SAP Business One

Business Blueprint
for
APPLIANCE HUB CORPORATION
 Table of Contents

Section 1 Company Details

Section 2 General Settings
Section 3 Currencies
Section 4 General Ledger and Chart of Accounts
Section 5 Bank Information
Section 6 Tax Codes
Section 7 G/L Account Determination
Section 8 Warehouses
Section 9 Item Groups
Section 10 Payment Terms and Payment Methods
Section 11 Company Credit Card Information A/R
Section 12 Company Credit Card Information A/P
Section 13 Users and Passwords
Section 14 Territories, Commission Groups and Salespeople
Section 15 Customer Groups
Section 16 Vendor Groups
Section 17 Shipping Types
Section 18 Document Settings

2
1. Company Details
Company Name:
Used in reports and with the company address APPLIANCE HUB CORPORATION
information
Company Address 987 Chino Roces Avenue Makati City
Internet Address www.appliancehub.com
Phone 1 418-2770
Phone 2 418-2771
Fax
Company general information E-Mail address applianccehubcorp@gmail.com
Local Currency Philippine Peso
System Currency Philippine Peso
Will your business use any of the SBO (SAP Business
One) tax features?
Yes
Tax types may include Sales Tax, Use Tax, Value
Added Tax
Does your business currently use a segmented Chart
No
of Accounts?
Does your business require Multi-Language Support?
This function is used to translate field names in
Yes
Business One to foreign languages and print them in
documents you send to foreign business partners.

Which inventory valuation method would you like to

default into new item records? This assumes
Perpetual Inventory is to be used.
Note this can be changed to another method at the
Moving Average
time a new item master record is created.
Options:
Moving Average
Standard
FIFO

Does your business allow a stock release without a

cost?
Permits items to be included in documents such as
deliveries or A/R invoices, even when a cost price has
No
not been determined. Select when the inventory
3
valuation is performed according to moving average
or FIFO. If you selected Standard Price, a price has
already been defined.
 Do you want the system to display credit values with
a minus sign? If so, select the Display Credit Balance
with Negative Sign checkbox. Display Credit Balance with
Negative Sign
Note: this checkbox is usually set automatically
based on local practices. It cannot be changed after
you have posted transactions.
Do you want the system to reverse an amount using
a negative amount or a debit/credit switch?
No
If you want to use a negative amount, select the Use
Negative Amount for Reverse Transaction checkbox.
Note: this checkbox can be changed at any time.

2. General Settings
What are the standard posting periods for your Fiscal Calendar
business? Date From: January 01 to December 31
Number of Periods: 12 (months)
Start of Fiscal Year: January
Customer Activity Alerts Options: Credit Limit:
You can restrict the creation of sales documents for Consider Deliveries Balance
customers and prompt a warning message according After you select the option(s)
to the following parameters: described above, select the type of
Credit Limit: documents to which the restrictions
Select to check whether adding the sales apply and for which a warning
document for the customer causes deviation from message is launched:
the credit limit defined for the customer in the Sales Order
Business Partners Master record. Delivery
Consider Deliveries Balance A/R Invoice
Select to check the customer's account balance Pick List
and also the balance of their open deliveries
while applying the selected restrictions for
customer activity.
How does your business set the commission rate by, Sales employees
If used? Items
Define how commissions are calculated. A commission Customers
can be awarded based on the sales employee, item, or
customer specified in the document.
This setting influences where you can specify the sales
commission percentage, but does not automatically
calculate any commission transactions.
You can change this setting at any time.
What default payment terms would you like to use Net 30 (30 days net)
4 for customer Sales Orders and A/R Invoices
Note: This is only a default that is used when new
customer records are created. Payment terms can be
changed in the customer record and in sales
documents.
What default payment terms would you like to use Net 30 (30 days net)
for vendor Purchase Order and A/P Invoices
Note: This is only a default for when new vendor
records are created. Payment terms can be changed
in the vendor record and in purchasing documents.
Which time format would you like to use on the 12 Hour
screen display:
Which Date Format would you like to use on the MM/DD/YY
screen display:
How many decimal places would you like to be Currency Amounts: 2 decimal places
displayed and used in calculations for: Prices: 2 decimal places
Note: This setting will define the respective number of Rates: 2 decimal places
decimal places displayed for amounts, prices, Quantities: 2 decimal places
exchange rates, quantities, percentages, and units. Percentage: 2 decimal places
Note: After a journal entry has been posted in the Units: 2 decimal places
system, you cannot decrease the number of decimal
places. You can only increase the number of decimal
places up to 6 digits. This change is irreversible. The
change will be applied on future actions only, and has
no retroactive influence.
Your selection effects calculations in SAP Business
One, and the values that will be saved in the
database. For example, if you chose 2 decimal places
for amounts and you work with 6 decimal places for
very small prices and quantities, totals might be not
accurate.

Does your business use Serial Numbered Items? Yes

If Yes: Choose the required method for assigning
serial and batch-managed numbers to items:
On Every Transaction you are required to On every transaction
assign serial or batch numbers for every
inventory transaction.
On Release Only you are required to assign
serial or batch numbers for inventory release
transactions only. It is optional for other
transactions.
Serial no
Are serial numbers unique by:
None
Manufacturers serial no
Serial no 5
Lot no Automatically create customer
Note: Unique serial numbers are required for equipment card
automatic creation of equipment cards.
 When new items are added to your Item Master data, All Items available in all warehouses.
would you like all items to be available in all
warehouses or select which items are available in
each warehouse?
Where should the system find the default G/L Warehouse
accounts for inventory postings?
Warehouse
Item Group
Item level

3. Currencies
List the currencies that your business may use in your sales or purchases
Currency Name Currency Code

Philippine Peso PHP

4. General Ledger Account Segments & Chart of Accounts

Please provide a current copy of your businesss Chart of Accounts in Excel format if
possible. (Copy Provided)
Note: this section is valid only for certain localizations.
Does your current Chart of Accounts use account segmentation? If so how are segments set up?
Segmentation Name Size Type

i.e. Natural Account NA NA Alphanumeric or Numeric only

i.e. Department NA NA Alphanumeric or Numeric only

The accounting department requests that you use the following accounts.

CHART OF ACCOUNTS

ASSETS (G/L Acct Code:100000000000000)

A1000 Current Assets (Title Account)
A1100 Cash (Title Account)
A1110 Cash on Hand
A1120 Cash in Bank (Title Account)
A1121 Metrobank Acct No. 9021
A1122 Banco De Oro Acct No. 1001
A1200 Receivable (Title Account)
A1210 Accounts Receivable
A1300 Inventory (Title Account)
A1310 Merchandise Inventory
6 A1400 Other Current Assets (Title Account)
A1410 Prepaid Expenses
A1420 Input Tax
A2000 - Noncurrent Assets (Title Account)
A2100 Office Equipment Net
 A2110 Office Equipment
A2120 Acc. Depn. Office Equipment

LIABILITIES (G/L Acct Code:200000000000000)

L1000 Current Liabilities (Title Account)
L1100 Accounts Payable
L1200 VAT Payable (Output Tax)
L1300 Notes Payable
L1400 Goods Received Not Invoiced

CAPITAL AND RESERVES(G/LAcctCode:300000000000000)

CR1000 Equity (Title Account)
CR1100 - Share Capital
CR1200 - Additional Paid-In Capital
CR1300 - Retained Earnings
CR1400 - Income Summary

TURNOVER (G/L Acct Code:400000000000000)

T1000 Sales
T2000 Sales Discount
T3000 Sales Return and Allowances
T4000 Miscellaneous Income

COST OF SALES (G/L Acct Code:500000000000000)

CS1000 Cost of Sales
CS2000 Gain/Loss Price Variance
CS3000 Cash Discounts Earned

OPERATING COSTS(G/L Acct Code:600000000000000)

OC1000 - Salaries & Wages
OC2000 - Taxes & Licenses
OC3000 - Depreciation Expense OE
OC4000 - Rent Expense

TAXATION AND EXTRAORDINARY ITEMS (G/L Acct Code: 800000000000000)

EX1000 Opening Balance

OTHER INFORMATION:
Control Accounts
A1210 - Accounts Receivable
L1100 - Accounts Payable

Cash Accounts 7
A1110 Cash on Hand
A1121 Metrobank Acct No. 9021
A1122 Banco De Oro Acct No. 1001
 5. Bank Information
Bank Acct 1 Bank Acct 2
Bank Code MBTC BDO
(up to 19 characters)
Country Code Philippines Philippines
(if other than USA)
Bank Name Metrobank Banco de Oro
Account Number 987645671234 567123
(Last 4 digits)
Branch Makati Makati

Address
City, St Zip
Select the Metrobank G/L account Select the BDO G/L account
Bank G/L Account
from the chart of accounts from the chart of accounts
Check Clearing G/L Account
ABA Routing Number
(optional - Information only)

Additional Information: Metrobank is the company's default bank.

6. Tax Codes
If your business collects or tracks Sales by Taxing Authority please complete the tables
below.
Sales Tax Name:Philippine Input Tax Sales Tax Total Rate: 12
Sales Tax Code: PhIT (Appliance Hub is a VAT
Registered Business)
Tax Authority: N/A Name: N/A Tax on Tax?N/A Rate: N/A Sales Tax Payable G/L:
(i.e. State, County, City) N/A
Tax Authority: N/A Name: N/A Tax on Tax?N/A Rate: N/A Sales Tax Payable G/L:
(i.e. State, County, City) N/A

Purchase Tax Code: Sales Tax Name:Philippine Output Tax Purchase Tax Total Rate:
PhOT 12

7. Default G/L Account Determination for Transaction Postings

Note: Leave blank any unclear types of G/L account codes requested.
Sales G/L Account Determination G/L Account Code
8 Domestic A/R (control account) A1210 Accounts Receivable

Foreign Receivables
Checks Received (Un-deposited Funds)
Cash on Hand (Default Petty Cash Account) A1110 Cash on Hand

Underpayment A/R (Customer Payments are Short)

Overpayment A/R (Customer Payments are Over)
Realized Exchange Difference Gain (Only used when using
Foreign Currency in A/R Invoices & Payments)
Realized Exchange Difference Loss (Only used when using
Foreign Currency in A/R Invoices & Payments)
Cash Discount (Customer Cash Discounts Earned for paying T2000 Sales Discount
within certain Terms)
Revenue Account (Default Sales Revenue Account) T1000 Sales

Sales Credit Account (A/R Credit Memo Revenue Account) T3000 Sales Returns and Allowances

Default G/L Account Determination for Transaction Postings (Cont)

Purchasing G/L Account Determination G/L Account Code
L1100 Accounts Payable
Domestic A/P

Foreign Payables
Realized Exchange Difference Gain
(Only used when using Foreign Currency in A/P Invoices &
Payments)
Realized Exchange Difference Loss
(Only used when using Foreign Currency in A/P Invoices &
Payments)
Bank Transfer A1121 Metrobank Acct No. 9021
(Default Bank Account used on outgoing vendor payments
via electronic bank transfer)
Cash Discount CS3000 Cash Discounts Earned
(Cash Discounts Earned for paying A/P within certain
Terms)
Expense Account CS1000 Cost of Sales
(Purchases of Non-Stocked Items)
Purchase Credit Account CS1000 Cost of Sales
(A/P Credit Memo Account for Purchases of Non-Stocked
Items)
Underpayment A/P
(A/P Payments are Short not normally used in US
Localizations)
Overpayment A/P
(A/P Payments are Over not normally used in US 9
Localizations)
 Default G/L Account Determination for Transaction Postings (Cont)
General G/L Account Code

Credit Card Bank Fee

Rounding Account
(An account for the system to use in journal entries
automatically created for rounding differences. This may
occur when you define rounding for certain currencies or for
sales documents.)
Period-End Closing Account CR1400 Income Summary
(This account is used once a year to clear the P & L accounts
into Current Retained Earnings. It should be an Equity G/L
Account but not the same account as your standard
Retained Earnings Account)
Opening Balance Account EX1000 Opening Balance
(The offsetting account used when entering opening
balances)

Default G/L Account Determination for Transaction Postings (Cont)

Inventory G/L Account Code

Inventory Account A1310 Merchandise Inventory

Cost of Goods Sold Account CS1000 Cost of Sales

Allocation Account L1400 Goods Received Not Invoiced
(Inventory Receipts A/P Accrual) - Clearing
Variance Account
(Used only with Standard Cost Inventory Item Types)
Price Difference Account CS2000 Gain/Loss Price Variance
(Records a price difference to this COGS account if the A/P
invoice cost differs from the PO Goods Receipt cost and
there is 0 or less than the quantity received to apply the
cost difference to in the Inventory Account)
Negative Inventory Account
(Used to track the Landed Costs additions to the original
amount posted COGS when there is 0 or less than the
quantity in inventory for which the landed costs are being
applied to)
Inventory Offset Decrease CS2000 Gain/Loss Price Variance
(An offsetting account to the Stock account used in Goods
Receipts and negative differences in Stock Postings
(updates after inventory).
10
Inventory Offset Increase CS2000 Gain/Loss Price Variance
(An offsetting account to the Stock account used in Goods
Receipts and positive differences in Stock Postings (updates
after inventory).
Sales Returns A1310 Merchandise Inventory
(The inventory account to use when returning stock to
inventory via a A/R Credit Memo or Goods Receipt)
Realized Exchange Difference
(Only used when using Foreign Currency in Inventory
Purchasing documents)
Goods Clearing Account
(Used only when a PO Goods Receipts has been posted to
the Inventory and A/P Accrual account and now the user
closes the PO Goods Receipt instead of drawing it into a A/P
Voucher. This account is used as the offset account to the
debit to A/P Accrual. For most businesses this type of
transaction would not occur.)
Decrease GL Account
(Used as a balancing account when the stock value is
decreased due to the creation of a material revaluation
document.)
Increase GL Account
(Used as a balancing account when the stock value is
decreased due to the creation of a material revaluation
document.)
WIP Inventory Account
(Define an account in which the system maintains the value
of the items that are included in the production process.
That is, the period when production has begun but the final
product is not ready yet.)
WIP Inventory Variance Account
(An account in which the system maintains the variance
amounts of the items that participate in the product
process. The amount is posted when the production order's
status is 'Closed'.)
Expenses Clearing Account
(Used as the A/P Accrual account for Additional Expenses in
the PO Goods Receipt, i.e. freight)

11
 8. Warehouses
The warehouses G/L Account Determination will default in from the Inventory G/L
Determination set up previously in #6 Default G/L Account Determination for Transaction
Postings Inventory Table. The warehouse G/L Determinations can be modified once the
Initial Core Configuration has been delivered.
Warehouse Code 01 02 03
(up to 8 characters)
General North Luzon Laguna
Warehouse Name
Warehouse Warehouse Warehouse
Location Makati Pangasinan Cavite
(Several warehouse can be grouped by Location)
Street Address
City, ST Zip Makati Dagupan San Pedro

County (Optional)
Country Philippines Philippines Philippines
Tax Code Default
(This Tax Code will default into A/R documents
when this warehouse is used)

9. Item Groups
Item Group Name Gadgets Household Accessories
(up to 20 characters) &Computers
Default Planning Method MRP MRP MRP

Default Procurement Method Buy Buy Buy

Default Order Multiple
(For example, if the value is 12, the items are ordered
in multiples of 12.)
Default Minimum Order Quantity
Default Lead Time in Days
Default Valuation Method
Notes:
Item Groups are also heavily used in Sales Analysis and reporting. Defining Item Groups
with Reporting and a possible General Ledger implication in mind is helpful.

12
10. Payment Terms and Payment Methods
Complete the blueprint to meet the client requirements. For APPLIANCE HUB
CORPORATION Enterprises requirements, refer to rows 3 and 45 in the requirements
table.
Define Payment Terms
3/5, 2/7, Cash (Cash 2/10, n/30
Terms Code Net30
n/30 Basic)
Due Date Based on Posting Date Posting Date N/A Posting Date
Doc Date
Posting Date
System Date
Start Calculating Due Date N/A N/A N/A N/A
from(If other than above)
Month Start
Month End
Half Month
How Many Days from Start is 30 30 N/A 30
the Invoice Due:
Does this Payment Term No No No No
have installments?
Should SAP Open the No No Yes No
Incoming Payment Window
when this Payment Terms is
used?
No Yes; 2% No Yes, 2%
Does this Payment Term
within 5 days within 10
have a Cash Discount?
and 3% days
If so what are the terms?
within 7 days

11. Credit Card Information for Incoming Customer Payments

Credit Card Name N/A N/A N/A
G/L Account Credit Card Deposits are
made to
Credit Card Merchant Number
Credit Card Manual Authorization
Telephone Number
How Often a Week is the Credit Card
Settled to the Bank?
How Many Days after the Credit Card is
Settled to the bank are the funds
deposited into your account? 13
What is the Minimum $ Amount
allowed to use this Credit Card?
 What is the Maximum $ Amount
allowed in this Credit Card without an
Authorization?

12. Company Credit Card Information for Outgoing Business Payments

Company Credit Card Name N/A N/A N/A N/A

Liability G/L Account for this
Credit Card

13. Users and Passwords

Field Name Values
User Code Charm Happy Jaimie Romer
User Name Charm Sael Happy Roque Jaimie Tan Romer Rulida
Department Sales Sales Sales Purchasing
Super User Y N N N
Password 1234 1234 1234 1234

14. Price Lists

Vendor Price Lists:
Base Price
Appliance Hub Corporation uses the Base Price list to record the usual cost of items. The Base Price
is the company's basis in adding mark-ups to Customers and in computing for the discounts provided by
Vendors. Since this is the basis, the factor would be 1 (One).

Regular Purchase Price

Regular Purchase Price list contains the average purchase price of items. Based on Appliance Hub
Corporation's historical data, the average purchase prices of items are 5% higher than the Base Price list.
Hence, the factor or multiplier for this Price List is 1.05 of the Base Price. Therefore, if the Base Price is PHP
100, the Regular Purchase Price is PHP 105.

Discounted Purchase Price

This price list is 20% lower than the Base Price. Hence, the factor/multiplier to be used is 0.80.
Therefore, if the Base Price is PHP 100, the Discounted Purchase Price is PHP 80.

Customer Price Lists:

Distributor's Sales Price
This price list has a 35% markup baaed on Base Price list. Hence, the factor/multiplier to be used is
1.35. Therefore, if the Base Price is PHP 100, the Distributor's Sales Price is PHP 135.

Regular Sales Price

This price list has a 75% markup based on Base Price list. Hence, the factor/multiplier to be used is
1.75. Therefore, if the Base Price is PHP 100, the Distributor's Sales Price is PHP 175.

15. Customer Groups

Customer Groups are assigned in the Customers Master File record. These Customer
14 Groups are used heavily in Sales Analysis and other reporting.
Customer Group Name
Retailers
 Distributors

16. Vendor Groups

Vendor Groups are assigned in the Vendors Master File record. These Vendor Groups are
used heavily in Purchase Analysis and other reporting.
Vendor Group Name
Wholesalers
Manufacturers

17. Shipping Types

Shipping Types are used in the Sales and Delivery process.

Shipping Type Shippers Web Site
N/A N/A

18. Document Settings

Review the blueprint settings with your instructor.

General
Would you like SAP B1 to Calculate the Gross Profit for Yes
all A/R Invoices? Use Item Cost as base price origin
Note: gross profit is used in the Sales Analysis report.
Which would you like the Remarks Area on Target Customer/Vendor Ref. No.
Documents to include: (Customer PO or Vendor Order )
The Base Documents Number.
(i.e. an invoice created from a
Sales Order would list Created
from Sales Order Number: xxx in
the Remarks section of the
Invoice)
When Displaying a Sales BOM (Kitted Item) in Documents, Price and Total for Parent Item Only
Show Price for Child Items that
Comprise Parent
When Attempting to Release Stock Below items Do Not Warn
Minimum Level, what would you like the system to do: Warning Only
Block Release
if so, by Warehouse Yes / No:
Does your business allow Negative Quantity? Yes
15
No
If rounding is required, which method should the system By Currency
use when rounding? By Document
Check with your instructor
 In your purchasing documents would you like the Posting Date
Exchange Rate Based on: Document Date
Rounding Method Yes
Would you like the system to round the tax amount in No
rows Check with your instructor
(Select to set the rounding of tax amounts per document
row. If this option is deselected, document rows display
the not rounded tax amount, and the system will round
tax amounts per tax group.)
Display Rounding Remark Yes
(Select to determine whether a remark will be displayed No
in the Remarks field of the sales document when an
amount has been rounded. If you select the checkbox, a
remark in a foreign-currency invoice for a customer is
displayed stating that the discount amount is different
from the discount percentage due to rounding.)
Would you like to Warehouse Address set up in the Yes
Warehouse file on Purchase Order? No
(Select if you want the Ship To address of the purchase
document (Logistics tab) to be the warehouse address. If
this checkbox is deselected, the Ship To address will be
the address of the company)
Manage Freight Yes
Would you like the system to block documents (i.e. Block Documents with a Past
Invoices, A/P Vouchers) that have a posting date in the Posting Date
past or the future Block Documents with a Future
Posting Date

16
 PROJECT REALIZATION - CONFIGURATION OF COMPANY DATABASE

You, together with other functional consultant will now create a new database for Appliance Hub and
configure it based on the Business Blueprint and based on other agreed customer requirement.

I. Create and Configure a New Company Database

A. Open SAP Business One> Click Change Company
B. In the Choose Company window, select New, open the dropdown list, and choose New.
C. Enter the Site Password: B1Admin then click OK.
D. Enter the Company Information and define the Posting Period

Click Continue, then click OK on the Create New Company Window.

The system will create a blank company database for Appliance Hub Corporation.
This may take a few minutes.

In case the error message "Update of encryption algorithm failed" displays, simply ignore and
wait for SAP to redirect you to Change Password window.

E. Enter a password for the manager account.

In the Password field, type 1234.
Confirm by typing again 1234 then click Update.
Click "Update".

2. COMPANY DETAILS(Section 1 of Business Blueprint)

F. Enter the company name, address and other details, as required.

Go to Administration > System Initialization > Company Details > General Tab> Local
Language Sub Tab

Click Update, then proceed to Basic Initialization Tab

In the Basic Initialization tab, enter Philippine Peso in the Local Currency and System Currency
fields.

Click Update, then OK.

Tick mark the boxes required as stated in the Business Blueprint.

17
 OUTPUT:

Click Update, then OK.

3. GENERAL ETTINGS (Section 2 of the Business Blueprint)

Go to Administration > System Initialization > General Settings> BP Tab

18
Click Update, then proceed to Display tab

Also, although Exchange Rate Posting is not defined in the Blueprint, choosing Direct option
is necessary. This is to simplify conversion of foreign currencies.
If Direct is chosen, exchange rate is computed is computed as P 50 = 1 USD
If Indirect is chosen, exchange rate is computed as P 0.20 = 1 USD

19

Click Update, then proceed to Inventory tab.

 Click Update, then click OK.

4. CURRENCIES(Section 3 of the Business Blueprint)

This is already set in the Company details. Both Philippine Peso and USD are now available in the list of
currencies.

5. GENERAL LEDGER AND CHART OF ACCOUNTS(Section 4 of the Business Blueprint)

Appliance Hub Corporation provided you the chart of accounts (in MS Excel) which it uses in its
business.
The companys fiscal year corresponds to the calendar year and they create the financial tatement
once a year. They need twelve posting periods for their internal controlling.

The accounting department requests that you use the following accounts (see also the Excel sheet
provided).

Control Accounts
A1210 - Accounts Receivable
L1100 - Accounts Payable

Cash Accounts
A1110 Cash on Hand
A1121 Metrobank Acct No. 9021
A1122 Banco De Oro Acct No. 1001
A1123 Banco De Oro Acct No. 1001

CHART OF ACCOUNTS

ASSETS (G/L Acct Code:100000000000000)

A1000 Current Assets (Title Account)
A1100 Cash (Title Account)
A1110 Cash on Hand
A1120 Cash in Bank (Title Account)
A1121 Metrobank Acct No. 9021
20 A1122 Banco De Oro Acct No. 1001
A1200 Receivable (Title Account)
A1210 Accounts Receivable
A1300 Inventory (Title Account)
 A1310 Merchandise Inventory
A1400 Other Current Assets (Title Account)
A1410 Prepaid Expenses
A1420 Input Tax
A2000 - Noncurrent Assets (Title Account)
A2100 Office Equipment Net
A2110 Office Equipment
A2120 Acc. Depn. Office Equipment

LIABILITIES (G/L Acct Code:200000000000000)

L1000 Current Liabilities (Title Account)
L1100 Accounts Payable
L1200 VAT Payable (Output Tax)
L1300 Notes Payable
L1400 Goods Received Not Invoiced

CAPITAL AND RESERVES(G/LAcctCode:300000000000000)

CR1000 Equity (Title Account)
CR1100 - Share Capital
CR1200 - Additional Paid-In Capital
CR1300 - Retained Earnings
CR1400 - Income Summary

TURNOVER (G/L Acct Code:400000000000000)

T1000 Sales
T2000 Sales Discount
T3000 Sales Return and Allowances
T4000 Miscellaneous Income

COST OF SALES (G/L Acct Code:500000000000000)

CS1000 Cost of Sales
CS2000 Gain/Loss Price Variance
CS3000 Cash Discounts Earned

OPERATING COSTS(G/L Acct Code:600000000000000)

OC1000 - Salaries & Wages
OC2000 - Taxes & Licenses
OC3000 - Depreciation Expense OE
OC4000 - Rent Expense

TAXATION AND EXTRAORDINARY ITEMS (G/L Acct Code: 800000000000000)

EX1000 Opening Balance
21

Import the aboveChart of Accounts in SAP Business One using Data Transfer Workbench:
A. Fill-out the Chart of Accounts template for Data Transfer Workbench (DTW).
 1. Open Data Transfer Workbench template for Chart of Accounts
Start>All Programs>SAP Business One > Data Migration> Templates> Templates

2. On the Templates folder, open Financials > Chart of Accounts

Open the Microsoft Excel Template OACT - ChartOfAccounts.

3. Enter the required information as presented above.

You may delete or hide unused columns (or you may leave it blank).

4. Save the file as Comma delimited (.csv). Do not close the .csv file. Or else, the format of numbers
with lengthy digits will be changed such that 100000000000000 will become 1E+10 which will
cause error upon importing to SAP.

COLUMN for Code, Name and CashAccount

COLUMN for ActiveAccount

Active Accounts are the only accounts that can be used in creating Journal Entries.
Title Accountscannot be used in creating Journal Entries. These are just used to categorize the
active accounts.

COLUMN for FatherAccountKey:

How Father Accounts are determined?

COLUMN for AccountType

For AcctType column, fillout only those active accounts.
N - for Other
I - for Sales/Income
E - for Expenditure

If you go to Financials > Chart of Accoounts, the choices under the Account Type field are either
Sales, Expenditure or Other

All acocunts under Assets, Liabilities and Capital and Reserves drawers are under Account Type
"Other"
All Accounts under Sales Drawer are under Account Type "Sales"
All Accounts under Cost of Sales and Operating Costs are under Account Type "Expenditure"

COLUMN for LockManualTransaction

COLUMN for PlanningLevel

Planning Level Determination:

FINAL and COMPLETE Output for Chart of Account's DTW Template based on client
requirements: Save the file as CSV (Comma Delimited) using any file name as you see fit.
22
5. Open SAP Business One Data Transfer Workbench
Start > All Programs > SAP Business One> Data Migration > Data Transfer Workbench
Choose Appliance Hub Corporation, then Login using the following details:
User Code: manager
 Password: 1234
Click OK.

NOTE:If the databases are not appearing, click Refresh. If the there are still no databases, click
Change Server. Enter the following:
Database Server: <Computer Name>
Login ID: sa
Password: B1Admin
Click OK. You may now Log in to ADVCorp Database.)

6. Import the file to SAP Business One

Click Import>Next
On Step 1: Choose Master Data>Next
On Step 2: Choose Add New Data>Next
On Step 3: Choose Financials>Chart of Accounts >Next
On Step 4: Browse for the csv file prepared to add the new business partner groups >Next
On Step 5: Click Next
On Step 6: Click Cancel Import and Perform Rollback When One orMore Errors Occur
On Step 7: Click Import. Click Finish

7. Log in to SAP Business One (using the database where the .csv file was migrated) and view the
chart of accounts
Financials >Chart of Accounts

6. BANK INFORMATION(Section 5 of the Business Blueprint)

A. Add a new bank
1. Choose Administration Setup Banking Banks
Banks - Setup Values
Country Code Philippines
Bank Code MBTC
Bank Name Metrobank
2. ChooseUpdate, do not close the window yet.
3. Enter another bank - BDO
Banks - Setup Values
Country Code Philippines
Bank Code BDO
Bank Name Banco De Oro
4. ChooseUpdate then OK.

B. Set the house bank

1. Set the House Bank Account for Metrobank. Choose Administration Setup
Banking House Bank Accounts
House Bank Accounts Values
- Setup
Bank Code MBTC
Country This should be automatically entered based on the bank code, for example, PH
Branch Makati
Account No. 987645671234 23
G/L Account Select A1121
2. Choose Update thenand do not close the window yet
3. Set House Bank Account for BDO.
House Bank Accounts Values
- Setup
 Bank Code BDO
Country This should be automatically entered based on the bank code, for example, PH
Branch Makati
Account No. 190123483
G/L Account Select A1122
4. Choose Update then OK.

C. Set the house bank as default for the company

1. Choose Administration System Initialization Company Details Basic
Initialization tab.
2. Select the country, bank, account number and branch for the house bank.
3. Choose Update then OK.

7. BANK INFORMATION(Section 6 of the Business Blueprint)

Tax Set-up - This will be the basis of SAP in computing for VAT.
a. Setup Input VAT at 12%.
Go to Administration > Setup > Financials > Tax > Tax Groups>Enter the following details:
Code Name Category Tax Account
PhIT Philippine Input Tax Input Tax A1420 Click Tax Definition

b. Setup Output VAT at 12%.

Go to Administration > Setup > Financials > Tax > Tax Groups> Enter the following details:
Code Name Category Tax
PhOT Philippine Output Output Account
L1200 Click Tax
Tax Tax Definition
Then Click Update, then OK on the Tax Definition - Setup Window.

c. Setup the tax accounts:

Go to Administration > Setup > Financials > Tax > Tax Groups. Follow the image below:

8. G/L ACCOUNT DETERMINATION(Section 7 of the Business Blueprint)

Based on the company's journal entries, your team determined the following G/L Account
Determination (refer to Blueprint):

The accounts set here will be the basis of SAP for automatic journal entries when creating
transactions. If the G/L Account determination is not set, you will not be able to enter marketing
documents in SAP. During the setup of SAP, the implementing team is usually composed of IT and
Accounting professionals. Assume that the accounting individuals in your team determined the
following to be entered in the G/L Account Determination of SAP. Set the G/L Account
Determination as follow (G/L Stands for General Ledger):
Administration> Setup > Financials > G/L Account Determination
SALES (General Sub-tab)
Type of Account Account Account Name
Domestic A/R Code
A1210 Accounts Receivable
Cash on Hand A1110 Cash on Hand
24 Cash Discount T2000 Sales Discount
Revenue Account T1000 Sales
Sales Credit T3000 Sales Return and
Account Allowances
Click Update then proceed to Tax sub tab.
 SALES (Tax Sub-tab)
Type of Account Account Account Name
Down Payment Tax Offset Acct Code
L1200 VAT Payable (Output
Tax)

PURCHASING (General Sub-Tab)

Type of Account Account Account Name
Domestic A/P Code
L1100 Accounts Payable
Bank Transfer A1121 Metrobank Acct No.
Cash Discount CS3000 9021
Cash Discounts Earned
Expense Account CS1000 Cost of Sales
Purchase Credit Account CS1000 Cost of Sales

Click Update then proceed to Tax sub tab.

PURCHASING (Tax Sub-tab)

Type of Account Account Account Name
Down Payment Tax Offset Acct Code
L1200 VAT Payable (Output
Tax)
GENERAL
Type of Account Account Account Name
Period-End Closing Account Code
CR1400 Income Summary
Opening Balance Account EX1000 Opening Balance

INVENTORY
Note: You will see this warning message when setting the G/L Account for Inventory. This is normal and it is
only a warning. Ignoe and continue to setup the G/L Accts for Inventory.

Type of Account Account Account Name

Inventory Code
A1310 Merchandise Inventory
Cost of Goods Sold Account CS1000 Cost of Sales
Allocation Account L1400 Goods Received Not Invoice -
Price Difference Account CS2000 Clearing
Gain/Loss Price Variance
Inventory Offset Decr. Acct CS2000 Gain/Loss Price Variance
Inventory Offset Incr. Acct CS2000 Gain/Loss Price Variance
Sales Returns A1310 Merchandise Inventory

9. WAREHOUSES(Section 8 of the Business Blueprint)

Update the information and the G/L Accounts of the General Warehouse.
Go toAdministration > Setup > Inventory > Warehouses
Choose the Last Data Record. You should see the General Warehouse. Enter the following information
Warehouse Code (up to 8 characters) 1
Warehouse Name General Warehouse 25
Location Makati
City Makati
Country Philippines
 Do not click on Update yet.
Choose the Accounting tab and setup the G/L Account for Warehouses as follow :
Type of Account Account Code Account Name
Expense Account CS1000 Cost of Sales
Revenue Account T1000 Sales
Inventory Account A1310 Merchandise Inventory
Cost of Goods Sold Account CS1000 Cost of Sales
Allocation Account L1400 Goods Received Not Invoiced
Price Difference Account CS2000 Gain/Loss Price Variance
Inventory Offset Decrease Account CS2000 Gain/Loss Price Variance
Inventory Offset Increase Account CS2000 Gain/Loss Price Variance
Sales Returns Account A1310 Merchandise Inventory

Click Update, then close the window.

10. ITEM GROUPS(Section 9 of the Business Blueprint)

Go toAdministration > Setup > Inventory > Item Groups
Enter the following item groups:
Item Group Name (up to 20 characters) Gadgets & Computers Household
Default UoM Group Manual Manual

Default Planning Method MRP MRP

Default Procurement Method Buy Buy

11. PAYMENT TERMS (Section 10 of the Business Blue Print)

Based on the file provided by client (refer to the file above) Appliance Hub Corporation's payment terms for Business
Partners are as follows:
1. 2p10Net30
Sales to customers or purchases from vendors can be paid within 30 days. However, if the customer will pay
within 10 days, a 2% discount is provided. If ADV will pay the Vendor/Supplier within 10 days, ADV is
entitiled to a 2% discount.

2. Net30
Sales to customers or purchases from vendors can be paid within 30 days.

3. Cash - this is already set in SAP

Sales to customers or purchases from vendors are paid in cash, no credit term provided/payment cannot be
postponed, unlike for Net30 and 2p10Net30.

4. 3 Installments (in 3 months)

Sales to customers or purchases from vendors can be paid in 3 installments, for 3 months. Payment for the
first month will start within 10 days from the posting date/ within 10 days from the date of purchase.

Setup the Payment Terms:

Administration > Setup > Business Partners > Payment Terms
26 Terms Code Net30 2p10Net30 3 Installments
(30 days to pay) (30 Days to pay, but if paid
w/in 10 days, 2% discount
is availed)
Due Date Based on Posting Date Posting Date Posting Date
 Start from 0 Months + 30 days 0 Months + 30 days
No. of Installments 3 installments w/in 3 months, first payment
is after 10 days from the Invoice's posting
date
Cash Discount 2% disc if paid w/in 10 days
**Again, Cash Basic (or simply Cash) is already set in SAP Business One

12. BUSINESS PARTNER GROUP(Section 13 of the Business Blue Print)

Based on the file provided by client (refer to the file above) Appliance Hub Corporation categorizes its
customers in four groups as follows:
DISTRIBUTORS, GADGET STORES, MALLS and ONLINE RETAILERS

Enter the above Business Partner Customer Groups in SAP Business One.
Go to Administration > Setup > Business Partners > Customer Groups

For vendors, Appliance Hub Corporation categorizes its vendors in two groups:
MANUFACTURERS and WHOLESALERS
Enter the above Business Partner Vendor Groups in SAP Business One.
Go to Administration > Setup > Business Partners >Vendor Groups

13. PRICELISTS(Section 14 of the Business Blue Print)

Vendor Price Lists:
Base Price
Appliance Hub Corporation uses the Base Price list to record the usual cost of items. The Base Price
is the company's basis in adding mark-ups to Customers and in computing for the discounts provided by
Vendors. Since this is the basis, the factor would be 1 (One).

Regular Purchase Price

Regular Pruchase Price list conatins the average purchase price of items. Based on Appliance Hub
Corporation's historical data, the average purchase prices of items are 5% higher than tha Base Price list.
Hence, the factor or multiplier for this Price List is 1.05 of the Bas Price. Therefore, if the Base Price is PHP
100, the Regular Purchase Price is PHP 105.

Discounted Purchase Price

This price list is 20% lower than the Base Price. Hence, the factor/multiplier to be used is 0.80.
Therefore, if the Base Price is PHP 100, the Discounted Purchase Price is PHP 80.

Customer Price Lists:

Distributor's Sales Price
This price list has a 35% markup baaed on Base Price list. Hence, the factor/multiplier to be used is
1.35. Therefore, if the Base Price is PHP 100, the Distributor's Sales Price is PHP 135.

Regular Sales Price

This price list has a 75% markup based on Base Price list. Hence, the factor/multiplier to be used is
1.75. Therefore, if the Base Price is PHP 100, the Distributor's Sales Price is PHP 175.

Enter the listed price lists in SAP Business One

Go to Inventory > Price Lists > Price Lists
Add the price list above. Choose PHP in the Primary Currency column.

14.MASTER DATA (Data Migration Business Partners and Items) 27

Appliance Hub Corporation provided you with a list of its Business Partners - Customers and Vendors in
excel file as follows. The data is composed of 95 Business Partners. You may enter these data manually to
SAP. However, since a softcopy is already provided to you by the client and to cut time in entering these
 data.Enter these business partners in SAP using Data Transfer Workbench (DTW). Refer to the Excel Sheet
provided by the client.

Do the necessary changes and/or configurations before preparing a .csv file for import.

I. Changing Field Description

Tax Identification No.

Notice that the data above includes TIN, VAT TYPE and Location (different
from address). Since we do not have a TIN field in the Business Partner Master Data,
change the field description "Federal Tax ID" to Tax Identification No. (TIN) in the
Business Partner Master Data window.
Open Business Partners > Business Partner Master Data
On your keyboard, press Ctrl (do not release) then double click Federal Tax ID
Type Tax Identification No. in the New Description field. Click Update, then OK.
II. Extra: Add User-defined fields and tables, Add Business Partners and Items

A. VAT TYPE
Since you will not find a field in SAP Business One where for VAT TYPE, The Implementation team
will add a field in SAP to conform to the requirement of Appliance Hub Corporation These added
fieldsare called User-Defined fields (UDF).
a. Choose Tools Customization Tools User-Defined Fields
Management.
b. Select Master Data > Business Partner > Business Partner
c. click Add.

1. Choose "Set Valid Values for Field" then enter the following data:
Field Name or Data Type Values
Title (no spaces) VATTYPE
Description VAT TYPE
Type Alphanumeric
Length 10
Structure Regular
d. Select Set Valid Values for Field
1. Enter the following data. Click New to start
Value Description Then Choose
VAT VAT New
NON-VAT NON-VAT New
VAT EXEMPT VAT EXEMPT
e. Choose Add, Yes then OK.
f. Open the Business Partner Master Data window.

NOTE: If you see the following window, close the Data Transfer Workbench window and only one
SAP Business One should be opened. The window below indicates that another user is logged in to
the database aside from you.

Again, close or log off from the Data Transfer Workbench window and if 2 or more instances of SAP
Business One are open, close all other windows. Only one SAP should be open. After that, you may
now click Try Again.
28
g. To see the user-defined field, open Business Partners > Business Partner Master Data
h. Choose View User-Defined Fields.You shall see the VAT TYPE field.
i. Open the dropdown list to see the entered VAT Types.
 B. LOCATION
Also, Location field is not found in the Business Partner Master Data. Aside from creating a User-
defined field (UDF), we will be creating a User-defined Table (UDT). This user defined table will
store the data, specifically locations, applicable for ADV's Business Partners.

Add a User-Defined Table for Location

A. Create a user-defined table
1. Choose Tools Customization Tools User-Defined Tables Setup.
2. Create a table with the name Location. Click Update, then OK.

B. Add a user-defined field and link it to the user-defined table

1. Choose Tools Customization Tools User-Defined Fields
Management.
2. Open Master Data > Business Partner > Business Partner. Click Add.

Field Name or Data Type Values

Title Location
Description Location
Type Alphanumeric
Length 20
Structure Regular
3. Choose Set Linked Table and select the Location table.
Click Add, Yes then OK.

4. Choose Tools User-Defined Windows and select the table Location.

Note: this menu option is not active until after you add the user-defined
table.
5. Enter data for the table:
Code Name
101 Metro Manila Click Update
102 Cavite Click Update
103 Bulacan Click Update
104 Pampanga Click Update
105 Baguio Click Update
106 Batangas Click Update
107 Laguna Click Update
108 Pangasinan Click Update
109 Tagaytay Click Update
6. Choose OK.

C. Access the UDT and the UDF's.

1. Open the Business Partner Master Data window.
2. Select the Location field.
3. You can select from the entries in the dropdown list or you can choose Define
New to add a new entry.

29
***You may now create the .csv file to import hte Business Partner Master data using DTW.
D. Prepare the .csv file to import the Business Partner Master data above.
Start>All Programs>SAP Business One > Data Migration> Templates> Templates> Business
Partners > Business Partner Master Data > OCRD - BusinessPartners
2. Add U_Location and U_VATTYPE in the template
 DO THE SAME FOR LOCATION:

Copy the data in the excel file provided by the client and paste it to the OCRD_Business Partners
Template.

CARDTYPE COLUMN:
Valid values are cCustomer for Customers and cSupplier for Suppliers.

GROUPCODE COLUMN:

Query the Group Codes and update the template based on the Group No. seen on the query
preview.

Output:

PAYTERMSGRPCODE COLUMN
Query the Payment Terms Code and update the template based on the Group No. seen on the
query preview.

PRICELISTNUM COLUMN
Query the Price Lists and update the template based on the Price List No. seen on the query
preview.

U_VATTYPE COLUMN

Output:

NOTE: BEFORE IMPORTING THE FILE, MAKE SURE TO REMOVE ALL COMMA ( , ) FOUND ON
THE FILE, OR ELSE, THIS WILL CAUSE AN ERROR UPON IMPORT.

FINAL OUTPUT:

Save the file as .csv comma delimited using any file name as you see fit.
You may choose to close the file or leave as open. If you close the CSV file and open again, the
formating on the coulumn headers will be removed. This just normal:

3. Import the file to SAP Business One using Data Transfer Workbench
On the DTW window, Click Import>Next
30 On Step 1: Choose Master Data > Next
On Step 2: Choose Add New Data>Next
On Step 3: Choose Business Partners > Business Partner Master Data >Next
On Step 4: Browse for the csv file prepared to add the new business partners >Next
 Just click OK every time you see the following window:

On Step 5: Click Next

On Step 6: Click Cancel Import and Perform Rollback When One orMore Errors Occur
On Step 7: Click Import. Click Finish

4. Go back to SAP Business One, and view the new Business Partners added:
Business Partners> Business Partner Master Data
Type * on the Code field and press enter (make sure you are in Find mode)

You may also use the Last Data Record icon, the Previous Record, the Next Record and the First
Data Record icons to check the business partners imported to SAP.

VIII. Add the following items in SAP using Data Import

Appliance Hub Corporation also provided you a list of items in excel file (refer to the excel file
provided)

a. Go to Administration>Data Import/Export>Data Import>Import from Excel.

b. Choose Items in the Data Type to Import field. Follow the screen shots below:

c. Arrange the data provided by ADV. Follow the arrangement you set earlier in SAP Business One -
Import from Excel window.

Column D - PRICE LIST CODE COLUMN:

The 1 (one) in the Price List Code column was taken from the query preview:
Tools > Queries > Query Generator > Click Execute
Click the Edit Mode (Pencil Icon) then enter the query SELECT * form OPLN, then click Execute

RESULT:

d. Save the excel file as text file - save as Text (Tab Delimited) or paste the encoded data in note
pad. Use any file name as you see fit.
e. Import the text file to SAP Business One (Make sure to close the excel file when importing).
To import, go back to SAP then Click OK on the Import from Excel window

f. Check the imported data in Inventory>Item Master Data

Use the Last Data Record, Previous Data Record, First Data Record and the Next Data Record
icons to navigate through he Item Master Data.

USER ACCOUNTS AND AUTHORIZATION

I. Set the Password Policy

A. Choose Administration Setup General Security Password Administration.

B. Enter the following fields:

Field Values
Security Level Select Custom.
Expiry After 60 days 31
Minimum Length 4
Minimum Number of Uppercase Characters 0 Leave all other settings 0
Password Example Choose Generate
C. Choose Update.
 II. Define Departments and User Accounts
A. Define Departments
1. Choose Administration Setup General Users.
In the Department field, choose Define New from the dropdown list.
2. Enter the following departments:
Field Values Then Choose
Department Accounting Update
Department Warehouse Update
Department Sales Update
Department Purchasing Update
3. Choose OK.

B. Define User Accounts

1. Choose Administration Setup General Users
2. Enter the following users for:
Field Name or Data Class Values
User Code Charm
User Name Charm Sael
Superuser
Department General
Password Choose the browse button to the right.
Enter 1234 as the password and confirm the password.
Uncheck Change Password at Next Logon
3. Choose Add.

4. Enter information for the following: Use the same password - 1234.
Field Name Values
User Code Happy Jaimie Romer
User Name Happy Roque Jaimie Tan Romer Rulida
Department Sales Sales Purchasing

IV. Define General Authorizations.

Note: General authorizations require careful planning with the client.

A. Choose Administration System Initialization Authorizations General Authorizations.

Note: Charm Sael is set as a superuser so will receive Full Authorization to all functionality.

B. Define General Authorizations for Happy (Sales Manager).

1. Choose Happy from the list on the left. Enter the following values:
Subject Authorization
General Full Authorization
General > Print Layout Designer No Authorization
General > Query Print Layout No Authorization
General > Document Settings No Authorization
General > Access to Confidential No Authorization
Accounts
General > Period Status: Closing No Authorization
32 Period
Administration >System Initialization Full Authorization
> Numbering Series
Sales Opportunities Full Authorization
Sales A/R Full Authorization
 Business Partners Full Authorization
Business Partners > Internal No Authorization
Reconciliations Note: the authorization for Business
Partners changes to Various
Authorizations
Inventory Full Authorization
Reports Full Authorization
2. Enter 20% as the maximum discount for sales. Choose Update.
C. Define General Authorizations for Jaimie (Sales).

1. Hold your mouse over Happys name until a rectangle appears around the name.
2. Move the rectangle to Jaimies name in the list. Release your mouse over Jaimies
name.
3. Choose Copy in the System Message window.
4. Jaimie now has the same general authorizations as Happy. However, Jaimie should not
have access to all of the functions. Enter the following values:
Subject Authorization
Inventory Read Only
Sales Opportunities No Authorization
5. Enter 10% as the maximum discount for sales. Choose Update.
D. Define General Authorizations for Welly (Sales).

1. Hold your mouse over Jaimies name until a rectangle appears around the name.
2. Move the rectangle to Welly's name in the list. Release your mouse over Wellys name.
3. Choose Copy in the System Message window.
4. Welly now has the same general authorizations as Jaimie. However, make the
following adjustments:
Subject Authorization
Inventory No Authorization
Sales Opportunities Full Authorization
5. Enter 10% as the maximum discount for sales. Choose Update.
E. Define General Authorizations for Romer (Purchasing Personnel).

3. Choose Romer from the list on the left. Enter the following values:
Subject Authorization
General Full Authorization
General > Print Layout Designer No Authorization
General > Query Print Layout No Authorization
General > Document Settings No Authorization
General > Access to Confidential No Authorization
Accounts
General > Period Status: Closing No Authorization
Period
Administration >System Initialization Full Authorization
> Numbering Series
Purchasing Full Authorization
Business Partners Full Authorization
Business Partners > Internal No Authorization
Reconciliations Note: the authorization for Business 33
Partners changes to Various
Authorizations
Inventory Full Authorization
Reports Full Authorization
4. Choose Update.
 TEST THE DATABASE USING THE MANAGERS LOG IN

PURCHASING PROCESS AND PAYMENT:

Create a Purchase Order
Purchasing A/P > Purchase Order
Vendor: V1000
Item: G2000
Quantity: 1

Copy the Purchase Order to Goods Receipts PO. Add the Goods Receipts PO.
After Adding, choose the last data record then check the link arrow on the Journal Entry field.

Copy the Goods Receipts PO to A/P Invoice. Add the A/P Invoice and Check the automatic
journal entry created:

Generate the Relationship Map:

SALES:
Create a Sales Order: Sales A/R > Sales Order
Customer Code: C1000
Delivery Date: Today
Item Code: G2000
Quantity: 1

Copy the Sales Order to Delivery. Add the Delivery

After Adding, choose the last data record then check the Journal Entry:

Copy the Goods Receipts PO to A/R Invoice. Add the A/R Invoice and Check the automatic
journal entry created.

Generate the Relationship Map:

Alerts & Approvals

I. Set an Alert when the Gross Profit in a Sales Order document, processed by Happy falls below
30%
The company owner wants to be notified when a sales order is issued with the gross profit falling below
30%. This uses one of the preconfigured alerts supplied with the system. Use the new database.

A. Choose Administration Alerts Management.

The window opens in Find mode. Type * in the Name field and choose Find. Select the Deviation from
% of Gross Profit alert. In the Conditions tab, type 30 as the Profit Percentage.
B. Apply to Sales Orders using the Documents tab.
C. Select the Int. checkbox for the user Manager.
D. Select the Active checkbox.
E. Choose Update.
F. Start another instance of SAP Business One (all in all, 2 SAP Business One are open) and login
34 as Happy.
Note: Keep both SAP Business One client windows open.

G. Create a sales order, use any customer and any item. Check the Gross Profit then change the
Unit Price so that the Gross Profit falls below 30%.
 You can check the gross profit by opening the Gross Profit window from the sales order. Base the
Gross Profit on the Item Cost.

H. Enter Todays Delivery Date then save the sales order.

I. Switch to the user you selected to receive the alert the manager account. This may take a few
minutes.
If the alert does not display, choose Administration > Choose Company > Change User then re-log in
using the manager account.
User ID: manager Password: 1234

NOTE: The manager may send a message to Happy. Click Reply and enter a message.
Remove tick marks under E-mail, SMS and Fax check boxes.
Switch back to Happys window. The managers message should have been sent. If not, re-log in to refresh
the system.

Happy may also reply to the managers message. The message will be displayed also on the managers
window.

Switch back to the managers window to see Happys reply. .Do not close Happys SAP Business One
instance.
Deactivate the alert, or else, it will be displayed every now and then.
Choose Administration > Alerts Management
Type * in the Name field then press enter > Choose Deviation from % of Gross Profit

Remove the Active checkbox then click Update.

II. Approval Procedures

A. Activate approval procedures in the system
1. Using the managers log-in, Choose Administration System Initialization General Settings.
2. Choose the BP tab.
3. Select the checkbox Activate Approval Procedures.
4. Choose OK.

B. Define an approval procedure using a predefined condition.

If the discount offered is > 15%, the system should block the order. The manager must approve the order
before it can be issued.
Note: The maximum discount for sales orders is set in the general authorization window.

1. Create an approval stage for manager approval.

a. Choose Administration Approval Procedures Approval Stages.
Field Name or Data Type Values
Stage Name Owner
Stage Description Owner
No. of Approvals and Rejections Required 1
Authorizer manager
Department General
b. Choose Add.

2. Create an approval template.

a. Choose Administration Approval Procedures Approval Templates.
Field Name or Data Type Values 35
Name Discount 15percent
Description Discount over 15%
Originator tab: Department Select Sales
Originator tab: User Happy Roque
Documents tab Select the Sales Order checkbox
 Stages tab: Stage Name Owner
b. Choose the Terms tab.
c. Select the When The Following Applies.
d. Choose the predefined term for Discount %.
Field Name or Data Values
Type
Ratio Greater than
Value 15
e. Choose Add.

C. Test the approval process.

1. Switch to the session you logged in as Happy and create a Sales Order with more than 15% discount.
Use Todays Date as the delivery date.
Click Add. Click OK on the Item Availability Check window.
Click Again on Add

2. Enter a suitable message in the Remarks field for the approval then click OK.
Note: The sales order is saved as a draft.

3. Switch to the user managersession. You will see an alert. Open the approval request and approve it.
Note: the approval alert may not display for a few minutes or re-log in to SAP.

4. Approve the document.

5. Switch to the user Happy session and open the draft sales order which was approved.
6. You can now add the sales order to the system.

Choose the last Data Record:

36