This document provides an overview and instructions for a webinar on procurement processes in SAP Business One. It introduces the webinar presenters and provides protocols for participant engagement. Key aspects of the procurement cycle are outlined including purchase requests, quotations, purchase orders, goods receipts, invoices, and payments. Master data important for purchasing is highlighted. Effects of transactions on inventory and accounting are demonstrated. The document also reviews issues that may arise in purchasing like partial deliveries, substitute items, returns, and credit memos.

3. Welcome
from the AGS
Management
Team

5. WEBINAR
PROTOCOL Introduce yourself in the chat
i.e. I am Your Name from Company
so we can acknowledge your presence.
For a better listening experience
keep your microphone on mute.
For questions, please use the chatbox. We will try to
answer everything by the end of this session
Keep your commentary positive
and optimistic in the chatbox
WEBINAR
PROTOCOL
For questions needing further discussion, your
respective AM's will contact you

6. Customer Feedback
https://www.surveymonkey.com/r/B1PROCURETOPAY

7. Ivan-Brett C. Esparrago
Service Management Head
icesparrago@ags.com.ph
0920 969 9921

8. Nephtali T. Balo, CPA
Certified SAP Functional Consultant
ntbalo@ags.com.ph

9. Procurement Process

10. PURCHASING A/P
1. Streamline and automate procurement
processes
2. Integrate warehouse and accounting
3. Centralize information with master data
management
4. Gain real-time visibility through powerful
reporting

11. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

12. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

13. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

14. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

15. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

16. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

17. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

18. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

19. Key Master Data in Purchasing:
Vendors Items Warehouses

20. Inventory and Accounting Effects
Purchased Item
Inventory Item
Sales Item
Allocation
Acc.
Stock Acc.
100 100
Vendor
100
100
Allocation
Acc.
Item Category:

21. Purchased Item
Fixed Assets
Inventory Item
Sales Item
Vendor
100
100
Stock
Acc.
Item Category:
◼ For urgent orders, you can skip
the purchase order and GRPO
◼ The A/P invoice will:
◼ Increase stock
◼ Show the debt to the
vendor
AP Invoice

22. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Purchase Request

23. Benefits ◼ Saves time
because
document
provides
information
needed for
purchase orders
◼ Reduces
expenses related
to items returned
◼ Allows you to
track expenses in
advance
◼ Helps with
budget planning
or cost reduction

24. Version 10 PL01 Update – Add Button Extended in Marketing Documents

25. Target documents
Purchase
Order
Purchase
Request
Purchase
Quotation
Purchase
Order
…
…

26. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

27. Copy to/ Copy from
Copy to
◼ Open saved document to
copy
◼ All items copied to new
document
◼ No options available on how
items are copied
◼ However, you can delete
items and adjust quantities
after copying
Purchase
Request
Purchase
Quotation
Purchase
Order

28. Copy to/ Copy from
Copy to
◼ Open saved document to
copy
◼ All items copied to new
document
◼ No options available on how
items are copied
◼ However, you can delete
items and adjust quantities
after copying
◼ Enter business partner in a new
document
◼ Choose one or multiple
documents from a list
◼ Draw document wizard allows
you to:
◼ customize rows copied
◼ select the exchange rate
Copy from
Purchase
Request
Purchase
Quotation
Purchase
Order

29. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

30. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

31. Effects of the Goods Receipt PO
1
4
2
3
Purchase
Order
Goods
Receipt

32. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

33. Effects of the AP Invoice
2
1
Goods
Receipt PO
AP Invoice
4 3

34. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

35. The Payment Process in SAP Business One –
Purchasing
Outgoing Payment
Bank Account/
Cash account
Outgoing Payment:
Payment Means
◼ Check
◼ Credit Card
◼ Cash
◼ Bank Transfer Debit Credit
Bank Account 202
Vendor 202
A/P Invoice

36. Structure of a Payment Document
Payment Document Header
Open Invoices, Credit Memos and Journal Entries
Totals, Remarks

37. How To Determine the Payment Amount

38. How To Determine the Payment Amount

39. How To Specify the Payment Means
1.Determine the Payment Amount
2.Split the Payment Amount According to Payment Means
Possible Payment Means:
◼ Check
◼ Bank Transfer
◼ Credit Card
◼ Cash

40. Open Items List
Open Items List:
◼ Open purchase orders
◼ Open goods receipt POs
◼ Open A/P invoices
◼ …

41. Version 10 PL01 Update – Enhanced Open Items List Report

42. GUESS THE
GIBBERISH

43. • This is a game where players try to make sense
out of gibberish.
• The words seem like nonsense, but actually
sound like phrases.
• When you recite the gibberish word out loud and
fast, they somewhat blend and resemble a
phrase.
• For example, try reciting ‘Though wok calves
aim’. Make any sense? Try it out loud. You’ve
been saying, ‘The walk of shame’.
HOW TO
PLAY

44. TRIAL

45. abe less sing

46. a blessing

47. GAME ON!

48. car own huh fire us

49. coronavirus

50. canned ache my high
saw few

51. can’t take my eyes off
you

52. disguise they’ll him it

53. the sky’s the limit

54. ape hand hub hair

55. a panda bear

56. eye won two bray ache
four yee

57. I want to break free

58. Model Report: Inventory Status
Stock Changes in Purchasing
In Stock - Committed + Ordered = Available
Transaction
Purchase order
Goods receipt PO
A/P invoice for
goods receipt PO
+ +
+ -
+ Indicates increase in quantity
- Indicates decrease in quantity

59. Purchasing Review
Purchase
Order
Goods
Receipt
AP Invoice
General Ledger
(Value)
Warehouse
(Quantity)

60. Purchasing Review
Purchase
Order
Goods
Receipt
AP Invoice
General Ledger
(Value)
Warehouse
(Quantity)

61. Purchasing Review
Purchase
Order
Goods
Receipt
AP Invoice
General Ledger
(Value)
Warehouse
(Quantity)

62. • Solving Issues in Purchasing: Issues with Goods Receipt
POs

63. Goods Receipt Issues
▪ Too little quantity
▪ Too large a quantity
▪ Substituted Items
Purchase
Order
Goods
Receipt PO
AP Invoice
Outgoing
Payment

64. Partial Deliveries
Purchase Order
#
1 Item A 10
2 Item B 15
3 Item C 2
Vendor Y1000
Goods Receipt PO
#
1 Item A 6
2
3
Vendor Y1000
1
1st Partial Delivery
When a vendor does not deliver a full quantity:
▪ Reference the purchase order to create a goods receipt PO for a partial quantity
▪ Copy the row from the purchase order
▪ Reduce the quantity shown.

65. Partial Deliveries
Purchase Order
#
1 Item A 10
2 Item B 15
3 Item C 2
Vendor Y1000
Goods Receipt PO
#
1 Item A 6
2
3
Vendor Y1000
1
Goods Receipt PO
#
1 Item A 4
Vendor Y1000
Later when the vendor sends a subsequent shipment,
you can reference the purchase order again.

66. Partial Deliveries
Purchase Order
#
1 Item A 10
2 Item B 15
3 Item C 2
Vendor Y1000
Goods Receipt PO
#
1 Item A 6
2
3
Vendor Y1000
1
Goods Receipt PO
#
1 Item A 4
Vendor Y1000
▪ No further deliveries expected: Close the purchase order
▪ PO remains in system but cannot be copied
▪ PO appears in Purchase Analysis Report
▪ Option to close a row rather than entire document

67. Delivery of a Larger Quantity
Goods Receipt PO
#
1 Item A 10
2 Item B 20
Purchase Order
#
1 Item A 10
2 Item B 15
Vendor Y1000 Vendor Y1000
You can increase copied quantities to reflect the actual delivered quantity.

68. Substitute Items
Goods Receipt PO
#
1 Item A 10
2 Item B 15
3
4
Purchase Order
Vendor Y1000 Vendor Y1000
Two items received, but third item not delivered.
#
1 Item A 10
2 Item B 15
3 Item C 1

69. Substitute Items
Goods Receipt PO
#
1 Item A 10
2 Item B 15
3
4
Purchase Order
#
1 Item A 10
2 Item B 15
3 Item C 1
Vendor Y1000 Vendor Y1000
Instead vendor sent a substitute item.
If the original item will never be delivered,
close the purchase order.
.
Add Items
Add the additional item to the Goods
Receipt PO.
4
3 Item D 1

70. GUESS THE
GIBBERISH

71. whole imp pig aims

72. Olympic games

73. sea yule hater

74. see you later

75. why em tea hay

76. Y.M.C.A

77. high dance eek

78. hide and seek

79. • Solving Issues in Purchasing: Goods Returns and Credit Memos

80. Goods return and Credit memo
Goods
Receipt PO
AP Invoice
Goods Return
A/P Credit
Memo
Use Goods Return before an A/P
invoice is entered
Use A/P Credit Memo after an
A/P Invoice has been entered

81. Simplify the process with the Goods Return Request
Goods
Receipt PO
Goods Return
Request
AP Invoice
Goods Return
A/P Credit
Memo
• Handle items returned at any point in the process
• Simplifies the process because Goods Return Request
automatically chooses the correct document to follow
• Document the reason for the return and capture any
RMA number given by the vendor

82. Goods Returns
Purchase Order
Goods Receipt
PO
Goods Return
Request
Good Return
20 scanners ordered 20 scanners received 2 damaged scanners
need to be returned
Capture the reason
for the return and info
about how to return
the item to the vendor
2 damaged scanners removed
from inventory and credited

83. Goods Return Effect
Purchase Order
Goods Receipt
PO
Goods Return
Request
Good Return
Stock Acc.
2000 2000
Allocation Acc. Stock Acc. Allocation Acc.
200
200
20 scanners ordered 20 scanners received 2 damaged scanners
need to be returned
2 damaged scanners removed
from inventory and credited
General Ledger
(Value)
Warehouse
(Quantity)

84. Inventory Effect for Goods Return Request and Goods Returns
Goods Return
Goods Return
Request
In Stock Committed Ordered Available
20 20
20 2 18
18 * 18*
GRPO
Before the goods receipt PO,
there were 0 in stock.
* If there were a preceding purchase order and the configuration setting allowed reopening the purchase
order, a quantity of 2 would be added to the Ordered column and the Available quantity would be
increased by 2.

85. Credit Memo for Purchasing
50 CD boxes were
ordered and
received into
inventory
Goods Receipt
PO
AP Invoice
Goods Return
Request
A/P Credit
Memo
We enter the A/P
invoice before we
discover that 5
boxes are defective
Use the Goods Return
Request to begin the
return process
We use the credit memo
to return the 5 boxes for
credit because an A/P
Invoice exists

86. Goods Receipt
PO
AP Invoice
Goods Return
Request
A/P Credit
Memo
Credit Memo for Purchasing
50 CD boxes were
ordered and
received into
inventory
We enter the A/P
invoice before we
discover that 5
boxes are defective
Use the Goods Return
Request to begin the
return process
We use the credit memo
to return the 5 boxes for
credit because an A/P
Invoice exists
Vendor
Allocation
Costs Acc.
100
100
Stock Acc. Vendor
10 10
Stock Acc.
100
100
Allocation
Costs Acc.

87. Vendor
Allocation
Costs Acc.
100
100
Credit Memo without reducing stock
▪ A 10% discount was missing on vendor invoice for 100.
▪ The vendor sends a credit memo for discounted amount.
▪ Use the Without Qty Posting checkbox when entering the
A/P Credit Memo referencing the invoice.
Purchase Order
Goods Receipt
PO
A/P Invoice A/P Credit Memo
General Ledger
(Value)
Warehouse
(Quantity)
Stock Acc. Vendor
10 10
Stock Acc.
100
100
Allocation
Costs Acc.

88. Creating a credit memo without reference
A/P Credit
Memo
Create a Credit Memo
without referencing any
preceding document
A/P Invoice A/P Invoice
Multiple invoices that need to be credited
Or A Closed A/P Invoice
A/P Credit
Memo
Outgoing
Payment

89. Cancellation
▪ A goods receipt PO is incorrectly
entered.
▪ The user cancels the GRPO.
▪ A cancellation document is created
automatically.
▪ The purchase order is reopened
and used as a base document for
a new GRPO.
X

90. Cancellation
◼ Ability to cancel documents.
◼ Saves time because accounting, fiscal, financial and
inventory transitions are completely reversed in one
step.
◼ Base documents are re-opened and can be used as
a base document again.
◼ Define maximum no. of days for cancelling
marketing documents after posting.
A/P Invoice
(original posting remains)
A/P Invoice
(reversal posting and quantities)
Document status is updated -> ‘Cancelled’ Document status -. ‘Closed – Cancellation’
A/P Invoice
User selects cancel ...

91. Cancellation
Purchase
Order
GRPO AP Invoice
Copy to Copy to
Cancel
Cancel
Re-open
Re-open

92. Summary of options for returns and credit
Issues Suggested Solutions
Incorrect entry of Goods Receipt PO Cancel Goods Receipt PO
Purchase Order reopens to create new GRPO
Need to return item(s) received on a Goods Receipt PO
but not yet invoiced
Copy item(s) from GRPO to a Goods Return Request
Then copy to Goods Return
Need to return or credit item(s) invoiced
on an A/P Invoice but yet not paid
Copy item(s) to a Goods Return Request
Then copy to an A/P Credit Memo
If no stock movement is desired use Without Qty posting
Need to return items that have already
been invoiced and paid
Create A/P Credit Memo without reference
Need to return or credit items from
multiple A/P invoices
Create A/P Credit Memo without reference
If no stock movement is desired use Without Qty posting

93. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process Overview

94. Purchase
Order
Goods Receipt
PO
A/P Invoice Outgoing
Payment
Purchase
Request
Purchase
Quotation
Procurement Process - Services Overview

95. Item / Service Type
Service Customer
Description
Document
G/L Account Price
C00001
Name Smith
Item Customer
Item No.
Document
Description Quantity
C00001
Name Smith
Price
In Purchasing (and sales) you
can set your documents as
either Item type or Service
type.

96. Create a Service Invoice
Vendor Invoice
◼ Vendor name
◼ Invoice number
◼ Invoice date
◼ Description
◼ Amount due
◼ …

97. Create a Service Invoice
Vendor Invoice
Enter data
A /P Invoice
◼ Vendor number
◼ Vendor name
◼ Invoice number
◼ Invoice date
◼ Description
◼ Amount due
◼ …

98. Create a Service Invoice
Vendor
Master Data
Vendor Invoice
Default data
Enter data
A /P Invoice
◼ Vendor number
◼ Vendor name
◼ Invoice number
◼ Invoice date
◼ Description
◼ Amount due
◼ …
◼ Vendor number
◼ Vendor name
◼ Address
◼ Payment terms
◼ Payment method
◼ …

99. Create a Service Invoice
Vendor
Master Data
Vendor Invoice
Default data
Enter data
A /P Invoice
◼ Vendor number
◼ Invoice number
◼ Invoice date
◼ Description
◼ G/L Account
◼ Total due
◼ Vendor name
◼ Invoice number
◼ Invoice date
◼ Description
◼ Amount due
◼ …
◼ Vendor number
◼ Vendor name
◼ Address
◼ Payment terms
◼ Payment method
◼ …

100. Create a Service Invoice
Vendor
Master Data
Vendor Invoice
Default data
Enter data
A /P Invoice
◼ Vendor number
◼ Invoice number
◼ Invoice date
◼ Description
◼ G/L Account
◼ Total due
◼ Vendor name
◼ Invoice number
◼ Invoice date
◼ Description
◼ Amount due
◼ …
◼ Vendor number
◼ Vendor name
◼ Address
◼ Payment terms
◼ Payment method
◼ …
Check for duplicate
invoice numbers

101. Create a Service Invoice
Vendor
Master Data
Vendor Invoice
Default data
Enter data
A /P Invoice
◼ Vendor number
◼ Invoice number
◼ Invoice date
◼ Description
◼ G/L Account
◼ Total due
◼ Vendor name
◼ Invoice number
◼ Invoice date
◼ Description
◼ Amount due
◼ …
◼ Vendor number
◼ Vendor name
◼ Address
◼ Payment terms
◼ Payment method
◼ …

102. Service Item
Purchased Item
Fixed Assets
Inventory Item
Sales Item
Item Category:
◼ For services you regularly
purchase
◼ Allows you track quantities
and use standardized
reporting
◼ Reduces chance for errors
◼ Can be added on item-
type purchasing
documents

103. Question & Answer

104. Customer Feedback
https://www.surveymonkey.com/r/B1PROCURETOPAY

105. THANK YOU!
marketing@ags.com.ph