Sales - A/R

Contents:
Sales Process
Handling Issues in Sales A/R

Sales - A/R: Purpose

In this unit, you will:

Master the basic steps of the sales process
Understand the consequences of each step on inventory and accounting
Handle issues that arise within delivery and billing

Sales - A/R: Business Example

The company has set customer satisfaction as its top priority and wants to

streamline its processes in sales to make sure that its customers demands
can be met as quickly as possible.
When problems arise for the customer, you can quickly solve the issues by

using documents such as Returns and Credit Memos.

Sales Process: Unit Overview Diagram

Sales - A/R
Topic 1: Sales Process
Topic 2: Handling Issues in Sales

Sales Process

System Configuration
Master data

Warehouse management
Purchasing

Outbound
logistics

Inbound
logistics

Marketing &
Sales

Service

Production

Financial controlling

Sales Order

Delivery

A/R Invoice

Incoming
Payment

Key Data in the Sales Process: Business Partners

Common structure for all business partners used

in sales and purchasing

Business partners used in the sales process:
Leads
Customers

Defaults are set at the company level for business

partner details such as:
Currency
Payment terms
Credit Limit
Price list

Leads and Customers

Leads

Customers

Use on pre-sales

Use on any sales

documents or sales
orders
Not on deliveries or

invoices

document
Convert leads to

customers when
they buy

Key Data in the Sales Process: Items

Items represent products to be sold

Item information is stored in the item master

record
You can type item codes directly into a sales

document rows or search for items by description

or other item attributes

Using Price Lists in the Sales Process

Price
PriceList
List

Customer
CustomerMaster
MasterRecord
Record

Price List Basics:

10 default price lists are provided.
Items are linked to every price list.
Assign a price list to each customer.
The assigned price list defaults into a sales

document automatically.

Sales
SalesDocuments
Documents

Sales Order

Our customer orders 5 laptops

We enter customer, items, and quantities in the sales order
The system determines the price automatically
A manual discount for 1% is entered in the order
The customer is also eligible for an early payment discount of 2%

Item Availability Check in Sales Orders

2.)

1.)

Sales Order
Item No.
A00001
A00001

Description Quantity WH

50
01

50
01

Administration System Initialization

Document Settings

Document Settings
Per Document

Document

Sales Order

Activate Automatic Availability Check

If Order Quantity
>
Quantity Available

Item Availability Check

Item No.
Warehouse

3.)

Quantity Ordered
Requested Due Date
Available Quantity
Earliest Available

A1000
A1000
01
01
50 Pair = 100 pcs
50 Pair = 100 pcs
05.06.2010
05.06.2010
28 pieces
28 pieces
10.06.2010
10.06.2010

Select Action:

Continue

Change To Available Quantity

Display Available-to-Promise Report
Display Quantities in Other Warehouses
Display Alternative Items

Delete Row

Delivery

We ship 5 laptops to the customer

The quantity of 5 laptops is removed

from inventory
The inventory account is credited for

item cost
The cost of goods sold account is

debited

A/R Invoice

We bill our customer for the 5 laptops

The total includes the 1% manual discount
The due date is based on the customers payment

terms
A journal entry is created to record:
a credit to revenue
a debit to the customer account

Incoming Payment

The customer pays the invoice on time

for the 5 laptops

The total includes the 1% manual

discount and the early payment discount

of 2%
A journal entry is created to record:
debits to our house bank account and

discount accounts
a credit to the customer account

Sales to One-Time Customers (A/R Invoice + Payment)

Setup Financials G/L Account Determination

Menu
Administration

Sales
Default Customer for A/R Invoice + Payment
C9999

One-Time Customer

A/R Invoice + Payment

Customer
Name
Ship To
Item No.

A00001
A00001
A00002
A00002
...
...
Add

C9999
Michael Kramer
Michael Kramer
Main 9855
Chicago TX 65095

Payment Means

Check
Bank Transfer

Item Description

Credit Card

Twin Seater
Twin Seater
Three Seater
Three Seater

Cash

USD 303.84
USD 303.84
Balance Due

Balance Due

USD 1303.84

USD 1000.00
USD 1000.00

USD 1303.84

Postings in Sales Process for Inventory Items

Inventory Item
Sales Item
Purchased Item
Fixed Assets

Sales Order

Delivery

Cost Acc.
100

A/R Invoice

Stock Acc.
100

Customer
100

Revenues Account
Sales Revenues EU
Foreign Revenues Acc.
100

Document Flow in Sales

Sales Order

Warehouse
(Quantity)

General Ledger
(Value)

Delivery

A/R Invoice

Sales Documents and Their Properties

Quotation

Order

Delivery

A/R Invoice

1)

Sales Document
must be Created
in the System

2)

Change/Reverse

3)

Sales Document
for Correction

Returns

A/R Credit
Memo

4)

Reference When
Added

Order
Quotation
A/R Reserve Invoice

Delivery
Order
Quotation

5)

Quantities Posted
in Inventory
Management

(Goods Issue)

(If No Reference to
Delivery)

6)

Values Posted
in General
Ledger

Quotation

Posts committed
quantity

Stock Changes in Sales

Model Report: Inventory Status
Transaction

In Stock

Committed

+ Ordered

= Available

Sales / AR

Quotation
Order

Delivery for order

Separate delivery (w/o
reference to order)
Pick List

+
-

A/R Invoice for delivery

Separate A/R Invoice (w/o
reference to delivery)

A/R Reserve Invoice for Order

A/R Reserve Invoice (w/o
reference to order)

+ Indicates increase in quantity

- Indicates decrease in quantity

Delivery for A/R Reserve

Invoice

Returns
A/R Credit memo

+
+

+
+

Functions in Sales A/R

Quotation
1.) Credit Limit Check
2.) Gross Profit and
Last Prices Report
3.) Link to Transaction
Journal
4.) Serial Number and
Batch Management
5.) Activities
6.) Create Document
Drafts

Order

Delivery

A/R Invoice

Document Generation Wizard

Invoices need to
be produced

Deliveries to a customer

Summarized A/R Invoice

Sales Analyses in SAP Business One

Sales analyses provide information on
sales by:
Customers
Items
Sales employees
A combination of the above

Examples
What are the sales figures per customer? Which customer is the most profitable?
Which product is most successful? Which is the most profitable? How are the sales figures

distributed among the quarters?

Which products does a certain customer prefer?
How successful is our sales staff? How well does a particular sales employee sell one item in

comparison to another one? How are the sales figures per employee and item distributed over the
entire year?

Open Items List

Open Items List:

Open Sales Quotations
Open Sales Orders
Open Deliveries
Open

Sales Process: Topic Summary

Key points from the Sales Process topic:

The four main steps in the sales process are:
Sales Order
Delivery
A/R Invoice
Incoming Payment
Each sales document has a different effect on inventory and/or accounting.
Key master data used in sales: business partner and items
Key reports in sales process: open items list and sales analysis

Exercises for the Sales Process

Handling Issues in Sales: Unit Overview Diagram

Sales A/R
Topic 1: Sales Process
Topic 2: Handling Issues in Sales

Returns

Delivery
Cost Account
50

Stock Account

Cost Account

Sales Returns
50

50

Returns

50

Warehouse
(Quantity)

General Ledger
(Value)

Credit Memo

Cost Acc.
50

Stock Acc.
50

Customer
100
Cost Acc.
50

Warehouse
(Quantity)

General Ledger
(Value)

Customer
100

Sales
Revenues
100

Revenues Acc.
100
Stock Acc.
50

Negative rows on marketing documents

Make corrections directly in a marketing document

without a credit memo

Negative rows can be added to:
Delivery
A/R Invoice
Returns
A/R Credit Memo

Example: customers can get a credit for returning

packaging while ordering more items.

Troubleshooting Issues in Sales: Topic Summary

Key points from this topic:

If no A/R invoice has been created, use a Return document to receive

items from a customer.

When correcting a problem after the A/R invoice has been created,

use an A/R credit memo.

Negative rows can be added to marketing documents.

Exercises for Troubleshooting Issues in Sales

Sales A/R: Unit Summary

You should now be able to:

Complete the basic steps of the sales process
Understand the consequences of each step on inventory and accounting
Handle issues that arise with in delivery and billing