SAP Business One - Purchasing Process

Purchasing is not just about ordering and paying for pencils and paper clips. Rather, purchasing is the process of making sure that a steady stream of required materials is on the way to your company when and where you need them. As a fully integrated, end-to-end business management application, SAP Business One helps you run the purchasing process, starting with the purchase quotation and purchase order and continuing with the rest of the purchasing documents. SAP Business One automatically captures information at each step so you always know what’s on hand in inventory as well as the up-to-the-minute financial state of your business. The real-time view helps you identify potential shortages before they happen. Precise historical information keeps track of which vendors come through for you consistently. 

In this demo, we focus on the basic steps involved in executing a purchase order (PO) in SAP Business One and the other purchasing documents that flow from it. 

• Purchase Order
  The purchase order (PO) is the document you provide to the vendor specifying the items or services you want to purchase, including agreed-to quantities and prices. 
• Goods Receipt PO
  The goods receipt PO is the document that denotes the delivery of goods from a  vendor to a company. It is used to update the inventory quantities and values. 
• Goods Return
  The goods return document reverses a goods receipt PO after it has been posted. It is used whenever part or all of the goods received are returned to the vendor. 
• Landed Costs
  The landed costs document is used when additional costs are involved in the purchase of items, usually from abroad, such as tariffs, brokers’ fees, and so on. 
• A/P Invoice
  The A/P invoice is the document into which accounts payable enters the vendor’s invoice information and sets up the payment. 
• A/P Credit Memo
  The A/P credit memo is used to reverse the 
• A/P invoice - partially or in its entirety - after it has been posted. It credits the company for the goods returned to the vendor. 
• Optional documents in the process include:
  • Purchase Request The purchase request is an internal document that is submitted by an employee including a request to purchase item or service. 
  • Purchase Blanket Agreement The purchase blanket agreement is a commitment from your company to purchase items or monetary value from your vendor over a specified period of time. 
  • Purchase Quotation The purchase quotation is the document you send to your vendors, so they can provide you with an offer for requested items or services, including prices, quantities and delivery dates. 
  • A/P Down Payment Invoice The A/P Down Payment Invoice is used in a prepayment scenario. The amount is recorded to a predefined asset account, and moved to the expenses or the inventory account once the down payment is applied to a standard A/P invoice. This document does not affect inventory 
  • A/P Reserve Invoice The A/P reserve invoice is similar to a PO but it includes a request for payment. It is used when the vendor bills you before delivering an item or service. 

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