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SAP BUSINESS ONE AND TRANSACTION CYCLES
LECTURE
SAP Business One is a business management software that contains modules accessed by users
to manage business operations and data.
These modules contain various functionality sets and are integrated to bring greater visibility,
efficiency and productivity to growing small and midsize businesses.
The SAP Business One software solution integrates working business functions for the whole
company, including financial management, purchasing, sales, distribution, customer service
management (CRM), inventory management, production, project management, and field service.
It is a single application that eliminates the need for separate point solutions and the complicated
integration of several modules. You can install SAP Business One on a server, or in the cloud.
Eg. Sale to receivable
SAP BUSINESS ONE MODULES
➢ Administration: contains user administration and system settings.
➢ Financials: contains accounting, chart of accounts, posting and financial reports.
➢ CRM: contains activities and marketing (prospect clients)
➢ Opportunities: contains sales opportunity records and reports (interpreted data)
➢ Sales-AR: controls sales quotes, sales orders, deliveries and invoice
(perfected sales)
➢ Purchasing – AP: controls purchase quotations, purchase orders, goods receipts
and vendor payments.
➢ Business Partners: manage leads, customers and vendors along with the
respective address and contacts (buyers and suppliers’ data)
➢ Banking: contains incoming and outgoing payments and bank reconciliation.
➢ Inventory: manage all items you buy and sell including all details.
➢ Resources: contains resource master data and resource capacity planning.
➢ Production: controls bills of materials, production orders, routing and all
manufacturing details
➢ MRP: contains a wizard to control inputs of demand in order to create
recommendations for make and buy scenarios.
➢ Service: controls service contracts, customer, equipment cards, service calls, and
field service management.
➢ Project Management: contains projects, project tasks and issues, and project
financial summaries.
➢ Human Resources: controls employee master data.
➢ Reports: contains out of the box reports across all modules.
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The SAP Business One Modules – User Access
User access are classified into:
✓ By License Type
✓ Through Security and Administration
License are either Professional or Limited user types.
Professional users (Super Users) have access to all the modules, limited users are given access to
modules specific to finance, sales or logistics.
The SAP Business One mobile app contains these modules:
Activities, Approvals, Alerts, Business Partners, Inventory, Price Lists, Sale Opportunities,
Sales Quotation, Sales Order, Delivery, Service Contracts, Service Call, Reports, and
Dashboards. In general, you must have a professional, limited or mobile user license to
access the SAP Business One mobile app.
Other SAP Software
➢ SAP Business ByDesign
➢ SAP S/4HANA
➢ SAP Concur
➢ SAP Business One Express Edition PaaS model
➢ SAP SuccessFactors
➢ SAP Analysis
THE TRANSACTION CYCLES
1. The Revenue Cycle
2. The Expenditure Cycle
3. The Conversion Cycle
THE REVENUE CYCLE
In its simplest form, the revenue cycle is the direct exchange of finished goods or services for cash
in a single transaction between a seller and a buyer.
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Two phases of the revenue transaction:
1. The physical phase, involving the transfer of assets or services from the seller to the buyer; and
2. The financial phase, involving the receipt of cash by the seller in payment of the account
receivable
Hence, the revenue cycle actually consists of two major subsystems:
1. the sales order processing subsystem; and
2. the cash receipts subsystem
SALES ORDER PROCEDURES
Sales order procedures include the tasks involved in receiving and processing a customer order,
filling the order and shipping products to the customer, billing the customer at the proper time,
and correctly accounting for the transaction
1. Receive Order
2. Check Credit
