sap purchasing manual - technolux sap portaltlxportal.technolux.net/manual/purchasing.pdfprepared...

Prepared by: MIS Department

GUIDE TO

PURCHASING [Accounts Payable]


Overview of Purchasing - A/P Process

The basic three-part process of ordering, receiving, and paying for goods or

services. The flowchart in Figure 1 presents the "big picture" of how SAP Business

One purchasing documents relate to each other, including all of the optional steps, which are discussed in the next section.

Figure 1: Purchasing document flow in SAP Business One

Definitions

The term item is used in a very specific way in SAP Business One. It refers only to goods and materials bought, produced, sold, and warehoused.

The purchase order (PO) is the document you provide to the vendor specifying

the items or services you want to purchase, including agreed-to quantities and prices.

The A/P reserve invoice is similar to a PO but it includes a request for

payment. It is used when the vendor requires prepayment before delivering an item or service.

The goods receipt PO is the document that denotes the delivery of goods from a

vendor to a company. It is used to update the inventory quantities and values.

The goods return document is used to reverse a goods receipt PO after it has

been posted. It is used whenever part or all of the goods received are returned to

the vendor.

The landed costs document is used when additional costs are involved in the purchase of items, usually from abroad, such as tariffs, brokers' fees, and so on.

The A/P invoice (or A/P voucher) is the document into which accounts payable

enters the vendor's invoice information and sets up the payment.


An A/P credit memo (or A/P debit) is used to reverse the A/P invoice, partially

or in its entirety after it has been posted. It credits the company for the goods

returned to the vendor.

Getting Started – Common Structure and Key Data

All of the purchasing documents in SAP Business One share a similar structure

and use much of the same data. Before diving into the documents, here's an explanation of what is the same about each document.

Common Document Structure

Each purchasing document in SAP Business One has nearly identical header and

footer fields and three tabs for Contents, Logistics, and Accounting. This structure

helps to ensure that all relevant data is captured as the A/P process initiated by a

PO gathers steam.

Header fields appear in every window of a purchasing document. You enter

vendor data and delivery dates here, if SAP Business One does not fill it in automatically as part of the process flow.

Footer fields appear in every window of a purchasing document and contain the calculated totals for the purchase, including freight costs and tax.

The Contents tab is where all the specific information about the ordered items or

services is entered, such as quantity, price, item number, and description.

The Logistics tab contains the details about where the items or services as well as

payments are to be sent. Shipping method is also specified here. Most of the data is pulled from preconfigured master company details and vendor data.

The Accounting tab contains the relevant general ledger (G/L) account information for the purchase pulled from the financial accounting master data.

Figure 2: Anatomy of a purchasing document in SAP Business One


PURCHASE ORDER

Creating a PO is the first and most basic task in any purchasing application. In a

nutshell, a PO is a commercial document issued by a buyer to a seller specifying

the items (goods or materials) or services – along with agreed-to quantities and

price – that the seller will provide the buyer.

PROCEDURE:

1. On your SAP Business One, go to Main Menu�Purchasing � A/P �

Purchase Order.

2. After clicking the Purchase Order, a new entry window for PO will appear.

Fill-out the following data needed for the header field of PO:

a. Vendor – Supplier of the goods being purchase. It maybe local,

foreign or affiliates

b. Name – Once the Vendor code was provided, the name field was

automatically filled up.

c. Contact Person – Contact person defined in the Business Partner

Master Data

d. PR No. – Vendors reference number.

e. BP Currency – Select from the selection depending on the vendor

type.

f. Posting Date – PO creation date. It can be change as desired.

g. Delivery Date – Date on which you want to received the PO

h. Document Date – Current date or PO creation date. It can be

change as desired.


Figure 3: Header Fields of Purchase Order

3. Purchase Order can be encoded in two ways:

3.1. By Item Type.

Just fill up the following information’s:

a. Item No – Type the item no or search it by positioning your cursor

under the Item No and by pressing the <TAB> key. Select from the

list.

b. Quantity – Type the quantity of the items you want to place an

order.

c. Unit Price – Price of the items to be purchased. Either in Peso or in

dollar amount

d. Tax Code – Default tax code of the vendor that links into the

Business Partner Master Data

e. Warehouse – Location of the warehouse where the Purchase Order

has been allotted. This can be edited or can be change as desired

because it follows the default warehouse of the item coming from

the item master data.

f. Item Details – Other remarks that describes the items.

Figure 4: Detail Fields of Purchase Order

Fill the contents tab, check also the

logistics and

accounting tab.


3.2. By Service Type.

This is to be use when one time consultation service has been rendered

by the vendor. Fill up the following data needed:

a. Description – Description of the serviced being rendered.

b. G/L Account – Select the appropriate account name by pressing the

<TAB> key.

c. Tax Code – Default tax code of the vendor.

d. Total (LC) - Total landed cost

4. Fill up also the following information’s:

a. Sales Engr./Sales Emp. – Leave this as blank

b. Prepared by – The person who prepared the PO

c. Remarks – Additional notations regarding the PO

d. User-defined fields – fill up the necessary fields

5. Click the Add command button to save the transaction.

Note: When a PO is added in SAP Business One, no value-based accounting

changes occur. However, the order quantities are listed in inventory

management. You can view items and quantities on order in various reports and windows, such as the inventory status report and the Item Master Data window.

Click the drop

down arrow to select service.


GOODS RECEIPT PO (RR)

In SAP Business One, a goods receipt PO is created when you receive goods from

a vendor. In most companies, the person in the warehouse or in the office is

responsible for taking delivery of shipments executes the goods receipt PO. For

services, the person for whom the services are rendered usually issues the

document.

There two ways of creating Goods Receipt PO.

A. BASIC WAY

1. Go to Main Menu� Purchasing-A/P � Goods Receipt PO.

2. Supply data to the header field like customer, posting date, currency, etc.

3. Start encoding the items to be RR. Supply the correct information to each

field.

4. Supply also the following information in the footer field:

Sales Engr./Area Super = Sales Engineer/ Area Supervisor

Prepared by = The one who prepared the RR

Discount = For special cases only

Remarks = Other notations if any

Invoice Group = Choose from the List

5. Click ADD to save/post transaction.

6. Print Goods Receipt PO (RR).

Provide details on item/s received.

Provide data on

footer field (step 4).


B. CREATING GRPO FROM PO

1. Select the PO that you want to create an RR. From PO entry, click the

“Copy To” button as shown in the figure below.

2. SAP will then automatically create the GRPO entry for the said PO.

3. Supply/modify necessary information as per documents.

4. Click Add command button to save the transaction.

Note: It is essential that the quantities and prices in your goods receipt PO match

the vendor's shipping document. Unlike a PO, a goods receipt PO cannot be

amended after it has been added to SAP Business One because it triggers both

inventory and accounting transactions.


A/P INVOICE

The A/P invoice is the purchasing document in SAP Business One that "vouches"

for the invoice that the vendor sends for items or services ordered and received.

The accounts payable clerk usually creates the A/P invoice that is required to

request payment for the vendor. The A/P invoice results in a journal transaction

that reflects an increase in the company's liability to the vendor and updates the

tax account and relevant expense account(s).

1. From PO or GRPO entry, click the “Copy To” button as shown in the figure

below.

2. SAP will then automatically create the AP entry for the said PO. Check the

details in Contents, Logistics, and Accounting Tab.

Click copy to

then select A/P Invoice.


3. Supply/modify necessary information as per documents.

4. Click Add command button to save the transaction.

Note:

Once posted to SAP Business One, an A/P invoice cannot be changed, as it is the

legal accounting document that generates entries in the general ledger. The

posted A/P invoice also updates the related vendor accounts in accounting. A/P

invoice can only be cancelled using A/P Credit Memos (please refer to A/P CM procedure).

In those cases where a vendor's invoice arrives before the items are received and

are for items whose purchase ordering is managed in the warehouse, the

resulting A/P invoice also increases inventory quantities and values


GOODS RETURNS

Of course, there are always those occasions when items received are found to be

defective or otherwise not acceptable and must be returned to the vendor. Since

you can't change or cancel a goods receipt PO, you can create a goods return

document. This purchasing documents reverses in part or completely the quantity

and value-based changes made by the goods receipt PO that was created when

the items were received.

PROCEDURE:

1. On Main Menu go to PURCHASING- A/P � Goods Receipt PO then click

FIND button on your task bar to open GRPO find window.

2. Type the RR or SAP number of the GRPO to be returned then press

<Enter> key.

3. Click on the Copy to then select “G. Return.” A Return window will be

prompted on your screen.

4. Supply the necessary information needed. (Note: Posting Dates will be

based from the Accounting Department)

Click copy to then select G.Return.


5. Double check Warehouse and G/L Account code including the Invoice

Group.

6. On the Remarks field, indicate the reason why the item/s is/are to be

returned.

7. Click ADD to save the transaction.

8. Print Return Transaction.


LANDED COSTS

From time to time you may need to account for costs incurred when importing

items from abroad, such as customs, broker, and insurance fees. For this

purpose, in SAP Business One you can create a landed costs document that is

used to update the cost of the imported items and is required for calculating

inventory valuation, gross profit, or any other inventory-related calculation. It is

mandatory that this purchasing document be based on a goods receipt PO. Since

SAP Business One uses the goods receipt PO as the base reference for the entire

import process, be sure to enter the item prices and quantities correctly at the

time you create the goods receipt PO. After you post the landed costs document,

the price of the imported items is updated. And since it also contains all the costs

that were allocated, the landed costs document creates a journal entry to reflect

the additional import costs in accounting.

PROCEDURE:

1. Open Goods receipt PO using the SAP Business One Main Menu �

Purchasing-A/P � Goods Receipt PO.

2. Select the RR No of the items you want to create a Landed Cost. Right

click on the vendor’s name then select Copy.

3. From the Main Menu go to Purchasing-A/P � Landed Costs then paste

the vendor’s name that you have just copied from the Goods Receipt PO.

4. Go to Goods Receipt PO button found at the lower right corner of the

window then choose from the selection list prompted on your screen the

RR No you want to create a Landed Costs.


5. From the Cost Tab page, supply the information needed for the given data.

5. After you have finished encoding the data needed on the Cost Tab, go

back to Item Tab page. Notice that what have you encoded in the Cost tab

page, it is reflected into the Item Tab Page.

6. Click the Add command button to save the transaction. ( Note: Costing

should be in Peso Form)

Reminder:

• Landed Cost will only be closed once the Journal Entry has been

applied.

• There is no way to cancel landed cost when there is already a link to

journal entry. It is only safe to cancel landed cost if no journal entry

has been involved.


CLOSING THE LANDED COSTS ENTRY

7. After you have saved the Landed Costs, go to Journal Tab page then click

on Create Journal Entry

8. Supply the other chart of accounts for the corresponding APV entries you

have made.

9. Click Add to save the transaction.


PRINTING OF LANDED COST REPORTS

Procedure in printing Landed Cost using SAP Portal

1. In your internet browser type the following: 192.168.100.8 this is the ip

address for our SAP Portal or type sap-portal.

2. You will be prompted to login-in your username and password. Supply

your username and password according to your assigned account and click

“Login” to enter SAP Portal Main Menu.

3. Under the Purchasing- A/P, select Landed Cost. The page for Landed Cost

will appear.


4. Select the BP Vendor’s name of the supplier you have just created on the

Landed Cost or enter its corresponding landed cost number in SAP then

click on Refresh to view list of landed cost according to preference in

status and in date range.

5. Notice that upon pressing the Refresh button, all the transaction under the

BP name that you have selected will be posted on your screen.

6. Select the landed cost that you want to print to open landed cost form.


7. Click on the Print Voucher button located at the left side – corner button of

the form to preview the landed cost before printing.

8. To print, click on the printer symbol sign.


A/P CREDIT MEMOS

You use the A/P credit memo in SAP Business One to reverse in part or entirely

the inventory or accounting transactions posted by an A/P invoice in the case you

return items later or realize you have made mistakes while entering data in

previous related purchasing documents that have not been corrected.

PROCEDURE:

1. From the Main Menu � Purchasing – A/P � A/P Invoice. In the A/P

invoice window, go to Copy to button then select A/P Credit Memos.

2. Check the necessary information. You could change the Posting Date, due

date and Document dates if needed and as per advice by the Accounting

Department. You can also change the quantity or remove particular items

that are to be cancelled.

3. On the remarks section, includes the reason for the CM.

4. Click ADD to post the document.


Note: You can create Credit Memos for Item Type or by Service Type

depending on what was encoded in the A/P Invoice.

A/P CM FOR SERVICE TYPE:

1. Open the A/P Invoice of service type. See sample below:

2. Click the Copy To button located at the right-lower corner of the window,

then select A/P Credit Memos. SAP will then automatically create an A/P

Credit Memos entry for the said invoice.

3. Check on the details and put remarks on why the invoice should be

cancelled.

4. Click Add to post/save the transaction.


A/P DOWN PAYMENT REQUEST

An A/P down payment request is a request by your vendor that a down payment

be made at a certain time. This document does not generate any accounting or

inventory posting, so if you create an A/P down payment request based on a

purchase order or a goods receipt PO, the base document is not closed. This

allows you to copy the same base document to a higher level purchasing document, such as an A/P invoice.

1. On the SAP Business One Main Menu, go to Purchasing – A/P � A/P

Down payment Request.

2. Copy the vendor’s code from the transaction you made in the Purchase

Order data entry then paste it into the A/P Down Payment Request

module. Another way to encode the vendor’s name is by clicking this icon

then search for the particular vendor’s name.

3. Click on the Copy From select “Purchase Orders” then from the List of

Purchase Orders window select the PO transaction you want to request for

payment then click on Choose command button.


4. A window wizard will prompt up, select the desired exchange rate then

click on Finish.

5. Click on the Payment Means icon located on your toolbar.


6. On the Payment Means window supply the information’s needed:

6.1. Check Payment

a. Due Date

b. Bank Name

c. Manual – Put a check on the box

d. Check Number – Type check no

e. Amount – Type the amount of payment being requested.

f. Click on the OK command button

6.2. Cash Payment

a. Select G/L Account name

b. Type the amount on the Total textbox

c. Click OK.

7. Double check if all the information’s being encoded are correct then click

ADD command button to save the transaction.


A/P Reserve Invoice

The A/P reserve invoice is similar to a PO but it also includes a request for

payment. It is used when the vendor is concerned about your creditworthiness and requires prepayment before delivering an item or service.

The A/P reserve invoice is a combination of a PO and a request for payment. It

can be created new or from an existing PO. Once posted, the document debits the

relevant accounts in the general ledger without affecting inventory quantities and values. The A/P reserve invoice cannot be used for services.

PROCEDURE:

1. On the SAP Business One Main Menu, go to Purchasing – A/P � A/P

Reserve Invoice. A new entry for A/P reserve invoice will appear.

2. Supply data in the header field like vendor, currency, and posting date. Also

provide items, unit price, and quantity to order in the detail tabs.


3. Click the payment button located in the toolbar menu to enter payment

for the said invoice. Select Payment option like cash, check, etch… then inter the amount to be paid. Then click ok to post the said payment.

4. After clicking the Add button, a system message will appear. Just click yes button to proceed in posting.

5. You will be prompted to input withholding tax.

6. If no, the invoice is now posted. If yes, enter withholding tax calculation.

Enter amount here.

Set currency, payment

option, and the G/L

Account for said payment.


PROCEDURES IN POSTING DOCUMENT DRAFT

UNDER PURCHASING – A/P

1. On the SAP Business One Main Menu go to Purchasing- A/P�

Document Draft.

2. Under the Document Drafts- Selection Criteria, just check the reports you

want to generate then click on OK.

3. The Document Draft list be prompted on your screen, choose the

document you want to open, You can sort the data either in ascending or

in descending structure by double clicking the Draft No or you can used

the other headers like Form No depending on your own preference.

4. Select the document you want to view then click OK or double click the

record that you have highlighted.

5. Post the Data then save the transaction.


PROCEDURES IN DELETING DOCUMENT DRAFT

UNDER PURCHASING – A/P

6. On the SAP Business One Main Menu go to Purchasing- A/P�Document

Draft.

7. Under the Document Drafts- Selection Criteria, just check the reports you

want to generate then click on OK.

8. The Document Draft list be prompted on your screen, choose the

document you want to delete. You can sort the data either in ascending or

in descending structure by double clicking the Draft No or you can used

the other headers like Form No depending on your own preference.

9. Choose the document you want to delete then right click on your mouse,

select Remove. Do the same for the other reports you want to delete.

10. After you have finished deleting the posted draft entries, click on Updates

so that it will permanently remove the entries on the Draft Document.


Accounting and Inventory Impact

Summarized in the following table are the most important inventory management

and accounting implications of the SAP Business One purchasing documents

Purchasing

Document Accounting impact Inventory impact

Purchase

order

No posting of value-based changes Allows viewing of ordered

quantities in various reports

and windows, such as

inventory status report and

Item Master Data window

A/P reserve

invoice

Debits accrued payable/allocation

account and credits business

partner's A/P control account

Allows viewing of ordered

quantities

Goods receipt

PO

Debits inventory account and credits

accrued payable/allocation account

Increases inventory

quantities

Goods return Debits accrued payable/allocation

account and credits inventory

account

Reduces inventory quantities

Landed costs Debits inventory account and credits

landed-costs expense account

Updates last purchase price

of imported item(s) –

containing all costs that were

allocated in price lists

A/P invoice If the A/P invoice is based on a

goods receipt PO, debits accrued-

payable/allocation account and

credits business partner's A/P control

account.

If the A/P invoice is not based on a

goods receipt PO, debits inventory

account and credits business

partner's A/P control account

Posts no changes in

inventory (A/P invoice with

reference to goods receipt

PO)

Posts inventory changes (A/P

invoice without reference to

goods receipt PO)

A/P credit

memo

Debits business partner's A/P control

account and credits inventory

account

Reduces inventory quantities

only if not based on goods

return


Purchasing Checklist

Getting Started

Vendor master data contains current vendors

Payment method is set

Item master data contains goods and/or services previously purchased

Step 1: Purchase order

Create a PO by selecting existing or entering new vendor and item data

Specify Delivery Date in document header

If vendor requires prepayment for goods or services, use an A/P reserve

invoice instead of a PO

Step 2: Goods receipt PO

You receive items or services from vendor

Document receipt of items or services using the goods receipt PO

If you need to return goods after creating the goods receipt PO but before the

A/P invoice has been posted, use the goods return document

If you must account for additional import-related purchasing costs, use the

landed-costs purchasing document based on a goods receipt PO

Step 3: A/P invoice

You receive an invoice from vendor

Enter invoice information into an A/P invoice, which allows payment to be

issued once an invoice is posted

If you return goods after an A/P invoice is posted, use an A/P credit memo

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