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THE 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

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.

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).

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.

INCOMING PAYMENTS

Incoming payments are the last step in the sales process, even though they are a function in
banking.

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