You are on page 1of 134

<Course Number and Course Title ABC123

Overiew>
ACCOUNTING INFORMATION SYSTEM
using SAP Business One

© SAP 2007 /
Understanding Information Systems

1. Introduction to AIS
2. ERP Systems
INFORMATION SYSTEMS
INFORMATION SYSTEMS

An Information System is a collection of hardware, software,


data, people and procedures designed to support data-intensive
applications and generate information that supports the day-to-
day, short-range, and long-range activities of users in an
organization.
CATEGORIES OF INFORMATION SYSTEMS

•Office information systems


Enhance work flow and facilitate communications among employees.

•Transaction processing systems


Captures and processes data generated during an organization’s day-to-day
transactions.

•Management information systems


Generates accurate, timely and organized information so managers and other
users can make decisions, solve problems, supervise activities, and track
progress.

•Decision support systems


Designed to help users reach a decision when a decision-making situation arises.

•Expert systems
Captures and stores the knowledge of human experts and then imitates human
reasoning and decision-making processes for those who have less expertise.
EVOLUTION OF INFORMATION SYSTEMS

1. The Manual Process Model


The manual process model is the oldest and most traditional form of accounting
systems. Manual systems constitute the physical events, resources, and personnel that
characterize many business processes. Traditionally, this model also includes the
physical task of record keeping. Nowadays manual records are rarely used in practices.

2. The Flat File Model


The flat file approach is most often associated with so-called legacy
systems. The flat file model describes an environment in which individual data
files are not related to other files. End users in this environment own their
data files rather than share them with other users.
Data processing is thus performed by standalone applications rather than
integrated systems. When multiple users need the same data for different
purposes, they must obtain separate data sets structured to their specific
needs. These results to data redundancy which contributes to three
significant problems in the flat file environment: data storage, data updating
and currency of information.
3. The Database Model
An organization can overcome the problems associated with flat files by implementing the database model to data
management. Access to the data resource is controlled by a database management system (DBMS). The DBMS is a special software
system that is programmed to know which data elements each user is authorized to access. Through data sharing, the following
traditional problems associated with the flat file approach may be overcome.

Flat file and early database systems are called traditional systems. Within this context, the term ‘traditional” means that the
organization’s information systems applications (its programs) function independently of each other rather than as an integrated
whole. These models were inflexible and did not permit the degree of data sharing that is found in modern database systems.
True integration, however, would not be possible until the arrival of the relational database model. These flexible database
approach permits the design of integrated systems applications capable of supporting the information needs of multiple users from a
common set of integrated tables.

4. The REA Model


REA is an accounting framework for modeling an organization’s critical Resources, Events and Agents (REA) and the relationship
between them. Once specified, both accounting and non-accounting data about these phenomena can be identified, captured and
stored in a relational database. From this repository, user views can be constructed that meet the needs of all users in the organization.
The availability of multiple views allows flexible use of transaction data and permits the development of accounting information
systems that promote integration.

REA is a conceptual model, not a physical system. The most notable application of REA philosophy is seen in the proliferation of
ERP systems.

5. The ERP Model


Enterprise Resource Planning is an information system model that enables an organization to automate and integrate its key
business processes.
ENTERPRISE RESOURCE PLANNING
(ERP)
ENTERPRISE RESOURCE PLANNING

WHAT IS ERP?

ERP which stands for Enterprise Resource Planning is business management


software that allows an organization to use a system of integrated applications to
manage the business. It aims to serve as a backbone for your whole business. ERP
software integrates all facets of an operation, including product planning,
development, manufacturing processes, sales and marketing.

The leader in ERP market share, and the one that invented the market to an
extent, is the German company SAP AG with its R/3 software. Other big players
include PeopleSoft Inc., Oracle Corp., Baan Co. NV and J.D. Edwards & Co.
ADVANTAGES OF ERP
One can say that the biggest advantage of an ERP system lies with its real
time capabilities and the ability to see what is going on with your company as it
happens.

Efficiency

Cost
Integration
Reduction

Fewer
Accuracy
Personnel
SAP BUSINESS ONE
(SBO)
What is SAP?
SYSTEMS, APPLICATIONS & PRODUCTS

SAP was founded in June 1972 as Systemanalyse und Programmentwicklung ("System Analysis and Program Development") by five former IBM
engineers in Mannheim, Baden-Württemberg: Dietmar Hopp, Klaus Tschira, Hans-Werner Hector, Hasso Plattner, and Claus Wellenreuther

As part of the Xerox exit strategy from the computer industry, Xerox retained IBM to migrate their business systems to IBM technology. As part
of IBM's compensation for the migration, IBM acquired the SDS/SAPE software, reportedly for a contract credit of $80,000. The SAPE software was given
by IBM to the founding ex-IBM employees in exchange for founding stock provided to IBM, reportedly 8%. Imperial Chemical Industries (ICI) was SAP's
first ever customer in 1972.

The acronym was later changed to stand for Systeme, Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications and
Products in Data Processing").

In 1976, "SAP GmbH" founded, and moved its headquarters the following year to Walldorf. SAP AG became the company's official name after
the 2005 annual general meeting. AG is short for Aktiengesellschaft (corporation). In August 1988, SAP GmbH transferred into SAP AG (a corporation by
German law), and public trading started 4 November. Shares are listed on the Frankfurt and Stuttgart stock exchanges.

In 1995, SAP was included in the German stock index DAX. On 22 September 2003, SAP was included in the Dow Jones STOXX 50. In 1991, Prof.
Dr. Henning Kagermann joined the board; Dr. Peter Zencke became a board member in 1993. Claus Heinrich, and Gerhard Oswald have been members
of the SAP Executive Board since 1996. Two years later, in 1998, the first change at the helm took place. Dietmar Hopp and Klaus Tschira moved to the
supervisory board and Dietmar Hopp was appointed Chairman of the supervisory board. Henning Kagermann was appointed as Co-Chairman and CEO of
SAP next to Hasso Plattner. Werner Brandt joined SAP in 2001 as a member of the SAP Executive Board and Chief Financial Officer. Léo Apotheker was a
member of the SAP Executive Board and president of Global Customer Solutions & Operations from 2002, and was appointed Deputy CEO in 2007.
Apotheker became co-CEO alongside Kagermann in 2008.

Henning Kagermann became the sole CEO of SAP in 2003.[9] In February 2007, his contract was extended until 2009. After continuous disputes
over the responsibility of the development organization, Shai Agassi, a member of the executive board who had been named as a potential successor to
Kagermann, left the organization. In April 2008, along with the announcement of Apotheker as co-CEO, the SAP supervisory board also appointed three
new members to the SAP Executive Board, effective 1 July 2008: Corporate Officers Erwin Gunst, Bill McDermott, and Jim Hagemann Snabe. With the
retirement of Kagermann in May 2009, Apotheker took over as the sole CEO. He was replaced by new co-CEOs Bill McDermott, head of field
organization, and Jim Hagemann Snabe, head of product development, effective 7 February.
SAP Offers Solutions for Companies of All Sizes

SAP Solutions for SMB


Large Midsize Companies / Small Companies /
Enterprises Subsidiaries Subsidiaries

mySAP All-in-One
Consists of the mySAP
Business Suite tailored to
mySAP Business the needs of midsize
SAP Business
Suite companies; the software One
Complete set of is easy to install, Can be implemented in
business functionality implement,and maintain, a matter of days and
for all requirements and provides a full range provides all the
of business functions functions you need
SAP Business One: Technology

 End-to-end solution
 Windows look & feel
Easy  Simple navigation
 Drill-down reporting
to Use  Drag&Relate
 Integrated with Microsoft Word and Microsoft Excel
Client
SDK

 2-tier client/server architecture


("fat client")
Architecture  Win 32 based, C++
 Different database options
Server  Version check
Integration
Toolkit
 Easy to configure
 Search helps
SDK  Forms
Flexible  Queries
 User-defined fields
Data Services  Formatted searches
base Mail
Backup
 SDK (programming interface for VB, C/C++, Java)
 Integration Toolkit 1.5 (data interface based on
Interfaces SOAP 1.1)
What are the Key Functionalities of
SAP Business One?

Accounting and Financials – Manage your general ledger, journals, budgets, and accounts
receivables and payables.

Sales and Customer Relationship Management – Manage the entire sales process from
first contact to closing the sale and from customer data management to aftersales support.

Purchasing and Operations – Control the entire procurement process.

Inventory and Distribution – Manage inventory across multiple warehouses and locations,
and track and record stock movements.

Reporting and Administration – Create, manage, and distribute reports that help foster
clarity in your business.
SAP Business One: Process Integration

Sales Process

MRP Process

Purchasing
process

Production
Process

Service
process
GETTING STARTED

- Password
- Navigation
- Functions in a form
- Customize Modules & Personalize Windows
Choose Company

Main Menu
Company OEC Computers
Sales manager
Modules Drag & Relate My Menu
Administration
User
Financials
Sales Opportunities
Sales – A/R
Purchasing – A/P
Administration  Choose Company Business Partners
Banking
Inventory
Production
MRP
Server Service
Human Resources
Reports

Company Databases
Menu Bar and Toolbar

File Edit View Data Goto Modules Tools Window Help Menu Bar
Toolbar

For navigating
General
between data records

Print Preview Export to MS-EXCEL Find

Print Export to MS-WORD Add

Send E-mail Export to PDF First Data Record


Send SMS Launch Application Previous Record
Send Fax Lock Screen Next Record

Last Data Record


Functions in a Form

Selection List
Business Partner Master Data
Dropdown List
Link Arrow Code Customer
Name
Currencies

Ctrl+Double-Click

Original Description: Tel 1


Tel 2
Mobile Phone
Mobile Phone
New Description: Fax
?
Email

Bold Italics
Personalize windows and settings

Main Menu
OEC Computers
Sales Manager
Modules Drag & Relate My Menu
User-defined Shortcuts
Forms
Reports Customize
Queries
Links Allocation List

Shortcut Current Window


F2
User-defined
Module Window
Menu Purchase Order
Administration
Financials Goods Receipt PO
Sales Opportunities Goods Return
Sales – A/R A/P Down Payment Request
Purchasing – A/P A/P Down Payment Invoice
Business Partners A/P Invoice
Banking A/P Credit Memo
Inventory A/P Reserve Invoice
Production Landed Costs
MRP Document Printing
Service Purchasing Reports

OK Cancel Allocate Remove


Customize Main Menu

Main Menu
OEC Computers
Sales manager
Modules Drag & Relate My Menu
Administration
Form Settings – Main Menu
Financials Menu Item Visible
Sales Opportunities
Sales – A/R Administration
Purchasing – A/P
Financials
Business Partners
Banking Sales /AR
Inventory ...
Production
MRP
Service
Manually choose
Human Resources the menu items you Apply Authorizations
Reports want to display.

Display only modules and menu


items the user is authorized for.
Drag&Relate

SAP Business One


OEC Computers
manager
Item Master Data
Drag and Relate
Sales / AR Item Number M00001
Description Mouse Pad
Sales Quotation
Foreign Descrip.
Sales Quotation Details Item Type Items
Sales Order Item Group Accessories
Sales Order Details Price List 01 Purchase Price List
Delivery

Delivery Details

Returns

Return Details

A/R Invoice

A/R Invoices Details

A/R Credit Memo

A/R Credit Memo Details


List of all quotations for item M00001
Display Parameters

 Language
 Color
 Default Length Unit
 Default Weight Unit
 Date Format, Date Separator
 Time Format
 Display Currencies on the Right
 Decimal Places, Decimal Separator, and
Thousands Separator
Master Data & Document Handling
Master Data Concept

Business Partners

 Addresses
 Payment Terms
 Price lists
 Control Account

Items

 Inventory Accounts
 Warehouses
 Item Groups
 Item Properties
 Price lists
Common Data Structure for Marketing
Documents

General Business Partner No.


Document
Name Status
Data
Contact Person Posting Date

Contents Logistics Accounting


Document Item/Service
Content
1 Item/Cat. No. Quantity Ship to
2 Pay to
Journal Remark
Shipping Type
Payment Terms

Tax Information

General Buyer/Sales Person Total Before Disc.


Information % Discount
(Footer) Remarks …
Total Payment Due
Row Type in Sales and Purchasing Documents

Contents

Select
Type Item No. Item Description Quantity Price Total (LC)
A1005 Color Printer 1 14,76 214,76
A1006 Ink Jet Printer 1 19,99 99,95
T The item A1006 will be sold out soon!
S Subtotal Printers 314,71
A1001 Black Cartridge 10 7,50 75,00
Form Settings-
Table Format A1006 Color Cartridge 10 9,10 91,00
S Subtotal Cartridges 166,00

In the documents of Sales and Total before Discount 480,71


Purchasing, you can choose the
row’s type.
Business Processes
PROCUREMENT PROCESS

- Purchase Order
- Goods Receipt PO
- A/P Invoice
- Outgoing Payment
Purchasing Items: Process Overview

System Configuration

Master data

Warehouse management
Marketing
Inbound Outbound
Purchasing & Service
logistics logistics
Sales
Production

Financial controlling

Purchase Goods A/P Invoice Outgoing


Order Receipt PO Payment
Purchase Order

 10 printers are currently in stock


 We order 5 more from our vendor
 Five appear on the inventory reports as ordered
 15 will be available to promise,
 Although only 10 are physically in stock
Goods Receipt PO

 10 printers are currently in stock


 We ordered 5 more from our vendor
 The vendor delivers 5
 After goods receipt, 15 are in stock
Two options to create a follow-up document:
Copy to/ Copy from

Copy to Copy from


 Open saved document to  Enter business partner in a
copy new document
 All items copied to new  Choose one or multiple
document documents from a list
 No options available on  Draw document wizard allows
how items are copied you to:
 However, you can delete  customize rows and
items and adjust quantities copied
quantities after copying  select the exchange rate to
use
Effects of the Goods Receipt PO

3 2
A/P Invoice

 You receive an invoice from the vendor for the 5 printers


 You enter an A/P invoice to reflect the vendor invoice
 The A/P invoice is the basis for payment to the vendor
Effects of the A/P Invoice

4 3

1 2

Quantity increases only if no


prior goods receipt is
referenced.
Postings in Purchasing Process for Inventory
Items
Item Category:
Inventory Item
Sales Item
Purchased Item
Fixed Assets

Allocation Allocation
Stock Acc. Acc. Vendor
Acc.
100 100
100 100
Document Flow in Purchasing

1 2 3

Warehouse
(Quantity)

General Ledger
(Value)
Payment Processing

 We owe the vendor for 5 printers


 An A/P invoice has been entered for the amount owed
 You create an Outgoing Payment according to payment terms
 The journal entry:
 Reduces cash (credit)
 Decreases the amount owed to the vendor
Partial Deliveries and Overdeliveries

Goods Receipt PO
Purchase Order
Vendor Y1000
Vendor Y1000

#
#
1 6
1 10
2
2 15
3
3 2

1) Overdelivery 2) Add Items


Goods Receipt PO
Goods Receipt PO Goods Receipt PO
Vendor Y1000
Vendor Y1000 Vendor Y1000

#
# # 1 4
1 1 2
2 20 2 3
3 3
4 1
Goods Returns

Allocation
Stock Acc. Acc.
100 100

 20 scanners were ordered and


delivered
 2 scanners were damaged in transit
 Use the goods return to return the Allocation
Stock Acc. Acc.
scanners to the vendor for credit 100 100

Warehouse
(Quantity)

General Ledger
(Value)
Credit Memo for Purchasing

Allocation
Stock Acc. Costs Acc. Alloc. Vendor
100 100 100 100
 50 CD boxes were ordered,
delivered and invoiced
 5 boxes were defective
 Use the credit memo to return
Stock Acc. Vendor
items for credit when an A/P
100 100
invoice exists

Warehouse
(Quantity)

General Ledger
(Value)
SALES PROCESS

- Sales Order
- Delivery
- A/R Invoice
- Incoming Payment
Sales Process

System Configuration

Master data

Warehouse management
Inbound Outbound Marketing &
Purchasing Service
logistics logistics Sales
Production

Financial controlling

Sales Order Delivery A/R Invoice Incoming


Payment
Leads and Customers

Leads Customers
 Use on pre-sales  Use on any
documents or sales sales document
orders  Convert leads to
 Not on deliveries or customers when
invoices they buy
Key Data in the Sales Process: Items

 Items represent products to be sold


 Item information is stored in the item
master record
 You can type item codes directly into a
sales document rows or search for items
by description or other item attributes
Using Price Lists in the Sales Process

Price List

Customer Master Record

Price List Basics:


 10 default price lists are provided. Sales Documents
 Items are linked to every price list.
 Assign a price list to each customer.
 The assigned price list defaults into a
sales document automatically.
Sales Order

 Our customer orders 5 laptops


 We enter customer, items, and quantities in the sales order
 The system determines the price automatically
 A manual discount for 1% is entered in the order
 The customer is also eligible for an early payment discount of 2%
Item Availability Check in Sales Orders

2.) 1.) Administration  System Initialization


Sales Order
 Document Settings
Item No. Description Quantity WH Document Settings
A00001 … 50 01 Per Document

Document Sales Order

Activate Automatic Availability Check


If Order Quantity Item Availability Check
>
Quantity Available Item No. A1000
Warehouse 01
3.) Quantity Ordered 50 Pair = 100 pcs
Requested Due Date 05.06.2010
Available Quantity 28 pieces
Earliest Available 10.06.2010

Select Action:
 Continue
 Change To Available Quantity
 Display Available-to-Promise Report
 Display Quantities in Other Warehouses
 Display Alternative Items
 Delete Row
Delivery

 We ship 5 laptops to the


customer
 The quantity of 5 laptops is
removed from inventory
 The inventory account is
credited for item cost
 The cost of goods sold
account is debited
A/R Invoice

 We bill our customer for the 5 laptops


 The total includes the 1% manual
discount
 The due date is based on the customer’s
payment terms
 A journal entry is created to record:
 a credit to revenue
 a debit to the customer account
Incoming Payment

 The customer pays the invoice on


time for the 5 laptops
 The total includes the 1% manual
discount and the early payment
discount of 2%
 A journal entry is created to
record:
 debits to our house bank
account and discount accounts
 a credit to the customer
account
Sales to One-Time Customers (A/R Invoice +
Payment)

Menu
Setup  Financials  G/L Account Determination
Administration
Sales
Default Customer for A/R Invoice + Payment
C9999 One-Time Customer

A/R Invoice + Payment


Payment Means
Customer C9999
Name Michael Kramer Check
Ship To Main 9855
Chicago TX 65095 Bank Transfer USD 1000.00
Item No. Item Description Credit Card
A00001 Twin Seater
A00002 Three Seater Cash USD 303.84
...
Balance Due USD 1303.84
Add
Balance Due USD 1303.84
Postings in Sales Process for Inventory Items

Inventory Item
Sales Item
Purchased Item
Fixed Assets

Sales Order Delivery A/R Invoice

Revenues Account
Sales Revenues – EU
Cost Acc. Stock Acc.
Customer Foreign Revenues Acc.
100 100
100 100
Document Flow in Sales

Sales Order Delivery A/R Invoice

Warehouse
1 2 3
(Quantity)

General Ledger
(Value)
Returns

Delivery

Cost Account Stock Account


50 50

Returns

Cost Account Sales Returns


50 50

Warehouse
(Quantity)

General Ledger
(Value)
Credit Memo

Sales
Cost Acc. Stock Acc. Customer Revenues
50 50 100 100

Customer Revenues Acc.


100 100
Cost Acc. Stock Acc.
50 50

Warehouse
(Quantity)

General Ledger
(Value)
OTHER FUNCTIONALITIES

- Warehouse Management
- Pick & Pack
- Serial & Batches
- Pricelist & Discounts
Warehouse Management Process

System Configuration

Master data

Warehouse
management Marketing
Inbound Outbound
Purchasing & Service
logistics logistics
Sales
Production

Financial controlling

Goods Receipt Inventory Transfer Goods Issue


Pick and Pack

System Configuration

Master data

Warehouse
management Marketing
Inbound Outbound
Purchasing & Service
logistics logistics
Sales
Production

Financial controlling

Sales Picking Delivery Packing A/R Invoice


Order Documen for the
t Creation Delivery
Defining a warehouse

Warehouse 01
General
Warehouse

General
Accounting
Address Information
Default Accounts
Location

Drop Ship
Basic Units of Measure

Sales
5 x 10-pack (500g)

Purchasing Warehouse
Sales
10 x 2000 x
15 x Set 1 (600g)
Bale (10kg) Ball of wool (50g)

Sales
25 x Set2 (300g)

 Use different units of measure in:


 Purchasing documents

 Sales documents

 Warehouse
Inventory Valuation Methods

Moving Average Price

€ € € € € First In – First Out (FIFO)

Standard Price
Serial Numbers and Batches

 Batches
 Used to track groups of
items with common
characteristics
 Serial Numbers
 Used to track individual objects
Goods Movement and Serial Numbers

On Every
Transaction

On Release
Only

Optional on
Receipt documents
Configuration Settings for Item Master
Records

 Serial and batch


management methods
 Default warehouses
 Set G/L accounts for
items at one of three
levels:
 Warehouse
 Item Group
 Item Level
 Set up default values for items
 Costing by company or
belonging to an item group:
warehouse
 Valuation Method
 Planning Method
 Procurement Method
 G/L accounts
Warehouse Management Overview

Goods Receipts PO/ Delivery/


Goods Returns Returns from
from Purchasing Sales
Functions Functions

Goods Receipts Goods Issues

Warehouse
Beginning
InventoryTransfer
Quantities
between
Warehouses

Remove Goods Receipts from


Components Final Product
for Production
Goods Receipts / Goods Issue

Goods Issue
Goods Receipt

22 Primary
Number
Price List Last Purchase Price
General Information 1

Item No. Quantity Price Total


A1000 10 10 EUR 100 EUR

Table Window

Remarks

General Information 2
Journal Remark Goods Receipt
Inventory Postings

Inventory Item
Sales Item
Purchased Item
Goods Fixed Assets
Receipt
Warehouse Stock Account Inventory Offset - Increase

100 100

Goods
Issue

Warehouse Inventory Offset - Decrease Stock Account

100 100
Transferring Stock

Inventory Item
Sales Item
Purchased Item
Inventory Fixed Assets
Transfer

Inventory account Inventory account


(Warehouse 01) (Warehouse 02)

100 100

Warehouse 01 Warehouse 02
Warehouse Reports

Items List Overview of items and prices


Displays items with prices from stored price lists

Inventory Posting Overview of postings


Shows all quantity- or cost based postings for items
List

Current and planned status


Inventory Status Shows current stock situation and information on
planned receipts and withdrawals

Inventory in Warehouse Stock overview: normal or detailed


Detailed gives additional information on the last stock
Report movement data and prices per material

Inventory Audit Report Origins of posted stock transactions


Provides an audit trail for users

Inventory Valuation What if scenarios


Allows you to valuation your inventory using different
Simulation Report valuation methods and dates.
Sales Process with Picking

Sales Order
Pick Pack Manager
List of orders to be released or picked.
1 2 4

Open Released Picked

Deliver
5
3

Available Items
A1000 4 pcs.

Picking from Pick List Delivery A/R Invoice


Sales Process with Packing

Available Items
A1000 4 pcs.

Sales Order Picking Delivery


1

Define Packages

2 Existing Packages
Box
3
Package Content
A1001 2 pcs. Packing

A/R Invoice
Setting up Pick and Pack

Document Settings, General Tab


 Setting the response to release of
inventory below minimum level:
 Without warning
 Warning only
 Block Release

Administration Setup for Inventory


 Defining package types used for
packing
Pick and Pack: Topic Summary

Key points from the Pick and Pack topic:


 The Pick and Pack Manager:
 Creates a pick list
 Reports on picked quantities
 Allows you to specify packages types for picked items
 Creates a delivery for picked items
 Packing can be done inside the Pick and Pack Manager or
directly in the delivery document
 Pick and pack manager displays items in status drawers:
 Open – for open sales orders or reserve invoice rows
 Released – for items ready to be picked
 Picked – for quantities already picked
Pricing in Business One

The basic way of pricing.


Price Lists Enter prices into price lists and assign the
appropriate price list to a business
partner.

Define a discount percentage by date and


Period and
quantities for a price list.
Volume
Discounts Overrides the basic price list assigned to
the business partner.

Define discount percentage by item group,


Discount properties or manufacturer.
Groups
Overrides period and volume discounts.

Determine special prices by item,


Special Prices business partner, dates and
quantities.
Overrides all other prices.
Item Prices

Price Lists

Item Number A1001

Price List Purchase Price List 299.00

Price List Low Volume 499.00

Price List High Volume 599.00

Price List 04 799.00

Price List 05

Price List 06 299.00


Price list concept

Items Management Business Partner Master Data

Item Number A1001 C1001

Price List Payment


Purchasing Price 299.00 Terms

Price List High Volume 499.00 Price List Price List High Volume
Reseller 599.00
Price List 04 799.00
Price List 05

Document
Price List 06 299.00
Business Partner C1001

Item Price
A1001 499.00
Maintaining Price Lists

Easy to edit by filtering item The sales price for major


master records (for example, by customers is 1.5 times the
item group, vendor, and so on). purchase price.

Update Entire Price List


Update by Selection

# Price List Name Base Price List Factor Rounding Method Group

0 Last Purchase Price

1 Purchasing Price Last Purchase Price 1.0 No Rounding Gr.1

2 Large Customers Purchasing Price 1.5 / Gr.2

3 Small Customers Purchase Price 1.6 / Gr.2

By double-clicking the row number, To add new price


you can maintain the individual lists, choose Data 
item prices directly (the system Add Row.
updates the item master record).
Automatic or Manual Updates

# Name Price List Base Price List Factor Rounding Method Group

1 Large Cust. Purchasing Price List 1.6 No Rounding Gr.1

Price Maintenance

double-click
Prices
that are
maintained are
# Item number Description Base Price Factor Price Man. NOT
automatically
1 A0001 Chair Eur 85 2 Eur 190 
updated
2 A0002 Table Eur 800 2 Eur 1,800 
in accordance
with the factor.
3 A0003 Bed Eur 1200 2 Eur 2,400.00 

4 A0004 Shelf Eur 500 2 Eur 1,000.00 


Updating Price Lists

Update Entire
Update by Selection
Price List
1) Enter a new factor in the 1) Enter a new factor in the
price list you want to price list you want to
update (for example: update.
Increase prices for major
2) Choose Update.
customers by 0.15 => 1.5
-> 1.65).
3) Make a selection (for
example, all the items
2) Choose Update.
from a specific regular
3) The system updates all vendor).
the prices in accordance
4) Choose OK.
with the new factor.
5) The system updates the
prices of the selected
items in accordance with
the new factor.
Last Purchase Price Price List

When you post one of the


Base following transactions in the
Price List system, the system updates the
Auto-
matic last purchase price:
Last Purchase
update  AP invoice
Price
only  Miscellaneous goods receipts
 Inventory / postings of
beginning quantities
 Stock posting due to positive
stock differences
 Work order and automatic
calculation of last purchase
prices for all components
 Data import
Period and Volume Discounts

double-click

Price List Price List Low Volume double-click

# Item Price

1 Chair 2 Eur 190.00

2 Table 2 Eur 1,800.00


Validity Periods
3 Bed 2
From to
4 Shelf 2 Eur 1,000.00 Quantity Scale

From to
Working with Discount Groups

%
 You can assign discount groups based on
item groups, item properties, or
manufacturer's products for each
business partner.
 Discounts defined by means of a discount
group refer to the price list stored in the
BP master record.
Special Prices for Business Partners

For a specific business


partner
double-click

double-click

Special prices for selected


items of a business
partner:

 With or without Validity Periods


reference to a price list
From to
 Discount calculation Quantity Scale

 Automatic update when From to


price lists are updated
Updating Special Prices Globally

Change Change the discount rate or special price.


Discount Select which items are affected by the
change:
 With the automatic indicator
 Without the automatic indicator
Change Price  Without a price list assignment

Allows you to update the special prices


Refresh by based on the current price list information
Price List for items without using the automatic
indicator

Allows you to delete special prices


Delete
Price Determination in SAP Business One

Document

Price
Item ???

1. Does a BP and item-specific special price exist? NO

2. Does a BP-specific group discount exist? NO

3. Do period and volume discounts for the Price


List exist? NO

4. Price List
Document

Price
Item 479
MATERIALS REQUIREMENTS PLANNING
Overview of Inventory Planning with MRP

System Configuration

Master data

Warehouse management
Marketing
Inbound Outbound
Purchasing & Service
logistics logistics
Sales
Production

Financial controlling

Define Run MRP View order


Planning recommendations
Data
Materials Requirement Planning: Production
Scenario

There is a requirement
for 10 printers on a Printer
sales order.
Sales Order
The printer is a
produced item. Printer
Printer Memory Power
10 pcs. Head Boards Pack
The boards, the printer 1 pc. 2 pcs. 1 pc.
head and the power
pack are purchased Material Requirements Planning
items.

after MRP-run:
Production Order
The MRP creates Printer
recommendations for a 10 pcs.
production order for the
printer and
recommendations for
the sub-items based on Purchase Order Purchase Order Purchase Order
whether they are Printer Head Memory Boards Power Pack
purchased or 10 pcs. 20 pcs. 10 pc.
produced.
Inventory Planning Scenario – Before and After
MRP

stock /receipts Purchase


Stock Order
20 pcs.
before MRP-run: 30 pcs.
time
Sales Sales Sales
this is the current Order Forecast Forecast
inventory status and 40 pcs. 50 pcs. 30 pcs.
planned forecasts requirements
for
a purchased item.
Material Requirements Planning

after MRP-run:

the MRP-run creates


recommendations for stock / receipts Purchase
purchase orders Stock Order
P.O. *) P.O. *) P.O. *)
20 pcs. 30 pcs.
to be able to fulfill the 20 pcs. 20 pcs. 30 pcs.
time
requirements. Sales Sales Sales
Order Forecast Forecast
40 pcs. 50 pcs. 30 pcs.
requirements
Planning Data in the Item Master

Item Master Data

Item Number P1001


Description Printer

Planning Data

Planning Method MRP / None

Procurement Method Make / Buy

Order Interval Weekly / Monthly / …

Order Multiple 12

Minimum Order Qty. 10,00

Lead Time 10 Days


MRP Lead Time

Printer
Lead Time: 10 days

Printer Head Memory Power Pack


Sales Order
Printer Boards
Delivery Date: 30.11.

Material Requirements Planning

Purchase Orders Production Order


stock / receipts
Sub-components Printer

time
10 working days
16.11. 30.11.
MRP Requirements Sales Order
requirements
head, boards, pack Printer
Bills of Materials

A bill of materials:
Printer
 Represents an item to be
Lead Time: 10 days
produced
 Top level is item number
 All components are items
Printer Memory Power Pack
Head Boards  Can be multi-level
Define Forecasts

Item Printer Start Date 01.09. EndDate 31.12. View monthly

stock / receipts

01.09. 01.10. 01.11. 01.12. 31.12.


time
Sales Sales Sales Sales
Forecast Forecast Forecast Forecast
requirements Printer Printer Printer Printer
50 pcs. 40 pcs. 20 pcs. 60 pcs.
Consuming Forecasts

Today:
Item July 1 July 23 July 24 July 25 July 26
Printer 40 10
Initial stock
Receipts
Gross Requirements 40 10

 A sales forecast originally showed 50 printers needed by July


24
 A sales order is created for 10 printers to deliver on July 25
 The forecast was reduced by 10 to account for the sales order
 A production order will be created for 50 printers
MRP Configuration Settings

 Setting Consume Forecast - General


Settings, Inventory Tab
 Consume forecast
 Consumption Method
 Days Backward and Days Forward

 Defining MRP Defaults for Item Groups


– Inventory Setup
 Planning by MRP
 Procurement Method
 Order Interval
 Order Multiple
 Minimum Qty
 Lead Time
Run MRP: Define MRP Scenario

 Use an existing scenario or define a


new scenario:
 Name and description
 Planning Horizon
 Items included in the run
 Simulation or actual run
Run MRP: Choose Data Sources

Input
Sales Parent
Forecast Inventory
Order / Production
A/R Reserve Order
Invoice
Planning
Bill of Parent
Data from
Purchase Material Dependant
Item
Order / Requirement
Master
A/P Reserve
Invoice
Material Requirements Planning

Output

Production Purchase
Order Order
MRP Results

MRP Results
Planning Horizon 25.09. - 30.09. Display after MRP

# Item No. Past… 25.09. 26.09. 27.09. 28.09. 29.09. 30.09.

1 P1001 10

Initial Stock
Receipts
Gross
Requirements 10 click
Final Stock

dead periods
Pegging Information – P1001

Item Code P1001

Source Type Due Date Quantity

17 Sales Order 28.09. 10


Order Recommendation Report

Order Recommendation
Create Order Type Item Quantity Due Date Vendor
Purchase Order A1019 50 21.09. S1007

Purchase Order A1020 100 21.09. S2100

Production Order P1001 50 15.10.

Purchase Order
Supplier S1007 Delivery Date 21.09.
Item No. A1019 Quantity 50

Production Order
Product No. P1001 Due Date 15.10.
Planned Quantity 50
PRODUCTION

- Bill of Materials
- Materials Resource Planning
Production Process Overview

System Configuration

Master data

Warehouse management
Inbound Outbound Marketing &
Purchasing Service
logistics logistics Sales
Production

Financial controlling

Create Release to Issue Report


Production shop floor Components Completion
Order
Bills of Materials Types

BOM Types
 Production
 Sales Printer
 Assembly
 Template

Printer Memory
Head Boards Power Pack
1 pc. 2 pcs. 1 pc.
Category of the Item Master Record of the Parent
Item in Bills of Material

BOM Assembly Sales Production


BOM BOM Template BOM
Type
Item
Category

Inventory Item (1.)

Sales Item (1.) (1.)

Purchased Item (1.) (1.)

(1.) optional
Phantom Item

Phantom Item
(does not appear in production orders Skateboard
and only for information in MRP) 1 Unit

Wheels Board Axis Screws


4 Units 1 Unit 2 Units 8 Units

Tire Rim Screws


1 Unit 1 Unit 4 Units
Production Order

 Production Orders include:


 Finished product
 Components
 Component issue method

 Production orders can be generated


automatically by MRP or created
manually.
Production Process Steps

System Configuration

Master data

Warehouse management
Inbound Outbound Marketing &
Purchasing Service
logistics logistics Sales
Production

Financial controlling

Create Release to Issue Report


Production shop floor Components Completion
Order
Production Order Types

Standard Production Order


Special Production Order
Product
Item
A B C
X Y Z

Disassembly Production Order

Product

A B C
Steps to Enter a Production Order

 Select production order type


 Select parent item
 Enter quantity to be produced
 Enter a finish date for production
 Make any desired adjustments to
components, warehouses or quantities
 Save the production order.
Release to Shop Floor

 Initially set as Planned


 Release the order to
begin work
 Components can then be
issued
Issue Components

Manual Components Backflush Components


 Control quantity  Commonly used
issued items
 Precise timing  Typical quantities
possible used
Report Completion

When you report completion, the system automatically:


 Receives finished item into inventory
 Issues backflushed components
 Calculates the cost of producing the item
Stock Changes for Standard Production Order

In Stock - Committed + Ordered = Available

Status: Planned

Components + -
Production
Standard

+ +
Order
Finished Product

Completion reported

Components - -
Finished Product + -

+ Indicates increase in quantity


- Indicates decrease in quantity
Post Production Cost Information

Production Order
Type Standard / Special / Disassembly Due Date 20.10.2004
Status Planned / Released / Closed / Cancelled Origin Manual / Automatic
Product No. P1001 User Marc Manager
Planned Qty 2 Sales Order …
Warehouse 01 Customer …

Components Summary

Costs
Quantities
Actual Component Cost 80
Actual Additional Cost
Planned Quantity 2
Actual Product Cost 80
Completed Quantity 2
Total Variance
Rejected Quantity
Variance per Product
Dates
Variance %
Due Date 20.10.2004
Actual Close Date
Journal Remark Production Order - P1001
Overdue
SERVICE

- Customer Equipment Card & Service Contract


- Handling the Service Call
- Solutions Knowledge Base
Service Process Overview

System Configuration

Master data

Warehouse management
Inbound Outbound Marketing &
Purchasing Service
logistics logistics Sales
Production

Financial controlling

Service Service Service


Call Response Resolution
Customer Equipment Card

A/R Invoice Customer


or Delivery automatically Customer manually
Equipment
for Item with Card
Serial Number
Serial Number
Customer
Item

Item
Service Contract

automatically
Customer
A/R Invoice Equipment
or Delivery Card
for Item with Serial Number
Serial Number
Customer
Item

Contract / Service
Warranty Contract
Template
Type Warranty
(Type manually
Type Regular
Item Serial
Master Number)
Record Customer
Contract Details - Service Level Agreement

Service Level Agreement Details

 General tab
 Response Time
 Resolution Time

 Coverage tab
 Available hours for service
 Type of services covered:
 parts
 labor
 travel
Service Calls

Customer
Equipment
Card
Service Call ? Service
Serial Number
Contract
Customer
Item
Service Call Contents

Service Call

General Remarks Activities Solutions Expenses Resolution History

Activities Documents
Knowledge
Base
Service Response

Service Call Service


Service Response Resolution

Response Time profiles


Notification Received
Monday-Friday
8 a.m. to 5 p.m.
8 hours
4 hours
2 hours

Monday-Friday
7 a.m. to 7 p.m.
8 hours
4 hours
2 hours
8 a.m. 1 p.m. 6 p.m. 8 a.m. 1 p.m. 6 p.m.

Monday Tuesday
Service Resolution

Service Call Service


Response
Service
Resolution
 Customer is satisfied with the solution to the issue.
 Enter text on the Resolution tab of the Service Call.
 Mark the service call as Closed.
Solutions Knowledge Base

Service Call

Solutions
Knowledge
Base
Service Reporting

Service Calls Reports Analysis of Service Calls by Employee


Information on open and closed service calls

Service Calls by View Response Times by Queue


Use this report when assigning service calls by
Queue queue

View Response Times by Employees


Response Time by Use this report when assigning service calls directly to
Assigned to Report employees

Average Closure Time Details on average time to call closure


Check the efficiency of the service department

Service Monitor Open or overdue service calls


Provides two dynamic views in graphical form

My Service Calls User-specific report


Easy for a service employee to quickly see all assigned
calls and determine priority for action.
Service Expenses

Transfers to Technician
Service Call Deliveries
Expenses Returns from Technician
Returns
A/R Invoices, A/R Credit Memos,
Deliveries, and Returns or Invoices
Credit Memos
All Documents

Display All Documents Service Call Expenses


Expenses Details Items

Summed up by item of item type


Items

Labor and Travel


Deliveries
Returns Summed up by item of item type
Invoices Labor or Travel
Credit Memos
Settings for Service

Configuration Settings for


Service
 Automatic Creation of
Customer Equipment Cards
 Unique Serial Numbers
 Contract Templates
 Service Call Queues
 Service Territories

Set up for Service in Master Data


 Automatic Contract Creation for
specific serialized items
 Linking Territories and Technicians
to Service Customers