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Purchasing Documents and Accounts Payable

Purchasing is the process of making sure that a steady stream of required materials is on the way to a
company when and where you need them. SAP Business One helps run the purchasing process, starting
with the purchase order and continuing with the rest of the purchasing documents. SAP Business One
automatically captures information at each step so we always know what’s on hand in inventory as well as
the up-to-the minute financial state of your business.
Definition Of Terms







Purchase quotation is an offer or proposal containing a price commitment for specific goods or
services that you would provide to a vendor.
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.
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.
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.
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.
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.
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.
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.

Parts of a Purchasing Document
1. Header fields appear in every window of a purchasing document. You enter vendor data and
delivery dates here.
2. Footer fields appear in every window of a purchasing document and contain the calculated totals
for the purchase, including freight costs and tax.
3. Contents tab is where all the specific information about the ordered items or services is entered,
such as quantity, price, item number, and description.
4. Logistics tab contains the details about where the items or services as well as payments are to be
sent.
5. Accounting tab contains the relevant general ledger (G/L) account information for the purchase
pulled from the financial accounting master data.

To Insert Text or a Subtotal of the Preceding Row in the Content Tab  Click on the Content Tab Field  Then click on the Form Settings Icon on Navigation Bar.  Click on Payment Run tab.  A List of Business Partners appears in a pop-up window. click New button to open Item Master Data window.To Create a Purchase Order  Click the Purchase Order in Purchasing in the Module Menu. You can view items and quantities on order in various reports and windows. To Enter or Update Payment Method  Click on orange arrow next to vendor field. such as the inventory status report and the Item Master Data window.  To enter a new item.  Check the Include Box next to desired payment method.  Or by clicking Copy To button on the Purchase Order then choose Goods Receipt PO. then click Choose.  Select Table Format Tab. To Choose What to Purchase  On the Content Tab.  Select desired vendor. Inventory Impact of a Purchase Order The order quantities are listed in inventory management. Click the Item/ Service Type drop down list to choose what to purchase. To Locate Existing Vendor Information  Click on the button to the right of the Vendor field in the document header or press the Tab key in the Vendor field. To Create a Goods Receipt PO  Select the document name in the module menu. .  Select desired items.  Or by clicking Copy To button on the Goods Receipt PO then choose Goods Return. To Create a Goods Return Document  Select the document name in the module menu. To Add New Vendor Information  Click on the New button on the bottom of the List of Business Partners pop-up window. then click Choose.  It will open a Business Partner Master Data window.  Click on the drop-down list in the Type field and select T (for text) or Σ (for subtotal). To Locate the List of Items  Press Tab key in the Item No. field to open List of Items window. check both visible and active next to the Type Field.

To Create a A/P Reserve Invoice  Select the document name in the module menu.  Or by clicking Copy To button on the Purchase Order or Goods Receipt PO then choose A/P Invoice.  Select Draw Document Wizard from Module Menu. 3 Part-Process of Ordering. Receiving.  Click Add to post it to A/P Credit Memo.  Choose Customize then Next. and Paying for Goods or Services . To Create a A/P Credit Memo  Open Blank Credit Memo  Choose Vendor  Select Copy Form then click A/P Invoices  Select A/P Invoice and click Choose.To Enable Automatic Updates for the Landed Cost  Go to Administration  Click Setup  In the Purchasing. To Create a A/P Invoice  Select the document name in the module menu. Click Landed Cost to define the landed cost’s allocation account  Go back to the Setup then click Inventory  Select Customs Group to define the customs allocation and expense accounts.  Or by clicking Copy To button on the Purchase Order then choose A/P Reserve Invoice.  Or by using Draw Document Wizard to select the data to copy from one or more existing POs or goods receipt PO’s.  Select items you wish to reverse and click Finish.

Getting Started  Vendors 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. which allows payment to be issued once an invoice is posted  If you return goods after an A/P invoice is posted. 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. 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 an A/P credit memo Purchasing Purchasing Accounting impact Inventory impact . use the goods return document  If you must account for additional import-related purchasing costs.

debits inventory account and credits business partner’s A/P control account Debits business partner’s A/P control account and credits inventory account Allows viewing of ordered quantities in various reports and windows. debits accruedpayable/ allocation account and credits business partner’s A/P control account If the A/P invoice is not based on a goods receipt PO. such as inventory status report and Item Master Data window Allows viewing of ordered quantities Increases inventory quantities Reduces inventory quantities Updates last purchase price of imported item(s)—containing all costs that were allocated—in price lists 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) Reduces inventory quantities only if not based on goods return .document Purchase order A/P reserve invoice Goods receipt PO Goods return Landed costs A/P invoice A/P credit memo No posting of value-based changes Debits accrued payable/allocation account and credits business partner’s A/P control account Debits inventory account and credits accrued payable/allocation account Debits accrued payable/allocation account and credits inventory account Debits inventory account and credits landed-costs and customs account If the A/P invoice is based on a goods receipt PO.

FReport In CompSys1 About SAP Business One (Purchasing A/P) .

2015 Ma’am Cruz .Javier. Joy Angelique P. BSA 2nd Year May 19.