tb1100 – case studies - sap business one easy

TB1100 – Case Studies SAP Business One 10.0, version for SAP HANA SAP Business One 10.0 PUBLIC

Table of Content: Case Study - Accounting for Sales and Purchasing……………………………………………….…….3 Case Study - Working with Currencies……………………………………………………………….….21 Case Study - Journal Entries and Reconciliations…………………………………………….………..42 Case Study - Handling Payments………………………………………………………………………...64 Case Study - Financial Reports……………………………………………………………...…………...90 Case Study - Debt Management and Bank Reconciliation……………………………………….……103 Case Study - Fixed Assets……………..……………….……………………..…………………………134 Case Study - Cost Accounting……………………..………………………………...…………………..155

TB1100 – CASE STUDIES PUBLIC

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Case Study: Accounting for Sales and Purchasing SAP Business One 10.0, version for SAP HANA PUBLIC



INTRODUCTION

In this case study, you will perform the following tasks:

• Change the G/L account determination

• Create A/P and A/R documents to see the influence on the inventory and financials applications

PREREQUISITE:

1. Use the demo database for SAP Business One 10.0, version for SAP HANA or SAP Business One 10.0

2. Credentials: User code: manager; Initial Password: manager

Important guideline: Use the manager user while working on the application.

3. Make sure that the setting Enable Advanced G/L Account Determination is activated in the

Company Details under Administration -> System Initialization -> Company Details.



TASK 1

OEC Computers would like to analyze the sales revenue coming from high-tech customers. Accordingly,

they want to have the revenue for this customer group posted to a separate account.

The financial accountant at OEC Computers wonders how to make sure the revenue from the high-tech

customer group is automatically registered to a separate account.

Define a dedicated sales revenue account for high-tech customers.

Note:

In the G/L Accounts Determination window, use the link arrow to go to the default revenue account. On the

Chart of Accounts window, choose one of the domestic sales revenue accounts with NO transactions (for

example, 400040) and change its name to Sales Revenue High-Tech.

Set up an account determination rule for the High-Tech customer group with the High-Tech revenue

account.

Note:

First, you need to make sure that the Business Partner Group criterion is active on the Determination Criteria

– Inventory window.

Then define the account determination rule. On the Advanced G/L Account Determination Rules – Inventory

window, define a rule for the High-Tech business partner group and include the Sales Revenue High-Tech

account as the revenue account.

TASK 2

OEC Computers has just signed a contract with a big high-tech company, 334 Technologies.

Create a customer master record for this company and attach it to the High Tech customer group

and to the Regular Sales Price List.

TASK 3

OEC Computers purchases new items to sell to their new customer.

C00998 – Laptop. Regular Sales Price List: 650

C00999 – Tablet. Regular Sales Price List: 300

Both items belong to the Storage item group.

Define the two new items.



The purchasing manager buys the following new items from vendor V20000:

C00998 with a quantity of 100 and a unit price of 550

C00999 with a quantity of 100 and a unit price of 250

Create the relevant purchasing documents, so you have the items in stock and invoiced.

TASK 4

After creating the purchasing documents, the financial accountant wants to check the transactions and costs,

to make sure everything is correct in the system.

Check the created journal entries and the item costs.

TASK 5

The purchasing manager has to order more of the following item:

C00999 with a quantity of 100.

She orders this item from vendor V23000 with a unit price of 150.

Create the relevant purchasing document, so you have the item in stock and invoiced.

The financial accountant wants to check the current item costs.

Check the new item costs. Why have they changed?

TASK 6

Customer 334 Technologies wants to purchase the following items:

C00998 with a quantity of 10

C00999 with a quantity of 15

Create the sales invoice.

The financial accountant checks the journal entry, the separate revenue account, and the customer balance.

Check the revenue account in the journal entry.

What kind of costs does the system use in the journal entry?


Case Study Solution: Accounting for Sales and Purchasing SAP Business One 10.0, version for SAP HANA PUBLIC



Suggested solutions for Accounting for Sales and Purchasing Case Study.

Important note: When checking your work against the screenshots provided here, please compare only with

the fields mentioned in the exercise, because your database may contain slightly different data or

configuration.

Tip: You can use the Look Up Menus function in SAP HANA or the Search function in SQL to find the

relevant paths.

TASK 1

Define a dedicated sales revenue account for high-tech customers.



Set up an account determination rule for the High-Tech customer group with the High-Tech revenue

account.

To make sure that the Business Partner Group criterion is active, open the Determination Criteria – Inventory

window:

From the G/L Accounts Determination window, choose the Advanced button to open the Advanced G/L

Account Determination Rules – Inventory window. From this window, choose the Determination Criteria –

Inventory button and check the Business Partner Group criterion.

To define an account determination rule for the High-Tech customer group, choose the Advanced button

from the G/L Accounts Determination window – Sales tab.



On the Advanced G/L Account Determination Rules – Inventory window, define a rule for the High-Tech

business partner group with the Sales Revenue High-Tech account.

Add the new rule in the system. Close and reopen the G/L Account Determination window to make the

defined rules visible.



TASK 2

Create a customer master record for this company and assign it to the High-Tech customer group

and the Regular Sales Price List.



TASK 3

Define the two new items.

Create the relevant purchasing documents, so you have the items on stock and invoiced.

To start the purchasing process, create a purchase order and copy it to the Goods Receipt PO and then to

the A/P Invoice.

You can also do all this in one step by creating the A/P Invoice directly.



TASK 4

Check the created journal entries and the item costs.

To open the related journal entry, select the A/P Invoice with the drill-down arrow in the Accounting tab.

INFORMATION: The related journal entry can also be opened with the Journal Entry Preview… icon

…or by using the Relationship Map.



In the journal entry, you see that the system posted the Raw Materials with the net price and the total (Raw

Material + Tax) to the vendor account.

In addition, in the Item Master Data, the system added the posted quantity of the items In Stock and set the

item costs in Warehouse 01. For the Item Costs, the system took the unit price (in this case, no discount was

provided by the vendor) of the A/P Invoice.

INFORMATION: The item costs are set for each warehouse because the initial setting for this company,

under Company Details -> Basic Initialization, is “Manage Item Cost per Warehouse”.



Item C00999:



TASK 5

Create the relevant purchasing document to have the item on stock and invoiced.

Create a new A/P Invoice.

Check the new item costs. Why have they changed?

The item costs have changed because the Item Valuation Method in this system is Moving Average.

The price of the items in the second A/P invoice was lower than in the first A/P invoice. For this reason, the

system recalculates the item costs:

1. A/P Invoice

25000 / 100 pieces = 250 each

2. A/P Invoice

15000 / 100 pieces = 150 each

➔ The system calculates:

40000 / 200 = 200 each or (25000 + 15000) / (100 + 100) = 200 each



TASK 6

Create the sales invoice for 334 Technologies.



Check the revenue account in the journal entry.

What kind of costs does the system use in the journal entry?

Enter the journal entry using this icon and locate the Sales Revenue High-Tech account. This is the

account chosen in the G/L account determination rule.

The system calculated the item costs as 8500. This value comes from:

C00998 cost value: 550 X 10 pieces = 5500

C00999 cost value: 200 X 15 pieces = 3000

➔ Total 8500


Case Study: Working with Currencies SAP Business One 10.0 (version for SAP HANA) PUBLIC



INTRODUCTION


• Create a business partner entry for a new foreign currency customer

• Update the Regular Sales price list with foreign currency prices for selected items

• Create a sales order

• Create an invoice for a foreign currency customer

PREREQUISITE:

1. Use the demo database for SAP Business One 10.0 (version for SAP HANA) or SAP Business One 10.0 2. Credentials – username: manager; initial password: manager TASK 1

The company OEC Computers is located in the UK, but some of its customers are located overseas. Sales

manager Jayson Butler has just secured a deal with a new foreign currency customer called Pivotal

Solutions, which is based in the US. Jayson sets a meeting with the accountant to get some help setting up

a new business partner master data record for their new customer.

Create a new business partner master data record for a foreign currency customer.

Header:

Code Name Group Currency

C80000 Pivotal Solutions Distributors US Dollar

Addresses tab (Bill to):

Bill to Address ID Street / PO Box City

Zip Code Country

Head Office 8th Avenue New York 10021 USA

Addresses tab (Ship to):

Ship to Address ID Street / PO Box City

Zip Code Country

Ship To 1st Avenue New York 10021 USA



Payment Terms:

Price List

Regular Sales Price

Accounting – General tab:

Accounts Receivable

140030

Accounting – Tax tab:

Tax Status Tax Group

Exempt X0

Let us assume OEC Computers has another customer, ABC Solutions, which has two locations: the US

and Mexico.

If the customer wants to be invoiced in different currencies depending on the destination of the

delivery, how would you set up the business partner master data currency?

TASK 2

OEC Computers defines specific item prices in USD for the following items. Jayson updates the Regular

Sales Price list.

Item No. Additional Currency 1 - Unit Price

A00001 350 USD

A00002 180 USD

A00003 265 USD

Update the relevant price list.

Add any additional form details if required.

Tip: When entering the price for each item in the price list, you need to type the currency sign USD.



TASK 3

Pivotal Solutions has placed its first sales order with OEC Computers for items:

Item No. Quantity

A00001 150

A00002 50

B10000 10

Create a sales order.

The US dollar exchange rate is currently 1.24.

TASK 4

An invoice is then created based on the corresponding sales order for the goods being shipped.

Create an invoice based on the sales order.

What will be the currency of the total amount of the A/R invoice?

What will be the currency of the automatic journal entry created by the A/R invoice?

TASK 5

OEC Computers receives payments in different foreign currencies from its customers overseas. The

company’s bank manages their account in the local currency.

How should OEC Computers define the G/L account representing their company bank account in

order to receive payments in different currencies?


Case Study Solution: Working with Currencies SAP Business One 10.0 (version for SAP HANA) PUBLIC



Suggested solutions for the Working with Currencies case study

Important note: when checking your work against the screenshots provided here, please compare only to

the fields mentioned in the exercise because your database may contain slightly different data or

configuration.

Tip: You can use the Look Up Menus function in SAP HANA or the search function in SQL to find the

relevant paths.

TASK 1

Create a new business partner master data record for a foreign currency customer.

Open the Business Partner Master Data window using the search function or by navigating to Business

Partners -> Business Partner Master Data.

In Add mode, enter the relevant data:

Header and General tab:



INFORMATION: Each Business Partner Master Data record and each G/L Account needs to have an

account currency defined. The system sets the Local Currency as the default currency for all Business

Partner Master Data. In this example, US customers will be defined in USD.

You can define a default currency for new G/L accounts using the Default Account Currency field on the

Basic Initialization tab (under the Company Details window in the System Initialization).

Addresses tab (Bill to):

When you enter a different Country than the default (United Kingdom), the following warning message

appears. Choose Yes.

INFORMATION: This will ensure that the Accounts Receivable account is defined as the Trade Debtors

(foreign) account and not the Trade Debtors (domestic) account for local customers.



Addresses tab (Ship to):

Payment Terms tab:



Accounting - General tab:

INFORMATION: Once a U.S. address is defined, the Accounts Receivable field is updated with the Trade

Debtors (foreign) account.

Accounting - Tax tab:



Add the Business Partner Master Data to the system.

If the customer wants to be invoiced in different currencies depending on the destination of the

delivery, how would you set up the business partner master data currency?

The Currency field in the business partner master data should be set to All Currencies. Then, each time the

user issues a marketing document for this business partner (such as a delivery or an A/R invoice), he or she

can choose a different currency as the BP Currency.



TASK 2

Update the relevant price list.

Open the Price Lists window using the search function or by navigating to Inventory -> Price Lists -> Price

Lists. Double-click the row number of the Regular Sales Price list (this price list was defined in the Business

Partner Master Data for Pivotal Solutions).

Add any additional form details if required.

The Regular Price List window appears, but there is no option to enter a foreign currency unit price for these

items.

If missing you can add the additional fields to the window by selecting the Form Settings icon

INFORMATION: In the sales price list at OEC Computers, the primary currency remains the default;

therefore, British pounds are used in documents for local customers.



Enter the USD Unit Price for the relevant items and update the price list to save your changes.

INFORMATION: It is possible to set an item price in up to three different currencies – the primary currency

and two additional currencies – in each price list. This is useful when you need to define exact pricing for

different countries instead of using exchange rates.



TASK 3

Create a sales order.

Open the Sales Order and enter the relevant customer and item data for the order placed by Pivotal

Solutions.

Once you have selected BP Code C80000, the Exchange Rates and Indexes window opens automatically

due to the customer’s definition as a foreign currency customer.

Define the specified exchange rate for US Dollar for the current date.



INFORMATION: In the header, you will see that the BP Currency is USD and the exchange rate is 1.24.

However, the first two items in the order have a Unit Price in USD, while the last item is in GBP. The last item

does not have a USD unit price defined in the sales price list, so the system has calculated the total amount

for the row in USD based on the current exchange rate. The exchange rate used is based on the posting

date of the document.



TASK 4

Create an invoice based on the sales order.

Navigate back to the Sales Order and select Copy To -> A/R Invoice.

Once you create the A/R Invoice by choosing Add, you are asked to select batch numbers for the B10000

Printer Label items.



Choose Auto Select, then Update and OK.

Save the A/R Invoice.

• In case you receive a credit limit system messege, choose yes to confirm.

What will be the currency of total amount of the A/R invoice?

The A/R Invoice currency is in US dollars. Navigate to the Accounting tab and drill down to Journal Remark

to review the Journal Entry. You can also right-click the document and select Journal Entry.



What will be the currency of the automatic journal entry created by the A/R invoice?

For automatic Journal Entries, the system converts the total invoice amount in foreign currency into local

currency and posts both values in parallel. The Journal Entry shows both Debit and Credit amounts in foreign

and local currency.



TASK 5

How should OEC Computers define the G/L account representing their company bank account in

order to receive payments in different currencies?

Open the Chart of Accounts window using the search function or by navigating to Financials -> Chart of

Accounts.

In the Name field, enter *bank. Then choose Find.



Choose the bank account from the list of accounts.

In the Currency field, ensure that the bank account is set to All Currencies. Users can then enter transactions

in any foreign currency that has been set up for the company, as well as in the local currency.

The balance of this account and the bank reconciliations will be managed in the local currency.

INFORMATION: You can change an account currency to All Currencies at any point, but once you update

the account, you will not be able to change it back to a local or specific foreign currency.


Case Study: Journal Entries and Reconciliations SAP Business One 10.0 (version for SAP HANA) PUBLIC



INTRODUCTION


• Create a journal entry

• Create a posting template

• Create a recurring journal entry

• Reverse a journal entry

• Create a journal voucher

• View reconciled transactions

• Create user reconciliations

PREREQUISITE:


2. Credentials: User code: manager; Initial Password: manager.

3. Make sure the payment terms for business partner C30000 are set to Cash Basic in the business partner

master data:



TASK 1

OEC Computers started running SAP Business One®, and has already posted documents such as invoices

and payments in the system. The company is now familiar with the journal entries that are automatically

created with these documents.

Maria, the accountant, wants to enter a manual journal entry for a bonus payout. The bonus amount is 5000

and is paid directly from the bank account. The offset account in this journal entry is a salary/ payroll

account. The bank reference for this transaction is 4414.

In the Chart of Accounts, locate a bank account from the Asset drawer and a salary/ payroll account

from the Liabilities drawer.

Create a suitable journal entry for the bonus payout.

TASK 2

Two of OEC’s customers have merged into one company. Maria needs to transfer the balance of customer

C30000 to C4000.

Create a suitable journal entry for the balance transfer.

TASK 3

Every month, Maria creates a journal entry for a rental payout of 10,000. In this transaction, the rental

expense account (620000) is debited, and the bank account (161000) is credited.

• Create a recurring posting for the rental journal entry.

• What happens on the execution day?

TASK 4

OEC Computers wants to donate to 4 charity organizations each month, depending on the monthly profit.

The donation amount should be divided equally between the 4 organizations.

Add 4 accounts at level 5 in the liabilities drawer as follows:



Code Name

206101 Charity1

206102 Charity2

206103 Charity3

206104 Charity4

• Create a posting template where each charity organization receives an equal share of the

profit. You can use expense account 655030 in the credit side.

• The amount for donation this month is 10,000. Create a journal entry using the template you

created.

TASK 5

The amount entered in the donation transaction was incorrect.

How can Maria amend the mistake?

.

TASK 6

Once a month, Maria enters a salary journal entry for all employees. This entry contains more than 50 rows.

She would like to be able to save a journal entry while working on it and go back to the journal entry to add

more rows at a later stage.

How can Maria save a draft of her journal entry?

TASK 7

Every day, Maria receives payments from customers. When she creates the incoming payments, she

chooses the related invoices. Maria can see that the customer is balanced, but she wants to be sure that the

invoice and incoming payment are reconciled.

Show Maria where she can view the reconciliation made between the invoices and payments.



TASK 8

An invoice was issued to one of the customers.

Create an invoice in the amount of 150 for any customer.

The customer only paid 100.

Create an incoming payment for a partial amount of only 100.

The customer refuses to pay the balance due. Maria decides to move the amount to the bad debts expenses

account (650030), which allows her to close the open balance.

• Create a suitable journal entry.

• Look for the reconciliation you made in the Manage Previous Internal Reconciliations window

• How do you know this is a user reconciliation?

TASK 9 (CHALLENGE)

When OEC Computers started running SAP Business One on January 1, open invoices were transferred

from the legacy system as opening balance journal entries. There is one journal entry for each invoice.

These opening balances were created only after closing the previous year on March 15.

However, the payments for these invoices were entered in SAP Business One starting from January 1, and

were therefore not reconciled with any invoice or journal entry.

What type of user reconciliation method would you suggest Maria use in order to reconcile such a

large quantity of opening balances and associated payments?


Case Study Solution: Journal Entry and Reconciliations SAP Business One 10.0, version for SAP HANA PUBLIC



Suggested solutions for the Journal Entry and Reconciliations case study



configuration.


relevant paths.

TASK 1

In the Chart of Accounts, locate a bank account from the Asset drawer and a salary/ payroll account

from the Liabilities drawer.

Search the chart of accounts by the name: bank. Found bank account 161000.

Search the chart of account by the name: salary and found the Salary and Wages Payable account: 207060.

Create a suitable journal entry for the bonus payout.

TASK 2

Create a suitable journal entry for the balance transfer.

First check the balance of business partner C30000.



Note: The amount may be different in your system.

Then create the journal entry:

Use the CTRL+TAB keyboard combination to choose business partners or choose List of Business Partners

from the context menu.



TASK 3

Create a recurring posting for the rental journal entry.`

Set the frequency as shown in the image.

Then enter the General Setting window → Services tab, and ensure that the Display Recurring Postings on

Execution option is enabled.

The transaction will occur on the 10th of every month

Instance 0 means that this entry has not been posted yet. Every month, the instance number increases by 1 once the journal entry is posted.

T The system calculates the next execution run, but it can be changed manually.



What happens on the execution day?

On the 10th of the next month, the recurring postings window will open when Maria enters SAP Business

One.

She can now post all the recommended transactions in one go.



TASK 4

Add 4 accounts at level 5 in the liabilities drawer as follows:

Code Name

206101 Charity1

206102 Charity2

206103 Charity3

206104 Charity4

For each account:

1. Choose the desired header for the account to set its location

2. Switch to Add mode

3. Enter account details

4. Choose the Add button

Create a posting template, where each charity organization receives an equal share of the profit. You

can use expense account 655030 in the credit side.

In Financials → Posting Templates:



The amount to be donated this month is 10,000. Create a journal entry using the template you

created.



In the Credit column, enter 10,000 instead of '100%'. Once you do that, all other row amounts are

automatically updated, according to the percentage indicated. In this case, each charity account will be

credited with 2500.

Finally, add the journal entry.

T First choose the Percentage template type

T Then choose the relevant template code

T Once the template code has been chosen, the template is copied to the journal entry



TASK 5

How can Maria amend the mistake?

A journal entry cannot be amended after it has been posted. Instead, Maria can only reverse the entry, and

create a new one.

Go to the original journal entry, and choose Cancel from the context menu.

Choose Yes.

The system automatically creates another journal entry that shows the same amounts, but with a negative sign. Add the journal entry.



INFORMATION: According to the defined settings, a reverse transaction can be created for the opposite

sides of the reversed entry (credit<->debit).

TASK 6

How can Maria save a draft of her journal entry?

Maria can create a Journal Voucher.

Financials → Journal Vouchers



Enter data and choose Add to voucher

.



To re-enter the voucher, double-click the voucher row.

Remember to update the window after every update.

Once you have entered all your information, choose the Post Voucher button to submit the voucher as a

regular journal entry.

TASK 7

Show Maria where she can view the reconciliation made between the invoices and payments.

Business Partners → Internal Reconciliations → Manage Previous Internal Reconciliations

The voucher is added .

Remember to update .

Choose to view business partner (BP) reconciliations

.

You can choose a specific customer

.



The upper table shows the list of reconciliations according to the

defined selection criteria .

Reconciliation 2230 was generated manually. The reconciliation comprises an invoice and a payment

.



TASK 8

Create an invoice in the amount of 150 for any customer.

Create an incoming payment for a partial amount of only 100.

In the Payment Means window choose Bank Transfer tab, enter a bank account, a transfer date, and enter the total amount. Add the incoming payment.

The invoice amount

Change to the actual payment of the invoice

The invoice amount left to pay

Enter the payment means

to complete the action .



Create a suitable journal entry.

Reconcile the invoice balance with the journal entry that you just added.



Choose the rows to reconcile

The balance due of both transactions is zeroed

Choose Reconcile to create the reconciliation



Find the reconciliation you made in the Manage Previous Internal Reconciliations window

How do you know this is a user reconciliation?

The reconciliation type = Manual. This means this is a user reconciliation.

TASK 9 (CHALLENGE)

What type of user reconciliation method would you suggest Maria use in order to reconcile such a

large quantity of opening balances and associated payments?

Maria should use the automatic user reconciliation method.

The system can easily match opening balances and payments when the amounts are similar or if they have

the same reference number.

Alternatively, she could use the semi-automatic user reconciliation method to see recommended

reconciliations before creating them.


Case Study: Handling Payments SAP Business One 10.0 (version for SAP HANA) PUBLIC



INTRODUCTION

In this case study, you will:

• Create A/P and A/R invoices

• Create incoming and outgoing payments based and not based on invoices

• Create a partial payment

• Cancel a payment

• Create an Invoice + Payment document

PREREQUISITE:

1. Use the demo database for SAP Business One 10.0 (version for SAP HANA) or SAP Business One 10.0

2. Credentials – username: manager; initial password: manager

3. Go to Business Partners → Business Partner Master Data and find customer C20000.

In the master data, go to the Payment Terms tab → Payment Terms link arrow.

Make sure that no cash discount is defined.

TASK 1

OEC Computers usually pays its vendors by means of bank transfers. One of the vendors, V70000, has sent

an invoice for 20 printers that were sold to OEC Computers.

Add a suitable invoice. What is the due date of the invoice? Why is that? Maria, the accountant, would like to pay the vendor.



Enter the Outgoing Payment window and locate the invoice you added. How many open invoices do you see?

Do you see asterisks in some of the records? What do the asterisks indicate? Create a full payment for the invoice. What happened to the vendor’s balance?

TASK 2

Maria also handles payments received from customers.

Customer C20000 has paid 5,000 in advance for long-term technician service and support. This service has

not yet been invoiced.

Create a suitable payment using a bank transfer.

TASK 3

An invoice was issued to customer C20000 in the full amount (20,000) for technician service and support.

The customer has paid the remaining balance of 15,000.

Create a service invoice (choose any income account). The invoice total should be 20000. Create an incoming payment. How can you easily deduct the 5,000 payment you added before from

the open invoice balance? HINT: In the incoming payment, choose the invoice and the existing payment to fully close and reconcile the invoice.

TASK 4

Another invoice was issued to customer C20000 for an order of 15 items (code: C00008). The customer has only transferred a partial payment of 900. Create the invoice and payment.

TASK 5

The next day, Maria goes over the bank statement and notices that customer C20000 has paid the same invoice again (the invoice from task 4), but this time in full. Maria calls the customer contact and finds out that the partial payment (task 4) was transferred by mistake. She decides to transfer the partial payment back to the customer and cancel the payment she added for it. Cancel the payment you created in task 4. Go back to the incoming payment you just canceled. How can you tell the payment was canceled? Enter a new incoming payment and locate the relevant invoice. What has happened to the balance

due for the invoice? Create the payment for the full invoice amount



TASK 6 – CHALLENGE

OEC Computers also runs a store where it sells computer equipment. Some customers pay in cash, which the sales person keeps in the cash register. He then takes the money to the bank once a week to deposit it in the company's bank account.

Open an Invoice+Payment document for customer C99999 (one-time customer). Choose any item. Make sure a price exists. Open the Payment Means window and enter the relevant data on the Cash tab. Use the petty cash

account code 160000. Add the Invoice+Payment document. What would have happened if you had tried to add the Invoice+Payment document without entering a

payment means? Create a deposit for the entire balance of the petty cash account.


Case Study Solution: Handling Payments SAP Business One 10.0 (version for SAP HANA) PUBLIC



Suggested solutions for the Handling Payment case study



configuration.


relevant paths.

Important note: Some of the details shown in the images may vary among training systems.

TASK 1

• Add a suitable invoice.

• What is the due date of the invoice? Why is that?

The invoice due date derives from the payment method indicated on

the Accounting tab.



06/04 + 30 days = 06/05

NOTE: Depending on the holidays defined, the due date may be more than 30 days later if the original due date would have fallen on a weekend or holiday.

• Enter the Outgoing Payment window and locate the invoice you added. How many open A/P invoices do you see?

• Do you see an asterisk in some of the records? What does the asterisk indicate?

• Create a full payment for the invoice.



The first three invoices in the image are overdue. The due date of the invoice is earlier than the system date

(the current date). The next row has a future due date and therefore is not overdue.

Select in the open A/P invoice the icon (next to the Total Amount Due field) to open the Payment

Means window:

Due dates of the invoices All invoices have 1 installment.

An asterisk indicates the invoice (or the specific installment) is due.



Finally, add the payment:

•

The date of the transfer Copy the full invoice amount by

pressing CTRL+B.

The house bank account



• What happened to the vendor’s balance?

•

The payment (PS) transaction has cleared the invoice (PU) transaction. NOTE: The invoice and payments are also reconciled automatically.

•

Make sure this box is unchecked



TASK 2

• Create a suitable payment using a bank transfer. Open a new Incoming Payment. This time, there is no matching invoice. Enter the Payment Means window and enter 5,000 on the Bank Transfer tab.

Since no invoice has been paid, no reconciliation has occurred.

When you choose the Add button, the system will warn you that the amount will not be reconciled. Since there is no invoice yet, choose Yes to add the payment.

This amount is entered in the Payment Means window.

Indicates that the payment is not based on an invoice



TASK 3

• Create a service invoice (choose any income account). The invoice total should be 20,000.

•

•

•



•

• Create an incoming payment. How can you easily deduct the 5,000 payment you added before from the open invoice balance?

•

•

• •

The advance payment is still open. It is displayed in blue with a minus sign.



From the context menu, choose the option to copy the balance due to update the amount of the invoice with the payment subtracted.

Select the invoice and the advance payment to reconcile

all transactions.



Finally, add the payment. The advance payment no longer appears in the payment matrix.



TASK 4

• Create the invoice and payment.



Add the form.

The customer has only made partial payment.

Change the total payment accordingly.

Then, go to the Payment Means window and press CTRL+B to copy the paid

amount.



TASK 5

• Cancel the payment you created in task 4.

Once you choose Cancel, this message appears explaining that the related invoices will re-open and a reverse transaction will be created:

•

From the context menu, choose Cancel.



• Go back to the incoming payment you just canceled. How can you tell the payment was canceled?

•

• A reverse transaction was created as well:

•

•

The payment is cancelled



• Enter a new incoming payment and locate the relevant invoice. What has happened to the Invoice balance due?

• Create the payment for the full invoice amount.

•

• • In the Payment Means window, enter the entire invoice amount and add the payment.

After cancellation, the balance due is equal to the invoice total.

Enter the payment means and add the payment.



TASK 6 – CHALLENGE

• Open an Invoice+Payment document for customer C99999 (one-time customer).

• Choose any item. Make sure a price exists.

•

• •

• Open the Payment Means window and enter the relevant data on the Cash tab. Use the petty cash

• account code 160000.

• Add the Invoice+Payment document.

•

Enter the payment means by choosing this icon from the toolbar.



Then choose OK and add the payment.

Since this is an Invoice+Payment document, the petty cash account is chosen by default according to the

definition made in the G/L Account Determination window.

Copy the full invoice amount by pressing

CTRL+B.



• What would have happened if you had tried to add the invoice+Payment document without entering a payment means?

Since this is an Invoice+Payment document, the system opens the Payment Means window automatically to allow you to update the necessary information.

• Create a deposit for the entire balance of the petty cash account.

This is the journal entry for the deposit. You can see the amount balance has been transferred from the cash register account (petty cash) to the bank account.

Enter the bank details manually for reference.

The cash register balance Enter the full

balance amount.

Account code of the cash register



NOTE: Different localizations process payments in different ways. In this case study, we have demonstrated one of these methods.


Case Study: Financial Reports

SAP Business One 10.0, Version for SAP HANA

PUBLIC



INTRODUCTION


• Issue a Trial Balance report

• Issue a Profit and Loss report

• Issue a Balance Sheet report

PREREQUISITE:

1. Use the demo database for SAP Business One 10.0, Version for SAP HANA or SAP Business One 9.3

2. Credentials: User Code: manager; Initial Password: manager

TASK 1

OEC Computers hired Vicky as the new accountant. She asks for your support to run financial reports.

The first thing she asks for is a list of all the accounts and business partners’ balances for the current year.

Issue the suitable financial report.

What is the level of accounts displayed in the report? Can you issue a report at the account level?

Vicky tells you the balances of the balance sheet accounts are incorrect.

What else should you define in the Selection Criteria window that affect the balance of the balance

sheet accounts?

Where can Vicky find the business partners’ balances in the report?

TASK 2

A new quarter had started, and Vicky asks for your help to produce a profit and loss report for the past

quarter. In addition, she asks to see the balance of the foreign currency accounts in the account currency.

Issue a suitable profit and loss report.

.



When would you use the option for a quarterly report?

TASK 3

In addition to the profit and loss report, Vicky also asks for your help to issue a balance sheet report.

Issue a balance sheet report for December 31th.

Vicky wants to check that the balance sheet is balanced.

What does Vicky mean by a balanced balance sheet report? How can you easily check whether the

report is balanced?


Case Study Solution: Financial Reports

SAP Business One 10.0 Version for SAP HANA

SAP Business One 10.0

PUBLIC



Suggested solutions for the Financial Reports case study



configuration.


relevant paths.

TASK 1

Issue the suitable financial report

The Trial Balance lists all the accounts and business partners.

In Report → Financials → Financial → Trial Balance

HINT: Another parameter should be set in the selection criteria. Can you guess which one?

Answer: Business partner balance accumulates over the years. To view the balance of the Business

Partners, check the Opening Balance for Period box.

Choose OK to issue the report.

Choose all accounts

Choose all business partners

Enter January 1 as the From date and December

31 as the To date. Alternatively, you may choose todays' date



What is the level of the accounts displayed in the report? Can you issue a report at the account

level?

You can change the level of display according to the account level at your company up to level 10. At OEC

Computers, all active accounts are defined on level 5.

In this case the level is 1.

The levels of accounts in the financial reports refer to the level of the respective account in the Chart

of Accounts.

Choose level 5

Now you can see account balances and not just headers.

Accounts appear in black.



What else should you define in the Selection Criteria window that affects the balance of the balance

sheet accounts and business partners?

Balance accounts and business partners may have balances from

previous years. Therefore you should choose to display the

opening balances from the start of the company activity.

The balances are different now

An OB column was added



Tip: You can drill down from the financial report to the Char of Account by clicking the arrow next to the Account Code



Where can Vicky find the business partners’ balances in the report?

The list of business partners appears at the bottom of the report.

Tip: You can drill down from the financial report to the Business Partner Master Data by clicking the arrow next to the BP code



TASK 2

Issue a suitable profit and loss report.

Enter the date range of the required quarter

Choose to display the foreign currency balance in a second column

An all currencies account may have transactions in different currencies. A line of asterisks means there are

transactions in more than one currency and therefore the foreign

balance cannot be displayed.

This account has a balance in USD



When would you use the option for a quarterly report?

This option divides the report into quarters. For instance, when you choose an interval of a full year, the

report will show 4 quarters. This report format enables easy comparison between the different quarters.



TASK 3

Issue a balance sheet report for December 31.



What does Vicky mean by a balanced balance sheet report? How can you easily check if the report is

balanced?

A balanced balance sheet means that the total Assets = Total Liabilities + Capital and Reserves.

Switch to level 1 to view the report at the

highest level


Case Study: Debt Management and Bank Reconciliation SAP Business One 10.0, version for SAP HANA PUBLIC



INTRODUCTION


• Run the Cash Flow Report

• Run the Customer Receiving Aging Report

• Run the dunning wizard

• Record Bank Statement transaction and use the external reconciliation functionality

PREREQUISITE:



TASK 1

The manager of OEC Computers wants to check the financial situation of the company. Therefore, he

checks the cash flow. He would also like to consider sales orders in the cash flow report.

Set the Payment Terms of Customer C30000to ‘- Cash Basic –‘.

Create a new sales order:

• Customer C30000

• Item A00001, Quantity 10

• Delivery date: today + 10 days

Run the Cash Flow Report.

Which settings should be done by the manager in the Cash Flow selection criteria and in the Cash

Flow window in order to be able to see the sales order that has been just created?

Under which due date is the sales order visible?



TASK 2

The sales employee of OEC Computers agrees on a new payment term with Customer C30000. This new

payment term should be already applied to the sales order from Task 1 above.

Update the sales order from task 1 and apply a new payment term (2P10Net30).

Run the Cash Flow report again and check under which due date the sales order is shown now.

CHALLENGE TASK 3

Although this new payment term gives C30000 some more time for payment you know from historical

payment data that C30000 has an average delay in payment of 10 days. You would like to consider this

average delay in the Cash Flow report.

Which settings have to be done in the Business Partner Master Data of customer C30000 and in the

Cash Flow report selection criteria in order to consider this average payment delay of 10 days?

Make these settings and run the Cash Flow report again.

Under which due date is the sales order now visible?

TASK 4

Create a new AR Invoice for C30000 and copy the Sales Order from task 1 to it. Add the AR Invoice to

the system.

Which report can you use to check the total amount that has been owed by customer C30000?

Run the report and check where you find the AR Invoice that has been just created by you and the

total overdue amount of C30000.



TASK 5

OEC Computers has also started purchasing items from Microchips (C30000).

Open a vendor Business Partner Master Data for Microchips, use code V11100 and name it

V_Microchips.

Connect the customer Microchips (C30000) with the vendor Microchips (V11100).

Create an A/P Invoice for 10 units of item C00010. Use vendor V_Microchips (V11100).

The accountant of OEC Computers wants to check the consolidated balance for the company Microchips

that reflects the open transactions of both vendor and customer.

Generate an Aging report for the customer Microchips(C30000) to show the consolidated balance.

TASK 6

In order to improve the cash flow, OEC Computers decides to follow up on overdue payments more strictly.

Therefore they send reminder letters to customers on a regular basis. Additionally they will charge an

amount of 2 per reminder letter as standard.

Check which dunning term has been assigned to customer C30000.

Change the fee per letter for the dunning term ‘standard’ to ‘2’.

Run the dunning wizard and check in the dunning recommendation report if the letter fee has been

considered.

What should the accountant do if OEC decides to create postings for the letter fee automatically?

TASK 7

The accountant of OEC Computers receives the latest bank statement from the bank. This statement shows

beside other transactions an incoming payment from customer C30000 for the invoice created in Task 4.

Now the accountant records the incoming payment as a new line in the External Bank Statement in SAP

Business One and reconciles it against the incoming payment.



In SAP Business One you have three options for performing external reconciliation: Reconciliation, Manual

Reconciliation, and the Bank Statement Processing. This decision is depending on the company localization.

OEC Computers use the Reconciliation option for performing external reconciliation

The customer submitted a bank transfer directly to OEC Computers bank account to pay for his open

invoice. Create an incoming payment (C30000, based on the AR Invoice created in Task 4).

Create a new line to record the incoming payment information as received from the bank in the

External Bank Statement and reconcile the incoming payment with the External Bank Statement line

by using the Reconcile functionality (Banking -> Bank Statement and External Reconciliation ->

Reconciliation / Option ‘manual’).

After that have a look into the account balance report for the customer C30000 and check if the AR

invoice is no longer listed as unreconciled transaction. Double check also the bank reconciliation by

using the ‘Manage previous External Reconciliations’.


Case Study Solution: Debt Management and Bank Reconciliation SAP Business One 10.0, version for SAP HANA PUBLIC



Suggested solutions for the Cash Management and Bank Reconciliation case study



configuration.


relevant paths.

TASK 1

Set the payment term for customer C30000 to - Cash Basic –.

Create a new sales order: customer C30000, item A00001, quantity of 10, delivery date: 10 days from

today.

Business Partner -> Business Partner Master Data – Payment Terms tab:



Sales -> Sales Order:



Run the Cash Flow report. Which settings should the manager configure in the cash flow selection criteria and the cash flow

window in order to view the sales order he has just created?

Financials -> Financial Report -> Financial -> Cash Flow

In the Cash Flow – Selection Criteria window, check the Add Marketing Documents box and add the sales

order using the Add Document Types button.

Under which due date is the sales order visible?

The sales order should be visible under Security Level - Customer Forecast in the sales order delivery date.



TASK 2

Update the sales order from Task 1 and apply a new payment term (2P10Net30).

Sales -> Sales Order – open the sales order from Task 1 using the Last Data Record icon.

On the Accounting tab, select the payment term 2P10Net30, then update the sales order.

Run the Cash Flow report again and check the due date under which the sales order is now shown.

Financials -> Financial Report -> Financial -> Cash Flow

The sales order should be visible under Security Level - Customer Forecast in the sales order delivery date +

30 days according to the payment term.



TASK 3

Which settings are required in the business partner master data for customer C30000 and the cash

flow report selection criteria in order to account for an average payment delay of 10 days?

Configure these settings and run the cash flow report again. Under which due date is the sales order

now visible?




Financials -> Financial Report -> Financial -> Cash Flow – Cash Flow – Selection Criteria:

Under which due date is the sales order now visible?

The sales order should be visible under the sales order delivery date plus 30 days (based on the payment

term), plus an additional 10 days due to the average delay setting.



TASK 4

Create a new AR invoice for C30000 and copy the sales order from Task 1 into it. Then add the AR

invoice to the system.



Which report can you use to check the total amount that has been owed by customer C30000?

Financials -> Financial Report -> Accounting -> Aging -> Customer Receivables Aging report:

Run the report and check where you find the AR invoice you have just created, along with the total

overdue amount for C30000.

The AR invoice is shown under Future Remit, and the total overdue amount under Balance Due.



TASK 5

Open a vendor Business Partner Master Data for Microchips(C30000), use code V11100 and name it

V_Microchips.

Connect the customer Microchips (C30000) with the vendor Microchips (V11100).

Create an A/P Invoice for 10 units of item C00010. Use vendor V_Microchips (V11100).



Generate an Aging report for the customer Microchips(C30000) to show the consolidated balance.



In order to see the vendor's code and name choose the BP Code and BP Name columns in the Form Settings window.



TASK 6

Check which dunning term has been assigned to customer C30000.

Change the fee per letter to 2 for the dunning term Standard.


In order to change the dunning term, you can drill down from Dunning Term in the business partner master

data to the Dunning Terms – Setup window using the orange arrow or through Administration -> Setup ->

Business Partner -> Dunning Terms.

Enter 2.00 into the Fee Per Letter column and Update the Dunning Term – Setup window.



Run the dunning wizard and check whether the letter fee has been accounted for in the dunning

recommendation report.

Sales -> Dunning Wizard:



Start a Dunning Run:

Select the dunning term Standard:

Add all local business partners (uncheck business partners with foreign BP balance):



Use the standard document parameters:

In the recommendation report, check the Fee column to see whether the letter fee you defined for the

dunning term has been applied correctly:



What should the accountant do if OEC decides to create postings for the letter fee automatically?

In Dunning Terms – Setup, the Automatic Posting option should be activated by selecting one of the

preferred options:

When activating the automatic posting function, G/L accounts for interest and fee postings have to be

defined in the G/L account determination. This can be done in the Automatic Posting window (please see the

screenshot in the next page)



TASK 7

The customer has submitted a bank transfer directly to OEC Computers’ bank account to pay for its

open invoice. Create an incoming payment for C30000, based on the AR invoice created in Task 4.

Banking -> Incoming Payments -> Incoming Payments:

Tip: In order to simplify the process, make sure that the cash discount is 0.00%.

Choose the invoice to pay and enter the payment means.

Tip: Press CTRL+B on your keyboard to copy the amount due and add the payment.

Create a new line to record the incoming payment information received from the bank in the external

bank statement.

In Banking -> Bank Statements and External Reconciliations -> Process External Bank Statement.

Tip: If this menu entry is not visible, make sure that Process External Bank Statement has been made visible

in Form Settings – Main Menu.



Update the external bank statement.

Then, reconcile the incoming payment with the external bank statement line using the Reconciliation

function.

Banking -> Bank Statements and External Reconciliations -> Reconciliation:



After that, have a look at the account balance report for C30000 and check if the AR invoice is no

longer listed as an unreconciled transaction. Double check the bank reconciliation as well using

Manage Previous External Reconciliations.

Business Partner -> Business Partner Master Data:



Banking -> Bank Statements and External Reconciliations -> Manage Previous External Reconciliation:


Case Study: Fixed Assets

SAP Business One 10.0 (version for SAP HANA)

PUBLIC



INTRODUCTION


• Define a fixed assets master data record

• Create a virtual fixed asset

• Activate the fixed asset using A/P invoices

• Execute a depreciation run

• Retire the fixed asset using an A/R invoice

PREREQUISITE:

1. Use the demo database for SAP Business One 10.0 (version for SAP HANA) or SAP Business One 10.0

2. Credentials – username: manager; initial password: manager

TASK 1

OEC Computers purchased a new truck at the beginning of the fiscal year. The company accountant defines

the truck as an Asset Master Data record.

Define a fixed assets master data record as follows:

Asset Master Data Header:

Item Number Description

F00094 Truck

Fixed Asset tab -- > Overview subtab:

Asset Class Code Asset Class Description

MV Motor Vehicles

TASK 2

OEC Computers wants to purchase 10 navigation systems to be installed in all of its company cars. You

need to create a virtual item representing the navigation system. The virtual item option is only available if

you use numbering series for the asset master data.



Define a document numbering series for items.

Note that both types of master data – that is, the fixed asset and items – use the same numbering series

setup.

In the Document Numbering – Setup window, define a series for the items.

Series – Items – Setup:

Name First No. Prefix Suffix No. of Digits

CAR_EQ 600061 CAR EQ 10

Tip:

• To add a new series, choose the Add Row option from the Data menu.

• Make sure you update both the Series – Items – Setup window and the Document Numbering – Setup

window.

Create a virtual item representing the navigation system.

Asset Master Data Header:

Item Number Description Virtual Item Enforce Serial

Numbers

CAR_EQ series Navigation system Check Check

Fixed Asset tab -- > Overview subtab:

Asset Class Code Asset Class Description

MV Motor Vehicles



TASK 3

OEC Computers purchased the truck from the vendor Anthony Smith on 14 of April of the current year for

6,000; no tax was charged.

Purchase the truck using an A/P invoice.

Verify that a Capitalization document was automatically generated and that the Asset Master Data is

activated.

Tip:

• After adding the invoice, browse to it and right-click on the header/ footer area. From the context menu,

choose the Relationship Map… option. Double-click the Capitalization document.

• In the capitalization document, choose the link arrow in the Asset No. field to open the asset master

record. Under the Overview subtab, check the Status field.

TASK 4

At the beginning of the current month, OEC Computers purchased 10 navigation systems to be installed

in its company cars. The vendor was Anthony Smith. Each navigation system cost 110, and no tax was

charged.

Purchase the navigation systems using an A/P invoice.

In the A/P invoice, enter serial numbers for each navigation system purchased through the A/P Invoice row.

Note that the A/P invoice should include one row with a quantity of 10 navigation systems.

Tip: To enter the serial numbers, right-click the invoice footer/ header and choose the Asset Serial Numbers

option. In the Asset Serial Numbers – Setup window, enter the following:

Created Serial

Numbers

9870001

9870002

9870003

9870004



9870005

9870006

9870007

9870008

9870009

9870010

Verify that a Capitalization document was generated and that the system automatically created 10

asset master data records – one for each navigation system.

Also verify that the asset master data records created include the serial number you entered in the

A/P invoice.

TASK 5

At the end of each month, the accountant at OEC Computers executes the depreciation run for the GAAP

area.

Execute the Depreciation Run.

Include all periods from the beginning of the fiscal period up to the present day.

Review the journal entry created by the depreciation run and the depreciation information of the

truck in the Asset Master Data window.

Note that the data is presented according to the selected Depreciation Area and the selected Fiscal Year.



TASK 6

OEC Computers sells the truck.

Define the asset master data record for the truck as a sales item.

The truck is sold to one of the company’s customers, Maxi-Teq, for a price of 2,000; no tax is charged.

Issue an A/R invoice and review the journal entry created by the A/R invoice.

Which document was automatically created in addition to the A/R invoice? review the journal entry

created by this document.

Check the net book value of the asset master data, along with the asset’s status.

Case Study Solution: Fixed Assets SAP Business One 10.0 (version for SAP HANA) PUBLIC



Suggested solutions for the Fixed Assets case study



configuration.


relevant paths.

TASK 1

Define a fixed assets master data record.



INFORMATION: Once you attach the Asset Class to the Asset Master Data window, all related definitions

will apply to the selected asset. You can see that the Depreciation Areas and the Depreciation Types defined

for the Motor Vehicles asset class apply to the asset master data record displayed.

TASK 2

Define a document numbering series for items.

To add a new series record go to Data upper menu and choose Add Row.



Create a virtual item representing the navigation system.



TASK 3

Purchase the truck using an A/P invoice.



Verify that a Capitalization document was automatically generated and that the Asset Master Data is

activated.



TASK 4

Purchase the navigation systems using an A/P invoice.



Verify that a Capitalization document was generated and that the system automatically created 10

asset master data records – one for each navigation system.

Go to the last record in the Capitalization window.

Choose the link arrow in the Asset No. field to open the asset master data records created.



Also verify that the asset master data records created include the serial number you entered in the

A/P invoice.

INFORMATION: All the details in the asset master data of the virtual fixed asset – except the Virtual Item

checkbox, which stays unselected – will be copied to the newly created asset master data. The assets

created are regular fixed assets with monetary values.



TASK 5

Execute the Depreciation Run.



Review the journal entry created by the depreciation run and the depreciation information of the

truck in the Asset Master Data window.

From the executed depreciation run, open the journal entry that was created.



From the executed depreciation run, open the asset master data.



TASK 6

Define the asset master data record for the truck as a sales item.



Issue an A/R invoice and review the journal entry created by the A/R invoice.

Browse to the created A/R invoice. Under the Accounting tab, choose the link arrow in the Journal Remark

field to review the automatic journal entry.

Which document was automatically created in addition to the A/R invoice? review the journal entry

created by this document.

The A/R Invoice automatically generates a Retirement document.

In the A/R invoice, right-click on the header/ footer area. From the context menu, choose the Relationship

Map… option. Double-click the Retirement document.

Right click on the Retirement document header/ footer area and choose the Journal Entry option to review

the automatic journal entry.

Check the net book value of the asset master data, along with the asset’s status.



In the Retirement document, under the Contents tab, choose the link arrow in the Asset No. field and view

the asset’s status and net book value.


Case Study: Cost Accounting SAP Business One 10.0, version for SAP HANA PUBLIC



INTRODUCTION


• Add a dimension to the cost accounting system.

• Create cost centers and distribution rules for the new dimension.

• Create expenditure G/L accounts.

• Assign distribution rules to G/L accounts.

• Run the Cost Center Report to present the expenses and revenues for each dimesion.

PREREQUISITE:



3. Make sure the Use Multidimensions checkbox is selected on the Cost Accounting tab of the General

Settings window under Administration → System Initialization → General Settings.

4. In the same place, also ensure that the In Separate Columns option is selected in the Display Distribution

Rules field.

TASK 1

OEC Computers employ 175 workers. 80 work at the company offices and 95 work from home.



The CEO wants to analyze the company revenues and expenses by the two work locations: company office

and home office.

In the cost accounting system, create a dimension to represent the work locations.

For the new dimension, create a cost center for each work location: office and home.

TASK 2

When you create a cost center, the system automatically creates a direct distribution rule with the same

name.

View the direct distribution rules that were automatically created for the office and the home cost

centers.

TASK 3

Some revenues and expenses are distributed to the cost centers by percentage or ratio.

For the Work Location dimension, define an indirect distribution rule that allocates amounts between

the two cost centers in accordance with the number of employees:

• Company Office – 80

• Home Office - 95

TASK 4

OEC Computers pays the mobile phone costs for all employees as a flat rate.

In addition, the employees who work at the company offices get a voucher for meals served in the cafeteria.

In the Chart of Accounts window, create two expenditure G/L accounts:

• G/L account code: 690010, Name: Mobile Phone.

• G/L account code: 690020, Name: Meals.

TASK 5

Meals expenses are assigned directly to the Company Office cost center, since only employees who work

at the office get meal vouchers.



Mobile phone expenses are allocated to the cost centers according to the number of employees in each cost

center.

In the Chart of Accounts window:

• Link the Meals account to the Company Office distribution rule.

• Link the Mobile Phone account to the number of employees’ distribution rule.

TASK 6

The vendor sent an invoice to charge you for the mobile phones annual fee.

On the same day, you received an A/P invoice from the cafeteria for the meal costs to date.

Create a service type A/P invoice for the mobile phones annual fee from vendor V20000.

Enter the description: mobile phones annual fee and choose account number 690010. Choose an

exempt tax group code and enter a total amount of 40,000.

In the Form Setting window, add the dimension columns to the A/P invoice table format.

Make sure that the Number of Employees – Location distribution rule appears in the Work Location

dimension field.

Add the A/P invoice.

Issue another service type A/P invoice from vendor V23000. Enter the description: Meals and choose

account number 690020. Choose an exempt tax group code and enter a total amount of 30,000.

Make sure that the Company Office direct distribution rule appears in the Work Location dimension

field.


TASK 7

The CEO of the company wants to analyze the revenues and expenses for each work location: company

office and home office.

Run the Cost Center Report to present the expenses and revenues for each work location.

TASK 8 - CHALLENGE

The CEO wants to analyze the same mobile phone expense by another dimension.

Assuming you are using a demo database for SAP Business One 10.0 that has another dimension defined

for it, for example, the Line of Business dimension including an indirect distribution role, for example, the

L1_Empl - No of Employees:



Locate the journal entry created by the service A/P invoice from vendor V20000 you issued for the

mobile phones annual fee.

In the Form Setting window, add the relevant dimension columns to the Journal Entry table format.

Assign the relevant indirect distribution rule to the additional dimension field.

Update the Journal Entry.

Run the Cost Center Report to present the expenses for each cost center in the additional dimension.


Case Study Solution: Cost Accounting SAP Business One 10.0, version for SAP HANA PUBLIC



Suggested solutions for the Cost Accounting case study



configuration.


relevant paths.

TASK 1

In the cost accounting system, create a dimension to represent the work locations.

Financials > Cost Accounting > Dimensions

For the new dimension, create a cost center for each work location: office and home.

Financials > Cost Accounting > Cost Centers



TASK 2

View the direct distribution rules that were automatically created for the office and the home cost

centers.

Financials > Cost Accounting > Distribution Rules



TASK 3

For the Work Location dimension, define an indirect distribution rule that allocates amounts between

the two cost centers in accordance with the number of employees:

• Company Office – 80

• Home Office – 95

Make sure that Direct Allocation box is not checked



TASK 4

In the Chart of Accounts window, create two expenditure G/L accounts:

• G/L account code: 690010, Name: Mobile Phone.

• G/L account code: 690020, Name: Meals.

First choose the G/L account under which you want to add the new account and then switch to Add mode.

Then, add each account.



TASK 5

In the Chart of Accounts window:

• Link the Meals account to the Company Office distribution rule.

• Link the Mobile Phone account to the number of employees’ distribution rule.

After choosing the G/L account, check the Work Location dimension and choose the relevant distribution

rule.

Note that you can link an account to multiple dimensions to get different views of the same data.



TASK 6

Create a service type A/P invoice for the mobile phones annual fee from vendor V20000.

Enter the description: mobile phones annual fee and choose account number 690010. Choose an

exempt tax group code and enter a total amount of 40,000.

In the Form Setting window, add the dimension columns to the A/P invoice table format.

Make sure that the Number of Employees – Location distribution rule appears in the Work Location

dimension field.




Issue another service type A/P invoice from vendor V23000. Enter the description: Meals and choose account number 690020. Choose an exempt tax group code and enter a total amount of 30,000. Make sure that the Company Office direct distribution rule appears in the Work Location dimension

field.




TASK 7

Run the Cost Center Report to present the expenses and revenues for each work location.



TASK 8 - CHALLENGE

Locate the journal entry created by the service A/P invoice from vendor V20000 you issued for the

mobile phones annual fee.



In the Form Setting window, add the relevant dimension columns to the Journal Entry table format.

Assign the relevant indirect distribution rule to the additional dimension field.

Update the Journal Entry.



Run the Cost Center Report to present the expenses for each cost center in the additional dimension.

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