ARTICLES

Basics of Accounting

Accounting & Financials
author01 9 Apr 20 min read

Chart of Accounts

Accounting & Financials
author01 9 Apr 3 min read

Journal Entry

Accounting & Financials
author02 7 Apr 5 min read

Posting Templates

Accounting & Financials
author03 6 Apr 2 min read

Reccuring Posting

Accounting & Financials
author04 6 Apr 2 min read

Reverse Transactions

Accounting & Financials
author04 6 Apr 2 min read

Exchange Rate Differences

Accounting & Financials
author06 6 Apr 2 min read

Conversion Difference

Accounting & Financials
author07 6 Apr 2 min read

Financial Report Template

Accounting & Financials
author08 6 Apr 2 min read

Working with Fixed Assets

Accounting & Financials
author01 6 Apr 15 min read

Budget

Accounting & Financials
author02 6 Apr 2 min read

Cost Accounting

Accounting & Financials
author03 6 Apr 2 min read

Revaluation

Accounting & Financials
author04 6 Apr 2 min read

TDS: India

Accounting & Financials
author01 9 Apr 3 min read

Financial Reports

Accounting & Financials
author02 7 Apr 5 min read

Incoming Excise Invoice: India

Accounting & Financials
author05 6 Apr 2 min read

Outgoing Excise Invoice: India

Accounting & Financials
author06 6 Apr 2 min read
Accounting & Financials

Basics of Accounting

author01 SITSPL Team 9 Apr 20 min read

In This Chapter

  • Overview of Financial Accounting
  • Setting Up Financial Accounting
  • Performing Daily Procedures
  • Maintaining Records
  • Period-End Procedures
  • Incoming and Outgoing Payments
  • Cost Accounting
  • Budgeting
  • Inquiries and Reports

SAP® Business One delivers the tools and reporting capacity you need to manage your company's finances effectively and according to Generally Accepted Accounting Principles (GAAP). SAP Business One can bring your financial accounting to a new level of automation:

  • Real-time, really. Every time you add (or post) a transaction, your general ledger is updated. No need to batch journal entries for later posting - unless that's what you want to do.
  • Automatic journal entries. Perhaps the largest productivity boost in SAP Business One is its ability to create various journal entries automatically - greatly reducing the need to make journal entries or corrections manually.
  • Drill-down functionality. SAP Business One gives you the ability to drill down using the orange navigation arrows, not only to the general ledger but all the way to the source documents of a transaction - another powerful labor- and time-saving feature.
  • Task automation. You can automate redundant tasks by using recurring postings and avoid posting mistakes by using posting templates.
  • Data integrity. To prevent users from posting manual journal entries to certain accounts, you can set up control accounts. In addition, alerts help you manage expenses by informing you when expenses reach their budget threshold.
  • Audit trail. SAP Business One provides a complete audit trail, allowing you to track who made changes to all data or documents - and when.

Overview of Financial Accounting

The key to making the most of the finance and accounting features in SAP Business One is careful design and implementation to make sure that every part of the application precisely describes and tracks the way your business works. Of course, most companies come to SAP Business One with a well-established chart of accounts (and other financial accounting methods) as well as legacy databases of customers, vendors, and transactions. Working with your implementation partner, you translate and migrate the way your business works into SAP Business One. The five-step process of setting up financial accounting is shown in Figure 3-1.

These steps represent general guidelines. In any given implementation, the order of these steps may be changed or new steps may be added to reflect the unique needs and circumstances of your company.

Setup tip. When setting up your chart of accounts and financial accounting processes, discuss with your implementation partner the types of financial reporting you require. Financial reporting requirements drive most of the initial settings and configuration decisions. Your implementation partner knows the software and you know your business; together you can make SAP Business One work for you.


Figure 3-1: Accounting setup step-by-step

Definitions.

Account: Formal record of a type of asset, liability, equity, revenue, or expense that shows its beginning balance, increases and decreases (transactions), and resulting ending balance for a specified period.

Control account: An account designed for the purpose of controlling the transactions that are posted to it. Only transactions from subsidiary modules such as A/P, A/R, and inventory can be posted to a control account; manual journal entries cannot be posted to a control account. This prevents malicious or suspect entries from being made to material accounts, such as receivables, cash, or inventory, and provides a better audit trail.

Clearing account: An account to which postings are recorded temporarily because of a time gap between accounting transactions, organizational task distribution, or accounting transactions requiring clarifications.

Active account: An account in the chart of accounts to which journal entries are posted.

Account segmentation: A bookkeeping method of creating account codes based on the hierarchical structure of a business. The individual segments correspond to different business units, such as company, division, region, department, group, and so forth, and to different categories, such as travel expense, box office revenue, product line, and so forth.

Natural account segment: The first segment of an account code that identifies the type of account, such as fixed asset, liability, revenue, expense, and so forth. Account codes can consist of alphanumeric characters, not just numeric values, which is why they are not called account numbers.

Chart of accounts: The index or coded listing of the accounts in a general ledger.

General ledger (G/L): The main accounting record of a business. The G/L uses double-entry bookkeeping; it usually contains the accounts for all of a business's assets, liabilities, profit, loss, income, expenditure items, funds, and reserves.

Journal entry: A record of a transaction that usually includes transaction date, titles of affected accounts, amount of each debit and credit, and transaction description.

Posting: The process of recording journal entries (credits and debits) in the G/L.

Transaction: A business activity or event that debits one G/L account and credits another.

 

 

Setting Up Financial Accounting

Proper setup of financial and accounting functionality is the bedrock on which much of the automation of SAP Business One rests. With the right chart of accounts, posting periods, and account determination for automated journal entries, SAP Business One takes care of many tasks that are usually performed manually. That is why we spend much of this chapter on issues related to initial setup of financial accounting.

Step 1: Setting Up Your Posting Periods

The first step, which you may have already taken with your implementation partner, is to establish your posting periods: Will you have monthly posting periods? Daily? Somewhere in between? Will your fiscal year correspond to the calendar year or will it cross calendar years?

To set your posting periods, go to Administration → System Initialization → General Settings → Posting Periods tab. From here you can update the generated periods (such as date ranges) and create new ones. You can also set or change the start of the fiscal year.

While SAP Business One is very flexible when it comes to setting periods and fiscal years, you and your implementation partner should bear in mind the following important caveats:

  • Financial reports can be executed based on fiscal periods, but SAP Business One out-of-the-box monthly, quarterly, and yearly reports are based on a calendar year and not a fiscal year. To support quarterly reports based on 4-4-5 weeks, for example, you can create custom reports using XL Reporter (see Chapter 9).
  • You cannot have overlapping posting periods, and only one posting period is the default period at any one time.

Posting alert. If you want to post a journal entry in a previous period, go to Administration ? System Initialization ? General Settings ? Posting Periods and make the prior period current.

Step 2: Defining Your Account Segments

If you plan to use a segmented chart of accounts, the next step for your implementation partner and you is to decide on and define the account segments you need.

To define account segments, go to Administration → Setup → Financials → Account Segmentation. You must have at least the first, natural account segment, but you can rename it or change its length, as you can with all other segments. Usually, companies determine their account segments based on their business processes and financial reporting needs. They can represent divisions, departments, regions, lines of business, entities, branches, and so forth. Figure 3-2 shows how account segments are merged to create an account code.


Figure 3-2: A segmented account code

SAP Business One provides four default account segments and allows up to 10. During setup you can change the size and name of any segment but the first segment must always be the natural account segment.

Although you may currently use fewer than the ten segments available, it is recommended that you define additional segments to allow for growth. For example, if you are planning to expand, you may want to define an additional segment for business units you envision adding in the future.

Account segment alert. It is important that your implementation partner and you plan your use of account segments very carefully because you cannot add additional segments later on, existing segments cannot be deleted once the very first G/L account is created, and you cannot change the length or the type of a segment later on.

Once you have defined all your account segments in SAP Business One, you have created the foundation for a fully qualified chart of accounts, which, in other words, is the concatenation of all account segments. A fully qualified account code, as shown in Figure 3-2, includes all account segments. For example, a travel expense account code used by your business's marketing department looks exactly like the travel expense account code used by your sales department, except for the segment of the account code representing the department.

Step 3: Creating Your Chart of Accounts

Once you have determined your financial or posting periods and account segments, you are ready to create your chart of accounts in SAP Business One. The organization of the chart of accounts follows GAAP in which there is a separate "drawer" for accounts representing assets, liabilities, equity, revenues, cost of sales, expenses, financing, and other revenues and expenses. These drawers, which have been defined by SAP and cannot be changed, organize your accounts by level in a logical fashion appropriate to your financial accounting and reporting processes.

Chart of accounts reminder. The chart of accounts is an index of all G/L accounts used by your business. Every G/L account has an account code, an account description, and other information that determines the functions of the G/L account. To access the chart of accounts, select Financials → Chart of Accounts.

In the Chart of Accounts window, SAP Business One asks you to characterize every G/L account as either a title account or an active account and identify its level. Because only active accounts can be posted to in SAP Business One, it is a good practice to have all your accounts at the same level. In reports, a title account summarizes all the balances of each active account below it. In the account segmentation shown in Figure 3-3, level 4 is the lowest level that contains postings of transactions.


Figure 3-3: Chart of accounts organized by drawers and levels

Account activity alert. You cannot delete an account with activity against it. You can only make it inactive.

Foreign Currency Management

Foreign currency management is available for companies that use multiple currencies. In SAP Business One, you can specify G/L accounts and business partners as multicurrency. This allows you to post documents and journal transactions to these G/L accounts and business partners in any currency that has been defined in the SAP Business One company. Reconciliations, reports, and balances of multicurrency G/L accounts and business partners are performed, calculated, and displayed in the local currency. When a new G/L account is added, the currency defaults to multicurrency.

Step 4: Making Your G/L Account Determinations

One of the key advantages of SAP Business One is its ability to create various journal entries automatically, particularly those involving sales, purchasing, and inventory transactions. In a manual system, doing business and keeping track of it are separated. Invoices and other such documents are created first, and then later the accounting entries for keeping track of them are added. In SAP Business One, when an invoice is created, the accounting entries are created at the same time. But how does the application know how to create those accounting entries? G/L account determination is the process of telling SAP Business One in which accounts to put various sorts of automatically created accounting entries.

To take full advantage of the application's robust automation, you must take special care to provide SAP Business One with the correct information in the G/L Account Determination window.

To specify G/L accounts, go to Administration → Setup → Financials → G/L Account Determination.

G/L account determination tip. Your company's controller or accountant should provide final approval of your G/L account determination settings.

Basic Procedure

Determining your G/L accounts thoroughly and accurately is crucial to the automatic creation of journal entries in SAP Business One.

Figure 3-4 shows the mandatory fields for G/L account determination setup for sales documents, including the revenue account. The revenue account is the default revenue account used for any A/R invoice. It is overridden if a revenue account is specified in item or warehouse master data.


Figure 3-4: Mandatory fields for G/L Account Determination: Sales tab

Inventory alert. The Inventory tab is active only if the Default Valuation Method checkbox is selected on the Basic Initialization tab. Go to Main Menu → Administration → System Initialization →Company Details.

Setup tip. Your implementation partner will make sure that the taxes are maintained, as you cannot process a transaction in SAP Business One until a tax code is set up. You can find this in the Main Menu at Administration → Setup → Financials → Tax.

Step 5: Migrating Your Legacy Data

When making the change from your legacy financial accounting system to SAP Business One, you are faced with the challenge of having to keep historic data online for audit and research purposes as well as for ongoing day-to-day business activities.

The data transfer workbench add-on for SAP Business One is a migration tool that enables you to transfer data from your legacy system into SAP Business One. It transfers master data, such as business partner and item records, as well as transaction data, such as orders, invoices, and balances, since both types of data need to be available in SAP Business One.

How does the data transfer workbench work? Legacy data is exported into Microsoft Excel spreadsheet templates and then imported into SAP Business One. The data transfer workbench also allows you to import data directly from any ODBC database without using Microsoft Excel. Legacy data migration is a process that is best done collaboratively with your SAP implementation partner.

Setting Up 1099 Vendors (United States)

In the United States, certain vendors are subject to 1099 reporting, meaning that payments to them must be tracked and reported to the United States Internal Revenue Service (IRS). With a little setup, SAP Business One automates the tracking of payments that are subject to 1099 reporting and automatically creates 1099 forms at tax time.

When importing any existing vendor master data into SAP Business One, you should designate your 1099 vendors as such. This saves you from having to change business partner master data manually.

For setting up new vendors, you should know that the process of tracking 1099 payments starts in the Business Partner Master Data window. The Accounting tab has two subtabs, General andTax. Figure 3-5 shows two boxes on the lower right of the General tab that allow you to specify which 1099 form will be used to track payments to this vendor and the category for payments. With these boxes set, the payments to this vendor are tracked so that a 1099 form can be created and sent to the IRS as required.


Figure 3-5: Setting the 1099 Form and 1099 Box

 

 


 

Performing Daily Procedures

Once you have set up your chart of accounts and your G/L account determination, you are ready to use SAP Business One for day-to-day activities as well as for period- and year-end closing tasks.

Posting Manual Journal Entries

The majority of journal entries in SAP Business One come from one of the other modules; sales, purchasing, payment, and inventory documents post transactions automatically to the G/L. However, in GAAP accrual-based accounting, you sometimes need to make manual journal entries in the G/L, such as depreciation entries, accrual entries, correcting entries, and the like - anything, in other words, that would not come from one of the other SAP Business One modules. When a journal entry is added manually, it is recorded immediately and cannot be deleted - only reversed. (To do so, see "Reversing Transactions" later in this chapter.)

Using the Journal Entry window shown in Figure 3-6, you can create journal entries manually. The purpose of manual journal entries is to record transactions that are not automatically initiated from a subledger or from another process within SAP Business One. For example, a manual journal entry might be used to record a finance charge to a customer account or a service fee to a bank account.


Figure 3-6: Entering a manual journal entry in the Journal Entry window

To create a manual journal entry, go to Main Menu → Financials → Journal Entry. A journal entry can be displayed and created in an expanded editing mode or reduced editing mode. Figure 3-6 shows the expanded editing mode, which allows you to easily enter lines of data without having to scroll left and right.

Journal Entry screen tip. Normally from the Journal Entry screen, you make postings to G/L accounts. To display a list of G/L accounts from the G/L Acct/BP Code field, press Tab. You can also use a journal entry to book an entry to a business partner code (for example, when posting a finance charge to a business partner account). To display a list of business partners instead of a list of G/L accounts, press Control + Tab in the G/L Acct/BP Name field.

Making Recurring Postings

Some transactions recur monthly or weekly. The transaction amounts may not be the same each time and the percentages may not necessarily be fixed (although they recur on dates that are known in advance and are usually made up of the same G/L accounts).

You use recurring journal entries for expenses such as depreciation, equipment lease payments, payroll, and office rent and utility costs.

To access recurring postings, go to Main Menu → Financials → Recurring Postings.

Using Posting Templates

Posting templates help streamline the posting of individual journal entries that repeat from period to period but are more complicated than simple recurring postings. SAP Business One allows you to create fixed templates for such recurring journal entries. When recording this type of transaction, select the relevant template and fill in the missing items. SAP Business One allocates the amounts in accordance with the account assignment template.

The posting template function, for example, can work based on percentages when allocating an expense (for example, marketing costs) over two or more departments. With a posting template, you can take 100% of one account and allocate it automatically to the other relevant accounts based on fixed percentages.

To access the posting template function, go to Main Menu → Financials → Posting Templates.

Using Journal Vouchers

You can use journal vouchers to review a large volume of financial transactions before posting them. Before you post the entries as journal vouchers, you have the opportunity to edit, change, or delete entries, as required. Let's consider a couple of situations in which you would use journal vouchers. Perhaps you're training a new employee, and rather than risking that some or all of the new employee's journal entries might have to be reversed, you can allow the new employee to create journal vouchers that you can review. This eliminates the risk that the new employee could post incorrect journal entries that would have to be reversed later. You can also use journal vouchers to perform what-if analyses. You can run financial reports that include journal vouchers to determine the effect of the postings before you actually post them.
To create a journal voucher, go to Main Menu → Financials → Journal Vouchers.

In SAP Business One, a journal voucher is always used for a batch of transactions. In other systems, a journal voucher is used sometimes used for a single journal entry.

 

 

Maintaining Records

A variety of tasks come under the category of maintaining records, including reversing transactions, editing G/L accounts, and editing 1099s. This section covers these maintenance topics.

Reversing Transactions

If you need to reverse a transaction that had been posted to the general ledger using the Journal Entry window or the Journal Voucher window, SAP Business One provides you with three options:

  • Go to Main Menu → Financials → Journal Entry and create a correcting journal entry
  • Run the Transaction Journal Report and open the relevant journal entry, then click Cancel
  • Run the Transaction Journal Report and open the relevant journal entry, then check the Reverse box and click Update (see Figure 3-7)

Automatic reversal of manual journal entries is usually set up to occur on the first day of the following month. For a list of manual journal entries scheduled for reversal, go to Main Menu →Financials → Reverse Transactions. Note that this option is used primarily during month- and year-end closings.


Figure 3-7: Automatic reversal of manual journal entries

Editing G/L Accounts

In the normal course of business, it is not uncommon to have to adjust the chart of accounts from time to time. Using the Edit Chart of Accounts window, you can make changes to the chart of accounts, create new accounts, rearrange groupings, and change and edit existing accounts.
To display the Edit Chart of Accounts window, go to Main Menu → Financials → Edit Chart of Accounts, or Administration → Setup → Financials → Edit Chart of Accounts.

Creating codes for a set of newly created accounts is a common task when adding new accounts. The account code generator is a tool that enables you to assign codes to newly created account segments at the click of a button. In addition, you can insert a new G/L account in a number of different account groups (for example, departments) simultaneously. To access the account code generator, select Financials → Account Code Generator.

Editing 1099s (United States)

Vendors that are assigned a 1099 form within business partner master data will have A/P invoices and credit memos that accumulate 1099 amounts for year-end reporting to federal authorities. If a document is incorrectly posted with the wrong 1099 amount, form, or box, you can use the 1099 editing function to modify the data. To access 1099 editing, go to Main Menu → Financials → 1099 Editing.


Figure 3-8: The 1099 Editing window

Reviewing Changes to Data: Audit Trail

When a change is made to a document, master data record, or setup element, an audit trail is created. To view these changes, select Tools → Change Log from the SAP Business One menu bar to display a Change Log window that lists changes, including user, date, and time, that have been made to that particular document or master data record. You can then click on an entry to see the change that was made. If there are multiple changes, hold down Ctrl and click on two or more lines, then click on Show Differences in the lower right of the Change Log window to see what has changed between iterations of the document.


 

Period-End Procedures

Much of the work of financial accounting takes place at the end of each period and at the end of the year when transactions are examined and any corrections or adjustments are made. SAP Business One supports such activities in a variety of ways.

Period-End Closing Checklist

Period-end activities take place at the end of the month or the end of the quarter, or both, depending on how your financial accounting processes work. In either case, the checklist at the end of the period is much the same.

  • Make sure that all transactions for the period were posted properly, including adjustments and accruals
  • Print trial balance (a balance of each account and a current status)
  • Print vendor liabilities aging and customer receivables aging reports to reconcile receivable accounts with the G/L
  • Print inventory audit report to reconcile inventory with the G/L
  • Print financial statements
  • Make a backup of your database and put it in an off-site storage location
  • Close or inactivate the fiscal period by locking it using the posting period window

Year-End Closing Checklist

Year-end closing is a big event that affects many aspects of how SAP Business One operates. For example, a year-end close will zero all profit and loss account balances to the retained earnings account. Balance sheet accounts are summarized, bringing the balances forward as the beginning balances in the new fiscal year. All of this activity takes time, of course. The year can remain open until all adjusting entries are received from accountants and other reporting entities.

Here is a general year-end checklist:

  • Post final transactions for the period in all modules
  • Complete the period-end procedures
  • Post any final adjusting entries in the G/L
  • Close the last period of the fiscal year
  • Make a backup of your database and put it in an off-site storage location
  • Print 1099s
  • Print a final detailed trial balance
  • Print financial statements
  • Set up a new fiscal year
  • Run the period-end closing routine to close the fiscal year

Year-end closing alert. It is strongly recommended that you consider your year-end closing processes during setup and implementation. Soon after going live with SAP Business One, perform the first-month or first-quarter closing together with your implementation consultant. 

 

Incoming and Outgoing Payments

In SAP Business One, the functionality and reporting associated with processing payments are accessed through the banking module. This section provides only the basic information you need to get started. For more detailed, field-by-field information go to Help → Contents tab → Banking.

Incoming Payments

Incoming payments can be received in four ways: cash, checks, credit cards, and bank transfers. SAP Business One handles all of them in basically the same way - either by making a payment against a specific A/R invoice or by making a payment to a customer against two or more A/R invoices.

Creating Incoming Payments for Specific Invoices

The following steps explain how to create an incoming payment against specific invoices:

  1. Go to the Banking → Incoming Payments → Incoming Payments window shown in Figure 3-9
  2. Click the selection list button to the right of the Code field and then select a customer
  3. Review the Documents for Payment table that displays all the open invoices for the customer
  4. Select the invoices for which you want to apply a payment (press Ctrl and click to select more than one); the cumulative amount is displayed in the Total Amount Due field in the footer of the window
  5. Fill in all the required details
  6. Select the payment means icon from the SAP Business One toolbar to open the Payment Means window. Select the tab for the desired payment means, fill in the relevant details, and click OK, which brings you back to the Incoming Payments window.
  7. Click Add to post the document


Figure 3-9: Incoming Payments window

Once the incoming payment document is added, the following actions are taken:

  • Journal entries credit the customer's receivable account and debit the bank account or bank clearing account.
  • The payment is applied to the invoice.
  • The paid invoices are closed and no longer appear in the Open Items List or Documents for Payment table. Their related transactions are reconciled internally with payment-related transactions.

Creating Incoming Payments on Account

You can accept payments that are received without reference to specific invoice(s) - for example, a one-time point-of-sale purchase. To do this, you check the Payment on Account checkbox of theIncoming Payments window and fill in the required information. Once the incoming payment document has been posted, the appropriate journal entry is created.

For more information about managing incoming payments with SAP Business One, go to the linked files under Help → Contents tab → Banking → Incoming Payments.

Outgoing Payments

Just as with incoming payments, there are, generally speaking, four ways of sending outgoing payments: cash, checks, credit cards, and bank transfers. You can perform the following activities:

  • Create outgoing payments for business partners and accounts using various payment means
  • Print and void checks for a payment for various purposes, including employee bonuses
  • Create, trace, and process drafts of outgoing payment documents and drafts of checks for payment
  • Generate a Check Register Report

For more information about managing outgoing payments with SAP Business One, go to the linked files under Help → Contents tab → Banking → Outgoing Payments.

Payment Wizard

SAP Business One provides a payment wizard that allows you to create outgoing and incoming payments in batches for checks and bank transfers. The payments are created according to your selection criteria and payment methods. Using the payment wizard requires the following steps to properly prepare the relevant master data:

  1. Create a payment method by going to Administration → Setup → Banking → Payment Method
  2. Assign the payment method to the business partner on the Payment System tab of the Business Partner Master Data window
  3. Select the payment run methods you want to include in the payment wizard by going to Banking → Payment System → Payment Run Defaults

The payment wizard then steps you through the process of creating payments, deciding who you want to pay, how, and when.

To access the payment wizard, go to Banking → Payment System → Payment Wizard.

Printing Checks

Printing checks is an important payment process for most U.S. businesses. The setup for printing checks usually requires some help from an implementation partner. Part of the check printing process involves making sure that the correct printer is designated for check printing and that the check forms are loaded and ready to go.

Once properly set up, printing checks involves marking the method of payment as a check for all invoices or other outgoing payments. Then, when you do a check run, all payments so marked are printed as checks to be sent out.

 

 

Cost Accounting

In the United States, cost accounting is used to track the various cost and profit centers of a business. Using cost accounting, you can track departments, divisions, or various geographies as if they were separate entities. You can determine how much spending or revenue is being generated for various business purposes. In Europe and other parts of the world, segmented charts of accounts are not considered Generally Accepted Accounting Practices (GAAP); cost accounting is the prevalent method used.

Through SAP Business One's cost accounting functionality, you can establish profit centers for almost any purpose by going to Main Menu → Financials → Cost Accounting → Profit Centers.

Profit center definition. A profit center is a company unit or division that performs a specific business function. For example, a specific company unit might be responsible for manufacturing a product or providing a service. You can use the profit center function to define the profit centers that exist in your company. However, account segmentation often serves the same purpose and allows you to analyze profits and expenses by business unit in much the same way. Because of the general acceptance of account segmentation, this feature is rarely used by U.S. companies.

To use cost accounting, you define the various cost centers or departments in your company as profit centers. You then assign revenue and expense accounts to the profit centers so that any data relevant to a profit center can be updated automatically for all transactions entered in the application. Costs are allocated to profit centers using information that you define in a distribution rule (described in the next section). This means that any costs incurred are allocated to the profit centers on the basis of a specific distribution rule. If you decide that the way in which costs are allocated no longer reflects the way your company works, you simply change the distribution rule as required.

Cost accounting can be used to track and allocate shared expenses or revenues. In every company there are always expenses and sometimes even revenues that cannot be assigned to one specific business activity. These include administration costs, advertising costs, and financing costs. These indirect costs (and indirect revenues) are spread across multiple business activities using distribution rules.

How Are Distribution Rules Used?

A distribution rule is used to allocate direct and indirect costs and revenues to one or more profit centers. Consequently, each distribution rule contains information regarding the portion of costs or revenues to be allocated to each individual profit center.

To distribute indirect costs incurred by rent, for example, you could specify what portion of the total rented space a specific profit center uses. Alternatively, you could allocate by specifying the number of employees belonging to a profit center as a percentage of the total headcount in the company.

You can use a distribution rule for several different cost elements. If, for example, one store uses 1500 square feet of the total rented floor space of 2000 square feet while another uses only 500 square feet, you distribute the costs incurred by rent and professional cleaning services proportionately between the two stores on the basis of this information. To achieve this, you assign distribution rules to the appropriate expense accounts and revenue accounts.

To access the cost accounting distribution rules function, go to Main Menu → Financials → Cost Accounting → Distribution Rules.

 

 

Budgeting

You use the budget functions in SAP Business One to track corporate expenses and revenues. SAP Business One has an encumbrance function that allows you to block additional transactions if the budget is exceeded. SAP Business One can calculate budget amounts automatically based on a series of distribution rules that you specify. For example, you can base budget amounts on a previous year's budget and mark them up by a certain factor if you expect expenses or revenues will increase by a certain percentage. The markup can be distributed equally to all accounts or incrementally. SAP Business One can automate the process, but your accountant should help decide what distribution rules to use.

In the course of routine work, SAP Business One checks the debit side of accounts for which you have defined a budget amount, and, if the budget is exceeded, issues a warning or blocks the action, depending on which method was chosen.

To begin the process of defining a budget, set the required options in the Administration → System Initialization → General Settings → Budget tab. For all other budget functions, go to Main Menu →Financials → Budget.

Budget Scenarios

Budget scenarios are used for planning as well as budget tracking and reporting. They help you analyze your company's (or division's or department's) financial position given certain conditions. SAP Business One allows you to define these conditions as well as determine the fiscal period during which they apply. Whenever you set up a new company, a scenario called the "main budget" is created automatically. You can use this scenario as a basis of other scenarios, but you cannot edit or delete the main budget scenario. It is important to keep in mind that SAP Business One does all budgeting based on calendar months and the calendar year. To set up budget scenarios, go to Main Menu → Financials → Budget → Budget Scenarios.

Budget Distribution Methods

By default, each company in SAP Business One has three common methods of budget distribution:

  • Equal: This method distributes the budget amount equally among the months of the year.
  • Ascending order: This method distributes the budget amount in ascending order and is used when you increase your budget expenses over the year. For example, in January you use only a small portion of your budget, in February you increase your expenses, and so on.
  • Descending order: This method distributes the budget amount in descending order and can be used when you decrease your budget expenses over the year. For example, in January, you use the largest portion of your budget, in February you use a little less, and so on.

You can use these methods or define new budget distribution methods for the budget scenarios you create by going to Main Menu → Financials → Budget → Budget Distribution Methods.


Figure 3-10: Setting up budget scenarios

Budget distribution method alert. Do not define budget distribution methods here if you manage an annual budget. Instead, you should go to Administration → System Initialization →General Settings → Budget tab.

 

Inquiries and Reports

SAP Business One offers a comprehensive suite of standard financial and control reports. Choose Main Menu → Financials → Financial Reports to access standard reports such as those in the following table. In addition to these standard reports, SAP Business One offers advanced reports via XL Reporter (see Chapter 9).

Report

How to reach

What it shows

Customer receivables aging

Accounting → Aging

All of the receivables that are current and past due, usually by several periods; receivables aging in aggregate as well as detail for each customer. Customer statements can be accessed and printed from this report.

Vendor liabilities aging

Accounting → Aging

How much is owed each vendor and how much is current and past due (in the same way as the customer receivables aging report)

Balance sheet

Financial

Summary of the financial position of a business: value of a company's assets, total liabilities, and owner's equity

Trial balance

Financial

Details for each account: beginning balance for a particular period, all of the debits and credits, and the ending balance; used to reconcile account balances with each other and with external sources of information.

Profit and loss statement

Financial

Income of your business

Cash flow

Financial

Cash flow forecast (statement of cash flow is available through XL Reporter (see Chapter 9)

Document journal

Accounting

All the detailed journal entries created manually or automatically

Transaction journal

Accounting

Posted journal entries by journal entry number, with drill-down to related transactions for more detail

Inventory audit

Main Menu → Inventory →Inventory Reports

Listing of all items in inventory, along with details of every posted transaction related to the item and cost of the remaining on-hand quantities; used by accountants and auditors to reconcile inventory transactions to their G/L

Check register

Main Menu → Banking →Outgoing Payments

Listing of all checks including complete details such as account code, vendor ID, payment amount, status, whether it was printed, and who printed it
Accounting & Financials

Chart of Accounts

author01 SITSPL Team 9 Apr 3 min read

With the growth of  business, challenges also grow in managing accounts and finances. An automated and integrated accounting & financials management solution which SAP BusinessOne is, promises for a real time accounting. This is a core component of SAP BusinessOne covers all key processes such as ledger  and journal entries, accounts receivable and accounts payable.

 

SAP Business One Accounting & Financials Benefits

  •  Streamlines financial operations
  •  Faster closing process
  •  Improves decision making 

 

 

This module includes

  • All functions and reports required for accounting and financial operations of the company
  • All tax-related reports according to the regulations in each country
  • Enabling with documentation of all financial and accounting-related transactions

Chart of Account:A chart of account lists all of a company's general ledger(G/L) accounts and is the basis for its reporting and posting activities. During first implementation , the setting up of financial accounting is done. GAAP (Generally Accepted Accounting Principles) and country or state (e.g. for India, India A S )specific regulations are applied as suggested by tax adviser and accountant of the company are applied in that. The SAP Business One provides with predefined charts of accounts for individual countries based on local requirements. It is SAP Partner like us ( Specialised IT Squad Pvt. Ltd. ) who  suggests based on an analysis before  implementation which predefined chart of account has to be used. In addition to that our experts also suggests for additions and adjustments what are necessary for the company.

The accounts are organised hierarchically according to drawers, titles, and active accounts. These terms are explained below:

  • Drawers: The organisation of  chart of accounts follows GAAP in which there is a separate "drawer"  for accounts representing assets, liabilities, equity, revenues, cost of sales, expenses, financing, and other revenues and expenses. Within each drawer company's accounts are organised by levels in a logical fashion in consonance with the company's financial accounting processes. Drawers are the organisational unit on the top level and predefined drawers with SAP BusinessOne can not be changed.
  • Titles and Active Accounts: Every G/L account is defined as either a title account or an active account. A title account groups together all of the active accounts. In financial reports, a title summarises all of the balances of each active account below it. Active accounts contain postings of transactions.
Accounting & Financials

Journal Entry

author02 SITSPL TEAM 7 Apr 1 min read

This section allows users to create new journal entries and search for existing ones. It is to mention here that most journal entries  are posted automatically from sales, purchasing and banking areas. In addition, users can automatically allocate each transaction to a project or a cost centre. The journal entries  can be created from previously defined posting  template manually.

Accounting & Financials

Posting Template

author03 SITSPL Team 6 Apr 2 min read

Posting Templates:Every commercial organisation present their transaction in template format, in which only the recorded amounts vary from transaction to transaction (e.g. the separation of VAT in purchasing or sales). SAP BusinessOne enables to create fixed template for such recurrent  journal entries. When recording this type of transaction, choose the relevant template and fill in the missing items. SAP BusinessOne separates the amounts in accordance with the account assignment template.

  • Creating Posting Template: One can create  percentage-based template for journal entries requiring a format that includes same account and/or business partners and is characterised by specific ratio of amounts.
  • Removing Posting Template: This is irreversible process so it is advisable to exercise the option for the template which is to be discarded finally.
  • Posting Templates Window: This window  displays posting template according to defined criteria.
Accounting & Financials

Recurring Posting

author04 SITSPL Team 6 Apr 2 min read

Recurring Posting:Every business has transactions that recur monthly or weekly. For example, recurring journal entries can be payroll orders or standing instructions that are paid by the bank every month.Although the transaction recur on predefined dates and usually comprise the same objects,the transaction amounts are not necessarily the same each time nor do the percentages have to be fixed.

Accounting & Financials

Reverse Transactions

author05 SITSPL Team 6 Apr 1 min read

Reverse Transactions:This functionality displays a list of all manual journal entries scheduled for automatic reversal, which can be executed. The reverse transactions window is used to create reverse transactions for selected journal entries.

Accounting & Financials

Exchange Rate Differences

author06 SITSPL TEAM 6 Apr 1 min read

Exchange Rate Differences: Any company maintaining foreign currency(FC)business partners and/or accounts,SAP BusinessOne conducts all related bookkeeping in FC.Since company conducts bookkeeping system in local currency(LC),SAP BusinessOne expresses every FC transaction in LC according to the FC exchange rate on the day of transaction. The fluctuations in FC exchange rates on daily basis obviously causes mismatch in LC and FC. The Exchange Rate Differences functionality periodically recalculates the LC and FC balances according to the exchange rate on the day the differences are calculated. SAP BusinessOne provides recommendations for executing automatic journal transaction for exchange rate differences in FC business partners and accounts, correct to a given date. This functionality reconciles the FC card balance and the LC balance, considering the fluctuation in FC exchange rates.

 

Accounting & Financials

Conversion Differance

author07 SITSPL Team 6 Apr 1 min read

Conversion Difference:This SAP BusinessOne functionality fuction is relevant for companies  whose defined system currency is different from local currencySAP BusinessOne recommends making journalentries automaticallyfor the differencesin the system currency.Using this functionality companies make adjustments betweenthe account/business partner balance in the system currency and the balancein the local currency.

Accounting & Financials

Financial Report Template

author08 SITSPL Team 6 Apr 2 min read

Financial Report Template:  These templates are required for creating following reports

  • Balance Sheet
  • Profit and Loss Statement
  • Trial Balance
  • Cash Flow
  • FA Hisoric Reports
Accounting & Financials

Working with Fixed Assets

author01 SITSPL Team 6 Apr 8 min read

Working with Fixed Assets

 

SAP Business One gives an efficient management for the fixed assets from both the taxation and accounting perspectives .This functionality provides the company with physical as well as financial control over the complete asset life cycle beginning from acquisition through depreciation, revaluation and disposal. Moreover, various reports in SAP Business One to evaluate and process the fixed asset-related data.

  • Account Determination: It enables the system to automatically determine the relevant general ledger account for a fixed asset when an asset transaction takes place. SAP Business One lets us define multiple account determination sets. For each asset, one  can apply more than one set of G/L accounts, so that the asset value and transactions can be posted to more than one accounting area at the same time.
  • Depreciation Types: It is used to define different depreciation area of an asset class. Then , by assigning the asset class to a fixed asset, the depreciation calculation methods are finally applied to the asset. In general, SAP Business One let us  following methods

        >Straight Line Methods

        >Straight Line Period control Method

        >Declining Balance Method

        >Multilevel Method

        >Immediate Write-Off Method

        >Special Depreciation Method

        >Manual Depreciation Method

        >Accelerated Method

 SAP Business One supports following types of depreciation areas

        >Posting to G/L

        >Derived Area: This is used for carrying out special depreciations in which same depreciation type could be specified as both the normal and alternative. Derived area is used only for information purposes and it is not posted in general ledger.

        >Additional Area: This area can be utilised to compare the effects of using different depreciation areas and in addition carry out additional depreciation calculation for a different depreciation area in parallel to actual calculation. The parallel calculation is for information purposes only and no posting is carried out in the general ledger.

  •  About Assets management:

         >In SAP Business One, Asset Classes are used to classify fixed assets according to business and legal requirements. For each Asset Class one can assign various depreciation areas and depreciation types and after these depreciation area and depreciation types are taken to the Asset Master Data

         >All of fixed assets can be managed in the Asset Master Data. After an asset is capitalised, one can view and maintain the asset depreciation details in the Asset Master Data.

  •  Asset Transaction: SAP Business One allows a series of transaction for fixed assets as follows:

         >Capitalization: It is the process of recording an acquisition and production cost as a fixed asset(written off as depreciation over several accounting periods) instead of an expense( charged against earnings in one accounting  period).When company acquires an asset, SAP Business One automatically capitalises it .SAP Business One lets us create a capitalisation document for multiple assets. The system creates a journal entry for each Posting to G/L depreciation area associated with the assets. In the journal entry, the asset balance sheet accounts are debited and the acquisition clearing accounts are credited

                                           * A/P Invoice

                                           * A/P Correction Invoice

         >Capitalisation Credit Memo: A capitalization credit memo, which reduces the acquisition and production costs of an asset, essentially represents the opposite of an invoice for a purchased asset. To reduce the acquisition and production costs of an asset, you can use any of the following documents:
                       #Capitalization credit memo-When you reduce the acquisition and production costs of an asset using a capitalization credit memo, you can apply the reduction to any depreciation area associated with the asset. If the depreciation area you specify is not a Posting to G/L area, no journal entry is generated. SAP Business One lets you create a capitalization credit memo for multiple assets. If you select all depreciation areas, the system creates a journal entry for each Posting to G/L depreciation area associated with the assets. In the journal entry, the asset balance sheet accounts are credited and the acquisition clearing accounts are debited.
                       #A/P credit memo
                       #A/P correction invoice           

           >Retirement: In accounting, retiring a fixed asset means removing it from a corporate balance sheet and operating activities. In SAP Business One, you can retire an asset in the following ways:
                       #Retirement through Sale: A fixed asset is sold with a profit or loss. If you want to specify the customer information for the asset sale, you can create an A/R invoice to retire the asset. Upon the creation of the A/R invoice, a retirement document is generated automatically. However, if you do not want to specify the customer information, you can directly create a retirement document using the Sales type.
                       #Retirement through Scrapping: If a fixed asset leaves the asset portfolio without any profit or loss being made, you can retire the asset by creating a retirement document with the scrapping type. In this case, the system posts the remaining book value of the asset during retirement as an expense.
                      #Complete or Partial Retirement: A retirement can refer to an entire asset (complete retirement) or part of an asset (partial retirement). You can trigger the partial retirement of an asset by entering the retired acquisition and production costs or the retired quantity. When you enter the retired acquisition and production costs or quantity, the system determines the percentage that is deducted from the asset. When you create a partial retirement for an asset, the retirement reduces the asset's acquisition and production costs and thereby affects the planned depreciation. The date on which the partial retirement reduces the asset's acquisition and production costs is calculated based on the asset value date in the retirement document and the retirement convention you specified for the asset's depreciation type. When you retire an asset completely, the asset becomes inactive and you can no longer carry out any transactions with it.

            >Transfer: In SAP Business One, you can transfer a fixed asset to a different asset class or a different asset master data record. This may be necessary if you want to do any of the following:
                      #Assign a different set of G/L accounts to an asset: If you want to change the G/L accounts for a certain asset, transferring the asset offers an alternative to creating a completely new asset. Once you transfer the asset, the system copies all depreciation data to the target asset. You only need to assign the new set of G/L accounts to the target asset. After the transfer, the system continues carrying out the asset's depreciation and transactions with the new set of G/L accounts. After you completely transfer an asset to another asset, the system deactivates the source asset and carries out the depreciation calculation for the target asset with its own depreciation types.
                     #Create different asset master records for the same asset: If you use a certain type of asset in multiple locations, it may be necessary to maintain different master data records for this asset. Transferring the asset enables you to create and store different master records for an asset, and you do not need to create a completely new asset in the system.
                     #Change the asset class of an asset for which bookings have already been carried out
                     #Change the asset class when an asset construction has been completed
                     #For an asset under construction, it is often necessary to reflect the asset at the year end in the asset history sheet. To achieve this, as well as monitor the construction progress, you may need to create a specific asset class for this asset. After the construction is completed and the asset is ready to be used, you can move the asset to a designated asset class.
[NOTE: Fixed assets that already have posted special depreciation cannot be transferred to another asset. A valid workaround is to cancel the manual depreciation posting (if any), cancel the acquisition, and then post the correct values to the new fixed asset. To keep a link between the two fixed assets, you might want to enter the old fixed asset number in the description field. This link is for information purposes only. Another solution is to retire the old fixed asset and then do the new acquisition.]

 

            >Manual Depreciation: SAP Business One can use depreciation types to automatically determine the planned depreciation for an asset in a particular fiscal year. However, you may want to manually depreciate the asset in case one of the following situations arises:
                    #There is an unexpected permanent reduction in the value of the asset caused, for example, by an accident.

                    #You want to manually trigger the special depreciation of the asset.

                    #You are using the unit-of-production depreciation method and want to manually plan the asset's depreciation.
SAP Business One lets you create the following types of manual depreciation documents:
                    #Ordinary Depreciation – Refers to the manual ordinary depreciation. Generally, ordinary depreciation includes the planned ordinary depreciation and the manual ordinary depreciation. The former is the depreciation calculated and carried out automatically by the system based on the depreciation type you assign to the asset. The latter is the depreciation you manually perform using the manual depreciation document. You can view the sum of both depreciation amounts in the Ordinary Depreciation row on the Values subtab in the asset master data.
                    #Unplanned Depreciation – Refers to the unplanned depreciation, usually carried out when there is an unexpected reduction in the value of an asset resulting, for example, from an accident.
                    #Special Depreciation – Refers to the manual special depreciation. SAP Business One can carry out the special depreciation automatically for an asset, which is known as the automatic special depreciation. You can assign a depreciation type with the Special Depreciation method to an asset, and the system automatically calculates the special depreciation when it is due.
If you want to manually carry out the special depreciation, use the manual depreciation document and assign a depreciation type with the Manual Depreciation method. You can view the sum of both depreciation amounts in the Special Depreciation row on the Values subtab in the asset master data.
                   #Appreciation – Refers to the increase in an asset's book value to offset the asset's unplanned depreciation. Usually a revaluation of an asset can also result in the increase of the asset's value in the book. SAP Business One regards the two kinds of value increase in an asset as a write-up. To view an asset's write-up information, see the Write-Up row on the Values subtab in the asset master data.

            >Depreciation Run: Each single asset transaction leads to a change in planned depreciation, but not to a posting to the relevant general ledger accounts. Only when you execute a depreciation run does the system carry out all depreciations planned up to the specified date.The depreciation run only covers automatic depreciation. When you create manual depreciations, the associated values are immediately posted to the general ledger accounts.
To trigger the posting of planned depreciation, it is usually sufficient to start one depreciation run for several posting periods. However, it is possible to execute several depreciation runs for the same depreciation period. A repeat run might be necessary, for example, if the depreciation terms have been changed for individual assets in connection with the year-end closing.
In depreciation runs, unposted planned depreciation is always posted using the catch-up method. In the catch-up method, the system gathers any planned depreciation that has not been posted yet for the entire depreciation period and then creates a collective posting. Therefore, the posting can also include planned depreciation from several periods.

Example:A planned depreciation of 1,2000 INR for the current fiscal year has been calculated for an asset. The depreciation run is executed for the first time in March. The system proportionally posts a depreciation amount of 3000 INR for the months from January to March. This means the depreciation for January and February is done in March in general ledger accounting.

 

A depreciation run can be repeated as often as necessary, provided no depreciation run has been executed for the following periods. A repeat depreciation run may be necessary if the asset values have changed once again after posting planned depreciation. When repeating a depreciation run, only the value differences to the posting of the last depreciation run are considered.
Caution: You can execute a depreciation run only when no depreciation run has been executed for the following periods. Within one period you can execute as many depreciation runs as required.

Note: In order to keep the number of financial documents to a minimum, we recommend that you carry out only one depreciation run per fiscal year.
SAP Business One lets you preview the details of the depreciation run before you execute it.

            >Asset Revaluation: Asset revaluation is a technique used to revaluate a company's assets to take into account inflation or changes in value since the assets were acquired. Usually, revaluations are carried out for an asset whenever there is a difference between the asset's current market value and its value on the company's balance sheet.

A revaluation reserve arises when the value of an asset becomes greater than the value at which it was previously carried on the balance sheet. However, not every increase in the asset value is added to the revaluation reserve. The exact treatment depends on the history of the asset – whether the asset has been impaired, that is, whether the asset has had unplanned depreciation carried out.

In the case of an asset having unplanned depreciation, the value increase resulting from the revaluation is used to reverse the planned depreciation. And if there is any surplus, it is added to the revaluation reserve.
Similarly, a value decrease resulting from the revaluation is used to reduce the revaluation reserve, with any excess treated as unplanned depreciation and taken as a loss.

Accounting   Financials

Budget

author02 SITSPL Team 6 Apr 5 min read

Budget

Scenarios can be different.

  • Display Accounts with no Budget:  Displays G/L accounts for which no budget amount has been entered.
  • Dimension: From the dropdown list, select an active dimension for which you want to define the budget.
  • Acct No., Acct Name: Account code and name as defined in the chart of accounts.
  • Parent Acct: A percentage of this account will be the budget for the account in focus.
  • %: Percentage of the parent account amount.[Note: Since the amount in the parent account is not divided between the child accounts, the rate can exceed 100%].
  • Method: Specify the required method according to which the budget is distributed over months:

               >Equal – The budget amount is distributed equally among 12 months.

               >Ascending Order – The budget is distributed in such a way that most of it is dedicated to the last months, and only a

                     small part is used during the first months.
               >Descending Series – The budget is distributed in such a way that most of it is dedicated to the first months of the

                     year, and the amount assigned to each month decreases as the year progresses.

               >Manual – Enables you to manually specify how the budget is distributed among the different months. You can, for

                    example, decide that the budget is distributed among two months only.
               >Define New – Opens the Budget Distribution Method window where you can define new budget distribution methods.

  • Debit: Budget amount in local currency. Budget calculation is always performed against the debit side.
  • Credit: Budget amount for incoming payment accounts, for reporting purposes only.
  • Actual: Actual amount in this account based on its journal entries,
  • Distr. Rule Code, Distr. Rule Name: Displays the code and name of the distribution rules to which the budget amount is    distributed. You can add cost centres by right-clicking the G/L account row and choosing Add Cost Centre.
  • Distr. Rule Debit: Enter the budget amount, in local currency or system currency, that you want to distribute to each distribution rule. Budget calculation is always performed against the debit side.
  • Distr. Rule Credit: Enter the budget amount, in local currency or system currency, that you want to distribute to each distribution rule. This is the budget amount for incoming payment accounts, for reporting purposes only.
  • Distr. Rule Actual: Displays the actual amount, in local currency or system currency, accrued in this account as a result of the distribution rule.

 

Accounting   Financials

Cost Accounting

author03 SITSPL Team 6 Apr 1 min read

Cost Accounting

In addition to their regular bookkeeping, many businesses perform expense and revenue analyses that measure the profitability of each of their business activities or departments. The cost accounting function in SAP Business One enables you to define sets of cost centres and distribution rules. Generating respective reports provides important cost-related information.
SAP Business One provides two cost accounting methods: distribution rules and projects.

Accounting   Financials

Revaluation

author04 SITSPL Team 6 Apr 1 min read

Revaluation

The revaluation functions enable you to update values of G/L account balances, cost of sale account balances, and inventory. The revaluation functions enable you to update values of G/L account balances, cost of sale account balances, and inventory.

  • G/L Account Revaluation
  • Cost of Sale Revaluation
  • Inventory Revaluation Wizard
Accounting   Financials

TDS: INDIA

author01 SITSPL Team 9 Apr 1 min read

TDS:  India

In the SAP Business One Financial module, you can do the followings with TDS:
Make adjustments to the TDS amount per invoices which could be regular A/P invoices or A/P down payment Invoices. Set up an acknowledgement number Generate the Form 16A report. Generate an e-TDS file for e-TDS return.

Accounting   Financials

Financial Reports

author02 SITSPL Team 7 Apr 3 min read

Financial Reports

This menu option includes all reports pertaining to the analysis of the financial and accounting activities of the company. The reports comprise the following main categories:

  • Financial
  • Accounting: The accounting Reports folder  contains:

                      >Reports that provide an overview of the objects and data in your accounts

                      >Tax reports that you must submit to the tax authorities

  • Comparison: These reports let you review the results of business activities of two posting periods, or compare two companies.                           

                      >Balance Sheet Comparison

                      >Trial Balance Comparison

                      >Profit and Loss Statement Comparison

Accounting   Financials

Incoming Excise Invoice:India

author03 SITSPL Team 6 Apr 2 min read

Incoming Excise Invoice: India
Use this window to create an excise invoice based on a goods receipt PO, return, or outgoing excise invoice. The system automatically generates an incoming excise invoice when you create the following documents:

  •  A/R credit memo that is based on A/R invoices and contains items with CENVAT taxes
  • Cancellation document whose base document has been copied to an outgoing excise invoice
Accounting   Financials

Outgoing Excise Invoice: India

author04 SITSPL Team 6 Apr 2 min read

Outgoing Excise Invoice: India

 

Use this window to create an excise invoice based on a delivery, goods return, or inventory transfer. The system automatically generates an outgoing excise invoice when you create the following documents:

  • A/P credit memo that is based on A/P invoices and contains items with CENVAT taxes
  • Cancellation document whose base document has been copied to an incoming excise invoice

SAP Business One provides a query that will show Inventory Transfer relevant OEIs that haven’t been copied to any IEI.