SAP® Business One

A Single System to Streamline Your Entire Business

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Regional SAP User Group Meeting

1. Welcome – Introductions

2. Second Whistle Stop Tour on Inventory Control

� For new user group members - Virtual lunches to be scheduled every 4 – 6 weeks

� Whistle Stop Tours to be conducted from noon to 1:00 pm

� Consist of 45 min to one hour educational presentation

� Closing with question and answer period of approx. 15 minutes or as time permits

� Users will get copies of PowerPoint presentation and user feedback document to evaluate the topic

� User feedback was used to pick Inventory Control topic for this meeting

� Be sure to sign up at Linked In to have access to user contact info and news about future events

� Let’s get started!

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Topic: Inventory Control

Presented by: Vicki Smith

A general overview of the Inventory Master Data screens, Inventory

Transactions and Reports

Topics:

1. General System Settings for Inventory

2. Inventory Valuation Methods

3. Review of Item Master Data tabs

4. Inventory Transactions

5. Inventory Reports

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Discussion will be based upon use of a Perpetual Inventory System

A perpetual Inventory system will reflect the value of transactions

performed for items defined as � Inventory Items as they are received or

released from stock.

The general system settings defined will determine how inventory

transactions will affect the G/L accounts.

To Review General Inventory Settings

Go to: Administration > System initialization > Company Details > Basic Initialization

� To initialize the perpetual inventory system � Use Perpetual Inventory� This can not be unchecked once inventory transactions have been performed

� Select Item Groups Valuation Method from drop down list (default)

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Default G/L accounts for items:

� Go to: Administration > Setup > Financials > G/L Account Determination

� Default accounts used in new warehouses, item groups, & item master data

Define Item Defaults:

� Go to: Administration > System Initialization > General Settings > Inventory

� Define default warehouse

� Determine at what level item costs and transactions are reported

1. Warehouse – Go to: Administration > Setup > Inventory > Warehouses

2. Item Group – Go to: Administration > Setup > Inventory > Item Groups

3. Item Level – Define manually on Item Master > Inventory Data

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There are three (3) valuation methods defined for calculating inventory value

� When using perpetual inventory system you can do the following:

� Manage all 3 methods in the same company

� Select a certain valuation method for each item individually

� Moving Average – Calculates the average cost for the item in each sales,

purchasing, inventory, and production transaction

� Standard – Calculates the inventory value by a fixed price which is used

for all transactions

� FIFO – Calculates the inventory value by First in – First Out method.

� Goods purchased first (or produced) are sold first

� Each inventory receipt transaction creates a stack of quantities linked to costs.

� Each inventory release transactions uses the quantities and costs from the top stack first

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Defines key information that determines behavior of the item.

� Item Type

1. Item – Used for sales and purchasing transactions

2. Labor – Cost of producing a product thru time

3. Travel – Cost of time & expenses incurred in reaching a destination for business

� Item Group – assigns group for reports and evaluations, including financial

reporting when managing G/L accounts by item group.

� Price List – Reference pricing information shown based on price lists selected

� Item Check Boxes

1. Inventory – Items held in stock at the company

2. Sales – Product or service such as support ( do not have to be stocked)

3. Purchasing – Items purchased by the company (do not have to be stocked)

4. Fixed Assets – Items owned by the company (not applicable in U.S.)

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Stores information that is used by other system documents.

� General – defines serial & batch numbers, production data, etc..

� Purchasing Data – defines preferred vendor, catalog #, weights & dims.

� Sales Data – defines sales unit of measure, sales packaging

� Inventory Data – defines unit of measure, G/L acct. management, valuation method, item cost, etc..

� Planning Data – defines planning method, order multiples & minimums, lead-

times, etc..

� Properties – additional item classification, information or selection details

� Remarks – include text that can be listed on purchase orders, attach documents

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There are numerous ways to display, list and find details of items in the Item

Master Data screens.

� Item query or find

� Right click for various display options

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Manual inventory transactions are performed to make

inventory adjustments, transfer inventory from one

warehouse to another or revalue inventory item cost.

Types of Transactions:

� Goods Receipt – record increase quantity to stock

� Goods Issue – record decrease of quantity in stock

� Inventory Transfer – move inventory from one warehouse to another

� Inventory Revaluation – used to correct costs of inventory items

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1. Define Inventory Cycle

� Administration > Setup > Inventory > Inventory Cycles

2. Define Inventory Cycle for an Item Group

� Administration > Setup > Inventory > Item Groups

� This only affects new items and will not automatically set cycle for current items

3. Linking Inventory Cycles to Items

� Manually link to items in a warehouses at warehouse row level

a) Make sure cycle count fields are displayed in warehouse row

b) Update Cycle Code and Next Count Date in Item Warehouse row

� Automatically link to an item according to the inventory cycle selected for the

item group

a) On item general tab click on the item group drop down list

b) Choose the highlighted item group (CAUTION – do not change item groups)

c) Answer yes to the system message: Update Item Information According to Selected Group

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� If you have selected alerts when defining your cycles, you will receive an

alert on the day the count should be initiated.

1. Generate the count sheet

a) Go To: Inventory > Initial Quantities, Inventory Tracking, and Inventory Posting

> Inventory Tracking tab

b) Select group of items to generate count sheet for and click OK

2. Enter the counts in the Tracking tab table for each item and click Update

3. Review counts entered and variances in Inventory Posting tab

4. Post the cycle count by clicking the Reconcile button

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Various Inventory Reports can be utilized to cost, track, and reconcile

inventory transactions.

� Inventory Audit report

� only report that reconciles to the Balance Sheet

� Item List Report

� Overview of all items with price lists and quantity in stock

� Inventory Status report

� Overview of current stock situation including planned receipts and withdrawals. (hot List).

� Inventory Posting List Report

� Details of all transaction postings in the system showing by date and inventory

balance at that date

� Inventory in Warehouse Report

� Shows current stock status, planned receipts and withdrawals, last receipt & issue date (slow movers)

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Thank you for taking time to participate in the SAP Business One User

Group meeting.

Please take a few minutes to give us feedback of the meeting and any

suggestions for going forward.

We are always looking for new clients to work with. And we'd like to find

more like you - companies that are engaged, smart, and focused on their

future.

Can you help us out?

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Questions & Answers

Schedule for next Stops:

Tues., Nov. 17, 2009 - Latest SAP release 8.8 available to our customers for

installation 1st or 2nd quarter 2010

Tues., Dec. 15, 2009 – To be determined