SAP AG 2007 Basic Procurement Process Additional Documents and Functionalities of Purchasing Contents: Purchasing – A/P

SAP AG 2007

Basic Procurement Process

Additional Documents and Functionalities of Purchasing

Contents:

Purchasing – A/P

SAP AG 2007

Model the purchasing process using SAP Business One

Post procurement documents

Post returns and credit memos

Use the reporting functions to analyze your procurement data

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

Purchasing – A/P: Unit Objectives

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You purchase your warehouse goods from external vendors. Normally, you use the purchase order document to order goods. In some cases, however, you might submit your order by phone and your vendor might deliver immediately. In this case, the process modeled in the system must be as short and quick as possible.

If the delivered goods do not meet your quality standards, you might want to return them to your vendor. This can happen either before or after you have received the invoice.

Purchasing – A/P: Business Scenario

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Basic Procurement Process: Topic Objectives

Model a basic procurement process in SAP Business One

Use the different transactions of Purchasing – A/P

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

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Document Flow in Purchasing

General Ledger(Value)

Warehouse(Quantity)

Target document Base document

1.) 2.) 3.)

PurchaseOrder (PO)

Goods Receipt PO AP Invoice

•When u entered a PO, no value-based changes are posted in Accounting.

•However, the order quantities are listed in inventory management.

•View the ordered quantities in the inventory status report and the item master data window

•Create this document as you receive the goods.

•The goods are accepted into the warehouse and the quantities are updated.

•SAP Business One creates the relevant postings to update the stock values as well

•When an incoming invoice is received, the related accounts for the vendor are posted in Accounting

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Draw Document Wizard

PurchaseOrder


Draw Document WizardDraw Document Wizard

Row Ex, Rate for Prices

Use Exchange Rate from Base Document Use Current Exchange Rate from the Exchange Rate Table

Draw all data (Freight and Withholding Tax) Customize

•If you have copied the base document completely, it will be closed and you will not be able to draw it again to another document.

•The only exception is a sales quotation which can be copied even if it has been closed.

•PO’s target doc is goods receipt PO’s

•Goods receipt PO’s base doc is PO

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Consequences when Goods Receipt PO is created in SAP B1

PurchaseOrder


Warehouse(Quantity Increasing)

General Ledger(Value Increasing)

1.)

2.)

3.)

4.)

5.)

The PO (base document) can not be changed.

The goods receipt PO can not be changed, because of the journal entry

The system creates an accounting document

The system updates the stock situation

Items that have been partially or completely delivered appear in light gray in the purchase order document

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Consequences when A/P Invoice is created in SAP B1

PurchaseOrder


Warehouse(Quantity Increasing)

General Ledger(Value Increasing)

1.)

2.)

3.)

4.)6.) 5.)

1) With reference to the PO increases the quantity and value of your stock 2) With

reference to the goods receipt PO only the values update

3) Without any reference, both the quantities and values update

4) You cannot change the A/P invoice

5) Vendor’s account is updated

6) items in the goods receipt PO that have already been partially or completely invoiced display in light gray

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Postings in Purchasing Process for Inventory Items

Purchased Item

Fixed Assets

Inventory Item

Sales Item

Allocation Costs Acc.Stock Acc.

100 100

Purchase Order

AP Invoice

VendorAllocationCosts Acc.

100100

Goods Receipt PO

Item Category:

goods receipt PO creates a journal entry that post values of goods received to the:•debit side of the stock account (retrieved from the

Inventory Account field) and •credit side of an allocation costs account. (Allocation Costs Account field on the Inventory Data tab of the item master record)

A/P invoice creates a journal entry that posts the invoiced amount to the:• debit side of the allocation costs account and •credit side of the vendor account

• Use the allocation costs account to check if the goods receipts PO and the A/P invoices match•To post a purchase order, choose Purchasing – A/P Purchase Order.•To post a goods receipt PO, choose Purchasing – A/P Goods Receipt PO.•To post an A/P invoice, choose Purchasing – A/P A/P Invoice

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Posting Price Differences

A/R Delivery

Goods Receipt PO

1000

Stock AccountStock Account

1000

Allocation Allocation Costs AccountCosts Account

1100

VendorVendor

400

Cost AccountCost Account

1 2

1000

1

1

3

23

A/P Invoice

40

Price Differences Price Differences AccountAccount

3

3

400 2

603

You receive a goods receipt PO with a total of 1000•Debit stock account •Credit allocation costs account

You sell 40% of your stock and post an A/R delivery. The system posts 400 to the •Credit side of the stock account •Debit side of the cost account

Receive the A/P invoice for the goods receipt PO; total is 1100, resulting in a difference of 100•The system clears the allocation costs acct. •Post the total to the credit side of the vendor account ……………

Then ……………•Debit the remaining 60% stock price difference to the stock account•Debit the 40% (of price difference for the

stock sold) to the price difference account

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Postings in Purchasing Process for Non-Inventory Items

Purchased Item

Fixed Assets

Inventory Item

Sales Item

Purchase Order

AP Invoice

Vendor

Expenses AccountEU Expenses Acc.Foreign Expenses Acc.

100100

Goods Receipt PO

Item Category:

• The system does not trigger a posting for the goods receipt PO even if you create one

•The expenses account is retrieved from the default warehouse on the Inventory tab of the item master record.

•If the vendor is located in the same country, the account from the Expenses Account field is used.•If the vendor is located in an EU country, the account from the EU Expenses Account field is used.•If the vendor is located in a non-EU foreign country, the account from the Foreign Expenses Account field is used.

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Additional Documents and Functionalities of Purchasing: Topic Objectives

Create A/P reserve Invoices, goods returns, and credit memos

Use the split purchase order and partial delivery functions

Explain the stock changes in purchasing

Use the purchasing reports in SAP Business One

Analyze the journal postings that have been created in the purchasing process

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

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A/P Reserve Invoice

PurchaseOrder

Goods Receipt PO

A/P Reserve Invoice


Warehouse(Quantity)

1.) 2.) 3.)

Reserved A/P invoices do not change the In Stock quantity. The available quantity increases by the ordered quantity, •Reserve invoices create value-based postings

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Goods Returns (if an A/P Invoice has not yet been created for that Goods Receipt)


Purchase Order

Warehouse(Quantity)

Allocation Costs Acc.Stock

Acc.100 100

Stock Acc.Allocation Costs Acc.

100 100

Goods Returns

Goods Receipt PO

Stock quantities are reduced. SAP Business One corrects the relevant value-based posting

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Credit Memo for Purchasing (If you have already entered an A/P Invoice for the transaction)

Allocation Costs Acc.Stock Acc.

100 100


Purchase Order

AP Invoice

VendorAlloc.

100100

Stock Acc. Vendor

100 100

Credit Memo

Goods Receipt PO

Warehouse(Quantity) • Updates the

stock quantities, and• Corrects the values in accounting

•The system finds the same accounts that were used to post the invoice and posts a negative value to them.

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Split Purchase Order

Purchase Order Blanket 1000

Item Quantity Warehouse

A1000 11 01

A1001 15 02

Logistics

Split PO

Purchase Order 1000-1


A1000 11 01

Purchase Order 1000-2


A1001 15 02

Ship to: Berlin Ship to: Hamburg

Purchase Order Blanket 1000

Note: You cannot split a purchase order containing items from one warehouse only.

• A new field containing a secondary numbering segment will be added to the purchase order number

• Split a single purchase order containing items from several warehouses, into a child purchase order created for each separate warehouse•Setting for splitting purchase orders is made via Administration System Initialization Document Settings on •the Per Document tab page

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Goods Receipt PO

#

1

2 20

3

Goods Receipt PO

Goods Receipt PO: Partial Deliveries/Overdeliveries

1.) Overdelivery2.) Add Items

Purchase Order

#

1 10

2 15

3 2

Goods Receipt PO

#

1 6

2

3

#

1

2

3

4 1

Goods Receipt PO

#

1 4

2

3

3.) 1st Partial Delivery

4.) 2nd Partial Delivery

Setting for splitting purchase orders is made via Administration System Initialization Document Settings on the Per Document tab page

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Model Report: Inventory Status

Stock Changes in Purchasing A/P

In Stock - Committed + Ordered = AvailableTransaction

Purchase order

Goods receipt PO

Goods Receipt PO w/o reference to PO

A/P invoice forgoods receipt PO

A/P invoice with referenceto Purchase Order

Goods returns

A/P Credit memo

Pu

rch

asin

g /

AP

A/P Reserve Invoice w/o reference to PO

Goods Receipt PO with reference to A/P Reserve Invoice

+ +

+ -

+ +

+ +

+ +

+ -

-

-

-

-

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100

Special Control Account

Postings in Purchasing Process for Assets

Purchased Item

Fixed Assets

Inventory Item

Sales Item

Purchase Order

AP Invoice

VendorAsset

Account

100100

Goods Receipt PO

Because the asset is intended for continuous use and not for sale and because you do not place it in stock, the system automatically deselects the Sales Item indicator and the Inventory indicator

Special control account belongs to the Assets Account transaction type.

•If the vendor is located in the same country, the account in the Expenses Account field is used as the asset account.•If the vendor is located in an EU country, the account in the EU Expenses Account field is used as the asset account.•If the vendor is located in a non-EU foreign country, the account in the Foreign Expenses Account field is used as the asset account

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Purchasing Reports (1)

Purchase Analysis

Open Items List

Vendor Liabilities Aging

Drag & Relate

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Purchasing Reports (2)

Purchase Analysis: To analyze the purchasing volume made from your vendors, to determine

which products you purchase the most, and which of your purchasing employees attains the best deals.

Open Items List: To view open sales and purchasing documents; to give you an accurate

picture regarding the status of documents in the system, only documents with Open status appear in this report; documents that were partially copied to target document also appear in this report.

Vendor Liabilities Aging: Display the detailed information for each vendor in the row. In the detailed

view, the documents are displayed together with the respective liabilities. The report provides the size of the vendor liability and the time that the debt

has remained unpaid.

Drag & Relate: To switch from the Modules menu to the Drag & Relate menu, choose the

Drag & Relate tab. Drag & Relate is an extensive information system that can be used to display

information about the business processes quickly and easily. The Drag & Relate tool uses pre-defined queries in order to generate reports

in the system, and searches both in reports and in the master data, such as G/L Accounts and Business Partners Reports can be filtered using the Filter function.

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Transaction Journal Report

Goods Receipt PO

09/10/04 Account Debit Credit

1199 107100 10

•Analyze all the posting documents using the transactional journal report journal•To display the Transaction Journal Report: Financials Financial Reports Accounting Transaction Journal Report•To display the journal entries (for example AP invoice, goods receipt PO): from the Accounting tab page choosing the orange arrow at the Journal Remark

SAP AG 2007

Model the purchasing process using SAP Business One

Post procurement documents

Post returns and credit memos

Use the reporting functions to analyze your procurement data

You are now able to:

Purchasing – A/P: Unit Summary