WRITTEN ACTIVITY 6: Inventory Management

A-331 Group 3

Cabigting, Kyla Anne Jouey D.

Mariano, Freen B.

Nicodemus, Daena D.

Pineda, Geline R.

Rodriguez, Zyra Denelle M.

Timaio, Jassiren D.
1. How to set-up item groups and define warehouses.

First, enter the relevant information to the field in the system. The data will then be
used automatically by the system for purchasing, sales, production, managing your
warehouse, and accounting. You then go to the modules menu, choose
administration, then setup, then Inventory and lastly is go to Item Groups. In defining
a warehouse, go to the modules menu then choose administration. Choose set up,
then click inventory. Lastly, go to warehouses to define new warehouses. In defining
a new warehouse, enter the warehouse code and the warehouse name, then fill in
the necessary information under the tab of address field, location, drop ship and
accounting tab.

2. What is the difference between managing items by serial numbers and

managing items by batch?

Managing by Serial Numbers can help track items in your warehouse and it will help
you know which item is sold to customers. Managing by serial numbers is effective
depending on two criteria: the value and the need for tracking and repair. If it is of
high value and is needed to be tracked for repair or security reasons, then the item
should be managed by a serial number. Having a serial number is also important in
services, where the customer will be given a customer equipment card to store
information about transactions. Managing by batch, on the other hand, groups items
based on their common characteristics or attributes. These attributes depend on the
item: it may be by the shade of the color or by the date the items are received or
expired, etc.

3. How is transferring goods using goods issue, goods receipt and inventory
transfer done in SAP Business One?

The process of transferring goods using Goods Issue in are in the following order:
(1) Modules Menu, Inventory, (2) Inventory Transactions, (3) Goods Issue. A Goods
Issue Window will appear. (4) Under the Contents Tab, on the Item No. field, click
Selection List Button and select the specific item, (5) On the Quantity Field, type the
quantity of goods to be transferred to Goods Issue, (6) On the Remarks Field, input
the reason why there has been a decrease in the quantity, (7) Add to post the Goods
Issue. For Goods Receipt, (1) Modules menu, Inventory, (2) Inventory Transactions,
(3) Goods Receipt. A Goods Receipt Window will appear. (4) Under the Contents
Tab, click the Selection List Button and select the specific item, (5) On the Quantity
Field, type the quantity of goods to be transferred to Goods Issue, (6) On the
Remarks Field, input the reason why there has been an increase in the quantity, (7)
Add to post the Goods Receipt. For Inventory Transfer, (1) Modules menu,
Inventory, (2) Inventory Transactions, (3) Inventory Transfer. An Inventory Transfer
Window will appear. (4) Under the Contents Tab, fill up the needed information, (5)
Add to post the Inventory Transfer from one warehouse to another.

4. Identify and differentiate the types of discount that can be given to

customers as set up in SAP Business One.

Discount groups are the most flexible type of pricing as they can be assigned to
specific business partners, business partner groups, or all business partners; based
on specific items, item groups, properties, or manufacturers. In deciding on which
discount is used: Highest Discount, the property with the highest discount will
identify the calculated discount entirely for the item. When the lowest discount is
used, the property having the lowest discount will establish the entire discount
calculated for the item. Average discount is when the system computes for the
average of the discounts and then the calculated average will be applied as the
discount. Discount tools where the system will sum up all the discounts of the
properties that employ to the item and their total (up to 100%) will be used as the
discount.

5. How to create new price lists and new discounts done in SAP Business
One?

You may create a price list and enter the prices manually or create a price list that is
based on the existing price list. On the main menu, Inventory > Price Lists > Price
Lists. Open the context menu by right-clicking anywhere then choose Add Row. Fill
up the information needed then click Update. For period and volume discounts,
choose Inventory > Price Lists > Period and Volume Discounts. Select the price list
for which you want to define discounts; enter the date range for the discount by filling
up the Valid From and Valid To portion; enter the quantity required to receive the
discount and the discount percentage, then click add. For discount groups, Inventory
> Price Lists > Discount Groups then input all the information needed then click add.
For special prices, choose Inventory > Price Lists > Special Prices > Special Prices
for Business Partners then select the required business partner and item and enter
the discount percentage for an item. Fill out the information needed and then click
add.