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Expert on Phone Newsletter October 2008

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Reconciliation Engine in

2007

Notes

ISV solution

Welcome to the October edition of the “Expert on Phone Newsletter”.

This month's events around the world have been unprecedented. We hope that

we can momentarily help you forget them with this newsletter.

The EoP team have noticed a marked increase in finance related consulting questions

in October, which is reflected in our topics for this month. In this issue you will find

information about reconciling down payments & reconciliation upgrade journals due

to exchange rates, we describe how the application calculates Realised/Unrealised

Exchange rates, where to define formats for imported bank statements & what date

to use in the MRP calculation. Also, we illustrate how to delete unwanted currencies

and print both BP catalogue and Item Code numbers using PLD. Have you ever

wondered what a ‘Transaction Type’ number is & what document it relates to? Then

please read on.

Should you have any comments/feedback please send to d.shah@sap.com.

Index

How to reconcile a down payment request?

How to delete currencies?

How does SAP Business One deal with Realised and Unrealised Exchange Rate

Differences?

What is the date used in MRP to calculate the requirements?

Where is the format of the bank statement to be imported, using the payment

engine add-on, defined?

How to print both BP catalogue and Item code?

How to deal with reconciliation upgrade journals of the inconsistency type ‘Partial Exchange Rates Differences Recognition’?

How to identify items which have no item cost?

What are the ‘Transaction Type’ numbers?

Why does SAP Business One display a system message alerting the user that a

cash account is required when making a payment?

Please note that we will endeavour to keep this document up to date, but for the most current information please refer to the individual wiki articles.

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How to reconcile a down payment request?

Down Payment Request in version 2007 Online Help

In case of the ‘Down Payment Request’, the payment can only be made in the Incoming/Outgoing Payment window.

The ‘Down Payment Request’ cannot be reconciled with an invoice using the reconciliation functionality.

In the incoming/outgoing payment, if the total of the ‘Down Payment Request’ fully matches the total of the invoice

it is not possible to add the payment. In this scenario the error message ‘Confirmation amount must be greater than

zero’ will be displayed and it will not be possible to reconcile them. SAP Business One does not expect a down

payment to cover 100%f the ensuing invoice, the ‘Reserve Invoice’ functionality is designed for this scenario. It is

standard system behaviour that a payment cannot be added with a zero value.

The workaround is therefore to reconcile the ‘Down Payment Request’ with the relevant Invoice when paying

another invoice. For example, in the above screenshot down payment request number 6 cannot be reconciled with

invoice number 64. However, if invoice number 34 is paid at the same time as down payment request number 6 and

invoice number 64 then the incoming payment will add. In this case the reconciliation is possible because the total

paid in the incoming payment is greater than zero.

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Index

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How to delete currencies?

Note: 1064836

In some countries the best practice is to use the currency symbol instead of the international currency code.

In SAP Business One currencies are defined under Administration -> Setup -> Financials -> Currencies. Once a

currency code is saved or comes predefined, it is not possible to change it. It is however possible to remove the entire

row of an already defined currency, as long as this currency has not been involved in any transaction or is defined as

local currency, system currency, account or business partner currency or in a price list.

To remove a currency from SAP Business One, follow the steps below:

Go to Administration -> Setup -> Financials -> Currencies. Right-click on the row containing the currency to be

removed & select ‘Remove’.

Click on ’Yes’ in the system message window:

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The currency has now been removed successfully:

To replace the previously removed ‘EUR’ currency, a new currency showing the currency symbol in the ‘Code’ field

can be defined:

The symbol then replaces the international currency code in documents:

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If the currency is already selected in some setup it will not be possible to remove it. The user will receive the

following error message:

During the initial set-up or implementation phase of SAP Business One it is possible to change currencies & currency

settings. For example, there are no transactions in the database & both local & system currency may still be

changed:

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If local and system currencies are greyed out this means that there are already transactions in the database.

It is not possible to change the setup since there are already transactions in the database. It is however possible to

use the workaround from our February Newsletter to solve the issue in the print layout designer (How can the $ sign

be displayed instead of the currency code, USD?). Index

Index

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How does SAP Business One deal with Realised and Unrealised Exchange Rate Differences?

When trading with foreign currency (FC) business partners (BP), it is inevitable that fluctuations in the global currency

market affect a company’s accounts. An invoice issued some weeks ago in a definitive amount of FC had at that point

in time a definite value in local currency (LC) according to the exchange rate of the posting date. This invoice still has

the FC value when payment is received, yet the LC value of this payment may not be the very same as it was when

the invoice was issued due to a change in the exchange rate.

Realised exchange rate differences are the exact delta amounts between the values in LC of FC invoice & payment.

SAP Business One will post these differences in most cases automatically.

Unrealised exchange rate differences refer to the delta amount in LC of an unpaid FC invoice at a precise point in

time, generally at month-end or year-end closing reporting. These unrealised exchange rate differences are usually

reversed at the first day of the new period.

When executing the ‘Exchange Rates Differences’ functionality under ‘Financials’, SAP Business One calculates

exchange rates differences postings & proposes to save these journals to the permanent file. The company

accountant then verifies the values, manually approves them & then executes the postings.

For illustration purposes, a UK localisation database is used here, SAP Business One 2007 A pl42. The exchange rate

differences posting method is ‘Indirect’ (1 unit of FC = x units of LC, where ‘x’ is calculated according to the rate

defined under Administration -> Exchange rates). LC & system currency (SC) is GBP & FC in the example is EUR.

The following scenarios will be explained:

1.) FC invoice fully paid, exchange rate differs between posting dates of invoice & payment. 2.) FC invoice not paid at month-end. 3.) FC invoice partially paid, exchange rate differs between posting dates of invoice & partial payment &

execution date of month-end closing. 4.) FC invoice to be paid in instalments, exchange rate differs between posting dates of invoice & instalment

payment & execution date of month-end closing.

The exchange rate differences accounts for automatic & semiautomatic postings in SAP Business One are defined

under Administration -> Setup -> Financials -> GL account Determination -> All Tabs, example ‘Sales’:

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The exchange rates (Administration -> Exchange Rates & Indexes) are defined as follows:

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1.) FC invoice fully paid, exchange rate differs between posting dates of invoice & payment.

Consider this AR invoice for an FC BP:

& the associated journal entry (JE):

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According to the exchange rate on the posting date (EUR 1 = GBP 1.21), the calculation is as follows:

Document Posting Date Rate Debit/Credit

FC

Debit/Credit

LC

Delta

AR invoice

106

20.10.2008 1.21 1000.00 826.45 -

Full payment of this invoice on 24.10.2008 (Exchange Rate: EUR 1 = GBP1.25) results in this journal:

SAP Business One will automatically post the LC loss due to the exchange rate difference into the appropriate account

(see above for GL account determination). The delta is calculated as follows:

Document Posting Date Rate Debit/Credit

FC

Debit/Credit

LC

Delta

AR invoice

106

20.10.2008 1.21 1000.00 826.45 -

Incoming

payment 41

24.10.2008 1.25 1000.00 800.00 800-826.45 =

Loss 26.45

2.) FC invoice not paid at month-end

In order to report accurately on monies owed to our company at the end of an accounting period, unpaid FC invoices

must be valued according to the rate on the execution day, here 31.10.2008. Our company’s books must reflect that

this FC BP owes us a definite amount of LC. SAP Business One therefore allows semiautomatic postings of exchange

rate differences in open documents. Using the same AR invoice as above, in this example it remains unpaid on the

execution day. Therefore the proposed exchange rates differences posting is as follows:

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The calculation is as follows:

Document Posting Date Rate Debit/Credit

FC

Debit/Credit

LC

Delta

AR invoice

106

20.10.2008 1.21 1000.00 826.45 -

AR invoice

106 open

value

31.10.2008 1.26 1000.00 793.65 793.65-

826.45 = Loss

32.80

Hence, on 31.10.2008 the BP does not owe our company GBP 826.45, but according to the exchange rate GBP

793.65. This reduces the expected amount to be paid to our company by GBP 32.80 on 31.10.2008.

Naturally, this unrealised exchange rate difference must be reversed on the next day, the first day of the new

accounting period, since we expect to be paid in full for this invoice at a future date, where the exchange rates

differences posting will take place automatically with the incoming payment as illustrated above in Scenario 1.

3.) FC invoice partially paid, exchange rate differs between posting dates of invoice & partial payment & execution

date of month-end closing.

It happens frequently that although no payments by instalments had been previously agreed, a customer makes

several payments against an invoice. In the case of an FC BP this naturally affects our company’s revenue with respect

to the exact amounts in LC we gain from the transaction.

Considering the AR invoice 106 from above & applying a partial payment of EUR 500.00 on 24.10.2008 (Exchange

Rate: EUR 1 = GBP1.25), the associated journal entry will show the following:

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The calculation is as follows:

Document Posting Date Rate Debit/Credit

FC

Debit/Credit

LC

Delta

AR invoice

106

20.10.2008 1.21 1000.00 826.45 -

Incoming

Payment 42

24.10.2005 1.25 500.00 400.00 400.00 –

413.22* =

Loss 13.22

*1000 FC = 826.446281 LC at a rate of 1.21, therefore 500 FC = 826.446281 LC/2 = 413.223141. This is rounded to

413.22. Hence 413.22 LC would be the expected amount in LC for a payment of 500 FC according to the exchange

rate in the invoice.

Should this invoice remain open at month end, using these selection criteria, the proposed exchange rates

differences posting will be:

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The calculation is as follows:

Document Posting Date Rate Debit/Credit

FC

Debit/Credit

LC

Delta

AR invoice

106

20.10.2008 1.21 1000.00 826.45 -

Incoming

Payment 42

24.10.2008 1.25 500.00 400.00 400.00 –

413.22 = Loss

13.22

Month-end 31.10.2008 1.26 500.00 396.83 396.83-

413.22 = Loss

16.40

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4.) FC invoice to be paid in instalments, exchange rate differs between posting dates of invoice & instalment payment

& execution date of month-end closing.

Invoices that are to be paid in instalments have a fundamentally different journal posting reflecting the expected

payments. Consider this invoice & the associated JE:

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This invoice is to be paid in 4 instalments of equal value, each expected payment is kept in a separate row in the JE.

The first payment is due on 21.10.2008, where the exchange rate is defined to be 1.24. Therefore, the JE of the

incoming payment at that date will reflect the following:

The exchange rate differences calculation is as follows:

Document Posting Date Rate Debit/Credit

FC

Debit/Credit

LC

Delta

AR invoice

107

20.10.2008 1.21 250.00 206.61 -

Incoming

Payment 44

21.10.2008 1.24 250.00 201.61 201.61 –

206.61 = Loss

5.00

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The second payment on 30.10.2008 with a rate of 1.22 is calculated as follows:

Document Posting Date Rate Debit/Credit

FC

Debit/Credit

LC

Delta

AR invoice

107

20.10.2008 1.21 250.000 206.61 -

Incoming

Payment 45

30.10.2008 1.22 250.00 204.92 204.92 –

206.61 = Loss

1.69

On 31.10.2008 the outstanding amount of invoice 107 is hence EUR 500.00. According to the rate of 1.26, the

customer owes our company at that precise point in time EUR 500.00 which translates into an amount of GBP 396.83.

To summarise:

Document Posting Date Rate Debit/Credit

FC

Debit/Credit

LC

Delta

AR invoice

107

20.10.2008 1.21 1000.00 826.45 -

Incoming

Payment 44

21.10.2008 1.24 250.00 201.61 - 5.00

Incoming

Payment 45

30.10.2008 1.22 250.00 204.92 - 1.69

Month end 31.10.2008 1.26 500.00 396.83 396.83-

413.22 = Loss

16.40

The initial expectation of revenue for this particular invoice in LC was GBP 826.45. The realized exchange rate

differences that were generated with the incoming payments indicate that the actual revenue in LC was GBP6.69

(5.00+1.69) less than initially expected.

The remaining amount of EUR 500.00 had been valued at GBP 413.23 when the invoice had been posted. According

to the exchange rate defined for the month-end execution day, 1.26, this expectation needs to be reduced by GBP

16.40.

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Naturally, the exchange rates differences journal created upon month-end will be reversed at the first day of the new

period, such that the actual exchange rate difference is posted correctly when the next instalment is rendered by the

customer.

Please note that regarding payments by instalments in SAP Business One 2005 A SP 01 the system behaviour was the

same as in version 2007, but due to the duality of the separate reconciliation engine, no exchange rates differences

posting took place when partial payments were rendered. In this scenario the ‘Exchange Rate Differences’ must be

executed to calculate the exchange rate difference for this invoice. This posting, of course, should not be reversed.

More information about Exchange Rate & Conversion Differences can be found in the following Expert Empowerment

Sessions:

1. Exchange Rate Differences (Exchange Rate Differences/Conversion Differences in 2004A/2005A & 2005A SP01 – SAP Note 941059).

2. Exchange Rate (Exchange Rates when copying base to target documents in SAP Business One 2005 SP01). 3. Tips & Tricks for Year End Closing. 4. FC & SC are the same – why don’t they match? (System Currency & Foreign Currency are the same – why

don’t they match?).

Index

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What is the date used by MRP to calculate the requirements?

Document: How to Configure and Use MRP -

In a Sales or Production Order the ‘Delivery Date’ or ‘Document Date’ indicates the specific date at which the item

needs to be in the warehouse in order to deliver it or facilitate production of a parent item.

When calculating the recommendation date for ordering this item, the delivery date from these documents is the

date which is taken into consideration by the Material Resource Planning (MRP) calculation.

In the following example:

The current system date is 14 October 2008.

The item has a lead time of two days.

The delivery date in the Sales Order is the 18 October 2008 which is four days from today’s date.

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The MRP Wizard is run for 7 days from 14.10.2008 to 20.10.2008 and considers the holiday table for ‘Purchase Planning’.

MRP Results

The ‘MRP Results’ displays the ’Release Date’ of the 16 October 2008 for this item. This ‘Release Date’ indicates the

last date by which the ‘Purchase Order’ must be added in order to meet the ‘Delivery Date’ defined in the Sales

Order. The ‘Release Date’ is dependent on the lead time. Consequently, in this example the ‘Release Date’ is the

16.10.08 because our lead time is 2 days and the ‘Delivery Date’ is the 18.10.08.

The ‘Due Date’ displays the suggested ‘Due Date’ for the production orders or ‘Delivery Date’ for the purchase orders.

If the recommended order is past due, according to the items' lead time, the due date appears in red.

Index

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Where is the format of the bank statement to be imported, using the payment engine add-on, defined?

SAP Business One allows import of electronic bank statements using either the SAP add-on 'Payment Engine' which includes the

'Cash & Bank' functionality or the in version 2007 newly introduced Bank Statement Processing (BSP) functionality which utilises the

BTHF add-on.

This article deals solely with the settings when the payment engine add-on including cash & bank is used. It is not relevant for

companies that use BSP.

When initiating the payment engine add-on, plug-in files are installed. The standard path is C:\Program

Files\SAP\SAP Business One\AddOns\sap\Payment:

These plug-ins determine the format of the outgoing data files & also the format of a bank statement that is imported

into SAP Business One.

- The file formats for outgoing bank files are defined in the payment methods (Administration -> Setup -> Banking ->

Payment Methods).

- The file format for incoming bank files, the electronic bank statements is defined within a User-Defined Field (UDF)

in the Chart of Accounts (CoA) window.

The example below utilises a UK database with a standard CoA. The UDF can be made visible by clicking on ‘View’ in

the strip menu & selecting ‘User-defined Field’ or by pressing Ctrl+Shift+U while the CoA window is open & active.

The udfs must be populated with the appropriate data:

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The ‘Type Import File’ must be chosen from the list of available plug-ins:

SAP Business One now allows the import of bank statements in the ‘APACS’ format for GL account 161012 using the

payment engine add-on.

Index

Index

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How to print both BP catalogue and Item code?

Note: 1059015

It may be necessary to display both item code and Business Partners (BP) catalogue number as defined in either the

suppliers’ or the company’s product catalogue. When both are displayed it makes it easier for both the

supplier/customer and the company to instantly recognise the product they have purchased or sold.

The BP Catalogue Number can be displayed in the marketing document in two different ways:

1. When the document is open, go to Tools-> Form Settings -> Document tab -> General tab -> select ‘Display BP Catalogue Number’.

2. When defining the BP Catalogue Number (Stock Management -> Item Management –> BP Catalogue Numbers) on the BP tab the option ‘Use BP Catalogue Numbers in Documents’ can be selected for the specific BP. When selected here, the BP catalogue number will always be displayed for that BP.

However, in SAP Business One it is not possible to display both the ‘BP Catalogue Number’ and the ‘Item Code’ at the

same time in the marketing document and in its print out.

In order to display them both in the marketing document and its print-out, modification of the printing template and

the marketing document is required.

Scenario 1: BP Catalogue No. is required in the Print Layout Design (PLD) Template only.

The PLD template can be modified to call the ‘ItemCode’ from the ‘OITM’ table.

Process

In the template, create a database field in the repetitive area0.

In the ‘Table’ field select ‘OITM – Items’ (Items table). In the column field select ‘Item No.’ The system automatically makes the link between OITM and the table

row table XXX1.

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Note:

If the ’Item No.’ is called from the document table it will return the catalogue number due to the display of

the ‘BP Catalogue No.’ in the marketing document.

The column titles are text fields which can be amended according to the required naming convention.

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Result:

In the print-out both BP Catalogue Number and item code are displayed:

Scenario 2: BP Catalogue No. is required in both the marketing document and in the Print Layout Design (PLD)

Template.

If the BP Catalogue Number is required in the SAP Business One GUI form, e.g. Sales Order form, then the item code

can be called in a User Defined Field (UDF) using a Formatted Search (FMS).

Process

Create a UDF on row level of the marketing documents (2007 A Tools -> Customisation Tools -> User-Defined Fields-Management 2005 A Tools -> Use defined fields-> Manage user fields).

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Copy the following query to the Query Generator (2007 A Tools -> Query Generator; 2005 A: Reports -> Query Generator) and save it to the Query Manager using an appropriate name.

Select

$[$38.1.0]

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The FMS can be set to execute each time the BP catalogue field is updated.

The Item code is then visible in the Sales Order form.

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When this workaround is used, it is also possible to call the item code into the PLD template from the UDF.

To do this, in the repetitive area:

Create a Database field.

In the field ‘Table’ select the rows table. In this example we are selecting the Sales Order - Rows table (RDR1).

In the field ‘Column’ select the UDF.

Result:

Both the item code and the BP Catalog Number are displayed in the sales order and its print-out.

Note: If you have several formatted searches, user-defined fields &/or many rows in the document, the SAP Business One performance might be adversely affected.

Index

Index

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How to deal with reconciliation upgrade journals of the inconsistency type ‘Partial Exchange Rates

Differences Recognition’?

When upgrading to SAP Business One version 2007 the database undergoes, among others, an internal

reconciliation engine upgrade. There is a fundamental change in system behaviour in that the previously

independently acting reconciliation engines on the journal level & the marketing document level have now

been unified. Any legacy internal reconciliation inconsistency will be highlighted in a ‘Reconciliation

Upgrade’ (RU) journal entry where only the newly introduced ‘Balance Due’ column will be populated. A

multitude of commonly occurring scenarios have been extensively documented in the How-to-Guides,

which are available for download in several different languages.

For further information & links to training & background material on the Internal Reconciliation Upgrade

(IRU), please refer to the IRU Landing Page on the Service Market Place (SMP):

English: http://service.sap.com/~sapidb/011000358700000380562007E

German: http://service.sap.com/~sapidb/011000358700000380562007D

French: http://service.sap.com/~sapidb/011000358700000380562007F

Spanish: http://service.sap.com/~sapidb/011000358700000380562007S

Portuguese: http://service.sap.com/~sapidb/011000358700000380562007P

Chinese: http://service.sap.com/~sapidb/0110003587000003805620071

Japanese: http://service.sap.com/~sapidb/011000358700000380562007J

Korean: http://service.sap.com/~sapidb/0110003587000003805620073

Among the most common RU journals encountered is the inconsistency type ‘Partial Exchange Rates

Differences Recognition’. This inconsistency commonly occurs when a foreign currency (FC) document is

not completely reconciled, e.g. a FC accounts receivable (AR) invoice has been partially paid but there is an

exchange rate difference between the posting date of the invoice & the payment. In versions lower than

2007 exchange rate differences were not automatically posted when partial FC payments were rendered.

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Comparison:

System behaviour in SAP Business One 2005 A SP 01 & lower (UK Localisation, indirect exchange rate

posting)

Document FC

Amount

Exchange

Rate

LC

Amount

Document

Balance

Due FC

Document

Balance

Due LC

Document

Paid LC

Delta

between

‘Document

Paid LC’ &

‘LC

Amount’

Actual

exchange

rate

difference

posted

AP invoice 10000.00 2.1 4761.95 10000.00 4761.95 - - -

Partial

Payment

1

5000.00 2.5 2000.00 5000.00 2380.95 2380.95 380.95 0.00

Partial

Payment

2

5000.00 2.5 2000.00 0.00 0.00 2380.95 380.95 0.00

To realize the actual exchange rate difference of 761.90 (380.95+380.95), the user needs to execute the

‘Exchange Rates Differences’ functionality under the ‘Financials’ menu.

System behaviour in 2007 A:

Document FC

Amount

Exchange

Rate

LC

Amount

Document

Balance

Due FC

Document

Balance

Due LC

Document

Paid LC

Delta

between

‘Document

Paid LC’ &

‘LC

Amount’

Actual

exchange

rate

difference

posted

AP invoice 10000.00 2.1 4761.95 10000.00 4761.95 - - -

Partial

Payment

1

5000.00 2.5 2000.00 5000.00 2380.95 2380.95 380.95 380.95

Partial

Payment

2

5000.00 2.5 2000.00 0.00 0.00 2380.95 380.95 380.95

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There is no need to execute the ‘Exchange Rates Differences’ functionality in version 2007, the posting

takes place automatically when entering the payments.

When upgrading a database with transactions as described above, the reconciliation inconsistencies will be

highlighted in the ‘Internal Reconciliation Upgrade Audit Trail Report’, which can be executed using the

following path:

Administration -> Utilities -> Inconsistency Audit Trail Selection Criteria Screen

Using the example above & a UK localization database with a local currency of British Pound Sterling & a

foreign currency of Euro, the Audit Trail will show the following:

The internal reconciliation upgrade detected 2 inconsistencies for which 2 RU journals were created. Both

journals are related to partial exchange rate differences. These journals also appear in the Business Partner

(BP) account balance:

Both journals have a ‘Balance Due (LC)’ & need to be reconciled, adding up to GBP -761.90.

To adjust the ‘Balance Due (LC)’, the ‘Exchange Rate Differences’ should be executed & the journal created

given adequate descriptions in the ‘Ref.1’ & ‘Remarks’ fields:

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Since the transaction is completed, there is no need to reverse this journal. The RU journals can now be

reconciled with the exchange rate differences journals using the ‘Internal Reconciliation’ functionality

under Business Partners -> Internal Reconciliations -> Reconciliation:

Note: The reconciliation currency for this BP is ‘Euro’ & there is nothing to reconcile in this currency. Hence,

the ‘Amount to Reconcile’ will remain zero.

Therefore, the check box ‘Display LC-Only’ must be ticked. Then the RU journals & the exchange rates

differences posting will be made available for selection.

Once reconciled, the journals have no longer a balance due:

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This example had very clear cut values. In a customer database the situation may be more complex &

require a more thorough investigation. This should be done with the company accountant who will have

the ultimate responsibility in deciding what transaction a RU journal should be reconciled with.

Index

Page 35 of 46

How to identify items which have no item cost?

Stock sold by a company needs an item cost and consequently needs to be purchased or produced before being sold.

This classic schema enables the valuation of stock according to the items cost.

In SAP Business One once the items are created their stock can be updated via a Goods Receipt PO or an AP Invoice

not based on Goods Receipt PO, a Goods Receipt from inventory or a stock take or stock posting. If any of these

documents are posted without an item price, the stock of this item will be created without a cost price.

The release of stock without a cost price is determined by the option ‘Allow Stock Release without Item Cost’

(Administration -> Company Details -> Basic Initialisation tab).

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When this option is not selected the system will prevent the release of items which have no item cost and will display

an error message similar to this one:

The document involved is an AR invoice & the offending item is found in row 1 & has the item code ‘NL’.

When this option is selected, it is possible to add documents where an item has no cost price. However, this may lead

to inconsistencies in the valuation of the stock and the balance of the stock account.

For more information regarding the usage of this check box ‘Allow Stock Release without Item Cost’ please refer to

SAP notes 729330 and 877536.

As a result, it is important to identify these items and assign an item cost in order to avoid this error message and

inconsistencies in the database.

The following query will enable to find out the items without cost price. It can be saved to the Query Manager and

executed when required.

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/* The first query calls the item from OITM where they are not managed by warehouse as there will be one cost price

for all warehouses. It also checks that there is stock for this item*/

SELECT

distinct T0.[ItemCode],

T0.[DfltWH], /*Default warehouse*/

T0.[AvgPrice], /*cost price*/

T0.[OnHand] /*Quantity in Stock*/

FROM

OITM T0

WHERE

(T0.[AvgPrice]is Null or T0.[AvgPrice] = '0' and /*select all items without a cost price*/

T0.[OnHand]>=0 and /* Select all the items with a stock greater than 0*/

T0.ByWH ='N' and/*Select all the items which are not managed by warehouse*/

T0.EvalSystem <>'F'

Union ALL/*join the two queries refer to MSSQL online help*/

/* When the item is managed by warehouse, each warehouse has it's own cost price. The second query will call all

those items managed by warehouse and check the stock of those items*/

SELECT

distinct T0.[ItemCode],

T0.[WhsCode], /*Will specify the exact warehouse where there is no item cost*/

T0.[AvgPrice],/* cost price*/

T0.[OnHand] /*Quantity in Stock*/

FROM

OITW T0 inner Join

OITM T1 on /*The information regarding the management of the item by warehouse is only available on

OITM. The two tables need to be joined.*/

T0.ItemCode=T1.ItemCode

WHERE

(T0.[AvgPrice]is Null or T0.[AvgPrice] = '0') and /*select all items without a cost price*/

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T0.[OnHand]>=0 and /* Select all the items with a stock greater or equal to 0*/

T1.ByWH = 'y' and /*Select all the items which are managed by warehouse*/

T1.EvalSystem <> 'F'

Union ALL

/* This query will help to find the item valuated by FIFO. The FIFO cost prices are not stored in OITM or OITW.*/

SELECT

distinct T0.[ItemCode],

T0.Warehouse, /*Will specify the exact warehouse where there is no item cost*/

T0.calcprice,/* cost price*/

T1.[OnHand] /*Quantity in Stock- this is not the quantity per layer. OINM will need to be queried to find

the amount of layers and the quantity per layer*/

FROM

OINM T0 inner Join

OITM T1 on /*The information regarding the valuation method is available on OITM. The two tables need to

be joined.*/

T0.ItemCode=T1.ItemCode

inner Join

OITW T2 on

T0.Warehouse = T2.WhsCode and

T0.ItemCode=T2.itemCode and

T1.itemCode= T2.Itemcode

WHERE

(T0.CalcPrice is Null or T0.CalcPrice = '0') and /*select all items without a cost price*/

T1.[OnHand]>=0 and /* Select all the items with a stock greater or equal to 0*/

T1.EvalSystem = 'F' /* will only call the items valuated by FIFO*/

To identify which layers and which documents are affected for the FIFO items the following query can be used.

SELECT

Transnum, /* identify the transaction*/

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Transtype, /* Identify the document type eg Goods Receipt PO*/

createdby,/* Journal Entry reference*/

Base_ref, /* Document Number*/

Itemcode,

Inqty,

OutQty,

price,

Calcprice,/* Cost price*/

openQty

FROM

OINM

WHERE

itemcode in ('XX', 'XXX') and /* List of affected FIFO items*/

inqty <> openQty and

(CalcPrice is Null or CalcPrice = '0')

If the query returns results:

In version 2007 A the items with a standard, moving average or FIFO valuation method can be revaluated using the

stock revaluation under Stock Management -> Stock transaction . The Accountant should decide the new cost prices.

In version 2005 A SP1 only the item with a valuation method other than FIFO can be revaluated using ‘Stock

Revaluation’ (Stock Management -> Stock transactions -> Stock Revaluation).

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Alternatively, the items can be issued from stock to rectify the item cost. This can be done using a ‘Goods Issue’

(Stock Management -> Stock Transactions –> Goods Issue) or a negative stock posting. According to the amount of

items it could be done manually or using DTW. (Please refer to the Newsletter article ‘How can I determine which

fields are mandatory in a Data Transfer (DTW) template’ in order to know how to fill the templates.) This process can

also be followed when working with FIFO revaluation in 2005 A SP01. However, care should be taken when creating

the Goods Receipt to ensure that the items enter stock in the correct order ensuring the integrity of the FIFO layers.

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In order to enable the user to issue the stock the flag ‘Allow Stock Release without Item Cost’ under Administration ->

System Initialisation -> Company details -> basic Init. Tab, should be checked during the processing of these

transactions. Please refer to notes 729330 and 877536 for more information on this functionality,

If stock is returned to the warehouse, it can be returned using a goods receipt to inventory, initial quantity or Stock

Posting with an appropriate cost. There again it is possible to use DTW to import the different Goods Receipts or the

stock taking.

If the items are managed by the FIFO valuation method the accountant of the company must decide whether the

item cost of each item should be returned to the system with one layer or multiple layers.

Index

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What are the ‘Transaction Type’ numbers?

Note: 902807

SDK Help File

Transaction types (also known as object types) are used in SAP Business One database tables in order to identify

specific transactions. Each transaction type has its own identification number, for example an AR Invoice is

transaction type 13.

An example of where the transaction types are used is in the OINM table (stock movement table). When querying the

OINM table, the documents triggering a stock movement can be identified by their transaction type. In the following

screenshot the OINM table is queried for the item code ‘HM’. When analyzing the ‘Transaction Type’ field, it is

possible to see the first issuance of stock for the item ‘HM’ was with ‘Transaction Type’ 13, which is an AR Invoice.

The transaction types for the different object types or transaction types in SAP Business One are available in the SDK

Help files at the following path.:

Developers Guide -> DI API -> Reference -> DI API ->Overview-> Enumerations -> BoObjectTypes Enumeration.

As can be seen in the following screenshot when the option ‘BoObjectType Enumeration’ is selected, the list of

transaction type values and their associated document/transaction names will appear on the right hand side of the

screen. Each document/transaction name is displayed in the ‘Member’ column and its associated ‘Transaction Type’

number is displayed in the column ‘Value’ :

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Index

Index

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Why does SAP Business One display a system message alerting the user that a cash account is required when

making a payment?

SAP Note 1252247

When attempting to add a payment, the following system message is received:

Receiving monies from customers & making payments to vendors affects a company’s cash flow. SAP Business One

facilitates up-to-date reporting on the cash flow:

Financials -> Financial Reports -> Cash Flow

The accounts shown in the matrix on the right are all marked as ‘Cash Account’ within the account details of the

Chart of Accounts (CoA):

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Any posting to such marked accounts hence affects the cash flow report.

When manually posting a payment as bank transfer, SAP Business One logic dictates that the money has already

changed hands & has been transferred from one account to the other. As soon as money is deposited or withdrawn

from the company’s bank account, this should affect the cash flow. Therefore, if the GL account specified in the field

‘G/L Account’ is not marked as a cash account, the system message is triggered. Similarly, if the payment means is

‘Cash’ & the GL account used is not a cash account, the message will appear.

As far as incoming payments are concerned , credit card & cheque payments are not expected to affect the cash flow

since both are simply vouchers for a future payment by/to the bank &/or the credit card company. Hence the system

message will not be triggered if the GL account in these 2 payment methods is not a cash account.

In outgoing payments, however, SAP Business One will also look for a cash account when issuing a cheque.

A related system message is received when using a cash account for an incoming payment by cheque or credit card:

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Again, technically a received cheque or credit card payment is not cash & should hence not affect the cash flow

report. The application will allow the user to proceed, though.

Index