beginning with the sales order.

2-6-1 Create a sales order for a customer and view the effect on inventory.

Choose Sales A/R Sales Order.

Field Name or Data Type Values

Customer C23900

Delivery Date < today>

Item No. A00002

Quantity 10

3-18

Choose Add to save the order.

Sales order number: ___________________________

2-6-2 Open the sales order you just created.Choose Last Data Record.

View the details for the row. Double-click on Row 1.Which warehouse is assigned to the first row?

_______________________________________________________Close the window to return to the sales order.

Open the item master record. Choose the link arrow to next to the ItemNo. field.

Choose the Inventory Data tab.How many printers are in stock? ____________________How many printers are committed? ______________________Choose Cancel to return to the sales order._________________

2-7 View the open items list.

2-7-1 Choose Sales A/R Sales Reports Open Items List.Choose Sales Orders in the dropdown list for open documents.Look for your sales order and item.

Choose OK to close the Open Items list.

2-8 Create a delivery and view the effect of the delivery.2-8-1 Open the sales order you just created.

Choose Last Data Record.Choose Copy to.

Choose Add to save the delivery.Delivery number: ___________________________

Confirm that you want to save the delivery by choosing Yes.

2-8-2 Retrieve the delivery you just created to view the effect of the delivery oninventory.

Choose Last Data Record.Open the item master record by choosing the link arrow next to the ItemNo. field.Choose the Inventory Data tab.

How many printers are in stock? ____________________How many printers are committed? ______________________

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Choose Cancel to return to the delivery.

2-8-3 View the effect of the delivery on accounting.Choose the Accounting tab.

Open the journal entry. Choose the link arrow next to the JournalRemarks field.

What are the two postings made by the delivery document?_______________________________________________

_______________________________________________Choose Cancel to return to the delivery.

2-9 Create the A/R invoice and view the accounting effects.2-9-1 From the delivery document, choose Copy to.

Choose A/R Invoice.Choose Add to save the invoice.

Confirm the system message to save the invoice.A/R Invoice number: ___________________________

Re-open the invoice you created with the Last Data Record icon.Choose the Accounting tab.

Open the journal entry. Choose the link arrow next to the JournalRemarks field.

What type of postings is made to indicate the customer owes us money:debit or credit?A debit posting is made to the customer account.What type of posting is made to record sales revenues: debit or credit?A credit posting is made for sales revenue.Close all open windows.

2-9-2 As you saw in the journal entry, no changes to inventory were recordedwhen you created the A/R invoice. When would an A/R invoice recordchanges to inventory?

If there is no preceding delivery document, the A/R invoice records thechanges to inventory quantity. Additionally, if you are running perpetualinventory, the A/R invoice records the changes to inventory value in theresulting journal entry.

3-20

Exercises

Unit: Sales – A/RTopic: Sales Process - Item Availability Check

At the conclusion of this exercise, you will be able to:

Ensure the item availability check is activated for sales orders

Set up an alternative item

Perform an item availability check in a sales order

Display the available-to-promise report

In this exercise, you review how the item availability check isactivated for sales orders. You create two new items and setone as an alternative for the other. You create a sales orderand perform the item availability check and explore theoptions available within the sales order.

3-1 How does the automatic availability check work?

3-1-1 How can you activate the automatic availability check for sales orders?

___________________________________________________________3-1-2 Make sure that the automatic availability check for sales orders is activated in

your SAP Business One training system.

3-2 You have two new items. Create the item master records and enter the quantitieswhich are already available.

3-2-1 Create the item master record with the following values.

Field Name or Data Type Values

Item Number A2010Description Fast Sheet Feed Scanner

Item Group Scanners

3-21

(if the item group does notexist, use the Define Newfunction)

Price List Base Price

Unit Price 200

3-2-2 Post the goods receipt for a quantity of 5.

Field Name or Data Type Values

Item Number A2010

Quantity 5

Price List Last Purchase Price

Price 200

3-2-3 Create the second item master record.

Field Name or Data Type Values

Item Number A2020

Description USB Interface Ultra Scanner

Item Group Scanners

Price 150

3-2-4 Post the goods receipt.

Field Name or Data Type Values

Vendor V10000

Item Number A2020

Quantity 20

Price 150

3-22

3-3 You want to sell the USB Interface Ultra Scanner as an alternative item to thefast sheet fed scanner.

3-3-1 Define the item A2020 as the alternative item of item A2010.

Field Name or Data Type Values

Item Number A2010

Item Number A2020Remarks Alternative scanner

3-4 Customer C20000 orders scanners.

3-4-1 Create the sales order.

Field Name or Data Type Values

Customer C20000Delivery Date Today’s date

Item Number A2010

Quantity 7

The Item Availability Check window comes up automatically when you moveout of the Quantity field.

3-4-2 Look at the option Display Quantities in Other Warehouses from theAvailability Check window.

3-4-3 Choose Display Available-to-Promise Report from the Availability Checkwindow. Will new stock arrive in the warehouse soon?

_________________________________________________________

Choose Display Alternative Items from the Availability Check window. Howmany pieces of the alternative item A2020 are available?_________________________________________________________

3-4-4 Choose Change To Available Quantity from the Availability Checkwindow.

3-23

3-4-5 Add the alternative item to the sales order with a quantity of 2.

Field Name or Data Type ValuesItem Number A2020

Quantity 2

Save the sales order.

3-24

usiness Partners Solution

Unit: Sales-A/RTopic: Sales Process - Item Availability Check

3-1 How does the automatic availability check work?

3-1-1 How can you activate the automatic availability check for sales orders?You activate the automatic availability check for sales orders inAdministration System Initialization Document Settings.

3-1-2 Make sure that the automatic availability check for sales orders is activatedin your SAP Business One training system.Choose Administration System Initialization Document Settings.Select the Per Document tab.Choose the Document Sales Order and make sure that the checkbox forActivate Automatic Availability Check has been chosen.

3-2 You have two new items. Create the item master records and enter the quantitieswhich are already available.

3-2-1 Create the item master record.

Choose Inventory Item Master DataMake sure you are in Add mode.When you enter the following values, confirm the system message toupdate item information according to the item group chosen.

Field Name or Data Type Values

Item Number A2010

Description Fast Sheet Feed Scanner

Item Group Scanners(if the item group does notexist, use the Define Newfunction)

Price List Base Price

Unit Price 200

Choose Add.

3-25

3-2-2 You have 5 of the item in stock. Post the goods receipt with the followinginformation.

Choose Inventory Inventory Transactions Goods Receipt

Field Name or Data Type Values

Item Number A2010

Quantity 5

Price List Last Purchase Price

Price 200

Choose Add.Confirm the system message.

3-2-3 Create the second item master record.

Choose Inventory Item Master Data

Tip: Make sure you are in Add mode.When you enter the following values, confirm the system message toupdate item information according to the item group chosen.

Field Name or Data Type Values

Item Number A2020

Description USB Interface Ultra Scanner

Item Group Scanners

Price 150

Choose Add.

3-2-4 Post the goods receipt.

Choose Purchasing Goods Receipt PO

Field Name or Data Type Values

Vendor V10000

Item Number A2020

Quantity 20

Price 150

Choose Add.Confirm the system message.

3-26

3-3 You want to sell the USB Interface Ultra Scanner as an alternative item to the fastsheet fed scanner.

3-3-1 Define the item A2020 as the alternative item of item A2010.

Choose Inventory Item Management Alternative Items

Field Name or Data Type Values

Item Number A2010

Item Number A2020

Remarks Alternative scanner

Choose Add and then OK..

3-4 Your customer orders scanners.

3-4-1 Create the sales order.Choose Sales - A/R Sales Order

Field Name or Data Type Values

Customer C20000

Delivery Date Today’s date

Item Number A2010

Quantity 7

The Item Availability Check window comes up automatically when youmove out of the Quantity field.

3-4-2 Choose Display Quantities in Other Warehouses from the AvailabilityCheck window. There is nothing in other warehouses of item A2010available, so choose Cancel.

3-4-3 Choose Display Available-to-Promise Report from the Availability Checkwindow. There are currently no purchase orders or production orders forthis item. Choose OK.

3-4-4 Choose Display Alternative Items from the Availability Check window.There are 20 pieces of the alternative item A2020 available. ChooseCancel to close this window.

3-4-5 Choose Change To Available Quantity from the Availability Checkwindow. Choose OK.

3-4-6 Add the alternative item to the sales order with a quantity of 2.

3-27

Field Name or Data Type Values

Item Number A2020

Quantity 2

Choose Add.

3-28

Exercises

Unit: Sales – A/RTopic: Sales Process – Optional Exercises

At the conclusion of this exercise, you will be able to:

Describe how default customers are assigned

Create an A/R Invoice + Payment document

In this exercise, you will create an A/R Invoice + Payment. Firstyou will explore where the default customer is set up for thetransaction and how a default customer can be set by user. Thenyou will create an A/R Invoice + Payment and review thepayment options available.

4-1 Some of your customers purchase their goods directly from the warehouse andpay immediately.

4-1-1 Call up the relevant transaction. Which customer number displays by default,and where is this defined?

Choose Sales-A/R A/R Invoice + Payment.The system automatically proposes the customer C9999 (Default Customerfor A/R Invoice + Payment).You would like to view why this customer number is the default.Go to Administration Setup Financials G/L AccountDetermination.Choose the Sales tab, then the General sub-tab.See the field Default Customer for A/R Invoice and Payment.Using the default values in the user parameters, you can also assign a separatecustomer master record to each user for the A/R Invoice + Paymenttransaction. Choose Administration Setup General UsersChoose the dropdown in the Defaults field.To add a default, you would choose New.

4-1-2 Return to the sales document you were creating. Add an item (for exampleA00003) and item quantity.Choose Add to save the document.What does the system prompt you to enter?

3-29

You have to enter the customer's payment means to save this transaction.

4-1-3 What payment options are available?

The options available are Check, Bank Transfer, Credit Card and Cash.

4-1-4 Save the transaction as a cash payment.

Choose Add or choose the Payment Means icon.The Payment Means window opens.In the Payment Means window, choose the Cash tab.Choose the Total field.Press CTRL and B in the Total field.Choose OK to close the Payment Means window.In the A/R invoice window, choose Add.Confirm the system message.

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usiness Partners Solutions

Unit: Sales-A/RTopic: Sales Process – Optional Exercises

4-1 Some of your customers purchase their goods directly from the warehouse andpay immediately.4-1-1 Call up the relevant transaction. Which customer number displays by

default, and where is this defined?

Choose Sales-A/R A/R Invoice + Payment.The system automatically proposes the customer C9999 (Default Customerfor A/R Invoice + Payment).You would like to view why this customer number is the default.Go to Administration Setup Financials G/L AccountDetermination.Choose the Sales tab, then the General sub-tab.See the field Default Customer for A/R Invoice and Payment.

Using the default values in the user parameters, you can also assign aseparate customer master record to each user for the A/R Invoice +Payment transaction. Choose Administration Setup GeneralUsersChoose the dropdown in the Defaults field.To add a default, you would choose New.

4-1-2 Return to the sales document you were creating. Add an item (for exampleA00003) and item quantity.Choose Add to save the document.What does the system prompt you to enter?You have to enter the customer's payment means to save this transaction.

4-1-3 What payment options are available?

The options available are Check, Bank Transfer, Credit Card and Cash.4-1-4 Save the transaction as a cash payment.

Choose Add or choose the Payment Means icon.The Payment Means window opens.In the Payment Means window, choose the Cash tab.Choose the Total field.Press CTRL and B in the Total field.Choose OK to close the Payment Means window.In the A/R invoice window, choose Add.Confirm the system message.

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Exercises

Unit: Sales – A/RTopic: Returns, Credit Memos and Negative Rows

At the conclusion of this exercise, you will be able to:

Create correction documents for common situations in thesales process

Perform an exchange of items on an A/R invoice usingnegative rows

In this exercise, you create a sales order for a customer. When theorder is delivered, the customer notifies you that one of the itemswas damaged in transit, so you create a Return document. Afterthe delivery is invoiced, the customer informs you that one of theitems is not working properly. Therefore you create a creditmemo to return the item. Later on the customer realizes that theyneed to exchange one item for a different item. You then createan A/R invoice with positive and negative rows to perform theexchange.

5-1 Create a sales order for a customer.

5-1-1 Enter the following information:

Field Name or Data Type Values

Customer C42000Delivery Date Today’s date

Items C00008C00009

C00010I00005

Quantity 5 of each

Save the sales order.

Sales order number: ___________________________

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5-1-2 Deliver the sales order.Delivery number: ___________________________

5-1-3 The customer tells you that item C00009 was damaged in transit and wouldlike to return the quantity of 5 that they received. Create a Return document.

In the Remarks field, enter a note about why the customer returned the items.Save the Return document.Return Document Number: ___________________________

5-1-4 Invoice the sales order.

Add the invoice.A/R invoice number: ___________________________

5-1-5 The customer is displeased with how item C00010 is working and they wouldlike to return it. Create a credit memo to return the items.

In the Remarks field, add a note about why the customer returned the items.Save the credit memo document.Credit Memo number: ___________________________

5-1-6 The customer has realized that they need a different type of battery. Theywould like to exchange the item I00005 for item I00006. Complete theexchange using only one document.

Enter the following information:

Field Name or Data Type Values

Due Date Today’s date

Customer Reference No. <Your original invoicenumber>

Item1 I00005Quantity -5

Item2 I00006

Quantity 5

Remarks Customer is exchangingbatteries from invoice<number from invoice youcreated>

Save the A/R invoice.A/R invoice number: ___________________________

3-33

usiness Partners - Solutions

Unit: Sales-A/RTopic: Returns, Credit Memos and Negative Rows

5-1 Create a sales order for a customer. Choose Sales-A/R Sales Order.5-1-1 Enter the following information:

Field Name or Data Type Values

Customer C42000

Delivery Date Today’s date

Items C00008C00009

C00010I00005

Quantity 5 of each

Choose Add to save the order.

Sales order number: ___________________________5-1-2 Deliver the sales order.

Choose Sales-A/R Delivery.Enter customer C42000.Choose Copy from.

Choose Sales Orders.Choose the sales order you just created from the list.Choose Draw all Data and accept the defaults in for copying exchangerates in the Draw Document Wizard.Choose Finish.Choose Add to save the delivery.Delivery number: ___________________________Confirm the system message.

5-1-3 The customer tells you that item C00009 was damaged in transit and wouldlike to return the quantity of 5 that they received. Create a Returndocument.

Choose Sales-A/R ReturnsEnter customer C42000.Choose Copy from.

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Choose Deliveries.Choose the delivery from the list.In the Draw Document Wizard, select Customize.Choose Next.Select only C00009.Choose Finish.In the Remarks field, enter a note about why the customer returned theitems.Save the Return document by choosing Add.Return Document Number: ___________________________Confirm the system message with Yes.

5-1-4 Invoice the sales order.

Choose Sales-A/R A/R Invoice.Enter Customer number C42000.If you receive any messages about credit limit, confirm the messages.Choose Copy from.Choose Deliveries.Choose the delivery you just created.Choose Draw all Data in the Draw Document Wizard.Choose Add to save the invoice.A/R invoice number: ___________________________Confirm the system message with Yes.

5-1-5 The customer is displeased with how item C00010 is working and theywould like to return it. Create a credit memo to return the items.

Choose Sales-A/R A/R Credit MemoEnter customer C42000.Choose Copy from.Choose A/R Invoices.Choose the A/R invoice you just created from the list.In the Draw Document Wizard, select Customize.Choose Next.Select only C00010.Choose Finish.In the Remarks field, add a note about why the customer returned the items.Save the credit memo document by choosing Add.Credit Memo number: ___________________________Choose Yes to confirm the system message.

5-1-6 The customer has realized that they need a different type of battery. Theywould like to exchange the item I00005 for item I00006. Complete theexchange using only one document.

Choose Sales-A/R A/R Invoice.Enter customer C42000.If you receive messages about credit limit, confirm the messages.

3-35

Enter the following information:

Field Name or Data Type Values

Due Date Today’s date

Customer Reference No. <Your original invoicenumber>

Item1 I00005

Quantity -5

Item2 I00006

Quantity 5

Remarks Customer is exchangingbatteries from invoice<number from invoice youcreated>

Save the A/R invoice by choosing Add.A/R invoice number: ___________________________Choose Yes twice to confirm both system messages.

3-36

Fundamentals-– Exercises

Unit: InventoryTopic: Setting up Inventory: Items and Warehouses

At the conclusion of this exercise, you will be able to:

Name which values are defaulted from item groups into theitem master

Create item master records

Customize search windows for items

In this exercise, you review the default settings in the item groupfor scanners. You create item master records for two scanners.You customize settings for the list of items.

.

1-1 Check if an item group has been defined for scanners.

If the item group has not been defined for scanners, create an item group now.

Which default values for items are set at the item group level?

___________________________________________________________

1-2 Create item master records.

1-2-1 Create the item Photo Scanner.

Field Name or Data Type Values

Item Number A2000

Description Photo Scanner

Item Group Scanner

Choose Base Price List 60

Inventory Item Set indicator

4-1

Sales Item Set indicator

Purchased Item Set indicator

Choose the Purchasing Data tab page.

Field Name or Data Type Values

Preferred Vendor V10000

Length 18

Width 10

Height 4.5

Weight 3kg

1-2-2 Create the item Digital Flatbed Scanner.

Field Name or Data Type Values

Item Number A2001

Description Digital Flatbed Scanner

Item Grouping Scanners

Choose Base Price list 80Inventory Item Set indicator

Sales Item Set indicator

Purchased Item Set indicator

Choose the Purchasing Data tab page.

Field Name or Data Type Values

Preferred Vendor V10000

Length 14

Width 19

Height 6

Weight 5kg

4-2

1-3 Find item master records and work with the List of Items function.

1-3-1 Choose Item Master Data. In the Item Number field, type in A and chooseEnter or Find. Which item master records do you find?

___________________________________________________________

1-3-2 Customize the window List of Items.Into the first free row, enter the Field Name Item Group by using the drop-down list, for the Displayed Name, type in, for example, Group. Check thebox in the Group column and choose Update and OK.Cancel the List of Items, and start the search again by using Find. The List ofItems window opens again, but is now grouped by the item group. You canexpand one group by clicking + icon or you can choose Expand All to view allthe groups.

1-3-3 True or False: The changes to the List of Items function are applicable for allusers?

________________________________________________1-3-4 Restore the original settings in the List of Items window.

4-3

Items and Warehouses - Solutions

Unit: InventoryTopic: Setting up Inventory: Items and Warehouses

1-1 Check if an item group has been defined for scanners.

Choose Administration Setup Inventory Item GroupsIf the item group has not been defined for scanners, create an item groupnow.

Which default values for items are set at the item group level?The item group contains defaults for planning method, procurement method,order interval, order multiple, lead time, cycle group, and valuation method.

1-2 Create item master records.

1-2-1 Create the item Photo Scanner.

Choose Inventory Item Master Data.Make sure you are in Add mode.

When you enter the following values, confirm the system message toupdate item information according to the item group chosen.

Field Name or Data Type Values

Item Number A2000

Description Photo Scanner

Item Group Scanner

Choose Base Price List 60

Inventory Item Set indicator

Sales Item Set indicator

Purchased Item Set indicator

4-4

Choose the Purchasing Data tab page.

Field Name or Data Type Values

Preferred Vendor V10000

Length 18

Width 10

Height 4.5

Weight 3kg

Choose Add.

1-2-2 Create the item Digital Flatbed Scanner.

Choose Inventory Item Master Data.Make sure you are in Add mode.When you enter the following values, confirm the system message toupdate item information according to the item group chosen.

Field Name or Data Type Values

Item Number A2001

Description Digital Flatbed ScannerItem Grouping Scanners

Choose Base Price list 80

Inventory Item Set indicator

Sales Item Set indicatorPurchased Item Set indicator

Choose the Purchasing Data tab page.

Field Name or Data Type Values

Preferred Vendor V10000

Length 14

Width 19

Height 6

Weight 5kg

Choose Add.

4-5

1-3 Find item master records and work with the List of Items function.

1-3-1 Choose Item Master Data. In the Item Number field, type in A andchoose Enter or Find. Which item master records do you find?

The window List of Items opens, and the list contains all the itemsbeginning with A.

1-3-2 Customize the window List of Items.

List of Items Form Settings.Into the first free row, enter the Field Name Item Group by using thedrop- down list, for the Displayed Name, type in, for example, Group.Check the box in the Group column and choose Update and OK.Cancel the List of Items, and start the search again by using Find. TheList of Items window opens again, but is now grouped by the itemgroup. You can expand one group by clicking + icon or you canchoose Expand All to view all the groups.

1-3-3 True or False: The changes to the List of Items function are applicablefor all users?

True.

1-3-4 Restore the original settings in the List of Items window.

List of Items Form SettingsChoose the Restore Default button.Choose Update and then OK.Close all windows.

4-6

undamentals-– Exercises

Unit: InventoryTopic: Setting up Inventory – Batches and Serial

NumbersAt the conclusion of this exercise, you will be able to:

Create an item managed by batches

Create batches for items received into stock

Create an item managed by serial numbers

Automatically create serial numbers according to a pattern

Sell and deliver a serialized and batch-managed items

Run the serial number transaction report

In this exercise, you create items managed by both batches andserial numbers. You receive the items into inventory. Then yousell both items and deliver them to the customer. Afterwards, yourun the serial number transaction report to see transactions foryour newly created serial numbered items.

.

2-1 Create an item managed by batches.

2-1-1 Enter the following data in the item master data window.

Field Name or Data Type Values

Item No. DPC44Item Description Printer Cartridge, Black Ink

Unit Price (Base PricePricelist)

10

Manage Item By Batches

Management Method On Every Transaction

2-2 Create an item managed by serial numbers.

2-2-1 Enter the following information for the new item.

4-7

Field Name or Data Type ValuesItem No. K2000

Item Description Laptop Computer

Unit Price (Base PricePricelist)

700

Manage Item By Serial Number

Management Method On Every Transaction

2-3 Receive the vendor’s delivery of the batch-managed and serialized items intoinventory.

2-3-1 Create a goods receipt PO to receive the two items.

Field Name or Data Type Values

Vendor V1010

Item No. K2000

Quantity 5

Item No. DPC44

Quantity 150

Use the context menu to navigate to the Serial Number Setup window.

Create serial numbers by automatic creation for item K2000. The serialnumbers should run from K2-000001 through K2-000005. Use the browsebutton for the serial number field.

Field Name or Data Type Values

String K2-

Type String

Operator No Oper.

String 000001

Type Number

Operator Increase

You will see the newly created serial numbers listed in the Serial Numbers –Setup window.

In the Serial Numbers - Setup window, enter this additional information.

4-8

Field Name or Data Type Values

Manufacturing Date <2 weeks ago>

Mfr. Warranty Start <today>

Mfr. Warranty End <year from today>

Now it is time to enter the batch information for the second row in the BatchesSetup window.

Add two fields to the created batches section of the report using FormSettings.

Field Name or Data Type Values

Batch Attribute 1 Checkbox for Visible

Expiration Date Checkbox for Visible

Enter the following details for the batches in the Batches Setup window:

Field Name or Data Type Values

Batch 103

Quantity 50

Batch Attribute 1 Malaysia

Expiration Date Six months from today

Batch 104Quantity 50

Batch Attribute 1 Puerto Rico

Expiration Date 10 months from today

Batch 105

Quantity 50

Batch Attribute 1 Malaysia

Expiration Date 18 months from today

Update the batch information.Save the goods receipt PO.Goods Receipt PO number: ________________________

2-4 A customer wants to order 2 of each of these items.

2-4-1 Create a sales order

4-9

Field Name or Data Type Values

Customer C30000

Delivery Date <Today’s Date>

Item No. K2000

Quantity 1

Item No. DPC44

Quantity 10Add the sales order.Sales Order Number: _____________________________

2-4-2 Create a delivery for your sales order.

Copy the sales order information to a delivery. Choose a serial number foryour first itemChoose a batch for your second item.

Add the delivery.Delivery Number: _______________________________

2-4-3 Run the serial number transaction report.

Field Name or Data Type Values

Item No. from K2000

Which transactions are listed for K2000?

______________________________________________________

4-10

Items and Warehouses - Solutions

Unit: InventoryTopic: Setting up Inventory – Batches and Serial Numbers

2-1 Create an item managed by batches.

2-1-1 Open the item master data window.

Choose Inventory Item Master DataChoose the Add icon from the menu bar.

Field Name or Data Type Values

Item No. DPC44

Item Description Printer Cartridge, Black Ink

Unit Price (Base PricePricelist)

10

Manage Item By Batches

Management Method On Every Transaction

Choose Add.

2-2 Create an item managed by serial numbers.

2-2-1 Enter the following information for the new item.

Field Name or Data Type Values

Item No. K2000Item Description Laptop Computer

Unit Price (Base PricePricelist)

700

Manage Item By Serial Number

Management Method On Every Transaction

Choose Add.

4-11

2-3 Receive the vendor’s delivery of the batch-managed and serialized items intoinventory.

2-3-1 Create a goods receipt PO to receive the two items.

Choose Purchasing – A/P Goods Receipt PO

Field Name or Data Type ValuesVendor V1010

Item No. K2000

Quantity 5

Item No. DPC44

Quantity 150

Open the context menu by right-clicking on the first item’s quantity.Choose Batch/Serial Numbers.

The Serial Number – Setup window opens.Choose Automatic Creation.Choose the Browse Button <…> for the Serial Number field.Enter the information below:

Field Name or Data Type Values

String K2-

Type String

Operator No Oper.

String 000001

Type NumberOperator Increase

Choose OK.

You will see the newly created serial numbers listed in the SerialNumbers – Setup window.

In the Serial Numbers - Setup window, enter this additionalinformation.

Field Name or Data Type Values

Manufacturing Date <2 weeks ago>

Mfr. Warranty Start <today>

Mfr. Warranty End <year from today>

Choose Create.

4-12

Then choose Update and OK.

You have returned to the Goods Receipt PO main window. Now it istime to enter the batch information for the second row.

Open the context menu by right-clicking on the second row’s itemquantity. Choose Batch/Serial Numbers.

The Batches – Setup window opens.

Add two fields to the created batches section of the report.Choose Form Settings.Add fields from the Created Batches section.Select the radio button for Created Batches, then choose OK.

Add the following fields:

Field Name or Data Type Values

Batch Attribute 1 Checkbox for Visible

Expiration Date Checkbox for Visible

Choose OK.

In the Created Batches section of the Batches Set up window, enter thefollowing details:

Field Name or Data Type Values

Batch 103

Quantity 50

Batch Attribute 1 Malaysia

Expiration Date Six months from today

Batch 104

Quantity 50

Batch Attribute 1 Puerto Rico

Expiration Date 10 months from today

Batch 105

Quantity 50Batch Attribute 1 Malaysia

Expiration Date 18 months from today

Choose Update and OK.

Save the goods receipt PO by choosing Add.Goods Receipt PO number: ________________________Confirm the system message. Choose Yes.

4-13

2-4 A customer wants to order 2 of each of these items.

2-4-1 Create a sales order

Choose Sales – A/R Sales Order

Field Name or Data Type Values

Customer C30000

Delivery Date <Today’s Date>

Item No. K2000

Quantity 1

Item No. DPC44

Quantity 10Choose Add.Sales Order Number: _____________________________

2-4-2 Create a delivery for your sales order.

Open your sales order. Choose Copy To Delivery

Choose the serial number for your first item. Open the context menuand choose Batch/Serial Numbers.Choose one of the serial numbers shown by highlighting a row in theAvailable Serial Numbers section and using the arrow button (in themiddle) to move the selection to the Selected Serial Numbers section.Choose Update, then OK.

Choose a batch for your second item. Open the context menu andchoose Batch/Serial Numbers.Choose Auto Select for the system to choose the first batch.Choose Update, then OK.

Add the delivery.Delivery Number: _______________________________Choose Yes to confirm the system message.

2-4-3 Run the serial number transaction report.

Choose Inventory Inventory Reports Serial NumberTransactions Report.

Field Name or Data Type Values

Item No. from K2000

Choose OK.

4-14

The Serial Number Transaction Reports window opens.If there is more than one row, click on the row number of the row withthe serial number you delivered.

Which transactions are listed?

______________________________________________________

4-15

Fundamentals-– Exercises

Unit: InventoryTopic: Warehouse Management Goods Movements

At the conclusion of this exercise, you will be able to:

Create a warehouse

Create a goods receipt to a warehouse

Transfer items between warehouses

Create a goods issue from a warehouse

Run the Inventory in Warehouse report

In this exercise, you create a new regional warehouse for yourcompany. Then you proceed to receive items into the warehouse,transfer items between warehouses, and issue items out of thewarehouse. Then you run the Inventory in Warehouse report toview the stock situation

3-1 You have decided to add a new warehouse for your company.

3-1-1 Create a new warehouse and assign it the warehouse code 06 and the nameRegional Warehouse. Enter any domestic location, street, city and countryfor the warehouse.

Enter the following information on the General tab page:

Field Name or Data Type Values

Warehouse Code 06

Warehouse Name Regional

Location <any>

Street/City <any>

Country <Domestic>

Choose the accounting tab to view the default G/L accounts assigned to thewarehouse. Then add the warehouse to the system.

4-16

3-1-2 You have 10 units of item C00008 that have been refurbished. Create a goodsreceipt to receive them into the new warehouse.

Note: if the warehouse field does not appear, use Form Settings to add it to thedocument. A default warehouse may be set in Form Settings, so the otheroption is to restore the default settings.

Field Name or Data Type Values

Item No C00008

Quantity 5

Whse 06

Goods Receipt number: ______________

3-1-3 Add stock to the warehouse by sending 5 units of item C00010 fromwarehouse 01. Enter this delivery in SAP Business One by using the InventoryTransfer transaction.

Field Name or Data Type Values

From warehouse 01

Item No C00010

To Warehouse 06

Quantity 5

To check the quantity available in Warehouse 01 put the cursor in the ToWarehouse field and choose Ctrl+Tab.

Inventory Transfer Number: ____________

3-1-4 Run the Inventory in Warehouse report. How much stock is currently stored inthe new warehouse?

_______________________________________________________Which items and quantities are shown for inventory in this warehouse?

_______________________________________________________

3-1-5 There is a flood in the warehouse and 2 units of C00010 are so damaged thatyou will scrap these units. Post a goods issue from the warehouse for thisitem.

4-17

Field Name or Data Type Values

Item No C00010

Quantity 2

Whse 06

Remarks Scrapped damaged units

Goods Issue number: ___________

3-1-6 Check the current stock situation for item C00010 in warehouses 01 and 06.

4-18

Items and Warehouses - Solutions

Unit: InventoryTopic: Warehouse Management Goods Movements

3-1 You have decided to add a new warehouse for your company.

3-1-1 Create a new warehouse and assign it the warehouse code 06 and thename Regional Warehouse. Enter any domestic location, street, cityand country for the warehouse.

Choose Administration Setup Inventory Warehouses.

Enter the following information on the General tab page:

Field Name or Data Type Values

Warehouse Code 06Warehouse Name Regional

Location <any>

Street/City <any>

Country <Domestic>

Choose the accounting tab to view the default G/L accounts assignedto the warehouse.

Choose Add.

3-1-2 You have 10 units of item C00008 that have been refurbished. Createa goods receipt to receive them into the new warehouse.

Inventory Inventory Transactions Goods ReceiptNote: if the warehouse field does not appear, use Form Settings to addit to the document. A default warehouse may be set in Form Settings,so the other option is to restore the default settings.

Field Name or Data Type ValuesItem No C00008

4-19

Quantity 5

Whse 06

Goods Receipt number: ______________Choose Add.Confirm the system message.

3-1-3 Add stock to the warehouse by sending 5 units of item C00010 fromwarehouse 01. Enter this delivery in SAP Business One by using theInventory Transfer transaction.

Inventory Inventory Transactions Inventory Transfer

Field Name or Data Type Values

From warehouse 01

Item No C00010

To Warehouse 06

Quantity 5

To check the quantity available in Warehouse 01 put the cursor in theTo Warehouse field and choose Ctrl+Tab.

Inventory Transfer Number: ____________Choose Add.

3-1-4 How much stock is currently stored in the new warehouse?

Inventory Inventory Reports Inventory in Warehouse Report.Choose the By Warehouse tab.Enter Warehouse 06.Choose OKWhich items and quantities are shown for inventory in this warehouse?

_______________________________________________________

3-1-5 There is a flood in the warehouse and 2 units of C00010 are sodamaged that you will scrap these units. Post a goods issue from thewarehouse for this item.Choose Inventory Inventory Transactions Goods Issue.

Field Name or Data Type Values

Item No C00010

Quantity 2

Whse 06

Remarks Scrapped damaged units

4-20

Goods Issue number: ___________Choose Add.Confirm the system message to save the goods issue.

3-1-6 Check the current stock situation for item C00010 in warehouses 01and 06.

Choose Inventory Inventory Reports Inventory in WarehouseReport.Deselect all warehouses except 01 and 06.

4-21

Fundamentals-– Exercises

Unit: InventoryTopic: Pick and Pack

At the conclusion of this exercise, you will be able to:

Release items to a pick list

Select a pick list and enter quantities picked

Create a delivery from the Pick and Pack Manager

In this exercise, you use the pick and pack manager to releaseitems to a pick list, enter quantities picked and create a delivery.

.

4-1 Create a sales order.

4-1-1 Enter the following information:

Field Name or Data Type Values

Customer C42000

Delivery Date <Today’s date>

Item C00009Quantity 5

Item C00010

Quantity 5

Save the sales order.Sales Order number _______________________

4-22

4-2 You want to pick and deliver now the ordered items C00009 and C00011.

4-2-1 Release these items to the pick list.

Field Name or Data Type Values

Status Open

.

Check if you have enough of the items available, then release the items to thepick list.

4-2-2 Select the pick list you created and enter the picked quantities. You did notfind the full quantity of item C00009 in the warehouse; therefore you pickonly three pieces for that item. Pick the full quantity for the other item.

Field Name or Data Type Values

Status ReleasedEnter the picked quantities in the column Picked.

Field Name or Data Type Values

for Item C00009: Qty:3

for Item C00011: Qty:5

4-2-3 Create a delivery for your sales order directly from the pick and packmanager.

Field Name or Data Type Values

Status Picked

Delivery Number: _________________

The delivery contains only the picked items and quantities. Add the delivery.

4-2-4 Post the customer invoice for the delivery.

Field Name or Data Type Values

Customer C42000

A/R Invoice Number: _______________

4-23

Items and Warehouses - Solutions

Unit: InventoryTopic: Pick and Pack

4-1 Create a sales order. Choose Sales-A/R Sales Order.4-1-1 Enter the following information:

Field Name or Data Type Values

Customer C42000

Delivery Date <Today’s date>Item C00009

Quantity 5

Item C00010

Quantity 5

Choose Add to save the sales order.Sales Order number _______________________

4-2 You want to pick and deliver now the ordered items C00009 and C00011.

4-2-1 Release these items to the pick list.

Choose Inventory Pick and Pack Pick Pack Manager.

Field Name or Data Type Values

Status Open

Choose OK to run the report.

See in the column Avail.to Release, if you have enough of the itemsavailable.Select the checkboxes for the two items (C00009 and C00011) of yoursales order.Choose Release to Pick List.Choose Add.

4-24

4-2-2 Select the pick list you created and enter the picked quantities. Youdid not find the full quantity of item C00009 in the warehouse;therefore you pick only three pieces for that item. Pick the fullquantity for the other item.

Choose Inventory Pick and Pack Pick Pack Manager.

Field Name or Data Type Values

Status Released

Choose OK.Select the orange arrow link of the last Pick No. that you have justcreated in the previous exercise.

Enter the picked quantities in the column Picked.

Field Name or Data Type Values

for Item C00009: Qty:3

for Item C00011: Qty:5

Choose Update and OK.

4-2-3 Create a delivery for your sales order directly from the pick and packmanager.

Choose Inventory Pick and Pack Pick Pack Manager.

Field Name or Data Type Values

Status Picked

Choose OK.

Select the lines of the last two pick lists and choose Deliver.Delivery Number: _________________

The delivery contains only the picked items and quantities. Add thedelivery. Choose Yes.

Close all windows.

4-2-4 Post the customer invoice for the delivery.

Choose Sales-A/R A/R Invoice.

Field Name or Data Type Values

Customer C42000

Choose Copy from Deliveries.

4-25

Choose the delivery and copy all data.

Choose Finish.A/R Invoice Number: _______________

Choose Add and confirm the system message.

4-26

Fundamentals-– -– Exercises

Unit: InventoryTopic: Pricing

At the conclusion of this exercise, you will be able to:

Set a manual price

Ensure the right pricelist is chosen for a customerautomatically

Create a new pricelist

Calculate prices automatically with the last purchase price list

Set up special prices for a customer with quantity-baseddiscounts

Copy special prices from one customer to another

In this exercise, you explore various options in prices. You createa new item and manually set prices for multiple price lists. Youcreate a new customer and assign the appropriate price list. Thenyou check that the price list is determined automatically in a salesorder for that customer.

Next you create a new price list based on another price list. Youcheck that prices are determined automatically.

You create purchasing transactions to learn empirically how andwhen the last purchase price is determined in the system.

You set up special prices for customers. First you set a 10%discount for a particular item, then you add quantity-baseddiscounts for a different item. You test the prices by creating asales order for that customer. Later you extend these specialprices to another customer.

.5-1 Add a new item in the system and maintain prices manually.

5-1-1 Enter the following information for the new item.

Field Name or Data Type Values

Item T2002

4-27

Description Ergo Screen Monitor

Price List Base Price

150

Price List Regular Sales Price

400

Price List Small Account Sales Price

500

Maintain all the prices in the specified price lists for the item master record bychanging the dropdown in the field price list to each price list needed.

Alternately, you can save the item master record and enter the prices in theInventory Price Lists Price Lists menu by double-clicking each price listand entering the required price for the item.

5-2 Create a new customer, TC200, Smith Inc. Since this customer initially only orderssmall quantities, assign him your terms for stores. Assign the Small Accounts price listin the payment terms.

Field Name or Data Type Values

Code TC200

Customer

Name Smith Inc.

Group Small Accounts

5-2-1 Create a sales order for customer TC200 and item T2002. Make sure that the systemchooses the right price.

Field Name or Data Type Values

Customer TC200

Delivery Date Today’s date

Item T2002

Quantity 1

Check the price by displaying the item master record and comparing the price inthe document with the price in the Small Account Sales Price price list.

Sales Order Number: ______________Save the order.

4-28

5-2-2 Create a new price list called TestTip: In order to create a new price list, place your cursor on the row number andRight mouse click Add Row.

5-2-3 The base price list is the Base Price and the factor is 2Update the price list.

5-2-4 Create a new item T2004 (Easy Pixel Monitor) and assign it a purchase price(Base Price) of 300.00 units of your national currency.

Field Name or Data Type Values

Item T2004

Description Easy Pixel Monitor

Price List Base Price

300

5-2-5 Call up the Price List screen and go to your Test price list. Check the price ofyour item. What is the price for T2004?

____________________________________________________.

5-2-6 Create a sales order for customer TC200 and material T2004. What price list willbe used in the sales order?

____________________________________________________

Field Name or Data Type Values

Customer TC200

Delivery Date Today’s dateItem T2004

Make sure that the new Test price list (and not the price list in the customermaster record) is used in this document.

Add your sales order.Sales Order number: _____________________

4-29

5-3 Instead of entering purchase prices manually in the purchasing price list, you can alsoallow the system to calculate these prices automatically using the Last Purchase Pricesystem price list.Calculate prices automatically using the Last Purchase Price list.

5-3-1 Change the Base Price so that it is calculated based on the Last Purchase Pricelist.

Field Name or Data Type Values

Base Price List Last Purchase Price

Factor 1Choose Update.

5-3-2 Create a new item master, T2003 (Flat X-Large Monitor). Do not assign anyprice to this item. Check the price in the Last Purchase Price list.

Field Name or Data Type Values

Item T2003

Do not enter any price! Add the item.

Check the price in the Last Purchase Price list. Is there an entry for the lastpurchase price?______________________________________________________

5-3-3 Now order 10 units of the new item, T2003, from vendor V1010 at the price of250.00 units of your national currency. Create a goods receipt posting withreference to the purchase order. Then display the Base Price price list and checkwhether the last purchase price has updated the Base Price list.

Field Name or Data Type Values

Vendor V1010

Item T2003

Quantity 10

Unit Price 250

Add the purchase order.Purchase Order number: _________________________

4-30

Receive the items from the vendor.

Field Name or Data Type Values

Vendor V1010

Add the Goods Receipt PO.Goods Receipt PO number: __________________

Check the price lists again. Is the last purchase price updated?

_______________________________________________________

5-3-4 You can now post the AP invoice for item T2003 with a purchase price of 250.Check again whether the last purchase price has been updated and has thereforeupdated the other price lists.

Field Name or Data Type Values

Vendor V1010

Posting Date Today’s date

Add the A/P Invoice.A/P Invoice number: _______________________Is the last purchase price updated?

__________________________________________

5-3-5 Now find out if the prices related to other price lists have been calculated.Confirm the result by checking the situation in the Price Lists menu.

________________________________________________

________________________________________________

5-4 Special prices

5-4-1 You have agreed on a special discount of 10% of the store price (Small AccountSales Price price list) for the item C00008 with customer C23900.

Field Name or Data Type Values

BP Code C23900

4-31

Price List Small Account Sales Price

Item No. C00008

Discount Percentage 10

5-4-2 You have also negotiated a special price with quantity-based discounts for itemC00005 (5% discount as of two units, 10% as of four units) with the samecustomer. This quantity-based discount is to be valid for three months. Create asales order for 5 units for customer C23900 and materials C00008 and C00005.Add item C00005 to the special prices for business partners.

Field Name or Data Type Values

Item No. C00005

Price List Small Account Sales Price

Discount Percentage 0

Enter the following values in the Special Prices Volume Discount window.

Field Name or Data Type Values

Quantity. 2

Discount 5

Quantity 4

Discount 10

Create a sales order for 5 units of C00005 and C00008 and check that the pricesare correct.

Field Name or Data Type Values

Customer C23900

Delivery Date Today’s date

Item C00008

Quantity 5

Item C00005

Quantity 5

Add the sales order.Sales Order number: ___________________

4-32

Are the prices correct? ____________________________________

5-4-3 After lengthy negotiations, you agree to grant customer C30000 the sameconditions for items C00005 through C00008. Use the copy function for specialprices.

5-4-4 You want to grant customers C40000 and C42000 a special discount for selecteditem groups. Create a discount of 10% for the Scanners item group for customerC40000. Now copy the discount to customer C42000:

Inventory Price Lists Special Prices Discount Groups.

Now copy the discount to customer C42000 (Copy to Selection Criteria): In theselection field, enter customer C42000 (in the From and To fields) and choose OK.

Create a sales order and check the prices. Make sure that the item is assigned tothe Scanners item group. Then you can expand the Choose From List by theGroup column.

Field Name or Data Type Values

Customer C42000

Delivery Date Today’s date

Item A2000

Check the prices to ensure the customer receives the appropriate discount.Since this is only a check, choose Cancel to close the sales order.

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Items and Warehouses - Solutions

Unit: InventoryTopic: Pricing

5-1 Add a new item in the system and maintain prices manually.

5-1-1 Choose Inventory Item Master DataChange to Add mode.

Field Name or Data Type Values

Item T2002

Description Ergo Screen Monitor

Price List Base Price

150

Price List Regular Sales Price

400

Price List Small Account Sales Price

500

Maintain all the prices in the specified price lists for the item masterrecord by changing the dropdown in the field price list to each price listneeded.

Add the item.

Alternately, you can save the item master record and enter the prices in theInventory Price Lists Price Lists menu by double-clicking eachprice list and entering the required price for the item.

5-2 Create a new customer, TC200, Smith Inc.. Since this customer initially onlyorders small quantities, assign him your terms for stores. You can assign theSmall Accounts price list in the payment terms.

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Business Partners Business Partner Master DataChoose Data Add

Field Name or Data Type Values

Code TC200

CustomerName Smith Inc.

Group Small Accounts

Choose the price list Small Account Sales Price on the Payment Terms tabpage.Choose Add.

5-2-1 Create a sales order for customer TC200 and item T2002. Make sure that thesystem chooses the right price.

Choose Sales-A/R Sales Order

Field Name or Data Type Values

Customer TC200

Delivery Date Today’s date

Item T2002

Quantity 1Check the price by displaying the item master record and comparing theprice in the document with the price in the Small Account Sales Price pricelist.

Sales Order Number: ______________Save the order. Acknowledge any messages about lack of stock andchoose Add.

5-2-2 Create a new price list called Test

Inventory Price Lists Price Lists.In order to create a new price list, place your cursor on the row numberand Right mouse click Add Row.

5-2-3 The base price list is the Base Price and the factor is 2Save the price list by choosing Update.Close the confirmation window.Choose OK.

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5-2-4 Create a new item T2004 (Easy Pixel Monitor) and assign it a purchaseprice(Base Price) of 300.00 units of your national currency.

Inventory Item Master DataChoose the Add icon.

Field Name or Data Type Values

Item T2004

Description Easy Pixel Monitor

Price List Base Price

300Add the item.

5-2-5 Call up the Price List screen and go to your Test price list. Check the priceof your item.

Inventory Price Lists Price ListsSelect radio button Update Entire Price List

Double click on the Test price list.

The price of the new item is 600.00 units of national currency.

5-2-6 Create a sales order for customer TC200 and material T2004. What pricelist will be used in the sales order?

Choose Sales-A/R Sales Order.

Field Name or Data Type Values

Customer TC200Delivery Date Today’s date

Item T2004

The system will choose the Small Account Sales Price price list for thedocument. This price list is maintained in the business partner masterrecord (see above).

Make sure that the new Test price list (and not the price list in thecustomer master record) is used in this document.

Form Settings Document tab Table tab in order to assign the Testprice list to the document. Choose OK and answer the question, “Update

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prices in existing rows?” with Yes.The system then uses the price of the Test price list (600.00 units ofnational currency).Add your sales order.Sales Order number:_____________________

5-3 Calculate prices automatically using the Last Purchase Price list.5-3-1 Change the Base Price so that it is calculated based on the Last Purchase

Price list.Inventory Price Lists Price ListsFor the Base Price row, use the dropdown to set the following:

Field Name or Data Type Values

Base Price List Last Purchase Price

Factor 1

Choose Update.

5-3-2 Create a new item master, T2003 (Flat X-Large Monitor). Do not assignany price to this item. Check the price in the Last Purchase Price list. Thelist does not contain an entry yet.

Choose Inventory Item Master DataChoose Data Add.

Field Name or Data Type Values

Item T2003

Do not enter any price! Add the item.There is currently no price listed for T2003 in any price list.

5-3-3 Now order 10 units of the new item, T2003, from vendor V1010 at theprice of 250.00 units of your national currency. Create a goods receiptposting with reference to the purchase order. Then display the Base Priceprice list and check whether the last purchase price has updated the BasePrice list.

Purchasing-A/P Purchase Order.

Field Name or Data Type Values

Vendor V1010

Item T2003

Quantity 10

Unit Price 250

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Add the purchase order.Purchase Order number: _________________________

Receive the items from the vendor.

Purchasing-A/P Goods Receipt PO.

Field Name or Data Type Values

Vendor V1010

Copy from Purchase Orders.Choose your purchase order from the listIn the Draw Document Wizard, choose FinishAdd the Goods Receipt PO.Goods Receipt PO number: __________________Confirm the system message.

Choose Inventory Price Lists Price Lists in order to check the pricelists again.

The system will not automatically copy the last purchase price of 250.00units of the national currency until the AP invoice is entered.

5-3-4 You can now post the AP invoice for item T2003 with a purchase price of250. Check again whether the last purchase price has been updated andhas therefore updated the other price lists.

Choose Purchasing-A/P A/P Invoice.

Field Name or Data Type Values

Vendor V1010

Posting Date Today’s date

Copy from Goods Receipt PO.Choose your Goods Receipt PO from the listChoose Finish in the Draw Document WizardAdd the A/P Invoice.A/P Invoice number: _______________________Confirm the system message.

5-3-5 Now find out if the prices related to other price lists have been calculated.Confirm the result by checking the situation in the Price Lists menu.

Inventory Price Lists Price ListsYes, the price is updated.

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5-4 Special prices

5-4-1 You have agreed on a special discount of 10% of the store price (SmallAccount Sales Price price list) for the item C00008 with customerC23900.

Inventory Price Lists Special Prices Special Prices for BusinessPartners.

Field Name or Data Type ValuesBP Code C23900

Price List Small Account Sales Price

Item No. C00008

Discount Percentage 10

5-4-2 You have also negotiated a special price with quantity-based discounts foritem C00005 (5% discount as of two units, 10% as of four units) with thesame customer. This quantity-based discount is to be valid for threemonths. Create a sales order for 5 units for customer C23900 andmaterials C00008 and C00005, check the prices.

Add item C00005 to the special prices for business partners.

Inventory Price Lists Special Prices Special Prices forBusiness Partners.

Field Name or Data Type Values

Item No. C00005

Price List Small Account Sales Price

Discount Percentage 0

Select the row containing item C00005 and double-click to display a timeinterval.Enter today’s date in the Valid Until field.Double-click this interval to display the quantity scale.The Special Prices Volume Discount window appears.Enter a quantity-based discount (5% discount as of two units, 10% as offour units).

Field Name or Data Type Values

Quantity. 2

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Discount 5

Quantity 4

Discount 10

Add the record by choosing Update in each window, then OK.Choose Add and Yes.

Create a sales order for 5 units of C00005 and C00008 and check that theprices are correct.Choose Sales-A/R Sales Order

Field Name or Data Type Values

Customer C23900

Delivery Date Today’s dateItem C00008

Quantity 5

Item C00005

Quantity 5

Add the sales order.Sales Order number: ___________________

5-4-3 After lengthy negotiations, you agree to grant customer C30000 the sameconditions for items C00005 through C00008. Use the copy function forspecial prices.

Inventory Price Lists Special Prices Copy Special Prices toSelection Criteria.At header level, enter the business partner from whom you want to copythe special prices (C23900) and choose a selection of partners to whomyou want to copy the special prices (C30000 in the From and To fields).Items: Code From C00005 To C00008, radio-button: Replace All Items.Choose OKChoose Yes and OK.Choose Cancel to close the window.

5-4-4 You want to grant customers C40000 and C42000 a special discount forselected item groups. Create a discount of 10% for the Scanners itemgroup for customer C40000. Now copy the discount to customer C42000:

Inventory Price Lists Special Prices Discount Groups.Choose customer C40000 and select the tab Item Groups.

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For the item group Scanners, create a 10% discount.Choose the button Copy to Selection Criteria to copy the discountinformation to C42000.In the selection field, enter customer C42000 (in the From and To fields)and choose OK and Add.

Create a sales order and check the prices. Make sure that the item isassigned to the Scanners item group.

Sales-A/R Sales Order

Field Name or Data Type Values

Customer C42000

Delivery Date Today’s date

Item A2000

Check the prices to ensure the customer receives the appropriate discount.Since this is only a check, choose Cancel to close the sales order.

4-41

-– Exercises

Unit: InventoryTopic: MRP

At the conclusion of this exercise, you will be able to:

Define a forecast

Enter planning details in an item master record

Run MRP for a purchased item

Review and save MRP recommendations

In this exercise, you will run MRP for a purchased item.

First, you create an item master record with planning data forMRP and receive 20 into inventory. You create purchase ordersand sales orders in the system. You define a sales forecast forexpected future demand.

You create a new scenario in the MRP wizard for this item anddefine the data sources to be used. You run MRP and view therecommendations. After reviewing the recommendations forpurchase orders and recommendation details, you save the MRPrecommendations.

6-1 You have a new item with some open orders. Create the item master record and enterthe open orders.

6-1-1 Create an item master record for a laptop case.

Field Name or Data Type Values

Item Number X5000

Description Leather laptop caseBase Price 200

Preferred Vendor(on purchasing data tab)

V1010

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6-1-2 You receive 20 of the laptop cases from your vendor. Post a Goods ReceiptPO to receive them into stock.

Field Name or Data Type Values

Vendor V1010

Item No. X5000

Quantity 20

Goods Receipt PO number: _____________

6-1-3 You want to order the Quantity 30 of the Item no. X5000 with the DeliveryDate in two weeks. Create a purchase order with the Vendor V1010.

Field Name or DataType

Values

Vendor V1010

Delivery Date Two weeks from today

Item No. X5000

Quantity 30Add your purchase order.Purchase Order Number: ____________________

6-1-4 You have received a sales order from Customer C30000 for Item no. X5000with the Quantity 15 and the Delivery Date in one month. Create the salesorder in the system.

Field Name or DataType

Values

Customer C30000

Delivery Date One month from today

Item No. X5000

Quantity 15

Add your sales order.Sales Order number: ___________________

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6-1-5 Check the current stock situation for X5000 in the system by running theInventory Status report. You must have 20 in stock, 15 committed, 30 orderedand 35 available.

6-2 Define forecast.

6-2-1 You know from experience how the demand for leather laptop cases develops.Therefore you want to plan ahead. Define the following forecast for Item no.X5000 in the system.In two months: 50 piecesIn three months: 4 pieces(Forecast Code: 6-2-1, Forecast Name: Exercise 6-2-1)

Field Name or Data Type Values

Forecast Code 6-2-1

Forecast Name Exercise 6-2-1

Start Date Today + two months

End Date Today + three months

View Daily

Item No. X5000

Today + two months 50

Today + three months 4

Add the forecast.

6-3 Enter the planning data in the item master record.

6-3-1 You want to plan the item procurement for Item no. X5000 with the MRPsystem. Enter the required data in the Planning System field on the PlanningData tab page of the item master record.

Field Name or Data Type Values

Item Number X5000

Enter the following information on the Planning Data tab page:

Field Name or Data Type Values

Planning Method MRP

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6-3-2 The Item no. X5000 is a purchased item. You do not produce it so you wantMRP to generate purchase orders for it. Enter the required data in the itemmaster record.

Field Name or Data Type Values

Procurement Method Buy

6-3-3 You want to have purchase orders generated with a quantity of at least five ofItem no. X5000. Enter the required data in the item master record.

Field Name or Data Type Values

Minimum Order Qty. 5

6-3-4 You know, that you need at least three days for purchasing the Item no.X5000. You want to make sure that this is considered in the MRP-planning.Enter the required data in the item master record.

Field Name or Data Type Values

Lead Time. 3

6-4 Now you want to plan the requirements for item no. X5000 with the MRP-Wizard inthe system.

6-4-1 Carry out a MRP-run for a Item no. X5000 with the MRP Wizard.In Steps 1 and 2 you create a new MRP – Scenario (Scenario Name: 6-4-1,Description: Scenario 6-4-1) You want to plan in periods of 1 days fromtoday for the next four months. You want to run the MRP only for the Itemno. X5000. Save the scenario, so that you can use it again.

Choose MRP MRP WizardChoose NextChoose Create New Scenario

Field Name or Data Type Values

Scenario Name 6-4-1

Description Scenario 6-4-1

Choose Next

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Enter the following information on the Scenario Details window:

Field Name or Data Type ValuesView Data in Periods of 1 days

Start Date Today’s date

End Date Today + four months

Items CodeFrom X5000

To X5000

Save the scenario.

6-4-2 In Step 3 of the MRP-Wizard you define the data source for the MRP run.You want to consider the following Data sources: existing inventory,purchase orders, and sales orders. Assign the sales Forecast Exercise 6-2-1as additional data source. You only want to consider your stock from yourGeneral Warehouse 01.Enter the following information on the Data Source window:

Field Name or Data Type Values

Existing inventory x

Warehouses01 General Warehouse x

Purchase Orders x

Sales Orders x

Forecast Exercise 6-2-1

Run MRP.

6-4-3 How many purchase orders do you get recommended from the MRP results?________________________________________________________

6-4-4 What are the quantities and the due dates for the recommended purchaseorders?

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

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6-4-5 Change back from the recommendations to view the results of the MRP run.Why are the cells of the first three days grey?_________________________________________________________

_________________________________________________________

6-4-6 What are the levels of the initial stock, the gross requirements and the finalstock one month from today (the date of the due date of the sales order?)Expand the item row into the four composing rows.Initial Inventory: _____________________________Receipts: ___________________________________Gross Requirements: __________________________Final Inventory: ______________________________

6-4-7 How can you view the source of the gross requirement?

____________________________________________________.

6-4-8 Save the recommendations.

6-5 You have decided that you want to place the two purchase orders.

6-5-1 What is the easiest way to put the orders in the system?

_________________________________________________________

6-5-2 Create the purchase orders using the Order Recommendations transaction.

Enter the following information on the Order Recommendation– SelectionCriteria window:

Field Name or Data Type Values

Order Type All

Scenario 1-5-1Choose the option to create the two purchase orders.

4-47

Items and Warehouses - Solutions

Unit: InventoryTopic: MRP

6-1 You have a new item with some open orders. Create the item master recordand enter the open orders.

6-1-1 Create an item master record for a laptop case.

Choose Inventory Item Master DataChoose the Add icon.

Field Name or Data Type Values

Item Number X5000

Description Leather laptop case

Base Price 200Preferred Vendor

(on purchasing data tab)V1010

Add your item.

6-1-2 You receive 20 of the laptop cases from your vendor. Post a GoodsReceipt PO to receive them into stock.

Choose Purchasing-A/P Goods Receipt PO

Field Name or Data Type Values

Vendor V1010

Item No. X5000

Quantity 20

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Choose Add.Goods Receipt PO number: _____________Confirm the system message.

6-1-3 You want to order the Quantity 30 of the Item no. X5000 with theDelivery Date in two weeks. Create a purchase order with the VendorV1010.

Choose Purchasing – A/P Purchase Order

Field Name or DataType

Values

Vendor V1010

Delivery Date Two weeks from today

Item No. X5000Quantity 30

Add your purchase order.Purchase Order Number: ____________________

6-1-4 You have received a sales order from Customer C30000 for Item no.X5000 with the Quantity 15 and the Delivery Date in one month.Create the sales order in the system.

Choose Sales – A/R Sales Order

Field Name or DataType

Values

Customer C30000

Delivery Date One month from today

Item No. X5000

Quantity 15

Add your sales order.Sales Order number: ___________________Confirm the system message.

6-1-5 Check the current stock situation in the system. You must have 20 instock, 15 committed, 30 ordered and 35 available.

Choose Inventory Inventory Reports Inventory StatusEnter X5000 in the Code “From…” fieldChoose OK.

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6-2 Define forecast.

6-2-1 You know from experience how the demand for leather laptop casesdevelops. Therefore you want to plan ahead. Define the followingforecast for Item no. X5000 in the system.In two months: 50 piecesIn three months: 4 pieces(Forecast Code: 6-2-1, Forecast Name: Exercise 6-2-1)

Choose MRP ForecastsData Add

Field Name or Data Type Values

Forecast Code 6-2-1Forecast Name Exercise 6-2-1

Start Date Today + two months

End Date Today + three months

View Daily

Item No. X5000

Today + two months 50

Today + three months 4

Choose Add.

6-3 Enter the planning data in the item master record.

6-3-1 You want to plan the item procurement for Item no. X5000 with theMRP system. Enter the required data in the Planning System field onthe Planning Data tab page of the item master record.Choose Inventory Item Master Data

Field Name or Data Type Values

Item Number X5000

Enter the following information on the Planning Data tab page:

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Field Name or Data Type Values

Planning Method MRP

6-3-2 The Item no. X5000 is a purchased item. You do not produce it so youwant MRP to generate purchase orders for it. Enter the required data inthe item master record.Enter the following information on the Planning Data tab page:

Field Name or Data Type ValuesProcurement Method Buy

6-3-3 You want to have purchase orders generated with a quantity of at leastfive of Item no. X5000. Enter the required data in the item masterrecord.Enter the following information on the Planning Data tab page:

Field Name or Data Type Values

Minimum Order Qty. 5

6-3-4 You know, that you need at least three days for purchasing the Itemno. X5000. You want to make sure that this is considered in the MRP-planning. Enter the required data in the item master record.Enter the following information on the Planning Data tab page:

Field Name or Data Type Values

Lead Time. 3

Choose Update then OK.

6-4 Now you want to plan the requirements for item no. X5000 with the MRP-Wizard in the system.

6-4-1 Carry out a MRP-run for a Item no. X5000 with the MRP Wizard.In Steps 1 and 2 you create a new MRP – Scenario (Scenario Name: 6-4-1, Description: Scenario 6-4-1) You want to plan in periods of 1days from today for the next four months. You want to run theMRP only for the Item no. X5000. Save the scenario, so that you canuse it again.

Choose MRP MRP Wizard

Choose Next

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Choose Create New Scenario

Field Name or Data Type Values

Scenario Name 6-4-1

Description Scenario 6-4-1

Choose Next

Enter the following information on the Scenario Details window:

Field Name or Data Type Values

View Data in Periods of 1 days

Start Date Today’s date

End Date Today + four months

Items CodeFrom X5000

To X5000

Choose Save Scenario.

Choose Next.

6-4-2 In Step 3 of the MRP-Wizard you define the data source for the MRPrun. You want to consider the following Data sources: existinginventory, purchase orders, and sales orders. Assign the salesForecast Exercise 6-2-1 as additional data source. You only want toconsider your stock from your General Warehouse 01.

Enter the following information on the Data Source window:

Field Name or Data Type ValuesExisting inventory x

Warehouses

01 General Warehouse x

Purchase Orders x

Sales Orders x

Forecast Exercise 6-2-1

Choose Run.

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6-4-3 How many purchase orders do you get recommended from the MRPresults?Choose View Recommendations.You get two recommendations for purchase orders.

6-4-4 What are the quantities and the due dates for the recommendedpurchase orders?

The system recommends 15 on the first purchase order and 5 on thesecond.For the first there are 35 left from the initial stock for the grossrequirement (from the first forecasted quantity) of 50.The quantity of the second recommendation for a purchase order is 5.The gross requirement from the second forecast is 4. But you haveentered a Minimum order quantity of 5 in the planning data of the itemmaster record of Item no. X5000.The due dates equal the forecasted dates (in two months and in threemonths).

6-4-5 Change back from the recommendations to view the results of theMRP run. Why are the cells of the first three days grey?Choose View Results.Dark gray cells define dead periods, where if a requirement exists, thelead time is too long to permit timely procurement.

6-4-6 What are the levels of the initial stock, the gross requirements and thefinal stock one month from today (the date of the due date of the salesorder?)Expand the item row into the four composing rows.Initial Inventory: 50 (today’s initial stock 20 + receipt from purchaseorder 30)Receipts: emptyGross Requirements: 15 (sales order quantity)Final Inventory: 35 (initial stock – gross requirements)

6-4-7 How can you view the source of the gross requirement?Click on the quantity on the gross requirements line item for theexpanded purchase order.The Pegging Information window displays.

6-4-8 Save the recommendations.

Choose Save Recommendations.Choose Finish.Confirm the system message.

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6-5 You have decided that you want to place the two purchase orders.

6-5-1 What is the easiest way to put the orders in the system?Now that you have the saved the recommendations for the twopurchase orders from the MRP-run, the easiest way to create thepurchase orders is to do it via the Order Recommendation Report.

6-5-2 Create the purchase orders.

Choose MRP Order Recommendation Enter the following information on the Order Recommendation–Selection Criteria window:

Field Name or Data Type Values

Order Type All

Scenario 1-5-1

Choose OK.

In the Order Recommendation window: Select the checkbox Createfor the two rows with the purchase orders.

Choose Update.Choose OK to confirm the system message.

4-54

-– Exercises

Unit: ProductionTopic: Bills of Material (BOMs)

At the conclusion of this exercise, you will be able to:

Define a sales bill of materials

Update parent prices in a bill of materials

Discuss the uses of the different types of bills of materials

In this exercise, you create a sales bill of materials. You changethe price of the components in the BOM, then update the parentprice based on the components.

1-1 You want to define a sales BOM for a PC set.

1-1-1 First create a (header) item, VS001 (Basic PC Set) in inventory management.The item belongs to the item group PCs. Do not enter any price.

Field Name Value

Item No. VS001

Description Basic PC SetItem Group PCs

Change the category of the item to be appropriate for a sales bill of materials.Save your item.

5-1

1-1-2 Now define the sales BOM for the PC set in the Production menu. As pricelist, choose Base Price. The PC set includes one unit each of item below. Theprice for the PC set is calculated from the component prices.

Field Name Value

Product No. VS001

Quantity 1

BOM Type Sales

Price List Base Price

Item C00008

Quantity 1

Item C00009

Quantity 1Item C00010

Quantity 1

Copy the total of the component prices into the Product Price field.

Save the bill of materials.

1-1-3 Create a sales order for customer C20000, who wants to buy five PC sets.

Field Name Value

Customer C20000Delivery Date Today’s date

Item No. VS001

Quantity 5

What items appear in the order?________________________________________________________

Add the sales order.

1-1-4 What items would display if you had created item VS001 as a productionBOM?_________________________________________________________

5-2

1-2 Update Parent Item Prices: The price of a component of the sales BOM VS001changes.

1-2-1 Change the price of the component C00009 in the Base Price list. Check inthe base price list whether the base price of the parent item VS001 has alsochanged.

Has the price for VS001 has changed in the list?_____________________________________________________

1-2-2 Using what report can the system determine the BOMs affected by the changeof price for component C00009?

______________________________________________________________

1-2-3 Choose the report; all changes caused by the child item C00009 should beselected. Finally update the parent price.

1-2-4 Check the result in the Price Lists menu, directly in the item master record orin the BOM.

1-3 The types of BOM and the item master records of the finished product:

1-3-1 What type of BOM is the only one that can be used for MRP andproduction orders?

______________________________________________________

1-3 2 Do you need an item master record for the finished product (parent item) ofthe production BOM?

_______________________________________________________

1-3-3 Do you need an item master record for the finished product (parent item) ofa template or a sales BOM?

________________________________________________________

1-3-4 What item category is required in an item master of the finished product of asales BOM?_________________________________________________________

5-3

Production - Solution

Unit: ProductionTopic: Bills of Material (BOMs)

1-1 You want to define a sales BOM for a PC set.

1-1-1 First create a (header) item, VS001 (Basic PC Set) in inventorymanagement. The item belongs to the item group PCs. Do not enter anyprice.

Choose Inventory Item Master Data.Choose Data Add.

Field Name Value

Item No. VS001

Description Basic PC Set

Item Group PCs

Change the category of the item to be appropriate for a sales bill ofmaterials.Uncheck Inventory Item and Purchased Item, leaving only Sales Itemchecked. Save your newly created item by choosing Add.

1-1-2 Now define the sales BOM for the PC set in the Production menu. As pricelist, choose Base Price. The PC set includes one unit each of item below.The price for the PC set is calculated from the component prices.

Choose Production Bill of Materials.Choose Data Add.

Field Name Value

Product No. VS001

Quantity 1

BOM Type Sales

Price List Base Price

Item C00008

Quantity 1

Item C00009

Quantity 1

5-4

Item C00010

Quantity 1

Copy the total of the component prices into the Product Price field byselecting the arrow above the Product Price field. Finally, choose Add.

1-1-3 Create a sales order for customer C20000, who wants to buy five PC sets.What items appear in the order?

Choose Sales – A/R Sales Order.

Field Name Value

Customer C20000

Delivery Date Today’s date

Item No. VS001

Quantity 5

You can see both the header item and the components in the order.Save your order by choosing Add.

1-1-4 What items would display if you had created item VS001 as a productionBOM?In production BOMs, you can only see the header item in the order.

1-2 Update Parent Item Prices: The price of a component of the sales BOM VS001changes.

1-2-1 Change the price of the component C00009 in the Base Price list. Checkin the base price list whether the base price of the parent item VS001 hasalso changed.

Inventory Price Lists Price ListsDouble-click the line with Base Price.Change the price for C00009.Now look to see if the price for VS001 has changed in the list.No, the price of the parent item VS001 has not changed.

1-2-2 Using what report can the system determine the BOMs affected by thechange of price for component C00009?

Choose Production Update Parent Item Prices Globally.

1-2-3 Choose the report; all changes caused by the child item C00009 should beselected. Finally update the parent price.

In the window Update Parent Item Prices – Selection Criteria:All Price Lists,Code From C00009 to C00009,

5-5

Selection Criterion Component Items, choose OK.

In order to display the entire bill of material and the price situation selectthe orange drill down icon in front of the parent item or choose the Expandbutton.Select the Update checkbox in the respective parent item row, and thenchoose the Update button.

1-2-4 Check the result in the Price Lists menu, directly in the item master recordor in the BOM.

Use one of the following three menu paths:Option 1: Inventory Price Lists Price ListsOption 2: Inventory Items Master DataOption 3: Production Bill of Materials.

1-3 The types of BOM and the item master records of the finished product:

1-3-1 What type of BOM is the only one that can be used for MRP andproduction orders?

The production BOM.1-3 2 Do you need an item master record for the finished product (parent item) of

the production BOM?Yes, you need an item master record for the finished product.

1-3-3 Do you need an item master record for the finished product (parent item) ofa template or a sales BOM?

Yes, you have to create an item master record for each finished product.1-3-4 What item category is required in an item master of the finished product of

a sales BOM?For the sales BOM the finished product has to be a sales item.

5-6

-– Exercises

Unit: ProductionTopic: Production Process

At the conclusion of this exercise, you will be able to:

Create a production order

Release the order to the shop floor

Report completion of a production order

Close a finished production order

In this exercise, you create a sales order for an item to bemanufactured. You review an existing production bill ofmaterials to see how the components are issued. You create aproduction order and link the sales order to it. You release theproduction order to shop floor. When manufacturing is finished,you report completion of the production order and review theinventory status. You close the production order and deliver theitem to the customer.

2-1 The production order types

2-1-1 What types of production order does the SAP Business One system support?

_________________________________________________________

2-1-2 You want to produce a PC Set. The BOM for the PC Set already exists in thesystem. What type of production order do you use in the SAP Business Onesystem?

__________________________________________________________

2-2 You have received a sales order for 5 PC sets (item P10003) that have to be producedfirst before they can be delivered.

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2-2-1 Create a sales order for customer C20000 for 5 PC Sets, Item no. P10003

Field Name Value

Customer C20000

Delivery Date Today’s date

Item No. P10003

Quantity 5

Save the sales order and record the number _______________.

2-2-2 Display the BOM of P10003. What is the issue method of its components?_____________________________________________________

2-2-3 Create the production order for the 5 PC Sets in the system.

Field Name or Data Type Value

Type Standard

Status Planned

Product No. P10003

Due Date Today’s date

Planned Quantity 5

Add the production order.

2-2-4 What is the inventory status for the finished product P10003 and thecomponent A00003?

From…field P10003 A00003

In Stock

Committed

Ordered

2-2-5 You want to link the sales order to the production order. Enter the sales ordernumber of exercise 2-2-1 in the production order.

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Field Name or Data Type Value

Sales order Sales order number createdin exercise 2-2-1

If you do not remember the number, use the drop down box in the sales orderfield in the production order to find it.Do not update the production order yet. You will choose update after youchange the status in exercise step 2-2-7.

2-2-6 What is the status of the production order?

______________________________________

2-2-7 The production has started. Change the Status of the production order toReleased.

2-2-8 You receive a message from production that all 5 PC Sets are finished. Reportthe full completion of the production order.

2-2-9 What is the inventory status for the finished product P10003 and thecomponent A00003?

P10003 A00003

In Stock

Committed

Ordered

2-2-10 Manufacturing is over. Close the production order

2-2-11 Create the delivery of the 5 PC Sets to the sales order of exercise 2-2-1.

Field Name Value

Customer C20000Add your delivery.Delivery number: _______________________

5-9

Production - Solution

Unit: ProductionTopic: Production Process

2-1 The production order types

2-1-1 What types of production order does the SAP Business One system support?

Standard production order, special production order and disassemblyproduction order.

2-1-2 You want to produce a PC Set. The BOM for the PC Set already exists inthe system. What type of production order do you use in the SAP BusinessOne system?The standard production order.

2-2 You have received a sales order for 5 PC sets (item P10003) that have to beproduced first before they can be delivered.

2-2-1 Create a sales order for customer C20000 for 5 PC Sets, Item no. P10003.Choose Sales – A/R Sales Order

Field Name Value

Customer C20000

Delivery Date Today’s date

Item No. P10003

Quantity 5

Save the sales order and record the number _______________.

2-2-2 Display the BOM of P10003. What is the issue method of its components?Choose Production Bill of MaterialsProduct No. P10003Choose Find. Scroll right to the column Issue Method. The issue method isBackflushThe components will be issued automatically when you report thecompletion of the finished product.

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2-2-3 Create the production order for the 5 PC Sets in the system.Choose Production Production Order

Field Name or Data Type Value

Type Standard

Status Planned

Product No. P10003

Due Date Today’s date

Planned Quantity 5Choose Add.

2-2-4 What is the stock status for the finished product P10003 and thecomponent A00003?Choose Inventory Inventory Reports Inventory StatusRun the report separately for each item number.

From…field P10003 A00003

In Stock

Committed

Ordered

2-2-5 You want to link the sales order to the production order. Enter the salesorder number of exercise 2-2-1 in the production order.

Choose Production Production Order

Field Name or Data Type Value

Sales order Sales order number createdin exercise 2-2-1

If you do not remember the number, use the drop down box in the salesorder field in the production order to find it.Do not update the production order yet. You will choose update after youchange the status in exercise step 2-2-7.

2-2-6 What is the status of the production order?Choose Production Production OrderStatus: Planned

2-2-7 The production has started. Change the Status of the production order toReleased.Change Status to Released

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Update the production order.

2-2-8 You receive a message from production that all 5 PC Sets are finished.Report the full completion of the production order.Open your production order.Choose either the menu path Go to Report Completionor right mouse-click Report CompletionChoose Add in the Receipt for Production window, and then accept thesystem message.

2-2-9 What is the stock status for the finished product P10003 and thecomponent A00003?Choose Inventory Inventory Reports Inventory Status

P10003 A00003

In Stock

Committed

Ordered

2-2-10 Manufacturing is over. Close the production orderChoose Production Production OrderChoose Last Data Record icon.Change Status to ClosedChoose Update.

2-2-11 Create the delivery of the 5 PC Sets to the sales order of exercise 2-2-1.Choose Sales – A/R Delivery

Field Name Value

Customer C20000Copy from Sales OrdersChoose your sales order.In the Draw Document Wizard, choose Finish.Add your delivery.

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Service - -– Exercise

Unit: ServiceTopic: Service covered by Warranty Contract

At the conclusion of this exercise, you will be able to:

Create a contract template and assign it to an item masterrecord

Automatically generate a contract and customer equipmentcard with for a delivered item

Create a service call

Enter a solution

Resolve a service call

In this exercise, you create a contract template and assign it to anitem master record. Then you sell and deliver the item with anA/R invoice. You check the contract and customer equipmentrecord that are automatically created. When the customer callswith an issue, you create a service call. You see how the systemautomatically calculates the response time and resolution timefrom the contract. You solve the problem and enter the solution inthe knowledge base. Then you enter the resolution and close thecall.

1-1 Use contract templates.1-1-1 Create a contract template with the following information.

Field Name or Data Type Values

Name 3 Year Warranty

Duration 36 Months

Contract Type Select Serial Number.

Resolution Time 3 Day(s)

Description 3 year warranty

Select all working days and deselect all non-working days.

Enter 8:00AM in the Start Time fields and 5:00PM in the End Time fields.Deselect Including Holidays.

Select Parts.

6-1

Choose Add.1-1-2 Enter the contract template in the item master record for S1000 and change

the contract template to 3 Year Warranty.

1-2 Post the sale of items with warranty.

1-2-1 Create A/R invoice.

Field Name or Data Type Values

Customer C20000

Item No. S10000

Quantity 2

Select two serial numbers from the available serial numbers.Add the A/R invoice.

1-2-2 Check customer equipment cards and service contract.View the customer equipment card for the customer C20000 and the itemS10000.How many customer equipment cards were created?

_________________________________________________________Search for all service contracts of the type Serial Number for the customerC20000 and the item S10000.How many service contracts were created?

____________________________________________________________

1-3 Service Call

1-3-1 Create a service call.

Field Name or Data Type Values

Customer C20000

Mfr Serial No. <Select one of the customerequipment cards>

Subject Disconnected from network

Origin Telephone

How long do you have to solve the problem?___________________________________________________

1-3-2 Post a solution to a problem in the service call.

Field Name or Data Type Values

Content tab text Solution suggested

Closed (Checkbox) Selected

6-2

Add another activity for the customer response.

Field Name or Data Type Values

Details Solution confirmed bycustomer

Closed Checkbox Selected

1-3-3 Enter resolution and close call.Enter any resolution text, such as “customer rebooted server”, “showedcustomer how to find IP address”, or “searched for available networkconnections”.

Field Name or Data Type Values

Call Status Closed

1-3-4 Maintain the solutions knowledge base.

Field Name or Data Type Values

Item S10000

Solution Reboot server

Symptom Disconnected from network

Enter the cause and status on the Description tab.

Field Name or Data Type Values

Cause Network disconnection

Status Publish

Add the solution.

6-3

Service - Solution

Unit: ServiceTopic: Service covered by Warranty Contract

1-1 Use contract templates.

1-1-1 Create a contract template.

Choose Administration Setup Service Contract Templates.

Field Name or Data Type Values

Name 3 Year Warranty

Duration 36 Months

Contract Type Select Serial Number.

Resolution Time 3 Day(s)

Description 3 year warranty

Select all working days and deselect all non-working days.

Enter 8:00AM in the Start Time fields and 5:00PM in the End Time fields.Deselect Including Holidays.

Select Parts.Choose Add.

1-1-2 Enter the contract template in the item master record.

Choose Inventory Item Master Data.Find the item S10000 and change the contract template to 3 YearWarranty in the Warranty Template field on the General tab.

1-2 Post the sale of items with warranty.

1-2-1 Create A/R invoice.

Choose Sales – A/R A/R Invoice.

Field Name or Data Type Values

Customer C20000

Item No. S10000

Quantity 2

Select the Quantity field and select CTRL+TAB.

6-4

Select two serial numbers from the available serial numbers and move tothe selected serial numbers.

Select Update.Choose OK.

Choose Add. Choose Yes to confirm the system message.1-2-2 Check customer equipment cards and service contract.

Choose Service Customer Equipment Card.Search for all customer equipment cards for the customer C20000 and theitem S10000.The system created one customer equipment card for every single solditem.

Choose Service Service Contract.Search for all service contracts of the type Serial Number for the customerC20000 and the item S10000.The system created only one service contract for all items.

1-3 Service Call1-3-1 Create a service call.

Choose Service Service Call.

Field Name or Data Type Values

Customer C20000

Mfr Serial No. <Select one of the customerequipment cards>

Subject Disconnected from network

Origin Telephone

You should have three days to solve the problem within the servicecontract.

Choose Update.1-3-2 Post a solution to a problem.

Choose Service Service Call and go into the service call. You couldalso run the My Service Calls report for this to choose your service calldocument.

Open the service call.Choose the Activities tab.

Choose Activity.

Field Name or Data Type Values

Content tab text Solution suggested

6-5

Closed (Checkbox) Selected

Choose Add. Confirm with Yes.Add another activity for the customer response.

Choose Activity.

Field Name or Data Type Values

Details Solution confirmed bycustomer

Closed Checkbox Selected

Choose Add. Confirm with Yes.

1-3-3 Enter resolution and close call.Choose Resolution tab.

Enter any resolution text, such as “customer rebooted server”, “showedcustomer how to find IP address”, or “searched for available networkconnections”.

Field Name or Data Type Values

Call Status Closed

Choose Update.

Choose OK.1-3-4 Maintain the knowledge base.

Choose Service Solutions Knowledge Base.

Choose Data Add.

Field Name or Data Type Values

Item S10000

Solution Reboot server

Symptom Disconnected from network

Choose Description tab.

Field Name or Data Type Values

Cause Network disconnection

Status Publish

Choose Add.

6-6

Service - -– Exercise

Unit: ServiceTopic: Service Call with Invoice

At the conclusion of this exercise, you will be able to:

Create a service call

View the My Service Calls report

Enter expenses for the repair

Create an invoice from within the service call

In this exercise, you create a service call for the same equipmentas in the prior exercise. This time, it will need a technician’s visitto solve the problem. You will then play the part of the technicianand run My Service Calls to view your assigned service calls.After completing the repair, you enter what repair steps you havetaken and what expenses were incurred. You invoice thecustomer for the work done and mark any items covered bywarranty. Then you close the service call and update the solutionknowledge base.

2-1 Create a service call for the same equipment as previously. This time the serverwill need a technician visit and will have expenses not covered by the contract.

2-1-1 Create the service call

Field Name or Data Type Values

Customer C20000

Mfr Serial No. <Select one of the customerequipment cards>

Subject Does not stay connected

Priority High

Origin E-mail

.2-1-2 Open the service call. View prior solutions to this type of problem.

Unfortunately the suggested solution will not work this time, so you offerto send a technician to the customer to repair the unit.

Enter a remark to indicate that a technician must be sent.

6-7

Update the service call.

2-1-3 You now play the part of the technician. Open the My Service Calls reportto view calls assigned to you as a technician.

Open the service call from the report.Enter a resolution. Enter any resolution text stating that you traveled tocustomer site and replaced the network card.Enter expenses on the Expenses tab. Create an invoice for the customer.Add items to represent the network card, the hourly service labor chargefor 2 hours of work and travel expense for less than 100 miles. Put a 100%discount on the first item because it is covered by the warranty.

Field Name or Data Type Values

Item C00006

Quantity 1

Discount (row) 100

Item LB0002

Quantity 2

Item TR0001

Quantity 1

Choose Add.Change the call status to Closed and update the service call.

2-1-4 Maintain the knowledge base.

Field Name or Data Type Values

Item S10000

Solution Replace network card

Symptom Cannot connect to network

Enter the following information.

Field Name or Data Type Values

Cause Network card failure

Status Publish

6-8

Service - Solution

Unit: ServiceTopic: Service Call with Invoice

2-1 Create a service call for the same equipment as previously. This time the serverwill need a technician visit and will have expenses not covered by the contract.2-1-1 Create the service call

Choose Service Service Call.

Field Name or Data Type Values

Customer C20000

Mfr Serial No. <Select one of the customerequipment cards>

Subject Does not stay connected

Priority High

Origin E-mail

You should have three days to solve the problem within the servicecontract.Choose Update and OK.

2-1-2 Open the service call. View prior solutions to this type of problem.Choose the Solutions tab.

Choose Recommend.Unfortunately the suggested solution will not work this time, so you offerto send a technician to the customer to repair the unit.Choose the Remarks tab.

Enter a remark to indicate that a technician must be sent.Choose Update.

2-1-3 You now play the part of the technician. Open the My Service Calls reportto view calls assigned to you as a technician.

Choose Service Service Reports My Service Calls.Open the service call from the report.Enter a resolution on the Resolution tab.

Enter any resolution text stating that you traveled to customer site andreplaced the network card.

6-9

Enter expenses on the Expenses tab.Choose Expenses Detail.

Choose New Document.Choose Invoice.

Add items to represent the network card, the hourly service labor chargefor 2 hours of work and travel expense for less than 100 miles. Put a 100%discount on the first item because it is covered by the warranty.

Field Name or Data Type Values

Item C00006

Quantity 1

Discount (row) 100

Item LB0002

Quantity 2

Item TR0001

Quantity 1

Choose Add.Accept system messages stating that there are charges not allowed underthe contract, and choose Continue.Change the call status to Closed.

Choose Update and OK.2-1-4 Maintain the knowledge base.

Choose Service Solutions Knowledge Base.

Choose Data Add.

Field Name or Data Type Values

Item S10000

Solution Replace network card

Symptom Cannot connect to network

Choose Description tab.

Field Name or Data Type Values

Cause Network card failure

Status Publish

Choose Add.

6-10

MRP - Exercise

Unit: Integrated Case Study Exercise

At the conclusion of this exercise, you will be able to:

Complete process steps for multiple processes in SAP Business One.

You will create the master data for a manufactured item that is controlledby serial number. You will create a sales order for the item and then runMRP to fill the demand generated by the sales order. MRP willrecommend a purchase order for at least one component as well as theproduction order. You will create the recommended documents andfollow the process steps. You create a goods receipt PO and A/P invoicefor the required components. Then you will release the production orderand issue components to the production order. When the production isfinished, you report completion and receive the finished item into stock.At this point you can deliver the item to the customer and invoice themfor the product. After awhile, the customer has a question about theproduct, so calls your service department. You then create a service callfor the item.

1-1 Create all necessary master data for serialized manufactured item that is controlledby MRP.

1-1-1 Create an item master for item Z-1000. This item will be sold,manufactured and stored in inventory. This item is controlled by MRP andhas a lead time of 4 days. The item is also managed by serial numbers onevery transaction. The basic price for this item is 500. A customerequipment card should be created automatically for this item and thereshould be a service contract template associated with the item.

1-1-2 Create a component item for Z-1000. Call it Z-2000. This item is alsocontrolled by MRP. This item has a lead time of 2 days. This item is apurchased item that is stored in inventory. The basic price for this item is50.

1-1-3 Create a production bill of materials for Z-1000. This item is producedfrom Z-2000 and any other components you choose to add.

7-1

1-2 A customer orders a quantity of 2 for this new item. They would like to have itdelivered to them one week from today.

1-2-1 Create a sales order for this item.

1-3 Run MRP for this product.

1-3-1 Create a new scenario in the MRP wizard and run MRP for the item.1-3-2 MRP should suggest a production order for the top level item and at least

one purchase order for components. Create the recommended documents.1-4 Complete the purchasing process for the needed components.

1-4-1 Create a goods receipt PO in reference to the purchase order created byMRP.

1-4-2 Enter an A/P invoice for the component item.

1-5 Complete the required steps in the production process for the Z-1000 item.

1-5-1 Release the production order to the shop floor.

1-5-2 Issue the components to the production order.

1-5-3 Report completion for the production order and receive the finished iteminto the warehouse. Create serial numbers for the quantity received intoinventory.

1-6 Finish the sales process steps for the ordered item.

1-6-1 Create a delivery in reference to the sales order. Choose serial numbers forthe quantity in the delivery.

1-6-2 Create an A/R invoice for the delivered item.

1-7 The customer contacts the service department with a question about the product.1-7-1 Create a service call for the item. Add the appropriate customer

equipment card to the service call. Check the response time andresolution time required based on the service contract.

1-7-2 Search for any relevant solutions. Suggest a new solution which worksfor the customer. Mark that the question has been resolved and close theservice call.

7-2

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8-2

8-3

8-4

The installation process is very easy to follow, since it is driven by a wizard. You can download theinstallation files from the channel partner portal, or purchase an installation DVD. The installationprocess is described in detail in the Administrator’s Guide.To install SAP Business One:

Install one of the supported database servers. Note: Microsoft SQL Server licenses can be optionallypurchased from SAP.Install the SAP Business One Server Tools.Install the SAP Business One Server.Install the Remote Support Platform (RSP). This will be covered later in this course. RSP monitorsthe customer system to prevent problems.Install the SAP Business One Client on every client. Note: When you start the client for the first timeyou must connect the client to the server by entering the server name.Install the SAP Business One Add-Ons on every client on which you want to use them. ChooseAdministration Add-ons Add-on Administration to select an add-on. When you register theadd-on, you locate the installation files from the installation archive or DVD. You can find the add-on files within the Packages folder.Install the online help files. You can install the help files in the local language directly on each clientworkstation, or you can install the help files centrally in a shared folder.

Note: You can run the newly-installed SAP Business One product version for 31 days without alicense. To continue working with the application after 31 days, you must install a valid license keyassigned by SAP.For detailed, step-by-step instructions on installing the software, reference the Administrator’s Guidein the documentation resource center http://channel.sap.com/sbo/documentation.

8-5

Localized demo databases are preconfigured versions of an SAP Business One company database.

All the localized demo databases are based on OEC Computers, a US demo database. The localizeddatabases run on the same business model, sharing the same master data codes, and the same businesstransactions. However, they have the local flavor for a region with local charts of accounts, names, andaddresses.

All demo databases are based on SAP Business One 8.8 and MS SQL 2005 Standard Edition.

Demo databases are available on the Channel Partner Portal.

To use a localized demo database: download the database to your hard drive, then load the database inyour SAP Business One system.

A how-to guide for demo database setup is also available on the Channel Partner Portal.

8-6

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9-1

9-2

9-3

9-4

When you enter a purchasing document, you can enter additional expenses that the system adds to thedocument total. When you enter a sales document, you can enter additional revenues that the systemadds to the document total. The fields that hold this information are called Freight, because that is themost common additional expense or revenue in marketing documents.

You can enter these freight items on either line level or header level. The field in the document footeralways displays the total of all freight charges. On the figure there is a total of 30 on line item level anda total of 30 on header level that results in an overall total of 60 that is displayed in the documentfooter.

To be able to use freight, you must activate this functionality under Administration SystemInitialization Document Settings. Select the Manage Freight in Documents indicator on theGeneral tab.

Then, in Administration Setup General Freight you can define the categories for freight andother additional expenses/revenues that you want to use. The definition contains the following entries:

Name: Enter a name for this category of freight.

Revenues/Expense Account: Enter a revenue account if you want to define an additional revenue forsales documents. Enter an expense account if you want to define an additional expense forpurchasing documents. The system will post the additional expenses/ revenue to this account.

Output/Input Tax Group: Enter an output tax group for additional revenues in sales documents andan input tax group for additional expenses in purchasing documents.

Fixed Amount – Revenues / Fixed Amount – Expenses: Enter a default revenue or expense amount.The system uses this default only on header level.

Note: You can also create documents that contain no line items, but only freight charges on headerlevel.

9-5

When you create a new sales or purchasing document based on an existing document, the drawdocument wizard allows you to specify which line items and which freight amounts you want to copyfrom the base document into the target document.

1. After you have selected the base document, the draw wizard opens. On the first step you can decideif you want to use the exchange rate used in the base document (at the row or document and rowlevel) or if the system will retrieve the current exchange rate from the exchange rates table.Furthermore, you can decide if you want to copy all data from the base document into the targetdocument or if you want to copy only some of the data (customize). If you select to copy all data,the system closes the draw wizard and copies all line items and all freight and additionalexpenses/revenues from the base document into the target document. Otherwise, the draw wizardproceeds with the next step.

2. On the next step, you can select the line items that you want to copy from the base document to thetarget document. Here, you can also change the quantity and the price per line item. If the basedocument contains freight or additional expenses/revenues on line item level, these also displayhere. You can change the total and the base method.

3. The last step only appears if the base document contains freight or additional expenses/revenues onheader level. Here you can select the additional expenses/ revenues that you want to copy from thebase document into the target document. You can also change the total and the base method.

9-6

The drawing method determines how the system copies the freight expenses or revenues from the basedocument to the target document in case you only partially copy the line items.

NoneIf you only partially copy a line item, the system does not copy the freight and additional expensesor revenues to the target document at all. Only if you finally copy all outstanding line items does thesystem copy the complete additional expenses or revenues.

AllThe system copies the entire amount of freight and additional expenses or revenues the first time youcopy any partial amount of the line item. Later when you copy the outstanding line items, theadditional expenses and revenues are already closed and cannot be copied anymore.

QuantityIf you only partially copy a line item, the system copies the freight and additional expenses orrevenues in proportion to the quantity you copied. When you copy the outstanding line items, thesystem copies the remaining additional expenses and revenues.

TotalIf you copy a line item only partially, the system copies the freight and additional expenses orrevenues in proportion to the total you copied. When you copy the outstanding line items, the systemcopies the remaining additional expenses and revenues.

Freight and expense/revenue amounts on header level are always copied either in full (if the drawingmethod is all, total, or quantity) or not (if the drawing method is none).

You can enter a default drawing method in the definition of each type of freight.

9-7

In the definition of the freight, you can decide per freight type whether these expenses affect the stockprice or not. Select the Stock indicator if you to add the freight amount entered, either at the row levelor total level, to the item’s cost calculated when working with perpetual inventory.

When the system posts a goods receipt PO, it adds the total amount of the freight to the stock postingof the item and through this the freight also influence the stock price. The system posts the offsettingentry of the freight to the credit side of an expense clearing account. You can enter the expenseclearing account in the G/L account determination.

When you post the A/P invoice, the system clears the allocation cost account and the expense clearingaccount. If the A/P invoice contains a different amount of freight than the goods receipt PO, the systemposts the difference to the stock account to adjust the stock value.

The system also includes the freight in the Last Purchase Price list if you have selected the LastPurchase Price indicator in the definition of the freight.

9-8

With the distribution method, you define how the system distributes freight to the individual line items.This is especially important when these expenses affect the stock.

You can enter the following distribution methods into the definition of the freight:

NoneThe expenses are not distributed to the line items at all.

QuantityThe expenses are distributed to the line items according to the relation of the quantities per line item.

VolumeThe expenses are distributed to the line items according to the relation of the volumes per line item.

WeightThe expenses are distributed to the line items according to the relation of the weights per line item.

EquallyThe expenses are distributed to the line items equally.

Row TotalThe expenses are distributed to the line items according to the relation of the row totals of the lineitems.

9-9

An A/P credit memo can also include freight expenses. If the freight amounts included in the A/Pcredit memo are different then the freight amounts in the A/P invoice on which it is based, the systemposts the difference to an expense variance account.

The figure shows the postings of a goods receipt PO, followed by an A/P invoice. After you haveposted the A/P invoice, you notice that the goods are not as expected and you contact the vendor to tellhim that you will send the goods back. The vendor agrees but insists that you have to pay for thefreight. You enter an A/P credit memo, refer to the A/P invoice but delete the freight costs. The systemcredits the full amount to the stock account, posts the value of the goods to the debit side of the vendoraccount, and posts the freight costs to the expense variance account.

You can enter the expense variance account in the Expense and Inventory Account field on the Generalsub tab on the Purchase tab under Administration Setup Financials G/L AccountDetermination.In case you have not posted the A/P Invoice yet, you can return the goods by posting a goods return.

In case of a Goods Receipt PO with freight expense that is fully drawn (including also the freight onheader level) to Goods Return, the Goods Receipt PO is closed, so you have to create an independentA/P Invoice for the freight expense.

In case of a Goods Receipt PO with freight costs, in which only the items, without the freight costs onheader level, are fully drawn to a Goods Return, you can create A/P Invoice for the freight costs onheader level based on the Goods Receipt PO.

In case of a Goods Receipt PO with freight costs that are partially (partial quantity and partialexpenses/partial quantity without expenses/partial quantity and full expenses) drawn to Goods Return,you can draw the remaining quantity and expenses from the Goods Receipt PO to A/P Invoice. Theexpense variance account is not used in this scenario.

9-10

The Landed Costs functionality allows companies that import goods, to allocate additional costs, suchas customs, transport, insurance fees, or taxes, to the imported items.

The Landed Costs document is based on one or more Goods Receipt PO documents. The Landed Costsdocument is designated for updating the items' cost price, which is required for calculating theinventory valuation, the gross profit or any other inventory related calculation.

When a company is running perpetual inventory, creating a landed costs document automatically postsa journal entry. The journal entry updates the moving average and the FIFO price of the importeditems.

When a company is running non-perpetual inventory, creating a landed costs document will not post ajournal entry.

9-11

Goods Receipt PO is used as the base reference for the landed cost process.Item prices in the Goods Receipt PO are the vendor prices ex-factory or FOB, excluding theadditional costs which are allocated later for the entire shipment.The total amount of the Goods Receipt PO is the amount that the vendor charges, without theadditional charges that are paid to other parties like a transport company or customs broker.Make sure that you specify quantities and prices in the Goods Receipt PO correctly.

To allocate your landed costs, create a landed costs document based on the goods receipt or anotherlanded costs document.

Usually the landed costs document is created after you receive invoices from the transport company orcustoms broker; however you can create a landed costs document earlier to estimate landed costs priorto official documents being received.

Costs are distributed based on predetermined factors such as quantity, weight or volume.

You can update or cancel the Landed Costs Document any time as long as it is not closed. You canonly assign a Goods Receipts PO as long as the document is not added. Goods Receipts PO can nowbe partially assigned to Goods Returns or contain negative rows.You should add the landed costs document before a quotation or a sales order for the item is enteredsince it affects the price and the gross profit calculation.

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For companies using perpetual inventory, an automatic journal entry associated with the landed costsdocument updates the Cost Price.

The journal entry debits the stock account in order to increase the inventory value. You should selectan offsetting G/L account for example the Liability account of the transport company.The customs fees can be excluded optionally from the cost price.After the landed costs document is added to the system, SAP Business One creates the journal entry.If the landed costs document is based on another landed costs document, then the posted value isonly a delta.

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The menu path to set up landed costs is: Administration Setup Purchasing Landed Costs.

Create an entry for each type of landed costs such as insurance, transportation or storage.

The specify how the distribution will be made. Options include:

Cash Value before Customs: related costs are distributed by the share of an item of the total FOBprice of the delivery minus customs.

Cash Value after Customs: the same as above, but with customs added.

Quantity: distribution based on the quantity of an item in proportion to total quantity.

Weight: distribution based on the weight of an item in proportion to total weight.

Volume: distribution based on the volume of an item in proportion to total volume.

Equal: costs are distributed equally.

In companies using perpetual inventory, you must also specify a landed costs allocation account. ThisG/L account is used to clear non-customs expenditures (reposted through the landed costs document)between the service-type A/P invoice and the landed costs document.

In addition, a customs allocation account and a customs expense account must be set up inAdministration Setup Inventory Customs Groups.If you want to allocate landed costs based on weight or volume, you will need to specify the itemdimensions. Units of measure for these dimensions (length and width UOMs and weight UOMs) mustbe set up in Administration Setup Inventory.

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Business One allows you to split a single purchase order containing items from several warehouses, into achild purchase order created for each separate warehouse. This option might be of great necessity whenthe company's warehouses are located in different cities or even in different states.

The default setting for splitting purchase orders is made via Administration System InitializationDocument Settings on the Per Document tab page. Choose Purchase Order in the Document field andcheck the Split PO box.

You can also check or clear the Split PO box manually while you create a new purchase orders.

A new field containing a secondary numbering segment will be added to the purchase order number. In ablanket purchase order this segment contains the digit 0. For every child purchase order this segment willcontain a successive number starting in 1.

Note: You cannot split a purchase order containing items from one warehouse only.

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You can define an item as a fixed asset by selecting the Fixed Assets indicator. Because the asset isintended for continuous use and not for sale and because you do not place it in stock, the systemautomatically deselects the Sales Item indicator and the Inventory indicator.

The A/P invoice amount is posted on the debit side of an asset account and on the credit side of thevendor account. In the general ledger, the system posts to a special control account, which belongs tothe Assets Account transaction type.

Although the item is not an inventory item, the Inventory tab does not disappear from the item masterrecord because the system needs it for the G/L account determination.

If the vendor is located in the same country, the account in the Expenses Account field is used as theasset account.

If the vendor is located in an EU country, the account in the EU Expenses Account field is used asthe asset account.

If the vendor is located in a non-EU foreign country, the account in the Foreign Expenses Accountfield is used as the asset account.

Usually, you do not distinguish the assets by vendor location. Therefore, you should enter the sameasset account in all three fields.

You can configure the G/L account determination on asset item level and enter a separate asset accountfor each asset item or you can configure the G/L account determination on item group level to gathersimilar assets on one collection account.

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When you buy items that you do not manage as warehouse items (for example, items that are directlyconsumed), the system does not trigger a posting for the goods receipt PO even if you create one.

The A/P invoice amount is posted on the debit side of an expense account because it goes directly intoexpenses. The credit side is posted on the vendor account. Although the item is not an inventory item,the Inventory tab does not disappear from the item master record because the system needs it for theG/L account determination. The expenses account is retrieved from the default warehouse on theInventory tab of the item master record.

If the vendor is located in the same country, the account from the Expenses Account field is used.

If the vendor is located in an EU country, the account from the EU Expenses Account field is used.

If the vendor is located in a non-EU foreign country, the account from the Foreign ExpensesAccount field is used.

This graphic does not cover tax postings or postings of additional revenues and expenses.

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You use A/P reserve invoices to create a pro forma invoice.

1) The available quantity is increased by the purchase order quantity.

2) You post an A/P reserve invoice before you create a goods receipt PO. Unlike standard A/P invoices,reserved A/P invoices do not change the In Stock quantity. The available quantity increases by theordered quantity, if you create it without a purchase order as a base document. Reserve invoices createvalue-based postings.

3) You post the goods receipt PO afterwards with reference to the reserve invoice. This affects your stocksituation.

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The price in the A/P invoice may differ from the price originally entered in the goods receipt PO. Inthis case, the system posts the difference to the stock account to adjust the stock value.

If the A/P invoice contains a larger amount of items than there is on stock, because you already soldsome items from the goods receipt PO, the price difference is posted to a price difference account.This is explained in the graphic:

1. You receive a goods receipt PO with a total of 1000. The system posts the goods receipt PO with avalue of 1000 to the stock account and to the allocation costs account.

2. You sell 40% of your stock and post an A/R delivery. The system posts 400 to the credit side of thestock account and the debit side of the cost account.

3. You receive the A/P invoice for the goods receipt PO. The invoice total is 1100, which results in adifference of 100. The system clears the allocation costs account and posts the document total tothe credit side of the vendor account. Because the A/P invoice is about a larger number of itemsthan you have on stock, the system cannot post the whole price difference to the stock account.60% of the goods on the A/P invoice you have on stock. Therefore, the system post 60% of theprice difference to the stock account and the remaining 40% to the price difference account

You can enter the price difference account in the G/L account determination.

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Definition: Activities refer to sales or service activities such as phone calls, meetings, tasks, notes orother types of sales activities. Tracking these interactions enables analysis of the interactions with thecustomers, both open activities and historical (closed) activities.

How to access activities: To display the activities window, choose Business Partners Activity. Thewindow can also be opened from the sales opportunities and service modules, and other placesthroughout the system.

The fields displayed in the General tab of the Activities window depend on the chosen activity. Forexample, if Meeting is chosen, Address and Time fields are displayed. If Task is chosen, a Status fieldis displayed.

How to delete activities: choose Data or right-mouse click Remove.

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1a.) To link activities to documents, you can access this function directly from many applications andfunctions. When you enter a posting, purchase order, or a delivery for example, the system allows youto go directly to the screen for activity management via Goto New Activity or Goto RelatedActivities. If you enter an activity in this way, it automatically links to the original document. Thedocument appears on the Linked Document tab of the Activity with its Document Type and DocumentNumber.

1b.) You can also link an activity to a document from the activity itselfes.Choose Business PartnersActivity, enter the Document Type and Document Number on the Linked Document tab.

1c.) You can also create activities from sales opportunities. Choose Sales Opportunities SalesOpportunity, on the Stages tab choose the orange arrow in the Activities column. This salesopportunity will display on the Linked Document tab page of the Activity as the Source Object. Thesource object can be a sales opportunity or a service call.

2.) You can enter the content directly in the activity, or attach it as a document (for example aMicrosoft Word document).

3.) The Activities Overview Report provides a report of the activities throughout the system. Examplesof reports include a manager's summary of all his/her employees' activities, or a report for a salesemployee to view all his/her customers' activities. To generate the reports, choose Business Partners

Business Partners Reports Activities Overview or My Activities, or select the reports in theReports module.

4.) You can link activities to business partner or material master records.

5.) You can also plan an activity (for example, a future meeting) and have the system remind you.Scheduled activities only appear in your inbox if you have defined the appropriate administrationsettings by choosing: System Initialization General Settings Services.

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The time based activities (phone calls, meetings and others) are automatically entered in the calendar.

The calendar allows you to display, schedule and update activities by dates and users.

To display the calendar you choose the Calendar icon on the right hand side of the toolbar.

Each activity displays with the appropriate activity symbol.

To add a new activity from the calendar, select the desirable time slot and the activity window opens toenter the details.

You can customize the calendar by choosing the Form Settings icon from the toolbar. You cancustomize the colors, working hours, and display other user’s activities in other colors in the calendar(group view with a maximum of seven users).

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You can use sales opportunities to record, track and analyze every step in your business potentials witha customer or prospect. Sales opportunities give you visibility into your sales pipeline, for individualsales employees or the company as a whole.

Step 1: Sales managers set up important information such as which stages a sale will pass through andthe likelihood by percentage of closing the sale. This information will help in forecasting sales. Thekey to successful setup is to decide what you wish to monitor during the sales process.

Setup is done in Administration Setup Sales Opportunities. The sales manager will set up salesstages, competitors, partners, and relationships. These will assist the manager in forecasting sales.

Step 2: Sales people enter sales opportunities and manage them throughout the sales process. Themore details entered in an opportunity, the more visibility you will have later when you report on theleads. Ongoing appointments, phone calls, tasks, and contact management can be coordinated throughthe opportunity.

Step 3: Reporting on sales opportunities gives you visibility into the sales pipeline, won and lostopportunities, and sales forecasting.

Sales stages can be adjusted later, as needed, in the setup transaction. All the sales forecasting will beadjusted automatically.

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Sales opportunities’ activities occur before a sale has been closed, either won or lost. In the salesopportunity module, the potential sales volumes and other related information is monitored andupdated.

The sales opportunity can be updated according to the progress of the sales activities and negotiations.Data is entered at each sales stage, to permit analysis throughout the sales process, and after theopportunity has been closed.

You can create the stages in the cycle according to your needs and maintain a closing percentage(success probability) for each stage. The system calculates a Weighted Amount for each stage based onthe Potential Amount you predicted for the opportunity. You can change the closing percentage inevery opportunity for every stage.

In the opportunity you can use as many stages as you want, in any order.

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To display or maintain data in the sales opportunity window choose Sales Opportunities SalesOpportunity.The general area of the sales opportunity window is located in the upper portion of the window. It isused to insert the basic customer or lead information, and provide general information about thespecific sales opportunity.

In the opportunity you can create as many stages as you want, in any order.

By selecting the icon in the Document Type column, you can create or link a document (for example, asales quotation or a sales order) to each stage. Use the Related Documents button to get a list of alldocuments linked to the opportunity.

You can also link an activity (by choosing the Activity icon in the Activity column) to each stage. Bychoosing the Related Activities button, you call up a list of planned activities linked to the opportunity.

The Business Partner Territory in the header of the sales opportunity is defaulted from the businesspartner. You can change it. You can use it as a parameter to be chosen to filter the display for salesopportunities reporting.

You can delete a sales opportunity as long as its status is open. (You can not delete other salesdocuments such as sales quotations or sales orders from the system).

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Use Territories to manage a geographic location, brand, or item category and its hierarchy.

To define territories choose Administration Setup General Territories.Territories can be added as either independent, which set the territory as a parent, or as a child or asibling.

To delete a territory, make sure the territory is not linked to another function, for example, to a salesopportunity.

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To define territories choose Administration Setup General Territories.

You can assign a territory to the business partner in the business partner master data on the General tabin the field Territory.

Once you have assigned a territory to the business partner master data, it will be defaulted to the fieldBusiness Partner Territory in a sales opportunity when you create one.

For the sales opportunities reporting you can use the territory as a parameter to be chosen to filter thedisplay according to the required options.

The territory of the business partner will also default to customer equipment cards (service transaction).

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You can display sales opportunities reports by choosing Sales Opportunities Sales OpportunitiesReports, or from the Reports module.

You use the opportunities reports for analysis of opportunities and for optimizing your sales process.

Reports can be based on all parameters, or can be filtered according to certain parameters. Choosing aparameter often opens one or more windows where the different options can be selected. Certainreports can display in graph or table formats.

The Opportunities Forecast Report presents a projection of the potential sales opportunities, based onthe predicted dates of all open opportunities.

The Opportunities Forecast Over Time Report presents a forecast of the open and closed opportunitiesgrouped according to the selected time period.

The Opportunities Statistic Report presents the number of open and closed opportunities, and the datacan be sorted to display according to various combinations of options and grouping.

The Stage Analysis provides an overview of the success rate of the sales activities. It contains data ofhow many sales opportunities were concluded in a specific stage, or for how long sales opportunitiesremained in each stage of the sales process.

The Source Distribution Over Time Report presents sales opportunities according to their source, andcan be grouped to display in specific time periods (e.g. days, weeks, or months).

The Won Opportunities Report displays information about the sales opportunities that have succeeded.

The Lost Opportunities Report can be used to analyze opportunities that did not succeed.

The My Open / Closed Opportunities Report displays the opportunities related to the user who iscurrently logged on to SAP Business One.

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To generate the Opportunities Pipeline Report choose: Sales Opportunities Sales OpportunitiesReports Opportunities Pipeline, or the Reports module

The pipeline analysis provides you with an overview of all the opportunities that are currently open. Italso indicates the sales potential, sales stage, sales employee responsible, and so on.

By selecting each element, you can call up a detailed report for each stage.

Using the Context menu (choose Goto Dynamic Opportunity Analysis) in the opportunitiespipeline, you can call up the Dynamic Opportunity Analysis, which shows the 1 to 30 most importantopportunities (open or closed), together with all the details from the point where they were createduntil they were closed.

You can use this report for analysis of the open opportunities in the sales pipeline. From this report it iseasier to identify the opportunities that are most likely to succeed.

The list of sales opportunities can be displayed in a row of the table or as a segment in the graphic.Either double-click a row in the table or a segment in the graphic. SAP Business One displays anadditional window with the list of the open sales opportunities for each sales stage.

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When you identify a potential customer, you can create a lead master data record using the BusinessPartner Master Data window. This enables you to document and track the presales activities with thislead. You can create the following documents for lead master data: sales quotation, sales order, salesopportunity, and activity.

When the lead takes the next step and buys a product or service, the lead becomes a customer. In thiscase, all you have to do is to change the type of the business partner master record from lead tocustomer. All the information you have added to the lead master data record is saved, as well as thedocuments you created for this lead.

For example, if you created a sales order for a lead, once the lead becomes a customer and buys theitems in the sales order, you can use the sales order as the basis for creating a delivery document andlater on an invoice.

Because SAP Business One automates so much of the processes related to the sales-A/R process, it isessential that you select or enter the correct customer and item data when you initiate a sales order.

For example, things as simple as a customer’s ship-to and bill-to addresses, if entered inaccurately orincompletely, can have a huge impact on your company’s bottom line when goods ordered show upwhere they are not supposed to or invoices are sent to the wrong office. The tax code and rate isdetermined based on the ship to assignment, so make sure you select the appropriate ship to addressfrom the drop down list, rather than updating the address manually.

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Definition: The sales quotation is an offer or proposal containing a price commitment for specificgoods or services that you would provide to a customer or a lead if accepted.

Business Scenario: Before customers commit to ordering, they frequently want a sales quotation thatthey can review and circulate within their company.

How to create a sales quotation: From the main menu select Sales - A/R Sales Quotation. A blanksales quotation appears. You specify a customer (or lead) and the desired items. Once you are satisfiedwith the quotation details, click Add. SAP Business One adds the sales quotation. You can makechanges later as needed.

Effect on Inventory and Accounting: None.

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Drop Shipment allows you to handle a sales process where your company only serves as themiddleman between customers and vendors. Your customer orders from you and you order from avendor that ships the items directly to your customer.

How to set up drop shipment: Go to Administration Setup Inventory Warehouses. Select theDrop Ship checkbox.

How to use the function: When adding a sales order, choose the drop ship warehouse in the item line.After adding the sales order the Purchase Order Confirmation window will open only for the lineswhere the drop ship warehouse was chosen.

When you add the order, the system automatically recommends a purchase order creation. In theconfirmation screen, you choose which items to order, the vendor and the prices. When you save, apurchase order is created in addition to the sales order. The ship to address on the purchase order is thecustomer’s ship to address from the sales order.

Effect on Inventory and Accounting: When using a drop ship warehouse, as opposed to a regularwarehouse, no inventory transaction is posted and the committed quantity is not increased. This meansthat even during the delivery of the items, there will be no effect on the inventory level, nor is a journalentry posted to reflect inventory value changes. Thus the drop ship warehouse is not part of thedifferent inventory reports.

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Back-to-Back Orders: Instead of using a separate warehouse as with the drop ship function, you usean option inside the sales order to create a purchase order automatically when the sales order is saved.Use this function in cases where you don’t keep your inventory items in your warehouse, but purchaseon an order by order basis.

Select the checkbox of the Purchase Orders field on the Logistics tap of the sales order toautomatically create purchase orders for the items of the sales order.

After adding the sales order the Purchase Order Confirmation window opens and you can choose theitems and quantities from the sales order for the purchase orders.

The system will add purchase orders automatically and will establish a link between the sales order andthe purchase orders.

Purchase Order Confirmation window

On the left side all of the line items from the sales order are summarized according to the selectionchosen in the sales order. If a vendor and a warehouse ware selected, then each vendor line will havea drill down displaying the warehouse. Each warehouse will have its own drill down to display theitems included in the sub-grouping.

The system proposes as default value the vendor (default vendor from the item master data), theprice (according the vendors pricelist), and the quantity (from the order). You may change theproposed values.

On the right side, the line items are presented by purchase orders organized by the user aftertransferring the line items from the left side.

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The A/R invoice is posted the same way as it is posted for inventory items. Although the item is not aninventory item, the Inventory tab does not disappear from the item master record because the systemneeds it for the G/L account determination.

The revenues account is retrieved from the default warehouse on the Inventory tab of the item masterrecord.

If the customer is located in the same country, the account from the Revenues Account field is used.

If the customer is located in an EU country, the account from the Sales Revenue - EU field is used.

If the customer is located in a non-EU foreign country, the account from the Foreign RevenuesAccount field is used.

This graphic does not cover tax postings or postings of additional revenues and expenses.

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Use backorder processing to track customer sales orders with insufficient inventory quantities.

The backorder report allows you to check how much is missing.

When inventory is replenished, ship the remaining quantity to your customer.

If the items are never to be replenished, you can close the remaining quantity for the row.

In some cases, due to item shortages, you cannot deliver an item as planned. To correct this, you canenter a zero quantity for that line in the delivery or A/R invoice. The open quantity then appears in theOpen to Ship field.

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The back order report can show you which customers need the backordered items.

Therefore you can give priority to more important customers.

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Definition: You use A/R reserve invoices to create a pro forma invoice. Use the reserve invoice incases where you bill your customer before you ship the items. In a reserve invoice, the revenues arerecognized, but no inventory transaction takes place. The inventory transaction will take place once theA/R reserve invoice is copied over to a delivery document

Effect on Inventory and Accounting: A/R reserve invoices create value-based postings only.

Effects of each process step:1) The sales order quantity reduces the Available quantity and increases the Committed quantity.

2) You post an A/R reserve invoice before you create a delivery document. (If you did not create asales order in the previous step, the Available quantity is reduced at this point. ) A journal entry isposted to the customer and revenue account.

3) When you ship the items, you post the delivery with reference to the A/R reserve invoice. Thisreduces the In Stock quantity. At this point the reserve invoice status changes to Delivered and thedelivery is set to Closed.

Cancelling an A/R reserve invoice: To cancel a delivered reserve invoice, you must create anindependent credit memo and use the internal reconciliation to match the two together. If you credit anun-delivered A/R reserve invoice, the credit memo will not increase inventory level. It will onlyreverse the journal entry which resulted from saving the A/R reserve invoice initially.

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Business Scenario: In some cases you require a portion of the total due in advance, usually at the timeyou create the sales order, in order to get a real commitment from your customer. For example if yourcustomer provided his credit card information at the time he signed the order, you will record this as adown payment. This can also be called a Deposit on Order.

Example of Process steps:To record a down payment while creating the sales order, click the payment means icon to open thePayment Means window. Once you add the sales order, three documents are created:

The sales order

A down payment request linked to the sales order

An incoming payment which closes the down payment invoice.

The process is complete when you issue the final A/R invoice. If you base it on the sales order, thedown payment invoice is applied, and the amount is reduced from the invoice amount.

When the customer pays the final invoice, the final payment and final invoice will be linkedto the down payment.

Alternate process: The down payment invoice can also be created from scratch with or withoutreference to a sales order. Depending on the business process in your company, you may not createsales orders, or perhaps the advance payment arrives at a later stage after you add the sales order. Inthese cases, you can create the down payment invoice independently. When the payment arrives, createan incoming payment, and apply it to the down payment invoice.

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Accounting impact: When the incoming payment is added for the down payment request posting, thetotal amount is debited to the down payment interim account. The net amount is posted to the downpayment clearing account. No posting is made to revenue at the stage of the down payment request.When the final invoice is added, the full amount is posted to the revenue account.

Manual adjustments to amounts on the down payment request: Tax can be adjusted on the downpayment request. Any adjustment will cause the system to automatically recalculate the correct taxamount at the time of the final invoice. Similarly, price changes can be made as well with anautomatic recalculation on what amounts are due.

Partial payments: In some cases, the full down payment may be waived and you allow a customer topay only a partial amount. In those cases, you can close a down payment request even if it is not fullypaid. Partial payments will appear on the final invoice.

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Two accounts are used in the down payment request process: the down payment clearing account andthe down payment interim account. These are used in nearly all localizations which used the downpayment request; exceptions are China, Czech Republic, Hungary, Japan, Poland, Slovakia or Russia.

Set the default account numbers for these accounts in the G/L Account Determination Screen in Setupfor Financials. The defaults for sales downpayments are found on the General tab for Sales accounts.The defaults for purchasing downpayments are found on the General tab for Purchasing accounts.

These two accounts are then linked to the customer on the Accounting tab of the business partnermaster record for the customer or lead (for sales) or vendor (for purchasing).

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Some businesses sell services as well as physical items.

There are two options for how to describe a service:

These services can be set up with an item master data record, if for example, they are commonlysold services. The advantage of this option is that the G/L account for the item is already definedand you can use sales reporting by item to track the sales of your services.

The other option is to use the Service/Item type field to set the sales documents for enteringdescriptions of services without an item master. If you enter a service description, you also mustenter a corresponding G/L account. The advantage of this method is that you can describe servicesin an adhoc way. The disadvantage is that you are not able to sell these services on the same salesorder with items.

When you sell services or other items that you do not manage as inventory items, the system does nottrigger a posting for the delivery. Because the document is unnecessary, most companies skip this stepentirely for selling services. Instead they copy the sales order directly to the A/R invoice.

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Periodically you conduct a physical count of the items in your warehouse.

Inventory tracking is carried out in four steps:Choose Inventory Inventory Transaction Initial Quantities, Inventory Tracking and InventoryPosting1. You use the system to print out the inventory documents.

2. You perform the actual count.

3. You record the count results in the system.

4. You post the stock differences.

After the inventory has started (that is, when the count begins in step 2), you should prevent postingsfrom being made in the system. Otherwise, the result might be incorrect. To do this, you can disablethe document numbering function by choosing Administration System Initialization DocumentNumbering, or by setting the Locked indicator for each item/warehouse in the item master data.

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You must post the inventory differences to update the warehouse stock and the values in accounting.Choose Inventory Inventory Transactions Initial Quantities, Inventory Tracking andInventory Posting, choose Inventory Posting tab page

You can base the value on a price from a selected price list, the Last Revaluation Price or the Item CostList.

If you want to use the cost option, recalculate the current costs before you post the inventorydifferences. You can do so using the warehouse stock valuation report. Choose Inventory InventoryReports Inventory Valuation Report.You can also correct the quantities without affecting the values in accounting by allowing the inboundposting without a price.

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Inventory cycles can help you track inventory counts for items.

You can define inventory count cycles under Administration Setup Inventory InventoryCycles.You can assign inventory cycles for an item in the item master record (Inventory Data tap) or for itemsgroups in the item group definition (under Administration).

SAP Business One issues an alert message and/or entries in the Cycle Count Recommendations report,according to the cycle definition you specify for the items. In this report, you can display all itemscurrently scheduled for inventory count.

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Consignment stock is stock that your company delivers to the customer but from an accountingperspective, remains your company's possession until it is consumed.

1. If you deliver items to your customer in the form of a consignment, you can enter the stock transferfrom your warehouse to the consignment warehouses in the system.

2a. The customer withdraws the items from the consignment warehouses at his site (for example forproduction).

2b. The customer confirms the quantities of stock that have been withdrawn from the warehouse (forexample by phone).

2c. Your company then bills the customer accordingly. This includes the goods issue in theconsignment warehouse.

You model the customer consignment process in SAP Business One using additional warehouses. Inthis scenario, the system finds the price list and associated price defined in the customer master record.The value at the point at which the stock is transferred is still assigned using the moving average price.The system does not post the liabilities (= price * quantity) until the invoice is created.

You have to create a warehouse for the consignment to enable the consignment stock to be managedseparately from your other item stocks. If you maintain consignment stock for several of yourcustomers, you should create a consignment store for each customer so that the stocks for eachcustomer can be monitored more easily. You can then display the consignment stocks using thewarehouse reports.

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You use the Inventory Transfer function to transfer stock from one warehouse to another.

A stock transfer can also be carried out as a consignment for a customer. The items are then stored inand sold from the customer's warehouse.

To enter a stock transfer in the system, choose Inventory Inventory transactions InventoryTransfer.

Enter a customer for stock transfers that contains a customer consignment. Do not enter a customer inthe document if the stock transfer is not linked to a customer.

The system uses the cost price to calculate the prices for the journal entry.

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When you post a stock transfer from warehouse 02 to warehouse 01, the system creates a stock transferdocument and a journal entry. The journal entry posts the value of the transferred goods on the debitside of the stock account of warehouse 01 and on the credit side of the stock account of warehouse 02.The stock accounts are retrieved from the Stock Account fields on the Inventory tab of the item masterrecord.

To post a stock transfer, choose Inventory Inventory Transactions InventoryTransfer.

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1 You can define alternative items by choosing Inventory Item Management Alternative Items.

Alternative items are defined per item and you can build a hierarchy of alternative items by definingalternatives to the alternatives.

Remarks: Enter any free text as a remark for the alternative item.

Match Factor: Enter the value to specify the matching degree in points. Higher value represents highermatch.

In our example, item A00012 has two alternative items – B04711 and F00771. The matching factordefined for item B04711 is 100 and for item F00771 – 80. If there is no item A00012 in the warehouse,item B04711 can replace it because it has the highest matching factor.

Reverse Link: Select the alternative item and choose Reverse Link to create a reverse relationshipbetween the alternative item and the original item. This means that both items are defined as alternativeitems for each other.

2 You can select alternative items while you create documents in sales or purchasing. You can display thelist of alternative items and replace an item. Choose Goto Alternative Item or use the right mouse clickin the item line.

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Packaging units are used in the sales and purchasing processes.

You can define a packaging unit for sales and a packaging unit for purchasing in the item masterrecord.

In addition, you define the quantity in the base unit of measure for each packaging unit.

In the marketing document, the system then automatically calculates how much packaging will beneeded for the required quantity.

Example: Ten units can be delivered in one box. You order a quantity of 11 units. The system thencalculates that two boxes will be needed.

This information can be very useful for the goods receipt area when deliveries are received.

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Factors are used as variables in purchasing and sales to automatically calculate quantities in thedocument.

An example: You stock a 1.20 meter high fence which is sold by length in meters. However, theprice for the sold quantity is based on square meters. To calculate the surface area (quantity) onwhich the price is based, the system must multiply the sold length by the height of the fence.

Four factor fields can be defined in the item master record. The default value for each field is 1.

You can also make changes to each factor field in the document to change the multiplier:

Example: Your vendor informs you that he will pack four twin packs in a box in the next delivery aspart of a special campaign. This means that each box will contain eight bottles instead of six.

When you change the data manually in the quantity field, the system sets all the factors to one. Theentered quantity overrides the factor calculation.

If you use the factors for a large number of your items, you can use the settings for the transactions inPurchasing or Sales to display the fields directly when you enter the document. In this case, you do notneed to call up the row information to change them.

11-17

You can enter items in a document via this business partner catalog number.

Therefore you have to enter an item catalog number of a business partner (customer or vendor) in thebusiness partner catalog. Choose Inventory Item Management Business Partner CatalogNumbersYou can enter a 1:n relationship between a business partner and several items ora 1:n relationship between an item and several business partners.

For the documents you have to activate the functionality to enter items via the the business partnercatalog number through the Form Settings – General tab page. Select the Display BP Catalog Numberindicator.

You can use this catalog number for purchasing documents and for sales.

11-18

You can display the manufacturer number in the purchasing and sales documents, and print it onrelevant documents.

The pre-requisite is entering a number for an item of the default vendor in the Item Master Data in thefield Mfr Catalog No.

To display the field, you have to select the field Mfr. No. via the Form Settings – Table Format tabpage for the documents.

In the user defaults print tab, additionally you have the option to set documents to print vendor catalognumbers instead of the item numbers.

11-19

11-20

11-21

At some point you may need to define opening balances for inventory.

How to enter initial quantities into stock accounts: Inventory Inventory Transactions InitialQuantities, Inventory Tracking, Inventory Posting and choose the Initial Quantity tab.

Select the range of item codes or the range of vendors for an item. You can also use item properties oritem groups to narrow the selection of items.

The items are entered into a chosen warehouse. You must select one warehouse at a time.

To enter the item cost you need to consider the client’s valuation system. The item cost may be theclient’s purchase price. If moving average is used to manage the legacy stock value, use the lastaverage purchase price from the legacy system. If the standard method is used, use the client’spurchase price. If FIFO is used, you should enter multiple document lines (rows) for an item using thegoods receipt template in DTW or multiple rows in the initial quantities window. Each row will have adifferent cost to match to the legacy system cost. Note: the client’s legacy valuation may be inaccurate,since there is often no perpetual inventory.

If the initial quantity is zero, the last purchase price is not updated.

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11-23

Inventory revaluation allows you re-evaluate your item costs and inventory value without changingquantity levels. Typically revaluation is done during the year-end closing process.

The supported valuation methods are: Moving Average, Standard and FIFO.

To perform a material revaluation, choose Inventory Inventory Transactions InventoryRevaluation.

SAP Business One allows you to revaluate your items by either entering a new price (price change) or byposting a debit or a credit for a certain quantity (Inventory Debit/Credit).

If you want to base your stock valuation on a new price, select Price Change in the Revaluation Typefield. Then enter the item code, the warehouse and the new price. The system posts a revaluationdocument and a journal entry that adjusts the balance of the stock account and posts the offsetting entry oneither the Increase G/L account (for a stock increase) or the Decrease G/L account (for a stock decrease).

This works identically for items which are valuated with moving average price and standard price. Foritems controlled by FIFO, revaluation is done at each FIFO layer.

11-24

If you want to change the value of a certain quantity, select Inventory Debit/Credit in the RevaluationType field.

Then enter the item code and the warehouse, as well as the quantity and incremental value difference forthe quantity. If you want to reduce the value, enter the difference as a negative number.

The quantity specified is used only for the recalculation of the item cost. For example, if you know a pricemistake was made in a certain receipt document, you may want to specify the related quantity. Thequantity in stock does not change. The value of the entire inventory is updated regardless of the quantityspecified here.

If the quantity is equal to or smaller than the quantity in stock, then the system posts a journal entry theadjusts the balance of the stock account by the difference and posts the offsetting entry to a stockrevaluation gain or loss account, depending whether the value difference is positive or negative.

If the number in the quantity field is greater than the in stock quantity, the amount recorded in the journalentry is proportionally divided between the inventory and a price difference account (according to theitem’s valuation method and the current in stock quantity). This is shown in the bottom half of the graphicabove.

The slide shows the postings for an item with moving average price valuation. If the item is valuated witha standard price, the system posts the debit not on the stock account but to a variance account.

11-25

When revaluating items controlled by the FIFO method, the existing FIFO layers are displayed andeach layer can be independently revalued.

The cost is not displayed at the item level in the Inventory Revaluation window, instead you can viewand change the cost for each individual FIFO level.

When using the FIFO method where there are items in the FIFO layer, an inventory debit or creditresults in a posting to the inventory account and the stock revaluation gain or loss account.

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11-27

Purchasing Exercises

Unit: Variations in Purchasing-A/PTopic: Freight and Landed Costs

At the conclusion of this exercise, you will be able to:

Set up a method for landed costs allocation

Create a landed costs document

Change the default allocation for landed costs

In this exercise, you will set up and use an allocation method forlanded costs. Your new vendor is located in a foreign countryand will have customs and freight costs for items you purchase.You will create a landed costs document for the shipping costsand allocate them by weight. You will set weight as the defaultallocation method for landed costs.

1-1 You have a supplier V1008 that is located in the Netherlands. This supplierdelivers 10 high resolution scanners (new item T500). You need to set up theallocation for landed costs, the new vendor, and the item master before youreceive the items into inventory.

1-1-1 Create or modify an entry for allocation by weight so that it containsthe following data.

Field Name or Data Type Values

Code <any>

Name Weight

Allocation By Weight

Landed Costs Allocationaccount

<In the UK localization theaccount is 207045*>

*The landed costs allocation account is an liabilities account foundunder Other Creditors.

1-1-2 Create a new business partner master for this vendor.

9-1

Field Name or Data Type Values

Business Partner Number V1008

Name <Any>

Currency Euro

Address <Any>

1-1-2 Create a new item master for the product.

Field Name or Data Type Values

Item number T500

Description HS Scanner

Price 200

Weight (Tab page Purchasingdata)

10,2 kg

1-1-3 The vendor delivers the scanners. Receive the items into inventory.

Field Name or Data Type Values

Vendor V1008

Item number T500

Quantity 10

Goods Receipt PO document number______________________

1-1-4 The vendor sends an invoice for the scanners with the vendor invoicenumber 27272.

Create an A/P invoice referencing the goods receipt PO:

Field Name or Data Type ValuesVendor V1008

Vendor Reference No. 27272

Posting Date <today’s date>

A/P Invoice number ___________________________

1-1-4 View the current moving average cost for the scanner.

Field Name or Data Type ValuesItem number T500

9-2

Current moving average cost for this item: ____________________

1-2 Your Vendor S1008 instructed Vendor UPS to arrange the delivery. UPS nowbills 340 EUR for transportation costs (shipping, insurance and packaging) forthe whole delivery. There is also 110 EUR costs for customs as well. Thesecosts should be included in the cost price of the delivered items.

1-2-1 Create a landed costs document referencing the goods receipt PO:

Field Name or Data Type Values

Vendor V1008

Enter the broker UPS into the Broker field.

If the vendor UPS does not exist, create the vendor at this point.

Field Name or Data Type ValuesCode UPS

Name UPS

Currency Euro

1-2-2 The customs costs are 110 Euro. Add the customs costs into theActual Customs field on the Items tab.

1-2-3 Allocate the shipping costs by weight.

1-2-4 The default setting for allocating costs was by quantity. How can youset weight as the default setting for allocating costs?

________________________________________________________

1-2-5 What is the total cost allocated to the items?

________________________________________________________

1-2-6 Save the landed costs document.

Landed Costs document number __________________________

1-2-7 Has the landed costs document affected the cost price of the item?

Cost price: _____________________________

1-2-8 Open the landed costs document to view the journal entry that wascreated automatically.

9-3

1-2-9 Which G/L account is used for landed costs?

______________________________________

Where is this account assigned as the default?

_______________________________________

9-4

Purchasing Purchasing Solutions

Unit: Variations in Purchasing-A/PTopic: Freight and Landed Costs

1-1 You have a supplier V1008 that is located in the Netherlands. This supplierdelivers 10 high resolution scanners (new item T500). You need to set up theallocation for landed costs, the new vendor, and the item master before youreceive the items into inventory.

1-1-1 Enter the settings for landed costs.Choose Administration Setup Purchasing Business PartnerLanded CostsCreate or modify an entry for allocation by weight so that it containsthe following data.

Field Name or Data Type Values

Code <any>Name Weight

Allocation By Weight

Landed Costs Allocationaccount

<In the UK localization theaccount is 207045*>

*The landed costs allocation account is an liabilities account foundunder other creditors.

1-1-2 Create a new business partner master for this vendor.Choose Business Partners Business Partner Master DataChange to Add mode.

Field Name or Data Type ValuesBusiness Partner Number V1008

Name <Any>

Address <Any>

1-1-2 Create a new item master for the product.Choose Inventory Item Master Data. Change to Add mode.

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Field Name or Data Type Values

Item number T500

Description HS Scanner

Price 200

Weight (Tab page Purchasingdata)

10,2 kg

1-1-3 The vendor delivers the scanners. Receive the items into inventory.

Choose Purchasing- A/P Goods receipt PO

Field Name or Data Type Values

Vendor V1008

Item number T500Quantity 10

Add the goods receipt PO.

Goods Receipt PO document number______________________

1-1-4 The vendor sends an invoice for the scanners with the vendor invoicenumber 27272. Enter an A/P invoice.

Choose Purchasing- A/P A/P Invoice

Field Name or Data Type Values

Vendor V1008

Vendor Reference No. 27272

Posting Date <today’s date>

Select Copy from.

Select Goods Receipt PO and then select the relevant document.

Choose Finish in the Draw Document wizard.

Choose Add.A/P Invoice number ___________________________

1-1-4 View the current moving average cost for the scanner.

Choose Inventory Item Master Data

9-6

Field Name or Data Type Values

Item number T500

Inventory data tab.

Current moving average cost for this item: ____________________

1-2 Your Vendor S1008 instructed Vendor UPS to arrange the delivery. UPS nowbills 340 EUR for transportation costs (shipping, insurance and packaging) forthe whole delivery. There is also 110 EUR costs for customs as well. Thesecosts should be included in the cost price of the delivered items.

1-2-1 Choose Purchasing- A/P Landed costs

Field Name or Data Type Values

Vendor V1008

Select Copy From.

Select Goods Receipt PO from the list and select the relevantdocument.

The row from the Goods Receipt PO is copied into the Landed Costsdocument.

Enter the broker UPS into the Broker field.

Broker UPS

If the vendor UPS does not exist, the Choose from List appears.Select New to create the business partner master record for UPS.Enter the following data in the Business Partner Master Data window.

Field Name or Data Type Values

Code UPSName UPS

Currency Euro

1-2-2 The customs costs are 110 Euro. Add the customs costs into theActual Customs field on the Items tab. Confirm any system messagethat the actual customs vary from projected costs and that thedifferences should be divided proportionately.

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1-2-3 Allocate the shipping costs by weight.

Select tab page Costs.Enter 340 in the amount field in the line Shipping.

In the same line, select Weight in the dropdown for the columnAllocation by.

1-2-4 The default setting for allocating costs was by quantity. How can weset weight as the default setting for allocating costs?Choose the New Landed Costs button.

Select Weight from the dropdown box in the Allocation by column onthe row for Shipping.

Choose Update.Choose OK.

1-2-5 View the total costs (shipping and customs) allocated to the items.

Choose the Items tab.Scroll to the right to view the Total Costs column.

To view just the shipping costs, scroll back to the Allocated CostsValue column.

1-2-6 Save the landed costs document.

Choose Add.

Landed Costs document number __________________________

1-2-7 Has the landed costs document affected the cost price of the item?

Choose Inventory Item Master Data

Field Name or Data Type Values

Item number T500

Inventory data tab.View the cost price.

Cost price: _____________________________

9-8

1-2-8 Open the landed costs document to view the journal entry that wascreated automatically.

Choose Purchasing- A/P Landed costs and call up the lastdocument.

Choose Accounting.Choose the link to the left of the Journal Remark field.

1-2-9 Which G/L account is used for landed costs?

______________________________________

Where is this account assigned as the default?_______________________________________

9-9

Exercises

Unit: Variations in Purchasing – A/PTopic: Purchasing for Multiple Locations

At the conclusion of this exercise, you will be able to:

Create a split purchase order

Set up the system to allow split purchase orders

Complete the purchasing process with split purchase orders

In this exercise, you will create one purchase order for itemsneeded for two different warehouses. This purchase order willautomatically split into two purchase orders. You will receive theitems into stock and create one A/P invoice for the all the items.

You will also review how the default for split purchase orders isset in the system.

2-1 You want to place an order with your vendor, V10000 for items to bedelivered to two different warehouses. Open a purchase order document andenter the vendor number. You order two units of items C00010, and C00011to be sent to the main warehouse of your company. You also need to orderitem A00001 for a different warehouse. Create one purchase order that can besent to your vendor, but that will split into two purchase orders in the system.

2-1-1 Enter the following data. If the warehouse field does not appear, useForm Settings to add the column to the display.

Field Name or Data Type Values

Vendor V10000Item Use the Tab key to choose

items C00010 and C00011

Quantity 2 for each item

Warehouse 01

Item A00001

Quantity 4

Warehouse 02

9-10

2-1-2 Set the indicator to automatically split the purchase order.

Which indicator must be set in the purchase order containing differentwarehouses to get different purchase orders, one for each warehouse?

_______________________________________________________

Save the purchase order.

Purchase Order number __________________________

2-1-3 How is this indicator defaulted into a purchase order?

________________________________________________________

2-2 The delivery of your purchase order for your main warehouse has arrived. Thevendor's delivery document refers to your purchase order number. Enter thegoods receipt PO with reference to the purchase order document. Enter thevendor number and display all the open purchase order documents.

Field Name or Data Type Values

Vendor V10000

2-2-1 You want to choose only the purchase order that was delivered towarehouse 01. To find the right purchase order, you should activatethe Ship to field in the List of Purchase Orders by using the FormSettings.

Choose the correct document from the list and copy it to the goodsreceipt PO.Goods Receipt PO number: __________________________

2-2-2 You receive an additional delivery in warehouse 02, however only 2 ofthe 4 printers have arrived.Create an additional goods receipt by referring to your purchase order.

Field Name or Data Type Values

Vendor V10000

Choose the correct document from the list of purchase orders.Goods Receipt PO number _________________________

2-2-3 Your vendor has also informed you that no additional deliveries areexpected. Find the open purchase order and make sure that the systemreduces the open purchase order quantity accordingly.

In order to check the result, return to the Inventory Status report ordisplay the stock situation in the item master record.

9-11

2-3 V10000 sends you an invoice for both of the above deliveries. Enter theinvoice into the system.

2-3-1 Include all the items, referring to the two deliveries when you enter theinvoice. Before you save the invoice, define a Vendor ReferenceNumber for this transaction, for example 00125/04A/P Invoice number: _______________________

9-12

Solutions

Unit: Variations in Purchasing – A/PTopic: Purchasing for Multiple Locations

2-1 You want to place an order with your vendor, V10000 for items to bedelivered to two different warehouses. Open a purchase order document andenter the vendor number. You order two units of items C00010, and C00011to be sent to the main warehouse of your company. You also need to orderitem A00001 for a different warehouse. Create one purchase order that can besent to your vendor, but that will split into two purchase orders in the system.

Purchasing-A/P Purchase Order

2-1-1 Enter the following data. If the warehouse field does not appear, useForm Settings to add the column to the display.

Field Name or Data Type Values

Vendor V10000

Item Use the Tab key to chooseitems C00010 and C00011

Quantity 2 for each item

Warehouse 01

Item A00001

Quantity 4

Warehouse 02

2-1-2 Set the indicator to automatically split the purchase order.

Which indicator must be set in the purchase order containing differentwarehouses to get different purchase orders, one for each warehouse?Set the indicator Split Purchase Order on the Logistics tab page of thepurchase order.

Choose Add to save the purchase order.

Purchase Order number __________________________

9-13

2-1-3 How is this indicator defaulted into a purchase order?

The indicator can be set to default in:Administration System Initialization Document Settings PerDocument Purchase Order Split Purchase Order

2-2 The delivery of your purchase order for your main warehouse has arrived. Thevendor's delivery document refers to your purchase order number. Enter thegoods receipt PO with reference to the purchase order document. Enter thevendor number and display all the open purchase order documents.

Choose Purchasing-A/P Goods Receipt PO.

Field Name or Data Type Values

Vendor V10000

Choose Copy from Purchase Orders

2-2-1 You want to choose only the purchase order that was delivered towarehouse 01. To find the right purchase order, you should activatethe Ship to field in the List of Purchase Orders by using the FormSettings.On the last number line appearing, use the drop down in the FieldName field and choose Ship toChoose Update, then OK.Close the window.Choose Copy from Purchase Orders again. The field Ship to fieldnow appears in the rows.Choose the correct document from the list.Choose Finish.Add the goods receipt PO.Goods Receipt PO number: __________________________

2-2-2 You receive an additional delivery in warehouse 02, however only 2 ofthe 4 printers have arrived.

Create an additional goods receipt by referring to your purchase order.Purchasing-A/P Goods Receipt PO

Field Name or Data Type Values

Vendor V10000

Choose Copy from Purchase Orders.Choose the correct document from the list.Draw Document Wizard: select Use Row Exchange Rate from Base

9-14

Document and Customize.Choose Next.Change the quantity to 2.Choose FinishChoose AddChoose Yes.Goods Receipt PO number _________________________

2-2-3 Your vendor has also informed you that no additional deliveries areexpected. Find the open purchase order and make sure that the systemreduces the open purchase order quantity accordingly.

Choose Purchasing-A/P Purchasing Reports Open Items List.Choose Purchase Orders in the Open documents dropdown list.Select the correct PO and close it by choosing Data Close from themenu bar or right mouse-click Close.Choose Yes (system message).In order to check the result, return to the Inventory Status report ordisplay the stock situation in the item master record on the InventoryData tab.

2-3 V10000 sends you an invoice for both of the above deliveries. Enter theinvoice into the system.Choose Purchasing-A/P A/P Invoice

Field Name or Data Type Values

Vendor V10000

2-3-1 Include all the items, referring to the two deliveries when you enter theinvoice. Before you save the invoice, define a Vendor ReferenceNumber for this transaction, for example 00125/04

Choose Copy From Goods Receipt PO.Select the two goods receipt POs with all items, enter a posting dateand a vendor reference number, and choose Add.Choose Yes (system message).A/P Invoice number: _______________________

9-15

- Exercises

Unit: Variations in Sales – A/RTopic: Pre Sales Process - Sales Opportunities

At the conclusion of this exercise, you will be able to:

Create a new lead

Create a sales opportunity for the lead

Create a quotation from the sales opportunity

Set up activities for future actions

Run an analysis of the sales pipeline

In this exercise, you create a lead business partner master for apotential customer. You then create a sales opportunity for thislead. You explore the functionality of the sales opportunity formanaging the presales process. You create a quotation and anactivity from the sales opportunity. You view the dynamicopportunity analysis. Then you test whether leads and/or salesopportunities can be deleted.

1-1 Create Schneider & Sons as a new lead in the system and assign Marc Seller as thesales employee.

1-1-1 Enter the following information for the lead.

Field Name or Data Type Values

Code L20005

Type Lead

Name of Lead Lynn Lee

Sales Employee Sophie Klogg

1-1-2 Create a sales opportunity for the new lead. Enter any relevant backgroundinformation (level of interest, source, and so on) and classify theopportunity as a Lead (first stage), Start Date: today, Closing Date: today+ 2 days. You expect negotiations to be completed in three months with anamount of 10000 units of local currency.

10-1

Field Name or Data Type Values

BP Code L20005

Predicted Closing in(Potential tab)

3 months

Potential Amount(Potential tab page)

10,000

Interest range(Potential tab page)

Any

Information Source (General tab page)

Any

Stage (Stages tab page) Lead

Start Date (Stages tab page) Today’s date

Closing Date (Stages tab page) Today’s date + 2 days

What is the percentage likelihood of closing the sale?

___________________________________________

1-1-3 After an initial meeting (start date: today's date + 3 days) with the lead, younow have more specific information on the items and potential sales value.The potential sales value increases to 12000. Update the Potential Amountin the line and enter all relevant information that you got in the meeting asan Activity.

Field Name or Data Type Values

Start Date Today’s date plus 3 Days

Closing Date Today’s date plus 3 Days

Stage (in the row) 1st meeting

Potential Amount (in the row) 12000

Activities Select the orange arrow inthe Activities column for therow.

Search for opportunities associated with this lead.

Create an activity for the meeting and add the meeting.

What is the percentage likelihood of closing the sale?

___________________________________________

Save the changes to your opportunity.

10-2

1-1-4 Create a quotation from the sales opportunity.

In a second meeting (current date + 4 days), you create a quotation for thelead for items A1003 (100 units) and A1004 (100 units). Add a stageQuotation and assign the created quotation to the stage of the above salesopportunity (Link). Note how the potential sales change based on the totalvalue of the linked quotation.

Field Name or Data Type Values

Start Date Today’s date plus 4 Days

Closing Date Today’s date plus 4 Days

Stage Quotation

What is the percentage likelihood for closing the sale?

________________________________Enter the following information in the quotation:

Field Name or Data Type Values

Lead L20005

Item 1 A00005

Quantity 10

Item 2 C00010

Quantity 10

Save the quotation. Update and save the opportunity.

1-1-5 One week later you will ask the customer about his decision regarding thequotation. The system should remind you to set up a phone call with thecustomer. How do you set up this reminder?

_____________________________________________________

Create the document used as a reminder.

1-1-6 Now, take a look at how this sales opportunity has developed in theopportunities pipeline. Define any necessary restrictions (such as by salesemployee or creation date). Take a look at the Dynamic OpportunityAnalysis. You can configure the Dynamic Opportunity Analysis windowby using the Settings button and you can play back the progression of theselected opportunities.Select Sophie Klogg as the Sales Employee.

10-3

1-1-7 Can you delete the sales opportunity from the system?

______________________________________________

1-1-8 Can you delete the business master record of the lead from the system?

_______________________________________________

10-4

- Solutions

Unit: Variations in Sales – A/RTopic: Pre Sales Process - Sales Opportunities

1-1 Create Schneider & Sons as a new lead in the system and assign Marc Seller as thesales employee.

1-1-1 Choose Business Partners Business Partner Master Data.Make sure you are in Add mode.

Field Name or Data Type Values

Code L20005

Type Lead

Name of Lead Lynn Lee

Sales Employee Sophie Klogg

Choose Add.

1-1-2 Create a sales opportunity for the new lead. Enter any relevant backgroundinformation (level of interest, source, and so on) and classify theopportunity as a Lead (first stage), Start Date: today, Closing Date: today+ 2 days. You expect negotiations to be completed in three months with anamount of 10000 units of local currency.

Choose Sales Opportunities Sales Opportunity.

Field Name or Data Type Values

BP Code L20005

Predicted Closing in (Potential tab) 3 months

Potential Amount (Potential tab page) 10,000

Interest range (Potential tab page) Any

Information Source (General tab page) Any

Stage (Stages tab page) Lead

Start Date (Stages tab page) Today’s date

Closing Date (Stages tab page) Today’s date + 2 days

10-5

What is the percentage likelihood of closing the sale?

___________________________________________

Sales Opportunity Document Number __________________________

Choose Add.

1-1-3 After an initial meeting (start date: today's date + 3 days) with the lead, younow have more specific information on the items and potential sales value.The potential sales value increases to 12000. Update the Potential Amountin the line and enter all relevant information that you got in the meeting asan Activity.Search for opportunities associated with this lead.

Choose Sales Opportunities Sales Opportunity.Choose Data Find.Search for opportunities of the lead by entering the code of the lead andchoosing the Find button.On the Stages tab page choose right mouse-click Add Row and enter thedata below into this new row.

Field Name or Data Type Values

Start Date Today’s date plus 3 Days

Closing Date Today’s date plus 3 Days

Stage (in the row) 1st meeting

Potential Amount (in the row) 12000

Activities Select the orange arrow inthe Activities column for therow.

Create an activity for the meeting and add the meeting.

What is the percentage likelihood of closing the sale?

___________________________________________

Choose Update and OK to save the changes to your opportunity.

1-1-4 Create a quotation from the sales opportunity.In a second meeting (current date + 4 days), you create a quotation for thelead for items A1003 (100 units) and A1004 (100 units). Add a stageQuotation and assign the created quotation to the stage of the above sales

10-6

opportunity (Link). Note how the potential sales change based on the totalvalue of the linked quotation.

Choose Sales Opportunities Sales Opportunity.Choose Data Find.Search for opportunities of the lead by entering the code of the lead andchoosing the Find button.On the Stages tab page choose right mouse-click Add Row (or use themenu selection Data Add Row).Enter the data below into this new row.

Field Name or Data Type Values

Start Date Today’s date plus 4 Days

Closing Date Today’s date plus 4 Days

Stage Quotation

What is the percentage likelihood for closing the sale?

________________________________To create the quotation from the opportunity, select the symbol in theDocument type column. Select the document type Sales Quotations.Press the Tab key in the column Doc. No., and choose New.

Field Name or Data Type Values

Lead L20005

Item 1 A00005

Quantity 10

Item 2 C00010

Quantity 10

Choose Add to save and answer the question on updating the amount andgross profit with Yes.The Potential Sales is now as big as the total value of the linked quotation.Choose Update and OK.

1-1-5 One week later you will ask the customer about his decision regarding thequotation. The system should remind you to set up a phone call with thecustomer. How do you set up this reminder?

You can use activities. To assign an activity to a stage in the opportunity,select the orange arrow in the Activity column on the Stages tab page.Create the activity and choose Add.

Choose Update and OK to save the changes to the sales opportunity.

10-7

1-1-6 Now, take a look at how this sales opportunity has developed in theopportunities pipeline. Define any necessary restrictions (such as by salesemployee or creation date). Take a look at the Dynamic OpportunityAnalysis. You can configure the Dynamic Opportunity Analysis windowby using the Settings button and you can play back the progression of theselected opportunities.

Choose Sales Opportunities Sales Opportunities ReportOpportunities Pipeline.Select Sales Employee and then choose Sophie Klogg.Choose OK in the Sales Employee window.In the Opportunities Pipeline window, choose Refresh.To take a look at the opportunity analysis.Choose Goto Dynamic Opportunity Analysis(or right mouse-click Dynamic Opportunity Analysis.)

1-1-7 Can you delete the sales opportunity from the system?Yes, you can delete the sales opportunity as long as it is open.

Open your opportunity.Choose Data Remove or right mouse-click Remove.

1-1-8 Can you delete the business master record of the lead from the system?

Yes, you can delete the lead, after you have deleted the sales opportunity.However you cannot delete the sales quotation from the system that youhave created for the lead.

Choose Business Partners Business Partner Master Data and findyour lead.

Choose Data Remove or right mouse-click Remove.

10-8

Sales - Exercises

Unit: Variations in Sales – A/RTopic: Presales Process – Additional Exercises on

QuotationsAt the conclusion of this exercise, you will be able to:

Create a sales quotation

Copy a sales quotation

Create a sales order referencing the quotation

In this exercise, you create a sales quotation with several itemsfor an existing customer. You give discounts on the row and totallevels. You then copy the information from this sales quotationinto a quotation for a different customer. You create a sales orderwhich references the quotation and then create a purchase orderfor the sales items..

2-1 Create a sales quotation.2-1-1 Enter the following information:

Field Name or Data Type Values

Customer C42000

Items C00008C00009

C00010

Quantity 5 of each

2-1-2 The customer would like to order item C00010 in red. If the field free textdoes not appear in the rows, use form settings to add the field.

2-1-3 Enter a discount for one of the items:

Field Name or Data Type Values

Discount % 8

2-1-4 Enter a discount of 5% for the entire document:

Field Name or Data Type Values

In front of the %Discount field 5

10-9

Sales Quotation Document Number ______________________

2-2 You would like to use the same quotation for a different customer. Copy thequotation.2-2-1 How do you copy this quotation?

______________________________________________________________________________________________________________

2-2-2 Is all the data copied?

________________________________________________________Choose a different customer (such as C20000) to test whether the data iscopied.

2-3 Create a sales order for your customer C42000 based on the sales quotation.(Note: Do not save the order until step 2-3-3.)2-3-1 Enter the information below in the sales order and copy the quotation:

Field Name or Data Type Values

Customer C42000

Delivery Date <current date>

Do not save the order yet.2-3-2 Two of the items need to be ordered from a vendor, C00008 and C00010.

What indicator must be set to order the items from within the sales order?

________________________________________________________2-3-3 Save the sales order and create a purchase order for the items from within

the sales order.Sales Order Number _____________________________

2-3-4 Call up the quotation you referenced from the order. Can you still changethe data?__________________________________________________________

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Solutions

Unit: Variations in Sales-A/RTopic: Presales Process – Additional Exercises on

Quotations

2-1 Create a quotation. Choose Sales-A/R Sales Quotation.2-1-1 Enter the following information:

Field Name or Data Type Values

Customer C42000

Items C00008C00009

C00010

Quantity 5 of each

2-1-2 The customer would like to order item C00010 in red. Add the relevantinformation to the item text .

If the field free text does not appear in the rows, use form settings to addthe field.

Choose Form Settings from the tool bar.On the Table Format tab, select the Visible and Active checkboxes for FreeText.

2-1-3 Enter a discount of 8% for one of the items.Enter a discount for one of the items:

Field Name or Data Type Values

Discount % 8

2-1-4 Enter a discount of 5% for the entire document:

Field Name or Data Type Values

In front of the %Discount field 5

Sales Quotation Document Number ______________________Choose Add.

2-2 You would like to use the same quotation for a different customer. Copy thequotation.2-2-1 How do you copy this quotation?

Open the previous quotation by one of the two following methods:

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1) Choosing Sales-A/R Sales Quotation, then Data Last Data Recordor the respective button in the tool bar, or

2) Choosing Sales Sales Reports Open Items List and display theopen quotations. Open the most recent quotation by choosing the arrow inthe Doc No. field.

When you have opened the quotation, choose Data Duplicate from themenu bar or right mouse-click Duplicate.

2-2-2 Is all the data copied?

Choose a different customer (such as C20000) and then press Tab. Themessage “Update document rows according to new BP's data?” appears.

If you choose Yes, the system adjusts the row data for the current businesspartner and the row discounts are deleted. If you choose No, it copies thedocument row data in full. Regardless of your answer, the discount on thewhole document is deleted.

Choose Add.

2-3 Create an order for your customer C42000 based on the sales quotation. (Note:Do not save the order until step 2-3-3.)

2-3-1 Choose Sales-A/R Sales Order.

Field Name or Data Type Values

Customer C42000

Choose the Copy from button and then choose Sales QuotationSelect the quotation and copy all the items by selecting Choose. Acceptthe choices in the Draw Document Wizard by choosing Finish.

Set the delivery date for the order to the current date and confirm thesystem message.

Do not save the order yet.2-3-2 Two of the items need to be ordered from a vendor, C00008 and C00010.

Choose the Logistics tab and set the Purchase Orders indicator.2-3-3 Choose Add. In the Purchase Order Confirmation window, select the items

C00008 and C00010 and choose the button >> icon.Sales Order Number _____________________________Choose Add.

2-3-4 Call up the quotation you referenced from the order. Can you still changethe data?Open the last sales order.Choose Goto Base Document.You can no longer change the data in the quotation.

10-12

Sales - Exercises

Unit: Variations in Sales – A/RTopic: Drop Ship

At the conclusion of this exercise, you will be able to:

Create a sales order with items that will be shipped directlyfrom the vendor to the customer

Create an A/P invoice for the drop shipped items

Create an A/R invoice for both the drop shipped items and theitems that you ship to the customer

In this exercise, you explore the option to have items shippeddirectly to a customer from one of your vendors. To do this, youmust have set up a drop ship warehouse.You will assign the drop ship warehouse to the appropriate rowsin the sales order, and then the sales order will prompt you tocreate a purchase order to the vendor for those items.

You create an A/P invoice for the drop shipped items. You thencreate an A/R invoice with all the items in order to see that itemsthat are drop shipped can be invoiced with items that aredelivered from your warehouse.

3-1 Create a new customer master record for Fitness Forum.

Field Name or Data Type Values

Code C2003

BP Type Customer

Name Fitness Forum

Group Small Accounts

Currency <Your local currency>

Enter information for the bill to address:

Field Name or Data Type Values

Name Fitness Forum

Street / P.O. Box <Any>

City <Any>

Zip Code <Any>

Country <Domestic>

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Enter information for the ship to address:

Field Name or Data Type Values

Name Fitness Forum

Street / P.O. Box <Any>

City <Any>

Zip Code <Any>

Country <Domestic>

Save the data record.

3-2 Create a sales order for your new customer C2003.

3-2-1 Create a sales order for this customer with the three items listed below.One of the items (C00001) should be delivered directly from the vendor.

Field Name or Data Type Values

Customer C2003

Delivery Date Today’s date

Item C00001

Quantity 3

Item C00002

Quantity 4

Item C00003

Quantity 5

3-2-2 Assign the drop ship warehouse (03) to the row with item C00001.If the warehouse field is not visible, use the Form Settings icon to add theWhse column.Save the order.Sales Order Number _______________________________________

The system now lets you create a purchase order for item C00001 bytransferring the item from the left to the right side in the PurchaseConfirmation window.

3-2-3 Open the sales order you just created. By using Form Settings, add thecolumn Target Doc to the table. From here, navigate to the associatedpurchase order, and pay attention to the ship-to address. Which addressdisplays?

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________________________________________________________3-2-4 Your vendor V1010 has delivered the material directly to your customer

and sends the invoice to you. Enter the A/P invoice referring to thepurchase order. Do any stock postings take place?

_________________________________________________________

3-2-5 You send the other items to the customer and attach the invoice for theentire sales order. Create the A/R invoice referring to the sales order.

A/R invoice number ________________________________

Do any stock postings for the drop ship item take place?_______________________________________________________

Reopen the A/R invoice you just created. View the journal entry. Do anystock postings for the drop ship item take place?

________________________________________________________

10-15

- Solutions

Unit: Variations in Sales-A/RTopic: Drop Ship

3-1 Create a new customer master record for Fitness Forum.

Choose Business Partners Business Partner Master Data.Change to Add mode.

Field Name or Data Type ValuesCode C2003BP Type CustomerName Fitness ForumGroup Small accountsCurrency <Your local currency>

Choose the Addresses tab page.To enter the bill-to address, choose Define New under Bill To.

Field Name or Data Type ValuesName Fitness ForumStreet / P.O. Box <Any>City <Any>Zip Code <Any>Country <Domestic>

To enter the ship-to address, choose Define New under Ship To.

Field Name or Data Type ValuesName Fitness ForumStreet / P.O. Box <Any>City <Any>Zip Code <Any>Country <Domestic>

Choose Add to save the data record.

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3-2 Create a sales order for your new customer C2003.

3-2-1 Create a sales order for this customer with the three items listed below.One of the items (C00001) should be delivered directly from the vendor.

Choose Sales-A/R Sales Order.

Field Name or Data Type Values

Customer C2003

Delivery Date Today’s date

Item C00001

Quantity 3

Item C00002

Quantity 4

Item C00003

Quantity 5

3-2-2 Assign the drop ship warehouse (03) to the row with item C00001.If the warehouse field is not visible, use the Form Settings icon to add theWhse column.Add the order.Sales Order Number _______________________________________

The system now lets you create a purchase order for item C00001 bytransferring the item from the left to the right side in the PurchaseConfirmation window.(If the Item Availability Check window appears, choose Continue to get tothe Purchase Confirmation window.)Choose Add to save the document.

(Two trouble shooting tips:

If the Purchase Confirmation window did not appear, re-open yoursales order and double-check that you have assigned the correctdrop ship warehouse to the row.

If you closed the Purchase Confirmation window before creatingthe purchase order, re-open the sales order and choose Add. Thewindow will reappear so that you can create the purchase order.)

3-2-3 Open the sales order you just created. By using Form Settings, add the column Target Docto the table. From here, navigate to the associated

purchase order, and pay attention to the ship-to address. Which address displays?It is the customer’s ship-to address.

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3-2-4 Your vendor V1010 has delivered the material directly to yourcustomer and sends the invoice to you. Enter the A/P invoicereferring to the purchase order. Do any stock postings take place?

Choose Purchasing-A/P A/P InvoiceChoose Vendor V1010Copy from Purchase OrderChoose your purchase order from the list.Enter today’s date as the posting date and choose Add.Confirm the system message.

To navigate to the corresponding journal entry:in A/P Invoice go to the Accounting tab page, and select the orangearrow beside Journal Remark. There is no stock account involved.The answer can be checked with:Inventory Inventory Reports Inventory Posting List:The Drop Ship Warehouse is not selectable in the By Warehousetab.

3-2-6 You send the other items to the customer and attach the invoice for theentire sales order. Create the A/R invoice referring to the sales order. Doany stock postings for the drop ship item take place?

Choose Sales-A/R A/R Invoice.Choose Customer C2003Copy from Sales OrderA/R invoice number ________________________________Add the invoice.Confirm the system message.

Reopen the A/R invoice you just created.View the journal entry from the A/R invoice’s Accounting tabDo any stock postings for the drop ship item take place?No stock postings for the drop ship item take place.

10-18

Exercises

Unit: Variations in Sales – A/RTopic: Down Payment Processing

At the conclusion of this exercise, you will be able to:

Review the setup for down payment processing

Create a sales order which requires a down payment

Create a downpayment request

Receive a down payment

Delivery and invoice the item

In this exercise, you begin by viewing the set up necessary fordown payment processing.

You create a sales order which requires a down payment. Youcreate a down payment request. Then you receive the downpayment. You ship and invoice the item. Then you review theaccounting postings that occurred in the down payment process.

4-1 You are selling a product which requires a down payment.4-1-1 Which two accounts assigned in the business partner master are used for

down payment processing? What are the account numbers?Note the account numbers used in your system for your customer C3000:

__________________________________________________________

If no account number appears for the down payment interim account gothrough the following steps:

4-1-1-1 Check that these asset accounts are created in your companydatabase.Choose Administration Setup Financials Edit Chartof AccountsScroll down the section with the control accounts for customers.In the UK database, this section is under Trade Debtors.Select the Trade Debtors (or appropriate) account, and thenchoose Add Sub-Level Account.Ask your instructor for appropriate account numbers to add. Inthe UK database, the account number should be:140080 Down Payment Interim Account

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If the down payment clearing (or advance customer payments)account is missing, follow the same steps but add an account inthe liabilities drawer with an appropriate account number, suchas 202010 in the UK database.

4-1-1-2 Assign the new account as the down payment interim account inthe account determination window.Choose Administration Setup Financials G/L AccountDeterminationChoose the Sales tab and the General sub-tab.Scroll down to the field Down Payment Interim Account.Enter the new account number.If the down payment clearing account is also unassigned, assignit here as well.

4-1-1-3 Assign the account(s) to the business partner C30000.Choose the Accounting tab.Enter the appropriate account number(s) in the Down PaymentClearing Account and Down Payment Interim Account fields.

4-1-2 Create a sales order document that requires a down payment and enter thecustomer number C30000.

Enter the following information:

Field Name or Data Type Values

Customer C30000

Delivery Date Any date you choose

Item/Service type Item

Item Description S10000

Quantity 1

Add the sales order.Sales Order Number ________________________

4-2 Create a down payment request associated with the sales order.4-2-1 Enter the following information in the down payment request.

Field Name or Data Type Values

Customer C30000

Copy the information from the sales order into the down payment request.

Set the down payment amount to 10% of the total.Down Payment Request Number _____________________

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4-2-2 Receive the down payment for customer C30000.Select the row with the down payment request.Choose the Payment Means icon.Choose the Cash tab.Right click in the Total field and choose Copy Balance Due.Choose OK.Choose Add.

4-3 Ship and invoice the customer for the product

4-3-1 Create a delivery from the sales order.Delivery document number: _______________________

Choose a serial number and save the delivery.

4-3-2 Create an A/R invoice from the delivery.Associate the down payment request to the A/R invoice.

Has the down payment been subtracted from the total due?

__________________________________

A/R invoice number: __________________________

4-3-3 Review the accounting postings made by adding the invoice.Which accounts associated with down payment processing appear in thedocument?

_______________________________________________________

10-21

Solutions

Unit: Variations in Sales – A/RTopic: Down Payment Processing

4-1 You are selling a product which requires a down payment.

4-1-1 Which two accounts assigned in the business partner master are used fordown payment processing? What are the account numbers?

Choose Business Partners Business Partner Master DataEnter C30000 in the Code field and choose Find.Choose the Accounting tab.

Answer: The down payment clearing account and the down paymentinterim account are used in down payment processing. When the downpayment request is added, the total amount is debited to the interim accountand the net amount is posted to the down payment clearing account.Note the account numbers used in your system here:

__________________________________________________________

If no account number appears for the down payment interim account gothrough the following steps:

4-1-1-1 Check that these accounts are created in your companydatabase.Choose Administration Setup Financials Edit Chartof AccountsSelect Assets and choose OK.Scroll down the section with the control accounts for customers.In the UK database, this section is under Trade Debtors.Select the Trade Debtors (or appropriate) account, and thenchoose Add Sub-Level Account.Ask your instructor for appropriate account numbers to add. Inthe UK database, the account number should be:140080 Down Payment Interim AccountThen choose OK.If the down payment clearing (or advance customer payments)account is missing, follow the same steps but add the account inthe liabilities drawer with an appropriate account number, suchas 202010 in the UK database.

10-22

4-1-1-2 Assign the new account as the down payment interim account inthe account determination window.Choose Administration Setup Financials G/L AccountDeterminationChoose the Sales tab and the General sub-tab.Scroll down to the field Down Payment Interim Account.Enter the new account number.Choose Update and then OK.If the down payment clearing account is also unassigned, assignit here as well.

4-1-1-3 Assign the account(s) to the business partner C30000.Choose Business Partners Business Partner Master DataEnter C30000 in the Code field and choose Find.Choose the Accounting tab.Enter the appropriate account number(s) in the Down PaymentClearing Account and Down Payment Interim Account fields.Choose Update and then OK.

4-1-2 Create a sales order document that requires a down payment and enter thecustomer number C30000.

Choose Sales – A/R Sales Order

Enter the following information:

Field Name or Data Type Values

Customer C30000

Delivery Date Any date you choose

Item/Service type Item

Item Description S10000

Quantity 1

Add the sales order.

Choose Add.Sales Order Number ________________________

4-2 Create a down payment request associated with the sales order.Choose Sales – A/R A/R Down Payment Request

4-2-1 Enter the following information in the down payment request.

Field Name or Data Type Values

Customer C30000

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Choose Copy From to copy information from the sales order.Choose Sales Orders.Select the sales order you just created.Then choose Finish in the Draw Document Wizard.Set the down payment amount to 10% of the total.

Add the down payment request.Down Payment Request Number _____________________

4-2-2 Receive the down payment.Choose Banking Incoming Payments Incoming PaymentsEnter C30000 as the customer code.Select the row with the down payment request.Choose the Payment Means icon.Choose the Cash tab.Right click in the Total field and choose Copy Balance Due.Choose OK.Choose Add.Confirm the system message.

4-3 Ship and invoice the customer for the product

4-3-1 Create a delivery.

Choose Sales – A/R Delivery

Enter the customer number C30000.Choose Copy from and then Sales Orders.

Select the sales order you created.Then choose Finish in the Draw Document Wizard.

Delivery Document Number _______________________Add the delivery.

Since S10000 is a serialized item, the Serial Numbers window will appear.Select a serial number from the available serial numbers and move it to theselected serial numbers area. Choose Update and then OK.Choose Add in the Delivery window.

Confirm the system message.

4-3-2 Create an A/R invoice.

Choose Sales – A/R A/R InvoiceEnter C30000.Choose Copy from and then Deliveries.Then choose Finish in the Draw Document Wizard.

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Select the down payment request by clicking on the Browse button to theleft of the Total Down Payment field.Select the down payment request in the Down Payments to Draw window.Choose OK.Has the down payment been subtracted from the total due?Yes.A/R Invoice Number __________________________________

Add the A/R invoice.Choose Yes to confirm the system message(s).

4-3-3 Review the accounting postings made by adding the invoice. Notice thatboth the down payment interim account and down payment clearingaccount appear in the document.

Re-open the A/R invoice you just created.Choose the Accounting tab.Choose the link arrow to the left of the Journal Remark field.

10-25

Exercises

Unit: Variations in Sales – A/RTopic: Selling Services

At the conclusion of this exercise, you will be able to:

Sell services without an item master

Sell services with an item master

In this exercise, you explore the two ways that you can sellservices. You can sell services without an item master or you canset up a service as an item master so that it can be sold on thesame document with other items.

5-1 Your customer C42000 would like you to install the computer system they arepurchasing from you. This is not a service you usually provide, but you arewilling to provide excellent service to a frequent customer.5-1-1 Enter the following information in the sales order:

Field Name or Data Type Values

Customer C42000

Delivery Date Today’s date

Item/Service type Service

Service Description PC setup service

G/L Account Number Use a sales revenue account(such as 400010 in the UK)

Total Price 2000

Save the sales order.Sales Order Document number ___________________________

5-1-2 After you provide the service, create an invoice for the customer. Theinvoice date is today. Create an A/R Invoice to bill for the serviceprovided.A/R invoice document number __________________________

5-1-3 Re-open the invoice you created and view the journal entry.

What type of posting is made to the customer account to indicate thecustomer owes us money: debit or credit?

10-26

_______________________________________________

What type of posting is made to record sales revenues: debit or credit?_______________________________________________

5-2 Create a service as an item and then sell it on a sales order with other items.5-2-1 Create an item master record with the following information for your new

service.

Field Name or Data Type Values

Item No. S22000

Item Description PC Setup Service

Inventory Item Checkbox Uncheck

Purchased Item Checkbox Uncheck

Item Type Labor

Item Group (define new) Installation

Base Price List Unit Price 100

Add the new item.

5-2-2 Use the new item in the sales process, beginning with a sales order.

Field Name or Data Type Values

Customer C30000

Delivery Date Today’s date

Item/Service Type Item

Item S22000

Quantity 1

Item P10003

Quantity 1

Sales Order Document Number: ______________________Add the sales order.

5-2-3 Create a delivery for the sales order. Even though the service is notdeliverable, you can copy it into the delivery so that all items can beinvoice together on an A/R invoice.Delivery Document Number________________________Save the delivery.

5-2-4 Open the delivery you just created and view the journal entry.Did the service item appear in the journal entry?

_______________________________________________

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5-2-5 Create an A/R invoice for the delivery.

A/R Invoice number _____________________________

5-2-6 Re-open the invoice you created and open the journal entry.What account was used for posting the service revenues?

_______________________________________________

10-28

Purchasing Solutions

Unit: Variations in Sales – A/RTopic: Selling Services

5-1 Your customer C42000 would like you to set up the computer system they arepurchasing from you. This is not a service you usually provide, but you arewilling to provide excellent service to a frequent customer.

Create a sales order document and enter the customer number. Change theItem/Service Type to Service. Enter a description for the service and choose theappropriate G/L account number for the service. Enter 2000 as the price for theservice.

Choose Sales – A/R Sales Order5-1-1

Field Name or Data Type Values

Customer C42000

Delivery Date Today’s date

Item/Service type Service

Service Description PC setup service

G/L Account Number Use a sales revenue account(such as 400010 in the UK)

Total Price 2000

Add the sales order.Sales Order Document number ___________________________

5-1-2 After you provide the service, create an invoice for the customer. Theinvoice date is today. Create an A/R Invoice to bill for the serviceprovided.Open the sales order and copy the service onto an A/R Invoice.Choose Last Data Record.Choose Copy to.Choose A/R Invoice.Choose Add to save the invoice.Accept the system message by choosing Yes.A/R invoice document number __________________________

5-1-3 Re-open the invoice you created and view the journal entry.Choose the Last Data Record icon.Choose the Accounting tab.

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Open the journal entry.Choose the link arrow next to the Journal Remarks field.What type of posting is made to the customer account to indicate thecustomer owes us money: debit or credit?_______________________________________________

A debit is posted to the customer account.What type of posting is made to record sales revenues: debit or credit?

_______________________________________________A credit is posted to the sales revenue account.

5-2 Create a service as an item and then sell it on a sales order with other items.

5-2-1 Create an item master record for your new service. Choose Inventory Item Master Data.

Make sure you are in Add mode.

Field Name or Data Type Values

Item No. S22000

Item Description PC Setup Service

Inventory Item Checkbox Uncheck

Purchased Item Checkbox Uncheck

Item Type Labor

Item Group (define new) Installation

Base Price List Unit Price 100

Add the new item.

5-2-2 Use the new item in the sales process, beginning with a sales order.

Choose Sales – A/R Sales Order

Field Name or Data Type Values

Customer C30000

Delivery Date Today’s date

Item/Service Type Item

Item S22000

Quantity 1

Item P10003

Quantity 1

10-30

Sales Order Document Number: ______________________Add the sales order.

5-2-3 Create a delivery for the sales order. Even though the service is notdeliverable, you can copy it into the delivery so that all items can beinvoiced together on an A/R invoice.Open the sales order and copy the rows onto a delivery.Choose Last Data Record.Choose Copy to.Choose Delivery.Delivery Document Number________________________Choose Add to save the delivery.Accept the system message by choosing Yes

5-2-4 Open the delivery you just created.Choose the Last Data Record icon.Choose the Accounting tab.Open the journal entry. Choose the link arrow next to the Journal Remarkfield.Did the service item appear in the journal entry?

_______________________________________________No the service item is not shown in the delivery’s journal entry.

5-2-5 Create an A/R invoice for the delivery.

Open the delivery and copy the rows onto an A/R Invoice.Choose Last Data Record.Choose Copy to.Choose A/R Invoice.Choose Add to save the invoice.Accept the system message by choosing Yes.A/R Invoice number _____________________________

5-2-6 Re-open the invoice you created with the Last Data Record icon.Choose the Accounting tab.Open the journal entry. Choose the link arrow next to the Journal Remarkfield.

What account was used for posting the service revenues?_______________________________________________

The standard account for sales revenue for items is used. In our UK demodatabase this account number is 400000.

10-31

Exercises

Unit: Variations in Inventory ProcessesTopic: Physical Inventory

At the conclusion of this exercise, you will be able to:

Perform a physical inventory

Post inventory differences

In this exercise, you follow the steps to create inventorydocuments for taking a physical inventory. You display thecurrent stock levels. Then you will enter quantities for each itemas if you had physically counted the stock with positive andnegative differences to see how the system handles thesedifferences in quantity.

1-1 You are planning to carry out a physical inventory in your warehouse. To do so, youfirst have to create the inventory documents and then print and distribute them to therelevant people

1-1-1 Create the inventory documents for warehouse 01 and items A00001-A00005.Display a print preview on the screen. Make sure that the current storagequantity does not display. Then view the print preview for the physicalinventory count document.

Enter the following on the Inventory Tracking tab page

Field Name or Data Type Values

Code from A00001

To A00005

Warehouse 01View the documents that would be used for the physical inventory.

1-1-2 You have distributed the inventory documents to your colleagues, who are toperform the inventory count tomorrow. How do you make sure that nobodycan make postings in the system while the inventory is being carried out?

_____________________________________________________________

_____________________________________________________________

11-1

1-1-3 Display the current stock situation of your materials A00001 through A00005for all warehouses.

1-1-4 Enter the count results for your materials A00001-A00005. Make sure thatyou have both the positive and negative differences. Carry out the valuationusing the Last Purchase Price list. If the system cannot find a purchase pricefor an item, enter a price manually.

Use the following data:

Field Name or Data Type Values

Code from A00001To A00005

Warehouse 01

Post the differences in inventory for the items and warehouse below.

Field Name or Data Type Values

Code from A00001

To A00005Warehouse 01

Price Source for WhseInventory Posting

By Price List

Price List Last Purchase Price

The actual stock does not change until the differences have been posted. If thesystem does not propose a price from the Last Purchase Price list, you have toenter one manually.

1-1-5 Check the impact of the stock posting in the inventory posting list and thetransactional journal report.

Field Name or Data Type Values

Code from A00001

To A00005

Warehouse 01

11-2

What document type do the respective stock posting have?

________________________________________________________

View the transaction journal report:

Field Name or Data Type Values

Original Journal All transactionsDate From……To <Current Date>

What transaction type appears for the entries?

__________________________________________________________

11-3

Solutions

Unit: Variations in Inventory ProcessesTopic: Physical Inventory

1-1 You are planning to carry out a physical inventory in your warehouse. To do so, youfirst have to create the inventory documents and then print and distribute them to therelevant people

1-1-1 Create the inventory documents for warehouse 01 and items A00001-A00005.Display a print preview on the screen. Make sure that the current storagequantity does not display. Then view the print preview for the physicalinventory count document.Choose Inventory Inventory Transactions Initial Quantities, InventoryTracking, and Inventory Posting.

Enter the following on the Inventory Tracking tab page

Field Name or Data Type ValuesCode from A00001To A00005Warehouse 01

Choose OK.Select the checkbox Hide Quantity Stored.

Choose the Print Preview icon to view the documents that would be used forthe physical inventory.

1-1-2 You have distributed the inventory documents to your colleagues, who are toperform the inventory count tomorrow. How do you make sure that nobodycan make postings in the system while the inventory is being carried out?

__________________________________________________________

___________________________________________________________

You have a couple of possibilities to avoid postings in the system while youcarry out the inventory.

You can set the Locked indicator for an item in a particular warehouse onthe Inventory Data tab of the Item Master Data window, or

11-4

You can lock the document numbering function by choosingAdministration System Initialization Document Numbering.Double-click on the document row to open the window where documentnumbering is set up. In this window, you can lock the numbering functionby selecting the Lock indicator. SAP recommends that you set this lock forall documents that post goods movements.

2-1-3 Display the current stock situation of your materials for all warehouses.

Choose Inventory Inventory Reports Inventory in Warehouse Report.

Field Name or Data Type ValuesCode from A00001

To A00005

Choose OK.

1-1-4 Enter the count results for your materials A00001-A00005. Make sure thatyou have both the positive and negative differences. Carry out the valuationusing the Last Purchase Price list. If the system cannot find a purchase pricefor an item, enter a price manually.

Choose Inventory Inventory Transactions Initial Quantities, InventoryTracking, and Inventory Posting.

Enter the following on the Inventory Tracking tab page.

Field Name or Data Type Values

Code from A00001

To A00005

Warehouse 01

Choose OK.Enter the count results in the Counted in Whse column. Ensure that the statuschanges by reviewing each item to ensure the Counted checkbox is selected.Choose Update and OK.

To post the differences, choose Inventory Inventory TransactionsInitial Quantities, Inventory Tracking, and Inventory Posting.

Enter the following on the Inventory Posting tab page.

Field Name or Data Type Values

Code from A00001

To A00005

Warehouse 01

11-5

Price Source for WhseInventory Posting

By Price List

Price List Last Purchase Price

Choose OK.The actual stock does not change until the differences have been posted. If thesystem does not propose a price from the Last Purchase Price list, you have toenter one manually.

Choose Reconcile.Confirm the system message.

1-1-5 Check the impact of the stock posting in the inventory posting list and thetransactional journal report.

For the inventory posting list: choose Inventory Inventory ReportsInventory Posting List.

Field Name or Data Type Values

Code from A00001

To A00005

Warehouse 01

Choose OK.

The respective stock postings have the document type ST.

For the transaction journal report: choose Financials Financial ReportsAccounting Transaction Journal Report.

Field Name or Data Type Values

Original Journal All transactions

Date From……To <Current Date>

Choose OK.

The entries will appear with the transaction type ST.

-

11-6

Exercises

Unit: Variations in Inventory ProcessesTopic: Consignment

At the conclusion of this exercise, you will be able to:

Create a consignment warehouse

Add stock to the consignment warehouse

Update the system when the customer uses consignment stock

View the stock levels in a consignment warehouse

In this exercise, you create a consignment warehouse for one ofyour customers so that you can store inventory at their location.The stock stored in the warehouse will remain yours, until thecustomer uses the items. At that point, you will create an A/Rinvoice to both post the goods issue and invoice the customer.

During this process you will periodically check the inventorylevels at the customer site.

2-1 Your customer, C40000, has agreed to manage consignment stock on their premises.You fill the customer’s warehouse, but do not charge for the goods until they areused. The customer confirms by telephone that the stock has been used.

2-1-1 Create a new warehouse for customer C40000. Assign it the warehouse code07 and the name CONSI C40000. Enter any domestic location, street, cityand country for the warehouse.Use the default accounts for Inventory Account, Cost of Goods Sold and PriceDifferences Account.

Field Name or Data Type Values

Warehouse Code 07

Warehouse Name CONSI C40000

Location any

Street/City any

Country Domestic

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Use the default accounts for the consignment warehouse. In the UK trainingdatabase, the following accounts are used. If you are using a differentlocalization, ask your instructor which account numbers should be used.

Field Name or Data Type Values

Inventory account 130000

Cost of Goods Sold account 500005

Price Differences 500200

2-1-2 Fill the warehouse for customer C40000 by sending 5 units of item C00010from warehouse 01. Enter this delivery in SAP Business One by using theInventory Transfer transaction.

Field Name or Data Type Values

Customer C40000From warehouse 01

Item No C00010

To Warehouse 07

Quantity 5

Tip: To check the quantity available in Warehouse 01 put the cursor in the ToWarehouse field and choose Ctrl+Tab.

2-1-3 How much stock is currently stored in the consignment warehouse?

_____________________________________________________________2-1-4 Customer C40000 informs you that they have used 2 items. You want to post

both the goods issue from the consignment warehouse and the invoice to thecustomer.

Which document allows you to invoice the customer and post the goods issue?

______________________________________________________________

Create the appropriate document type with the following information:

Field Name or Data Type Values

Customer C40000

Item No C00010

Quantity 2

Whse 07

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If the field Whse is not shown, add the field Whse to the invoice in order tochange the warehouse to 07. When you save the document, the system postsboth quantities and values.

2-1-5 Check the current stock situation for item C00010 in warehouses 01 and 07.

What is the quantity currently in warehouse 07?

____________________________________________________________

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Solutions

Unit: Variations in Inventory ProcessesTopic: Consignment

2-1 Your customer, C40000, has agreed to manage consignment stock on their premises.You fill the customer’s warehouse, but do not charge for the goods until they areused. The customer confirms by telephone that the stock has been used.

2-1-1 Create a new warehouse for customer C40000. Assign it the warehouse code07 and the name CONSI C40000. Enter any domestic location, street, cityand country for the warehouse.Use the default accounts for Inventory Account, Cost of Goods Sold and PriceDifferences Account.

Choose Administration Setup Inventory Warehouses.

Enter the following information on the General tab page:

Field Name or Data Type Values

Warehouse Code 07

Warehouse Name CONSI C40000

Location any

Street/City any

Country Domestic

On the accounting tab, enter the appropriate accounts for consignment. In theUK training database, the following accounts are used. If you are using adifferent localization, ask your instructor which account numbers should beused.

Field Name or Data Type Values

Inventory account 130000

Cost of Goods Sold account 500005

Price Differences 500200

Choose Add.

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2-1-2 Fill the warehouse for customer C40000 by sending 5 units of item C00010from warehouse 01. Enter this delivery in SAP Business One by using theInventory Transfer transaction.

Inventory Inventory Transactions Inventory Transfer

Field Name or Data Type Values

Customer C40000

From warehouse 01

Item No C00010

To Warehouse 07Quantity 5

To check the quantity available in Warehouse 01 put the cursor in the ToWarehouse field and choose Ctrl+Tab.

Choose Add.Confirm the system message.

2-1-3 How much stock is currently stored in the consignment warehouse?

__________________________________________________

Inventory Inventory Reports Inventory in Warehouse Report.Do not narrow the selection by item.Select warehouse 07.Choose OKThe current stock level is 5 units of C00010. No other items are in stock.

2-1-4 Customer C40000 informs you that they have used 2 items. You want to postboth the goods issue from the consignment warehouse and the invoice to thecustomer.Create a customer invoice from warehouse 07.Choose Sales-A/R A/R Invoice.

Field Name or Data Type Values

Customer C40000

Item No C00010

Quantity 2

Whse 07If the field Whse is not shown, add the field Whse to the invoice in order tochange the warehouse to 07.(Choose the Form Settings icon.

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On the Table format tab, mark Whse as visibleChoose OK to save the setting and return to the invoice.)After changing the warehouse from 01 to 07, save the A/R invoice.Choose Add and then confirm the system message.

The system posts both quantities and values.

2-1-5 Check the current stock situation for item C00010 in warehouses 01 and 07.

What is the current stock quantity for item C00010?______________________________________________________

Choose Inventory Inventory Reports Inventory in Warehouse Report.Narrow the selection for items to C00010 in the Code From and To fields.Select warehouses 01 and 07.Choose OK to run the report.

There should be a quantity of 3 in warehouse 07.

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Exercises

Unit: Variations in Inventory ProcessesTopic: Business Partner Catalog

At the conclusion of this exercise, you will be able to:

Define a business partner catalog number

View the business partner catalog number in a marketingdocument

In this exercise, you create business partner catalog numbers fortwo items provided by a preferred vendor.

Then check your data by using these items in a purchasingdocument.

3-1 Define business partner catalog numbers.

3-1-1 For both items A00001 and A00002 and the vendor V10000, maintainthe vendor catalog numbers in order to make them effective forpurchasing documents: for A00001 it is 600543 and for A00002 it is555600

Field Name or Data Type Values

Vendor V10000

Item No A00001

BP Catalog No. 600543

Item No. A00002

BP Catalog No. 555600

3-1-2 Check your data by entering a purchase order with the two items forthe vendor V10000.

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Solutions

Unit: Variations in Inventory ProcessesTopic: Business Partner Catalog

3-1 Define business partner catalog numbers.3-1-1 For both items A00001 and A00002 and the vendor V10000, maintain

the vendor catalog numbers in order to make them effective forpurchasing documents: for A00001 it is 600543 and for A00002 it is555600To make the customer / vendor catalogue numbers effective fordocuments they have to be maintained in Inventory ItemManagement Business Partner Catalog Numbers.On the BP tab, enter the following values.

Field Name or Data Type Values

Vendor V10000Item No A00001

BP Catalog No. 600543

Item No. A00002

BP Catalog No. 555600

Choose Add.

3-1-2 Check your data by entering a purchase order with the two items forthe vendor V10000.

Choose Purchasing-A/P Purchase Order.

Field Name or Data Type Values

Vendor V10000Item No. A00001

Double-click on the row to open the Row Details. You can see the BPCatalog No. in the list.

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