Sap Business One Lessons

SAP BUSINESS ONE LESSONS
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T U E S D A Y, O C T O B E R 2 , 2 0 0 7
SAP Reviewer 2
Creating a New Company Setting the Company Address Defining Posting Periods Defining Open Balances Defining the Company Calendar Defining Account Segmentation Defining Purchase Accounting Defining Continuous Stock Defining Currencies Defining Indexes Defining Document Numbering Defining Document Settings Defining the Chart of Accounts Template Defining G/L Accounts Defining Print Preferences Defining Transactions Codes Define Tax Categories Defining Payment Terms Defining Sales Employees Defining Commission Groups Defining the Calculation of Commissions Defining Inventory and Item Settings Defining Business Partner Settings Defining Cost Accounting Defining Budget Setup Defining Service Settings Defining Users Defining Authorizations Defining Approval Procedures Defining Alert Services Defining Address Formats Defining Countries Defining Territories Defining Projects Defining Display Settings
Blog Archive 2007 (7) October (1) SAP Reviewer 2 September (6)
Creating New Companies Use The following procedure explains how to create new company in SAP Business One using the Choose Company window.
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*New companies can be also created using the Year Transfer function. Procedure 1. Choose Administration Choose Company. 2. Choose New. The Create New Company window appears. 3. Set all parameters in this window according to your needs 4. Choose OK. Result SAP Business One creates a new database on the connected server and adds the company to the list of existing companies in the Choose Company window. This operation may take some time. Once the new company is created, SAP Business One logs you on automatically 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 Definition This tab contains two sub-tabs with identical fields. On the Local Language tab, enter the details of the company that should be printed on documents in local language layout, and on the Foreign Language tab, enter the details to be printed when a print layout in a foreign language is selected. To access this window, from the Main Menu choose Administration System Initialization Company Details General tab. Company Details: General Tab Field Description/Activity Company Name Enter the name of your company. You can use an abbreviation of the company name if necessary, since this field is only used internally. The name you specify here appears at the top of the SAP 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 companys name, as it should be displayed on all 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 managers phone and fax numbers and e-mail address.
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Setting Opening Balances for G/L Accounts Use: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 years closing balance sheet. Enter the opening balances for the balance sheet accounts (assets, liabilities, and equity). The expense and revenue accounts are cleared with the balance sheet when they are created. If the fiscal year does not start on January 1st, change the date in the G/L Accounts Opening Balance window. If the company's fiscal year starts in the middle of the year, for example, July 1st, to view the opening balances from January 1st and from the first quarter, April 1st, enter several balances for different dates on the same accounts. Enter the 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 and revenue accounts. Procedure 1. In the SAP Business One main menu, choose Administration - System Initialization - 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 windows header, and fill in the relevant details. 4. Enter opening balances in 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 local currency, the system automatically 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 also active. The system then automatically calculates the amounts in the local and system currencies, using the valid exchange rate on the value date. Overwrite the calculated values if necessary. 6. Enter the value without a plus sign if the balance is in credit. If the balance 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 currency Result SAP Business One creates the opening balance transactions for the accounts updated in the G/L Accounts Opening Balances window. The original type assigned to these transactions is OB. Defining Calendar Settings Definition You 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 Use The 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 Account Segment 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 Account Segmentation. By default, there are four segments in the system. You can add up to 10 segments 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 a two-digit code.
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Purchasing Use The following can be defined from Administration Setup Puchasing Defining Landed Costs
Perpetual Inventory Purpose A perpetual inventory system reflects the value of stock postings in means of monetary transactions in the accounting system. These monetary 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 basic initialization before any transactions had been posted. There are three possible costing methods used for calculating the inventory value: Moving Average This 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 Main Menu, 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 Cost Price field is also located on the Inventory Data tab (see above). The item'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 in first out). Each inventory receipt transaction creates a "layer" of quantities linked to costs; each inventory release transaction will use quantities 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 default valuation 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 checkbox after 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 primary G/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/L account. This G/L account will be used as an offsetting account to the warehouse Stock account to which you enter beginning quantities. As you enter beginning quantities (from the Main Menu, choose Inventory Inventory Transactions Beginning Quantities; Inventory Tracking and Stock Posting Enter Initial Quantity Tab), after you click OK, you need to specify the Opening Stock account code at the upper part of the window. Setting G/L Accounts in the Item Master Data. (From the Main Menu, choose Inventory Item Master Data Inventory Data tab.) Define the default G/L Method in the Item Master Data. (from the Main 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 Window Definition The following table describes the columns that appear in the Currencies Definitions window. To access this window from the SAP Business One Main Menu, choose Administration Setup Financials Currencies. Currencies Setup Window Field Description/Activity Code Enter a code for the currency. The code length cannot exceed three characters. For example: USD, EUR. If you use the Payment Engine add-on, we strongly recommend that you define an internationally-agreed-abbreviation as the currency code. This way you ensure that the bank will accept the bank file created by the Payment Engine. Currency Enter the name of the currency. This name appears in the drop-down list for a currency in various windows. International Code Enter an international code to represent that currency in printed checks, for example: $, . International Description, Hundredths Name Columns Enter the international name of the currency and the name of the currencys decimal 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 the parameters entered in Administration General Settings Display tab. Rounding in Pmnt Select to round values in payment documents. Country-Specific Fields Switzerland Field Description/Activity ISR Calculation Select to determine that the currency is subject to ISR calculation.
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Indexes Setup Window Definition The following table describes the fields that appear in the Indexes Setup window. To open this window, choose: Administration Setup Financials Indexes. Indexes Setup Window Field Description/Activity Code, Name Enter a code and a name for each index. The index code is unique and can be combined of up to 3 characters
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Document Numbering Use Use this window to define the numbering of documents throughout the application, especially for theSales, Purchasing, Banking, Inventory, and Production modules. Depending on the country's legal requirements and the companys policy, distinct document numbering can be defined for each department 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 each department 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 Fields Field Description/Activity Document Displays the document types for which you define the numbering. 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. SAP Business 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 each time a new document is created. If the value in this column is not equal to the value in the First No. column and documents of this type have already been entered, the numbering of the corresponding document type can no longer be changed. Last No. Enter the last number that can be assigned for a document of this 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 Definition Use this window to define default settings for document types in SAP Business One. On the General tab, you define settings for sales and purchasing documents. To access the tab from the SAP Business One Main Menu, choose Administration System Initialization Document Settings General. Structure General Tab Fields Field Description/Activity Calculate 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. Once you 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 based on the items price on the selected price list. Last Purchase Price SAP Business One calculates gross profit based on the items 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 Valuation report. Item Cost SAP Business One calculates the gross profit based on the 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 been posted 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 the customer 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 Business One, or the customer/vendor reference number from the base document. When you choose to display the customer/vendor reference number and no such number is entered in the base document, the relevant field remains blank in the document that is created with reference to the base document. For a Sales BOM in documents, display: Select the Price and total for parent 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 the prices 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 select this 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 of the components in the sales document. Response to release of inventory below the minimum level: Define a minimum inventory level in the master record for an item that you manage in your warehouse. Use these options to define the system response when the inventory level falls below this minimum quantity as the result of a sales document. This check is performed for sales documents that contain a goods issue, such as deliveries or invoices. You define whether or not a warning message appears when the sales document is entered. If a warning appears in the sales document, it can be ignored. You can also specify that the sales document cannot be entered; select the Block Release check box. Manage inventory by whse Defines whether the check is performed for the warehouse selected in the document row. If you select the checkbox, the system checks the minimum inventory level in the warehouse 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 if the total available inventory of the item is greater than the minimum warehouse quantity. If you do not select this checkbox, the system checks the total available inventory in all warehouses where this item is stored. You can also define automatic notification for a specific user when the inventory 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 inventory usage? If you select Manage inventory by whse and Block negative inventory, SAP Business One calculates the block per warehouse. However, if the item 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 Date Round tax amount in rows Select to set the rounding of tax amounts per document row. If this option is deselected, document rows display the not rounded tax amount, and the system will round tax amounts per tax groups. Display rounding remark Select to determine whether a remark will be displayed in the Remarks field of the sales document when an amount has been rounded. If you select the checkbox, a remark in a foreigncurrency 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 this checkbox 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 additional costs 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 journal entries (invoice, credit memo, deposit, and payment documents). Allow future posting date Select to be able to create documents with future posting dates. Companies can create documents with future posting dates at the company level and then decide whether to apply this option to all the documents or only to those selected. Calculate the row total using the unit price Select to calculate the row total in marketing documents as follows: Unit Price x Discount x Quantity. The Unit Price is the price before discount. If you leave the checkbox deselected, the row total is calculated as follows: 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 Purchasing Document: Contents Tab.
Company Details: Basic Initialization Tab Definition The 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 Tab Field Description/Activity Chart of Accounts Template Select the chart of accounts that is the valid legal form for your company, or define your own by selecting User Defined. Alternatively, import the chart of accounts data from your legacy system. We recommend using one of the existing standard chart of accounts and adapting it to the companys 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 required system 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. For example, the corporate group requires a different reporting currency from the national currency. Also define a daily exchange rate for the system currency. Every document, and all reports and balance sheets are posted in 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 different currencies have been used. Display Credit Balance with Negative Sign Select to display credit balances with a negative sign. According to the default settings, debit balances 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 opening balances must be entered as positive or negative numbers. We recommend accepting the default setting, as this reflects the local requirements. Use Segmentation Accounts Select to specify if segments of information should be added to the standard account codes, such as division, region, cost center, and so on,. for detailed transaction tracking and reporting. Use Negative Amount for Reverse Transaction Selecting this option results in journal entries where the reversal is booked with negative amounts. If you do not select this option, the journal entry of the reversal is booked using a debit/credit switch. 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 contain more than one document type. All of these documents are part of the same numbering series. Select this option if these regulations are relevant for the company. This setting determines the settings that are displayed in certain Document Numbering windows. This option cannot be changed after it has been selected. Multi-Language Support Select to enable the Multi-Language Support function in the company. Use this function to translate field names in SAP Business One to foreign languages and print them in documents you send to foreign business partners. 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 be set before you start working in your company. FIFO: choose this option to calculate the inventory value by the FIFO method (first in first out). Each inventory receipt transaction creates a "layer" of quantities linked to costs; each inventory release transaction will 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 in documents 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 already been defined. Ordering Party This field is required for the interface with the Payment Engine add-on. House Bank Enter the company's default bank account and branch information. Country-Specific Fields Chile, France, Italy, Spain and Portugal Field Description/Activity Use Bill of Exchange Select to indicate that the company uses bills of exchange (BoE). If not selected, all references to BoE in SAP Business One are hidden. When a BoE transaction is added, Use Bill of Exchange cannot be disabled. This option is relevant for Italy, Portugal, Spain and France and activated by default. Israel Field Description/Activity Hierarchical Deduction at Source Select to indicate that the company uses hierarchical deduction at source method for tax deduction. Once this option is selected, the Define Deduction Groups button appears. Choose this button to open the Define Deduction Groups Setup window, in which you can define the relevant deduction groups for your company.
G/L Account Determination Use This 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 Tab Definition Field Activity / Description Max. Rows per Page Enter the maximum number of table rows per page. If more than the specified number of table rows has to be printed for a document, the excess rows are automatically printed on additional pages. The maximum number of table rows per page is usually between 10 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 value 100, the characters are printed in their original size. When you specify the value 70, the printed characters will be compressed by 70%. You can also 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 document on company letterhead. Max. Rows per Page During Export Specify the maximum number of table 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 pages and the page format of the Microsoft Word template. Print on Letter Paper Select this check box if you want to print the documents on company letterhead to deactivate your company details in the printout. Documents will be printed without your company details. Print SAP Business One Generation Message If you do not want the printed documents to contain the information that the document was created using SAP Business One, select this check box.
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Transaction Codes - Setup Window Definition The 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/Activity Code, Description Enter a code and a description for the transaction code. The code can be a combination of up to four characters.
Defining Payment Terms Use Use this function to define the payment terms that apply to transactions with customers and vendors. Enter the payment terms defined here in the master records of customers and vendors. The payment term specified here is proposed automatically when you create a master record. You can then change this data for each customer or vendor. The payment terms represent the typical agreements you have with your 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 the payment period, price list, and total discount in the document. This information is used, to calculate the prices for the items, the due date of an invoice, or the total discount allowed etc. You can also change the payment term data manually in the transaction itself 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 be used for a credit check.
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Sales Employees Setup Window Definition Defining a sales employee is mandatory if the company works with commissions. The sales employee can be assigned to a business partner, and can also be linked in the Employee Master Data window to an employee. If the company does not have any sales persons, this definition can be used for other 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 be alphanumeric. Remarks Enter a remark for each sales employee, for example, to identify 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 in each 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 Window Definition
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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 is entered and saved for all the rows in the document. The Commission Groups define the commissions that are given internally to the sales employees. 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 the commission groups and assign them to the sales employees. The percentage of the commission appears in the rows of the sales document. To calculate commissions for an item or customer, specify the defined commission groups in the master record for that item or customer. If a commission has been defined for a customer in the business partner master data, that commission is applied in the sales document. If a commission has been defined for the sales employee and for the customer, the customer commission is applied in the sales document. If the data is changed it changes the history in all documents. The commission 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 the correct 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 Commissions Prerequisites For 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 active when this check box is selected. This setting influences where the sales commission percentage can be specified. It does not automatically calculate 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 sales employee, 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 has been 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 detailed information for a row in the sales document can be modified. Evaluate the commissions using the predefined system queries or user defined queries. Procedure 1. The sys automatically positions the cursor on the first active row. 1. In the Define Commission Groups window, enter the name for the commission group and the corresponding percentage. 2. Choose Update. The cursor then moves to a new row and another commission group can be defined. Commission groups can also be defined 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 a customer in this case. When the commission group is specified in the master record, the corresponding 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 Use The following can be defined from Administration Setup Inventory Item Groups Setup Item Properties Warehouses Length and Width UoM - Setup Weight UoM - Setup Customs Groups - Setup Manufacturers Shipping Types Locations Inventory Cyles - Setup Package Types
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Business Partners Use The following can be defined from Administration Setup Business Partners Defining Countries Defining Address Formats Defining Customer and Vendor Groups Defining Business Partner Properties Defining Business Partner Priorities Defining Dunning Levels Defining Dunning Terms Defining Payment Terms Defining Payment Blocks Defining Agents
Cost Accounting SAP 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 expense accounts to the profit centers so that any data relevant to a profit center can be updated automatically for all transactions entered in the system. 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 you decide that the way in which costs are allocated no longer reflects the way in which your company works, you simply change the distribution rule 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 cost accounting. The aim of cost accounting is to determine how profitable a companys 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 one specific business area. Expenses and revenues that can be assigned to one specific business activity are called direct costs and direct revenues. In every company, there will always be expenses (and sometimes even revenues) that cannot be assigned to one specific business activity. These include administration costs, advertising costs, and financing costs. 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 as many user fields as you want for these objects. This is a convenient way of storing a large quantity of additional data required in your company. If you have created user-defined fields for profit centers and distribution rules, you will find these in the menus for processing these objects in the menu bar.
Budget Setup Window Definition The following table describes the fields appear in the Budget - Setup window. to Display this window choose: Financials Budgets Budget. Budget Setup Window Field Description/Activity Scenario Click the icon and choose the scenario for which you would like to define a budget. Find Opens the Find G/L Accounts window, which lets you select specific 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 Use Use 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 Users Procedure 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 be modified, 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 selection of existing defaults. 4. To define new defaults, in the List of User Defaults window, choose New. 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 Authorizations Definition Authorizations are defined per user. Each user can have the same permissions throughout the system, or can have different permissions per 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 and read-only for other submodules. The main menu is not automatically updated according to the authorizations. To display or hide certain modules or submodules, use the Form Settings Main Menu window, and select or deselect the Visible boxes as appropriate for each module. Encryption can also be used to hide confidential data in the system. For certain 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 can then 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 change any of the data. 5. To provide different permissions for each module or sub module, in the 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 required amount. 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 place of that character. Choose OK to save the changes. 9. Choose Update to save the changes in the Authorizations window. Defining Approval Procedures Prerequisites Identify the approval processes at the company. This can include approvals for purchase orders or for a customer to exceed a defined credit limit. From the SAP Business One Main Menu, choose Administration System Initialization General Settings and, on the Sales tab, select the Manage Document Generation Authorizations checkbox. Users defined as Originators of the documents requiring approval cannot change this setting. Procedure 1. If approval stages have not been defined, under Administration Approval Procedures Approval Stages, enter a name for each stage and, 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 Templates and 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 processed through this approval procedure. 9. On the Stages tab, select one or more approval stages (or steps) that have been defined in the Approval Stages Setup window. 10. On the Terms tab, if you select Always, this approval procedure is applied 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 the Following 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 predefined variables. 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 comparison holds true, then the approval procedure is triggered. The lower table permits selection of one or more saved queries for execution. If the result of the saved query is True, then the approval procedure is triggered. An approval procedure can be contingent upon both multiple predefined variable comparisons and multiple saved queries A total for the number of selected conditions displays at the bottom of the 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 required stage. 13. Modify the information as required and choose Update, then OK to save the data.
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Defining Alert Services Use Alerts can be defined to automatically send a message to selected users in the system whenever certain events occur. Messages triggered by alerts 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. Procedure 1. Choose Administration System Initialization General Settings, Services Tab 2. 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 Execution by selecting the checkbox with that name. 5. Define whether to Send Alert for Contacts Scheduled for Today by selecting the checkbox with that name. 6. Choose Update and then OK to save the settings.
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Defining Address Formats Procedure 1. Choose Administration Setup Business Partners Address Formats. 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 be viewed in the first column in the table. 5. Choose an optoin in the table to customize it to your needs. This will display additional fields allowing you to design the text type 6. Add required text using the Free Text option (last option in the list beside the table). 7. Observe the final layout of the format displayed at the bottom left 8. Choose Add to save the new format. If you make changes in an existing format, choose Update to save your changes. You can move information from one cell to another by dragging a cell with the mouse. You can also delete rows from the table. Choose a row number and select Delete Row from the Data menu.
Countries Setup Window Defintion This window contains a list of countries. Each country is linked to an address format relevant for marketing documents. To access this window, choose Administration Setup Business Partners Countries
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Field Description/Activity Code, Name Enter the countrys 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 marketing documents. You may select a different format, according to the countrys 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 define addresses for business partners and when you create documents.
Defining Territories Use You can use territories to manage a geographic location, brand, or item category and its hierarchy. You can move territories using Drag and Drop to change their hierarchy within the window. Adding and Updating a Territory You can add territories either as independent, which sets the Territory as a parent, or as a child. The first time you open this window is opened, you can add a new territory. 1. To add a territory, from the SAP Business One Main Menu, choose Administration Setup General Territories. 2. Highlight the territory that is the parent or child for the new territory and 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 the placement from the list in the Location Order field. 4. To change the parent territory, choose the required parent from the list. 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 Window Definition 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 Window Field Description/Activity Project Enter the project code. The code can be a combination of up to eight characters. Project Name Enter the full name of the project.
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General Settings: Display Tab Definition This 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 payment invoice 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/Activity Language 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 different windows in various colors. To select a background color for a window, open the required window and 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 Warehouse Management. 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 1 p.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 in SAP 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 to display images. If you choose Full, the image will be displayed in the resolution saved in the image file. Try to print images using the default option 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 of rows that will be displayed in any Choose From List window. Account Segment Separator Define the character for separating between 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 mandatory where account segmentation is used. This option is available only in certain localizations.
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Decimal Places (06) 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 no retroactive 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 you chose 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 thousands separator. 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. By default, the currency symbol appears on the left of the amount. Exchange Rate Posting Determine the display of exchange rates in SAP Business 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 local currency (that is, how many US dollars one euro is worth). This setting cannot be changed after transactions are recorded in the company. Posted by at 1:45 AM 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 process needs of SMBs - small and medium scale businesses. In a typically organization, there's usually a purchasing department. The responsibility of this department is to handle the procurement of materials. However, this process impacts on other departments - inventory, material requirement planning, production and Financial. Suffice to say that, at any 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 SAP Business One as it relates to inventory and of course financial. Ideally, the process starts with a purchase requisition is created and then purchase order. A goods receipt that is based on the purchase order is then created. Based on the goods receipt, an invoice is then created upon 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 target document (e.g Goods Receipt PO) based on a source document (e.g purchase order). During the copying process, options as to how the inheritance of definitions should be carried out can be customized if need be. It is important to state that the A/P Invoice is the only document that is mandatory in order to register a procurement process. Base documents such as the purchase order and the goods receipt PO are optional. The Purchase Order The purchase order is a document used to request a supplier to supply goods or services. This document usually contains strict conditions on which the supply is based. A purchase order can be tied to cost centers or projects. The essence is to allow for better analysis as to what it's actually meant for. Goods receipt and invoicing ideally references the purchase order. You can minimize data entry by duplicating an existing purchase order. Also, when purchase order data such as the vendor and items are entered, default values are displayed based on the definition in the relevant master data. For example, the address of the vendor, the payment terms and payment systems, price and item description are copied 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 order such as document currency, document date and due date. The line item level contains information about the items ordered such as item code and 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 tab of 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 this document. However, it can be created without referencing the purchase order. When you record the receipt of goods, the system updates the open 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 actual quantity has been delivered, over delivery and under delivery is also ascertained at this level. In more complex situation that involves perishable 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 a goods receipt is created based on a purchase order, the information entered in the purchase order is inherited. Hence, the elimination of the need 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 is updated by the quantity received. Also, if stocks are continuously managed, relevant accounting information is updated in financials. The Goods Receipt PO can be accessed under Purchasing - A/P > Goods Receipt PO Figure 3 shows the Goods Receipt PO screen. Figure 3 AP Invoice After purchase order and goods receipt creation, comes invoicing. When you reference a purchase order or goods receipt when creating an invoice, the system copies the data defined in the preceding document(s). This information includes vendor details, item code, item description and quantity. These inherited values can be modified, for example, installment payment. However, the system verifies if there are irregularities between the purchase order or goods receipt and the invoice. System messages are displayed accordingly depending on the business rule defined in the system and invoices can be blocked as a consequence. Basically what happens at the background is that when an invoice is based on a purchase order and goods receipt, the system copies 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 the quantity that was invoiced earlier. The system also calculates the expected value for the items, which is a product of the quantity to be invoiced and the order price. This value is not static. It can be modified accordingly. When an invoice is created, the corresponding vendor accounts 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 Payment Most times, outgoing payment is based on account payable invoices. When a vendor is chosen, a list of all invoices awaiting payment is displayed. You simply click on the particular invoice to be paid and effect the transaction. When an outgoing payment transaction is created, corresponding journal entry is created. Payment could be made in check, bank transfer, credit card or cash. If you create outgoing payment for a vendor that has a pre-defined consolidating business partner, the journal entry is created against the consolidating business partner.
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It is possible for outgoing payment to be based on one or more invoices that 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 and document reversal - Goods Return and Credit Memo are not discussed here. Posted by at 11:29 PM 0 comments
Increasing Profitability through Inventory and Financial Reports Analysis: A case for SAP Business One
Although inventory report and cash flow report are seen as independent reports to some extent, they are however interwoven. The perception of 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 is true; 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 can be perceived as money that is tied down because asset increases when stock is procured. The purchased stock can be raw materials for a finished good(s) that will yield revenue in the future. At production stage, it is classified as work-in-progress (WIP). A number of journal entries are created during the production process in SAP Business One. When components are issued for production, the WIP account is debited and the stock account of the component is credited. When the production order is completed, receipt from production is created. The stock account of the product is debited by the actual value of the finished product and the WIP account is credited. In case variance occurs, 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 by the cost of production tied to the production process. On receipt from production, it becomes a sales item that is expected to generate revenue. Inventory is also updated accordingly. However, the costs incurred during production represent payables. These payables need to be settled somehow, hence the need for cash flow report, which is a critical 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". Keeping high inventory is not cost effective. This is because additional costs (such as carrying costs) are incurred especially while these stocks last in the 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 inventory usage. 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 of goods 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 = $400,000 The implication therefore is that you can generate same sales with only $100,000 of average inventory. Furthermore, if the carrying cost (which is based on weight/volume carried) is 20% of the average inventory, the savings will be Savings = Reduction in Inventory x 0.20 =$ 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 cost saving and ultimately, profitability. Hence, it would be nice to have a detailed and generic business intelligence report (that makes this analysis and more) like this by default in SAP Business One. What do you think? Posted by at 11:23 PM 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 when stocks 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 the foregoing, 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 inventory valuation 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 stock system is defined under: Administration > System Initialization > Company Details > Check default valuation method box (see figure below). Irrespective of the costing method leveraged, prices are calculated in local currency. Moving Average: Inventory is valued using the cost price of the items. On receipt of goods, the value is automatically updated. A stock receipt transaction that affects accounting, debits the stock account while a release 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, a static price is defined for each item. On stock receipt, it is not automatically updated. The standard price method is advantageous in cases where you produce the items yourself. A stock receipt transaction that affects accounting debits the stock account based on the standard price defined for the item. Very often than not, variance does occurs, thus the difference between the standard price and the receipt document price will be posted to a variance account. A stock release posting on the hand, credits the stock account according to the standard 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-like arrangement 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 so much flexibility as it relates to costing system. Different costing method can be defined for different items and you can change the costing system of your items globally. However, it is important to note that continuous stock system cannot be deactivated after stock posting have 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'd concisely analyze the journal implications of each of these methods for sales, purchasing, inventory and production transactions. Posted by at 11:21 PM 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 FINANCIALS SALES - A/R PURCHASING A/P
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BUSINESS PARTNERS BANKING INVENTORY PRODUCTION SERVICE REPORTS MENU BAR FILE, EDIT, VIEW, WINDOW, HELP, DATA GOTO, MODULE, TOOLS TOOL BAR PRINT PREVIEW, PRINT, SEND-EMAIL, SEND SMS, SEND FAX, EXPORT MS-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 List 2. 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&Bkgd tab
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 (userdefined 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 Authorizations Select General > DRAG&RELATE
UNIT II: MASTER DATA 1. Business Partners 2. 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 tab 3. 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 price 2. 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 box Note: 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 Level Inventory > Item Master Data, Inventory tab 2. G/L Accounts by Warehouse Inventory > Warehouses, Accounting tab 3. G/L Accounts by Item Group Inventory > Item Groups, Accounting tab
To define default accounts: Administration > Definitions > Financials > G/L Account Determination
UNIT III: DOCUMENT HANDLING { marketing documents in sales n purchasing} General Structures of Documents 1. 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. Item 2. Service ROW TYPES IN DOCUMENTS [in document, contents tab] 1. T text row 2. S subtotal row 3. A alternative item row (in a sales quotation) To activate row type column: Form Settings > Table Format Posted by at 11:17 PM 0 comments
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10 FAQs: Procurement Process in SAP Business One

10 FAQs: Procurement Process in SAP Business One by 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 values gets updated; else stock quantity is also updated. * When using the draw document wizard, items that are already copied in 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 order document, you can choose to increase or decrease the quantity. The later is called Over Deliveries while the former is called Partial Deliveries. 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 a purchase 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 incurred such 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 item on the Goods Receipt PO? A10. There is no implication. For non-inventory items, SAP Business One does not create postings for the Goods Receipt PO even if you explicitly create one. Posted by at 7:45 PM 0 comments
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Certification Review Questions

August Certification Diet by Kehinde Eseyin(Systems Support Officer)
1. How does the system calculate the stock available in the warehouse? A. Instock + Ordered - Committed B. Instock - Committed C. Committed - Ordered D. 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 determining this, 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 orders placed 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 Order C. Item master Data D. A/P Credit Memo Answer: B, D SAP Business One allows you to enter remarks and predefined text for marketing 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 print out the header and footer remarks on a document. 3. It is possible to change the language settings of your SAP Business One 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 following path Administration > System Initialization > General Settings, Display Tab and 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: True The 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 not locked), no sales documents can be created in SAP Business One during this period. This option can be used in order to block users from adding new 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: sales documents, 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. 2 C. 3 D. 4 Answer: B It 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 side B. Credit side C. Revenue side D. Extra ordinary accounts Answer A In order to use the budgeting functionaliy of SAP Business One, it must first be activated under Administration > System Initialization > General Settings, Budget Tab and Check Budget Initialization field. Budget is entered 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 with installment. What are the options available for you for applying the credit memo amount to the installment. A. Equally B. First Installment C. 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 payment terms. Credit memos are used to reverse an invoice. It is possible to have installments defined for invoices. When creating credit memos for such invoices, the system allows you to distribute the credit memo amount equally, or assign the credit memo amount to the 1st installment, 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 TopNotes C. SAP HotNews D. SAP HighNews Answer: C SAP notes are solution to known problems. SAP HotNews are called high priority notes because they contain notes on how to resolve or avoid problems that can cause system shutdown or data loss. SAP TopNotes are component and sub component based solutions. SAP FAQNotes contains most frequently asked questions and answers. Collections of SAP notes are published as SAP HotNews and SAP TopNews. There's nothing like SAP HighNews. 9. The methodology that helps you operate SAP Business One on a long term basis is called A. SAP Early Watch Alert B. Operation Concept C. Support Desk D. Escalation Handling Answer: B SAP Business One has a number of support tools, each with its own function. 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 collects system data, analyzes it and generate recommendation report. The support desk is another support tool that allows you create problem messages and send to SAP from within SAP Business One. Message escalation and project escalation are also support offerings that are handled by team of experts. 10. Alternative item row type can be defined for which document type? A. Purchase Order B. Sales Order C. Goods Issue D. Sales Quotation Answer: D It is possible to include the row type field in marketing documents. The possible row type definitions are Blank, Text (T), Sub total () and Alternative item (A). The alternative item row type applies to only sales quotation. When it used, the value is not considered in sum calculation.
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July Certification Diet by Kehinde Eseyin(Systems Support Officer)
1. You are using special prices in SAP Business One and you observe blue rows 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 prices to depend directly on the business partners, but on the items and associated price lists. If a customer buys an item, and neither a special price nor a discount group has been defined for the customer or this item, the special prices for the price list applies. This is setup under Inventory > Price Lists > Hierarchies and Expansions. When the lines for special price are expanded, the special price is displayed in blue in the Hierarchies and Expansions window. 2. Commission can only be calculated for the following except A. Sales Employee B. Item group C. Item D. 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 you can specify the sales commission percentage, but does not automatically calculate any commission transactions. This setting is not static; 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. Picked C. Released D. Blocked Answer: A, B, C The 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 of picked quantities, and ends with the packaging and delivery of the picked items. The possible Pick and Pack statuses are Open, Released and Picked. Open - Displays the open Sales Order or Reserve Invoice rows. Released - Displays the released quantities ready to be picked that exist 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 the system currency differs from the local currency? A. An error message appears B. You must manually convert the balances C. The balances are converted automatically D. It is not possible to enter opening balances when different system and local currencies are used in a company. Answer: C When using the opening balances functionality, enter opening balances in 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 local currency, 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 a foreign currency has been defined for an account, the OB (FC) field will be 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 system B. An error message is displayed and nothing happens. C. The import process stops after a number of errors, yet to be imported records are stored in an error file D. The import process stops after a number of errors and all records that 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 One is the native import functionality. SAP Business One has a number of ways of handling errors while importing data into the system. When error 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 that are 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 fields in SAP Business One. A. It is used for integration into document templates B. It is a tool used to generate SQL statements C. It is used to find objects D. It is used to format data records Answer: A, C User defined fields can be used for document template integration, search objects, store additional information such as pictures and files and reporting. It is not a tool for generating SQL Statements. The Query Wizard and Query generator are tools used for generating SQL statements. However, user-defined fields can be displayed in the print layout designer or in the Query Generator window. Also, it is not used for formatting data records.
7. What are the levels of authorization available in SAP Business One? A. None B. Read Only C. Full D. Peer Answer: A, B, C SAP Business One has it's own in built authorization levels. Authorizations allow users to view, create, and update documents and you assign them according to data ownership definitions. This is to enforce some sort of data security and controlled access. By default, a new user has no authorizations. The three possible levels available are None, 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 functionality per module. Peer is solely related to data ownership concept in which the user and the 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. Asset B. Equity C. Liability D. 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 are Asset, Liability and Capital and Reserve, otherwise called equity. Cost of sales is a typical Profit and Loss accounts and not a balance sheet account.when a balance sheet report is processed, the asset account is displayed on the active side while the liability and equity accounts are displayed 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 Setting C. Administration > setup > Financials > Currencies D. 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 Basic Initialization. The system and the Local currency can be the same or different, however, the reporting currency is the system currency. This definition is not made under Administration > System Initialization > General Settings. All currencies used in a company are defined under Administration > Setup > Financials > Currencies. The chart of accounts is accessed under Financials > Chart of Accounts. The chart of accounts is 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 or False. Answer: True It is possible to display credit balances in negative. This is setup under Administration >System Initialization >Company Details >Basic Initialization tab. By default, the debit balances are displayed with a negative sign. The system displays a credit balance with a negative sign because the credit balance depicts liabilities in an asset account. This setting is sensitive because it impacts on Opening balances for G/L account 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 account determination contains additional accounts namely: A. Purchase Account B. PA receipt account C. PA return account D. PA offset account Answer: A, C, D Three accounts are added to the G/L account determination when purchase 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/P invoice or a goods receipt PO is created. PA return account: This is recorded in the journal entry along with the same 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 or purchase-return account, thus maintaining journal entries created by balanced purchasing documents Purchase accounting posting system is activated under Administration > System Initialization > Company Details. Then select the Use Purchase Accounts Posting System indicator in the Basic Initializations tab 2.What are the two possible payment means in a payment wizard run? A. Cash B. Checks C. Bank Transfer D. Credit Card Answer: B, C The payment wizard automatically creates payment documents based on open invoices (payables and receivables) in the system. The payment wizard run supports two types of payment means namely Checks and Bank 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 a payment is expected from a customer. A down payment request can be changed as long as its status is open. The down payment closes the down payment request. 4.You are implementing SAP Business One for a client, what is the minimum number of databases that should be created during the project implementation phase. A. 1 B. 2 C. 3 D. 4 Answer: 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. Development C. Configuration D. Testing Answer: A, B SDK is an acronym for software development kit. It is a tool used to further enhance the generic SAP Business One system. SDK is provided in two versions in SAP Business One. They are Implementation SDK and Development SDK. The former is used to add individual client requirement like form redesigning which does not necessarily require coding while the latter is used to develop add-ons to interface with SAP Business One. 6. Company XYZ uses continuous stock system, what are the costing methods that XYZ can use to manage its stocks. A. FIFO B. LIFO C. Moving Average D. Standard Price Answer: A, C, D Three valuation methods are available in SAP Business One. They are FIFO, Moving Average and Standard Price. These options are only available if stocks are continuously managed in the system. The system calculates the moving average price by dividing the total value of the stock through the amount in stock. In FIFO, the system stores every goods receipt in a separate layer. When goods issue is posted, the system uses the price of the item from the oldest layer, from the second layer 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 warehouses B. Administration > System Initialization > Company Details C. Administration > Setup > Inventory > Define Item group and choose the Accounting Tab D. Administration > Setup > Financials > G/L Account Determination Answer: A, C, D G/L Account determination can be setup under A, C, D above. It is not set up in Company Details (B). Essentially, G/L Account determination can 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 field C. Data field D. Text field Answer : D Text 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 and warehouse 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 are A. Purchasing B. Sales Employee C. Technician D. Manager Answer: A, B, C The default role in SAP Business One Human Resources are purchasing, Sales Employee and Technician. Other roles can however be added as the need arises. 10. The three types of production orders in SAP Business One are A. Standard B. Special C. Sales D. 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. The special production orders are not necessarily based on the bill of materials. The disassembly production order is used to report the disassembly of a standard production order. Sales and Template are not production order types but bill of materials types.
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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 and cannot be changed in the invoice. C. Installments can be defined in the payments terms window and can also be altered when creating the invoice D. Installments can only be defined in G/L Account Determination. Answer: C Installments are defined as independent objects in the No. of installments 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 for the 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 payment C. When posting the payment Answers: B. The category field of the Define Withholding Tax window in SAP Business One has two options, namely Payment and Invoice. If Payment is chosen, the withholding tax is posted when payment is made and if Invoice 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, C The SAP Business One SDK is used to develop additional functionality applications in SAP Business One. The applications developed are called Add-ons. The DI Server supports the integration with non-SAP systems. The DI API facilitates access between add-ons and the SAP Business One database. 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 the metrics 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 due date 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 Determination C. Administration > System Initialization > Company Details D. Financials > Chart of Accounts Answers: B, D Control Accounts link the business partner accounts to the general ledger. A control account must be entered for every business partner in the system. Examples of control accounts are account payables and receivables, 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 of Accounts; 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 be created automatically for all sold items? A. Create a service contract template with the type "Serial" and assign it to all sales items (warranty managed) in the item master data. B. Create a service contract template with the type "Customer" and assign it to all Customers in the business partner master data. C. Create a service contract template with the type "Item group" and assign it to all sales items (warranty managed) in the item master data. D. Create a service contract template with the type "Customer" and assign 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 is that, when a delivery note or A/R Invoice is created for that item, the system automatically creates customer equipment card and service contract of the warranty service type. Assigning service contracts of the customer and item group types to the item or business partner master data will not achieve this aim. 7. You are trying to reference a customer equipment card and you keep getting an error message. The status of the customer equipment card is likely to have been set to A. Active B. Loaned C. In Lab D. Closed Answer: C When the status of a customer equipment card is set to returned, terminated or in lab, an error message is displayed when you try to access it. However, a customer equipment card can be accessed if the status is set to active or loaned. Closed is not a valid status for customer 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 service when critical business processes are affected due to system abnormalities. True or False Answer: True The Duty Manager Support service is used when critical business processes are affected as a result of system abnormalities. The answering machine for this number is checked regularly, even outside working hours. The hotline on the other hand is used basically to contact 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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Answer: C User defined tables are identified by the @ prefix, followed by a unique code and then a name description by default. SAP Business One stores the 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 Server C. IBM DB2 D. Sybase Answer: B, C, D SAP Business One can be deployed on Microsoft SQL Server, IBM DB2 and Sybase. Oracle is not a supported database system. Posted by at 2:01 AM 0 comments
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