SAP B1 Preparation Guide

Contents
TB1000 Logistics ....................................................................................................................................... 1 Basics ...................................................................................................................................................... 1 AP - Accounts Payable ............................................................................................................................. 1 AR Sales ................................................................................................................................................ 4 Inventory................................................................................................................................................. 7

TB1000 Logistics
Basics
1. Master Data open in Add Mode while Document Window opens in Display Mode 2. You can use the four fields on the right to display additional data any object. The system displays this data when you use the object in the active window. For example you can display the customers telephone number while entering an order 3. F1 is reserved for help. F2 F12 can be assigned to the most used transactions 4. In Marketing documents you can choose the rows type on the contents tab page. The options for the row types are: a. Blank : For a regular item row b. T: for the text row c. : for subtotal row d. A: available on in Sales Order for alternative items. An alternative item is not taken into account on sum calculations 5. Shift+F1 : Field context help F1: Context-sensitive help 6. Help->Support desk-> Find a solution : searches for a solution by key words 7. System messages log pane displays upto last 50 messages 8. To change the date/time format: Administration-> System Initialisation -> General settings -> Display Tab->Date Format and Time Format 9. Drag & Relate

AP - Accounts Payable
1. AP Process: PO -> GRPO -> A/P Invoice -> Out going Invoice

Goods Return AP Credit Memo 2. In AP Process, the only mandatory document is AP invoice 3. Purchasing documents are built on each other. Refer to point 1 above for the document flow To quickly add next document a. Step one: Open the Base document and use Copy to button to next document b. Step Two: Open the target document and press copy from and select the base document. One advantage in using this step is that multiple base document can be selected in the target document. 4. To view Inventory status report choose Inventory -> Inventory Reports -> Inventory Status 5. Inventory Effect and Accounting Effect in various AP scenarios

Transaction Purchase Order Goods Receipt Goods Return AP Invoice

Inventory Effect Instock Commited Ordered + + -

Available +

AP Credit Memo

+ + -

+ +

Accounting Effect Debit Credit No Acctg Entry Goods Recd A/c Allocation A/c Goods Recd. Allocation A/c A/c Allocation A/c Party A/c Allocation A/c Party A/c Goods Recd. Allocation A/c A/c

Purchasing / AP

GRPO W/o PO AP Invoice with ref. to PO

AP Reserve + + Invoice w/o PO GRPO with ref. to AP reserve + Invoice 6. Once the GRPO is added : a. PO (base document) cannot be changed b. GRPO creates a journal Entry to increase inventory value and therefore cannot be changed c. Stock qty. is Updated d. Fully / Partially delivered items appear in light grey in PO. Fully delivered Po is closed automatically. Partially delivered PO remain Open. e. Partially delivered PO which will not be delivered should be closed manually 7. Once AP Invoice is created: a. A/P invoice is a result of GRPO (base document) there is no Inventory updation. If a direct AP invoice is posted, it update the inventory values. b. AP Invoice creates the journal entry to update the vendor Balance. c. AP Invoice cannot be changed d. Completely/ Partially invoiced items from GRPO are displayed in light grey. Fully invoiced GRPOs are closed automatically 8. Outgoing payment means: a. Cash b. Check c. Credit card d. Bank transfer e. Bills of exchange

9. When an outgoing payment (fully or partial) is added an appropriate journal entry is created reducing the vendor balance and internal reconciliation automatically takes place. 10. Multiple outgoing payment can be created by Payment Wizard. 11. AP Reserve Invoice is Proforma Invoice. 12. Service Purchased can be recorded as service type document or can be used as Item document if defined in Item master 13. If services is entered as Item both Item and service can be recorded in same document 14. If partially delivered PO is not supposed to be delivered further choose Data->close or right click>close 15. If the PO will never be received it should be cancelled. You can cancel an PO that has never been copied fully or partially 16. Cancelled PO is not deleted and can be copied be used for displaying and be duplicated 17. Goods Return is the clearing document for GRPO provided AP Invoice is not created 18. AP credit Memo is the clearing document for AP Invoice 19. Once the goods are returned they cannot be received again with a reference to an existing document. They are either received directly using GRPO without reference to PO or by duplicating one to the preceding document. 20. When Goods Return is created without being refunded to a base document, the value of a moving average item is the current cost calculated for the item and not the unit price entered. 21. AP credit memo is used for returning goods for already invoiced transactions. It updates the stock quantities and correct the values in accounting 22. For service invoice AP Credit memo is used to correct amounts without effecting inventory 23. To show sales and purchase credit analysis separately in P/L Account you should specify different posting accounts for sales revenue and sales credit and similarly for purchase account and purchase credit account. 24. When the related invoice is open you create a credit memo by copying from the original invoice 25. When the related invoice is closed i.e when the Payment is already made you create the credit memo without reference to the invoice. It will reduce the overall balance of the vendor and relevant inventory reversal will occur based on the current value calculated. 26. When you display a invoice, closed status alone does not mean that the invoice has been paid fully. If the payment has been made you should be able to navigate to the payment details

AR Sales
1. AR Process: Sales Quotation -> SO -> Delivery -> A/R Invoice -> Incoming Invoice

Return AR Credit Memo 2. In A/R Process, A/R Invoice is the only mandatory document 3. Inventory Effect and Accounting Effect in various AR scenarios

Transaction Sales Quotation Sales Order Delivery Return Pick list AR Invoice AR Credit Memo Delivery W/o SO AR Invoice with ref. to SO AR Reserve Invoice w/o SO

Inventory Effect Instock Commited Ordered + -

Accounting Effect Available Debit Credit No Acctg Entry No Acctg Entry +

Sales/ AR
4. 5. 6. 7. 8. 9.

+ + +

+ +

Delivery with ref. to AR reserve Invoice Sales order is a commitment from a customer or lead to buy Sales Quotation and Sales order can be posted to lead type Business Partner, however for delivery and other documents in the sales process the Business partner has to be customer. If a Vendor is also a Customer i.e. he both buys and sells to you, you should create two BP master, one in the Vendor category and other in Customer Category The incoming payment receives the payment from the customer and clears the customer account. Internal reconciliation takes place automatically The defaults set for the company are copied into newly created business partner: a. The currency defaults to the companys local currency b. The payment terms are set to the companys default payment terms c. Credit limit and price list are set from the companys default payment terms A sales order could also be created for services as well as for physical terms. If the services are defined as items, they can be entered along with items in an item type order. Otherwise, use Item/Service type field to switch to service type document where descriptions of services can be entered along with prices

10. You can define multiple price list for your items. A price list contains items. Price list can be based on other price list using a percentage mark-up. a. Every item is linked to every price list b. Two of the default price lists are maintained by the system and cannot be maintained/ deleted by users: Last Evaluated Price and Last Purchase Price 11. Purchase order can be created directly from Sales Order, thereby streamlining the supply chain as well as MRP process 12. You can change a sales order (changing quantities, updating prices and discount and so on) after you posted it. This is possible as long as you have made the appropriate setting in the Document settings and there are no deliveries or invoice documents with reference to SO 13. A SO can be cancelled or closed if not needed, but other documents cannot to cancelled. 14. You can activate an automatic availability check for SO; to do this choose Administration -> System Initialization -> Document Settings on the per document tab choose the document Sales Order and select checkbox for Activate Availability check. 15. Item availability check window displays Quantity Ordered: and Quantity Available. Actions in this window include: a. Continue d. Display Quantities in other b. Change to available Quantity Warehouse c. Display Available-to-Promise e. Display Alternative Items Report f. Delete Row g. Change to earliest Availability 16. You can create delivery from sales order or quotation. 17. Like AP process, in AR Process also you can enter next level of Document using Copy to and copy From option 18. Once an A/R invoice is posted, only fields which do not affect the journal entry can be changed 19. Incoming payment is created by choosing Banking-> Incoming Payments -> Incoming Payments a. When you select an invoice with an early payment discount and the payment was received before or on due date, the total amount owed is reduced by discount amount b. Fully paid invoice is closed automatically c. Customer payments can be processed for bank transfers, checks, credit cards, and cash and in some localizations, Bill of Exchange 20. Incoming payment (full or partial) triggers internal reconciliation automatically 21. A/R Invoice + Payment is used for sales to one-time customers a. Customers pays entire amount at once and he does not need documents like SO and Delivery note b. Settings: i. Set Master record for one-time customer Administration -> Setup-> Financials -> G/L Account Determination, choose the sales tab, then choose Default customer for A/R Invoice + Payment ii. Using the default values in the user parameters, you can also assign a separate customer master record to each user for the A/R Invoice + Payment c. Exception: The customer only makes a partial payment

i. In this case you should create a separate customer master record for this customer so that you can monitor the incoming payments d. When you use one-time customer, no master data record is saves in the system. All the details are inside the document. 22. Sales Document and Their Properties Quotation 1. Sales Document must be Created in the System 2. Change/Reverse 3. Sales Document for Correction 4. Reference when added 5. Quantities Posted in Inventory Management Order Delivery A/R Invoice

Returns Quotation Order Quotation A/R Reserve Invoice A/R Credit Memo Delivery Order Quotation

Posts committed quantity

(Goods Issue)

(if no reference to Delivery)

6. Values Posted in the General Ledger 23. A quotation and SO can be changed or canceled after creation however, you can disable it by deselecting the allow changes to Existing Order in Administration -> System Initialisation -> Document Settings, on the per Document tab choose Sales order. 24. Functions in Sales A/R Quotation Order Delivery A/R Invoice 1. Credit Limit Check

2. Gross Profit and Last prices Report 3. Link to Transaction journal 4. Serial Number and Batch Management 5. Activities 6. Create Document Drafts

25. To Display Gross Profit and Last Prices report for each document in document choose Goto -> Gross Profit or choose right mouse click and Goto -> Last Prices or right click on unit price field 26. To display Transactional Journal Report in a document select icon in the menu bar or right click. 27. Serial number and batch management in SO Delivery, and A/R Invoice, however it cannot be assigned in SO 28. Sales analysis provide information on salesby: a. Customers b. Items

29. 30. 31.

32.

33.

c. Sales employees d. A combination of the above Customer Receivable Aging report contains information about the number and amount of number of open receivables, as well as how old the receivable is. For Open Items List choose Sales A/R -> Sales Reports -> Open Items List If you want to manage the inventory of the damaged goods separately from the undamaged foods, you should define a special warehouse for the damaged goods and enter this warehouse in the return document An A/R credit memo with reference to the returns delivery ensures that the system credits the values to the customer. This might be used if the customer returns items and is later invoiced for the returned items. The credit memo can reverse the invoiced amount, but since it is referencing a Return, it will not adjust the inventory amount SAP B1 8.8 allows negative rows on several marketing documents. This allows you to give credits directly on sales order, delivery or invoice a. The sales documents enabled for negative rows are : A/R invoice, A/R Credit Memo, Delivery, and Returns b. The Procurement documents enabled for negative rows are: A/P invoice, A/P Credit memo, GRPO, and Goods Return c. A positive total on a credit memo indicates a credit; therefore a negative amount on an A/R credit memo will indicate that the customer owes us

Inventory
1. Goods Issue and Goods Receipts are used to issue and receive goods to and into warehouses when there is no sales or purchasing process involved e.g. sample receive and issue or scrapping damaged goods 2. Pick and Pack, an optional step in sales cycle, allows you to release some or all items to a pick list, perform a packaging process before performing delivery 3. MRP process steps are: a. Define the planning data to be used in MRP b. Run MRP Wizard c. After MRP runs, the system recommendations for PO and Purchase Order depending upon the product type d. From there you can create PO or Purchase order 4. Drop-Ship warehouse is used when company does not manage inventory for specific items, but receives commission for every order. SAP B1 will not calculate stock-postings for this warehouse a. When adding a sales order, choose the drop ship warehouse in the item line. After adding the sales order the PO confirmation window will open only for the lines where drop ship warehouse was chosen b. When a sales order is added, the system automatically recommends a PO creation. In the confirmation screen, you choose which item to order, the vendor and the prices. When you save, a PO is created in addition to SO.

5.

6. 7.

8.

9.

10. 11. 12.

c. Effect on Inventory: In drop ship warehouse no inventory transaction is posted. Accounting entry that effect the G/L only are posted normally as in normal marketing documents. d. Back-to-Back Orders : if dont keep inventory items in your warehouse, but purchase on an order by order basis you can use this option. To use this option select the checkbox of the Purchase Orders field on the Logistics tab of the sales to automatically create PO for the items of the Sales order. After adding SO, Purchasing Order Confirmation window opens e. Purchasing Order Confirmation i. On the left side all the items from SO are summarized. If the vendor and a warehouse selected, then each vendor line will have a drill down displaying the warehouse. Each warehouse will have its own drill down to display the items include in the sub-grouping ii. The system proposes as default value the vendor (Preferred vendor from Item Master) , Price( according to vendor price list), and the quantity (from order). You may change the proposed values iii. On the right side, the line items are presented by purchase order organized by the user after transferring the line from the left side. One important rule applies to all master date. If a master data record is involved in an accounting or inventory transaction (such as A/P invoice, A/R invoice, Journal Entry and so on), it cannot be deleted. However, items can be marked as inactive if you do not want them to be available for use in Marketing documents Inventory Items can be of , a) Inventory Item, b) Sales Item, c) Purchased Item and d) Fixed Assets. Item Master Data entry window is divided into header section where general information about the item, and into tab area which contains 7 tabs, namely a. General e. Planning Data (used in MRP b. Purchasing Data module) c. Sales Data f. Properties d. Inventory Data g. Remarks Inventory Valuation method available in SAP B1 are FIFO, Standard Price and Moving Average a. Moving average is calculated by dividing the total value of the goods by the amount in stock If perpetual inventory system is not used you can use Inventory Valuation Simulation Report to valuate the entire warehouse inventory on a key date normally on the date Balance sheet is prepared. Default G/L Account can be set at Company Level, Warehouse level, and Item Group level Batches are used to track group of items with characteristics in common Serial no. help you track items down to the level of each individual object in your warehouse, so you know exactly which one was sold to a customer a. Serial no. are used to track items for security or repair reasons b. It is also useful in creating Service contract.

13. Serial No. and Batch no. can be assigned on every transactions or when it is first released a. If on every transactions is used they are assigned when it is bought or manufactured b. If when released is used they are assigned when it is picked for delivery 14. Inventory Offset Decrease/Increase is used to determine the correct revenue account for goods receipt and correct expense account for goods issue. 15. Warehouse reports: item List, Inventory Posting List, Inventory Status Reports, Inventory in Warehouse Report, Inventory Audit Report, and Inventory Simulation Report 16. Pick and pack Status: a. Status Open: Displays all items that are still open and have not been released b. Status Released: displays all pick lists in status released i. Can be viewed in two views Detailed and Summary ii. Quantity Available to Pick = In Stock Picked c. Status Picked: Displays the items that are already picked but not yet delivered d. In the list of picked item choose the Deliver button to create the deliveries. You can create the deliveries also from the open or released list. e. The Deliver or A/R invoice serve as the pack document 17. When Inventory level falls below the minimum qty. as a result of a sales document or goods Issue the options available in Pick and pack Manager are: a. Without Warning b. Warning Only c. Block Release 18. To define Package types for packing use the path : Administration -> setup -> Inventory -> Package Types 19.