Accounting Information System

At the end of the lesson, the student will be able to:

• Enumerate the various documents used in

marketing, production and banking.
• Create documents used in daily operations.

Accounting Information System (AIS)

LESSON FIVE: REVENUE CYCLE: Sales Process Overview

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.

Accounting Information System (AIS)

LESSON FIVE: REVENUE CYCLE: Sales Process Overview

Accounting Information System (AIS)

 LEADS AND CUSTOMERS

Accounting Information System (AIS)

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.
ü Creating sales orders does not post value-related changes in the accounting system.
ü However, if the sales order is created for items, the ordered quantities are listed in Inventory
Management as reserved for the customer
ü 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.

Accounting Information System (AIS)

 HOW TO CREATE SALES ORDER:
1. Go to Modules Menu > Sales A/R > Sales
Order. Sales Order window will open.
2. Input the following information on the
Sales Order header:
Customer: C20000 (Norm Thompson)
Delivery Date: <date today>
3. Input the following information on the
Contents tab
Item/Service Type: Item
Item No: A00001
Quantity: 3
4. Add.
5. Click the Last Data Record button on the
Tool bar . Take note of the document
number.

Accounting Information System (AIS)

SALES DOCUMENTS

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).0

Accounting Information System (AIS)

 HOW TO CREATE A DELIVERY DOCUMENT:
1. From the Sales Order previously created,
click ‘Copy to’ on the lower right portion of
the window.
2. Choose Delivery.
3. The Delivery document will pop up. Input
the quantity delivered if there is partial
delivery.
4. Note that the base document reference is
listed in the ‘Remarks’ field.
5. Click ‘Add’ button. Click ‘Yes’ when
prompted that you can no longer change
the document once added.
6. Click Last Data Record.

Accounting Information System (AIS)

SALES DOCUMENTS

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.

Accounting Information System (AIS)

 HOW TO CREATE AN A/R INVOICE:
1. On the Delivery document, click ‘Copy to’
on the lower right portion of the window.
2. Choose A/R Invoice.
3. Contents of the Delivery document will
copied to the A/R Invoice. Click
Accounting tab on the A/R Invoice
window.
4. You can see here the Payment Means and
Payment Method to see how payment will
be processed.
5. Add

Accounting Information System (AIS)

SALES DOCUMENTS – Incoming Payments

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.

HOW TO CREATE INCOMING PAYMENTS:

1. Go to Modules Menu > Banking > Incoming Payments > Incoming Payments
2. Choose Customer in the code field. In this case, C20000 (Norm Thompson).
3. On the ‘Selected column’, check the invoice to be paid.
4. Click Payment Means on the tool bar.
5. Select the Payment Means (there are 4 options – Check, Bank Transfer, Credit Card, Cash), in this
case, choose cash.
6. On the Total field, right click, select Copy Balance Due.
7. Click OK.
8. Click ‘Add’ and click Yes when prompted with the system message.

Accounting Information System (AIS)

Accounting Information System (AIS)
LINKING PURCHASING DOCUMENTS SAP Business One enables you to create
target documents directly from base
documents. For example, you can create a
Goods Receipt directly from the Purchase
Order (and vice versa). In that case, all the
data that you entered in the sales order is
automatically copied to the delivery.

Linking documents is important, as it

establishes the connections between
documents (by extension, the procurement
process) to form a paper trail. This trail will
then allow all concerned in the organization
to track the progress of each given step. To
see the document trail of a particular
Purchasing Document, right click on the
document and choose relationship map

Accounting Information System (AIS)

How to View Relationship Map
1. Open a sales document. (Sales Order, Delivery, A/R Invoice)
2. Click Last Data Record, or other tools in the tool bar (First Data Record, Previous Record, Next
Record) to view the document you want to view.
3. Right click on the purchasing document and choose Relationship Map.

Accounting Information System (AIS)

At the end of the lesson, the student will be able to:

• Enumerate the various documents used in

marketing, production and banking.
• Create documents used in daily operations.

Accounting Information System (AIS)