Sap Business One Lessons

T U E S D A Y, O C T O B E R 2 , 2 0 0 7

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Creating a New CompanySetting the Company Address

Defining Posting PeriodsDefining Open Balances

Defining the Company CalendarDefining Account Segmentation

Defining Purchase AccountingDefining Continuous Stock

Defining CurrenciesDefining Indexes

Defining Document NumberingDefining Document Settings

Defining the Chart of Accounts TemplateDefining G/L Accounts

Defining Print PreferencesDefining Transactions Codes

Define Tax CategoriesDefining Payment Terms

Defining Sales EmployeesDefining Commission Groups

Defining the Calculation of CommissionsDefining Inventory and Item SettingsDefining Business Partner Settings

Defining Cost AccountingDefining Budget Setup

Defining Service SettingsDefining Users

Defining AuthorizationsDefining Approval Procedures

Defining Alert ServicesDefining Address Formats

Defining CountriesDefining Territories

Defining ProjectsDefining Display Settings

Creating New CompaniesUse

The following procedure explains how to create new company in SAPBusiness One using the Choose Company window.

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*New companies can be also created using the Year Transfer function.

Procedure1. Choose Administration ® Choose Company.

2. Choose New.The Create New Company window appears.

3. Set all parameters in this window according to your needs4. Choose OK.

ResultSAP Business One creates a new database on the connected server and

adds the company to the list of existing companies in the ChooseCompany window. This operation may take some time.

Once the new company is created, SAP Business One logs you onautomatically to it.

*If the new company is not displayed in the Choose Company window,choose Refresh. This triggers database scanning in the server and

updates the display of the Choose Company window.

Company Details: General Tab

DefinitionThis tab contains two sub-tabs with identical fields. On the Local

Language tab, enter the details of the company that should be printedon documents in local language layout, and on the Foreign Language

tab, enter the details to be printed when a print layout in a foreignlanguage is selected.

To access this window, from the Main Menu choose Administration ®System Initialization ® Company Details ® General tab.

Company Details: General TabField Description/Activity

Company Name Enter the name of your company. You can use anabbreviation of the company name if necessary, since this field is only

used internally. The name you specify here appears at the top of theSAP Business One menu. However, the name specified in the Printing

Header field is printed.Address Displays the formatted address as entered in the Address

fields.Address fields Enter the company's address information as it should be

displayed on all documents printed with SAP Business One.Internet Address Enter the company's website.

Printing Header Enter the company’s name, as it should be displayed onall documents printed with SAP Business One.Active Manager This employee is displayed in the Active Manager field in

printed documents.Phone 1, Phone 2, Fax, E-Mail Enter the active manager’s phone and fax

numbers and e-mail address.


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Setting Opening Balances for G/L AccountsUse:During system initialization, the opening balances for the G/L

Accounts must be updated with legacy data.To use SAP Business One from the start of the fiscal year, enter the

balances from the previous year’s closing balance sheet. Enter theopening balances for the balance sheet accounts (assets, liabilities, and

equity). The expense and revenue accounts are cleared with the balancesheet when they are created.

If the fiscal year does not start on January 1st, change the date in theG/L Accounts Opening Balance window. If the company's fiscal year

starts in the middle of the year, for example, July 1st, to view theopening balances from January 1st and from the first quarter, April 1st,

enter several balances for different dates on the same accounts. Enterthe opening balances of the fiscal year for January 1st, and then only

open the delta for April 1st and July 1st.To begin using the system during the fiscal year, enter the values from

an existing trial balance sheet or interim balance sheet in the system.Create this trial/interim balance sheet on the day before the first use of

SAP Business One. In this case, specify the balances of the expense andrevenue accounts.Procedure

1. In the SAP Business One main menu, choose Administration - SystemInitialization - Opening Balances - G/L Opening Balances.

The G/L Opening Balances –Selection Criteria window appears.2. Set the required G/L account range, and then, choose OK.

The G/L Opening Balance window appears.3. If the fiscal year does not start on January 1st, change the Date to

the required date. Enter offsetting G/L account in the window’s header,and fill in the relevant details.

4. Enter opening balances in the local currency in column OB (LC) only ifdata is to be entered in the local currency.

If the system currency is different from the local currency, the systemautomatically calculates the opening balances in the system currency

and displays the values in column OB (SC).5. Enter the opening balance in the foreign currency. If a foreign

currency has been defined for an account, the OB (FC) field is alsoactive. The system then automatically calculates the amounts in the

local and system currencies, using the valid exchange rate on the valuedate. Overwrite the calculated values if necessary.

6. Enter the value without a plus sign if the balance is in credit. If thebalance is in debit, insert a minus sign in front of the value.

7. Choose Add when all the opening balances have been updated.An opening balance for a multi currency account can be entered only in

local currencyResultSAP Business One creates the opening balance transactions for the

accounts updated in the G/L Accounts Opening Balances window. Theoriginal type assigned to these transactions is OB.

Defining Calendar Settings

DefinitionYou can customize different aspects of your calendar such as setting the

display of the calendar, selecting working days and view of other users'calendar.


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Procedure

1. Choose to open the calendar.2. To open the Calendar Settings window choose the Form Settings icon.

. In the Calendar Settings – General Tab, define color schemes and

general display settings. In the Calendar Settings – Work Week Tab, define working days and

working hours. In the Calendar Settings – Users Tab, define display settings for other

users.3. Choose Update to save your settings and OK to close the window.

Defining Account Segmentation

UseThe account system in SAP Business One lets you build accounts based

on segments. This option is used mainly in the USA.You define account segmentation when you create a new company. Once

accounts have been created, you will not be able to change back.Procedure

1. Go to Administration ® System Initialization → Company Details.2. Choose Basic Initialization tab ® Use Segmentation Accounts.

3. Choose Update to save the settings and OK to close the window.4. Choose System Initialization ® General Settings.

5. Choose the Display tab and type in a separator character in AccountSegment Separator.

For example, a minus (–). Do not enter asterisk (*) or numbers.6. Choose Update to save and OK to close the General Settings window.

7. From Administration, choose Definitions → Define AccountSegmentation.

By default, there are four segments in the system. You can add up to 10segments and change Name, Size, and Type for each segment.

8. Double-click a line to classify the segment.A similar window appears, letting you categorize each segment

according to your company classification.9. For each classification, you define Code, Name, and a Short Name.Note that the Code field is limited by the value you specified in Size for

this segment.For example, classify the Department segment according to the number

of departments in your company; each department will receive atwo-digit code.


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Purchasing

UseThe following can be defined from Administration ® Setup ® Puchasing

Defining Landed Costs

Perpetual Inventory

PurposeA perpetual inventory system reflects the value of stock postings in

means of monetary transactions in the accounting system. Thesemonetary transactions are carried out only when items defined as WH

(warehousing) items are received or released from stock.

A perpetual inventory system should be determined during basicinitialization before any transactions had been posted.

There are three possible costing methods used for calculating theinventory value:

• ● Moving AverageThis option calculates the inventory value by the item's cost price. The

item's Cost Price field is found on the Inventory Data tab (from the MainMenu, choose Inventory ® Item Master Data ® Inventory Data tab). This

field is updated dynamically by every stock receipt posting.• ● Standard

This option calculates the inventory value by a fixed price. The CostPrice field is also located on the Inventory Data tab (see above). Theitem's standard price should be set before you start working in your

company.• ● FIFO

This option calculates the inventory value by the FIFO method (first infirst out). Each inventory receipt transaction creates a "layer" of

quantities linked to costs; each inventory release transaction will usequantities and their corresponding costs from the first open layer/s.

Prerequisites• ● From the SAP Business One Main Menu, choose Administration ®


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System Initialization ® Company Details ® Basic Initialization tab. To

initialize a perpetual inventory system, and determine the defaultvaluation method, select the Inventory Valuation By checkbox.

You cannot select the Inventory Valuation By checkbox after stock

postings have been recorded. Moreover, you cannot clear this checkboxafter a document creating an automatic stock posting has been added,

such as a delivery, goods receipt, and so on.• ● From the Main Menu, choose Administration ® Definitions ®

Financials ® G/L Account Determination ® Inventory tab. Define primaryG/L accounts to be selected as default in new warehouses, item groups

and items master data.• ● From the Main Menu, choose Administration ® Definitions ®

Financials ® G/L Account Determination ® Purchase tab.• ● Create an Opening Stock Account. From the Main Menu, choose

Financials ® Chart of Accounts and create an Opening Stock G/Laccount.

This G/L account will be used as an offsetting account to the warehouseStock account to which you enter beginning quantities. As you enter

beginning quantities (from the Main Menu, choose Inventory ® InventoryTransactions ® Beginning Quantities; Inventory Tracking and Stock

Posting ® Enter Initial Quantity Tab), after you click OK, you need tospecify the Opening Stock account code at the upper part of thewindow.

• ● Setting G/L Accounts in the Item Master Data. (From the MainMenu, choose Inventory ®Item Master Data ® Inventory Data tab.)

• ● Define the default G/L Method in the Item Master Data. (from theMain Menu, choose Administration ® System Initialization ® General

Settings ® Inventory tab.)Process Flow

Choose the link to the relevant working method:• ● Perpetual inventory System by Moving Average

• ● Perpetual inventory System by Standard Price• ● Perpetual inventory System by FIFO


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Currencies - Setup WindowDefinition

The following table describes the columns that appear in the Currencies– Definitions window.

To access this window from the SAP Business One Main Menu, chooseAdministration ® Setup ® Financials ® Currencies.

Currencies – Setup WindowField Description/Activity

Code Enter a code for the currency. The code length cannot exceedthree characters. For example: USD, EUR.

If you use the Payment Engine add-on, we strongly recommend that youdefine an internationally-agreed-abbreviation as the currency code. This

way you ensure that the bank will accept the bank file created by thePayment Engine.

Currency Enter the name of the currency. This name appears in thedrop-down list for a currency in various windows.

International Code Enter an international code to represent thatcurrency in printed checks, for example: $, €.International Description, Hundredths Name Columns Enter the

international name of the currency and the name of the currency’sdecimal unit. This information is required for printing checks in this

currency, so that the numerical amount can be represented in words.Rounding This column appears only if the selected rounding method is

By Currency. Select one of the following options:• No Rounding – Select to avoid any rounding for amounts in this

currency.• Round to Five Hundredths – Sample results for this option are as

follows: 4.22 becomes 4.20 and 4.24 becomes 4.25.• Round to Ten Hundredths – Sample results for this option are as

follows: 4.19 becomes 4.20 and 4.14 becomes 4.10• Round to One – rounds to the nearest integer. For example, 4.23

becomes 4.• Round to Ten – A sample result for this option is as follows: 5.8

becomes 10.Decimals Select the required decimal rounding for each currency. The

selected option affects the following fields in the documents:• ● Price

• ● Line total• ● Document total

If you select Default, the decimal display is determined by theparameters entered in Administration ® General Settings ® Display tab.

Rounding in Pmnt Select to round values in payment documents.

Country-Specific Fields

SwitzerlandField Description/Activity

ISR Calculation Select to determine that the currency is subject to ISRcalculation.


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Indexes – Setup Window

DefinitionThe following table describes the fields that appear in the Indexes –

Setup window. To open this window, choose: Administration ® Setup ®Financials ® Indexes.

Indexes – Setup WindowField Description/Activity

Code, Name Enter a code and a name for each index. The index code isunique and can be combined of up to 3 characters


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Document NumberingUse

Use this window to define the numbering of documents throughout theapplication, especially for theSales, Purchasing, Banking, Inventory, and

Production modules.Depending on the country's legal requirements and the company’s

policy, distinct document numbering can be defined for eachdepartment or organizational unit. When defining the number ranges,consider not only one year ahead, but leave enough space for several

years if the numbering is for more than one year.When creating a different series, assign it to different users in the

Authorizations setup. This way you can define different series for eachdepartment or branch within the company and assign a number range to

each branch.You can also set additional number ranges for a document type. See

Defining Additional Number Ranges for a Document Type.The names of internal documents can be customized, but the original

names can be restored if required.To access the Document Numbering window, choose Administration ®

System Initialization ® Document Numbering.

Document Numbering FieldsField Description/Activity

Document Displays the document types for which you define thenumbering.

Series Enter the series specified for the numbering of a document type.The default series is displayed.

First No. Enter the first number to use for a document type. SAPBusiness One assigns this number to the first document that you enter

and then numbers the documents in sequence.Next No. Enter the number that SAP Business One will assign to the

next document of the corresponding type. This value is updated eachtime a new document is created. If the value in this column is not equalto the value in the First No. column and documents of this type have

already been entered, the numbering of the corresponding documenttype can no longer be changed.

Last No. Enter the last number that can be assigned for a document ofthis type. Enter a value if you want to define an additional series for

numbering.Name Change Click on this field to open the Change Internal Document

Name window and modify the document names.Original Names Click on this field to revert cust


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Document Settings: General Tab

DefinitionUse this window to define default settings for document types in SAP

Business One. On the General tab, you define settings for sales andpurchasing documents.

To access the tab from the SAP Business One Main Menu, chooseAdministration ® System Initialization ® Document Settings ® General.

StructureGeneral Tab Fields

Field Description/ActivityCalculate Gross Profit, Base Price Origin Select to enable gross profit

calculation in sales documents.Whenever you open a sales document, the gross profit option will be

available from the Goto menu, the toolbar, and the context menu. Onceyou select it, the Base Price Origin field appears. To display the

available options, click .The options are:

• ● Price Lists 1 to 10 – SAP Business One calculates gross profit basedon the item’s price on the selected price list.• ● Last Purchase Price – SAP Business One calculates gross profit based

on the item’s price in the last purchase.For this option, make sure to import or fill out the last purchase prices

from the previous company. Otherwise, the calculation is incorrect.• ● Last Evaluated Price – SAP Business One calculates the gross profit

based on the value found in the last run of the Inventory Valuationreport.

• ● Item Cost – SAP Business One calculates the gross profit based onthe item cost in the relevant warehouse.

SAP Business One will recalculate the Item Cost for gross profit

calculations only until an inventory transaction for the item has beenposted to the system. For example, when the goods are delivered using

a Delivery document.Calculate % Gross Profit as: Define if the gross profit percentage should

be calculated as the base price or the sales price.Document remarks include: Select whether the remarks on the

marketing documents include the base document number, or thecustomer or vendor reference number.

When you enter a sales document with a reference to a base document,the number of the base document appears. The displayed number can

either be an internal number assigned to the document by SAP BusinessOne, or the customer/vendor reference number from the base

document.When you choose to display the customer/vendor reference number andno such number is entered in the base document, the relevant field

remains blank in the document that is created with reference to thebase document.

For a Sales BOM in documents, display: Select the Price and total forparent items only if you only want to display the total price for the sold

product. Select the Price for components if you want to display theprices of the components. In this case, the total price is calculated as

the total of the component prices.If a sales bill of material is defined for a product, this BOM appears in


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the sales document. The sales document displays both the sold product

and the components that contribute to this product. When you selectthis radio button, you determine whether the sales price of the item

should be displayed at the level of the sold product or at the level ofthe components in the sales document.

Response to release of inventory below the minimum level: Define aminimum inventory level in the master record for an item that you

manage in your warehouse. Use these options to define the systemresponse when the inventory level falls below this minimum quantity as

the result of a sales document. This check is performed for salesdocuments that contain a goods issue, such as deliveries or invoices.

You define whether or not a warning message appears when the salesdocument is entered. If a warning appears in the sales document, it can

be ignored. You can also specify that the sales document cannot beentered; select the Block Release check box.

Manage inventory by whse Defines whether the check is performed forthe warehouse selected in the document row. If you select the

checkbox, the system checks the minimum inventory level in thewarehouse that was selected for the item when the sales document was

entered.If the transaction causes the inventory level in that warehouse to fall

below the minimum inventory level, a warning message appears even ifthe total available inventory of the item is greater than the minimumwarehouse quantity. If you do not select this checkbox, the system

checks the total available inventory in all warehouses where this item isstored.

You can also define automatic notification for a specific user when theinventory level falls below the minimum level. A purchase transaction

can then be initiated.Block negative inventory Select to block documents that would cause

the level of inventory to fall below zero. If you deselect the checkbox,the message “Negative inventory usage is not in accordance with

accounting rules. Are you sure you want to enable negative inventoryusage?”

If you select Manage inventory by whse and Block negative inventory,

SAP Business One calculates the block per warehouse. However, if theitem is not handled by a warehouse and you do not select Manage

inventory by Whse, the block is calculated for all the warehouses.Rounding Method Select whether the amounts and prices that appear in

marketing documents should be rounded by currency or by document.Exchange rate base date (A/P documents) Chooses the date on which

the system calculates the exchange rate:• ● Posting Date

• ● Document DateRound tax amount in rows Select to set the rounding of tax amounts per

document row. If this option is deselected, document rows display thenot rounded tax amount, and the system will round tax amounts pertax groups.

Display rounding remark Select to determine whether a remark will bedisplayed in the Remarks field of the sales document when an amount

has been rounded. If you select the checkbox, a remark in a foreign-currency invoice for a customer is displayed stating that the discount

amount is different from the discount percentage due to rounding.Use warehouse address Select if you want the Ship To address of the

purchase document (Logistics tab) to be the warehouse address. If thischeckbox is deselected, the Ship To address will be the address of the


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company as defined in Administration ® System Initialization ®

Company Details ® General tab.Manage freight in documents Select to add a Freight field in all sales

and purchasing documents. This field allows you to calculate additionalcosts connected to a document, such as, delivery charges and deposit

tax.Block documents with earlier posting date Select to block the posting

process of the documents that creates automatic accounting journalentries (invoice, credit memo, deposit, and payment documents).

Allow future posting date Select to be able to create documents withfuture posting dates. Companies can create documents with future

posting dates at the company level and then decide whether to applythis option to all the documents or only to those selected.

Calculate the row total using the unit price Select to calculate the rowtotal in marketing documents as follows:

Unit Price x Discount x Quantity. The Unit Price is the price beforediscount.

If you leave the checkbox deselected, the row total is calculated asfollows:

Price after Discount x Quantity.If you select the checkbox, the Price after Discount in marketing

documents is disabled.For more information, see Sales Document: Contents Tab or PurchasingDocument: Contents Tab.

Company Details: Basic Initialization Tab

DefinitionThe following table describes the fields that appear on the Basic

Initialization tab of the Company Details window.To access this window, choose Administration ® System Initialization ®

Company Details ® Basic Initialization tab.Company Details: Basic Initialization TabField Description/Activity

Chart of Accounts Template Select the chart of accounts that is thevalid legal form for your company, or define your own by selecting User

Defined. Alternatively, import the chart of accounts data from yourlegacy system.

We recommend using one of the existing standard chart of accounts andadapting it to the company’s needs as required. Defining the entire

chart of accounts is a long, complex procedure.Local Currency Select the local currency. The currencies defined in SAP


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Business One are available in the list. To define a new currency, select

Define New.System Currency SAP Business One can manage all transactions in a

system currency parallel to the local currency. Select the requiredsystem currency from the list. To define a new currency, select Define

New.If defining a system currency that is not identical to the local (national)

currency, the system currency can be used as the reporting currency. Forexample, the corporate group requires a different reporting currency

from the national currency. Also define a daily exchange rate for thesystem currency. Every document, and all reports and balance sheets

are posted in accounting in both currencies.If you do not have a reporting requirement in another currency, set the

system currency to your local currency.Default Account Currency Determines the default account currency for

new accounts:• • Local Currency: Transactions can be only in the defined local

currency.• • Multi-Currency: Transactions can be in local and system currencies.

However, totals may not be displayed in all situations when differentcurrencies have been used.

Display Credit Balance with Negative Sign Select to display creditbalances with a negative sign. According to the default settings, debitbalances are displayed with a negative sign. This option cannot be

changed after postings have been created in SAP Business One.This setting influences the entry of beginning balances for the G/L

accounts and business partners. Depending on this setting, the openingbalances must be entered as positive or negative numbers. We

recommend accepting the default setting, as this reflects the localrequirements.

Use Segmentation Accounts Select to specify if segments of informationshould be added to the standard account codes, such as division,

region, cost center, and so on,. for detailed transaction tracking andreporting.

Use Negative Amount for Reverse Transaction Selecting this optionresults in journal entries where the reversal is booked with negative

amounts. If you do not select this option, the journal entry of thereversal is booked using a debit/credit switch. This setting can be

changed at any time.Select If One Series Can Contain More Than One Document Type Certain

country regulations permit document numbering series that containmore than one document type. All of these documents are part of the

same numbering series. Select this option if these regulations arerelevant for the company. This setting determines the settings that are

displayed in certain Document Numbering windows. This option cannotbe changed after it has been selected.

Multi-Language Support Select to enable the Multi-Language Supportfunction in the company.Use this function to translate field names in SAP Business One to foreign

languages and print them in documents you send to foreign businesspartners.

Default Valuation Method Select one of the following:• Moving Average: choose this option to calculate the inventory value by

the item's cost price. The item's Cost Price field is found in Inventory ®Item Master Data ® Inventory Data tab. This field is updated

dynamically by every stock receipt posting.• Standard Price: choose this option to calculate the inventory value by


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a fixed price. The Cost Price field is found in Inventory ® Item Master

Data ® Inventory Data tab page. The item's standard price should beset before you start working in your company.

• FIFO: choose this option to calculate the inventory value by the FIFOmethod (first in first out). Each inventory receipt transaction creates a

"layer" of quantities linked to costs; each inventory release transactionwill use quantities and their corresponding costs from the first open

layer/s.Manage Item Cost Per Warehouse Determines that inventory pricing is

calculated for each warehouse.Use Purchase Accounts Posting System In localizations where purchase

accounting is used, selecting this option enables purchase accounting.Once journal entries have been made, this setting cannot be modified.

Allow Stock Release Without Item Price Permits items to be included indocuments such as deliveries or A/R invoices, even when a cost price

has not been determined.Select when the inventory valuation is performed according to moving

average or FIFO. If you selected Standard Price, a price has alreadybeen defined.

Ordering Party This field is required for the interface with the PaymentEngine add-on.

House Bank Enter the company's default bank account and branchinformation.

Country-Specific FieldsChile, France, Italy, Spain and Portugal

Field Description/ActivityUse Bill of Exchange Select to indicate that the company uses bills of

exchange (BoE). If not selected, all references to BoE in SAP BusinessOne are hidden. When a BoE transaction is added, Use Bill of Exchange

cannot be disabled. This option is relevant for Italy, Portugal, Spain andFrance and activated by default.

Israel

Field Description/ActivityHierarchical Deduction at Source Select to indicate that the company

uses hierarchical deduction at source method for tax deduction. Oncethis option is selected, the Define Deduction Groups button appears.

Choose this button to open the Define Deduction Groups – Setupwindow, in which you can define the relevant deduction groups for your

company.

G/L Account Determination

UseThis window enables you to define default G/L accounts to be used

when all types of transactions are created in SAP Business One.This window is divided into four tabs. Each tab contains the definitions

for G/L accounts related to a specific area of the business activity:Sales, Purchase, General and Inventory.

To access this window, choose: Administration ® Definitions ® Financials® G/L Account Determination.


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Print Preferences: General TabDefinition

Field Activity / DescriptionMax. Rows per Page Enter the maximum number of table rows per

page. If more than the specified number of table rows has to be printedfor a document, the excess rows are automatically printed on additional

pages. The maximum number of table rows per page is usually between10 and 40, depending on the margins defined for the printer, the page

format and the vertical compression.Print with Vertical Compression Specify the vertical compression

percentage to be applied to the document. When you specify the value100, the characters are printed in their original size. When you specify

the value 70, the printed characters will be compressed by 70%. You canalso specify values greater than 100. When you specify a vertical

compression less than 100, you can print more rows on each page.Top Margin (cm), Bottom Margin (cm) Define the appropriate print

margins in centimeters if, for example, you want to print the documenton company letterhead.

Max. Rows per Page During Export Specify the maximum number oftable rows per page when exporting the document to Microsoft Word. If

more than the specified number of table rows has to be exported,additional pages are created automatically. The maximum number of

table rows per page is dependent on the margins defined for the pagesand the page format of the Microsoft Word template.

Print on Letter Paper Select this check box if you want to print thedocuments on company letterhead to deactivate your company details

in the printout. Documents will be printed without your companydetails.Print SAP Business One Generation Message If you do not want the

printed documents to contain the information that the document wascreated using SAP Business One, select this check box.


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Transaction Codes - Setup Window

DefinitionThe following table describes the fields that appear in the Transaction

Codes – Definitions window.To access this window, choose Administration ® Definitions ® Financials

® Transaction Codes.Transaction Codes – Setup Window

Field Description/ActivityCode, Description Enter a code and a description for the transaction

code. The code can be a combination of up to four characters.

Defining Payment TermsUse

Use this function to define the payment terms that apply totransactions with customers and vendors. Enter the payment terms

defined here in the master records of customers and vendors. Thepayment term specified here is proposed automatically when you create

a master record. You can then change this data for each customer orvendor.

The payment terms represent the typical agreements you have withyour customers and vendors. Therefore, you do not have to define this

information from scratch for each customer and vendor.When a purchasing or sales document is entered for a vendor or

customer, SAP Business One automatically copies the information on thepayment period, price list, and total discount in the document. This

information is used, to calculate the prices for the items, the due dateof an invoice, or the total discount allowed etc.

You can also change the payment term data manually in the transactionitself if a special agreement was made for that transaction. In addition,the information on the credit limit is copied from the payment term to

the customer master record and then to the sales document, and can beused for a credit check.


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Sales Employees – Setup WindowDefinition

Defining a sales employee is mandatory if the company works withcommissions.

The sales employee can be assigned to a business partner, and can alsobe linked in the Employee Master Data window to an employee. If the

company does not have any sales persons, this definition can be used forother employees such as drivers or service people. If the sales

employee's name is modified, it will impact the history log.After entering the data for a sales employee, choose Update. The cursor

moves to a new row so another sales employee can be defined.To remove a sales employee, choose the sales employee's name,right-click and select Remove.

To display this window, choose Administration ® Setup ® General ®Sales Employees

Field Description/Activity

Sales Employee Name Enter the name of the sales employee, can bealphanumeric.

Remarks Enter a remark for each sales employee, for example, toidentify the region or industry in which that sales employee is active

(optional).Set as Default The default sales employee appears by default in the

master data and transactions; however, it can be changed as required ineach case. The default sales employee appears in bold. You can change

this setting at any time.It is preferable to define a different default sales employee for each

groups of users.

Commission Groups - Setup WindowDefinition


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Commissions can be defined for a sales employee, an item, or a

customer. The commission is determined when a sales document isentered and saved for all the rows in the document. The Commission

Groups define the commissions that are given internally to the salesemployees. The commissions are calculated in a report and are not

posted to any accounts.To define the commission, see Defining the Calculation of Commissions.

To calculate commissions for each sales employee, define thecommission groups and assign them to the sales employees. The

percentage of the commission appears in the rows of the salesdocument. To calculate commissions for an item or customer, specify

the defined commission groups in the master record for that item orcustomer.

If a commission has been defined for a customer in the business partnermaster data, that commission is applied in the sales document. If a

commission has been defined for the sales employee and for thecustomer, the customer commission is applied in the sales document.

If the data is changed it changes the history in all documents. Thecommission is calculated through a report and not accrued continuously

on an account.All the data in a commission group can be altered but not removed.

This setting is mandatory if the company works with commissions.Removing a Commission Group can be only be done if a user has thecorrect permissions. Choose the Commission Group's name, right-click

and select Data ® Remove.To display this window, choose Administration ® Setup ® General ®

Define Commission Groups

Defining the Calculation of CommissionsPrerequisitesFor the system to calculate commissions automatically, select the

appropriate check box in the System Initialization ® General Settings ®Sales tab, either Sales Employee, Item, or Customer. The corresponding

fields for sales employee, item, or customer is only visible and activewhen this check box is selected. This setting influences where the sales

commission percentage can be specified. It does not automaticallycalculate the commission transactions. This setting can be changed at

any time, but must be filled in if the company works with commissions.To calculate commissions for each sales employee, define the


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commission groups and assign them to the sales employees, see Define

Commission Groups.To calculate commissions for an item or customer, specify the defined

commission groups in the master record for that item or customer.The sales employee from the customer master record is used in the

sales document. If a commission has been defined for that salesemployee, that commission is applied, and the percentage of the

commission appears in the rows of the document.If a commission has been defined for a customer in the master record,

that commission is applied in the sales document. If a commission hasbeen defined for the sales employee and for the customer, the latter

definition applies in the sales document.The commission for the item has not been considered yet in the logic for

the sales documents at this point. The percentage in the detailedinformation for a row in the sales document can be modified. Evaluate

the commissions using the predefined system queries or user definedqueries.

Procedure1. The sys automatically positions the cursor on the first active row.

1. In the Define Commission Groups window, enter the name for thecommission group and the corresponding percentage.

2. Choose Update. The cursor then moves to a new row and anothercommission group can be defined. Commission groups can also bedefined at a later stage.

The table contains an entry for commissions to be specified manually(Manual Commission).. This entry does not define a percentage, and

cannot be modified, it is specified in the master record for an item or acustomer in this case.

When the commission group is specified in the master record, thecorresponding percentage is used, and the percentage field is not active

for an Item or a Customer.3. Choose Update then OK to save the data.

Inventory

UseThe following can be defined from Administration ® Setup ® Inventory

Item Groups – SetupItem Properties

WarehousesLength and Width UoM - Setup

Weight UoM - SetupCustoms Groups - Setup

ManufacturersShipping Types

LocationsInventory Cyles - Setup

Package Types


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Business PartnersUse

The following can be defined from Administration ® Setup ® BusinessPartners

Defining CountriesDefining Address Formats

Defining Customer and Vendor GroupsDefining Business Partner Properties

Defining Business Partner PrioritiesDefining Dunning Levels

Defining Dunning TermsDefining Payment TermsDefining Payment Blocks

Defining Agents

Cost AccountingSAP Business One enables you to define profit centers so that you can

monitor and regulate the costs of your business processes effectively.The profit center reports give you important information about the costs

and revenues that have arisen, sorted by area and department.First of all, you define the various cost centers or departments in your

company as profit centers. You then assign revenue and expenseaccounts to the profit centers so that any data relevant to a profit

center can be updated automatically for all transactions entered in thesystem. Costs are allocated to the profit centers using information that


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you define in a distribution rule. This means that any costs incurred will

be allocated to the profit centers on the basis of a specific key. If youdecide that the way in which costs are allocated no longer reflects the

way in which your company works, you simply change the distributionrule as required. You can use the Profit Center Report to generate a

profit and loss statement for any profit center and period.In addition to conventional financial accounting (where the values of all

business transactions are recorded), many companies also perform costaccounting. The aim of cost accounting is to determine how profitable a

company’s business activities are.Cost accounting allows you to analyze the expenses and revenue of a

specific business area in detail. Some expenses can be assigned to onespecific business area. Expenses and revenues that can be assigned to

one specific business activity are called direct costs and directrevenues.

In every company, there will always be expenses (and sometimes evenrevenues) that cannot be assigned to one specific business activity.

These include administration costs, advertising costs, and financingcosts. In Cost Accounting, these indirect costs (and indirect revenues)

are allocated to business activities by means of distribution keys.In addition to the data that you enter for profit centers and distribution

rules in the standard fields of SAP Business One, you can also define asmany user fields as you want for these objects. This is a convenient wayof storing a large quantity of additional data required in your company.

If you have created user-defined fields for profit centers anddistribution rules, you will find these in the menus for processing these

objects in the menu bar.

Budget – Setup Window

DefinitionThe following table describes the fields appear in the Budget - Setupwindow. to Display this window choose: Financials ® Budgets ® Budget.

Budget – Setup WindowField Description/Activity

Scenario Click the icon and choose the scenario for which you would liketo define a budget.

Find Opens the Find G/L Accounts window, which lets you selectspecific accounts.

X, Account Specify accounts for which you want to define a budget.Choose the icon to select the Level of the account display.


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Service

UseUse the Service Definitions window to define the following:

• Contract Templates• Queues

In the SAP Business One main menu, choose Administration ® Setup ®Service.


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Defining UsersProcedure

1. To display the Users - Setup window, choose Administration ® Setup® General ® Users.

2. Switch to Add mode. Enter the user specific information, see Users -Setup Window. If the user is to have superuser permissions, check the

Superuser checkbox. Note that authorizations for superusers cannot bemodified, therefore select this options carefully. See Authorizations.3. As required, define the user's defaults, by choosing the icon to right

of the Defaults field. The Choose From List window provides a selectionof existing defaults.

4. To define new defaults, in the List of User Defaults window, chooseNew. The User Defaults window displays. Set the defaults in this

window, see User Defaults Window.5. Choose Add, then OK in all relevant windows.

Defining AuthorizationsDefinitionAuthorizations are defined per user. Each user can have the same

permissions throughout the system, or can have different permissionsper module and sub module. Note that permissions for super users

cannot be modified.The following options are available for defining the various

authorizations for a user:• • Full Authorization: the user is able to display and modify data for

that function. per module.• • Read Only: the user can only view, but not change data.


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• • No Authorization: the user has no access to that function.

Each user's authorizations are displayed in the Authorizations Window.Various Authorizations is displayed for modules with mixed

authorizations, such as full authorization for some submodules andread-only for other submodules.

The main menu is not automatically updated according to theauthorizations. To display or hide certain modules or submodules, use

the Form Settings –Main Menu window, and select or deselect theVisible boxes as appropriate for each module.

Encryption can also be used to hide confidential data in the system. Forcertain users, the encoded characters are displayed instead of the

actual digits and characters.Prerequisites

Users must be predefined in the system, as either regular or superusers.Procedure

1. Choose Administration ® System Initialization ® Authorizations ®General Authorizations. The Authorizations window displays with the

list of users.2. To grant full authorization to a user for all functions in all modules,

choose the Full Authorization button at the bottom of the window.3. To grant read authorization to a user for all functions in all modules,

choose the Read Only button at the bottom of the window. The user canthen display all the data in the system, but cannot make any changes.4. To completely limit access, choose the No Authorization button at

the bottom of the window. The user will not be able to view or changeany of the data.

5. To provide different permissions for each module or sub module, inthe table, click on the authorization and select the required permission

from the dropdown list.6. To set a global maximum discount, enter the required discount in the

Max. Discount field, up to 100%.7. To set a maximum cash amount a user can enter in an incoming

payment, select the Max. Cash Total box and enter the requiredamount.

8. To hide certain data using encryption, select the Use Encryption box,then choose the Encryption Table button. In the Encryption Table

window that displays, enter the character that should appear in placeof that character. Choose OK to save the changes.

9. Choose Update to save the changes in the Authorizations window.Defining Approval Procedures

PrerequisitesIdentify the approval processes at the company. This can include

approvals for purchase orders or for a customer to exceed a definedcredit limit.

From the SAP Business One Main Menu, choose Administration ® SystemInitialization ® General Settings and, on the Sales tab, select the

Manage Document Generation Authorizations checkbox. Users defined asOriginators of the documents requiring approval cannot change thissetting.

Procedure1. If approval stages have not been defined, under Administration ®

Approval Procedures ® Approval Stages, enter a name for each stageand, if preferred, a description of the stage.

See Approval Stages – Setup Window.2. In the No. of Approvals Required field, enter the number of users that

are required for approval of each stage.It is often useful to have more than one approver; if one of the


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approvers is absent, another approver can still approve a document.

3. Enter the name of each of the users with approval privileges.By default, their department is taken from the user account. You can

override this when you define approval procedures.4. To save the data, choose Add.

5. Choose Administration ® Approval Procedures ® Approval Templatesand enter the name of the approval procedure, such as budget, exceed

credit limit, and so on (see Approval Templates Window).Since you may have several procedures for the same topic, it is also

useful to provide a description.6. If this template is required as part of the approval procedure, select

the Active checkbox.A template can be inactive for certain situations where a conflict might

arise with other procedures, or when it is no longer required.7. On the Originator tab, enter the user who requires approval for his or

her documents.Multiple users can be assigned to an approval procedure

8. On the Documents tab, select the documents that will be processedthrough this approval procedure.

9. On the Stages tab, select one or more approval stages (or steps) thathave been defined in the Approval Stages – Setup window.

10. On the Terms tab, if you select Always, this approval procedure isapplied to all combinations of the selected originators and documents.To define specific conditions when this approval procedure should be

followed, select When the Following Applies. If you choose When theFollowing Applies, two tables are displayed.

The upper table contains predefined conditions that can be selected.The Choose column allows users to apply one or more tests using the

predefined variables. The Term column contains the list of predefinedvariables. The Ratio column contains a list of predefined mathematical

operators to compare to the selected variable.Enter the threshold amount in the Value column. If the term is

compared to this amount using the selected ratio and the comparisonholds true, then the approval procedure is triggered. The lower table

permits selection of one or more saved queries for execution. If theresult of the saved query is “True”, then the approval procedure is

triggered. An approval procedure can be contingent upon both multiplepredefined variable comparisons and multiple saved queries

A total for the number of selected conditions displays at the bottom ofthe window.

11. To save the data, choose Add.12. To update an Approval Stage, switch the Define Stages window to

the Find mode and use standard search functions to locate the requiredstage.

13. Modify the information as required and choose Update, then OK tosave the data.


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Defining Alert Services

UseAlerts can be defined to automatically send a message to selected users

in the system whenever certain events occur. Messages triggered byalerts can be sent internally, or externally by e-mail, SMS message, or

fax.The settings for the Alert Services are optional and can be changed at

any time.Procedure1. Choose Administration ® System Initialization ® General Settings,

Services Tab2. Define whether the Inbox should be displayed once a message arrives

or not, by selecting the checkbox with that name.3. Define the refresh time for the Inbox. The default is 5 minutes.

4. Define whether you want to Display Recurring Postings on Executionby selecting the checkbox with that name.

5. Define whether to Send Alert for Contacts Scheduled for Today byselecting the checkbox with that name.

6. Choose Update and then OK to save the settings.


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Defining Address FormatsProcedure

1. Choose Administration ® Setup ® Business Partners ® AddressFormats. The Address Formats - Setup window appears.

2. Enter a name for the address format.3. Drag the required address options found on the right of the table

using the mouse.4. Add a new row to the table when you have finished editing a current

one, by choosing Data ® Add Row. The number of defined rows can beviewed in the first column in the table.

5. Choose an optoin in the table to customize it to your needs. This willdisplay additional fields allowing you to design the text type

6. Add required text using the Free Text option (last option in the listbeside the table).

7. Observe the final layout of the format displayed at the bottom left8. Choose Add to save the new format. If you make changes in anexisting format, choose Update to save your changes.

You can move information from one cell to another by dragging a cellwith the mouse.

You can also delete rows from the table. Choose a row number andselect Delete Row from the Data menu.

Countries – Setup WindowDefintion

This window contains a list of countries. Each country is linked to anaddress format relevant for marketing documents.

To access this window, choose Administration ® Setup ® BusinessPartners ® Countries


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Field Description/ActivityCode, Name Enter the country’s code and name.

Code for Report Enter the country code for the reports.Address Format Each country is assigned to an address format. This

format determines the structure of the address in marketingdocuments. You may select a different format, according to the

country’s regulations, or define a new one.EU Countries which are members of the European Union are specified as

EU. This definition is relevant for tax regulations when you defineaddresses for business partners and when you create documents.

Defining Territories

UseYou can use territories to manage a geographic location, brand, or item

category and its hierarchy. You can move territories using Drag and Dropto change their hierarchy within the window.

Adding and Updating a TerritoryYou can add territories either as independent, which sets the Territory

as a parent, or as a child. The first time you open this window isopened, you can add a new territory.

1. To add a territory, from the SAP Business One Main Menu, chooseAdministration ® Setup ® General ® Territories.

2. Highlight the territory that is the parent or child for the new territoryand choose either Add Same-Level or Add Sub-Level.3. To change the location of the territory, highlight and drag it to the

required location in the text area. Alternatively, you can choose theplacement from the list in the Location Order field.

4. To change the parent territory, choose the required parent from thelist.

5. To save the data, choose Update and OK.Inactivating/Activating a Territory

1. To inactivate a territory, choose Set Inactive.2. To save the data, choose Update and OK.


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Deleting a Territory

2. ...1. Before you delete a territory, ensure that it is not linked to another

function, for example, a Sales Opportunity.2. To delete the territory, right-click a territory and choose Remove.

Projects – Setup WindowDefinition

The following table describes the fields in the Projects – Setup window.In the SAP Business One main menu, choose: Administration ® Setup ®Financials ® Projects to open this window..

Projects – Setup WindowField Description/Activity

Project Enter the project code. The code can be a combination of up toeight characters.

Project Name Enter the full name of the project.


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General Settings: Display Tab

DefinitionThis tab is used to define certain settings for the way in which different

variables, such as dates, numerical values and currencies, are displayed.

In countries such as Denmark, Norway and Finland, where the paymentinvoice is created from the invoice document number, use only numeric

prefixes and suffixes for A/R invoices.To access this tab from the SAP Business One Main Menu, choose

Administration ® System Initialization ® General Settings ® Display tab.Display Tab Fields

Field Description/ActivityLanguage Select the language that SAP Business One should use for

display.Color Select the background color for the active windows.

Select Combined to define a background color individually for differentwindows in various colors.

To select a background color for a window, open the required windowand choose from the menu bar Window ® Color. Select the required

color.Default Length UoM, Default Weight UoM Define the standard units for

various length and weight units for items in Item and WarehouseManagement. When a new item is defined in SAP Business One, these

length and weight units are proposed automatically.Time Format Determine whether SAP Business One displays time in

12-hour or 24-hour format. If you choose the 24-hour format, then 1p.m. will be displayed as 13:00. If you choose the 12-hour format, it

will be displayed as 1:00.Date Format Define how the date is displayed throughout SAP Business

One. The settings in these fields do not affect how dates are entered inSAP Business One. The date can, however, be displayed differently from

the way it is entered.Separator Define the character that will be displayed in the date

format between the date fields. That is, between the day and month,and month and year.

Ext. Image Processing Define the resolution SAP Business One uses todisplay images. If you choose Full, the image will be displayed in the

resolution saved in the image file. Try to print images using the defaultoption first. If the images are not print as desired, select a different

option for this field.

Note that the selected value affects only the logged in user.Max Records in Choose from List Rows Define the maximum number ofrows that will be displayed in any Choose From List window.

Account Segment Separator Define the character for separatingbetween G/L account segments. This separator is used for display

purposes only. A dash (–) is recommended. Do not use any letters,numbers or an asterisk as a separator. The G/L account code must not

contain the same character as the separator. This setting is mandatorywhere account segmentation is used.

This option is available only in certain localizations.


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Posted by 송 혜 교 at 1:45 AM

Decimal Places (0…6) Define the respective number of decimal places

that will be displayed for amounts, prices, exchange rates, quantities,percentages, and units. You can change the selected values at any time.

The change will be applied on future actions only, and has noretroactive influence.

Note that your selection effects the calculations in SAP Business One,

and the values that will be saved in the data base. For example, if youchose 2 decimal places for amounts and you work with 6 decimal places

for very small prices and quantities, totals might be not accurate.Separator Define which character to use to separate the decimal places

from the integer. The U.S. and U.K. use a decimal point, for example,while German-speaking countries generally use a decimal comma.

Thousands Sep. Define which character to use as the thousandsseparator. The U.S. and U.K. use a comma as the thousands separator,

for example, while German-speaking countries generally use a period.Display Currency on the Right Select if you want the currency or

currency symbol to be displayed on the right side in amount fields. Bydefault, the currency symbol appears on the left of the amount.

Exchange Rate Posting Determine the display of exchange rates in SAPBusiness One. Select Direct to display the exchange rate according to

the foreign currency (that is, how many euros one US dollar is worth).Select Indirect to display the exchange rate according to the localcurrency (that is, how many US dollars one euro is worth).

This setting cannot be changed after transactions are recorded in the

company.

3 comments

W E D N E S D A Y, S E P T E M B E R 2 6 , 2 0 0 7

The Procure - to - Pay Cycle

The Procure - to - Pay Cycle

Introduction

SAP Business One has the capability to meet the procurement processneeds of SMBs - small and medium scale businesses. In a typically

organization, there's usually a purchasing department. The responsibilityof this department is to handle the procurement of materials. However,

this process impacts on other departments - inventory, materialrequirement planning, production and Financial. Suffice to say that, atany point in time, you are either impacting on stock quantity and/or

stock value.

In this posting, I shall be explaining the procurement process in SAPBusiness One as it relates to inventory and of course financial. Ideally,

the process starts with a purchase requisition is created and thenpurchase order. A goods receipt that is based on the purchase order is

then created. Based on the goods receipt, an invoice is then createdupon which the outgoing payment transaction is based. However, in SAP

Business One, purchase requistion is not catered for.

Figure 1.


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At this juncture, it is worth mentioning that SAP Business One leverages

the draw document wizard to facilitate the creation of a targetdocument (e.g Goods Receipt PO) based on a source document (e.g

purchase order). During the copying process, options as to how theinheritance of definitions should be carried out can be customized if

need be. It is important to state that the A/P Invoice is the onlydocument that is mandatory in order to register a procurement process.

Base documents such as the purchase order and the goods receipt POare optional.

The Purchase Order

The purchase order is a document used to request a supplier to supplygoods or services. This document usually contains strict conditions on

which the supply is based. A purchase order can be tied to cost centersor projects. The essence is to allow for better analysis as to what it's

actually meant for. Goods receipt and invoicing ideally references thepurchase order.

You can minimize data entry by duplicating an existing purchase order.

Also, when purchase order data such as the vendor and items areentered, default values are displayed based on the definition in the

relevant master data. For example, the address of the vendor, thepayment terms and payment systems, price and item description arecopied from the corresponding master data.

The purchase order contains the header part, line details and the footer.

The header part contain information about the entire purchase ordersuch as document currency, document date and due date. The line item

level contains information about the items ordered such as item codeand name. The footer also displays general document information such

as payment due and total discount value.

When a purchase order is created, no entry is made in accounting;however, the inventory status is updated based on the quantity ordered.

This is reflected in the ordered and in stock fields in the inventory tabof the item master data and the inventory report. The Purchase Order

can be accessed under:Purchasing - A/P > Purchase Order

Figure 2 shows the Purchase Order screen.

Figure 2

Goods Receipt PO (GPO)The second step in the procurement process in SAP Business One is the

creation of goods receipt that is based on a purchase order. Ideally,referencing a previously created purchasing order creates thisdocument. However, it can be created without referencing the purchase

order. When you record the receipt of goods, the system updates theopen item for the purchase order.

At this stage, it is pertinent for the appropriate department to check

whether the correct items are delivered and whether the actualquantity has been delivered, over delivery and under delivery is also

ascertained at this level. In more complex situation that involvesperishable items like pharmaceuticals, the expiration date can also be


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validated at this stage.

It is possible to create several goods receipt by referencing a single

purchase order especially when batch delivery is practiced. When agoods receipt is created based on a purchase order, the information

entered in the purchase order is inherited. Hence, the elimination of theneed for double entry. However, some of these definitions can also be

edited or modified when creating the goods receipt.

When goods receipt PO is created in the system, the inventory status isupdated by the quantity received. Also, if stocks are continuously

managed, relevant accounting information is updated in financials. TheGoods Receipt PO can be accessed under

Purchasing - A/P > Goods Receipt PO

Figure 3 shows the Goods Receipt PO screen.

Figure 3

AP InvoiceAfter purchase order and goods receipt creation, comes invoicing. When

you reference a purchase order or goods receipt when creating aninvoice, the system copies the data defined in the precedingdocument(s). This information includes vendor details, item code, item

description and quantity. These inherited values can be modified, forexample, installment payment. However, the system verifies if there

are irregularities between the purchase order or goods receipt and theinvoice. System messages are displayed accordingly depending on the

business rule defined in the system and invoices can be blocked as aconsequence. Basically what happens at the background is that when an

invoice is based on a purchase order and goods receipt, the systemcopies the order prices from the purchase order document and the

received quantities from the purchase order document. Furthermore,the system determines the quantities that are yet to be invoiced by

calculating the difference between the quantity delivered and thequantity that was invoiced earlier. The system also calculates the

expected value for the items, which is a product of the quantity to beinvoiced and the order price. This value is not static. It can be modified

accordingly. When an invoice is created, the corresponding vendoraccounts is updated accordingly. The AP Invoice can be accessed under

this path:Purchasing - A/P > AP Invoice

Figure 4 shows the AP Invoice screen

Figure 4

Outgoing PaymentMost times, outgoing payment is based on account payable invoices.

When a vendor is chosen, a list of all invoices awaiting payment isdisplayed. You simply click on the particular invoice to be paid and

effect the transaction. When an outgoing payment transaction iscreated, corresponding journal entry is created. Payment could be made

in check, bank transfer, credit card or cash. If you create outgoingpayment for a vendor that has a pre-defined consolidating business

partner, the journal entry is created against the consolidating businesspartner.


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Posted by 송 혜 교 at 11:29 PM

It is possible for outgoing payment to be based on one or more invoicesthat were fully paid. In such case, the transaction of the paid invoices

and the outgoing payment are automatically reconciled. Furthermore,the amount due and the paid/credit fields in the paid invoice are

updated accordingly and the status of the invoice changes to closed.The outgoing payment can be accessed under this path:

Banking > Outgoing Payments > Outgoing Payment

Figure 5 shows the Outgoing Payment screen

Figure 5

It is important to state that workflow - approval procedures anddocument reversal - Goods Return and Credit Memo are not discussed

here.

0 comments

Increasing Profitability through Inventory andFinancial Reports Analysis: A case for SAP BusinessOne

Although inventory report and cash flow report are seen as independent

reports to some extent, they are however interwoven. The perceptionof most SAP Business One users is that the cash flow report is a product

of just "current cash transactions". Yea, to some extent this assertion istrue; however, there is another leg to it.

The cash flow report gives the balances of cash accounts and accounts

that are subject to cash flow in the future. Inventory (Stock) itself canbe perceived as money that is tied down because asset increases when

stock is procured. The purchased stock can be raw materials for afinished good(s) that will yield revenue in the future. At production

stage, it is classified as work-in-progress (WIP). A number of journalentries are created during the production process in SAP Business One.

When components are issued for production, the WIP account is debitedand the stock account of the component is credited. When the

production order is completed, receipt from production is created. Thestock account of the product is debited by the actual value of the

finished product and the WIP account is credited. In case varianceoccurs, the system debits the WIP account with a negative value and

credits the WIP variance account.

From the foregoing, it can be deduced that the stock value increases bythe cost of production tied to the production process. On receipt fromproduction, it becomes a sales item that is expected to generate

revenue. Inventory is also updated accordingly. However, the costsincurred during production represent payables. These payables need to

be settled somehow, hence the need for cash flow report, which is acritical analysis of "money - in and money - out".

The Chief Financial Officer (CFO) is not interested in high inventory (over

stocking) based on the premise that it is "money tied down". Keepinghigh inventory is not cost effective. This is because additional costs

(such as carrying costs) are incurred especially while these stocks last inthe warehouse. This is not to say that inventory should be kept so low


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as not to meet demands or orders.

Although, the amount of inventory to be kept at any point in time is

ambiguous, the inventory turn ratio is a metric for determining inventoryusage. Inventory usage is calculated as a ratio of the annual cost of

goods sold to the average inventory.

For the purpose of illustration, let $1,000,000 be the annual cost ofgoods sold and $500,000 be the average inventory; obtained from profit

and loss statement and balance sheet report.Inventory Turn = Annual cost of goods sold/Average Inventory

= $1,000,000/$500,000= 2

If through better inventory management and financial analysis, the

inventory turn is increased to 10.Average Inventory = Annual cost of goods sold/Inventory Turn

= $1,000,000/10= $100,000

Reduction in inventory = $500,000 - $100,000

= $400,000The implication therefore is that you can generate same sales with only$100,000 of average inventory.

Furthermore, if the carrying cost (which is based on weight/volume

carried) is 20% of the average inventory, the savings will beSavings = Reduction in Inventory x 0.20

=$ 400,000 x 0.20= $80,000

Cross analysis of Inventory report and Financial reports such as Cash

Flow, Balance Sheet and Profit and Loss Statement can lead to costsaving and ultimately, profitability. Hence, it would be nice to have a

detailed and generic business intelligence report (that makes thisanalysis and more) like this by default in SAP Business One. What do you

think?

0 comments

Costing Methods in SAP Business One: An Overview- Part 1

Costing Methods in SAP Business One: An Overview - Part 1

Kehinde Eseyin (Systems Support Officer) Posted 6/13/2006

Inventory valuation is an integral part of a business, especially whenstocks are involved. It has direct effect on the cost of sales, which is

the summation of initial stock and inventory purchase less final stock.Hence, it is a sensitive phenomenon because it impacts on your financial

reports - Balance Sheet and Profit/Loss and even Tax reports. From theforegoing, it can be said that, inventory valuation is one of the metrics

for determining the profitability of a business.

SAP Business One supports only three types of costing or inventoryvaluation methods namely: Moving Average, FIFO and Standard Price.


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The golden rule is that, continuous stock management must be

activated before this functionality can be leveraged. Continuous stocksystem is defined under: Administration > System Initialization >

Company Details > Check default valuation method box (see figurebelow). Irrespective of the costing method leveraged, prices are

calculated in local currency.

Moving Average: Inventory is valued using the cost price of the items. Onreceipt of goods, the value is automatically updated. A stock receipt

transaction that affects accounting, debits the stock account while arelease transaction that affects accounting credits stock/sales return

account based on the cost price of the item.

Standard Price: When standard price is used as the costing method, astatic price is defined for each item. On stock receipt, it is not

automatically updated. The standard price method is advantageous incases where you produce the items yourself. A stock receipt transaction

that affects accounting debits the stock account based on the standardprice defined for the item. Very often than not, variance does occurs,

thus the difference between the standard price and the receiptdocument price will be posted to a variance account. A stock release

posting on the hand, credits the stock account according to thestandard price defined for the item.

FIFO: The FIFO inventory valuation method uses a "First- In- First Out"methodology.

This methodology ensures that when goods are received, a step-likearrangement or layer that is based on cost, quantities and entry date is

created. And during goods release, the goods from the first layer (open)and their corresponding cost are used.

Thus, the choice of which of the costing method to use is a function of

the objective to be achieved. Good enough, SAP Business One allows somuch flexibility as it relates to costing system. Different costing

method can be defined for different items and you can change thecosting system of your items globally. However, it is important to note

that continuous stock system cannot be deactivated after stock postinghave been made.

In this posting, I have only given an Overview of the costing methods in

SAP Business One. In my subsequent postings on the subject matter, I'dconcisely analyze the journal implications of each of these methods for

sales, purchasing, inventory and production transactions.

0 comments

T U E S D A Y, S E P T E M B E R 2 5 , 2 0 0 7

SAP REVIEWER

UNIT I: FUNDAMENTALS OF SAP BUSINESS ONE

MAIN MENU {includes modules} (afs pbb ips r)

ADMINISTRATION

FINANCIALSSALES - A/R

PURCHASING – A/P


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BUSINESS PARTNERS

BANKINGINVENTORY

PRODUCTIONSERVICE

REPORTS

MENU BARFILE, EDIT, VIEW, WINDOW, HELP, DATA GOTO, MODULE, TOOLS

TOOL BAR

PRINT PREVIEW, PRINT, SEND-EMAIL, SEND SMS, SEND FAX, EXPORTMS-EXCEL, EXPORT TO MS-WORD, LAUNCH APPLICATION, LOCK SCREEN,

FIND, ADD, FIRST DATA RECORD, PREVIOUS RECORD, NEXT RECORD,

LAST DATA RECORD

To change company:

Administration > Choose Company

To change user:Administration > Choose Company > Change User

To go to form of user maintenance: (asgu)Administration > Set-up > General > Users

Two Input Tools

1. Selection List2. Dropdown List

To change field labels: (if with authorization)

Ctrl + Double-click on the label

STATUS BAR {located at the bottom of the screen}NAME, LENGTH, CONTENTS OF THE CURRENT FIELD

To display more technical info about the field: {can be used for creating

queries or formatted searches}View > Debug Information

To change various display parameters:

Administration > System Initialization > General Settings, Display tab

To change background image:Administration > System Initialization > General Settings, Font&Bkgdtab

Different Display Parameters


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Language, Color, Default Length Unit, Default Weight Unit, Date

Format, Date Separator, Time Format, Display currencies on the right,Decimal Places, Decimal Separator, & Thousands Separator

To assign function keys F1 to F12 to most used transactions (user-defined shortcuts):

Tools > User shortcuts > Customize

To create user menu (user-defined menu):Tools > User menu > Organize

To add forms under the user menu:

1. Open a document (eg. Sales a/r > Sales Order)2. Go to Tools > User menu > Add to user menu

3. Highlight form. Click add.

To go to main window:

Ctrl + 0 or Window > Main Menu

To go to add mode:

Ctrl + A or Data > Add or Add Button in the toolbar

To customize main menu:

1. Go to Main Menu Window. Click Form Settings Icon (Rectangle with

wheels Toolbar).2. Check or Un-check Menu Items.

DRAG&RELATE {links two business objects to create a query}Drag field to the entry in the navigation drag and relate tree.

To limit authorizations per user for using reports:Administration > System Initialization > Authorizations > General

AuthorizationsSelect General > DRAG&RELATE

UNIT II: MASTER DATA

1. Business Partners2. Items and warehouses

(1) BUSINESS PARTNER MASTER DATA

Header Data (cbn f gc)- code, business partner type, name, foreign name, group, currency


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Tabs (gca ppap d)

- general, contact persons, addresses, payment terms, payment system,accounting, properties, details

To add BP Catalog number:

Inventory > Item management > BP Catalog No.

To create customer groups:Administration > Set-up > Business Partners > Customer Groups

To create vendor groups:

Administration > Set-up > Business Partners > Vendor Groups

To create domestic customer:Business Partners > Business Partner Master Data.

Change to add mode.

(2a) ITEM MASTER DATA

General area (I dip)

- item number, description, item group, prices(gps i ppd)

Tabs- general, purchasing, sales, inventory, planning, properties, details

To find an item:

Type *(keyword)

Item Master: Grouping Criteria

Can group products by

1. ITEM GROUP in the GENERAL AREA

2. MANUFACTURER in the GENERAL tab3. PROPERTIES tab

1. To create new entries to the dropdown list under item group:Choose DEFINE NEW in the list

2. To define item groups and properties in the administration:Administration > Set-up > Inventory > Item Groups/Properties

(2b) WAREHOUSES

To define new warehouses:

Administration > Set-up > Inventory > Warehouses

Warehouse Fields (walda)- warehouse code and warehouse name, address fields, location, drop

ship, accounting tab


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INVENTORY tab of the ITEM MASTER DATA

- Costing Method

- Warehouses- Stock quantities

- Cost price- Variance Account

- GL Account Determination- Stock Account

- Allocation Cost Account

COSTING METHODS

1. moving average price2. first in first out (fifo)

3. standard price (deals with variances)

KE To activate continuous stock management:Administration > System Initialization > Company Details > Check

default valuation method boxNote: Continuous stock management must be activated before this

functionality can be leveraged.

To define whether the system calculates one price for all warehouses or

not:Administration > System Initialization > Company Details > Basic

Initialization > Handle Price System per Warehouse checkbox

G/L ACCOUNT DETERMINATION

1. G/L Accounts by Item LevelInventory > Item Master Data, Inventory tab

2. G/L Accounts by Warehouse

Inventory > Warehouses, Accounting tab

3. G/L Accounts by Item GroupInventory > Item Groups, Accounting tab

To define default accounts:Administration > Definitions > Financials > G/L Account Determination

UNIT III: DOCUMENT HANDLING { marketing documents in sales npurchasing}

General Structures of Documents1. Upper Part (header)

- business partner, name, contact person,…

2. Middle Part- contents tab, logistics tab, accounting tab

3. Lower Part (footer)- buyer/ sales person, remarks,..


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To add header and footer text:Go to > Header & Footer (or RIGHT MOUSE CLICK), Insert predefined

texts

To define predefined texts:Administration > Definitions > General > Define Pre-defined Texts

FORM SETTINGS {used to customize documents}- table format (show or hide)

- row format (details)- document (default values)

DOCUMENT TYPES [in document, contents tab]

1. Item2. Service

ROW TYPES IN DOCUMENTS [in document, contents tab]

1. T – text row2. S – subtotal row

3. A – alternative item row (in a sales quotation)

To activate row type column:

Form Settings > Table Format

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F R I D A Y, S E P T E M B E R 2 1 , 2 0 0 7

10 FAQs: Procurement Process in SAP Business One

10 FAQs: Procurement Process in SAP Business Oneby Kehinde Eseyin(Systems Support Officer)

Q1. Can I create purchase requisition in SAP Business One?A1. No. SAP Business One does not support purchase requisition.

Q2. What are the implications of creating a Goods Receipt (that is

based on a Purchase Order)?A2. * As a result of the accounting effect of the Goods Receipt PO, both

the purchase order and the Goods Receipt PO cannot be amended.* The Inventory status is updated.* When using the draw document wizard, items that are already copied

in full or partial are displayed in light gray in the purchase order.

Q3. What are the implications of creating an A/P Invoice?A3. * The A/P Invoice cannot be changed.

* If the A/P Invoice is based on a Goods Receipt PO, then only the valuesgets updated; else stock quantity is also updated.

* When using the draw document wizard, items that are already copiedin full or partial are displayed in light gray in the base document.

Q4. Can I reverse a transaction that has already affected my stock

quantity and value?A4. Yes. A/P Credit Memo allows you to reverse transactions that you

already created an invoice for and the Goods Return functionality allows


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you to reverse transactions that have only affected stock quantity.

Q5. Does SAP Business One allow for partial and over deliveries?

A5. Yes. When you create Goods Receipt PO from a purchase orderdocument, you can choose to increase or decrease the quantity. The

later is called Over Deliveries while the former is called PartialDeliveries.

Q6. Which functionality in SAP Business One allows you to create a pro

forma invoice?A6. The A/P Reserve Invoice.

Q7. What is Split Purchase Order?

A7. Split Purchase order is a functionality that allows you to split apurchase order into child purchase order especially when dealing with

more than one warehouse.

Q8. What is Landed Costs?A8. The Landed Costs functionality in SAP Business One allows you to

calculate the actual cost price of an item based on added costs incurredsuch as custom duties, insurance, tax, etc. The base document for the

landed cost process is the Goods Receipt PO.

Q9. What is the use of the allocation cost account as it relates to the

journal entries created when goods are procured?A9. The Allocation Cost Account is used to enforce control by checking if

the goods receipts PO and the A/P Invoice are the same.

Q10. What is the accounting implication of procuring non-inventory itemon the Goods Receipt PO?

A10. There is no implication. For non-inventory items, SAP Business Onedoes not create postings for the Goods Receipt PO even if you explicitly

create one.

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F R I D A Y, S E P T E M B E R 1 4 , 2 0 0 7

Certification Review Questions

August Certification Dietby Kehinde Eseyin(Systems Support Officer)

1. How does the system calculate the stock available in the warehouse?

A. Instock + Ordered - CommittedB. Instock - Committed

C. Committed - OrderedD. Committed + In stock - Ordered

Answer A.

At any point, it is possible for the system to determine the inventory

level of an item in a warehouse or across warehouses. In determiningthis, the system adds the quantity in stock and ordered stock less

committed stock.In Stock + Ordered - Committed

The in stock is the actual stock quantity, the committed stock is the


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reserved stock as a result of committments made via sales order and

reserved invoices. The ordered stock is the stocks that have ordersplaced on them via purchase orders or production orders. If the

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

2. Which of the following document types can you create header and

footer text for?A. Business Partner master data

B. Sales OrderC. Item master Data

D. A/P Credit Memo

Answer: B, D

SAP Business One allows you to enter remarks and predefined text formarketing documents. You can't enter remarks for master data. To add

header and footer text, choose Goto > Opening and Closing remark.Alternatively, right mouse click and choose opening and closing remark.

Furthermore, you can insert predefined text. It is also possible to printout the header and footer remarks on a document.

3. It is possible to change the language settings of your SAP BusinessOne application. True or False?

Answer: True

SAP Business One is flexible in that it allows you to change the language

settings of your application. This can be done by accessing the followingpath

Administration > System Initialization > General Settings, Display Taband then Language field

4. The system prevents automatic posting to sub ledger accounts when

the active status of the posting period is set to "NO". True or False?

Answer: TrueThe purpose of the Active field is to allow or to block working with

sales documents. If you set the field to "NO" (and the period is notlocked), no sales documents can be created in SAP Business One during

this period. This option can be used in order to block users from addingnew sales documents after the posting period has ended. However, you

will still be able to add purchasing documents, inventory transactions,manual journal entries.When the status is set to "YES" (and the period is

not locked), you will be able to add all types of records: salesdocuments, purchasing documents, inventory transactions, manual

journal entries, Master Data, and reconciliations.

5. How many concurrent same user access is possible on a SAP Business

One company database?A. 1

B. 2C. 3

D. 4

Answer: BIt is possible to have only two concurrent user accesses on a company


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database.

6. On which side of an account is budget entered in SAP Business One?

A. Debit sideB. Credit side

C. Revenue sideD. Extra ordinary accounts

Answer A

In order to use the budgeting functionaliy of SAP Business One, it mustfirst be activated under Administration > System Initialization > General

Settings, Budget Tab and Check Budget Initialization field. Budget isentered on the debit side of an account. That is, the expense accounts,

hence SAP Business One checks for debit budget.

7. You want to create a credit memo that is based on an invoice withinstallment. What are the options available for you for applying the

credit memo amount to the installment.A. Equally

B. First InstallmentC. Last Installment

D. It is not possible to apply installment to credit memos

Answer: A, B, C

Installments are defined in the No of Installment field in the paymentterms. Credit memos are used to reverse an invoice. It is possible to

have installments defined for invoices. When creating credit memos forsuch invoices, the system allows you to distribute the credit memo

amount equally, or assign the credit memo amount to the 1stinstallment, the 2nd and in that order. Also, you can assign the credit

memo to the last installment, 2nd to the last and in that order.

8. Which of the following SAP Customer notes is termed priority 1?A. SAP FAQNotes

B. SAP TopNotesC. SAP HotNews

D. SAP HighNews

Answer: CSAP notes are solution to known problems. SAP HotNews are called high

priority notes because they contain notes on how to resolve or avoidproblems that can cause system shutdown or data loss. SAP TopNotes

are component and sub component based solutions. SAP FAQNotescontains most frequently asked questions and answers. Collections of

SAP notes are published as SAP HotNews and SAP TopNews. There'snothing like SAP HighNews.

9. The methodology that helps you operate SAP Business One on a longterm basis is called

A. SAP Early Watch AlertB. Operation Concept

C. Support DeskD. Escalation Handling

Answer: B

SAP Business One has a number of support tools, each with its ownfunction. The implementation and operation concept is a support tool


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that guides the implementation and management of the system,

especially on a long term basis. The SAP Early Watch Alert collectssystem data, analyzes it and generate recommendation report. The

support desk is another support tool that allows you create problemmessages and send to SAP from within SAP Business One. Message

escalation and project escalation are also support offerings that arehandled by team of experts.

10. Alternative item row type can be defined for which document type?

A. Purchase OrderB. Sales Order

C. Goods IssueD. Sales Quotation

Answer: D

It is possible to include the row type field in marketing documents. Thepossible row type definitions are Blank, Text (T), Sub total (£) and

Alternative item (A). The alternative item row type applies to only salesquotation. When it used, the value is not considered in sum calculation.

=======================

July Certification Dietby Kehinde Eseyin(Systems Support Officer)

1. You are using special prices in SAP Business One and you observe bluerows in the special prices window. Blue rows shows that

A. The item rows are not in stock.B. Special discount groups are the row items.

C. No special prices were defined for the item rows.D. The item rows have validity/quantity based special prices defined for

them.

Answer: D

There are business requirements in which you do not want special pricesto depend directly on the business partners, but on the items and

associated price lists. If a customer buys an item, and neither a specialprice nor a discount group has been defined for the customer or this

item, the special prices for the price list applies. This is setup underInventory > Price Lists > Hierarchies and Expansions. When the lines for

special price are expanded, the special price is displayed in blue in theHierarchies and Expansions window.

2. Commission can only be calculated for the following except

A. Sales EmployeeB. Item group

C. ItemD. Customers

Answer: B


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During system setup, under Administration > System Initialization >

General Settings, BP Tab, you can define how commission is calculated.Commission can be awarded based on the sales employee, item or

customer specified in the document. This setting influences where youcan specify the sales commission percentage, but does not

automatically calculate any commission transactions. This setting is notstatic; it can be changed at any time. Commission calculation cannot be

defined for Item group.

3. You want to use the Pick and Pack manager in SAP Business One,

what are the statuses available?A. Open

B. PickedC. Released

D. Blocked

Answer: A, B, CThe Pick and Pack Manager is used to handle the picking process. The

process starts with the creation of a pick list, then to the reporting ofpicked quantities, and ends with the packaging and delivery of the

picked items. The possible Pick and Pack statuses are Open, Releasedand Picked.Open - Displays the open Sales Order or Reserve Invoice rows.

Released - Displays the released quantities ready to be picked thatexist in the pick list

Picked - Displays the picked quantities.Blocked is not valid status.

4. What happen when you define the opening balances function and thesystem currency differs from the local currency?

A. An error message appears

B. You must manually convert the balancesC. The balances are converted automatically

D. It is not possible to enter opening balances when different systemand local currencies are used in a company.

Answer: C

When using the opening balances functionality, enter opening balancesin the local currency in column OB (LC) only if data is to be entered in

the local currency. If the system currency is different from the localcurrency, the system automatically calculates the opening balances in

the system currency and displays the values in column OB (SC). Hence,it is possible to enter opening balances even when the local and system

currencies differ and an error message is not displayed as a result. If aforeign currency has been defined for an account, the OB (FC) field willbe active. The system automatically calculates the amounts in the local

and system currencies, using the valid exchange rate on the value date.It is important to state that opening balance for a multi currency

account can only be entered in local currency

5. Which of the following is/are true about the Data Transfer Workbench

when it encounters an error?


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A. Rollback occurs and all data records that are already imported are

removed from the systemB. An error message is displayed and nothing happens.

C. The import process stops after a number of errors, yet to beimported records are stored in an error file

D. The import process stops after a number of errors and all recordsthat have already been imported are retained in the system.

Answer: A, C, D

The Data Transfer Workbench is a tool for data migration. Another

functionality that can be used for importing data into SAP Business Oneis the native import functionality. SAP Business One has a number of

ways of handling errors while importing data into the system. Whenerror is encountered while data upload is in progress, a rollback occurs

and all data records already imported are removed from the system.Alternatively, the Data Transfer Workbench stops the import process

after a certain number of errors and does not rollback. All records thatare yet to be imported are stored in an error file while the records that

are already imported remains in the system.

6. Which of the following are true about the uses of user defined fieldsin SAP Business One.A. It is used for integration into document templates

B. It is a tool used to generate SQL statementsC. It is used to find objects

D. It is used to format data records

Answer: A, CUser defined fields can be used for document template integration,

search objects, store additional information such as pictures and filesand reporting. It is not a tool for generating SQL Statements. The Query

Wizard and Query generator are tools used for generating SQLstatements. However, user-defined fields can be displayed in the print

layout designer or in the Query Generator window. Also, it is not usedfor formatting data records.

7. What are the levels of authorization available in SAP Business One?A. None

B. Read OnlyC. Full

D. Peer

Answer: A, B, CSAP Business One has it's own in built authorization levels.

Authorizations allow users to view, create, and update documents andyou assign them according to data ownership definitions. This is toenforce some sort of data security and controlled access. By default, a

new user has no authorizations. The three possible levels available areNone, Read Only and Full.

None: the user has no access to that functionality.Read Only: the user can only view, but not change data.

Full : the user is able to display and modify data for that functionalityper module.

Peer is solely related to data ownership concept in which the user andthe owner share the same manager on their corresponding employee


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records.

8. The types of Balance Sheet accounts includes the following except

A. AssetB. Equity

C. LiabilityD. Cost of Sales

Answer: D

A typical Chart of accounts is made of two major types of accounts,namely the balance sheet accounts and profit and loss accounts. For the

balance sheet accounts, three types of accounts are available. They areAsset, Liability and Capital and Reserve, otherwise called equity. Cost

of sales is a typical Profit and Loss accounts and not a balance sheetaccount.when a balance sheet report is processed, the asset account is

displayed on the active side while the liability and equity accounts aredisplayed on passive side.

9. Where in SAP Business One is the system and local currencies

configured.A. Administration > System Initialization > Company Details

B. Administration > System Initialization > General SettingC. Administration > setup > Financials > CurrenciesD. Financials > Chart of Accounts

Answer: A

SAP Business allows you to manage your accounts using system currency,local currency and multi currency. These definition can be made under

Administration > System Initialization > Company Details, choose BasicInitialization. The system and the Local currency can be the same or

different, however, the reporting currency is the system currency. Thisdefinition is not made under Administration > System Initialization >

General Settings. All currencies used in a company are defined underAdministration > Setup > Financials > Currencies. The chart of accounts

is accessed under Financials > Chart of Accounts. The chart of accountsis an index of all general ledger accounts; hence, system and local

currencies are not defined there.

10. Is it possible to have a negative balance in a credit field? True orFalse.

Answer: True

It is possible to display credit balances in negative. This is setup underAdministration >System Initialization >Company Details >Basic

Initialization tab. By default, the debit balances are displayed with anegative sign. The system displays a credit balance with a negative sign

because the credit balance depicts liabilities in an asset account. Thissetting is sensitive because it impacts on Opening balances for G/Laccount and business partners. Furthermore, the settings cannot be

changed after transactions have been posted.

==================


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June Certification Diet

Kehinde Eseyin(Systems Support Officer)

1.When you activate purchase account posting system, the G/L accountdetermination contains additional accounts namely:

A. Purchase AccountB. PA receipt account

C. PA return accountD. PA offset account

Answer: A, C, D

Three accounts are added to the G/L account determination whenpurchase account posting system is activated in the system. They are

Purchase account; PA return account and PA offset account.Purchase Account: This is recorded in the journal entry along with the

same amount that is recorded for the stock account when an A/Pinvoice or a goods receipt PO is created.

PA return account: This is recorded in the journal entry along with thesame amount that is recorded for the stock account, when a goods

return or an A/P credit memo is created.PA offset account: This account is used to offset the purchase orpurchase-return account, thus maintaining journal entries created by

balanced purchasing documentsPurchase accounting posting system is activated under Administration >

System Initialization > Company Details. Then select the Use PurchaseAccounts Posting System indicator in the Basic Initializations tab

2.What are the two possible payment means in a payment wizard run?

A. CashB. Checks

C. Bank TransferD. Credit Card

Answer: B, C

The payment wizard automatically creates payment documents basedon open invoices (payables and receivables) in the system. The payment

wizard run supports two types of payment means namely Checks andBank Transfer

3.Can a down payment request be changed? True/False

Answer: True

A down payment request is like a draft posting that shows that apayment is expected from a customer. A down payment request can be

changed as long as its status is open. The down payment closes thedown payment request.

4.You are implementing SAP Business One for a client, what is theminimum number of databases that should be created during the

project implementation phase.A. 1

B. 2C. 3

D. 4Answer: C


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At least, three databases should be created during the implementation

of SAP Business One. They are Demo, Production and Test databases.

5.What are the two types of SDK in SAP Business One?A. Implementation

B. DevelopmentC. Configuration

D. Testing

Answer: A, BSDK is an acronym for software development kit. It is a tool used to

further enhance the generic SAP Business One system. SDK is provided intwo versions in SAP Business One. They are Implementation SDK and

Development SDK. The former is used to add individual clientrequirement like form redesigning which does not necessarily require

coding while the latter is used to develop add-ons to interface with SAPBusiness One.

6. Company XYZ uses continuous stock system, what are the costing

methods that XYZ can use to manage its stocks.A. FIFO

B. LIFOC. Moving AverageD. Standard Price

Answer: A, C, D

Three valuation methods are available in SAP Business One. They areFIFO, Moving Average and Standard Price. These options are only

available if stocks are continuously managed in the system. The systemcalculates the moving average price by dividing the total value of the

stock through the amount in stock. In FIFO, the system stores everygoods receipt in a separate layer. When goods issue is posted, the

system uses the price of the item from the oldest layer, from the secondlayer and in that order. For standard price, a static price is specified.

7. Where do you set up G/L account determination in SAP Business One?

A. Administration > Setup > Inventory > Define warehousesB. Administration > System Initialization > Company Details

C. Administration > Setup > Inventory > Define Item group and choosethe Accounting Tab

D. Administration > Setup > Financials > G/L Account Determination

Answer: A, C, DG/L Account determination can be setup under A, C, D above. It is not

set up in Company Details (B). Essentially, G/L Account determinationcan be set up at the item level, warehouse level and item group level.

8. You are using the print layout functionality in SAP Business One,which field is used to define field labels or headings for the repetitive

area.A. Variable field

B. Calculation fieldC. Data field

D. Text field

Answer : DText field is used to define labels or headings for the repetitive area.


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The calculation field is used to perform both defined and predefined

calculation. The Data field prints the content of the master data andwarehouse data. The variable field is used to print data that is not

stored in any table but is calculated by certain procedures.

9. The default roles in SAP Business One Human Resources areA. Purchasing

B. Sales EmployeeC. Technician

D. Manager

Answer: A, B, CThe default role in SAP Business One Human Resources are purchasing,

Sales Employee and Technician. Other roles can however be added asthe need arises.

10. The three types of production orders in SAP Business One are

A. StandardB. Special

C. SalesD. Template

E. Disassembly

Answer: A, B, E

Three types of production orders are available in SAP Business One.They are Standard, Special and Disassembly production orders. The

standard production orders are copied from the bill of materials. Thespecial production orders are not necessarily based on the bill of

materials. The disassembly production order is used to report thedisassembly of a standard production order.

Sales and Template are not production order types but bill of materialstypes.

======================

May Certification Diet

Kehinde Eseyin(Systems Support Officer)

1. Which of the following about installments in SAP Business One is

correct?A. Installments can only be defined when posting the Invoice

B. Installments can only be defined in the payment terms window andcannot be changed in the invoice.C. Installments can be defined in the payments terms window and can

also be altered when creating the invoiceD. Installments can only be defined in G/L Account Determination.

Answer: C

Installments are defined as independent objects in the No. ofinstallments field within the payment terms window. Furthermore,

after installments are defined, they can be modified in the invoice.Installments are not defined in G/L Account Determination. When


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setting up installments, the installment rates, month and days are

defined and added to the whole invoice to determine the due date forthe individual installments.

2. Your company uses the Withholding Tax functionality in SAP Business

One, at which point can withholding tax be calculated?A. When posting the invoice

B. When posting the invoice and when posting the paymentC. When posting the payment

Answers: B.

The category field of the Define Withholding Tax window in SAP BusinessOne has two options, namely Payment and Invoice. If Payment is

chosen, the withholding tax is posted when payment is made and ifInvoice is chosen, the withholding tax is posted upon invoice.

3. Which of the following is/are the component(s) of the SAP Business

One Software Development Kit (SDK)?A. Data Interface Server (DI Server)

B. Data Interface Application Programming Interface (DI API)C. User Interface Application Programming Interface (UI API)

Answers: A, B, CThe SAP Business One SDK is used to develop additional functionality

applications in SAP Business One. The applications developed are calledAdd-ons. The DI Server supports the integration with non-SAP systems.

The DI API facilitates access between add-ons and the SAP Business Onedatabase. The third component which is the UI API facilitates access

between screen elements in the SAP Business One client.

4. The Due Date for a business partner is calculated based on themetrics defined in the payment system for the business partner.

True or False?

Answer: False.The payment system tab of the business partner master data contains

payment information such as house bank details and payment methods.The payment terms contains payment data which are inherited by

default in corresponding marketing documents. Such data includes duedate and total discount allowed.

5. Where in SAP Business One are control accounts defined and/or

managed?A. Administration > System Initialization > General Settings.

B. Administration > Setup > Financial > G/L Account DeterminationC. Administration > System Initialization > Company Details

D. Financials > Chart of Accounts

Answers: B, D

Control Accounts link the business partner accounts to the generalledger. A control account must be entered for every business partner in

the system. Examples of control accounts are account payables andreceivables, down payment payable and receivables, open debts.

Default control account can be entered under Administration >Setup/Definitions > Financials > G/L Account Determination. You can

define a G/L account as a control account under Financial > Chart ofAccounts; then check the control account box. Control accounts are not


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managed or defined under A and C.

6. A company is solely involved in the sales of 2 years warranty items.

Which of the following is correct for a Customer Equipment Card to becreated automatically for all sold items?

A. Create a service contract template with the type "Serial" and assignit to all sales items (warranty managed) in the item master data.

B. Create a service contract template with the type "Customer" andassign it to all Customers in the business partner master data.

C. Create a service contract template with the type "Item group" andassign it to all sales items (warranty managed) in the item master data.

D. Create a service contract template with the type "Customer" andassign it to all sales items (warranty managed) in the item master data.

Answer: A

Service contract can be created for serial number managed items,special customers and item groups. The implication of creating service

contract for serial number managed items in the item master data isthat, when a delivery note or A/R Invoice is created for that item, the

system automatically creates customer equipment card and servicecontract of the warranty service type. Assigning service contracts of the

customer and item group types to the item or business partner masterdata will not achieve this aim.

7. You are trying to reference a customer equipment card and you keepgetting an error message. The status of the customer equipment card is

likely to have been set toA. Active

B. LoanedC. In Lab

D. Closed

Answer: CWhen the status of a customer equipment card is set to returned,

terminated or in lab, an error message is displayed when you try toaccess it. However, a customer equipment card can be accessed if the

status is set to active or loaned. Closed is not a valid status forcustomer equipment card.

8. The SAP Business One Duty Manager is a telephone support service

that is used instead of the SAP Business One Hotline support servicewhen critical business processes are affected due to system

abnormalities.True or False

Answer: True

The Duty Manager Support service is used when critical businessprocesses are affected as a result of system abnormalities. Theanswering machine for this number is checked regularly, even outside

working hours. The hotline on the other hand is used basically tocontact SAP support when the SAP portal cannot be accessed.

9. A User Defined Table in SAP Business One is identified by which prefix

A. ?B. U_

C. @D. $


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Posted by 송 혜 교 at 2:01 AM

Answer: CUser defined tables are identified by the @ prefix, followed by a unique

code and then a name description by default. SAP Business One storesthe user defined field under the description U_ (title). $ is closely

associated with query syntax in SAP Business One e.g.$[Tablename.Fieldname]

10. Which of the following databases are supported by SAP Business

One?A. Oracle

B. Microsoft SQL ServerC. IBM DB2

D. Sybase

Answer: B, C, DSAP Business One can be deployed on Microsoft SQL Server, IBM DB2 and

Sybase. Oracle is not a supported database system.

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