Getting Started

SAP Business One gives you access to real-time information through a single system
containing financial, customer relationship management, manufacturing, and
management control capabilities. The application consists of modules that cover these
corresponding areas, and more.
SAP Business One is based on the Microsoft Windows standard.
The application includes a demonstration company whose data you use to familiarize
yourself with all the elements of SAP Business One. In the beginning, swap between
your own company information and the demo data to practice certain functions and to
experiment with the application. Nothing you do in the demo company influences
your real accounts.
Getting Started contains general information about the SAP Business One main
window, modes, windows, tables, icons, and so on. Use the online help navigation to
get details about the complete functionality.
Administration
To prepare SAP Business One for use at your company, you can use this module to do
as follows:

 Specify information about your company and user information in the system,
such as the following:
o Currency exchange rates
o Authorizations and alerts
o Approvals
o Internal mail organization, basic E-mail settings and other information
o Access information from non-SAP software using data import and
export functions
 Specify system setup and system parameters.
 Perform regular maintenance functions for your system such as backup and
restore.

Setup
The Setup section, an extensive part of the Administration module, is used for
defining settings and defaults for fields that are used throughout SAP Business One.
Although certain settings can be modified later, most of these definitions must be
entered during system initialization. For example, before you can use banking
functions, you must define basic banking data; and before you can assign
authorizations, you must define your users.
Financials
This module:

 Includes all functions and reports required for the accounting and financial
operations of the company
 Includes all tax-related reports according to the regulations in each country
 Enables you to document all financial and accounting-related transactions

Sales Opportunities
The Sales Opportunities module lets you track and analyze pending opportunities
according to the progress of activities such as meetings, negotiations, and other
proceedings in the sales pipeline.
Comprehensive forecasting methods enable you to project potential earnings and
prioritize sales activities.
Using the various tabs of the Sales Opportunity window you can process a sales
opportunity from creation and field configuration, through updating and reporting, to
closure.
Some features of this module include being able to do the following:

 Link a variety of documents

 Designate an owner for a sales opportunity
 Select a different owner for each stage of a sales opportunity
 Determine employee access to the contained information
 Generate table and graphical reports to provide different formats for analysis
o Analysis can be per stage, per user, or a high-level overview displayed in
the Statistics report.
o Reports can be filtered by such parameters as business partner, sales
employee, and time period.

Purchasing - A/P
SAP Business One enables you to manage the entire purchasing process from
purchase orders through processing A/P invoices. Furthermore, you can create various
reports to analyze purchasing information such as purchase volume analysis, pricing
information, vendor liabilities aging, and so on.
You can base one purchasing document on another and thus copy all relevant data into
the new document. For example, you can start with the purchase order and base the
goods receipt PO on that purchase order. You then proceed to the A/P invoice and
base it on the goods receipt PO.
Since you create a contractual relationship with the vendor, with the exception of the
purchase order, all purchasing documents are legally binding documents. The
purchase order is intended, first and foremost, purely as an informational source
in SAP Business One.
Note
If you have created a purchasing document with reference to an existing purchasing
document, you can use the Base Document option to call up these documents.
Position the cursor on the appropriate row and from the menu bar choose
Goto Base Document .
If you have created the follow-up documents with reference to the current purchasing
document, you can call up these documents with the Target Document function.
Position the cursor on the appropriate row and from the menu bar choose
Goto Target Document . If more than one target document exists, SAP
Business One displays the last target document.

Requesting Quotations
In purchasing, you try to find the best offer for goods or services that you require. To
do so, you send a purchase invitation to a number of vendors to indicate their terms
and conditions, such as price or delivery date for the supply of materials or provision
of service, by submitting a quotation.
In this purchase quotation, the material or service details, for example, quantity,
required date and vendor information, are specified. You compare the quotations
received and determine the vendor that you want to order from.
Working with quotations typically involves the steps outlined below.

1. Create purchase quotations.

2. Send quotations to vendors.
3. Record vendors’ answers in purchase quotations.
4. Compare quotations to determine the best offer and create a purchase order.
5. Close related purchase quotations.

Purchase Order
The purchase order is a document used to request items or services from a vendor at
an agreed upon price.
When you enter a purchase order in SAP Business One, no value-based changes are
posted in the accounting system. However, the order quantities are listed in inventory
management. You can view the ordered quantities in various reports and windows,
such as the Inventory Status report and the Item Master Data window. This
information is important for optimizing ordering transactions and stockholding.

Goods Receipt PO
You create this document when you receive goods from the vendor.
When you create a goods receipt PO, SAP Business One receives the goods into the
warehouse, updates the quantities, and creates an accounting journal entry if you
manage the perpetual inventory.

Goods Return
The goods return document is used to return delivered goods to vendors or to reverse
a purchasing transaction for an item completely or partially, for example, a goods
receipt PO in SAP Business One. Due to legal stipulations, you cannot delete or make
any accounting-relevant changes to these documents. However, to return unwanted or
faulty goods, or to correct errors made when entering the above-mentioned
documents, you can create a goods return.

When you create a goods return, the goods are issued from the warehouse and the
quantities are reduced. If your company uses perpetual inventory, SAP Business
One automatically creates the relevant posting to update the inventory values as well.
You can create a goods return either based on a goods receipt PO or not. If you choose
to do the latter, and run the perpetual inventory by moving average, make sure that the
prices of the items in the independent goods return are identical to the prices posted in
the respective original purchase transaction.
When you create a goods return document based on a purchase order, you can choose
to reopen the item quantity of the order. To be able to do so, the checkbox Enable
Reopening of Orders When Creating Returns Based on Orders must be selected in the
document settings. For more information, see Document Settings: Per Document Tab.
Reopening the item quantity has the following consequences:

 The status of the purchase order changes to Open.

 The open quantity is increased by the item quantity in the goods return
document. If the sum of the remaining open quantity plus the returned quantity
is higher than the quantity in the original order, the open quantity is increased
up to the quantity in the original order.
  The delivered quantity is decreased by the quantity in the goods return.
 For service type transactions, the open amount is increased accordingly by a
value equal to the value from a goods return line. If the sum of the remaining
open amount plus the returned amount is greater than the total amount for the
original order line, the total amount is used as the open amount.
 If there are any freight charges related to the returned item, these charges are
reopened in the same way as the item quantities.
 If the item is managed by batches, the returned batch-allocated quantity is
increased by the quantity from the return line.

A/P Invoice
The A/P invoice is a request for payment. It also records the cost in the profit and loss
statement.
To access the window, choose Purchasing – A/P A/P Invoice .
You can create an A/P invoice from multiple purchase orders and goods receipt POs.
You cannot change any accounting-relevant data on an A/P invoice since it is the legal
accounting document that generates entries in the general ledger.
When you receive an A/P invoice, SAP Business One posts the related accounts for
the vendor in the accounting system. If no delivery for a purchase order precedes the
A/P invoice, and if you are purchasing items managed in the warehouse, the inventory
increases when the you post the invoice.
SAP Business One enables you to create an A/P invoice with a zero amount when you
receive no-charge items, for example, items that are part of a promotion or under the
coverage of a service contract.
Relevant in some localizations only:
If your company does not manage a perpetual inventory system, the A/P invoice is
posted to the appropriate expense account: domestic, foreign, or EU.

Example - If the company is Danish and the federal tax ID of the business partner is
also Danish, the invoice is domestic, so the system posts the invoice to the domestic
expense account. If the federal tax ID does not start with DK (or is empty) and the
billing address country of the business partner is an EU country, the system posts the
invoice to the EU expense account. If the federal tax ID does not start with DK (or is
empty) and the billing address is not EU, the system posts the invoice to the Non-EU
expense account.
Note
In a perpetual inventory system, when you post an A/P invoice that is copied from a
goods receipt PO, the posting account depends on the current In Stock quantity of an
item:
  If the In Stock quantity > = A/P invoice quantity, then the Inventory Account is
debited.
 If the In Stock quantity < A/P invoice quantity, then the price difference is split
between Inventory Account and Price Difference Account.
 If the In Stock quantity = Zero, then the price difference is posted to the Price
Difference Account.

Price differences pertaining to sold items are considered as an additional expense to

appear in the Profit and Loss Statement report.

Goods Receipt
The Goods Receipt window lets you increase the inventory level in situation that is
not the direct result of adding a purchasing document.

When you purchase an item, the warehouse inventory increases automatically

when SAP Business One enters the transaction. For example, if you create a goods
receipt PO, the warehouse inventory increases accordingly by the specified quantity.
However, purchasing an item is not the only transaction that results in a goods receipt.

Example
For example, you may need to add a goods receipt if you discover during an inventory
count that part of the stored quantity has not been taken into consideration. You can
enter the overlooked quantity in SAP Business One by adding a goods receipt.

Goods Issue
The goods issue function lets you reduce the inventory level in a situation that is not
direct result of a sales document entry.
After an item is sold, the warehouse inventory is automatically reduced when SAP
Business One enters the transactions. For example, if you create a delivery document
that is based on a sales order, the warehouse inventory is reduced by the specified
quantity once the delivery document is added.
However, the sale of an item is not the only type of transaction that results in a goods
issue.

Example
For example, if five units of an item suffer water damage in a warehouse, they cannot
be sold and are removed. In such a case, you can post a separate goods issue using the
function described here.
Inventory Transfer
You use this function to transfer inventory from one warehouse to another. An
inventory transfer can also be carried out as a consignment for a customer. The items
are then stored in the customer’s warehouse and are sold from here.
You cannot change the table after it has been added. If you display an existing
inventory transfer later on, none of the fields in the table are active.
You can, therefore, only correct an inventory transfer table that has not been entered
correctly by entering a compensatory goods movement later.

Item Master Data

SAP Business One lets you to manage all items that you purchase, manufacture, sell,
or keep in inventory. Services can also be defined as items, although they are only
relevant for sales.
For each item, you enter the data relevant for a particular area in SAP Business One,
which uses this data for purchasing, sales, production, warehouse management,
accounting, and services.
You use the Item Master Data window to add, update, search, and maintain item data.
This window lists all the items in your company.
To access the window, choose Inventory Item Master Data .
You can choose Goto in the menu bar to access the following options in SAP
Business One:

 New Activity
 Alternative Items
 Business Partner Catalog Numbers
 Bill of Materials
 Related Activities
 Inventory Posting List
Note
In the inventory posting list generated from an item master data record, you can
define the posting date range for the transactions to be displayed.
 Items List
 Serial Numbers Transactions Report
 Batch Numbers Transactions Report
 Inventory Status
 Note
The Inventory Status report is generated directly from the Item Master
Data window for inventory items only. The selection criteria for the report is
automatic; you cannot change it.

 Available-to-Promise

Inventory Reports
The inventory reports enable you to display information about items and their
inventories, as well as the valuation of the inventories. You can:

 Generate a list of all the items defined in the system (active and inactive), as
well as information about the items such as last prices and serial/batch
information
 Create a list of inventory postings
 Analyze the inventory situation for items or display the inventories of items in
each warehouse
 Start a valuation for warehouse inventory

Banking
Use this component to perform all monetary transactions that involve bank accounts,
including the following:

 Manual and automatic creation of incoming and outgoing payments for various
payment means
 Manual and automatic performance of internal and external reconciliations
 Postdated and cash deposits of checks and credit card vouchers
 Batch and single check printing

Incoming Payments
Use this window to create a record each time your company receives a payment from
a customer, vendor, or account.
An incoming payment document can be created for the following payment means:

 Cash
 Check
 Credit card
  Bank transfer

When you add an incoming payment, an appropriate journal entry is created.

You can create an incoming payment to clear the debt of an open A/R invoice or an
opening balance. You can also create an incoming payment for a down payment
received before the goods or services were provided.
When you create an incoming payment to clear (fully or partially) a document or
transaction, internal reconciliation takes place automatically.

Outgoing Payments
Use this window to create a record each time your company issues a payment to a
customer, vendor or account.

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

 cash
 check
 credit card
 bank transfer

Once the outgoing payment is added, an appropriate journal entry is created.

When creating an outgoing payment to clear (fully or partially) a specific document or
transaction, an internal reconciliation automatically takes place.

Business Partners
The Business Partners module manages all the information relevant for your
relationships with customers, vendors, and leads (interested parties), as well as
performing and reviewing internal reconciliations for business partners.
Example - Typical information includes contact persons, addresses, payment terms,
and financial and logistic information.
Business Partners and Accounts
SAP Business One differentiates between business partners and G/L accounts:

 Business partners are all your company customers, vendors, and leads.
 G/L accounts are all the entities defined in your company's Chart of Accounts,
such as expenses, revenues, assets, and liabilities.

SAP Business One connects between business partners and G/L accounts through
control accounts that are defined during system initialization, and which may vary for
different business partners.
All sales and purchasing transactions are posted to the appropriate control accounts,
allowing you to access the overall balance, the balance for customers, and the balance
for vendors in one G/L account. In addition, you can access the balance of a specific
customer or vendor.

Business Partner Master Data

Use the business partner master data to record and retrieve business partner
(customers, vendors, and leads) information and schedule business partner activities.
Business partner information typically includes:

 Company details, including addresses and telephone numbers

 Business partner contact persons, including telephone numbers and E-mail
addresses
 Logistic details
 Tax information
 Accounting information
 Details of payment terms
Reports These reports provide an overview of your interactions with business
partners.

Resources
The Resources module serves as an extension to the Production module; together they
provide a base platform for managing light manufacturing processes in SAP Business
One.
Using the resources functionality you can perform the following key business
functions:

 Manage production capacity

 Monitor complete standard production costing
 Analyze real production variances
 Simplify BOM management
 Use production orders more flexibly

A resource is a commodity, machine, labor, and so on, used to produce goods and
services. As opposed to items, resources have capacity available throughout a period
of time that can be consumed in a production process. You can define daily resource
capacity for each day separately or for a period of time, and then you can assign the
capacity to production orders. Consumption of resources in a production process
contributes to overall production costs and can be split into underlying cost elements
for further accounting purposes.

Production
Use the SAP Business One Production module to create and maintain the following:

 Bill of Materials (BOMs) - specifies the quantities of components that make up

a product.
 Production Orders - a set of instructions for planning and assembling a
production item. It tracks all the material transactions and costs involved in the
production process, as well as additional costs, such as labor overhead.

SAP Business One supports the following types of production orders:

o Standard - used for regular production. Components are copied from the
item BOM.
o Special - used to produce items or perform activities on the shop floor
that are not based on the Standard BOM.
o Disassembly - used to report the disassembly of an item with a
production BOM. Components are copied from the item BOM.

A finished product may be the result of an entire production process, or a collection of

items that are sold as a unit, but are not the output of a production or assembly
process.

MRP
The Material Requirements Planning (MRP) module enables you to plan material
requirements for a manufacturing or procurement process based on the re-evaluation
of existing inventories, demands, and supplies on changing planning parameters (such
as lead time determination, make or buy decisions, and holiday planning).
MRP calculates gross requirements for the highest bill of materials (BoM) level,
based on existing inventory, sales orders, purchase orders, production orders,
forecasts, and so on. It calculates gross requirements at the lowest BOM levels by
carrying down net parent demands through the BOM structure. Dependent levels
might have their own requirements, based on sales orders and forecasts.
The results of the MRP run are report and recommendations that fulfill gross
requirements by taking into consideration the existing inventory levels and existing
purchase orders and production orders. The MRP run also takes into account
predefined planning rules such as Order Multiple, Order Interval, Minimum Order
Quantity, Inventory Level, and so on.

Running MRP - General Process,

Prerequisites, and Procedure
 You have defined the following settings on the Item Master Data: Planning
Data tab. For more information, see Item Master Data: Planning Data Tab.
o Planning Method
Only items with the Planning Method of MRP are available for selection
when you are running the MRP wizard.
o Procurement Method
The procurement method affects the order type MRP recommends for
items with demands.
o Order Interval
In MRP calculations, the application automatically groups the
recommended orders into interval periods according to your definition,
and arranges orders within the same period into the first working day of
that period. For more information, see Example: Lead Time, Holidays,
and Order Interval in MRP.
o Order Multiple
Your definition of order multiple may affect the order quantities MRP
recommends.
o Minimum Order Qty
Your definition of minimum order quantity may affect the order
quantities MRP recommends.
o Lead time - The lead time definition affects the order recommendation
calculation.
 Note

 You can either run MRP with the planning parameters you defined for each
item in the Item Master Data window, or you can define a set of parameters
when running the MRP wizard and apply them to all the selected items in the
MRP run. For more information, see Update Selected Items in MRP Wizard,
Step 3: Item Selection.
 If necessary, define forecasts and consume forecast settings. For more
information, see Managing Forecasts.
The Material Requirements Planning (MRP) function lets you plan material
requirements for complex manufacturing and procurement processes. To create
and run MRP scenarios, you use the MRP wizard. The wizard generates
 recommendations (production orders, purchase orders, and inventory transfer
requests) required to produce or procure the final product on time and in the
required quantity. In the Order Recommendation report, you create production
and purchase orders based on these recommendations.

The MRP Process in SAP Business One

Procedure

1. To start MRP wizard, choose MRP MRP Wizard .

2. Create a new MRP scenario or select an existing one.
3. Define the parameters for your scenario, such as the planning horizon and item
details, and choose your display preferences.
To run a simulation scenario without saving the recommendations, select
the Simulation checkbox
 4. Define the data sources for requirements that you want to include in your MRP
scenario.
For example, you define whether you want to consider the existing inventory or
the minimum inventory level. You can also include a forecast to be consumed
by sales orders.
5. Save the scenario or run it.

After you run the scenario, the system displays the MRP results report and the
order recommendations MRP generates.

6. Review the MRP results report. You can view the final inventory quantity
either before or after the MRP run to observe the MRP impact on your
inventory.
7. Save the order recommendations and exit the MRP wizard.

Results

After completing the MRP wizard, you still need to create the purchase and
production orders, and maybe the inventory transfer request, in accordance with the
MRP recommendations. For more information, see Generating Orders from Saved
Recommendations.

Generating Documents from Saved

Recommendations
Prerequisites

You have executed an MRP run and saved the order recommendations for this
scenario.

Procedure

1. To view saved order recommendations, choose MRP Order

Recommendation .

The Order Recommendation – Selection Criteria window appears.

2. Filter the order recommendations you want to process and choose OK.

For more information, see Order Recommendation - Selection Criteria.

3. The Order Recommendation window appears, displaying the filtered
recommendations of the selected MRP scenario.

For more information about the fields in this window, see Order
Recommendation.

4. You can view a list of reports for the recommended item if necessary. To do so,
select a recommendation, right-click in the Item Code column, and choose a
report.

o Qty in All Warehouses

Use this report to view the Available, In Stock, Committed,
and Ordered quantities of the selected item. To change the warehouse for
receiving the quantities to be procured, select the alternative warehouse
and choose the Choose button. To cancel your operation and go back to
the Order Recommendation window, choose Cancel.
o Alternative Items
Use this report to view the alternative items for the selected item. To
replace the recommended item, select an alternative item and choose
the Choose button. To cancel your operation and go back to the Order
Recommendation window, choose Cancel.
o Preferred Vendors List
Use this report to view and compare preferred vendors. To replace the
recommended vendor, select an alternative vendor and choose
the OK button. To cancel your operation and go back to the Order
Recommendation window, choose Cancel.
o List of Bills of Materials
o Last Prices
If you have specified a vendor code for the selected recommendation, the
report displays the latest prices for the selected vendor. Otherwise, the
report displays the latest prices for all vendors. You can use the selection
criteria to filter last prices information, if necessary. For more
information, see Last Prices Report.
o Special Prices
To view the special prices report, make sure you have specified a vendor
for the selected recommendation. If you do not specify a vendor, the
following error message appears: No special prices found;
specify vendor code.
o Discount Groups
To view the discount groups report, make sure you have specified a
vendor for the selected recommendation. If you do not specify a vendor,
 the following error message appears: No discount group
found; specify vendor code.

5. Make necessary changes to the recommendation.

Different recommendation types have different ranges of editable fields. Cells
in white indicate that you can change the value for this grid.
6. To create documents from the recommendations, select the Create checkbox for
recommendation lines from which you want to generate documents.
7. To consolidate the documents to be generated, from the toolbar, choose .
In the Form Settings window, select the General tab.
To group recommendations that share common attributes into one document,
select the Consolidate Recommendations checkbox. The application groups
recommendations according to the following rules:

o For purchase orders and purchase quotations, group recommendations

with the same vendor into one purchase order or purchase quotation.
The consolidated document may contain multiple lines due to different
warehouses, items, due dates, and delivery dates.
o For production orders, group recommendations with the same due date
into one production order.
You can manually change the Due Date for recommendations. After you
make the changes, the application takes the changed due date into
calculation.
o For inventory transfer requests, group the recommendations with the
same From Warehouse and Due Date.