This document provides an overview of the order to cash process in SAP Business One. It discusses the key documents in the sales process like sales orders, deliveries, invoices and payments. It describes how these documents are used to record sales and impact accounting. It also summarizes the purpose of documents like credit memos, returns and cancellations that are used to correct or reverse documents. The document includes examples of exercises to create different sales documents and discusses some optional sales documents.
2. Agenda
. Order to Cash Process
• Upcoming Events
• Question and Answer
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7. â–Ş Business partners used in
the sales process:
â–Ş Leads
â–Ş Customers
Key Data: Business Partners
8. Key Data: Items
â–Ş Items represent products to be sold
â–Ş Items can be for either goods or services
â–Ş Item information is stored in the item
master record
9. Using Price Lists
Customer Master
Record
Sales
Documents
Price List Basics:
â–Ş Assign a price list to each customer.
â–Ş The assigned price list defaults into
a sales document automatically.
Price List
10. Summary
Here are some key points:
â–Ş The main documents of the sales
process are the sales order,
delivery and A/R invoice. The
incoming payment at the end of
the sales process is performed in
the Banking module.
11. â–Ş Every sales document
must have a business
partner assigned.
Summary
12. â–Ş A sales document can sell
goods or services. Goods
are represented by item
master records. If services
are represented as items,
they can be sold with
physical items on sales
documents, otherwise they
are sold on service-type
documents.
Summary
13. â–Ş SAP Business One
calculates pricing
automatically in sales
orders.
Summary
14. â–Ş The only mandatory sales
document is the A/R invoice.
When an A/R invoice is used
alone without preceding
documents, it can perform the
functions of the sales order,
delivery.
Summary
17. â–Ş All the documents in
purchasing and in sales share
a similar structure. The
documents for sales and
purchasing are also often
called “Marketing
Documents”
Marketing Documents
18. â–Ş In general the document
is divided into:
â–Ş The upper part (header)
with the general
information,
Marketing Documents
19. â–Ş The middle part with the
information on different
tab pages and the item
specific data and the lower
part(footer) with more
general information.
Marketing Documents
21. â–Ş The Contents tab is where all
the specific information about
the ordered items or services
is entered, such as quantity,
price, item number, and
description. You can access
more item specific data in the
line details by double-clicking
a row .
Marketing Documents
22. â–Ş The Logistics tab contains the
details about where the items
or services and payments are
to be sent. Shipping method is
also specified here. Most of
the data is pulled from
preconfigured master
company details and vendor
data.
Marketing Documents
23. â–Ş The Accounting tab contains
the relevant general ledger
(G/L) account information for
the purchase pulled from the
financial accounting master
data.
Marketing Documents
24. â–Ş The Attachments tab allows
you attach supplementary
files to your documents.
Marketing Documents
25. Copy to Copy from
â–Ş Open saved document to copy
â–Ş All items copied to new document
â–Ş No options available on how items are
copied
â–Ş However, you can delete items and
adjust quantities after copying
â–Ş Enter business partner in a new document
â–Ş Choose one or multiple documents from a
list
â–Ş Draw document wizard allows you to:
â–Ş customize rows copied
â–Ş select the exchange rate
Copy to/ Copy from
26. Copy to Copy from
â–Ş Open saved document to copy
â–Ş All items copied to new document
â–Ş No options available on how items are
copied
â–Ş However, you can delete items and
adjust quantities after copying
â–Ş Enter business partner in a new document
â–Ş Choose one or multiple documents from a
list
â–Ş Draw document wizard allows you to:
â–Ş customize rows copied
â–Ş select the exchange rate
Copy to/ Copy from
28. Sales Quotation
â– A document created as a form of offer or proposal that you send
either to a customer, or to a lead
29. Sales Order
â– Commitment from customer or lead to buy a product or service
â– Document used for planning production/purchase order
â– We enter customer, items, and quantities in the sales order
â– The system determines the price automatically if a pricelist is maintained
33. Delivery
â–Ş We deliver items to the customer
â–Ş The quantity is removed from inventory
â–Ş The inventory account is credited for item cost
â–Ş The cost of goods sold account is debited
36. A/R Invoice
â–Ş We bill our customer for the items
▪ The due date is based on the customer’s payment
terms
â–Ş A journal entry is created to record:
â–Ş a credit to revenue
â–Ş a debit to the customer account
37. Postings in Sales Process for
Inventory Items
Purchased Item
Inventory Item
Sales Item
Sales Revenue
Customer
500
500
A/R Invoice
Sales Order Delivery
100 100
Stock Acc.
Cost Acc.
42. 50
50
Stock Acc.
Cost Acc. Sales Revenues
Customer
100
100
100
Customer
100
Revenues Acc.
Without Qty. Posting
â–Ş When the customer requests for
credit but no qty returned
â–Ş We reference the original invoice
and create a credit memo without a
quantity posting.
â–Ş The credit memo reverses only the
invoice.
Credit without Return to Stock
44. Incoming Payment
â–Ş The customer pays the invoice
â–Ş A journal entry is created to
record:
â–Ş debits to our house bank
account a credit to the
customer account
46. Other Sales Documents
â–Ş AR Down payment Invoice
Used to record advances/down payment received from customer
This document does not create inventory value
After Delivery, AR Invoice needs to be created to apply the AR Down Payment
â–Ş AR Reserve Invoice
Allows to issue invoice without deducting the items in warehouse
This document does not create inventory entry
No need to create AR Invoice after Delivery
â–Ş AR Invoice + Payment
Used for One Time Customer
Customer has to pay the full amount immediately
47. Summary
Here are some key points:
â–Ş Sales orders contain
information for placing
the order, delivering goods
and invoicing the
customer. They have no
effect on accounting.
48. Summary
â–Ş Sales orders can be
changed after posting as
long as appropriate
settings are made and the
order is still open.
49. Summary
â–Ş A delivery indicates that
goods have been shipped
and reduces inventory levels.
50. Summary
â–Ş In perpetual inventory,
posting a delivery debits
current item cost and credits
the inventory stock account.
51. Summary
â–Ş An A/R invoice is a request
for payment. When one is
posted, a journal entry posts
a debit to the customer
account and a credit to sales
revenue and any tax
accounts.
54. Cancellation
Original A/R invoice posting remains
Document status is updated to Cancelled
New Cancellation Reversal Posting is created
Document status is set to Closed - Cancellation
When you cancel an invoice…
55. Summary
Here are some key points:
â–Ş An A/R credit memo
reverses a journal entry
partially or fully.
56. Summary
â–Ş When you create an credit
memo with reference to an
invoice, the system
corrects both the quantities
and values in the invoice.
57. Summary
â–Ş If the credit memo
contains inventory
items, the journal
entry will increase the
stock account and
decrease the cost
account.
59. Summary
â–Ş If you wish to give a
credit without impacting
stock, select the
checkbox Without Qty
posting on the item row
or use a service-type
credit memo.
60. Summary
â–Ş You can cancel marketing
documents. A reversing
document is created and
both the reversing and
reversed documents are
closed.