Chapter 12:

SALES PROCESS

The sales process in SAP Business One begins with Sales Order. The sales order affects the amount of stock
committed to a customer and, therefore, the available stock quantity.

The delivery reduces the stock committed and the in-stock quantities. The delivery affects the general ledger, if SAP
Business One manages the perpetual inventory. In this case, the delivery will reduce stock valuation and post a cost
of sale.

The A/R invoice is created. It is the only mandatory document in the sales process. It is possible to create an invoice
without first creating a delivery, a sales order, or a sales quotation. If the A/R invoice is created without reference
to the delivery, it will also reduce the quantity in stock.

It records the revenue and tax and updates the customers’ accounts with a new outstanding balance.

Incoming payments are the last step in the basic sales process, even though they are a function in Banking. Posting
an incoming payment receives the payment from the customer.

Additionally, it is possible to credit a customer for damaged goods. The returns document is be used to credit the
customer if the goods were delivered but no A/R invoice was issued. Use the A/R credit memo to credit a customer
after an A/R invoice was already issued. For legal reasons, you cannot change or delete deliveries and A/R invoices
that have been already entered in SAP Business One. To correct these, use the clearing document, the returns.
SALES DOCUMENTS

1. SALES ORDER

The sales order is a commitment from a customer or lead to buy a product or service. The document serves as
a foundation for planning production or purchase orders. Creating sales orders does not post value-related
changes in the accounting system. However, if the sales order is created for items, the ordered quantities are
listed in Inventory Management as reserved for the customer. You can view the ordered quantities in various
reports, such as the Inventory Status report, as well as other windows in SAP Business One.

This information is important for: Optimizing ordering transactions and stockholding and ensuring that customer
requirements are dealt with quickly and satisfactorily.

HOW TO CREATE A SALES ORDER

1. Go to Purchasing A/R> Sales Order

2. Input the required information, use the selection list when available:

Vendor : C1100
Name : Hope Institute of Technology
Delivery Date: <Today's Date>
Item No. : A1000
Quantity : 10

3. Click Add to save the document and Ok to exit the window.

2. DELIVERY

The Delivery is a legally binding document indicating that the shipment of goods or the delivery of services has
occurred. Without this document, goods can be delivered only if an invoice has already been created.

When you create a delivery, the corresponding goods issue is also posted. The goods leave the warehouse and
the relevant stock changes are posted. When the stock is changed, the values in the accounting system change
as well (only when you use perpetual inventory). HOW TO LINK SALES ORDER TO DELIVERY USING
'COPY TO'

1. Go to Sales - A/R> Sales Order

2. Click on the last data record icon to retrieve the Sales Order that was created earlier.
3. Click on the 'Copy to' button in the lower right of the document. Choose Delivery.
4. The Delivery document will pop up. Input the quantity delivered if there is partial or over delivery.
5. Note that the base document reference is listed in the REMARKS field.
6. Click 'Add' button and 'Yes' when prompted that you can no longer change the document once added.
3. A/R INVOICE

The invoice is a legally binding document. When an invoice is received, the posting is made to the related
customer accounts in the accounting system. If a delivery did not precede the invoice and you sell the warehouse
items, stock quantities are also updated accordingly when you issue the invoice. If you create an invoice without
reference to the delivery, the system automatically posts changes to the stock. In other words, if a delivery
already exists for the transaction and you create an invoice without reference to this delivery, errors can occur
in inventory management because the delivery quantity is posted twice in the system.

HOW TO LINK DELIVERY TO A/R INVOICE USING 'COPY FROM'

1. Go to Sales A/R> A/R Invoice
2. Enter the following information:

Code: C1100
Customer: Hope Institute of Technology

3. Click on the 'Copy From' button in the lower right of the document. Choose Delivery.
4. Choose the Delivery Document you created, then click Finish.
5. Click 'Add' button and 'Yes' when prompted that you can no longer change the document once added.

4. INCOMING PAYMENTS

HOW TO RECORD COLLECTIONS - INCOMING PAYMENTS

1. Go to Banking> Incoming Payments> Incoming Payments

2. Choose 'C1100' in the Code field using the selection list.
3. Click the check box in the selected column to choose the A/R Invoice from the list.
4. Click on the money bag icon or right click your mouse and choose 'Payment means'.
5. Go to the CASH tab. In the TOTAL field, right click and choose '
6. Copy Balance Due' to copy the balance from the A/R Invoice. Click 'OK'.
7. Click 'Add' and click Add again when prompted with the system message.
PRACTICE YOUR SKILLS
Follow the standard steps in Procurement Process in Business One.
A. OEC Computers UK sold the following to its customer:

1. Create the Sales Order for the following from C20000 NORM THOMPSON:

Delivery Date <Today's Date>

Item Code Quantity
N1000 10
N2000 10
A00001 10
A00002 10

Take note of the PO # __________

2. Create the Quantity

Delivery for the
items ordered in
requirement # 1:
Item Code
N1000 10
N2000 10
A00001 10
A00002 10

Take note of the GRPO # __________

3. Create the Quantity
corresponding
A/R Invoice: Item
Code
N1000 10
N2000 10
A00001 10
A00002 10

Take note of the A/R Invoice # __________

4. Make an Discount Payment Method

Incoming
payment, details
are as follows:
Collection Mode
Partial Collection No Discount Cash 2,000 only