You are on page 1of 5

SAP Business One for Engineering

A Collaborative ERP for your Organisation

SAP Business One is now fully equipped and geared-up to serve specific needs of Indian
Engineering Industry.

A separate vertical has been developed
within SAP Business One for Engineering
Organisations with Best Business
Practices of the industry. Some of our
valued customers from this industry have
already identified SAP Business One as a Value
Addition Tool for their entire business
activities including Production Planning and
Execution, Quality Control, Supply Chain
Management, Sales & Marketing, Export
Documentation etc.

The business process in an Engineering
organization is challenged by multifaceted
functionalities. These challenges are tackled in SAP Business One very efficiently. The
specific functionalities, which are supported by this role-based, modular system, are:

Sales Management: Sales Enquiry Tracking, Sales Offer to Order,
Sales Forecast based on historical data etc.

Production Planning: Based on Sales Order/ Forecast - Material
Requirement Planning, Operation wise Daily
Production Planning

Purchase Management: Material Indent - Enquiry - Purchase Order
Including Sub-Contracting Purchase Order

Quality Management: Quality Control - Incoming Material, In Process
Material and Final Product

Production Management:Operation wise Production Reporting,
Rejection reporting on each stage of production

Material Management: Multi Location wise and Multi Warehouse wise
Inventory Management (Raw material / Packing
material, Stores & Consumables, Semi finished
material & Finished Material).

Designed & Prepared by KSE Enterprise Solutions Pvt. Ltd. Document Management Group Page 1

SAP Business One for Engineering

Minimum Stock Management, Re-Order Quantity
Management, Stock Ageing, Stock Valuation, Stock
Revaluation, Landed Cost Calculation and Cycle
Counting of Inventory

Costing: Raw Material Costing, Semi Finished Material &
Operation Costing, Finish Goods Material &
Operation Costing

Taxes and Duties: Excise Duty, CENVAT, VAT, Sales tax, Service
Tax, Income Tax at par with the Indian rules

Financial Management: General Ledger, Accounts Payable, Accounts
Receivable, Multi Currency, Budgetary control
and many more.

Export Documentation Detail Export documentation

Reports & Alerts Number of standard reports in each module.
Crystal Report is an integral part of SAP Business
One, any customized report can be developed with
Crystal report
Standard and customized alerts on exceptional
transactions can be generated in the system.

For efficient running of an Engineering organisation, a
good knowledge base on Production planning, Shop floor
control, Product costing, Cost allocation and tracking,
Scrap handling, Ongoing relation with customers,
suppliers, transporters etc integrated with Financials
and other management modules is essential.

These were handled as:
1. Marketing Management: The critical problem faced by a Marketing executive is to
predict a delivery date to customers due to non-availability of correct stock status or
resource loading. The Production executive is also not aware of the exact order booking
position or sales target to plan the production due to the lack of
integration between the Sales and Production Plan. At any point of
t ime SAP Business One provides warehouse wise/material wise
inventory balance, quantity available to promise, production plan,
production at shop floor which is relevant to marketing people. SAP Business One
also provides the order status at any point of time. SAP Business One also provides the

Designed & Prepared by KSE Enterprise Solutions Pvt. Ltd. Document Management Group Page 2

SAP Business One for Engineering

tools that allow manufacturers to capture Product, Service and business knowledge
increasing overall productivity. This increases sales effectiveness and profitability
m aking it easier and less costly.
2. Production Planning: From Sales order and Sales forecast, Production for a
period is planned normally on a thumb rule basis where the material requirement is not
exactly available; as a result the planned production is seldom achieved. SAP Business
One provides effective solutions to optimize the production plan through:
Bill of Material (BOM) of all manufactured material (Finish goods and semi
finished goods).
Material requirement planning(MRP) considers availability of input materials,
Components, Semi finished goods and Finished Goods
MRP will also consider pending purchase order and pending production order/s
MRP will suggest Manufacturing order/s for manufactured type items and
Purchase order/s for purchase type items
Based on MRP recommendation, production order may be created from the
system or can be created manually
The production order will be scheduled day wise and operation wise based on
availability of resources and manpower
Subcontracting may be done from any stage of production
Purchase order/s may be generated from MRP recommendation or can be
created through manual indent

3. Purchase Management: Raw material procurement plan has a very important role
to make production plan successful. For any procurement, the selection of right
supplier, procurement at right time for right quantity in right price is the most important
factor. SAP Business One handles all these areas effectively using following tools:

Material requirement planning
Purchase Indent,
Tendering Procedure
Purchase Order
Subcontracting Order

4. Quality Management: Stringent quality control with proper documentation is the
most essential part of Engineering Industry. Raw material as well as Semi-Finished/
Finished items at different stage of production will go through following quality
Incoming raw material quality control

Designed & Prepared by KSE Enterprise Solutions Pvt. Ltd. Document Management Group Page 3

SAP Business One for Engineering

Operation wise quality reporting
Finish product quality reporting

5. Production Reporting: Effective production reporting system specifically developed
for Engineering Industry has the following features:
Department wise, operation wise, employee wise,
item wise production report
Day wise, shift wise production reporting along with
rejection reporting with reason of rejection
Scrap reporting
Subcontracting job issue and receipt reporting
Rejection analysis

6. Material Management: This gives a pain to the material managers as most of the
time the physical stock of the materials are not matched with the BIN balance and the
right materials are not available in required quantity at right time in right place. Also
sometime bulk quantities of material are kept unused for a long time resulting in
unnecessary increase of inventory. So, proper material management plays a key role
with the other modules. SAP Business One provides following functionalities for
effective inventory management:
Initial stock update
Recording of stock movement with cost of each
Batch control or serial number control of stock
Stock adjustment/Physical verification of stock
Revaluation of Stock
ABC analysis of stock
Slow/Fast/Non-moving analysis of stock

7. Export & MIS Reports
Export Register
Monthly Export Return
Forward Exchange Booking
Monthly Declaration of Shipment
Calculation Sheet for Rebate Claim
Bank Certificate for Export and Realization
Customs Invoice
Customer Order wise Production Status Report
Material costing report
Material wise profitability analysis
Material wise , customer wise sales analysis
Material wise , supplier wise purchase analysis
Date wise material consumption report

Designed & Prepared by KSE Enterprise Solutions Pvt. Ltd. Document Management Group Page 4

SAP Business One for Engineering

Rejection Analysis Report
Production Yield Report and many more ..

Designed & Prepared by KSE Enterprise Solutions Pvt. Ltd. Document Management Group Page 5