This video demonstrates the simplicity and ease of the SAP Business One Sale Process. The sales process in SAP Business One entails creating the following documents:
Before ordering, customers often require a sales quotation for review in their company. You create it as a proposal of your goods and services to a customer or lead. It does not result in any posting that alters quantities or values in inventory management or accounting.
The sales order is a commitment from a customer or lead to buy a product or service. The document is important for planning production, creating purchase orders and scheduling resources.
You create a delivery note to indicate that the goods have been shipped.
After you have delivered the goods or provided services, you bill the customer using an A/R invoice. With this document, you request payment from your customer and record the revenue in the profit and loss statement.
Additional Process Documents
Each of the following documents has a specific purpose in the sales process.
A/R reserve invoice – used when a company is concerned about the credit worthiness of its customer. In this case, the company demands payment before any delivery of items to the customer.
Return – a corrective clearing document used to credit a customer if the goods were delivered but no A/R invoice was issued
A/R Invoice + Payment – document for cash sales to one-time customers. SAP Business One treats an A/R invoice + payment document the same way as an A/R invoice. The corresponding journal entries in accounting and inventory are processed automatically after the document is posted.
A/R credit memo – used to credit a customer if the goods were delivered and an A/R invoice was issued
It is possible to create new documents based on existing ones. When you do so, only the documents that are still open are displayed. Open documents:
Are those for which you have not created a follow-on document
Remain open until you transfer all items completely to the follow-on document, or until you manually close or reverse them
The Effects on inventory quantity and the general ledger:
Each document updates the inventory quantities and the general ledger in the following ways.
A sales order affects the amount of inventory committed to a customer and, therefore, the available inventory quantity.
A delivery reduces the inventory committed and the in-stock quantities. Furthermore, it affects the general ledger, if SAP Business One manages the perpetual inventory. In such a case, the delivery reduces inventory valuation and posts a cost of sale.
An A/R invoice created without reference to the delivery, also reduces the quantity in stock. An A/R invoice always creates an accounting transaction. It records the revenue and tax, and it updates the customer accounts with a new outstanding balance.
An A/R invoice + payment reduces the quantity in stock and records the revenue and tax.
An A/R reserve invoice affects the amount of inventory committed to a customer and, therefore, the available inventory quantity. It also creates an accounting transaction.
A return increases the in-stock quantity and updates the associated inventory accounts.
An A/R credit memo increases available inventory levels and creates accounting transactions. It credits the customer accounts in the general ledger and corrects the revenue account by the same amount.
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