SAP Business One Manual

By: SkyTech (Marcelia for Information Technology)

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80
Purchasing A/P Process
Figure 85: Purchasing A/P Process

Purchase Quotations’ Comparison Report

By running this report, you make available a comparison of quotations received from vendors, letting you find the
best offer for procurement. The report highlights the favorable parameters, such as the earliest quoted date or the
lowest price. In addition, you can turn any purchase quotation into a purchase order directly from the report.

1. To begin comparison, SAP Business One Path:

 Purchasing > Purchase Quotation > open the relevant document, right-click, and choose: Comparison Report.
 Inventory > Item Master Data > open the relevant item master data, right-click, and choose: Comparison
Report.
 Reports > Purchase Quotation Comparison Report.
In the Purchase Confirmation Comparison report, specify the selection criteria and choose OK. The Quotation
Comparison window appears.

The report displays the price and quantity quoted by the vendor, as well as the promised delivery date.

2. To accept one or several of the quotations and order the goods, select the relevant line items and choose: Create
Purchase Order.

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80
Purchase Order
You may create a new PO by clicking on the document name in the module menu or by basing it on an existing sales
order.

In PO window, enter the following information:

 Delivery Date: This is the date that you would like to receive the items (or services) being ordered.

 Vendor
 Contents tab: In the Item/Service Type field, make sure the type you select corresponds to what you are
ordering, as shown in Figure 86. Enter all items or services .

Note that you cannot mix the two items and services in a single purchasing

Figure 86: Items/Service Type

Once you have entered this information into the header and Contents tab of your PO, the rest of the document is
populated with the data necessary to issue the PO. If you are not ready to add the PO (by clicking the Add button),
you can save it as a draft (by pressing Alt + S or clicking File>Save as Draft.

In SAP Business One, the PO is the only purchasing document you can amend after it has been added.

When a PO is added in SAP Business One, no value-based accounting changes occur. However, the order quantities
listed in inventory management are increased.

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80
Figure 87: Purchase Order

Goods Receipt PO
A goods receipt PO can be created new by selecting the document name in the module menu, or it can be built from
an existing PO. If you are basing your goods receipt PO on an existing PO, you may copy all the data contained in the
PO or use the draw document wizard to select the data to copy from one or more existing POs.
Even if you copy all data from an existing PO you can still adjust quantities and prices as well as dates, vendor, and
item information before you post (add) the document.

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80
It is essential that the quantities and prices in your goods receipt PO match the vendor’s shipping document. Unlike
a PO, a goods receipt PO cannot be amended after it has been added to SAP Business One because it triggers both
inventory and accounting transactions.

Optional Step: Goods Return

When items received are found to be defective or not acceptable and must be returned to the vendor. Since you
can’t change or cancel a goods receipt PO, you can create a goods return document, as shown in Figure 6-9. This
purchasing document reverses partially or completely the quantity and value-based changes made by the goods
receipt PO that was created when the items were received.

Figure 88: Creating Goods Return Document

Optional Step: Landed Costs

In SAP Business One you can create a landed costs document that is used to update the cost of the imported items
and is required for calculating inventory valuation, gross profit, or any other inventory-related calculation.

It is mandatory that this purchasing document be based on a goods receipt PO. Since SAP Business One uses the
goods receipt PO as the base reference for the entire import process, be sure to enter the item prices and quantities
correctly at the time you create the goods receipt PO. After you post the landed costs document, the price of the
imported items is updated. And since it also contains all the costs that were allocated, the landed costs document
creates a journal entry to reflect the additional import costs in accounting.

If your final costs are not known yet, you can post landed costs as an estimate, and at a later stage post an adjusted
landed cost document with the final numbers, by copying the first landed cost document to a new one.

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80
Adding New Landed Cost Items
SAP Business One Path: Purchasing A/P  Landed Costs

1. Choose the ‘’Costs’’ Tab

2. Choose the ‘’New Landed Costs’’ Button
Figure 89: Adding New Landed Cost Items

3. In Landed Costs –Setup Window: Add ‘’Code’’, ’’Name’’, ‘’Landed Cost Allocation Account’’, Choose
‘’Update’’ when done
Figure 90: Landed Cost-Setup

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80
Creating Landed Cost Document
SAP Business One Path: Purchasing A/P  Landed Costs

1. Choose Vendor of original items.

2. Choose Copy From GRPO.

Figure 91: Creating Landed Cost Document

3. Enter fixed costs such as shipping costs via the Costs Tab of the Landed Costs Document.

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80
 4. When you are done adding costs, the Items tab will update the rows for each items with allocated costs and
total costs by item. When you are satisfied, choose Add to add the document. This adds the appropriate
costs to the GL accounts.

Figure 92: Landed Costs

AP Invoice
You can create an A/P invoice directly by selecting the document name in the module menu or by basing it on one or
more POs or goods receipt POs.

Once posted to SAP Business One, an A/P invoice cannot be changed, as it is the legal accounting document that
generates entries in the general ledger. The posted A/P invoice also updates the related vendor accounts in
accounting.

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80
Optional Step: A/P Reserve Invoice

The A/P reserve invoice is similar to a PO but it also includes a request for payment. It is used when the vendor
requires prepayment before delivering an item

It can be created directly or from an existing PO. Once posted, the document debits the relevant accounts in the
general ledger without affecting inventory quantities and values. The A/P reserve invoice cannot be used for
services.

Scenario: AP Reserve Invoice, GRPO

PO  AP Reserve Invoice  GRPO (Received part of the order)  Outgoing Payment (Partial Payment)
When the next part of the order is received:
Open AR Reserve Invoice (Copy to GRPO)  GRPO (Add the document) Outgoing Payment

Figure 93: AP Reserve Invoice, GRPO(1)

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80
Figure 94: Outgoing Payment

Figure 95: AP Reserve Invoice, GRPO (2)

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80
Relationship Map

Optional Step: A/P Credit Memo

You use the A/P credit memo in SAP Business One to reverse in part or entirely the inventory or accounting
transactions posted by an A/P invoice in the case you return items later or realize you have made mistakes while
entering data in previous related purchasing documents that have not been corrected.

You create an A/P credit memo using the A/P invoice as your base document if you want to establish a link between
the two transactions. However, you can also create an A/P credit memo without a base document.
Figure 96: AP Credit Memo

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80
Note: If, before you execute an A/P invoice, you have returned items and the vendor has sent you a goods return
document, first create a goods return in SAP Business One that will update the inventory

Relationship Map

Optional Step: A/P Down Payment Process

In some cases you are required to pay a portion of the total due in advance, usually at the time you place the PO.
For example if your vendor asks you to provide your credit card information at the time he commits to fulfill your
purchase order, you will record this as a down payment.

To record this payment, while creating the PO, click the payment means icon to open the Payment Means
window. Once you add the PO, three documents are created:

 Purchase Order

 A/P Down Payment Invoice, linked to the PO

 Outgoing Payment which closes the A/P down payment invoice.

The process is complete when you issue the final A/P invoice. If you base the invoice on the PO, the A/P down payment
invoice is applied, and the amount is reduced from the A/P invoice amount.

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80
Figure 97: AP Down Payment

Figure 98: AP Down Payment Journal Entries

Note: The A/P down payment invoice can also be created from scratch with or without reference to a PO. Depending
on the business process in your company, you may not create PO, or perhaps the advance payment is done at a later
stage, after you add the PO. In these cases, you can create the A/P down payment invoice independently. When the
payment is done, create an outgoing payment, and apply it to the A/P down payment invoice.

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80
The down payment invoice has no effect on inventory. The funds identified in the document are debited to a
predefined asset account, and the vendor is credited.

Once the A/P down payment is paid, it can be applied to the A/P invoice. At this stage the amount is transferred from
the asset to the inventory or expense account. The vendor is credited for the remaining balance.

 Specify the default down payment account by going to Administration> Setup>Financials>G/L Account
Determination. Choose the Purchasing tab. On the General subtab, press Tab in the Payment Advance to select
the asset account. This account also appears on the business partner master data. The account can be
overridden by entering a different account

You can apply multiple outgoing down payments on the same PO. To view a list of all down payments, right click the
purchase order screen and choose Related Down Payment Transactions.

Figure 99: PO-Related Down Payment Transactions

Relationship Map

Copyright ® 2017 SkyTech Ltd. All rights reserved. 152 Mecca street, Al Husseini Complex 1st Floor Office # 102
Email: info@[Link] – Website: [Link] – Telephone: +[Link].00 – Fax: +[Link].80