Master Data Content: Business partners Items and warehouses

Master Data: Unit Objectives At the conclusion of this unit you will be able to: Explain how the business partner master records and the item master records are structured Maintain business partner master records and item master records Maintain item master records and define the Inventory System

Master Data: Business Scenario Before you can enter business transactions in SAP Business One, you have to create the objects used in the transactions as master data. In SAP Business One, you can create business partners and items as master data.

Business Partners: Topic Objectives At the conclusion of this topic, you will be able to: Outline the three types of business partners in SAP Business One Describe how business partner master records are structured

Three Types of Business Partner Master Records Vendors Customers Leads One or more control accounts for vendors One or more control accounts for customers Leads do not have any effect on accounting. Possible transactions Possible transactions Possible transactions All purchasing transactions All sales transactions Sales opportunities Quotations and orders Sales opportunities There are three types of business partner master records in SAP Business One: vendors, customers, and leads. You generally use these business partners in specific business processes: You use vendor master records in purchasing to handle all purchasing transactions. Accounting manages the relevant transactions in one or more control accounts. You use customer master records in sales to handle all sales transactions. Accounting manages the relevant transactions in one or more control accounts. You use leads in the Customer Relationship Management (CRM) functions in SAP Business One. You can also create quotations and orders for leads. Leads have the inability to use them in transactions that affect accounting. In other words, you cannot post invoices for a lead. If you want to do so, you first have to convert the lead into a customer. Customers that are also vendors require two master records. You assign the business partner codes externally when you create a new business partner master record. The codes are alphanumeric and must not overlap with the G/L account numbers. The codes must not contain mathematical operators, since these would be misinterpreted by the SQL database. Underscores, however, are allowed. The system always interprets the codes as alphanumeric codes. If you want to establish a numeric sort sequence, you have to make sure that the codes always contain the same number of digits or use leading zeros.

Structure of the Business Partner Master Record Business Partner Master Data Header Data Code Business Partner Type Name Group Currency … Local, System, or BP Currency Account Balance Deliveries Orders Opportunities General Contact Persons Addresses Payment Terms Payment System Accounting Properties Remarks Telephone/Fax Active / On Hold with Dates Contact Person … Name Address … Bill to Address/ Pay to Address Ship to Address … Payment Terms Discount Credit Limit Partial Delivery … House Bank Payment Method … Consolidating Control Account Dunning Tax … Up to 64 different Business Partner Properties … Text Photo … The business partner master record consists of header data and information arranged on several tab pages. The header data comprises the Code, BP type (customer, vendor, lead), Name and Foreign name (for addresses entered in two languages), as well as the Currency. You can arrange your business partners into groups for analysis purposes. The General tab mainly contains information fields, such as telephone numbers, e-mail, password, and so on, as well as default values for documents, such as the buyer or the sales employee. You can also specify here that the business partner is active or on hold for a certain time period. On the Contact Persons tab, you can enter data for any number of contact persons at the business partner’s company. The system displays the name of the person you define as the standard contact person on the General tab page. The Addresses tab contains the bill to address / several pay to addresses as well as several ship to addresses, which you can specify in the sales documents. The delivery address for purchasing documents is always the address of your company. The Payment Terms tab contains payment data that is used by default in documents. The system takes most of this payment data from the payment terms defined. The Payment System tab contains payment data that is used by the payment system. The Accounting tab contains the Control account and optionally a reference to another master record for the business partner's head office (Consolidating BP). It also contains information on how taxes are handled. Finally, you can assign certain Properties and an additional picture or text information (Remarks) to the business partner.

Functions in Business Partner Management Change Find Add Change Log Business Partner Management Remove Duplicate Each customer, vendor, or lead is entered in the system as a master record. You can carry out the following actions when you process master data: Enter new master records Search for and edit existing master records The information you enter in a master record for a customer or a vendor in the system is applied automatically when you process your business transactions, for example, the terms of payment that you define for a customer. These then form the basis of the orders and invoices for this customer. Activities refer to sales activities such as phone calls, meetings or other types of sales activities. Tracking these interactions enables analysis of the interactions with the customers, both open activities and historical (closed) activities. You can remove business partners as long as no accounting or inventory transactions have been posted to this business partner. Service Call Link Activities

Items and Warehouses: Topic Objectives At the conclusion of this topic, you will be able to: Find, create, and maintain item master records Group item master records according to various criteria Describe how item master records are structured Define the inventory system

Structure of the Item Master Record Item Master Data General Area Item Number Description Description in Foreign Language Item Type Item Group Price List … Bar Code Unit Price Type of Item General Purchasing Sales Inventory Planning Properties Remarks Manufacturer Shipping Type Serial and Batch Numbers Valid / On Hold with Dates … Purchasing Units of Measurement Customs Group Tax Information Dimensions … Sales Unit of Measurement Packaging Unit Dimensions … Costing Method Warehouses Stock Quantities Item Cost … Planning Method Procurement Method Order Information Lead Time … Up to 64 different Items Properties Text Photo … Item master data consists of the general area and seven tabs. SAP Business One enables you to manage all the items that you purchase, manufacture, sell, or keep in stock. Services can also be defined as items, although they are only relevant for sales. For each item, you enter the data relevant for a particular area in the system. This data is used automatically by the system for purchasing, sales, production, managing your warehouse, and accounting SAP Business One, therefore, provides optimum support for your business processes. In Sales, it helps you create orders, delivery notes, and outgoing invoices because prices, sales units and gross profit calculate automatically. Using the item data in the system, you can optimize your stock. You have complete control over stock quantities at all times and can also analyze the financial aspects of stockholding at the same time. The system allows you to control production based on the items that are used for production and based on the finished product and any by-products created. Use the general area to maintain general item information relevant for all types of items.

Finding Item Master Records Items Master Data * Purchased Item Sales Item WH Item Fixed Assets Item Number Description *ball Item Type Example: Searching for all items containing ball in the description Item Group Price List Purchasing Data Regular Vendor Mfr Catalog No. Purchasing UoM Items per Purchase Unit ...... ....... Searching for an item with a specific catalog number You can use general criteria and procurement, sales, or warehouse information to find an item master record. When you choose the Master Data transaction, SAP Business One launches the find mode.

Functions in Item Management Change Find Add Log of Changes Item Management Remove Duplicate Sales and Purchasing Analysis To create an item master record, first switch from Find to Add mode by choosing the relevant icon. Once you have entered all of the necessary data, choose Add to save your item master record. If you need to make changes to an item master record, you can use the Find button to find the right record. As soon as you make any changes or add any data to the record, the button changes from OK to Update. If you choose Update, the system saves the information and the button changes back to OK. Next, choose OK to exit items management. The context menu includes options to remove, cancel or duplicate an item master. Link Activities

Item Master: Grouping Criteria Item Master Data Inventory Item Sales Item Purchased Item Fixed Assets Item Number A1001 Description Baseball Cap Uni Item Type Items Item Group Sports Wear You can choose the item group from the dropdown list. To create new entries, choose the Define New option. Price List 01 Purchase Price List General Sales Data Inventory Planning Data Properties Details Choose All Professional Equipment Beginners Suitable for Children Item Group 4 ......... ........ Item Group 64 Clear Selection Update Item groupings allow you to combine or classify your item master records in the system. You can group your products by Item Group (General Area) and by Manufacturer (General tab). You can assign each item to one item group and / or one manufacturer (General tab). You can use item groupings for reports and analyses to filter the item master records in an item grouping. If the item grouping is not sufficient to filter your data, you can also use the Properties or user-defined fields. You can define the item groups and properties in the Administration. For the item groups you can define some default values: choose Administration  Setup  Inventory  Item Groups / Properties. Cancel

Warehouse Definition Warehouse 01 General Warehouse General Accounting Address Information Default Accounts Location Drop Ship In SAP Business One, there is a direct relationship between warehouses and items. Choose Administration Setup Inventory Warehouses to define new warehouses. Here, you can enter a Warehouse code and a Warehouse name. Address Fields: Specifies address details for the warehouse Location: Specifies the warehouse location. Use this field to classify warehouses according to their physical location. Drop Ship: Defines the warehouse as a drop-ship warehouse. Use this option when the company does not manage inventory, but receives commission for every order. SAP Business One will not calculate stock postings for this warehouse. In the Accounting tab, you define various default accounts.

Inventory Data Option 1: Option 2: In Stock - Committed + Ordered = Manage Inventory by Warehouse Manage Inventory by Warehouse WH Code WH Name Min. Stock Min. Stock Max. Stock Req. Stock Required Purch. UoM General Warehouse East Coast Minimum West Coast Drop Ship Maximum WH Code WH Name In Stock Committed Ordered Available General Warehouse East Coast West Coast Drop Ship On the Inventory Data tab of the item master data the system displays per warehouse: The quantity in stock The committed quantity (quantity ordered by customers) The ordered quantity (quantity ordered by your company but not yet delivered) The available quantity (calculated as In Stock - Committed + Ordered quantity) SAP Business One helps you to manage your inventory. You can define whether a specific item should have inventory managed on the warehouse level or across all warehouses. Option 1: If you decide to manage the inventory by warehouse, the system lets you enter the minimum stock level, the maximum stock level, and the required stock level for every warehouse. Choose this option by flagging the Manage Inventory by Warehouse checkbox. Option 2: If you decide to manage the inventory at the company level, leave the Manage Inventory by Warehouse checkbox deselected for the item. Then you can enter a maximum stock level, a minimum stock level and a required stock level across all warehouses. In Stock - Committed + Ordered = Available

Inventory Valuation Methods Moving Average Price € First In – First Out (FIFO) Standard Price In the item master record, you can specify the inventory valuation method in which you want to manage the item. You have three options: Moving Average price The system calculates the moving average price by dividing the total value of the goods by the amount in stock. First In - First Out (FIFO) The system stores each good receipt in the inventory in a separate layer. When you post any good issue, the system uses the price from the oldest layer, from the second-oldest, and so on. Standard Price When you select this option, you also need to enter a fixed price into the item master record. The system uses this price for all stock movements. This especially makes sense for items which you produced yourself. You can define whether the system calculates one price for all warehouses or a separate own price for each warehouse. Choose Administration  System Initialization  Company Details on the Basic Initialization tab with the Manage Item Cost per Warehouse checkbox. If you work with the continuous stock system, you can use the Inventory Valuation Report to valuate the entire warehouse inventory of all items on a key date. You will normally valuate the warehouse inventory on the balance sheet key date. This report in intended as a managerial report to check what-if scenarios. For instance, you can see what happens if you value an item based on a different calculation method. Possible Calculation Methods: Moving Avearge, FIFO, LIFO, By Price List, Last Revaluation Price.

Stock Movements with Standard Price Valuation 100 Stock Account 20 Variance Goods Receipt Goods Receipt PO A/P Invoice Beginning Quantities Goods Issue Delivery A/R Invoice 120 (Offsetting Account) 100 (Offsetting Account) If an item is managed with standard price valuation, an additional account is needed when posting any kind of goods receipt (goods receipt without reference, goods receipt PO, A/P invoice, beginning quantity). This account is called the variance account. It receives the price difference between the standard price and the price in the document. This variance account is retrieved from the Variance Account field on the Inventory tab of the item master record. The offsetting account is a different account depending on which type of document you post.

G/L Account Determination Set G/L Accounts by Item Level # WH Code WH Name Accounts Types 1 01 General Warehouse 2 02 Drop Shipment 3 03 Consignation Accounts Entered Manually Set G/L Accounts by Warehouse # WH Code WH Name Accounts Types 1 01 General Warehouse 2 02 Drop Shipment 3 03 Consignation Accounts from Warehouse Definition Set G/L Accounts by Item Group # WH Code WH Name Accounts Types 1 01 General Warehouse 2 02 Drop Shipment 3 03 Consignation On the Inventory tab of the item master record, you specify the G/L account determination. The accounts are defined in a matrix per item and per warehouse. You can set one of the warehouses as default warehouse. The system will use the default warehouse when you create a document if you did not specify otherwise. If you did not set a default warehouse the system uses the first warehouse as default. You can specify these accounts on item level and enter them directly into the item master record. Choose Inventory  Item Master Data and choose the Inventory tab. This enables detailed account determination but also involves much maintenance work. To simplify the account determination, in every item master record you can specify that the accounts are retrieved from a higher level: Warehouse level: In this case the system automatically retrieves the accounts from the warehouse definition. To maintain the accounts in the warehouse definition, choose Administration  Setup  Inventory  Warehouses and choose the Accounting tab. Item group level: In this case the system automatically retrieves the accounts from the item group definition. To maintain the accounts in the item group definition, choose Administration  Setup  Inventory  Item Groups and choose the Accounting tab. You can define default accounts under Administration  Setup  Financials  G/L Account Determination. These values are defaulted for all levels (warehouse level, item group level, and item level). Accounts from Item Group Definition

Master Data: Unit Summary You are now able to: Explain how the business partner master records, and the item master records are structured Maintain business partner master records and item master records Maintain item master records and define the inventory system