SAP BUSINESS ONE Logistics Excercises

Fundamentals-– Exercises

Unit: SAP Business One Basics

Topic: Getting Started

At the conclusion of this exercise, you will be able to:

Log into SAP Business One

Set display parameters

Set up shortcut keys

Create and change a marketing document

Use Drag & Relate

In this exercise, you begin exploring SAP Business One. After logging into the system, you will set display parameters and set up shortcut keys.

You will create and change a purchase order to better understand the features common to all marketing documents. You will use drag and relate to find purchase orders for the vendor.

1-1 You want to work with the SAP Business One.

1-1-1 Log on to the SAP Business One system and choose a database as directed by your instructor.

1-1-2 You would like to work with the SAP Business One system with the language and other display parameters which you prefer.

Choose the language and date format appropriate to your region.

1-1-3 You already know that the transactions for sales orders, purchasing orders, and production orders are the transactions that you will use most often. Assign these transactions to the functions keys F2, F3, and F4.

Field Name or Data Type Values

Shortcut F2

Module Sales – A/R

Window Sales Order


Shortcut F3

Module Purchasing – A/P

Window Purchase Order


Shortcut F4

Module Production

Window Production Order

1-1-4 Create a purchase order for the vendor Lasercom. You would like to search for the vendor by name since you do not know the vendor code.

Enter the following information in the purchase order.


Delivery Date <today’s date>

Item No. C00003

Quantity 5

Item No. C00004

Quantity 10

Note: If the Type indicator does not appear in the rows, add the field using Form Settings.

Add a row with a subtotal for the order.


Type Subtotal

Add two additional items to the order.


Item No. A00005

Quantity 2

Item No. A00006

Quantity 2

Add a text line to the order. And follow that with a second subtotal row.


Row Type Text

Text Editor Any text

Row Type Subtotal

Is it possible to add an alternative item row to the purchase order? ________________________________________________________

Save your purchase order.. Write down your purchase order number: ______________

1-1-5 Find all the purchase orders for Lasercom using Drag&Relate.

Go to the Drag & Relate menu.

Use one these two methods to find the purchase orders.

Option 1: Select Purchase Order. All purchase orders are displayed. Therefore, use the Filter function to select the purchase orders only of the vendor V20000. Option 2: Select Business Partners. All Business Partners display. Drag business partner V20000 to Purchase Order, so you get only purchase orders for the vendor V20000.

1-1-6 Open the first purchase order in the list by choosing the arrow at the beginning of the row.

Open the Last Prices Report window to display the last prices out of documents and special prices.

1-17 Make one or more of the following changes to the purchase order: add a row, delete a row or duplicate a row. Change the item description for one of the items.

In order to group different rows by item, choose Summary Type: By Items (in the top right corner of the Contents tab.). Tip: After changing the item description, select Ctrl+Tab in order to leave the field.

1-1-8 Open the row details for the first item. View the warehouse quantities by navigating to the Whse field and choosing Ctrl + Tab. In stock: ___________ Ordered: __________ Committed: _________

1-1-9 Save the changes to this purchase order (if you haven’t already saved the changes in step 1-1-7).

1-1-10 View the change log to see what the changes have been made to the purchase order.

Fundamentals-Solutions

Unit: SAP Business One Basics

Topic: Getting Started

1-1 You want to work with the SAP Business One. 1-1-1 Log on to the SAP Business One system and choose a database.

a. Start SAP Business One by choosing Start SAP Business One.

b. In the window Welcome to SAP Business One you enter the User Code and Password.

c. You get to the window Choose Company. Choose the appropriate database as directed.

1-1-2 You would like to work with the SAP Business One system with the language and other display parameters which you prefer.

Choose the language and date format appropriate to your region.

Choose Administration System Initialization General Settings. Choose the Display tab and enter your preferences. Choose OK to save your settings.

1-1-3 You already know that the transactions for sales orders, purchasing orders, and production orders are the transactions that you will use most often. Assign these transactions to the functions keys F2, F3, and F4.

Choose Tools My Shortcuts Customize.


Shortcut F2

Module Sales – A/R

Window Sales Order

Choose Allocate.


Shortcut F3

Module Purchasing – A/P

Window Purchase Order

Choose Allocate.


Shortcut F4

Module Production

Window Production Order

Choose Allocate.

Choose OK.

1-1-4 Create a purchase order for the vendor Lasercom. You would like to search for the vendor by name since you do not know the vendor code.

Choose Purchasing – A/P Purchase Order

Use one of the two methods below to search for the vendor Lasercom.

Option 1: Choose the Tab key in the Vendor (Number) field, and the List of Business Partners window opens. Double-click on the BP Name column and enter L into the Find field. The system positions on the first entry beginning with L. Option 2: Enter L* into the (Vendor) Name field, choose the Tab key, and the Choose from List window opens. The system positions directly on the first entry beginning with L and only displays the entries beginning with L.

Enter the following information in the purchase order.


Delivery Date <today’s date>

Item No. C00003

Quantity 5

Item No. C00004

Quantity 10

Note: If the Type indicator does not appear in the rows, choose the Form Settings icon and select Type in the Table Format tab.

Add a row with a subtotal for the order.


Type Subtotal

Add two additional items to the order.


Item No. A00005

Quantity 2

Item No. A00006

Quantity 2

Add a text line to the order. And follow that with a second subtotal row.


Row Type Text

Text Editor Any text

Row Type Subtotal

Is it possible to add an alternative item row to the purchase order? No, alternative item rows are only available in sales quotations.

Save your purchase order by choosing Add. Write down your purchase order number: ______________

1-1-5 Find all the purchase orders for Lasercom using Drag&Relate.

Go to the Drag & Relate menu.

Use one these two methods to find the purchase orders.

Option 1: Select Purchase Order. All purchase orders are displayed. Therefore, use the Filter function to select the purchase orders only of the vendor V20000. Option 2: Select Business Partners. All Business Partners display. Drag business partner V20000 to Purchase Order, so you get only purchase orders for the vendor V20000.

1-1-6 Open the first purchase order in the list by choosing the arrow at the beginning of the row.

Open the Last Prices Report window to display the last prices out of documents and special prices.

Navigate to the price in the first row of your purchase order. Choose Ctrl + Tab or select Last Prices from the context menu for the unit price to open the Last Prices Report.

1-1-7 Make one or more of the following changes to the purchase order: add a row, delete a row or duplicate a row. Change the item description for one of the items.

Data Add Row or Right mouse-click Add Row. Data Delete Row or Right mouse-click Delete Row. Data Duplicate Row or Right mouse-click Duplicate Row In order to group different rows by item, choose Summary Type: By Items (in the top right corner of the Contents tab.).

After changing the item description, select Ctrl+Tab in order to leave the field.

1-1-8 Open the row details by clicking the arrow on the row number of the first item. View the warehouse quantities by navigating to the Whse field and choosing Ctrl + Tab. In stock: ___________ Ordered: __________ Committed: _________

1-1-9 Save the changes to this purchase order (if you haven’t already saved the changes in step 1-1-7). Choose Update.

1-1-10 View the change log to see what the changes have been made to the purchase order. From the menu bar, choose: Tools Change Log.

Purchasing – Exercises

Unit: Purchasing-A/P

Topic: Procurement Process


Perform the steps in purchasing process

Create good receipt POs for partial quantities

View inventory status for items purchased

Discuss the effects of the purchasing documents on inventory and accounting

In this exercise, you create a purchase order for required items. One of the items has never been ordered before, so you create an item master record. When the vendor delivers partial quantities, you create a goods receipt PO. You use the inventory status report to view stock quantities. Later you create a second goods receipt for an additional delivery. When the vendor’s invoice arrives, you enter an A/P invoice and process the vendor payment.

You perform the purchasing process a second time to better understand the effect on inventory and accounting during each step of the process.

1-1 You want to place an order with your vendor, V10000. To do so, you call up the purchase order document and enter the vendor number. You order two units of items C00009, C00010, and C00011.

1-1-1 Enter the following values in the purchase order.


Vendor V10000

Item No. C00009

Quantity 2

Item No. C00010

Quantity 2

Item No. C00011

Quantity 2

Just before you enter a zip drive as a fourth item, you realize that this item does not have a master record, so you create an item master record.

Use the following values for the new item master:


Item No. TA200

Item Description Zip Drive

Enter the information and go back to your purchase order. Enter a price in the Price field in the purchase order.

Do not save the purchase order yet!

1-1-2 Since the goods are often delivered on different dates, you want to display the delivery date column in your item table. The same applies for the warehouse.

Set the delivery date and warehouse fields as active and visible.


1-1-3 What payment terms does the system suggest? How did it determine these?

___________________________________________________________

___________________________________________________________

1-1-4 Add the purchase order.

Purchase Order Number: _____________

Choose OK.

1-2 The delivery for your purchase order has arrived, however it is not exactly what you had ordered. The vendor's delivery document refers to your purchase order number.

Enter a Goods Receipt PO with reference to the purchase order document. Enter the vendor number and display all the open purchase order documents.


Vendor V10000

1-2-1 The vendor did not deliver all the items and quantities. The vendor delivered the full quantity for C00009 and TA200, but delivered only a quantity of 1 for the C00010. C00011 was not delivered by the vendor.

For this reason, copy 3 of the 4 items to your Goods Receipt PO in the Draw Document Wizard and change the quantity of C00010 to 1.

Save your goods receipt document. Goods Receipt Number: _____________

1-2-2 Check the current stock situation of items C00010 - C00011 using the Inventory Status Report within the Inventory Reports. Record the quantities below.

C00010 C00011

In Stock

Committed

Ordered

Available

1-2-3 You receive an additional delivery for the same purchase order. The vendor delivers all the remaining items. Create a goods receipt PO for these items.


Vendor V10000

Add the goods receipt document.

1-2-4 V10000 sends you an invoice for the above deliveries with the invoice number of 00125/40. Enter an A/P invoice in the system to represent the vendor’s request for payment.


Vendor V10000

Vendor Ref. No. 00125/04

1-2-5 Record all the items, referring to the two deliveries when you enter the invoice. Post the invoice to the system. A/P Invoice Number: _____________

1-2-6 Pay the vendor’s invoice.


Code V10000

Post the payment.

2-1 You want to view the effect of each document in the purchasing process on accounting and inventory. You will follow the steps of the purchasing process again from purchase order through A/P invoice.

2-1-1 Create a purchase order for the vendor V20000. You order 5 units of items A00001.


Vendor V20000

Item No. A00001

Quantity 5

Save the purchase order. Purchase Order Number: _____________

2-1-2 You want to first determine which warehouse is the assigned for this item, so that you can then determine the stock level for that warehouse.

2-1-3 Check the stock level currently found in that warehouse.

2-1-4 Leave the purchase order open.

2-2 The items on your purchase order have arrived. You will create a goods receipt PO from the purchase order. When you save the goods receipt PO, you will check the stock level and journal entry to see how this document affects inventory and accounting.

From the open purchase order, create a goods receipt PO.

2-2-1 Check the rows and quantities in the Goods Receipt PO to make sure they match the quantities delivered by the vendor.


Item No. A00001

Quantity 5

Then save the Goods Receipt PO. Goods Receipt Number: _____________

2-2-2 Open the Goods Receipt PO you just created and check the effects of the Goods Receipt PO.

2-2-2-1 View the item master record. Choose the correct tab for to check inventory quantity.

Which column shows the increase caused by the Goods Receipt PO? __________________________________________________ Return to the Goods Receipt PO.

2-2-2-2 View the journal entry to see the effect of the Goods Receipt PO on accounting.

What were the two posting that were created automatically because the system is using perpetual inventory? ___________________________________________________ ___________________________________________________ Return to the Goods receipt PO.

2-3 A vendor invoice for the delivered items arrives. You will create an A/P invoice to pay the vendor. When you save the A/P invoice, you will check the journal entry to see how this document affects accounting.

From the open Goods Receipt PO, create an A/P invoice.

Enter the invoice number (55723-09) and invoice date (yesterday’s date) from the vendors invoice into the appropriate fields.


Vendor Ref. No. 55723-09

Document Date Yesterday’s date

Save the A/P Invoice. A/P Invoice Number: _____________

2-3-1 Open the A/P invoice you just created to view the journal entry.

Fill in the table below based on information in the document:

Values

How much is the vendor invoice?

2-3-1-1 View the journal entry to see the effect of the A/P invoice on accounting. Which field in the journal entry contains the vendor reference number? _______________________________________________ Which account was credited when the Goods Receipt PO was created and is now debited when the A/P Invoice is saved? _________________________________________________

Exercises


Topic: Purchasing Services


Perform the steps to purchase a service with a purchase order

Process vendor invoices for services without a purchase order

In this exercise, you create a purchase order for a web design service. When the services are provided, the vendor sends an invoice. You create an A/P invoice to pay the vendor.

An invoice for electricity arrives from a new utility. You create an A/P invoice for this service. Since the utility is a new vendor, you create a vendor master record.

3-1 You have spoken with your vendor, V23000 about providing web design services. Create a service purchase order document and enter the vendor number. Change the Item/Service Type to Service. Enter a description for the service and choose the appropriate G/L account number for the service. Enter 2000 as the price for the service.

3-1-1 Enter the following information:


Vendor V23000

Item/Service type Service

Service Description Web Design Services

G/L Account Number Use an account such as miscellaneous expenses

Total Price 2000

Add the purchase order. Purchase Order Number: _____________

3-1-2 The services have been provided and you received an invoice from the vendor. The invoice number on the vendor invoice is 187 and the invoice date is yesterday. Create an A/P Invoice to pay for the service received.

Choose the vendor from the list of vendors. Then enter the invoice number in the Vendor Reference Number field. Enter today as the posting date. Change the document date to match the vendor’s invoice date.


Vendor V23000

Vendor Ref. No. 187

Posting Date Today’s date

Document date Yesterday’s date

3-1-3 Which setting should always be verified before copying from a purchase order? Why?

________________________________________________________

________________________________________________________

3-1-4 Copy rows from the purchase order you created earlier.

Note: If you do not find the purchase order on the list, check that Item/Service Type field is set to Service.

3-1-5 Which field in the A/P Invoice should match the total on the vendor invoice?

_________________________________________________________

3-1-6 Save the A/P Invoice. A/P Invoice Number: _____________

4-1 You receive a utility bill from a new energy vendor for the amount of 1255.60 for your main office. Create a non-PO invoice for the utilities.

4-1-1 Create the vendor from the Vendor Code field. Enter the following values:


Vendor Code V29000

Name Southwest Energy

Enter a Pay-to Address of your choice.

4-1-2 For the vendor reference number, create an abbreviation that identifies the invoice to you, such as a combination of month, year and location where the electricity was provided.


Vendor Ref. No MMYY-MainOffice

4-1-3 Enter the current date for the posting date and enter the date from the vendor invoice (the last day of the previous month) for the document date.

4-1-4 Enter information about the service provided in the A/P Invoice.


Description Main Office Power

G/L Account (Utilities account number)

Total (LC) 1255.60

4-1-5 Save the invoice. A/P Invoice Number: _____________

Exercises


Topic: Troubleshooting Issues


Create credit memos with and without reference to an invoice

Use an expedited purchasing process

Manage under-deliveries, over-deliveries and substitute items.

In this exercise, you receive a credit memo for the invoice created in the first exercise in the purchasing unit. You find the invoice and determine whether you should create the document with or without reference to the original invoice.

Secondly, you order some items by phone from a vendor. No purchase order or goods receipt PO is created; instead you create only the A/P invoice.

Lastly, you create a purchase order for some items. Some of the items are being discontinued so the vendor can only send a partial quantity. The vendor also sends too many of another item and a substitute item. You create a goods receipt PO which receives the items delivered. Since you will never receive the quantity originally ordered, close the purchase order after creating the goods receipt PO.

5-1 Vendor V10000 sends you a credit memo for $250 as a credit. The credit memo references the invoice you created in the first purchasing process exercise.

Find the invoice and determine if you should create the A/P Credit Memo document with or without reference to the original invoice.

5-1-1 Switch to Find mode.

Search for the invoice.


Vendor V10000


5-1-2 Can you copy this invoice to create a credit memo?

_____________________________________________________.

5-1-3 Create an A/P Credit Memo to post the credit from the vendor. Choose the price adjustment account from the list of G/L accounts.


Item/Service Type Service

Vendor V10000

Vendor Ref. No. CM00125/04

Service Description Price adjustment

G/L Account (Price difference account number)

Total (LC) 250

Remarks Credit to 00125/04

Add the credit memo. A/P Credit Memo Number: _____________

6-1 You are in a hurry to receive some printers and have arranged a delivery by phone with your vendor V60000. The delivery is made quickly and the vendor has included an invoice with the delivery.

6-1-1 You post the invoice in the system directly (without referring to a purchase order or to a goods receipt PO) with the result that a goods receipt is made in the background. The stock level increases accordingly.


Vendor V60000

Item/Service type Item


Item A00003

Quantity 100

Add the invoice. A/P Invoice Number: _____________

6-1-2 Open the invoice you just created to view the current inventory and the journal entry.

What is the quantity in Whse 01? _____________.. View the journal entries.

Which account gets the credit? _______________ Which account gets the debit? ________________

6-1-3 Return 20 of the 100 items of A00003. Make sure that the system corrects both the values and quantities. Which document should you use and why?

__________________________________________________________

Create a credit memo with reference to the invoice in the system. Credit Memo Number: _____________

6-1-4 Open the credit memo you just created to view the current inventory and the journal entry.

What is the quantity in Whse 01? _____________. View the journal entries. Which account gets the credit? _______________ Which account gets the debit? ________________

7-1 Create a purchase order for vendor V10000. You are ordering three items and the vendor has informed you that some of the items may be out of stock, but you decide to place the order anyway.

7-1-1 Enter a purchase order for three items.


Vendor V10000

Item/Service Type Item

Item C00010

Quantity 5

Item C00009

Quantity 5

Item A00002

Quantity 5


7-1-2 A shipment arrived from vendor 10000 for some of the items that you ordered. The vendor’s shipment is not the same as your original purchase order. The vendor has shipped only 3 of the first item (C00010). Additionally, they have delivered too many of the second item (C00009), 6

keyboards instead of 5. Instead of the third item you ordered (A00002), they have substituted a different printer. After calling the vendor and discussing the differences, you decide to accept the order.

Open the purchase order you just created and create a goods receipt PO for those items.

7-1-3 Create the goods receipt PO.

7-1-4 Change the quantity on the first row to 3.

7-1-5 Change the quantity of the second item to 6.

7-1-6 Delete the third row and add the item you actually received.

Enter the following information into the empty row.


Item No. A00003

Quantity 5

Save the goods receipt PO. Goods Receipt Number: _____________

7-1-7 The vendor sends the remaining quantity of two for the first item (C00010). Open the purchase order you just created to create a second Goods Receipt PO to receive the shipment.

7-1-8 What quantity displays for the first item? Why?

_________________________________________________________

7-1-9 Copy the purchase order to a goods receipt PO.

7-1-10 Which items and quantities display in the Goods Receipt PO and why?

__________________________________________________________

__________________________________________________________

__________________________________________________________

__________________________________________________________

7-1-11 Delete the row with the printers and save the goods receipt PO. Goods Receipt Number: _____________

7-1-12 Change the status of the purchase order to Closed.

Purchasing Solutions


Topic: Procurement Process

1-1 You want to place an order with your vendor, V10000. To do so, you call up the purchase order document and enter the vendor number. You order two units of items C00009, C00010, and C00011.

Choose Purchasing-A/P Purchase Order

1-1-1


Vendor V10000

Item No. C00009

Quantity 2

Item No. C00010

Quantity 2

Item No. C00011

Quantity 2

Just before you enter a zip drive as a fourth item, you realize that this item does not have a master record.

Choose the Tab key in the Item No field to create a new item directly from the purchase order. Choose New and create a new item for the zip drive with item code TA200.


Item No. TA200

Item Description Zip Drive

Enter the above information and go back to your purchase order. Enter a price in the Price field in the purchase order.


1-1-2 Since the goods are often delivered on different dates, you want to display the delivery date column in your item table. The same applies for the warehouse.

Set the delivery date and warehouse fields as active and visible. From the Menu bar, choose the Form Settings icon. On the Table Format tab, select Visible and Active for the fields Del. Date and Whse. Choose OK. Do not save the purchase order yet!

1-1-3 What payment terms does the system suggest? How did it determine these?

The payment terms appear as Net 30 on the Accounting tab.

The system took the payment terms from the business partner master record and defaulted the terms into the document.

1-1-4 Choose Add to save the purchase order.

Purchase Order Number: _____________

1-2 The delivery for your purchase order has arrived, however it is not exactly what you had ordered. The vendor's delivery document refers to your purchase order number.

Enter a Goods Receipt PO with reference to the purchase order document. Choose Purchasing-A/P Goods Receipt PO.

Enter the vendor number and display all the open purchase order documents.


Vendor V10000

Choose Copy from Purchase Orders

Choose the correct document from the list. In the next step, you will adjust the quantities in the Draw Document Wizard.

1-2-1 The vendor did not deliver all the items and quantities. The vendor delivered the full quantity for C00009 and TA200, but delivered only a quantity of 1 for the C00010. C00011 was not delivered by the vendor.

For this reason, copy 3 of the 4 items to your Goods Receipt PO in the Draw Document Wizard: Select the two radio buttons: Use Doc and Row Exchange Rate from Base Document and Customize. Choose Next.

Choose all the delivered items (you can use Ctrl-Click to select individual rows). Change the quantity of C00010 to 1. Choose Finish Check the rows and quantities in the Goods Receipt PO to make sure they match the quantities delivered by the vendor. Then save the Goods Receipt PO by choosing Add. Goods Receipt Number: _____________ Choose Yes.

1-2-2 Check the current stock situation of items C00010 - C00011 using the Inventory Status Report within the Inventory Reports. Record the quantities below.

C00010 C00011

In Stock

Committed

Ordered

Available

Choose Inventory Inventory Reports Inventory Status.

1-2-3 You receive an additional delivery for the same purchase order. The vendor delivers all the remaining items. Create a goods receipt PO for the remaining items.

Purchasing-A/P Goods Receipt PO


Vendor V10000

Choose Copy from Purchase Orders. Choose the correct document from the list. Draw Document Wizard: select Import Exchange Rate from Base Document and Customize. Choose Next. Make sure the remaining items are selected. Choose Finish Choose Add Choose Yes.

1-2-4 V10000 sends you an invoice for the above deliveries with the invoice number of 00125/40.

Enter an A/P invoice in the system to represent the vendor’s request for payment.

Choose Purchasing-A/P A/P Invoice


Vendor V10000


1-2-5 Record all the items, referring to the two deliveries when you enter the invoice.

Choose Copy From Goods Receipt PO. Select the two goods receipt POs with all items. Choose Draw All Data in the Draw Document Wizard. Choose Finish. Enter a posting date and the vendor reference number. Choose Add. A/P Invoice Number: _____________ Choose Yes to accept the system message.

1-2-6 Pay the vendor’s invoice.

Banking Outgoing Payments Outgoing Payments


Code V10000

Select the row with the document number of your invoice.

Choose the Payment Means icon.

Click in the Amount column and press Ctrl-B to bring in the amount.

Choose OK.

Choose Add.

Then choose Add again.

2-1 You want to view the effect of each document in the purchasing process on accounting and inventory.

2-1-1 Create a purchase order for the vendor V20000. You order 5 units of items A00001.



Vendor V20000

Item No. A00001

Quantity 5


Choose Add.

2-1-2 You want to view the warehouse assigned for this item, so that you can determine the stock level in that warehouse.

Look at the warehouse assigned in the Whse field.

2-1-3 You want to view the stock level currently found in that warehouse. Choose the link arrow in the Item No. field to open the item master data record. Choose the Inventory Data tab.

2-1-4 Return to the purchase order and remain on the purchase order window.

2-2 The items on your purchase order have arrived. You will create a goods receipt PO from the purchase order. When you save the goods receipt PO, you will check the stock level and journal entry to see how this document affects inventory and accounting.

From the open purchase order, create a goods receipt PO.

Choose Copy to.

Choose Goods Receipt PO.

2-2-1 Check the rows and quantities in the Goods Receipt PO to make sure they match the quantities delivered by the vendor.


Item No. A00001

Quantity 5

Then save the Goods Receipt PO. Goods Receipt Number: _____________ Choose Add. Confirm the system message. Choose Yes.

2-2-2 Open the Goods Receipt PO you just created and check the effects of the Goods Receipt PO.

Choose the Last Data Record icon.

2-2-2-1 Choose the link arrow in the Item No. field to view the item master record. Choose the correct tab for to check inventory quantity. Choose the Inventory Data tab.

Which column shows the increase caused by the Goods Receipt PO? View the In Stock column quantity. The inventory for this item has increased by 5. Return to the Goods Receipt PO. Choose Cancel.

2-2-2-2 View the journal entry to see the effect of the Goods Receipt PO on accounting.

Choose the Accounting tab. Choose the link arrow next to the Journal Remark field.

What were the two posting that were created automatically because the system is using perpetual inventory? The system automatically creates two postings. A debit to show the increase in inventory quantity and value and a credit for goods received, not yet invoiced to accrue the amount owed to the vendor. Choose Cancel to return to the Goods receipt PO.

2-3 A vendor invoice for the delivered items arrives. You will create an A/P invoice to pay the vendor. When you save the A/P invoice, you will check the journal entry to see how this document affects accounting.

From the open Goods Receipt PO, create an A/P invoice.

Choose Copy to.

Choose A/P Invoice.

Enter the invoice number (55723-09) and invoice date (yesterday’s date) from the vendors invoice into the appropriate fields.


Vendor Ref. No. 55723-09

Document Date Yesterday’s date

Choose Add to save the A/P Invoice. A/P Invoice Number: _____________ Confirm the system message. Choose Yes.

2-3-1 Open the A/P invoice you just created to view the journal entry.

Choose the Last Data Record icon to open the A/P Invoice.

Fill in the table below based on information in the document:

Values

How much is the vendor invoice?

2-3-1-1 View the journal entry to see the effect of the A/P invoice on accounting.

Choose the Accounting tab. Choose the link arrow next to the Journal Remark field.

Which field in the journal entry contains the vendor reference number? The Ref. 2 field contains the vendor reference number. Which account was credited when the Goods Receipt PO was created and is now debited when the A/P Invoice is saved? The Goods Received Not Invoiced account is credited when the Goods Receipt PO is created and debited when the A/P Invoice is created.

Purchasing Purchasing Solutions


Topic: Purchasing Services

3-1 You have spoken with your vendor, V23000 about providing web design services. Create a purchase order document and enter the vendor number. Change the Item/Service Type to Service. Enter a description for the service and choose the appropriate G/L account number for the service. Enter 2000 as the price for the service.


3-1-1


Vendor V23000


Service Description Web Design Services

G/L Account Number Use an account such as miscellaneous expenses

Total Price 2000

Add the purchase order. Purchase Order Number: _____________

3-1-2 The services have been provided and you received an invoice from the vendor. The invoice number on the vendor invoice is 187 and the invoice date is yesterday. Create an A/P Invoice to pay for the service received.

Choose the vendor from the list of vendors. Then enter the invoice number in the Vendor Reference Number field. Enter today as the posting date. Change the document date to match the vendor’s invoice date.



Vendor V23000

Vendor Ref. No. 187


Document date Yesterday’s date

3-1-3 Which setting should always be verified before copying from a purchase order? Why?

The Item/Service Type field setting should be checked to ensure it matches the item/service type on the purchase order. Service must display in the Item/Service Type field in order to copy from service purchase orders. If item is chosen in the Item/Service Type field, you can only copy from item purchase orders.

3-1-4 Copy rows from the purchase order you created earlier.

Choose Copy from.

Choose Purchase Orders.

Choose the appropriate purchase order from the list by double-clicking on the row.

Note: If you do not find the purchase order on the list, check that Item/Service Type field is set to Service.

Accept the default values in the Draw Document Wizard by choosing Finish.

3-1-5 Which field in the A/P Invoice should match the total on the vendor invoice?

The Total Payment Due field should match the total due on the vendor invoice.

3-1-6 Save the A/P Invoice. Choose Add. A/P Invoice Number: _____________ Accept the system message by choosing Yes.

4-1 You receive a utility bill from a new energy vendor for the amount of 1255.60 for your main office. Create a non-PO invoice for the utilities.


4-1-1 Create the vendor from the Vendor Code field. Choose the selection list icon in the Vendor Code field. From the List of Business Partners window, choose New. Enter the following values:


Vendor Code V29000

Name Southwest Energy

Go to the Addresses tab. Enter a Pay-to Address of your choice. Then choose Add. A/P Invoice Number: _____________

4-1-2 For the vendor reference number, create an abbreviation that identifies the invoice to you, such as a combination of month, year and location where the electricity was provided.


Vendor Ref. No MMYY-MainOffice

4-1-3 Enter the current date for the posting date and enter the date from the vendor invoice (the last day of the previous month) for the document date.

4-1-4 Enter information about the service provided in the A/P Invoice. Choose an appropriate G/L account from the list of accounts.


Description Main Office Power

G/L Account (Utilities account number)

Total (LC) 1255.60

4-1-5 Save the invoice. A/P Invoice Number: _____________ Choose Add. Choose Yes.



Topic: Troubleshooting Issues

5-1 Vendor V10000 sends you a credit memo for $250 as a credit. The credit memo references the invoice you created in the first purchasing process exercise.

Find the invoice and determine if you should create the A/P Credit Memo document with or without reference to the original invoice.

Purchasing-A/P A/P Invoice

5-1-1 Switch to Find mode by choosing the Find icon.

Search for the invoice.


Vendor V10000


Choose Find or Enter to begin the search.

5-1-2 Can you copy this invoice to create a credit memo?

No, the invoice status is Closed, therefore you cannot copy the invoice to create a credit memo.

Cancel to close this window.

5-1-3 Create an A/P Credit Memo to post the credit from the vendor. Choose an appropriate G/L account from the list of accounts. Ask the instructor if you are unsure which account to choose.

Purchasing-A/P A/P Credit Memo


Item/Service Type Service

Vendor V10000

Vendor Ref. No. CM00125/04

Service Description Price adjustment

G/L Account (Price difference account number)

Total (LC) 250

Remarks Credit to 00125/04

Add the credit memo. Credit Memo Number: _____________ Confirm the system message with Yes.

6-1 You are in a hurry to receive some printers and have arranged a delivery by phone with your vendor V60000. The delivery is made quickly and the vendor has included an invoice with the delivery.

6-1-1 Choose Purchasing-A/P A/P Invoice. You post the invoice in the system directly (without referring to a purchase order or to a goods receipt PO) with the result that a goods receipt is made in the background. The stock level increases accordingly.


Vendor V60000



Item A00003

Quantity 100

Choose Add. Purchase Order Number: _____________ Choose Yes.

6-1-2 Open the invoice you just created to view the current inventory and the journal entry.

Choose the Last Document icon. Choose the link arrow next to the Item No.field. In the item master, choose the Inventory Data tab. What is the quantity in Whse 01? _____________. Navigate back to the document by choosing OK. Choose the Accounting tab. Choose the link arrow next to the Journal Remarks field. View the journal entries. Which account gets the credit? _______________ Which account gets the debit? ________________

6-1-3 Return 20 of the 100 items of A00003. Make sure that the system corrects both the values and quantities. Which document should you use?

Since an invoice has already been entered, you have to create a credit memo with reference to the invoice in the system. The system clears 20 units from stock and corrects the values in the general ledger. Choose Purchasing-A/P A/P Credit Memo.


Vendor V60000

Choose Copy From A/P Invoices.

Select your invoice and click Choose.

In the Draw Document Wizard:

Select Use Doc and Row Exchange Rate from Base Document and Customize.

Choose Next.

Select item A00003 with a quantity of 20.


Item A00003

Quantity 20

Choose Finish.

Credit Memo Number: _____________

Choose Add and Yes (system message).

6-1-4 Open the credit memo you just created to view the current inventory and the journal entry.

Choose the Last Document icon. Choose the link arrow next to the Item No.field. In the item master, choose the Inventory Data tab. What is the quantity in Whse 01? _____________. Navigate back to the document by choosing OK. Choose the Accounting tab. Choose the link arrow next to the Journal Remarks field. View the journal entries. Which account gets the credit? _______________ Which account gets the debit? ________________

7-1 Create a purchase order for vendor V10000. You are ordering three items and the vendor has informed you that some of the items may be out of stock, but you decide to place the order anyway.

Purchasing-A/P Purchase Order

7-1-1 Enter a purchase order for three items.


Vendor V10000


Item C00010

Quantity 5

Item C00009

Quantity 5

Item A00002

Quantity 5

Choose Add to save the purchase order. Purchase Order Number: _____________

7-1-2 A shipment arrived from vendor 10000 for some of the items that you ordered. The vendor’s shipment is not the same as your original purchase order. The vendor has shipped only 3 of the first item (C00010). Additionally, they have delivered too many of the second item (C00009), 6 keyboards instead of 5. Instead of the third item you ordered (A00002), they have substituted a different printer. After

calling the vendor and discussing the differences, you decide to accept the order.

Open the purchase order you just created and create a goods receipt PO for those items.


7-1-3 Create the goods receipt PO.

Choose Copy to.


7-1-4 Change the quantity on the first row to 3.

7-1-5 Change the quantity of the second item to 6.

7-1-6 Delete the third row and add the item you actually received.

Select the row by clicking on the number 3 to the left of the row.

Right click (to open the context menu).

Choose Delete Row.

Enter the following information into the empty row.


Item No. A00003

Quantity 5

Choose Add. Goods Receipt PO Number: _____________

Choose Yes to accept the system message.

7-1-7 The vendor sends the remaining quantity of two for the first item (C00010). Open the purchase order you just created to create a second Goods Receipt PO to receive the shipment.



7-1-8 What quantity displays for the first item? Why?

The first item still shows a quantity of 5 which is the original quantity ordered in the purchase order. The quantity in the purchase order does not change based on the goods receipt PO. The quantity not yet received displays in the Open Amount field. This field can be added to the form in Form Settings.

7-1-9 Copy the purchase order to a goods receipt PO.

Choose Copy to.


7-1-10 Which items and quantities display in the Goods Receipt PO and why?

Two items display. The first item has a quantity of 2. The system subtracts the quantity of 3 that was received in a previous goods receipt PO. Since this is the correct quantity, you do not need to change the amounts.

The second item is for the printers we ordered that were out of stock. The vendor has sent us an alternate item but because the purchase order row item is still open, this item is automatically copied to the goods receipt PO.

Normally when we receive all items on a purchase order, the system changes the status to Closed. Since this item will never be received, we should close the purchase order after we finish processing this goods receipt PO. Otherwise, the item will continue to display as an open item on inventory reports.

7-1-11 Delete the row with the printers (A00002) and save the goods receipt PO.

Select the row and open the context menu by right clicking. Choose Delete Row. Choose Add to save the goods receipt PO. Goods Receipt PO Number: _____________ Choose Yes.

7-1-12 Change the status of the purchase order to Closed. Use one of the two methods listed below.

Method 1: Navigate to the purchase order from the goods receipt PO you just created. Then close the purchase order.


Choose the Base Document icon.

Choose the menu path Data Close

Choose Yes to confirm the system message.

Method 2: Use the Open Items List to navigate to the purchase order.

Choose Purchasing-A/P Purchasing Reports Open Items List. Choose Purchase Orders in the Open documents dropdown list. Select the correct PO and close it by choosing Data Close from the menu bar or right mouse-click Close. Choose Yes (system message). If you would like to check the resulting stock situation, you can return to the Inventory Status report or display the stock situation for each purchased item in the item master record on the Inventory Data tab.

Questions on Purchasing Concepts

Review Questions

1. What are the 3 main documents used in the purchasing process? 2. What master data must be entered into every purchasing document? 3. What row types are available in the marketing documents used in purchasing? 4. What does the Item/Service Type field control? 5. Which document in the purchasing process is the only mandatory document? Why? 6. What are the advantages of using Copy from? 7. What are the advantages of using Copy to? 8. What is the main purpose of a purchase order? How does it affect inventory reporting? 9. What is the main purpose of the Goods Receipt PO? How does it affect inventory and

accounting? 10. What is the main purpose of the A/P Invoice? How does it affect inventory and

accounting? 11. What happens if you create an A/P Invoice without creating a Goods Receipt PO? How

are the journal entries different for an A/P invoice created without referencing a goods receipt PO compared to an A/P invoice which references a goods receipt PO?

12. Where can you view inventory status information? 13. Which purchasing documents are used for purchasing services? 14. What information must be entered on the row when purchasing services? 15. What documents are used to correct issues in the purchasing process? 16. Give an example of when you would use each of these documents. 17. What are examples of reports used in purchasing?

“Extend your knowledge” discussion questions:

1. How should you create your purchase order if you want to purchase both a service and related non-inventory items?

2. How would this be different from a situation where you planned to purchase a capital item with a service contract?

3. What procurement process steps would you suggest be used for a company that typically purchases all items on the internet or by phone?

4. How can an A/P clerk research if a goods receipt PO has already been created when he receives a bill from the vendor?

5. What happens if you forget to reference a purchase order when creating a goods receipt PO?

6. What are possible options to correct a situation where someone enters a goods receipt for the wrong purchase order?

7. What is the best way to deal with a situation where you need to return items to a vendor even though you’ve already paid the vendor for those items?

8. What happens in the system if the vendor invoice has a different price than that on the purchase order?

Exercises

Unit: Sales – A/R

Topic: Business Partners


Create a customer group

Create business partners

In this exercise, you create a customer group for small customers. You create customer master records for domestic and foreign customers. You create a lead master data record and then convert it to a customer master record.

1-1 Define customer groups

1-1-1 Create customer groups

Create two new customer groups: one for schools and one for small customers.


Group Name Schools

Group Name Small Customers

1-2 Create customer master records

1-2-1 Create a domestic customer Create a new customer with the following values.


Code C2001

BP Type Customer

Name Laurel School

Group Schools

Tel 1 <Any>

Sales Employee <Any you choose>

Enter the bill-to address.


Address Name Main Office

Street / P.O. Box <Any>

City <Any>

Zip Code <Any>

Country <Domestic>

Default Tax Code <Any>

Enter the ship-to address.


Name Receiving


City <Any>

Zip Code <Any>

Country <Domestic>

Default Tax Code <Any>

Enter payment terms and credit limit.


Payment Terms 2P10Net30

Credit Limit 10000

Add the data record.

1-2-2 Create a foreign customer

If your customer's currency has not already been defined, create it now. Choose Administration Setup Financials Currencies.

Create a customer master record for a new small customer.


Code C2002

BP Type Customer

Name Richard Body

Group Small Customers

Currency <Customer's currency>




City <Any>

Zip Code <Any>

Country <A neighboring country>

Add the data record.

1-3 Create a lead and convert it to a customer

1-3-1 Create a lead Create a lead for a small business with the following information.


Code L108

BP Type Lead

Name Coffee and Copies


Currency <Your local currency>




City <Any>

Zip Code <Any>

Country <Domestic>

Enter the ship-to address.


Name Ship To


City <Any>

Zip Code <Any>

Country <Domestic> Add the data record.

1-3-2 Attempt to create a delivery for a lead Choose Sales A/R Delivery Choose the Selection List icon in the customer field to see a list of customers.

Does Coffee and Copies appear on the list?

_______________________________________________________

1-3-3 Convert the lead to a customer. Change to search mode and search for the lead.


Code L108

Change the Business Partner Type to Customer. Change the lead’s code to conform with naming conventions for our customers.


Code C3308 Save your changes.

1-3-4 Create the delivery for the customer .


Customer C3308

Item No. C00001

Quantity 1 Add the delivery.

Purchasing – Exercises

Unit: Sales – A/R

Topic: Sales Process


Perform the steps of the sales process

Discuss sales documents’ effects on inventory and accounting

Run the open items list

In this exercise, you create a sales order for one of the customer master records you just created. Then you change the sales order to accommodate customer requests. You deliver the items to the customer then create an A/R invoice for the delivery. When the customer pays your company, you create the incoming payment document.

Later, you perform each step of the sales process again while viewing the effects of each document on inventory and accounting.

2-1 Follow the steps of the sales process.

2-1-1 Create a sales order for your new domestic customer, Laurel School. Laurel School has just called to place an order for a motherboard and five network cards.


Customer C2001

Delivery Date <2 days from today>

Item No. C00001

Quantity 1

Item No. C00006

Quantity 5

Do not save the sales order yet.

2-1-2 The purchaser from the school asked if the school receives a 2% discount for paying within 10 days. Check if the payment terms are correct.

Review the payment terms and adjust if necessary.

Sales order number: ___________________________

Save the sales order.

2-2 Change a sales order.

2-2-1 The customer calls you to make some changes to the sales order that you just entered. Open the sales order you just created.

Increase the first quantity to 10.

The customer tells you that he had been promised a 1% discount on the whole sales order. Enter a 1% discount for the order total.


Discount 1

2-3 Create a delivery for your sales order.

2-3-1 Open the sales order you just created to create a delivery with the Copy to function.

2-3-2 Copy all the items from the sales order to a delivery.

Save the delivery.

2-4 Create an A/R invoice for your delivery.

2-4-1 From the delivery, copy the items to an A/R invoice.

Save the invoice.

A/R invoice number: ___________________________

2-5 Laurel Schools sent a payment for the delivery using a bank transfer. Create an incoming payment for the A/R invoice.

2-5-1 Open the incoming payments window.


Code C2001

Select the A/R invoice.


Enter the following information in the appropriate tab.


G/L Account number < Use 161022 for the UK, if using another localization then the instructor will provide>

Transfer Date < today’s date>

Reference 79773528

Total Press CTRL + B to copy the total

Save the document.

2-6 Track the effect of each step in the sales process beginning with the sales order.

2-6-1 Create a sales order for a customer and view the effect on inventory.


Customer C23900

Delivery Date < today>

Item No. A00002

Quantity 10

Save the order.


2-6-2 Open the sales order you just created.

View the details for the row. Which warehouse is assigned to the first row?

_______________________________________________________

Return to the sales order. Open the item master record. How many printers are in stock? ____________________ How many printers are committed? ______________________ Choose Cancel to return to the sales order._________________

2-7 View the open items list.

2-7-1 Run the Open Items List for sales orders. Look for your sales order and item.

2-8 Create a delivery and view the effect of the delivery.

2-8-1 Open the sales order you just created and copy the items to a delivery document.

Add the delivery.

Delivery number: ___________________________

2-8-2 Retrieve the delivery you just created to view the effect of the delivery on inventory.

Open the item master record to find the following information.

How many printers are in stock? ____________________ How many printers are committed? ______________________

Return to the delivery.

2-8-3 View the effect of the delivery on accounting.

Open the journal entry. What are the two postings made by the delivery document?

_______________________________________________

_______________________________________________

2-9 Create the A/R invoice and view the accounting effects.

2-9-1 From the delivery document, create an A/R invoice.

Add the invoice.

A/R Invoice number: ___________________________

View the journal entry. What type of postings is made to indicate the customer owes us money: debit or credit?

_______________________________________________

What type of posting is made to record sales revenues: debit or credit?

_______________________________________________

2-9-2 As you saw in the journal entry, no changes to inventory were recorded when you created the A/R invoice. When would an A/R invoice record changes to inventory?

_______________________________________________

_______________________________________________

_______________________________________________

Exercises

Unit: Sales – A/R

Topic: Sales Process - Item Availability Check


Ensure the item availability check is activated for sales orders

Set up an alternative item

Perform an item availability check in a sales order

Display the available-to-promise report

In this exercise, you review how the item availability check is activated for sales orders. You create two new items and set one as an alternative for the other. You create a sales order and perform the item availability check and explore the options available within the sales order.

3-1 How does the automatic availability check work?

3-1-1 How can you activate the automatic availability check for sales orders?

___________________________________________________________

3-1-2 Make sure that the automatic availability check for sales orders is activated in your SAP Business One training system.

3-2 You have two new items. Create the item master records and enter the quantities which are already available. 3-2-1 Create the item master record with the following values.


Item Number A2010

Description Fast Sheet Feed Scanner

Item Group Scanners

(if the item group does not exist, use the Define New function)

Price List Base Price

Unit Price 200

3-2-2 Post the goods receipt for a quantity of 5.


Item Number A2010

Quantity 5

Price List Last Purchase Price

Price 200

3-2-3 Create the second item master record.


Item Number A2020

Description USB Interface Ultra Scanner

Item Group Scanners

Price 150

3-2-4 Post the goods receipt.


Vendor V10000

Item Number A2020

Quantity 20

Price 150

3-3 You want to sell the USB Interface Ultra Scanner as an alternative item to the fast sheet fed scanner.

3-3-1 Define the item A2020 as the alternative item of item A2010.


Item Number A2010

Item Number A2020

Remarks Alternative scanner

3-4 Customer C20000 orders scanners.

3-4-1 Create the sales order.


Customer C20000

Delivery Date Today’s date

Item Number A2010

Quantity 7

The Item Availability Check window comes up automatically when you move out of the Quantity field.

3-4-2 Look at the option Display Quantities in Other Warehouses from the Availability Check window.

3-4-3 Choose Display Available-to-Promise Report from the Availability Check window. Will new stock arrive in the warehouse soon?

_________________________________________________________

Choose Display Alternative Items from the Availability Check window. How many pieces of the alternative item A2020 are available? _________________________________________________________

3-4-4 Choose Change To Available Quantity from the Availability Check window.

3-4-5 Add the alternative item to the sales order with a quantity of 2.


Item Number A2020

Quantity 2


Exercises

Unit: Sales – A/R

Topic: Sales Process – Optional Exercises


Describe how default customers are assigned

Create an A/R Invoice + Payment document

In this exercise, you will create an A/R Invoice + Payment. First you will explore where the default customer is set up for the transaction and how a default customer can be set by user. Then you will create an A/R Invoice + Payment and review the payment options available.

4-1 Some of your customers purchase their goods directly from the warehouse and pay immediately.

4-1-1 Call up the relevant transaction. Which customer number displays by default, and where is this defined?

Choose Sales-A/R A/R Invoice + Payment. The system automatically proposes the customer C9999 (Default Customer for A/R Invoice + Payment).

You would like to view why this customer number is the default. Go to Administration Setup Financials G/L Account Determination. Choose the Sales tab, then the General sub-tab. See the field Default Customer for A/R Invoice and Payment.

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 transaction. Choose Administration Setup General Users Choose the dropdown in the Defaults field. To add a default, you would choose New.

4-1-2 Return to the sales document you were creating. Add an item (for example A00003) and item quantity. Choose Add to save the document. What does the system prompt you to enter?

You have to enter the customer's payment means to save this transaction.

4-1-3 What payment options are available?

The options available are Check, Bank Transfer, Credit Card and Cash.

4-1-4 Save the transaction as a cash payment.

Choose Add or choose the Payment Means icon. The Payment Means window opens. In the Payment Means window, choose the Cash tab. Choose the Total field. Press CTRL and B in the Total field. Choose OK to close the Payment Means window. In the A/R invoice window, choose Add. Confirm the system message.

Exercises

Unit: Sales – A/R

Topic: Returns, Credit Memos and Negative Rows


Create correction documents for common situations in the sales process

Perform an exchange of items on an A/R invoice using negative rows

In this exercise, you create a sales order for a customer. When the order is delivered, the customer notifies you that one of the items was damaged in transit, so you create a Return document. After the delivery is invoiced, the customer informs you that one of the items is not working properly. Therefore you create a credit memo to return the item. Later on the customer realizes that they need to exchange one item for a different item. You then create an A/R invoice with positive and negative rows to perform the exchange.

5-1 Create a sales order for a customer.



Customer C42000


Items C00008

C00009

C00010

I00005

Quantity 5 of each



5-1-2 Deliver the sales order. Delivery number: ___________________________

5-1-3 The customer tells you that item C00009 was damaged in transit and would like to return the quantity of 5 that they received. Create a Return document.

In the Remarks field, enter a note about why the customer returned the items. Save the Return document. Return Document Number: ___________________________

5-1-4 Invoice the sales order.

Add the invoice. A/R invoice number: ___________________________

5-1-5 The customer is displeased with how item C00010 is working and they would like to return it. Create a credit memo to return the items.

In the Remarks field, add a note about why the customer returned the items. Save the credit memo document. Credit Memo number: ___________________________

5-1-6 The customer has realized that they need a different type of battery. They would like to exchange the item I00005 for item I00006. Complete the exchange using only one document.

Enter the following information:


Due Date Today’s date

Customer Reference No. <Your original invoice number>

Item1 I00005

Quantity -5

Item2 I00006

Quantity 5

Remarks Customer is exchanging batteries from invoice <number from invoice you created>

Save the A/R invoice. A/R invoice number: ___________________________

Business Partners - Solutions

Unit: Sales – A/R

Topic: Business Partners

1-1 Define customer groups

1-1-1 Create customer groups Choose Administration Setup Business Partners Customer Groups.


Group Name Schools

Group Name Small Customers

Choose Update.

Then choose OK to close the window.

1-2 Create customer master records

To go to add mode, use the key combination Ctrl + A or choose Data Add or choose the Add button in the toolbar

1-2-1 Create a domestic customer Choose Business Partners Business Partner Master Data. Change to add mode.


Code C2001

BP Type Customer

Name Laurel School

Group Schools

Tel 1 <Any>

Sales Employee <Any you choose>

Choose the Addresses tab page.

To enter the bill-to address, choose Define New (under Bill to).


Address Name Main Office


City <Any>

Zip Code <Any>

Country <Domestic>

Default Tax Code (if needed in your localization)

(This field is not used in the UK)

To enter the ship-to address, choose Define New (under Ship to).


Name Receiving


City <Any>

Zip Code <Any>

Country <Domestic>

Default Tax Code (if needed in your localization)

(This field is not used in the UK)

Choose the Payment Terms tab page.


Payment Terms 2P10Net30

Credit Limit 10000

Choose Add to save the data record.

1-2-2 Create foreign customer

If your customer's currency has not already been defined, create it now. Choose Administration Setup Financials Currencies.

Choose Business Partners Business Partner Master Data. Change to add mode.


Code C2002

BP Type Customer

Name Richard Body


Currency <Customer's currency>


To enter the bill-to address, choose Bill To.



City <Any>

Zip Code <Any>

Country <A neighboring country>

Choose OK to confirm the message: Change accounts receivable/payable? Enter data in the other fields. Choose Add to save the data record.

1-3 Create a lead and convert it to a customer

1-3-1 Create a lead Choose Business Partners Business Partner Master Data. Change to add mode.


Code L108

BP Type Lead

Name Coffee and Copies




To enter the bill-to address, choose Define New (under Bill to).



City <Any>

Zip Code <Any>

Country <Domestic>

To enter the ship-to address, choose Define New (under Ship to).


Name Ship To


City <Any>

Zip Code <Any>

Country <Domestic> Enter data in any other fields you choose. Choose Add to save the data record.

1-3-2 Attempt to create a delivery for a lead Choose Sales A/R Delivery Choose the Selection List icon in the customer field to see a list of customers.

Does Coffee and Copies appear on the list?

No. Because Coffee and Copies is a lead, it is not possible to create a delivery. You must convert Coffee and Copies to a customer in order to create a delivery.

1-3-3 Convert the lead to a customer. Choose Business Partners Business Partner Master Data Change to search mode and search for the lead.


Code L108

Enter the code value in the Code field and choose Find.

Change the Business Partner Type to Customer.

Change the lead’s code to conform with our naming conventions for customers.


Code C3308 Save your changes. Choose Update. Choose OK.

1-3-4 Create the delivery for the customer Choose Sales A/R Delivery .


Customer C3308

Item No. C00001

Quantity 1

Choose Add to save the delivery. Choose Yes to confirm the system message.

usiness Partners - Solution

Unit: Sales – A/R

Topic: Sales Process

2-1 Follow the steps of the sales process.

2-1-1 Create a sales order for your new domestic customer, Laurel School. Laurel School has just called to place an order for a motherboard and five network cards.

Choose Sales A/R Sales Order.


Customer C2001

Delivery Date <2 days from today>

Item No. C00001

Quantity 1

Item No. C00006

Quantity 5

Do not save the sales order yet.

2-1-2 The purchaser from the school asked if the school receives a 2% discount for paying within 10 days. Check if the payment terms are correct.

Choose the Accounting tab.

Review the payment terms and adjust if necessary.

Choose Add to save the sales order.


Choose Add to save the sales order.

2-2 Change a sales order.

2-2-1 The customer calls you to make some changes to the sales order that you just entered.

Choose Sales – A/R Sales Order

Open the sales order you just created.

Either choose the Last Data Record icon or use Find mode to search for the document by number or customer name.

Increase the first quantity to 10.

The customer tells you that he had been promised a 1% discount on the whole sales order. Enter a 1% discount for the order total.


Discount 1

Choose Update to save your changes. Choose OK.

2-3 Create a delivery for your sales order.

2-3-1 Open the sales order you just created to create a delivery with the Copy to function. Choose Sales – A/R Sales Order . Choose the Last Data Record icon.

2-3-2 Copy all the items from the sales order to a delivery.

Choose the button Copy to.

Choose Delivery.

Delivery number: ___________________________

Choose Add to save the delivery.

Confirm the system message by choosing Yes.

2-4 Create an A/R invoice for your delivery.

2-4-1 From the delivery, you will copy the items to an A/R invoice.

If you have closed the delivery, re-open the delivery. Choose Sales – A/R Delivery. Choose the Last Data Record icon.

In the delivery document, choose Copy to.

Choose A/R invoice.

Choose Add to save the invoice.

A/R invoice number: ___________________________

Confirm the system message by choosing Yes.

2-5 Laurel Schools sent a payment for the delivery using a bank transfer. Create an incoming payment for the A/R invoice.

2-5-1 Open the incoming payments window.

Choose Banking Incoming Payments Incoming Payments.


Code C2001

Select the A/R invoice. Mark the selection box in the Selected column.


Choose the tab Bank Transfer.

Enter the following information.


G/L Account number < Use 161022 for the UK, if using another localization then the instructor will provide>

Transfer Date < today’s date>

Reference 79773528

Total Press CTRL + B to copy the total

Choose OK.

Choose Add to save the document.

Choose Add.

2-6 Track the effect of each step in the sales process beginning with the sales order.

2-6-1 Create a sales order for a customer and view the effect on inventory. Choose Sales A/R Sales Order.


Customer C23900

Delivery Date < today>

Item No. A00002

Quantity 10

Choose Add to save the order.



Choose Last Data Record.

View the details for the row. Double-click on Row 1. Which warehouse is assigned to the first row?

_______________________________________________________

Close the window to return to the sales order.

Open the item master record. Choose the link arrow to next to the Item No. field.

Choose the Inventory Data tab.

How many printers are in stock? ____________________ How many printers are committed? ______________________ Choose Cancel to return to the sales order._________________

2-7 View the open items list.

2-7-1 Choose Sales A/R Sales Reports Open Items List. Choose Sales Orders in the dropdown list for open documents.

Look for your sales order and item.

Choose OK to close the Open Items list.

2-8 Create a delivery and view the effect of the delivery.



Choose Copy to.

Choose Add to save the delivery.

Delivery number: ___________________________

Confirm that you want to save the delivery by choosing Yes.

2-8-2 Retrieve the delivery you just created to view the effect of the delivery on inventory.


Open the item master record by choosing the link arrow next to the Item No. field.

Choose the Inventory Data tab.

How many printers are in stock? ____________________ How many printers are committed? ______________________

Choose Cancel to return to the delivery.

2-8-3 View the effect of the delivery on accounting.


Open the journal entry. Choose the link arrow next to the Journal Remarks field.

What are the two postings made by the delivery document?

_______________________________________________

_______________________________________________

Choose Cancel to return to the delivery.

2-9 Create the A/R invoice and view the accounting effects.

2-9-1 From the delivery document, choose Copy to.

Choose A/R Invoice.

Choose Add to save the invoice.

Confirm the system message to save the invoice.

A/R Invoice number: ___________________________

Re-open the invoice you created with the Last Data Record icon.



What type of postings is made to indicate the customer owes us money: debit or credit? A debit posting is made to the customer account.

What type of posting is made to record sales revenues: debit or credit? A credit posting is made for sales revenue.

Close all open windows.

2-9-2 As you saw in the journal entry, no changes to inventory were recorded when you created the A/R invoice. When would an A/R invoice record changes to inventory?

If there is no preceding delivery document, the A/R invoice records the changes to inventory quantity. Additionally, if you are running perpetual inventory, the A/R invoice records the changes to inventory value in the resulting journal entry.

usiness Partners Solution

Unit: Sales-A/R

Topic: Sales Process - Item Availability Check

3-1 How does the automatic availability check work?

3-1-1 How can you activate the automatic availability check for sales orders?

You activate the automatic availability check for sales orders in Administration System Initialization Document Settings.

3-1-2 Make sure that the automatic availability check for sales orders is activated in your SAP Business One training system.

Choose Administration System Initialization Document Settings. Select the Per Document tab. Choose the Document Sales Order and make sure that the checkbox for Activate Automatic Availability Check has been chosen.

3-2 You have two new items. Create the item master records and enter the quantities which are already available. 3-2-1 Create the item master record.

Choose Inventory Item Master Data

Make sure you are in Add mode.

When you enter the following values, confirm the system message to update item information according to the item group chosen.


Item Number A2010

Description Fast Sheet Feed Scanner

Item Group Scanners

(if the item group does not exist, use the Define New function)


Unit Price 200

Choose Add.

3-2-2 You have 5 of the item in stock. Post the goods receipt with the following information.

Choose Inventory Inventory Transactions Goods Receipt


Item Number A2010

Quantity 5


Price 200

Choose Add. Confirm the system message.

3-2-3 Create the second item master record.


Tip: Make sure you are in Add mode.



Item Number A2020

Description USB Interface Ultra Scanner

Item Group Scanners

Price 150

Choose Add.

3-2-4 Post the goods receipt.

Choose Purchasing Goods Receipt PO


Vendor V10000

Item Number A2020

Quantity 20

Price 150


3-3 You want to sell the USB Interface Ultra Scanner as an alternative item to the fast sheet fed scanner. 3-3-1 Define the item A2020 as the alternative item of item A2010.

Choose Inventory Item Management Alternative Items


Item Number A2010

Item Number A2020

Remarks Alternative scanner

Choose Add and then OK..

3-4 Your customer orders scanners.

3-4-1 Create the sales order. Choose Sales - A/R Sales Order


Customer C20000


Item Number A2010

Quantity 7

The Item Availability Check window comes up automatically when you move out of the Quantity field.

3-4-2 Choose Display Quantities in Other Warehouses from the Availability Check window. There is nothing in other warehouses of item A2010 available, so choose Cancel.

3-4-3 Choose Display Available-to-Promise Report from the Availability Check window. There are currently no purchase orders or production orders for this item. Choose OK.

3-4-4 Choose Display Alternative Items from the Availability Check window. There are 20 pieces of the alternative item A2020 available. Choose Cancel to close this window.

3-4-5 Choose Change To Available Quantity from the Availability Check window. Choose OK.

3-4-6 Add the alternative item to the sales order with a quantity of 2.


Item Number A2020

Quantity 2

Choose Add.

usiness Partners Solutions

Unit: Sales-A/R

Topic: Sales Process – Optional Exercises

4-1 Some of your customers purchase their goods directly from the warehouse and pay immediately.

4-1-1 Call up the relevant transaction. Which customer number displays by default, and where is this defined?

Choose Sales-A/R A/R Invoice + Payment. The system automatically proposes the customer C9999 (Default Customer for A/R Invoice + Payment).

You would like to view why this customer number is the default. Go to Administration Setup Financials G/L Account Determination. Choose the Sales tab, then the General sub-tab. See the field Default Customer for A/R Invoice and Payment.

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 transaction. Choose Administration Setup General Users Choose the dropdown in the Defaults field. To add a default, you would choose New.

4-1-2 Return to the sales document you were creating. Add an item (for example A00003) and item quantity. Choose Add to save the document. What does the system prompt you to enter?

You have to enter the customer's payment means to save this transaction.

4-1-3 What payment options are available?

The options available are Check, Bank Transfer, Credit Card and Cash.

4-1-4 Save the transaction as a cash payment.

Choose Add or choose the Payment Means icon. The Payment Means window opens. In the Payment Means window, choose the Cash tab. Choose the Total field. Press CTRL and B in the Total field. Choose OK to close the Payment Means window. In the A/R invoice window, choose Add. Confirm the system message.

usiness Partners - Solutions

Unit: Sales-A/R

Topic: Returns, Credit Memos and Negative Rows

5-1 Create a sales order for a customer. Choose Sales-A/R Sales Order.



Customer C42000


Items C00008

C00009

C00010

I00005

Quantity 5 of each

Choose Add to save the order.


5-1-2 Deliver the sales order. Choose Sales-A/R Delivery. Enter customer C42000. Choose Copy from.

Choose Sales Orders. Choose the sales order you just created from the list. Choose Draw all Data and accept the defaults in for copying exchange rates in the Draw Document Wizard. Choose Finish. Choose Add to save the delivery. Delivery number: ___________________________ Confirm the system message.

5-1-3 The customer tells you that item C00009 was damaged in transit and would like to return the quantity of 5 that they received. Create a Return document.

Choose Sales-A/R Returns Enter customer C42000. Choose Copy from.

Choose Deliveries. Choose the delivery from the list. In the Draw Document Wizard, select Customize. Choose Next. Select only C00009. Choose Finish. In the Remarks field, enter a note about why the customer returned the items. Save the Return document by choosing Add. Return Document Number: ___________________________ Confirm the system message with Yes.

5-1-4 Invoice the sales order.

Choose Sales-A/R A/R Invoice. Enter Customer number C42000. If you receive any messages about credit limit, confirm the messages. Choose Copy from. Choose Deliveries. Choose the delivery you just created. Choose Draw all Data in the Draw Document Wizard. Choose Add to save the invoice. A/R invoice number: ___________________________ Confirm the system message with Yes.

5-1-5 The customer is displeased with how item C00010 is working and they would like to return it. Create a credit memo to return the items.

Choose Sales-A/R A/R Credit Memo Enter customer C42000. Choose Copy from. Choose A/R Invoices. Choose the A/R invoice you just created from the list. In the Draw Document Wizard, select Customize. Choose Next. Select only C00010. Choose Finish. In the Remarks field, add a note about why the customer returned the items. Save the credit memo document by choosing Add. Credit Memo number: ___________________________ Choose Yes to confirm the system message.

5-1-6 The customer has realized that they need a different type of battery. They would like to exchange the item I00005 for item I00006. Complete the exchange using only one document.

Choose Sales-A/R A/R Invoice. Enter customer C42000. If you receive messages about credit limit, confirm the messages.




Customer Reference No. <Your original invoice number>

Item1 I00005

Quantity -5

Item2 I00006

Quantity 5

Remarks Customer is exchanging batteries from invoice <number from invoice you created>

Save the A/R invoice by choosing Add. A/R invoice number: ___________________________ Choose Yes twice to confirm both system messages.

Questions on Sales-A/R Concepts

Review Questions

1. What are the main documents used in the sales process? 2. What master data must be entered into every sales document? 3. Which document in the sales process is the only mandatory document and why? 4. What are the differences between a lead and a customer? 5. What is the main purpose of a sales order? How does it affect inventory reporting? 6. How does a price list get assigned to a sales order? 7. Which options are available in Item Availability checks? 8. What is the main purpose of the Delivery? How does it affect inventory and accounting? 9. What is the main purpose of the A/R Invoice? How does it affect inventory and

accounting? 10. Name two useful reports for sales. What are the advantages of each? 11. What is the document generation wizard and how is it used? 12. What is the purpose of the A/R Invoice + Payment document? 13. What documents are used to correct issues in the sales process? 14. How do you decide between these documents? 15. What are some uses for using negative rows in an invoice?

“


1. How would handle a request from a customer to deliver items to a different location than the one associated with their business partner master?

2. What are some methods you can use to consolidate deliveries for a customer? 3. What are possible options to correct a situation where someone enters an A/R invoice for

the wrong delivery? 4. What is the best way to deal with a situation where your customer returns items even

though they have already paid you for those items? 5. If you create an invoice with both positive and negative rows and then discover you have

made an error, which document would be used to correct the error? 6. You are consulting for a business who sells home blood sugar testing kits in drugstores.

Most of their customers are large pharmacies which are set up as business partners. However, sometimes the end customers have a test result that causes them to send the results back to the vendor for further analysis. In those cases, this customer will only deal with them once and there is limited or no cost involved. What documents and master data should they use for this type of customer?


Unit: Inventory

Topic: Setting up Inventory: Items and Warehouses


Name which values are defaulted from item groups into the item master

Create item master records

Customize search windows for items

In this exercise, you review the default settings in the item group for scanners. You create item master records for two scanners. You customize settings for the list of items.

.

1-1 Check if an item group has been defined for scanners. If the item group has not been defined for scanners, create an item group now.

Which default values for items are set at the item group level?

___________________________________________________________

1-2 Create item master records.

1-2-1 Create the item Photo Scanner.


Item Number A2000

Description Photo Scanner

Item Group Scanner

Choose Base Price List 60

Inventory Item Set indicator

Sales Item Set indicator

Purchased Item Set indicator

Choose the Purchasing Data tab page.


Preferred Vendor V10000

Length 18

Width 10

Height 4.5

Weight 3kg

1-2-2 Create the item Digital Flatbed Scanner.


Item Number A2001

Description Digital Flatbed Scanner

Item Grouping Scanners

Choose Base Price list 80







Length 14

Width 19

Height 6

Weight 5kg

1-3 Find item master records and work with the List of Items function.

1-3-1 Choose Item Master Data. In the Item Number field, type in A and choose Enter or Find. Which item master records do you find?

___________________________________________________________

1-3-2 Customize the window List of Items. Into the first free row, enter the Field Name Item Group by using the dropdown list, for the Displayed Name, type in, for example, Group. Check the box in the Group column and choose Update and OK. Cancel the List of Items, and start the search again by using Find. The List of Items window opens again, but is now grouped by the item group. You can expand one group by clicking + icon or you can choose Expand All to view all the groups.

1-3-3 True or False: The changes to the List of Items function are applicable for all users?

________________________________________________

1-3-4 Restore the original settings in the List of Items window.

undamentals-– Exercises

Unit: Inventory

Topic: Setting up Inventory – Batches and Serial Numbers


Create an item managed by batches

Create batches for items received into stock

Create an item managed by serial numbers

Automatically create serial numbers according to a pattern

Sell and deliver a serialized and batch-managed items

Run the serial number transaction report

In this exercise, you create items managed by both batches and serial numbers. You receive the items into inventory. Then you sell both items and deliver them to the customer. Afterwards, you run the serial number transaction report to see transactions for your newly created serial numbered items.

.

2-1 Create an item managed by batches.

2-1-1 Enter the following data in the item master data window.


Item No. DPC44

Item Description Printer Cartridge, Black Ink

Unit Price (Base Price Pricelist)

10

Manage Item By Batches

Management Method On Every Transaction

2-2 Create an item managed by serial numbers.

2-2-1 Enter the following information for the new item.


Item No. K2000

Item Description Laptop Computer


700

Manage Item By Serial Number


2-3 Receive the vendor’s delivery of the batch-managed and serialized items into inventory.

2-3-1 Create a goods receipt PO to receive the two items.


Vendor V1010

Item No. K2000

Quantity 5

Item No. DPC44

Quantity 150

Use the context menu to navigate to the Serial Number Setup window.

Create serial numbers by automatic creation for item K2000. The serial numbers should run from K2-000001 through K2-000005. Use the browse button for the serial number field.


String K2-

Type String

Operator No Oper.

String 000001

Type Number

Operator Increase

You will see the newly created serial numbers listed in the Serial Numbers – Setup window.

In the Serial Numbers - Setup window, enter this additional information.


Manufacturing Date <2 weeks ago>

Mfr. Warranty Start <today>

Mfr. Warranty End <year from today>

Now it is time to enter the batch information for the second row in the Batches Setup window.

Add two fields to the created batches section of the report using Form Settings.


Batch Attribute 1 Checkbox for Visible

Expiration Date Checkbox for Visible

Enter the following details for the batches in the Batches Setup window:


Batch 103

Quantity 50

Batch Attribute 1 Malaysia

Expiration Date Six months from today

Batch 104

Quantity 50

Batch Attribute 1 Puerto Rico

Expiration Date 10 months from today

Batch 105

Quantity 50



Update the batch information. Save the goods receipt PO. Goods Receipt PO number: ________________________

2-4 A customer wants to order 2 of each of these items.

2-4-1 Create a sales order


Customer C30000

Delivery Date <Today’s Date>

Item No. K2000

Quantity 1

Item No. DPC44

Quantity 10

Add the sales order. Sales Order Number: _____________________________

2-4-2 Create a delivery for your sales order.

Copy the sales order information to a delivery. Choose a serial number for your first item

Choose a batch for your second item.

Add the delivery. Delivery Number: _______________________________

2-4-3 Run the serial number transaction report.


Item No. from K2000

Which transactions are listed for K2000?

______________________________________________________


Unit: Inventory

Topic: Warehouse Management Goods Movements


Create a warehouse

Create a goods receipt to a warehouse

Transfer items between warehouses

Create a goods issue from a warehouse

Run the Inventory in Warehouse report

In this exercise, you create a new regional warehouse for your company. Then you proceed to receive items into the warehouse, transfer items between warehouses, and issue items out of the warehouse. Then you run the Inventory in Warehouse report to view the stock situation

3-1 You have decided to add a new warehouse for your company.

3-1-1 Create a new warehouse and assign it the warehouse code 06 and the name Regional Warehouse. Enter any domestic location, street, city and country for the warehouse. Enter the following information on the General tab page:


Warehouse Code 06

Warehouse Name Regional

Location <any>

Street/City <any>

Country <Domestic>

Choose the accounting tab to view the default G/L accounts assigned to the warehouse. Then add the warehouse to the system.

3-1-2 You have 10 units of item C00008 that have been refurbished. Create a goods receipt to receive them into the new warehouse.

Note: if the warehouse field does not appear, use Form Settings to add it to the document. A default warehouse may be set in Form Settings, so the other option is to restore the default settings.


Item No C00008

Quantity 5

Whse 06

Goods Receipt number: ______________

3-1-3 Add stock to the warehouse by sending 5 units of item C00010 from warehouse 01. Enter this delivery in SAP Business One by using the Inventory Transfer transaction.


From warehouse 01

Item No C00010

To Warehouse 06

Quantity 5

To check the quantity available in Warehouse 01 put the cursor in the To Warehouse field and choose Ctrl+Tab.

Inventory Transfer Number: ____________

3-1-4 Run the Inventory in Warehouse report. How much stock is currently stored in the new warehouse?

_______________________________________________________ Which items and quantities are shown for inventory in this warehouse?

_______________________________________________________

3-1-5 There is a flood in the warehouse and 2 units of C00010 are so damaged that you will scrap these units. Post a goods issue from the warehouse for this item.


Item No C00010

Quantity 2

Whse 06

Remarks Scrapped damaged units

Goods Issue number: ___________

3-1-6 Check the current stock situation for item C00010 in warehouses 01 and 06.


Unit: Inventory

Topic: Pick and Pack


Release items to a pick list

Select a pick list and enter quantities picked

Create a delivery from the Pick and Pack Manager

In this exercise, you use the pick and pack manager to release items to a pick list, enter quantities picked and create a delivery.

.

4-1 Create a sales order.



Customer C42000

Delivery Date <Today’s date>

Item C00009

Quantity 5

Item C00010

Quantity 5

Save the sales order. Sales Order number _______________________

4-2 You want to pick and deliver now the ordered items C00009 and C00011.

4-2-1 Release these items to the pick list.


Status Open

.

Check if you have enough of the items available, then release the items to the pick list.

4-2-2 Select the pick list you created and enter the picked quantities. You did not find the full quantity of item C00009 in the warehouse; therefore you pick only three pieces for that item. Pick the full quantity for the other item.


Status Released

Enter the picked quantities in the column Picked.


for Item C00009: Qty:3


4-2-3 Create a delivery for your sales order directly from the pick and pack manager.


Status Picked

Delivery Number: _________________

The delivery contains only the picked items and quantities. Add the delivery.

4-2-4 Post the customer invoice for the delivery.


Customer C42000

A/R Invoice Number: _______________

Fundamentals-– -– Exercises

Unit: Inventory

Topic: Pricing


Set a manual price

Ensure the right pricelist is chosen for a customer automatically

Create a new pricelist

Calculate prices automatically with the last purchase price list

Set up special prices for a customer with quantity-based discounts

Copy special prices from one customer to another

In this exercise, you explore various options in prices. You create a new item and manually set prices for multiple price lists. You create a new customer and assign the appropriate price list. Then you check that the price list is determined automatically in a sales order for that customer.

Next you create a new price list based on another price list. You check that prices are determined automatically.

You create purchasing transactions to learn empirically how and when the last purchase price is determined in the system.

You set up special prices for customers. First you set a 10% discount for a particular item, then you add quantity-based discounts for a different item. You test the prices by creating a sales order for that customer. Later you extend these special prices to another customer.

.

5-1 Add a new item in the system and maintain prices manually.



Item T2002

Description Ergo Screen Monitor


150

Price List Regular Sales Price

400

Price List Small Account Sales Price

500

Maintain all the prices in the specified price lists for the item master record by changing the dropdown in the field price list to each price list needed.

Alternately, you can save the item master record and enter the prices in the Inventory Price Lists Price Lists menu by double-clicking each price list and entering the required price for the item.

5-2 Create a new customer, TC200, Smith Inc. Since this customer initially only orders small quantities, assign him your terms for stores. Assign the Small Accounts price list in the payment terms.


Code TC200

Customer

Name Smith Inc.

Group Small Accounts

5-2-1 Create a sales order for customer TC200 and item T2002. Make sure that the system chooses the right price.


Customer TC200


Item T2002

Quantity 1

Check the price by displaying the item master record and comparing the price in the document with the price in the Small Account Sales Price price list.

Sales Order Number: ______________ Save the order.

5-2-2 Create a new price list called Test

Tip: In order to create a new price list, place your cursor on the row number and Right mouse click Add Row.

5-2-3 The base price list is the Base Price and the factor is 2 Update the price list.

5-2-4 Create a new item T2004 (Easy Pixel Monitor) and assign it a purchase price (Base Price) of 300.00 units of your national currency.


Item T2004

Description Easy Pixel Monitor


300

5-2-5 Call up the Price List screen and go to your Test price list. Check the price of your item. What is the price for T2004?

____________________________________________________.

5-2-6 Create a sales order for customer TC200 and material T2004. What price list will be used in the sales order?

____________________________________________________


Customer TC200


Item T2004

Make sure that the new Test price list (and not the price list in the customer master record) is used in this document.

Add your sales order. Sales Order number: _____________________

5-3 Instead of entering purchase prices manually in the purchasing price list, you can also allow the system to calculate these prices automatically using the Last Purchase Price system price list.

Calculate prices automatically using the Last Purchase Price list.

5-3-1 Change the Base Price so that it is calculated based on the Last Purchase Price list.


Base Price List Last Purchase Price

Factor 1

Choose Update.

5-3-2 Create a new item master, T2003 (Flat X-Large Monitor). Do not assign any price to this item. Check the price in the Last Purchase Price list.


Item T2003

Do not enter any price! Add the item.

Check the price in the Last Purchase Price list. Is there an entry for the last purchase price?

______________________________________________________

5-3-3 Now order 10 units of the new item, T2003, from vendor V1010 at the price of 250.00 units of your national currency. Create a goods receipt posting with reference to the purchase order. Then display the Base Price price list and check whether the last purchase price has updated the Base Price list.


Vendor V1010

Item T2003

Quantity 10

Unit Price 250

Add the purchase order. Purchase Order number: _________________________

Receive the items from the vendor.


Vendor V1010

Add the Goods Receipt PO. Goods Receipt PO number: __________________ Check the price lists again. Is the last purchase price updated? _______________________________________________________

5-3-4 You can now post the AP invoice for item T2003 with a purchase price of 250. Check again whether the last purchase price has been updated and has therefore updated the other price lists.


Vendor V1010


Add the A/P Invoice. A/P Invoice number: _______________________ Is the last purchase price updated?

__________________________________________

5-3-5 Now find out if the prices related to other price lists have been calculated. Confirm the result by checking the situation in the Price Lists menu.

________________________________________________

________________________________________________

5-4 Special prices

5-4-1 You have agreed on a special discount of 10% of the store price (Small Account Sales Price price list) for the item C00008 with customer C23900.


BP Code C23900


Item No. C00008

Discount Percentage 10

5-4-2 You have also negotiated a special price with quantity-based discounts for item C00005 (5% discount as of two units, 10% as of four units) with the same customer. This quantity-based discount is to be valid for three months. Create a sales order for 5 units for customer C23900 and materials C00008 and C00005.

Add item C00005 to the special prices for business partners.


Item No. C00005



Enter the following values in the Special Prices Volume Discount window.


Quantity. 2

Discount 5

Quantity 4

Discount 10

Create a sales order for 5 units of C00005 and C00008 and check that the prices are correct.


Customer C23900


Item C00008

Quantity 5

Item C00005

Quantity 5

Add the sales order. Sales Order number: ___________________

Are the prices correct? ____________________________________

5-4-3 After lengthy negotiations, you agree to grant customer C30000 the same conditions for items C00005 through C00008. Use the copy function for special prices.

5-4-4 You want to grant customers C40000 and C42000 a special discount for selected item groups. Create a discount of 10% for the Scanners item group for customer C40000. Now copy the discount to customer C42000:

Inventory Price Lists Special Prices Discount Groups.

Now copy the discount to customer C42000 (Copy to Selection Criteria): In the selection field, enter customer C42000 (in the From and To fields) and choose OK.

Create a sales order and check the prices. Make sure that the item is assigned to the Scanners item group. Then you can expand the Choose From List by the Group column.


Customer C42000


Item A2000

Check the prices to ensure the customer receives the appropriate discount. Since this is only a check, choose Cancel to close the sales order.

-– Exercises

Unit: Inventory

Topic: MRP


Define a forecast

Enter planning details in an item master record

Run MRP for a purchased item

Review and save MRP recommendations

In this exercise, you will run MRP for a purchased item.

First, you create an item master record with planning data for MRP and receive 20 into inventory. You create purchase orders and sales orders in the system. You define a sales forecast for expected future demand.

You create a new scenario in the MRP wizard for this item and define the data sources to be used. You run MRP and view the recommendations. After reviewing the recommendations for purchase orders and recommendation details, you save the MRP recommendations.

6-1 You have a new item with some open orders. Create the item master record and enter the open orders.

6-1-1 Create an item master record for a laptop case.


Item Number X5000

Description Leather laptop case

Base Price 200

Preferred Vendor

(on purchasing data tab)

V1010

6-1-2 You receive 20 of the laptop cases from your vendor. Post a Goods Receipt PO to receive them into stock.


Vendor V1010

Item No. X5000

Quantity 20

Goods Receipt PO number: _____________

6-1-3 You want to order the Quantity 30 of the Item no. X5000 with the Delivery Date in two weeks. Create a purchase order with the Vendor V1010.

Field Name or Data Type

Values

Vendor V1010

Delivery Date Two weeks from today

Item No. X5000

Quantity 30

Add your purchase order. Purchase Order Number: ____________________

6-1-4 You have received a sales order from Customer C30000 for Item no. X5000 with the Quantity 15 and the Delivery Date in one month. Create the sales order in the system.


Values

Customer C30000

Delivery Date One month from today

Item No. X5000

Quantity 15

Add your sales order. Sales Order number: ___________________

6-1-5 Check the current stock situation for X5000 in the system by running the Inventory Status report. You must have 20 in stock, 15 committed, 30 ordered and 35 available.

6-2 Define forecast.

6-2-1 You know from experience how the demand for leather laptop cases develops. Therefore you want to plan ahead. Define the following forecast for Item no. X5000 in the system. In two months: 50 pieces In three months: 4 pieces (Forecast Code: 6-2-1, Forecast Name: Exercise 6-2-1)


Forecast Code 6-2-1

Forecast Name Exercise 6-2-1

Start Date Today + two months

End Date Today + three months

View Daily

Item No. X5000

Today + two months 50

Today + three months 4

Add the forecast.

6-3 Enter the planning data in the item master record.

6-3-1 You want to plan the item procurement for Item no. X5000 with the MRP system. Enter the required data in the Planning System field on the Planning Data tab page of the item master record.


Item Number X5000

Enter the following information on the Planning Data tab page:


Planning Method MRP

6-3-2 The Item no. X5000 is a purchased item. You do not produce it so you want MRP to generate purchase orders for it. Enter the required data in the item master record.


Procurement Method Buy

6-3-3 You want to have purchase orders generated with a quantity of at least five of Item no. X5000. Enter the required data in the item master record.


Minimum Order Qty. 5

6-3-4 You know, that you need at least three days for purchasing the Item no. X5000. You want to make sure that this is considered in the MRP-planning. Enter the required data in the item master record.


Lead Time. 3

6-4 Now you want to plan the requirements for item no. X5000 with the MRP-Wizard in the system.

6-4-1 Carry out a MRP-run for a Item no. X5000 with the MRP Wizard. In Steps 1 and 2 you create a new MRP – Scenario (Scenario Name: 6-4-1, Description: Scenario 6-4-1) You want to plan in periods of 1 days from today for the next four months. You want to run the MRP only for the Item no. X5000. Save the scenario, so that you can use it again.

Choose MRP MRP Wizard

Choose Next

Choose Create New Scenario


Scenario Name 6-4-1

Description Scenario 6-4-1

Choose Next

Enter the following information on the Scenario Details window:


View Data in Periods of 1 days

Start Date Today’s date

End Date Today + four months

Items Code

From

X5000

To X5000

Save the scenario.

6-4-2 In Step 3 of the MRP-Wizard you define the data source for the MRP run. You want to consider the following Data sources: existing inventory, purchase orders, and sales orders. Assign the sales Forecast Exercise 6-2-1 as additional data source. You only want to consider your stock from your General Warehouse 01.

Enter the following information on the Data Source window:


Existing inventory x

Warehouses

01 General Warehouse

x

Purchase Orders x

Sales Orders x

Forecast Exercise 6-2-1

Run MRP.

6-4-3 How many purchase orders do you get recommended from the MRP results?

________________________________________________________

6-4-4 What are the quantities and the due dates for the recommended purchase orders?

_________________________________________________________

_________________________________________________________

_________________________________________________________

_________________________________________________________

6-4-5 Change back from the recommendations to view the results of the MRP run. Why are the cells of the first three days grey? _________________________________________________________

_________________________________________________________

6-4-6 What are the levels of the initial stock, the gross requirements and the final stock one month from today (the date of the due date of the sales order?) Expand the item row into the four composing rows. Initial Inventory: _____________________________ Receipts: ___________________________________ Gross Requirements: __________________________ Final Inventory: ______________________________

6-4-7 How can you view the source of the gross requirement?

____________________________________________________.

6-4-8 Save the recommendations.

6-5 You have decided that you want to place the two purchase orders.

6-5-1 What is the easiest way to put the orders in the system?

_________________________________________________________

6-5-2 Create the purchase orders using the Order Recommendations transaction.

Enter the following information on the Order Recommendation– Selection Criteria window:


Order Type All

Scenario 1-5-1

Choose the option to create the two purchase orders.

Items and Warehouses - Solutions

Unit: Inventory

Topic: Setting up Inventory: Items and Warehouses

1-1 Check if an item group has been defined for scanners. Choose Administration Setup Inventory Item Groups If the item group has not been defined for scanners, create an item group now.

Which default values for items are set at the item group level?

The item group contains defaults for planning method, procurement method, order interval, order multiple, lead time, cycle group, and valuation method.

1-2 Create item master records.

1-2-1 Create the item Photo Scanner. Choose Inventory Item Master Data. Make sure you are in Add mode.



Item Number A2000

Description Photo Scanner

Item Group Scanner

Choose Base Price List 60







Length 18

Width 10

Height 4.5

Weight 3kg

Choose Add.

1-2-2 Create the item Digital Flatbed Scanner. Choose Inventory Item Master Data. Make sure you are in Add mode. When you enter the following values, confirm the system message to update item information according to the item group chosen.


Item Number A2001

Description Digital Flatbed Scanner

Item Grouping Scanners

Choose Base Price list 80







Length 14

Width 19

Height 6

Weight 5kg

Choose Add.

1-3 Find item master records and work with the List of Items function.

1-3-1 Choose Item Master Data. In the Item Number field, type in A and choose Enter or Find. Which item master records do you find?

The window List of Items opens, and the list contains all the items beginning with A.

1-3-2 Customize the window List of Items.

List of Items Form Settings. Into the first free row, enter the Field Name Item Group by using the dropdown list, for the Displayed Name, type in, for example, Group. Check the box in the Group column and choose Update and OK. Cancel the List of Items, and start the search again by using Find. The List of Items window opens again, but is now grouped by the item group. You can expand one group by clicking + icon or you can choose Expand All to view all the groups.

1-3-3 True or False: The changes to the List of Items function are applicable for all users?

True.

1-3-4 Restore the original settings in the List of Items window.

List of Items Form Settings Choose the Restore Default button. Choose Update and then OK. Close all windows.


Unit: Inventory

Topic: Setting up Inventory – Batches and Serial Numbers

2-1 Create an item managed by batches.

2-1-1 Open the item master data window.


Choose the Add icon from the menu bar.


Item No. DPC44

Item Description Printer Cartridge, Black Ink


10

Manage Item By Batches


Choose Add.

2-2 Create an item managed by serial numbers.



Item No. K2000

Item Description Laptop Computer


700

Manage Item By Serial Number


Choose Add.

2-3 Receive the vendor’s delivery of the batch-managed and serialized items into inventory.

2-3-1 Create a goods receipt PO to receive the two items.

Choose Purchasing – A/P Goods Receipt PO


Vendor V1010

Item No. K2000

Quantity 5

Item No. DPC44

Quantity 150

Open the context menu by right-clicking on the first item’s quantity. Choose Batch/Serial Numbers.

The Serial Number – Setup window opens. Choose Automatic Creation. Choose the Browse Button <…> for the Serial Number field. Enter the information below:


String K2-

Type String

Operator No Oper.

String 000001

Type Number

Operator Increase

Choose OK.

You will see the newly created serial numbers listed in the Serial Numbers – Setup window.

In the Serial Numbers - Setup window, enter this additional information.


Manufacturing Date <2 weeks ago>

Mfr. Warranty Start <today>

Mfr. Warranty End <year from today>

Choose Create.

Then choose Update and OK.

You have returned to the Goods Receipt PO main window. Now it is time to enter the batch information for the second row.

Open the context menu by right-clicking on the second row’s item quantity. Choose Batch/Serial Numbers.

The Batches – Setup window opens.

Add two fields to the created batches section of the report. Choose Form Settings. Add fields from the Created Batches section. Select the radio button for Created Batches, then choose OK.

Add the following fields:


Batch Attribute 1 Checkbox for Visible

Expiration Date Checkbox for Visible

Choose OK.

In the Created Batches section of the Batches Set up window, enter the following details:


Batch 103

Quantity 50


Expiration Date Six months from today

Batch 104

Quantity 50

Batch Attribute 1 Puerto Rico


Batch 105

Quantity 50



Choose Update and OK.

Save the goods receipt PO by choosing Add. Goods Receipt PO number: ________________________ Confirm the system message. Choose Yes.

2-4 A customer wants to order 2 of each of these items.

2-4-1 Create a sales order



Customer C30000

Delivery Date <Today’s Date>

Item No. K2000

Quantity 1

Item No. DPC44

Quantity 10

Choose Add. Sales Order Number: _____________________________

2-4-2 Create a delivery for your sales order.

Open your sales order. Choose Copy To Delivery

Choose the serial number for your first item. Open the context menu and choose Batch/Serial Numbers. Choose one of the serial numbers shown by highlighting a row in the Available Serial Numbers section and using the arrow button (in the middle) to move the selection to the Selected Serial Numbers section. Choose Update, then OK.

Choose a batch for your second item. Open the context menu and choose Batch/Serial Numbers. Choose Auto Select for the system to choose the first batch. Choose Update, then OK.

Add the delivery. Delivery Number: _______________________________ Choose Yes to confirm the system message.

2-4-3 Run the serial number transaction report.

Choose Inventory Inventory Reports Serial Number Transactions Report.


Item No. from K2000

Choose OK.

The Serial Number Transaction Reports window opens. If there is more than one row, click on the row number of the row with the serial number you delivered.

Which transactions are listed?

______________________________________________________


Unit: Inventory

Topic: Warehouse Management Goods Movements

3-1 You have decided to add a new warehouse for your company.

3-1-1 Create a new warehouse and assign it the warehouse code 06 and the name Regional Warehouse. Enter any domestic location, street, city and country for the warehouse.

Choose Administration Setup Inventory Warehouses. Enter the following information on the General tab page:


Warehouse Code 06

Warehouse Name Regional

Location <any>

Street/City <any>

Country <Domestic>

Choose the accounting tab to view the default G/L accounts assigned to the warehouse.

Choose Add.

3-1-2 You have 10 units of item C00008 that have been refurbished. Create a goods receipt to receive them into the new warehouse.

Inventory Inventory Transactions Goods Receipt

Note: if the warehouse field does not appear, use Form Settings to add it to the document. A default warehouse may be set in Form Settings, so the other option is to restore the default settings.


Item No C00008

Quantity 5

Whse 06

Goods Receipt number: ______________ Choose Add. Confirm the system message.

3-1-3 Add stock to the warehouse by sending 5 units of item C00010 from warehouse 01. Enter this delivery in SAP Business One by using the Inventory Transfer transaction.

Inventory Inventory Transactions Inventory Transfer


From warehouse 01

Item No C00010

To Warehouse 06

Quantity 5


Inventory Transfer Number: ____________ Choose Add.

3-1-4 How much stock is currently stored in the new warehouse?

Inventory Inventory Reports Inventory in Warehouse Report. Choose the By Warehouse tab. Enter Warehouse 06. Choose OK Which items and quantities are shown for inventory in this warehouse?

_______________________________________________________

3-1-5 There is a flood in the warehouse and 2 units of C00010 are so damaged that you will scrap these units. Post a goods issue from the warehouse for this item. Choose Inventory Inventory Transactions Goods Issue.


Item No C00010

Quantity 2

Whse 06

Remarks Scrapped damaged units

Goods Issue number: ___________ Choose Add. Confirm the system message to save the goods issue.


Choose Inventory Inventory Reports Inventory in Warehouse Report.

Deselect all warehouses except 01 and 06.


Unit: Inventory

Topic: Pick and Pack

4-1 Create a sales order. Choose Sales-A/R Sales Order.



Customer C42000

Delivery Date <Today’s date>

Item C00009

Quantity 5

Item C00010

Quantity 5

Choose Add to save the sales order. Sales Order number _______________________

4-2 You want to pick and deliver now the ordered items C00009 and C00011.

4-2-1 Release these items to the pick list.

Choose Inventory Pick and Pack Pick Pack Manager.


Status Open

Choose OK to run the report.

See in the column Avail.to Release, if you have enough of the items available. Select the checkboxes for the two items (C00009 and C00011) of your sales order. Choose Release to Pick List. Choose Add.

4-2-2 Select the pick list you created and enter the picked quantities. You did not find the full quantity of item C00009 in the warehouse; therefore you pick only three pieces for that item. Pick the full quantity for the other item.



Status Released

Choose OK.

Select the orange arrow link of the last Pick No. that you have just created in the previous exercise.

Enter the picked quantities in the column Picked.





4-2-3 Create a delivery for your sales order directly from the pick and pack manager.



Status Picked

Choose OK.

Select the lines of the last two pick lists and choose Deliver.

Delivery Number: _________________

The delivery contains only the picked items and quantities. Add the delivery. Choose Yes.

Close all windows.

4-2-4 Post the customer invoice for the delivery.

Choose Sales-A/R A/R Invoice.


Customer C42000

Choose Copy from Deliveries.

Choose the delivery and copy all data.

Choose Finish.

A/R Invoice Number: _______________

Choose Add and confirm the system message.


Unit: Inventory

Topic: Pricing

5-1 Add a new item in the system and maintain prices manually.

5-1-1 Choose Inventory Item Master Data Change to Add mode.


Item T2002

Description Ergo Screen Monitor


150

Price List Regular Sales Price

400


500

Maintain all the prices in the specified price lists for the item master record by changing the dropdown in the field price list to each price list needed.

Add the item.

Alternately, you can save the item master record and enter the prices in the Inventory Price Lists Price Lists menu by double-clicking each price list and entering the required price for the item.

5-2 Create a new customer, TC200, Smith Inc.. Since this customer initially only orders small quantities, assign him your terms for stores. You can assign the Small Accounts price list in the payment terms.

Business Partners Business Partner Master Data Choose Data Add


Code TC200

Customer

Name Smith Inc.


Choose the price list Small Account Sales Price on the Payment Terms tab page. Choose Add.

5-2-1 Create a sales order for customer TC200 and item T2002. Make sure that the system chooses the right price.

Choose Sales-A/R Sales Order


Customer TC200


Item T2002

Quantity 1

Check the price by displaying the item master record and comparing the price in the document with the price in the Small Account Sales Price price list.

Sales Order Number: ______________ Save the order. Acknowledge any messages about lack of stock and choose Add.

5-2-2 Create a new price list called Test

Inventory Price Lists Price Lists. In order to create a new price list, place your cursor on the row number and Right mouse click Add Row.

5-2-3 The base price list is the Base Price and the factor is 2 Save the price list by choosing Update. Close the confirmation window. Choose OK.

5-2-4 Create a new item T2004 (Easy Pixel Monitor) and assign it a purchase price (Base Price) of 300.00 units of your national currency.

Inventory Item Master Data

Choose the Add icon.


Item T2004

Description Easy Pixel Monitor


300

Add the item.

5-2-5 Call up the Price List screen and go to your Test price list. Check the price of your item.

Inventory Price Lists Price Lists

Select radio button Update Entire Price List

Double click on the Test price list.

The price of the new item is 600.00 units of national currency.

5-2-6 Create a sales order for customer TC200 and material T2004. What price list will be used in the sales order?

Choose Sales-A/R Sales Order.


Customer TC200


Item T2004

The system will choose the Small Account Sales Price price list for the document. This price list is maintained in the business partner master record (see above).

Make sure that the new Test price list (and not the price list in the customer master record) is used in this document.

Form Settings Document tab Table tab in order to assign the Test price list to the document. Choose OK and answer the question, “Update

prices in existing rows?” with Yes. The system then uses the price of the Test price list (600.00 units of national currency). Add your sales order. Sales Order number:_____________________

5-3 Calculate prices automatically using the Last Purchase Price list.

5-3-1 Change the Base Price so that it is calculated based on the Last Purchase Price list. Inventory Price Lists Price Lists For the Base Price row, use the dropdown to set the following:


Base Price List Last Purchase Price

Factor 1

Choose Update.

5-3-2 Create a new item master, T2003 (Flat X-Large Monitor). Do not assign any price to this item. Check the price in the Last Purchase Price list. The list does not contain an entry yet.

Choose Inventory Item Master Data Choose Data Add.


Item T2003

Do not enter any price! Add the item. There is currently no price listed for T2003 in any price list.

5-3-3 Now order 10 units of the new item, T2003, from vendor V1010 at the price of 250.00 units of your national currency. Create a goods receipt posting with reference to the purchase order. Then display the Base Price price list and check whether the last purchase price has updated the Base Price list.

Purchasing-A/P Purchase Order.


Vendor V1010

Item T2003

Quantity 10

Unit Price 250

Add the purchase order. Purchase Order number: _________________________

Receive the items from the vendor.

Purchasing-A/P Goods Receipt PO.


Vendor V1010

Copy from Purchase Orders. Choose your purchase order from the list In the Draw Document Wizard, choose Finish Add the Goods Receipt PO. Goods Receipt PO number: __________________ Confirm the system message.

Choose Inventory Price Lists Price Lists in order to check the price lists again. The system will not automatically copy the last purchase price of 250.00 units of the national currency until the AP invoice is entered.

5-3-4 You can now post the AP invoice for item T2003 with a purchase price of 250. Check again whether the last purchase price has been updated and has therefore updated the other price lists.

Choose Purchasing-A/P A/P Invoice.


Vendor V1010


Copy from Goods Receipt PO. Choose your Goods Receipt PO from the list Choose Finish in the Draw Document Wizard Add the A/P Invoice. A/P Invoice number: _______________________ Confirm the system message.

5-3-5 Now find out if the prices related to other price lists have been calculated. Confirm the result by checking the situation in the Price Lists menu. Inventory Price Lists Price Lists Yes, the price is updated.

5-4 Special prices

5-4-1 You have agreed on a special discount of 10% of the store price (Small Account Sales Price price list) for the item C00008 with customer C23900.

Inventory Price Lists Special Prices Special Prices for Business Partners.


BP Code C23900


Item No. C00008


5-4-2 You have also negotiated a special price with quantity-based discounts for item C00005 (5% discount as of two units, 10% as of four units) with the same customer. This quantity-based discount is to be valid for three months. Create a sales order for 5 units for customer C23900 and materials C00008 and C00005, check the prices.

Add item C00005 to the special prices for business partners.

Inventory Price Lists Special Prices Special Prices for Business Partners.


Item No. C00005



Select the row containing item C00005 and double-click to display a time interval. Enter today’s date in the Valid Until field. Double-click this interval to display the quantity scale. The Special Prices Volume Discount window appears. Enter a quantity-based discount (5% discount as of two units, 10% as of four units).


Quantity. 2

Discount 5

Quantity 4

Discount 10

Add the record by choosing Update in each window, then OK. Choose Add and Yes.

Create a sales order for 5 units of C00005 and C00008 and check that the prices are correct. Choose Sales-A/R Sales Order


Customer C23900


Item C00008

Quantity 5

Item C00005

Quantity 5

Add the sales order. Sales Order number: ___________________

5-4-3 After lengthy negotiations, you agree to grant customer C30000 the same conditions for items C00005 through C00008. Use the copy function for special prices.

Inventory Price Lists Special Prices Copy Special Prices to Selection Criteria. At header level, enter the business partner from whom you want to copy the special prices (C23900) and choose a selection of partners to whom you want to copy the special prices (C30000 in the From and To fields). Items: Code From C00005 To C00008, radio-button: Replace All Items. Choose OK Choose Yes and OK. Choose Cancel to close the window.

5-4-4 You want to grant customers C40000 and C42000 a special discount for selected item groups. Create a discount of 10% for the Scanners item group for customer C40000. Now copy the discount to customer C42000:

Inventory Price Lists Special Prices Discount Groups. Choose customer C40000 and select the tab Item Groups.

For the item group Scanners, create a 10% discount. Choose the button Copy to Selection Criteria to copy the discount information to C42000. In the selection field, enter customer C42000 (in the From and To fields) and choose OK and Add.

Create a sales order and check the prices. Make sure that the item is assigned to the Scanners item group.

Sales-A/R Sales Order


Customer C42000


Item A2000

Check the prices to ensure the customer receives the appropriate discount. Since this is only a check, choose Cancel to close the sales order.


Unit: Inventory

Topic: MRP

6-1 You have a new item with some open orders. Create the item master record and enter the open orders.

6-1-1 Create an item master record for a laptop case.


Choose the Add icon.


Item Number X5000

Description Leather laptop case

Base Price 200

Preferred Vendor

(on purchasing data tab)

V1010

Add your item.

6-1-2 You receive 20 of the laptop cases from your vendor. Post a Goods Receipt PO to receive them into stock.

Choose Purchasing-A/P Goods Receipt PO


Vendor V1010

Item No. X5000

Quantity 20

Choose Add. Goods Receipt PO number: _____________ Confirm the system message.

6-1-3 You want to order the Quantity 30 of the Item no. X5000 with the Delivery Date in two weeks. Create a purchase order with the Vendor V1010. Choose Purchasing – A/P Purchase Order


Values

Vendor V1010

Delivery Date Two weeks from today

Item No. X5000

Quantity 30

Add your purchase order. Purchase Order Number: ____________________

6-1-4 You have received a sales order from Customer C30000 for Item no. X5000 with the Quantity 15 and the Delivery Date in one month. Create the sales order in the system. Choose Sales – A/R Sales Order


Values

Customer C30000

Delivery Date One month from today

Item No. X5000

Quantity 15

Add your sales order. Sales Order number: ___________________ Confirm the system message.

6-1-5 Check the current stock situation in the system. You must have 20 in stock, 15 committed, 30 ordered and 35 available.

Choose Inventory Inventory Reports Inventory Status Enter X5000 in the Code “From…” field Choose OK.

6-2 Define forecast.

6-2-1 You know from experience how the demand for leather laptop cases develops. Therefore you want to plan ahead. Define the following forecast for Item no. X5000 in the system. In two months: 50 pieces In three months: 4 pieces (Forecast Code: 6-2-1, Forecast Name: Exercise 6-2-1)

Choose MRP Forecasts Data Add


Forecast Code 6-2-1

Forecast Name Exercise 6-2-1

Start Date Today + two months

End Date Today + three months

View Daily

Item No. X5000

Today + two months 50

Today + three months 4

Choose Add.

6-3 Enter the planning data in the item master record.

6-3-1 You want to plan the item procurement for Item no. X5000 with the MRP system. Enter the required data in the Planning System field on the Planning Data tab page of the item master record. Choose Inventory Item Master Data


Item Number X5000

Enter the following information on the Planning Data tab page:


Planning Method MRP

6-3-2 The Item no. X5000 is a purchased item. You do not produce it so you want MRP to generate purchase orders for it. Enter the required data in the item master record. Enter the following information on the Planning Data tab page:


Procurement Method Buy

6-3-3 You want to have purchase orders generated with a quantity of at least five of Item no. X5000. Enter the required data in the item master record. Enter the following information on the Planning Data tab page:


Minimum Order Qty. 5

6-3-4 You know, that you need at least three days for purchasing the Item no. X5000. You want to make sure that this is considered in the MRP-planning. Enter the required data in the item master record. Enter the following information on the Planning Data tab page:


Lead Time. 3

Choose Update then OK.

6-4 Now you want to plan the requirements for item no. X5000 with the MRP-Wizard in the system.

6-4-1 Carry out a MRP-run for a Item no. X5000 with the MRP Wizard. In Steps 1 and 2 you create a new MRP – Scenario (Scenario Name: 6-4-1, Description: Scenario 6-4-1) You want to plan in periods of 1 days from today for the next four months. You want to run the MRP only for the Item no. X5000. Save the scenario, so that you can use it again.

Choose MRP MRP Wizard

Choose Next

Choose Create New Scenario


Scenario Name 6-4-1

Description Scenario 6-4-1

Choose Next

Enter the following information on the Scenario Details window:


View Data in Periods of 1 days

Start Date Today’s date

End Date Today + four months

Items Code

From

X5000

To X5000

Choose Save Scenario.

Choose Next.

6-4-2 In Step 3 of the MRP-Wizard you define the data source for the MRP run. You want to consider the following Data sources: existing inventory, purchase orders, and sales orders. Assign the sales Forecast Exercise 6-2-1 as additional data source. You only want to consider your stock from your General Warehouse 01.

Enter the following information on the Data Source window:


Existing inventory x

Warehouses

01 General Warehouse

x

Purchase Orders x

Sales Orders x

Forecast Exercise 6-2-1

Choose Run.

6-4-3 How many purchase orders do you get recommended from the MRP results?

Choose View Recommendations. You get two recommendations for purchase orders.

6-4-4 What are the quantities and the due dates for the recommended purchase orders?

The system recommends 15 on the first purchase order and 5 on the second. For the first there are 35 left from the initial stock for the gross requirement (from the first forecasted quantity) of 50. The quantity of the second recommendation for a purchase order is 5. The gross requirement from the second forecast is 4. But you have entered a Minimum order quantity of 5 in the planning data of the item master record of Item no. X5000. The due dates equal the forecasted dates (in two months and in three months).

6-4-5 Change back from the recommendations to view the results of the MRP run. Why are the cells of the first three days grey? Choose View Results.

Dark gray cells define dead periods, where if a requirement exists, the lead time is too long to permit timely procurement.

6-4-6 What are the levels of the initial stock, the gross requirements and the final stock one month from today (the date of the due date of the sales order?) Expand the item row into the four composing rows. Initial Inventory: 50 (today’s initial stock 20 + receipt from purchase order 30) Receipts: empty Gross Requirements: 15 (sales order quantity) Final Inventory: 35 (initial stock – gross requirements)

6-4-7 How can you view the source of the gross requirement?

Click on the quantity on the gross requirements line item for the expanded purchase order. The Pegging Information window displays.

6-4-8 Save the recommendations.

Choose Save Recommendations. Choose Finish. Confirm the system message.

6-5 You have decided that you want to place the two purchase orders.

6-5-1 What is the easiest way to put the orders in the system? Now that you have the saved the recommendations for the two purchase orders from the MRP-run, the easiest way to create the purchase orders is to do it via the Order Recommendation Report.

6-5-2 Create the purchase orders.

Choose MRP Order Recommendation

Enter the following information on the Order Recommendation– Selection Criteria window:


Order Type All

Scenario 1-5-1

Choose OK.

In the Order Recommendation window: Select the checkbox Create for the two rows with the purchase orders.

Choose Update. Choose OK to confirm the system message.

Questions on Inventory Concepts

Review Questions

1. What are the main processes in Inventory? 2. What steps do you need to take to set up inventory? 3. What information do you find on the inventory data tab of an item master record? 4. What are three valuation methods available? Which one are we using in this course? 5. What are the three levels at which you can set up account determinations? 6. What is the advantage of having batch numbers? 7. What is the advantage of using serial numbers? 8. Where do you set up batch numbering? 9. Where do you set up serial numbers? 10. Which documents in logistics are available to receive items into a warehouse (include

purchasing and sales documents as well as inventory documents)? 11. Which documents in logistics are available to release items from a warehouse (include

purchasing and sales documents as well as inventory documents)? 12. Which document is used to move items between warehouses? 13. What are the main documents used in the warehouse management process? 14. What master data must be entered into every warehouse management document? 15. Name the main inventory reports. What are the advantages of each? 16. What documents are used to correct issues in the inventory process? 17. What type of price is maintained in a price list? 18. Describe the four types of prices available in SAP Business One. 19. In what order does the system search for a price in sales document? 20. Where are purchasing prices maintained? 21. Where are items linked to price lists? 22. How are price lists maintained? 23. How does the system choose a price list for a sales order? 24. How does MRP work in general? 25. How can you plan ahead for a production run, for instance if you know that you need a

certain number of an item produced before the holiday season begins? 26. What requirements are considered in an MRP run? 27. What are the receipts considered for an MRP run? 28. How do you get output for an MRP run?


1. You are advising a business which does not stock its own inventory, but instead their

suppliers send the products directly to the customer. How do you set up the warehouses for this business?

2. ABC Company sells medical equipment. They often have inventory at the hospitals who are their customers. ABC owns the inventory at the hospitals. The sale occurs when the hospital uses the inventory items. How do you set up these warehouses that are located at the hospitals?

3. XYZ Company wants to keep separate inventory accounts and revenue accounts for their different lines of sports products. At what level would you advise them to set their G/L account determination for items?

4. You need to track expiration dates for dairy products you sell. How would you set up the item master for the dairy products?

5. Someone from your marketing department is attending a trade show and would like to bring some products to demonstrate to potential customers. What goods movement would you use to track that these items are at the trade show and not in the warehouse?

6. During picking, one of the warehouse staff dropped a carton of lightbulbs that were to be shipped to a customer. What document should be used to track the damage?

7. If you set your company to allow negative inventory, what effect do you think this will have on pick lists?

8. Your business has a customer who should always receive 5% off the preferred customer price list. What is the best way to set this up?

9. Your large company price list is currently set up to be 10% less than the small company price list. You have decided that you would like to change this to now be 12% less. What’s the easiest way to do this?

10. All the prices in your company will be going up by 2% on January 1. What’s the best way to handle this?

11. You want to give a 4% discount for all IBM printers. What pricing option should you use for this?

12. You have decided to give KLX Company an extra 2% discount on their five most purchased items during the next two months. During this period they will get a 3% discount if they purchase a quantity of 5 or more. What pricing option would you use to set this up?

13. You have built a forecast for the X-1111 item which predicts a need for 100 to be produced each month. You have already received sales orders for this period. You do not want to count the sales orders towards the demand. How do you set MRP to ignore the demand from the sales orders?

-– Exercises

Unit: Production

Topic: Bills of Material (BOMs)


Define a sales bill of materials

Update parent prices in a bill of materials

Discuss the uses of the different types of bills of materials

In this exercise, you create a sales bill of materials. You change the price of the components in the BOM, then update the parent price based on the components.

1-1 You want to define a sales BOM for a PC set.

1-1-1 First create a (header) item, VS001 (Basic PC Set) in inventory management. The item belongs to the item group PCs. Do not enter any price.

Field Name Value

Item No. VS001

Description Basic PC Set

Item Group PCs

Change the category of the item to be appropriate for a sales bill of materials. Save your item.

1-1-2 Now define the sales BOM for the PC set in the Production menu. As price list, choose Base Price. The PC set includes one unit each of item below. The price for the PC set is calculated from the component prices.

Field Name Value

Product No. VS001

Quantity 1

BOM Type Sales


Item C00008

Quantity 1

Item C00009

Quantity 1

Item C00010

Quantity 1

Copy the total of the component prices into the Product Price field.

Save the bill of materials.

1-1-3 Create a sales order for customer C20000, who wants to buy five PC sets.

Field Name Value

Customer C20000


Item No. VS001

Quantity 5

What items appear in the order?

________________________________________________________

Add the sales order.

1-1-4 What items would display if you had created item VS001 as a production BOM? _________________________________________________________

1-2 Update Parent Item Prices: The price of a component of the sales BOM VS001 changes.

1-2-1 Change the price of the component C00009 in the Base Price list. Check in the base price list whether the base price of the parent item VS001 has also changed.

Has the price for VS001 has changed in the list? _____________________________________________________

1-2-2 Using what report can the system determine the BOMs affected by the change of price for component C00009?

______________________________________________________________

1-2-3 Choose the report; all changes caused by the child item C00009 should be selected. Finally update the parent price.

1-2-4 Check the result in the Price Lists menu, directly in the item master record or in the BOM.

1-3 The types of BOM and the item master records of the finished product:

1-3-1 What type of BOM is the only one that can be used for MRP and production orders?

______________________________________________________

1-3 2 Do you need an item master record for the finished product (parent item) of the production BOM?

_______________________________________________________

1-3-3 Do you need an item master record for the finished product (parent item) of a template or a sales BOM?

________________________________________________________

1-3-4 What item category is required in an item master of the finished product of a sales BOM?

_________________________________________________________

-– Exercises

Unit: Production

Topic: Production Process


Create a production order

Release the order to the shop floor

Report completion of a production order

Close a finished production order

In this exercise, you create a sales order for an item to be manufactured. You review an existing production bill of materials to see how the components are issued. You create a production order and link the sales order to it. You release the production order to shop floor. When manufacturing is finished, you report completion of the production order and review the inventory status. You close the production order and deliver the item to the customer.

2-1 The production order types

2-1-1 What types of production order does the SAP Business One system support?

_________________________________________________________

2-1-2 You want to produce a PC Set. The BOM for the PC Set already exists in the system. What type of production order do you use in the SAP Business One system?

__________________________________________________________

2-2 You have received a sales order for 5 PC sets (item P10003) that have to be produced first before they can be delivered.

2-2-1 Create a sales order for customer C20000 for 5 PC Sets, Item no. P10003

Field Name Value

Customer C20000


Item No. P10003

Quantity 5

Save the sales order and record the number _______________.

2-2-2 Display the BOM of P10003. What is the issue method of its components?

_____________________________________________________

2-2-3 Create the production order for the 5 PC Sets in the system.

Field Name or Data Type Value

Type Standard

Status Planned

Product No. P10003


Planned Quantity 5

Add the production order.

2-2-4 What is the inventory status for the finished product P10003 and the component A00003?

From…field P10003 A00003

In Stock

Committed

Ordered

2-2-5 You want to link the sales order to the production order. Enter the sales order number of exercise 2-2-1 in the production order.


Sales order Sales order number created in exercise 2-2-1

If you do not remember the number, use the drop down box in the sales order field in the production order to find it. Do not update the production order yet. You will choose update after you change the status in exercise step 2-2-7.

2-2-6 What is the status of the production order?

______________________________________

2-2-7 The production has started. Change the Status of the production order to Released.

2-2-8 You receive a message from production that all 5 PC Sets are finished. Report the full completion of the production order.

2-2-9 What is the inventory status for the finished product P10003 and the component A00003?

P10003 A00003

In Stock

Committed

Ordered

2-2-10 Manufacturing is over. Close the production order

2-2-11 Create the delivery of the 5 PC Sets to the sales order of exercise 2-2-1.

Field Name Value

Customer C20000

Add your delivery.

Delivery number: _______________________

Production - Solution

Unit: Production

Topic: Bills of Material (BOMs)

1-1 You want to define a sales BOM for a PC set.

1-1-1 First create a (header) item, VS001 (Basic PC Set) in inventory management. The item belongs to the item group PCs. Do not enter any price.

Choose Inventory Item Master Data. Choose Data Add.

Field Name Value

Item No. VS001

Description Basic PC Set

Item Group PCs

Change the category of the item to be appropriate for a sales bill of materials.

Uncheck Inventory Item and Purchased Item, leaving only Sales Item checked. Save your newly created item by choosing Add.

1-1-2 Now define the sales BOM for the PC set in the Production menu. As price list, choose Base Price. The PC set includes one unit each of item below. The price for the PC set is calculated from the component prices.

Choose Production Bill of Materials. Choose Data Add.

Field Name Value

Product No. VS001

Quantity 1

BOM Type Sales


Item C00008

Quantity 1

Item C00009

Quantity 1

Item C00010

Quantity 1

Copy the total of the component prices into the Product Price field by selecting the arrow above the Product Price field. Finally, choose Add.

1-1-3 Create a sales order for customer C20000, who wants to buy five PC sets. What items appear in the order?

Choose Sales – A/R Sales Order.

Field Name Value

Customer C20000


Item No. VS001

Quantity 5

You can see both the header item and the components in the order.

Save your order by choosing Add.

1-1-4 What items would display if you had created item VS001 as a production BOM? In production BOMs, you can only see the header item in the order.

1-2 Update Parent Item Prices: The price of a component of the sales BOM VS001 changes.

1-2-1 Change the price of the component C00009 in the Base Price list. Check in the base price list whether the base price of the parent item VS001 has also changed.

Inventory Price Lists Price Lists Double-click the line with Base Price. Change the price for C00009.

Now look to see if the price for VS001 has changed in the list. No, the price of the parent item VS001 has not changed.

1-2-2 Using what report can the system determine the BOMs affected by the change of price for component C00009?

Choose Production Update Parent Item Prices Globally.

1-2-3 Choose the report; all changes caused by the child item C00009 should be selected. Finally update the parent price.

In the window Update Parent Item Prices – Selection Criteria: All Price Lists, Code From C00009 to C00009,

Selection Criterion Component Items, choose OK.

In order to display the entire bill of material and the price situation select the orange drill down icon in front of the parent item or choose the Expand button. Select the Update checkbox in the respective parent item row, and then choose the Update button.

1-2-4 Check the result in the Price Lists menu, directly in the item master record or in the BOM.

Use one of the following three menu paths: Option 1: Inventory Price Lists Price Lists Option 2: Inventory Items Master Data Option 3: Production Bill of Materials.

1-3 The types of BOM and the item master records of the finished product:

1-3-1 What type of BOM is the only one that can be used for MRP and production orders?

The production BOM.

1-3 2 Do you need an item master record for the finished product (parent item) of the production BOM?

Yes, you need an item master record for the finished product.

1-3-3 Do you need an item master record for the finished product (parent item) of a template or a sales BOM?

Yes, you have to create an item master record for each finished product.

1-3-4 What item category is required in an item master of the finished product of a sales BOM?

For the sales BOM the finished product has to be a sales item.

Production - Solution

Unit: Production

Topic: Production Process

2-1 The production order types

2-1-1 What types of production order does the SAP Business One system support?

Standard production order, special production order and disassembly production order.

2-1-2 You want to produce a PC Set. The BOM for the PC Set already exists in the system. What type of production order do you use in the SAP Business One system?

The standard production order.

2-2 You have received a sales order for 5 PC sets (item P10003) that have to be produced first before they can be delivered.

2-2-1 Create a sales order for customer C20000 for 5 PC Sets, Item no. P10003. Choose Sales – A/R Sales Order

Field Name Value

Customer C20000


Item No. P10003

Quantity 5

Save the sales order and record the number _______________.

2-2-2 Display the BOM of P10003. What is the issue method of its components?

Choose Production Bill of Materials Product No. P10003 Choose Find. Scroll right to the column Issue Method. The issue method is Backflush

The components will be issued automatically when you report the completion of the finished product.

2-2-3 Create the production order for the 5 PC Sets in the system. Choose Production Production Order


Type Standard

Status Planned

Product No. P10003


Planned Quantity 5

Choose Add.

2-2-4 What is the stock status for the finished product P10003 and the component A00003?

Choose Inventory Inventory Reports Inventory Status

Run the report separately for each item number.

From…field P10003 A00003

In Stock

Committed

Ordered

2-2-5 You want to link the sales order to the production order. Enter the sales order number of exercise 2-2-1 in the production order.

Choose Production Production Order


Sales order Sales order number created in exercise 2-2-1

If you do not remember the number, use the drop down box in the sales order field in the production order to find it. Do not update the production order yet. You will choose update after you change the status in exercise step 2-2-7.

2-2-6 What is the status of the production order?


Status: Planned

2-2-7 The production has started. Change the Status of the production order to Released.

Change Status to Released

Update the production order.

2-2-8 You receive a message from production that all 5 PC Sets are finished. Report the full completion of the production order.

Open your production order.

Choose either the menu path Go to Report Completion or right mouse-click Report Completion

Choose Add in the Receipt for Production window, and then accept the system message.

2-2-9 What is the stock status for the finished product P10003 and the component A00003?

Choose Inventory Inventory Reports Inventory Status

P10003 A00003

In Stock

Committed

Ordered

2-2-10 Manufacturing is over. Close the production order


Choose Last Data Record icon.

Change Status to Closed

Choose Update.

2-2-11 Create the delivery of the 5 PC Sets to the sales order of exercise 2-2-1.

Choose Sales – A/R Delivery

Field Name Value

Customer C20000

Copy from Sales Orders

Choose your sales order.

In the Draw Document Wizard, choose Finish.

Add your delivery.

Questions on Production Concepts

Review Questions

1. What are the steps in the production process? 2. What is the initial status of a production order? 3. What is the significance of the status Released? 4. What are the four types of bills of material? 5. Which bills of material are used in production orders? 6. What is the difference between an assembly and sales bill of materials? 7. What categories must an item master have if you plan to produce and sell this finished

product? 8. What category must items have that are components in a sales or assembly BOM? 9. When is a template bill of materials used? 10. What is a phantom item? 11. What are the three types of production orders? When are they used? 12. What is the difference between manual components and backflushed components? 13. What is the significance of reporting completion for a production order? 14. When a disassembly production order is complete, what items are added to the inventory

and what is removed from stock? How does this differ from a standard production order? 15. What posting is made to an inventory account when components are issued for

production? 16. What postings are made when a finished item is received into inventory from production?

Extend your knowledge questions 1. You need to create a production order to re-engineer an item returned for repair. What

type of production order would you use? How would you enter the components needed? 2. You are advising a business that purchases junked appliances and resells parts for those

appliances. What type of production orders would be best for them to use? 3. What documents in SAP Business One would you create to produce a finished product

from a multi-level bill of materials? 4. How do you calculate planned labor costs for a production order? 5. The engineering department has designed a multi-level bill of materials for a new product

you will be producing. However you want to represent this product in a single-level production BOM which you will assign to the production order. What type of item should be used in your single-level BOM to represent the top item from the lower-level bill of materials?

Service - -– Exercise

Unit: Service

Topic: Service covered by Warranty Contract


Create a contract template and assign it to an item master record

Automatically generate a contract and customer equipment card with for a delivered item

Create a service call

Enter a solution

Resolve a service call

In this exercise, you create a contract template and assign it to an item master record. Then you sell and deliver the item with an A/R invoice. You check the contract and customer equipment record that are automatically created. When the customer calls with an issue, you create a service call. You see how the system automatically calculates the response time and resolution time from the contract. You solve the problem and enter the solution in the knowledge base. Then you enter the resolution and close the call.

1-1 Use contract templates.

1-1-1 Create a contract template with the following information.


Name 3 Year Warranty

Duration 36 Months

Contract Type Select Serial Number.

Resolution Time 3 Day(s)

Description 3 year warranty

Select all working days and deselect all non-working days.

Enter 8:00AM in the Start Time fields and 5:00PM in the End Time fields.

Deselect Including Holidays.

Select Parts.

Choose Add.

1-1-2 Enter the contract template in the item master record for S1000 and change the contract template to 3 Year Warranty.

1-2 Post the sale of items with warranty.

1-2-1 Create A/R invoice.


Customer C20000

Item No. S10000

Quantity 2

Select two serial numbers from the available serial numbers.

Add the A/R invoice.

1-2-2 Check customer equipment cards and service contract.

View the customer equipment card for the customer C20000 and the item S10000.

How many customer equipment cards were created?

_________________________________________________________

Search for all service contracts of the type Serial Number for the customer C20000 and the item S10000.

How many service contracts were created?

____________________________________________________________

1-3 Service Call

1-3-1 Create a service call.


Customer C20000

Mfr Serial No. <Select one of the customer equipment cards>

Subject Disconnected from network

Origin Telephone

How long do you have to solve the problem?

___________________________________________________

1-3-2 Post a solution to a problem in the service call.


Content tab text Solution suggested

Closed (Checkbox) Selected

Add another activity for the customer response.


Details Solution confirmed by customer

Closed Checkbox Selected

1-3-3 Enter resolution and close call.

Enter any resolution text, such as “customer rebooted server”, “showed customer how to find IP address”, or “searched for available network connections”.


Call Status Closed

1-3-4 Maintain the solutions knowledge base.


Item S10000

Solution Reboot server

Symptom Disconnected from network

Enter the cause and status on the Description tab.


Cause Network disconnection

Status Publish

Add the solution.

Service - -– Exercise

Unit: Service

Topic: Service Call with Invoice


Create a service call

View the My Service Calls report

Enter expenses for the repair

Create an invoice from within the service call

In this exercise, you create a service call for the same equipment as in the prior exercise. This time, it will need a technician’s visit to solve the problem. You will then play the part of the technician and run My Service Calls to view your assigned service calls. After completing the repair, you enter what repair steps you have taken and what expenses were incurred. You invoice the customer for the work done and mark any items covered by warranty. Then you close the service call and update the solution knowledge base.

2-1 Create a service call for the same equipment as previously. This time the server will need a technician visit and will have expenses not covered by the contract.

2-1-1 Create the service call


Customer C20000


Subject Does not stay connected

Priority High

Origin E-mail

.

2-1-2 Open the service call. View prior solutions to this type of problem.

Unfortunately the suggested solution will not work this time, so you offer to send a technician to the customer to repair the unit.

Enter a remark to indicate that a technician must be sent.

Update the service call.

2-1-3 You now play the part of the technician. Open the My Service Calls report to view calls assigned to you as a technician.

Open the service call from the report.

Enter a resolution. Enter any resolution text stating that you traveled to customer site and replaced the network card.

Enter expenses on the Expenses tab. Create an invoice for the customer. Add items to represent the network card, the hourly service labor charge for 2 hours of work and travel expense for less than 100 miles. Put a 100% discount on the first item because it is covered by the warranty.


Item C00006

Quantity 1

Discount (row) 100

Item LB0002

Quantity 2

Item TR0001

Quantity 1

Choose Add.

Change the call status to Closed and update the service call.

2-1-4 Maintain the knowledge base.


Item S10000

Solution Replace network card

Symptom Cannot connect to network

Enter the following information.


Cause Network card failure

Status Publish

Service - Solution

Unit: Service

Topic: Service covered by Warranty Contract

1-1 Use contract templates.

1-1-1 Create a contract template.

Choose Administration Setup Service Contract Templates.


Name 3 Year Warranty

Duration 36 Months

Contract Type Select Serial Number.

Resolution Time 3 Day(s)

Description 3 year warranty

Select all working days and deselect all non-working days.

Enter 8:00AM in the Start Time fields and 5:00PM in the End Time fields.

Deselect Including Holidays.

Select Parts.

Choose Add.

1-1-2 Enter the contract template in the item master record.

Choose Inventory Item Master Data.

Find the item S10000 and change the contract template to 3 Year Warranty in the Warranty Template field on the General tab.

1-2 Post the sale of items with warranty.

1-2-1 Create A/R invoice.

Choose Sales – A/R A/R Invoice.


Customer C20000

Item No. S10000

Quantity 2

Select the Quantity field and select CTRL+TAB.

Select two serial numbers from the available serial numbers and move to the selected serial numbers.

Select Update.

Choose OK.

Choose Add. Choose Yes to confirm the system message.

1-2-2 Check customer equipment cards and service contract.

Choose Service Customer Equipment Card.

Search for all customer equipment cards for the customer C20000 and the item S10000.

The system created one customer equipment card for every single sold item.

Choose Service Service Contract.

Search for all service contracts of the type Serial Number for the customer C20000 and the item S10000.

The system created only one service contract for all items.

1-3 Service Call

1-3-1 Create a service call.

Choose Service Service Call.


Customer C20000


Subject Disconnected from network

Origin Telephone

You should have three days to solve the problem within the service contract.

Choose Update.

1-3-2 Post a solution to a problem.

Choose Service Service Call and go into the service call. You could also run the My Service Calls report for this to choose your service call document.

Open the service call.

Choose the Activities tab.

Choose Activity.


Content tab text Solution suggested

Closed (Checkbox) Selected

Choose Add. Confirm with Yes.

Add another activity for the customer response.

Choose Activity.


Details Solution confirmed by customer

Closed Checkbox Selected

Choose Add. Confirm with Yes.

1-3-3 Enter resolution and close call.

Choose Resolution tab.

Enter any resolution text, such as “customer rebooted server”, “showed customer how to find IP address”, or “searched for available network connections”.


Call Status Closed

Choose Update.

Choose OK.


Choose Service Solutions Knowledge Base.

Choose Data Add.


Item S10000

Solution Reboot server

Symptom Disconnected from network

Choose Description tab.


Cause Network disconnection

Status Publish

Choose Add.

Service - Solution

Unit: Service

Topic: Service Call with Invoice

2-1 Create a service call for the same equipment as previously. This time the server will need a technician visit and will have expenses not covered by the contract.

2-1-1 Create the service call

Choose Service Service Call.


Customer C20000


Subject Does not stay connected

Priority High

Origin E-mail

You should have three days to solve the problem within the service contract.


2-1-2 Open the service call. View prior solutions to this type of problem.

Choose the Solutions tab.

Choose Recommend.

Unfortunately the suggested solution will not work this time, so you offer to send a technician to the customer to repair the unit.

Choose the Remarks tab.

Enter a remark to indicate that a technician must be sent.

Choose Update.

2-1-3 You now play the part of the technician. Open the My Service Calls report to view calls assigned to you as a technician.

Choose Service Service Reports My Service Calls.

Open the service call from the report.

Enter a resolution on the Resolution tab.

Enter any resolution text stating that you traveled to customer site and replaced the network card.

Enter expenses on the Expenses tab.

Choose Expenses Detail.

Choose New Document.

Choose Invoice.

Add items to represent the network card, the hourly service labor charge for 2 hours of work and travel expense for less than 100 miles. Put a 100% discount on the first item because it is covered by the warranty.


Item C00006

Quantity 1

Discount (row) 100

Item LB0002

Quantity 2

Item TR0001

Quantity 1

Choose Add.

Accept system messages stating that there are charges not allowed under the contract, and choose Continue.

Change the call status to Closed.



Choose Service Solutions Knowledge Base.

Choose Data Add.


Item S10000

Solution Replace network card

Symptom Cannot connect to network

Choose Description tab.


Cause Network card failure

Status Publish

Choose Add.

Questions on Service Concepts

Review Questions

1. What is the main document used for managing service in SAP Business One? 2. What are the two deadlines that are automatically set in a sales call? 3. How are these deadlines calculated? 4. What information is contained in the customer equipment card? 5. What configuration settings control whether a customer equipment card is created

automatically? 6. What is a contract template and how does it relate to a service contract? 7. What controls whether a service contract is created automatically during a delivery to a

customer? 8. What are the two ways a service call can be delegated to the next line of support? 9. What is the solutions knowledge base? 10. What are some useful service reports? 11. What are two prerequisites to closing a service call? 12. What happens to the Closed on time and date when a service call is reopened? 13. What controls the type of documents available to view on the Expenses tab in a service

call?

Extend your knowledge questions 1. Your customer is buying items without serial numbers. You want to set up a contract for

these items at the customer site. What are your options? 2. Your business has loaner items that are sent to a customer while their item is in the shop

being repaired. What master data record in service can be used to track these objects? How would you set these up?

3. Which service reports would you advise a service department manager to use to improve call handling efficiency?

4. You are setting up a service department where the items under contract are sold by a different company. Since you will not have customer equipment cards and service contracts issued automatically at the point of sale, how will adjust the steps in the service process for this business?

MRP - Exercise

Unit: Integrated Case Study Exercise


Complete process steps for multiple processes in SAP Business One.

You will create the master data for a manufactured item that is controlled by serial number. You will create a sales order for the item and then run MRP to fill the demand generated by the sales order. MRP will recommend a purchase order for at least one component as well as the production order. You will create the recommended documents and follow the process steps. You create a goods receipt PO and A/P invoice for the required components. Then you will release the production order and issue components to the production order. When the production is finished, you report completion and receive the finished item into stock. At this point you can deliver the item to the customer and invoice them for the product. After awhile, the customer has a question about the product, so calls your service department. You then create a service call for the item.

1-1 Create all necessary master data for serialized manufactured item that is controlled by MRP.

1-1-1 Create an item master for item Z-1000. This item will be sold, manufactured and stored in inventory. This item is controlled by MRP and has a lead time of 4 days. The item is also managed by serial numbers on every transaction. The basic price for this item is 500. A customer equipment card should be created automatically for this item and there should be a service contract template associated with the item.

1-1-2 Create a component item for Z-1000. Call it Z-2000. This item is also controlled by MRP. This item has a lead time of 2 days. This item is a purchased item that is stored in inventory. The basic price for this item is 50.

1-1-3 Create a production bill of materials for Z-1000. This item is produced from Z-2000 and any other components you choose to add.

1-2 A customer orders a quantity of 2 for this new item. They would like to have it delivered to them one week from today.

1-2-1 Create a sales order for this item.

1-3 Run MRP for this product.

1-3-1 Create a new scenario in the MRP wizard and run MRP for the item.

1-3-2 MRP should suggest a production order for the top level item and at least one purchase order for components. Create the recommended documents.

1-4 Complete the purchasing process for the needed components.

1-4-1 Create a goods receipt PO in reference to the purchase order created by MRP.

1-4-2 Enter an A/P invoice for the component item.

1-5 Complete the required steps in the production process for the Z-1000 item.

1-5-1 Release the production order to the shop floor.

1-5-2 Issue the components to the production order.

1-5-3 Report completion for the production order and receive the finished item into the warehouse. Create serial numbers for the quantity received into inventory.

1-6 Finish the sales process steps for the ordered item.

1-6-1 Create a delivery in reference to the sales order. Choose serial numbers for the quantity in the delivery.

1-6-2 Create an A/R invoice for the delivered item.

1-7 The customer contacts the service department with a question about the product.

1-7-1 Create a service call for the item. Add the appropriate customer equipment card to the service call. Check the response time and resolution time required based on the service contract.

1-7-2 Search for any relevant solutions. Suggest a new solution which works for the customer. Mark that the question has been resolved and close the service call.

Purchasing Exercises

Unit: Variations in Purchasing-A/P

Topic: Freight and Landed Costs


Set up a method for landed costs allocation

Create a landed costs document

Change the default allocation for landed costs

In this exercise, you will set up and use an allocation method for landed costs. Your new vendor is located in a foreign country and will have customs and freight costs for items you purchase. You will create a landed costs document for the shipping costs and allocate them by weight. You will set weight as the default allocation method for landed costs.

1-1 You have a supplier V1008 that is located in the Netherlands. This supplier delivers 10 high resolution scanners (new item T500). You need to set up the allocation for landed costs, the new vendor, and the item master before you receive the items into inventory.

1-1-1 Create or modify an entry for allocation by weight so that it contains

the following data.


Code <any>

Name Weight

Allocation By Weight

Landed Costs Allocation account

<In the UK localization the account is 207045*>

*The landed costs allocation account is an liabilities account found under Other Creditors.

1-1-2 Create a new business partner master for this vendor.


Business Partner Number V1008

Name <Any>

Currency Euro

Address <Any>

1-1-2 Create a new item master for the product.


Item number T500

Description HS Scanner

Price 200

Weight (Tab page Purchasing data)

10,2 kg

1-1-3 The vendor delivers the scanners. Receive the items into inventory.


Vendor V1008

Item number T500

Quantity 10

Goods Receipt PO document number______________________

1-1-4 The vendor sends an invoice for the scanners with the vendor invoice number 27272.

Create an A/P invoice referencing the goods receipt PO:


Vendor V1008

Vendor Reference No. 27272

Posting Date <today’s date>

A/P Invoice number ___________________________

1-1-4 View the current moving average cost for the scanner.


Item number T500

Current moving average cost for this item: ____________________

1-2 Your Vendor S1008 instructed Vendor UPS to arrange the delivery. UPS now bills 340 EUR for transportation costs (shipping, insurance and packaging) for the whole delivery. There is also 110 EUR costs for customs as well. These costs should be included in the cost price of the delivered items.

1-2-1 Create a landed costs document referencing the goods receipt PO:


Vendor V1008

Enter the broker UPS into the Broker field.

If the vendor UPS does not exist, create the vendor at this point.


Code UPS

Name UPS

Currency Euro

1-2-2 The customs costs are 110 Euro. Add the customs costs into the Actual Customs field on the Items tab.

1-2-3 Allocate the shipping costs by weight.

1-2-4 The default setting for allocating costs was by quantity. How can you set weight as the default setting for allocating costs?

________________________________________________________

1-2-5 What is the total cost allocated to the items?

________________________________________________________

1-2-6 Save the landed costs document.

Landed Costs document number __________________________

1-2-7 Has the landed costs document affected the cost price of the item?

Cost price: _____________________________

1-2-8 Open the landed costs document to view the journal entry that was created automatically.

1-2-9 Which G/L account is used for landed costs?

______________________________________

Where is this account assigned as the default?

_______________________________________

Purchasing Purchasing Solutions

Unit: Variations in Purchasing-A/P

Topic: Freight and Landed Costs

1-1 You have a supplier V1008 that is located in the Netherlands. This supplier delivers 10 high resolution scanners (new item T500). You need to set up the allocation for landed costs, the new vendor, and the item master before you receive the items into inventory.

1-1-1 Enter the settings for landed costs.

Choose Administration Setup Purchasing Business Partner Landed Costs Create or modify an entry for allocation by weight so that it contains the following data.


Code <any>

Name Weight

Allocation By Weight

Landed Costs Allocation account

<In the UK localization the account is 207045*>

*The landed costs allocation account is an liabilities account found under other creditors.

1-1-2 Create a new business partner master for this vendor.

Choose Business Partners Business Partner Master Data Change to Add mode.


Business Partner Number V1008

Name <Any>

Address <Any>

1-1-2 Create a new item master for the product. Choose Inventory Item Master Data. Change to Add mode.


Item number T500

Description HS Scanner

Price 200

Weight (Tab page Purchasing data)

10,2 kg

1-1-3 The vendor delivers the scanners. Receive the items into inventory.

Choose Purchasing- A/P Goods receipt PO


Vendor V1008

Item number T500

Quantity 10

Add the goods receipt PO.

Goods Receipt PO document number______________________

1-1-4 The vendor sends an invoice for the scanners with the vendor invoice number 27272. Enter an A/P invoice.

Choose Purchasing- A/P A/P Invoice


Vendor V1008

Vendor Reference No. 27272

Posting Date <today’s date>

Select Copy from.

Select Goods Receipt PO and then select the relevant document.

Choose Finish in the Draw Document wizard.

Choose Add.

A/P Invoice number ___________________________

1-1-4 View the current moving average cost for the scanner.



Item number T500

Inventory data tab.

Current moving average cost for this item: ____________________

1-2 Your Vendor S1008 instructed Vendor UPS to arrange the delivery. UPS now bills 340 EUR for transportation costs (shipping, insurance and packaging) for the whole delivery. There is also 110 EUR costs for customs as well. These costs should be included in the cost price of the delivered items.

1-2-1 Choose Purchasing- A/P Landed costs


Vendor V1008

Select Copy From.

Select Goods Receipt PO from the list and select the relevant document.

The row from the Goods Receipt PO is copied into the Landed Costs document.

Enter the broker UPS into the Broker field.

Broker UPS

If the vendor UPS does not exist, the Choose from List appears. Select New to create the business partner master record for UPS. Enter the following data in the Business Partner Master Data window.


Code UPS

Name UPS

Currency Euro

1-2-2 The customs costs are 110 Euro. Add the customs costs into the Actual Customs field on the Items tab. Confirm any system message that the actual customs vary from projected costs and that the differences should be divided proportionately.

1-2-3 Allocate the shipping costs by weight.

Select tab page Costs.

Enter 340 in the amount field in the line Shipping.

In the same line, select Weight in the dropdown for the column Allocation by.

1-2-4 The default setting for allocating costs was by quantity. How can we set weight as the default setting for allocating costs?

Choose the New Landed Costs button.

Select Weight from the dropdown box in the Allocation by column on the row for Shipping.

Choose Update.

Choose OK.

1-2-5 View the total costs (shipping and customs) allocated to the items.

Choose the Items tab.

Scroll to the right to view the Total Costs column.

To view just the shipping costs, scroll back to the Allocated Costs Value column.

1-2-6 Save the landed costs document.

Choose Add.

Landed Costs document number __________________________

1-2-7 Has the landed costs document affected the cost price of the item?



Item number T500

Inventory data tab.

View the cost price.

Cost price: _____________________________

1-2-8 Open the landed costs document to view the journal entry that was created automatically.

Choose Purchasing- A/P Landed costs and call up the last document.

Choose Accounting.

Choose the link to the left of the Journal Remark field.

1-2-9 Which G/L account is used for landed costs?

______________________________________

Where is this account assigned as the default?

_______________________________________

Exercises

Unit: Variations in Purchasing – A/P

Topic: Purchasing for Multiple Locations


Create a split purchase order

Set up the system to allow split purchase orders

Complete the purchasing process with split purchase orders

In this exercise, you will create one purchase order for items needed for two different warehouses. This purchase order will automatically split into two purchase orders. You will receive the items into stock and create one A/P invoice for the all the items.

You will also review how the default for split purchase orders is set in the system.

2-1 You want to place an order with your vendor, V10000 for items to be delivered to two different warehouses. Open a purchase order document and enter the vendor number. You order two units of items C00010, and C00011 to be sent to the main warehouse of your company. You also need to order item A00001 for a different warehouse. Create one purchase order that can be sent to your vendor, but that will split into two purchase orders in the system.

2-1-1 Enter the following data. If the warehouse field does not appear, use Form Settings to add the column to the display.


Vendor V10000

Item Use the Tab key to choose items C00010 and C00011

Quantity 2 for each item

Warehouse 01

Item A00001

Quantity 4

Warehouse 02

2-1-2 Set the indicator to automatically split the purchase order.

Which indicator must be set in the purchase order containing different warehouses to get different purchase orders, one for each warehouse?

_______________________________________________________

Save the purchase order.

Purchase Order number __________________________

2-1-3 How is this indicator defaulted into a purchase order?

________________________________________________________

2-2 The delivery of your purchase order for your main warehouse has arrived. The vendor's delivery document refers to your purchase order number. Enter the goods receipt PO with reference to the purchase order document. Enter the vendor number and display all the open purchase order documents.


Vendor V10000

2-2-1 You want to choose only the purchase order that was delivered to warehouse 01. To find the right purchase order, you should activate the Ship to field in the List of Purchase Orders by using the Form Settings.

Choose the correct document from the list and copy it to the goods receipt PO. Goods Receipt PO number: __________________________

2-2-2 You receive an additional delivery in warehouse 02, however only 2 of the 4 printers have arrived.

Create an additional goods receipt by referring to your purchase order.


Vendor V10000

Choose the correct document from the list of purchase orders. Goods Receipt PO number _________________________

2-2-3 Your vendor has also informed you that no additional deliveries are expected. Find the open purchase order and make sure that the system reduces the open purchase order quantity accordingly.

In order to check the result, return to the Inventory Status report or display the stock situation in the item master record.

2-3 V10000 sends you an invoice for both of the above deliveries. Enter the invoice into the system.

2-3-1 Include all the items, referring to the two deliveries when you enter the invoice. Before you save the invoice, define a Vendor Reference Number for this transaction, for example 00125/04

A/P Invoice number: _______________________

Solutions

Unit: Variations in Purchasing – A/P

Topic: Purchasing for Multiple Locations

2-1 You want to place an order with your vendor, V10000 for items to be delivered to two different warehouses. Open a purchase order document and enter the vendor number. You order two units of items C00010, and C00011 to be sent to the main warehouse of your company. You also need to order item A00001 for a different warehouse. Create one purchase order that can be sent to your vendor, but that will split into two purchase orders in the system.


2-1-1 Enter the following data. If the warehouse field does not appear, use Form Settings to add the column to the display.


Vendor V10000

Item Use the Tab key to choose items C00010 and C00011

Quantity 2 for each item

Warehouse 01

Item A00001

Quantity 4

Warehouse 02

2-1-2 Set the indicator to automatically split the purchase order.

Which indicator must be set in the purchase order containing different warehouses to get different purchase orders, one for each warehouse?

Set the indicator Split Purchase Order on the Logistics tab page of the purchase order.

Choose Add to save the purchase order.

Purchase Order number __________________________

2-1-3 How is this indicator defaulted into a purchase order?

The indicator can be set to default in: Administration System Initialization Document Settings Per Document Purchase Order Split Purchase Order

2-2 The delivery of your purchase order for your main warehouse has arrived. The vendor's delivery document refers to your purchase order number. Enter the goods receipt PO with reference to the purchase order document. Enter the vendor number and display all the open purchase order documents.

Choose Purchasing-A/P Goods Receipt PO.


Vendor V10000

Choose Copy from Purchase Orders

2-2-1 You want to choose only the purchase order that was delivered to warehouse 01. To find the right purchase order, you should activate the Ship to field in the List of Purchase Orders by using the Form Settings.

On the last number line appearing, use the drop down in the Field Name field and choose Ship to Choose Update, then OK. Close the window. Choose Copy from Purchase Orders again. The field Ship to field now appears in the rows. Choose the correct document from the list. Choose Finish. Add the goods receipt PO. Goods Receipt PO number: __________________________

2-2-2 You receive an additional delivery in warehouse 02, however only 2 of the 4 printers have arrived.

Create an additional goods receipt by referring to your purchase order. Purchasing-A/P Goods Receipt PO


Vendor V10000

Choose Copy from Purchase Orders. Choose the correct document from the list. Draw Document Wizard: select Use Row Exchange Rate from Base

Document and Customize. Choose Next. Change the quantity to 2. Choose Finish Choose Add Choose Yes. Goods Receipt PO number _________________________

2-2-3 Your vendor has also informed you that no additional deliveries are expected. Find the open purchase order and make sure that the system reduces the open purchase order quantity accordingly.

Choose Purchasing-A/P Purchasing Reports Open Items List. Choose Purchase Orders in the Open documents dropdown list. Select the correct PO and close it by choosing Data Close from the menu bar or right mouse-click Close. Choose Yes (system message). In order to check the result, return to the Inventory Status report or display the stock situation in the item master record on the Inventory Data tab.

2-3 V10000 sends you an invoice for both of the above deliveries. Enter the invoice into the system. Choose Purchasing-A/P A/P Invoice


Vendor V10000

2-3-1 Include all the items, referring to the two deliveries when you enter the invoice. Before you save the invoice, define a Vendor Reference Number for this transaction, for example 00125/04

Choose Copy From Goods Receipt PO. Select the two goods receipt POs with all items, enter a posting date and a vendor reference number, and choose Add. Choose Yes (system message). A/P Invoice number: _______________________

- Exercises

Unit: Variations in Sales – A/R

Topic: Pre Sales Process - Sales Opportunities


Create a new lead

Create a sales opportunity for the lead

Create a quotation from the sales opportunity

Set up activities for future actions

Run an analysis of the sales pipeline

In this exercise, you create a lead business partner master for a potential customer. You then create a sales opportunity for this lead. You explore the functionality of the sales opportunity for managing the presales process. You create a quotation and an activity from the sales opportunity. You view the dynamic opportunity analysis. Then you test whether leads and/or sales opportunities can be deleted.

1-1 Create Schneider & Sons as a new lead in the system and assign Marc Seller as the sales employee.

1-1-1 Enter the following information for the lead.


Code L20005

Type Lead

Name of Lead Lynn Lee

Sales Employee Sophie Klogg

1-1-2 Create a sales opportunity for the new lead. Enter any relevant background information (level of interest, source, and so on) and classify the opportunity as a Lead (first stage), Start Date: today, Closing Date: today + 2 days. You expect negotiations to be completed in three months with an amount of 10000 units of local currency.


BP Code L20005

Predicted Closing in (Potential tab)

3 months

Potential Amount (Potential tab page)

10,000

Interest range (Potential tab page)

Any

Information Source ( General tab page)

Any

Stage (Stages tab page) Lead

Start Date (Stages tab page) Today’s date

Closing Date (Stages tab page) Today’s date + 2 days

What is the percentage likelihood of closing the sale?

___________________________________________

1-1-3 After an initial meeting (start date: today's date + 3 days) with the lead, you now have more specific information on the items and potential sales value. The potential sales value increases to 12000. Update the Potential Amount in the line and enter all relevant information that you got in the meeting as an Activity.


Start Date Today’s date plus 3 Days

Closing Date Today’s date plus 3 Days

Stage (in the row) 1st meeting

Potential Amount (in the row) 12000

Activities Select the orange arrow in the Activities column for the row.

Search for opportunities associated with this lead.

Create an activity for the meeting and add the meeting.


___________________________________________

Save the changes to your opportunity.

1-1-4 Create a quotation from the sales opportunity.

In a second meeting (current date + 4 days), you create a quotation for the lead for items A1003 (100 units) and A1004 (100 units). Add a stage Quotation and assign the created quotation to the stage of the above sales opportunity (Link). Note how the potential sales change based on the total value of the linked quotation.




Stage Quotation

What is the percentage likelihood for closing the sale?

________________________________

Enter the following information in the quotation:


Lead L20005

Item 1 A00005

Quantity 10

Item 2 C00010

Quantity 10

Save the quotation. Update and save the opportunity.

1-1-5 One week later you will ask the customer about his decision regarding the quotation. The system should remind you to set up a phone call with the customer. How do you set up this reminder?

_____________________________________________________

Create the document used as a reminder.

1-1-6 Now, take a look at how this sales opportunity has developed in the opportunities pipeline. Define any necessary restrictions (such as by sales employee or creation date). Take a look at the Dynamic Opportunity Analysis. You can configure the Dynamic Opportunity Analysis window by using the Settings button and you can play back the progression of the selected opportunities.

Select Sophie Klogg as the Sales Employee.

1-1-7 Can you delete the sales opportunity from the system?

______________________________________________

1-1-8 Can you delete the business master record of the lead from the system?

_______________________________________________

- Solutions


Topic: Pre Sales Process - Sales Opportunities

1-1 Create Schneider & Sons as a new lead in the system and assign Marc Seller as the sales employee.

1-1-1 Choose Business Partners Business Partner Master Data.



Code L20005

Type Lead

Name of Lead Lynn Lee

Sales Employee Sophie Klogg

Choose Add.

1-1-2 Create a sales opportunity for the new lead. Enter any relevant background information (level of interest, source, and so on) and classify the opportunity as a Lead (first stage), Start Date: today, Closing Date: today + 2 days. You expect negotiations to be completed in three months with an amount of 10000 units of local currency.

Choose Sales Opportunities Sales Opportunity.


BP Code L20005

Predicted Closing in (Potential tab) 3 months

Potential Amount (Potential tab page) 10,000

Interest range (Potential tab page) Any

Information Source (General tab page) Any

Stage (Stages tab page) Lead

Start Date (Stages tab page) Today’s date

Closing Date (Stages tab page) Today’s date + 2 days


___________________________________________

Sales Opportunity Document Number __________________________

Choose Add.

1-1-3 After an initial meeting (start date: today's date + 3 days) with the lead, you now have more specific information on the items and potential sales value. The potential sales value increases to 12000. Update the Potential Amount in the line and enter all relevant information that you got in the meeting as an Activity.

Search for opportunities associated with this lead.

Choose Sales Opportunities Sales Opportunity. Choose Data Find. Search for opportunities of the lead by entering the code of the lead and choosing the Find button. On the Stages tab page choose right mouse-click Add Row and enter the data below into this new row.




Stage (in the row) 1st meeting

Potential Amount (in the row) 12000

Activities Select the orange arrow in the Activities column for the row.

Create an activity for the meeting and add the meeting.


___________________________________________

Choose Update and OK to save the changes to your opportunity.

1-1-4 Create a quotation from the sales opportunity.

In a second meeting (current date + 4 days), you create a quotation for the lead for items A1003 (100 units) and A1004 (100 units). Add a stage Quotation and assign the created quotation to the stage of the above sales

opportunity (Link). Note how the potential sales change based on the total value of the linked quotation.

Choose Sales Opportunities Sales Opportunity. Choose Data Find. Search for opportunities of the lead by entering the code of the lead and choosing the Find button. On the Stages tab page choose right mouse-click Add Row (or use the menu selection Data Add Row). Enter the data below into this new row.




Stage Quotation

What is the percentage likelihood for closing the sale?

________________________________

To create the quotation from the opportunity, select the symbol in the Document type column. Select the document type Sales Quotations. Press the Tab key in the column Doc. No., and choose New.


Lead L20005

Item 1 A00005

Quantity 10

Item 2 C00010

Quantity 10

Choose Add to save and answer the question on updating the amount and gross profit with Yes. The Potential Sales is now as big as the total value of the linked quotation. Choose Update and OK.

1-1-5 One week later you will ask the customer about his decision regarding the quotation. The system should remind you to set up a phone call with the customer. How do you set up this reminder?

You can use activities. To assign an activity to a stage in the opportunity, select the orange arrow in the Activity column on the Stages tab page. Create the activity and choose Add.

Choose Update and OK to save the changes to the sales opportunity.

1-1-6 Now, take a look at how this sales opportunity has developed in the opportunities pipeline. Define any necessary restrictions (such as by sales employee or creation date). Take a look at the Dynamic Opportunity Analysis. You can configure the Dynamic Opportunity Analysis window by using the Settings button and you can play back the progression of the selected opportunities.

Choose Sales Opportunities Sales Opportunities Report Opportunities Pipeline. Select Sales Employee and then choose Sophie Klogg. Choose OK in the Sales Employee window. In the Opportunities Pipeline window, choose Refresh. To take a look at the opportunity analysis. Choose Goto Dynamic Opportunity Analysis (or right mouse-click Dynamic Opportunity Analysis.)

1-1-7 Can you delete the sales opportunity from the system?

Yes, you can delete the sales opportunity as long as it is open.

Open your opportunity. Choose Data Remove or right mouse-click Remove.

1-1-8 Can you delete the business master record of the lead from the system?

Yes, you can delete the lead, after you have deleted the sales opportunity. However you cannot delete the sales quotation from the system that you have created for the lead.

Choose Business Partners Business Partner Master Data and find your lead.

Choose Data Remove or right mouse-click Remove.

Sales - Exercises


Topic: Presales Process – Additional Exercises on Quotations


Create a sales quotation

Copy a sales quotation

Create a sales order referencing the quotation

In this exercise, you create a sales quotation with several items for an existing customer. You give discounts on the row and total levels. You then copy the information from this sales quotation into a quotation for a different customer. You create a sales order which references the quotation and then create a purchase order for the sales items.

.

2-1 Create a sales quotation.



Customer C42000

Items C00008

C00009

C00010

Quantity 5 of each

2-1-2 The customer would like to order item C00010 in red. If the field free text does not appear in the rows, use form settings to add the field.

2-1-3 Enter a discount for one of the items:


Discount % 8

2-1-4 Enter a discount of 5% for the entire document:


In front of the %Discount field 5

Sales Quotation Document Number ______________________

2-2 You would like to use the same quotation for a different customer. Copy the quotation.

2-2-1 How do you copy this quotation?

_______________________________________________________

_______________________________________________________

2-2-2 Is all the data copied?

________________________________________________________

Choose a different customer (such as C20000) to test whether the data is copied.

2-3 Create a sales order for your customer C42000 based on the sales quotation. (Note: Do not save the order until step 2-3-3.)

2-3-1 Enter the information below in the sales order and copy the quotation:


Customer C42000

Delivery Date <current date>

Do not save the order yet.

2-3-2 Two of the items need to be ordered from a vendor, C00008 and C00010. What indicator must be set to order the items from within the sales order?

________________________________________________________

2-3-3 Save the sales order and create a purchase order for the items from within the sales order.

Sales Order Number _____________________________

2-3-4 Call up the quotation you referenced from the order. Can you still change the data?

__________________________________________________________

Solutions

Unit: Variations in Sales-A/R

Topic: Presales Process – Additional Exercises on Quotations

2-1 Create a quotation. Choose Sales-A/R Sales Quotation.



Customer C42000

Items C00008

C00009

C00010

Quantity 5 of each

2-1-2 The customer would like to order item C00010 in red. Add the relevant information to the item text .

If the field free text does not appear in the rows, use form settings to add the field.

Choose Form Settings from the tool bar. On the Table Format tab, select the Visible and Active checkboxes for Free Text.

2-1-3 Enter a discount of 8% for one of the items.

Enter a discount for one of the items:


Discount % 8

2-1-4 Enter a discount of 5% for the entire document:


In front of the %Discount field 5

Sales Quotation Document Number ______________________ Choose Add.

2-2 You would like to use the same quotation for a different customer. Copy the quotation.

2-2-1 How do you copy this quotation?

Open the previous quotation by one of the two following methods:

1) Choosing Sales-A/R Sales Quotation, then Data Last Data Record or the respective button in the tool bar, or

2) Choosing Sales Sales Reports Open Items List and display the open quotations. Open the most recent quotation by choosing the arrow in the Doc No. field.

When you have opened the quotation, choose Data Duplicate from the menu bar or right mouse-click Duplicate.

2-2-2 Is all the data copied?

Choose a different customer (such as C20000) and then press Tab. The message “Update document rows according to new BP's data?” appears.

If you choose Yes, the system adjusts the row data for the current business partner and the row discounts are deleted. If you choose No, it copies the document row data in full. Regardless of your answer, the discount on the whole document is deleted.

Choose Add.

2-3 Create an order for your customer C42000 based on the sales quotation. (Note: Do not save the order until step 2-3-3.)

2-3-1 Choose Sales-A/R Sales Order.


Customer C42000

Choose the Copy from button and then choose Sales Quotation Select the quotation and copy all the items by selecting Choose. Accept the choices in the Draw Document Wizard by choosing Finish.

Set the delivery date for the order to the current date and confirm the system message.

Do not save the order yet.

2-3-2 Two of the items need to be ordered from a vendor, C00008 and C00010. Choose the Logistics tab and set the Purchase Orders indicator.

2-3-3 Choose Add. In the Purchase Order Confirmation window, select the items C00008 and C00010 and choose the button >> icon. Sales Order Number _____________________________ Choose Add.

2-3-4 Call up the quotation you referenced from the order. Can you still change the data?

Open the last sales order. Choose Goto Base Document. You can no longer change the data in the quotation.

Sales - Exercises


Topic: Drop Ship


Create a sales order with items that will be shipped directly from the vendor to the customer

Create an A/P invoice for the drop shipped items

Create an A/R invoice for both the drop shipped items and the items that you ship to the customer

In this exercise, you explore the option to have items shipped directly to a customer from one of your vendors. To do this, you must have set up a drop ship warehouse.

You will assign the drop ship warehouse to the appropriate rows in the sales order, and then the sales order will prompt you to create a purchase order to the vendor for those items.

You create an A/P invoice for the drop shipped items. You then create an A/R invoice with all the items in order to see that items that are drop shipped can be invoiced with items that are delivered from your warehouse.

3-1 Create a new customer master record for Fitness Forum.


Code C2003

BP Type Customer

Name Fitness Forum



Enter information for the bill to address:


Name Fitness Forum


City <Any>

Zip Code <Any>

Country <Domestic>

Enter information for the ship to address:


Name Fitness Forum


City <Any>

Zip Code <Any>

Country <Domestic>

Save the data record.

3-2 Create a sales order for your new customer C2003.

3-2-1 Create a sales order for this customer with the three items listed below. One of the items (C00001) should be delivered directly from the vendor.


Customer C2003


Item C00001

Quantity 3

Item C00002

Quantity 4

Item C00003

Quantity 5

3-2-2 Assign the drop ship warehouse (03) to the row with item C00001.

If the warehouse field is not visible, use the Form Settings icon to add the Whse column. Save the order. Sales Order Number _______________________________________

The system now lets you create a purchase order for item C00001 by transferring the item from the left to the right side in the Purchase Confirmation window.

3-2-3 Open the sales order you just created. By using Form Settings, add the column Target Doc to the table. From here, navigate to the associated purchase order, and pay attention to the ship-to address. Which address displays?

________________________________________________________

3-2-4 Your vendor V1010 has delivered the material directly to your customer and sends the invoice to you. Enter the A/P invoice referring to the purchase order. Do any stock postings take place?

_________________________________________________________

3-2-5 You send the other items to the customer and attach the invoice for the entire sales order. Create the A/R invoice referring to the sales order.

A/R invoice number ________________________________

Do any stock postings for the drop ship item take place?

_______________________________________________________

Reopen the A/R invoice you just created. View the journal entry. Do any stock postings for the drop ship item take place?

________________________________________________________

- Solutions

Unit: Variations in Sales-A/R

Topic: Drop Ship

3-1 Create a new customer master record for Fitness Forum.

Choose Business Partners Business Partner Master Data. Change to Add mode.


Code C2003

BP Type Customer

Name Fitness Forum

Group Small accounts

Currency <Your local currency> Choose the Addresses tab page. To enter the bill-to address, choose Define New under Bill To.


Name Fitness Forum


City <Any>

Zip Code <Any>

Country <Domestic> To enter the ship-to address, choose Define New under Ship To.


Name Fitness Forum


City <Any>

Zip Code <Any>

Country <Domestic> Choose Add to save the data record.

3-2 Create a sales order for your new customer C2003.

3-2-1 Create a sales order for this customer with the three items listed below. One of the items (C00001) should be delivered directly from the vendor.

Choose Sales-A/R Sales Order.


Customer C2003


Item C00001

Quantity 3

Item C00002

Quantity 4

Item C00003

Quantity 5

3-2-2 Assign the drop ship warehouse (03) to the row with item C00001.

If the warehouse field is not visible, use the Form Settings icon to add the Whse column. Add the order. Sales Order Number _______________________________________

The system now lets you create a purchase order for item C00001 by transferring the item from the left to the right side in the Purchase Confirmation window.

(If the Item Availability Check window appears, choose Continue to get to the Purchase Confirmation window.)

Choose Add to save the document.

(Two trouble shooting tips:

If the Purchase Confirmation window did not appear, re-open your sales order and double-check that you have assigned the correct drop ship warehouse to the row.

If you closed the Purchase Confirmation window before creating the purchase order, re-open the sales order and choose Add. The window will reappear so that you can create the purchase order.)

3-2-3 Open the sales order you just created. By using Form Settings, add the column Target Doc to the table. From here, navigate to the associated

purchase order, and pay attention to the ship-to address. Which address displays? It is the customer’s ship-to address.

3-2-4 Your vendor V1010 has delivered the material directly to your customer and sends the invoice to you. Enter the A/P invoice referring to the purchase order. Do any stock postings take place?

Choose Purchasing-A/P A/P Invoice Choose Vendor V1010 Copy from Purchase Order Choose your purchase order from the list. Enter today’s date as the posting date and choose Add. Confirm the system message.

To navigate to the corresponding journal entry: in A/P Invoice go to the Accounting tab page, and select the orange arrow beside Journal Remark. There is no stock account involved.

The answer can be checked with: Inventory Inventory Reports Inventory Posting List: The Drop Ship Warehouse is not selectable in the By Warehouse tab.

3-2-6 You send the other items to the customer and attach the invoice for the entire sales order. Create the A/R invoice referring to the sales order. Do any stock postings for the drop ship item take place?

Choose Sales-A/R A/R Invoice. Choose Customer C2003 Copy from Sales Order A/R invoice number ________________________________ Add the invoice. Confirm the system message.

Reopen the A/R invoice you just created. View the journal entry from the A/R invoice’s Accounting tab Do any stock postings for the drop ship item take place? No stock postings for the drop ship item take place.

Exercises


Topic: Down Payment Processing


Review the setup for down payment processing

Create a sales order which requires a down payment

Create a downpayment request

Receive a down payment

Delivery and invoice the item

In this exercise, you begin by viewing the set up necessary for down payment processing.

You create a sales order which requires a down payment. You create a down payment request. Then you receive the down payment. You ship and invoice the item. Then you review the accounting postings that occurred in the down payment process.

4-1 You are selling a product which requires a down payment.

4-1-1 Which two accounts assigned in the business partner master are used for down payment processing? What are the account numbers?

Note the account numbers used in your system for your customer C3000:

__________________________________________________________

If no account number appears for the down payment interim account go through the following steps:

4-1-1-1 Check that these asset accounts are created in your company database. Choose Administration Setup Financials Edit Chart of Accounts Scroll down the section with the control accounts for customers. In the UK database, this section is under Trade Debtors. Select the Trade Debtors (or appropriate) account, and then choose Add Sub-Level Account. Ask your instructor for appropriate account numbers to add. In the UK database, the account number should be: 140080 Down Payment Interim Account

If the down payment clearing (or advance customer payments) account is missing, follow the same steps but add an account in the liabilities drawer with an appropriate account number, such as 202010 in the UK database.

4-1-1-2 Assign the new account as the down payment interim account in the account determination window. Choose Administration Setup Financials G/L Account Determination Choose the Sales tab and the General sub-tab. Scroll down to the field Down Payment Interim Account. Enter the new account number. If the down payment clearing account is also unassigned, assign it here as well.

4-1-1-3 Assign the account(s) to the business partner C30000. Choose the Accounting tab. Enter the appropriate account number(s) in the Down Payment Clearing Account and Down Payment Interim Account fields.

4-1-2 Create a sales order document that requires a down payment and enter the customer number C30000.



Customer C30000

Delivery Date Any date you choose


Item Description S10000

Quantity 1


Sales Order Number ________________________

4-2 Create a down payment request associated with the sales order.

4-2-1 Enter the following information in the down payment request.


Customer C30000

Copy the information from the sales order into the down payment request.

Set the down payment amount to 10% of the total.

Down Payment Request Number _____________________

4-2-2 Receive the down payment for customer C30000.

Select the row with the down payment request.


Choose the Cash tab.

Right click in the Total field and choose Copy Balance Due.

Choose OK.

Choose Add.

4-3 Ship and invoice the customer for the product

4-3-1 Create a delivery from the sales order.

Delivery document number: _______________________

Choose a serial number and save the delivery.

4-3-2 Create an A/R invoice from the delivery.

Associate the down payment request to the A/R invoice.

Has the down payment been subtracted from the total due? __________________________________

A/R invoice number: __________________________

4-3-3 Review the accounting postings made by adding the invoice.

Which accounts associated with down payment processing appear in the document?

_______________________________________________________

Solutions


Topic: Down Payment Processing

4-1 You are selling a product which requires a down payment.

4-1-1 Which two accounts assigned in the business partner master are used for down payment processing? What are the account numbers?

Choose Business Partners Business Partner Master Data Enter C30000 in the Code field and choose Find. Choose the Accounting tab.

Answer: The down payment clearing account and the down payment interim account are used in down payment processing. When the down payment request is added, the total amount is debited to the interim account and the net amount is posted to the down payment clearing account.

Note the account numbers used in your system here:

__________________________________________________________

If no account number appears for the down payment interim account go through the following steps:

4-1-1-1 Check that these accounts are created in your company database. Choose Administration Setup Financials Edit Chart of Accounts Select Assets and choose OK. Scroll down the section with the control accounts for customers. In the UK database, this section is under Trade Debtors. Select the Trade Debtors (or appropriate) account, and then choose Add Sub-Level Account. Ask your instructor for appropriate account numbers to add. In the UK database, the account number should be: 140080 Down Payment Interim Account Then choose OK.

If the down payment clearing (or advance customer payments) account is missing, follow the same steps but add the account in the liabilities drawer with an appropriate account number, such as 202010 in the UK database.

4-1-1-2 Assign the new account as the down payment interim account in the account determination window. Choose Administration Setup Financials G/L Account Determination Choose the Sales tab and the General sub-tab. Scroll down to the field Down Payment Interim Account. Enter the new account number. Choose Update and then OK.

If the down payment clearing account is also unassigned, assign it here as well.

4-1-1-3 Assign the account(s) to the business partner C30000. Choose Business Partners Business Partner Master Data Enter C30000 in the Code field and choose Find. Choose the Accounting tab. Enter the appropriate account number(s) in the Down Payment Clearing Account and Down Payment Interim Account fields. Choose Update and then OK.

4-1-2 Create a sales order document that requires a down payment and enter the customer number C30000.




Customer C30000

Delivery Date Any date you choose


Item Description S10000

Quantity 1


Choose Add.

Sales Order Number ________________________

4-2 Create a down payment request associated with the sales order.

Choose Sales – A/R A/R Down Payment Request

4-2-1 Enter the following information in the down payment request.


Customer C30000

Choose Copy From to copy information from the sales order. Choose Sales Orders. Select the sales order you just created. Then choose Finish in the Draw Document Wizard.

Set the down payment amount to 10% of the total.

Add the down payment request.

Down Payment Request Number _____________________

4-2-2 Receive the down payment.

Choose Banking Incoming Payments Incoming Payments

Enter C30000 as the customer code.

Select the row with the down payment request.


Choose the Cash tab.

Right click in the Total field and choose Copy Balance Due.

Choose OK.

Choose Add.

Confirm the system message.

4-3 Ship and invoice the customer for the product

4-3-1 Create a delivery.

Choose Sales – A/R Delivery

Enter the customer number C30000.

Choose Copy from and then Sales Orders.

Select the sales order you created.

Then choose Finish in the Draw Document Wizard.

Delivery Document Number _______________________

Add the delivery.

Since S10000 is a serialized item, the Serial Numbers window will appear. Select a serial number from the available serial numbers and move it to the selected serial numbers area. Choose Update and then OK.

Choose Add in the Delivery window.


4-3-2 Create an A/R invoice.

Choose Sales – A/R A/R Invoice Enter C30000. Choose Copy from and then Deliveries. Then choose Finish in the Draw Document Wizard.

Select the down payment request by clicking on the Browse button to the left of the Total Down Payment field. Select the down payment request in the Down Payments to Draw window. Choose OK.

Has the down payment been subtracted from the total due? Yes.

A/R Invoice Number __________________________________

Add the A/R invoice. Choose Yes to confirm the system message(s).

4-3-3 Review the accounting postings made by adding the invoice. Notice that both the down payment interim account and down payment clearing account appear in the document.

Re-open the A/R invoice you just created. Choose the Accounting tab. Choose the link arrow to the left of the Journal Remark field.

Exercises


Topic: Selling Services


Sell services without an item master

Sell services with an item master

In this exercise, you explore the two ways that you can sell services. You can sell services without an item master or you can set up a service as an item master so that it can be sold on the same document with other items.

5-1 Your customer C42000 would like you to install the computer system they are purchasing from you. This is not a service you usually provide, but you are willing to provide excellent service to a frequent customer.

5-1-1 Enter the following information in the sales order:


Customer C42000



Service Description PC setup service

G/L Account Number Use a sales revenue account (such as 400010 in the UK)

Total Price 2000

Save the sales order. Sales Order Document number ___________________________

5-1-2 After you provide the service, create an invoice for the customer. The invoice date is today. Create an A/R Invoice to bill for the service provided.

A/R invoice document number __________________________

5-1-3 Re-open the invoice you created and view the journal entry.

What type of posting is made to the customer account to indicate the customer owes us money: debit or credit?

_______________________________________________


_______________________________________________

5-2 Create a service as an item and then sell it on a sales order with other items.

5-2-1 Create an item master record with the following information for your new service.


Item No. S22000

Item Description PC Setup Service

Inventory Item Checkbox Uncheck

Purchased Item Checkbox Uncheck

Item Type Labor

Item Group (define new) Installation

Base Price List Unit Price 100

Add the new item.

5-2-2 Use the new item in the sales process, beginning with a sales order.


Customer C30000



Item S22000

Quantity 1

Item P10003

Quantity 1

Sales Order Document Number: ______________________ Add the sales order.

5-2-3 Create a delivery for the sales order. Even though the service is not deliverable, you can copy it into the delivery so that all items can be invoice together on an A/R invoice.

Delivery Document Number________________________ Save the delivery.

5-2-4 Open the delivery you just created and view the journal entry.

Did the service item appear in the journal entry?

_______________________________________________

5-2-5 Create an A/R invoice for the delivery.

A/R Invoice number _____________________________

5-2-6 Re-open the invoice you created and open the journal entry.

What account was used for posting the service revenues?

_______________________________________________



Topic: Selling Services

5-1 Your customer C42000 would like you to set up the computer system they are purchasing from you. This is not a service you usually provide, but you are willing to provide excellent service to a frequent customer.

Create a sales order document and enter the customer number. Change the Item/Service Type to Service. Enter a description for the service and choose the appropriate G/L account number for the service. Enter 2000 as the price for the service.


5-1-1


Customer C42000



Service Description PC setup service

G/L Account Number Use a sales revenue account (such as 400010 in the UK)

Total Price 2000

Add the sales order. Sales Order Document number ___________________________

5-1-2 After you provide the service, create an invoice for the customer. The invoice date is today. Create an A/R Invoice to bill for the service provided.

Open the sales order and copy the service onto an A/R Invoice. Choose Last Data Record. Choose Copy to. Choose A/R Invoice. Choose Add to save the invoice. Accept the system message by choosing Yes. A/R invoice document number __________________________

5-1-3 Re-open the invoice you created and view the journal entry. Choose the Last Data Record icon. Choose the Accounting tab.


What type of posting is made to the customer account to indicate the customer owes us money: debit or credit?

_______________________________________________

A debit is posted to the customer account.


_______________________________________________

A credit is posted to the sales revenue account.

5-2 Create a service as an item and then sell it on a sales order with other items.

5-2-1 Create an item master record for your new service. Choose Inventory Item Master Data.



Item No. S22000

Item Description PC Setup Service

Inventory Item Checkbox Uncheck

Purchased Item Checkbox Uncheck

Item Type Labor

Item Group (define new) Installation

Base Price List Unit Price 100

Add the new item.

5-2-2 Use the new item in the sales process, beginning with a sales order.



Customer C30000



Item S22000

Quantity 1

Item P10003

Quantity 1

Sales Order Document Number: ______________________ Add the sales order.

5-2-3 Create a delivery for the sales order. Even though the service is not deliverable, you can copy it into the delivery so that all items can be invoiced together on an A/R invoice.

Open the sales order and copy the rows onto a delivery. Choose Last Data Record. Choose Copy to. Choose Delivery. Delivery Document Number________________________ Choose Add to save the delivery. Accept the system message by choosing Yes

5-2-4 Open the delivery you just created.

Choose the Last Data Record icon. Choose the Accounting tab. Open the journal entry. Choose the link arrow next to the Journal Remark field.

Did the service item appear in the journal entry?

_______________________________________________

No the service item is not shown in the delivery’s journal entry.

5-2-5 Create an A/R invoice for the delivery.

Open the delivery and copy the rows onto an A/R Invoice. Choose Last Data Record. Choose Copy to. Choose A/R Invoice. Choose Add to save the invoice. Accept the system message by choosing Yes. A/R Invoice number _____________________________

5-2-6 Re-open the invoice you created with the Last Data Record icon.

Choose the Accounting tab. Open the journal entry. Choose the link arrow next to the Journal Remark field.

What account was used for posting the service revenues?

_______________________________________________

The standard account for sales revenue for items is used. In our UK demo database this account number is 400000.

Exercises

Unit: Variations in Inventory Processes

Topic: Physical Inventory


Perform a physical inventory

Post inventory differences

In this exercise, you follow the steps to create inventory documents for taking a physical inventory. You display the current stock levels. Then you will enter quantities for each item as if you had physically counted the stock with positive and negative differences to see how the system handles these differences in quantity.

1-1 You are planning to carry out a physical inventory in your warehouse. To do so, you first have to create the inventory documents and then print and distribute them to the relevant people

1-1-1 Create the inventory documents for warehouse 01 and items A00001-A00005. Display a print preview on the screen. Make sure that the current storage quantity does not display. Then view the print preview for the physical inventory count document.

Enter the following on the Inventory Tracking tab page


Code from A00001

To A00005

Warehouse 01

View the documents that would be used for the physical inventory.

1-1-2 You have distributed the inventory documents to your colleagues, who are to perform the inventory count tomorrow. How do you make sure that nobody can make postings in the system while the inventory is being carried out?

_____________________________________________________________

_____________________________________________________________

1-1-3 Display the current stock situation of your materials A00001 through A00005 for all warehouses.

1-1-4 Enter the count results for your materials A00001-A00005. Make sure that you have both the positive and negative differences. Carry out the valuation using the Last Purchase Price list. If the system cannot find a purchase price for an item, enter a price manually.

Use the following data:


Code from A00001

To A00005

Warehouse 01

Post the differences in inventory for the items and warehouse below.


Code from A00001

To A00005

Warehouse 01

Price Source for Whse Inventory Posting

By Price List


The actual stock does not change until the differences have been posted. If the system does not propose a price from the Last Purchase Price list, you have to enter one manually.

1-1-5 Check the impact of the stock posting in the inventory posting list and the transactional journal report.


Code from A00001

To A00005

Warehouse 01

What document type do the respective stock posting have?

________________________________________________________

View the transaction journal report:


Original Journal All transactions

Date From……To <Current Date>

What transaction type appears for the entries?

__________________________________________________________

Solutions


Topic: Physical Inventory

1-1 You are planning to carry out a physical inventory in your warehouse. To do so, you first have to create the inventory documents and then print and distribute them to the relevant people

1-1-1 Create the inventory documents for warehouse 01 and items A00001-A00005. Display a print preview on the screen. Make sure that the current storage quantity does not display. Then view the print preview for the physical inventory count document.

Choose Inventory Inventory Transactions Initial Quantities, Inventory Tracking, and Inventory Posting. Enter the following on the Inventory Tracking tab page


Code from A00001

To A00005

Warehouse 01

Choose OK.

Select the checkbox Hide Quantity Stored.

Choose the Print Preview icon to view the documents that would be used for the physical inventory.

1-1-2 You have distributed the inventory documents to your colleagues, who are to perform the inventory count tomorrow. How do you make sure that nobody can make postings in the system while the inventory is being carried out?

__________________________________________________________

___________________________________________________________

You have a couple of possibilities to avoid postings in the system while you carry out the inventory.

You can set the Locked indicator for an item in a particular warehouse on the Inventory Data tab of the Item Master Data window, or

You can lock the document numbering function by choosing Administration System Initialization Document Numbering. Double-click on the document row to open the window where document numbering is set up. In this window, you can lock the numbering function by selecting the Lock indicator. SAP recommends that you set this lock for all documents that post goods movements.

2-1-3 Display the current stock situation of your materials for all warehouses.



Code from A00001

To A00005

Choose OK.

1-1-4 Enter the count results for your materials A00001-A00005. Make sure that you have both the positive and negative differences. Carry out the valuation using the Last Purchase Price list. If the system cannot find a purchase price for an item, enter a price manually.

Choose Inventory Inventory Transactions Initial Quantities, Inventory Tracking, and Inventory Posting.

Enter the following on the Inventory Tracking tab page.


Code from A00001

To A00005

Warehouse 01

Choose OK.

Enter the count results in the Counted in Whse column. Ensure that the status changes by reviewing each item to ensure the Counted checkbox is selected. Choose Update and OK. To post the differences, choose Inventory Inventory Transactions Initial Quantities, Inventory Tracking, and Inventory Posting. Enter the following on the Inventory Posting tab page.


Code from A00001

To A00005

Warehouse 01

Price Source for Whse Inventory Posting

By Price List


Choose OK.

The actual stock does not change until the differences have been posted. If the system does not propose a price from the Last Purchase Price list, you have to enter one manually.

Choose Reconcile.


1-1-5 Check the impact of the stock posting in the inventory posting list and the transactional journal report.

For the inventory posting list: choose Inventory Inventory Reports Inventory Posting List.


Code from A00001

To A00005

Warehouse 01

Choose OK.

The respective stock postings have the document type ST.

For the transaction journal report: choose Financials Financial Reports Accounting Transaction Journal Report.


Original Journal All transactions

Date From……To <Current Date>

Choose OK.

The entries will appear with the transaction type ST.

-

Exercises


Topic: Consignment


Create a consignment warehouse

Add stock to the consignment warehouse

Update the system when the customer uses consignment stock

View the stock levels in a consignment warehouse

In this exercise, you create a consignment warehouse for one of your customers so that you can store inventory at their location. The stock stored in the warehouse will remain yours, until the customer uses the items. At that point, you will create an A/R invoice to both post the goods issue and invoice the customer.

During this process you will periodically check the inventory levels at the customer site.

2-1 Your customer, C40000, has agreed to manage consignment stock on their premises. You fill the customer’s warehouse, but do not charge for the goods until they are used. The customer confirms by telephone that the stock has been used.

2-1-1 Create a new warehouse for customer C40000. Assign it the warehouse code 07 and the name CONSI C40000. Enter any domestic location, street, city and country for the warehouse. Use the default accounts for Inventory Account, Cost of Goods Sold and Price Differences Account.


Warehouse Code 07

Warehouse Name CONSI C40000

Location any

Street/City any

Country Domestic

Use the default accounts for the consignment warehouse. In the UK training database, the following accounts are used. If you are using a different localization, ask your instructor which account numbers should be used.


Inventory account 130000

Cost of Goods Sold account 500005

Price Differences 500200

2-1-2 Fill the warehouse for customer C40000 by sending 5 units of item C00010 from warehouse 01. Enter this delivery in SAP Business One by using the Inventory Transfer transaction.


Customer C40000

From warehouse 01

Item No C00010

To Warehouse 07

Quantity 5

Tip: To check the quantity available in Warehouse 01 put the cursor in the To Warehouse field and choose Ctrl+Tab.

2-1-3 How much stock is currently stored in the consignment warehouse?

_____________________________________________________________

2-1-4 Customer C40000 informs you that they have used 2 items. You want to post both the goods issue from the consignment warehouse and the invoice to the customer.

Which document allows you to invoice the customer and post the goods issue?

______________________________________________________________ Create the appropriate document type with the following information:


Customer C40000

Item No C00010

Quantity 2

Whse 07

If the field Whse is not shown, add the field Whse to the invoice in order to change the warehouse to 07. When you save the document, the system posts both quantities and values.


What is the quantity currently in warehouse 07?

____________________________________________________________

Solutions


Topic: Consignment

2-1 Your customer, C40000, has agreed to manage consignment stock on their premises. You fill the customer’s warehouse, but do not charge for the goods until they are used. The customer confirms by telephone that the stock has been used.

2-1-1 Create a new warehouse for customer C40000. Assign it the warehouse code 07 and the name CONSI C40000. Enter any domestic location, street, city and country for the warehouse. Use the default accounts for Inventory Account, Cost of Goods Sold and Price Differences Account.

Choose Administration Setup Inventory Warehouses. Enter the following information on the General tab page:


Warehouse Code 07

Warehouse Name CONSI C40000

Location any

Street/City any

Country Domestic

On the accounting tab, enter the appropriate accounts for consignment. In the UK training database, the following accounts are used. If you are using a different localization, ask your instructor which account numbers should be used.


Inventory account 130000

Cost of Goods Sold account 500005

Price Differences 500200

Choose Add.

2-1-2 Fill the warehouse for customer C40000 by sending 5 units of item C00010 from warehouse 01. Enter this delivery in SAP Business One by using the Inventory Transfer transaction.

Inventory Inventory Transactions Inventory Transfer


Customer C40000

From warehouse 01

Item No C00010

To Warehouse 07

Quantity 5



2-1-3 How much stock is currently stored in the consignment warehouse?

__________________________________________________

Inventory Inventory Reports Inventory in Warehouse Report. Do not narrow the selection by item. Select warehouse 07. Choose OK The current stock level is 5 units of C00010. No other items are in stock.

2-1-4 Customer C40000 informs you that they have used 2 items. You want to post both the goods issue from the consignment warehouse and the invoice to the customer. Create a customer invoice from warehouse 07. Choose Sales-A/R A/R Invoice.


Customer C40000

Item No C00010

Quantity 2

Whse 07

If the field Whse is not shown, add the field Whse to the invoice in order to change the warehouse to 07. (Choose the Form Settings icon.

On the Table format tab, mark Whse as visible Choose OK to save the setting and return to the invoice.) After changing the warehouse from 01 to 07, save the A/R invoice. Choose Add and then confirm the system message.

The system posts both quantities and values.


What is the current stock quantity for item C00010?

______________________________________________________


Narrow the selection for items to C00010 in the Code From and To fields. Select warehouses 01 and 07. Choose OK to run the report.

There should be a quantity of 3 in warehouse 07.

Exercises


Topic: Business Partner Catalog


Define a business partner catalog number

View the business partner catalog number in a marketing document

In this exercise, you create business partner catalog numbers for two items provided by a preferred vendor.

Then check your data by using these items in a purchasing document.

3-1 Define business partner catalog numbers.

3-1-1 For both items A00001 and A00002 and the vendor V10000, maintain the vendor catalog numbers in order to make them effective for purchasing documents: for A00001 it is 600543 and for A00002 it is 555600


Vendor V10000

Item No A00001

BP Catalog No. 600543

Item No. A00002


3-1-2 Check your data by entering a purchase order with the two items for the vendor V10000.

Solutions


Topic: Business Partner Catalog

3-1 Define business partner catalog numbers.

3-1-1 For both items A00001 and A00002 and the vendor V10000, maintain the vendor catalog numbers in order to make them effective for purchasing documents: for A00001 it is 600543 and for A00002 it is 555600

To make the customer / vendor catalogue numbers effective for documents they have to be maintained in Inventory Item Management Business Partner Catalog Numbers.

On the BP tab, enter the following values.


Vendor V10000

Item No A00001


Item No. A00002


Choose Add.

3-1-2 Check your data by entering a purchase order with the two items for the vendor V10000.

Choose Purchasing-A/P Purchase Order.


Vendor V10000

Item No. A00001

Double-click on the row to open the Row Details. You can see the BP Catalog No. in the list.

Documents

SAP BUSINESS ONE Logistics Excercises