10 FAQs: Procurement Process in SAP Business One

10 FAQs: Procurement Process in SAP Business One
by Kehinde Eseyin(Systems Support Officer)


Q1. Can I create purchase requisition in SAP Business One?
A1. No. SAP Business One does not support purchase requisition.

Q2. What are the implications of creating a Goods Receipt (that is based on a Purchase Order)?
A2. * As a result of the accounting effect of the Goods Receipt PO, both the purchase order and the Goods Receipt PO cannot be amended.
* The Inventory status is updated.
* When using the draw document wizard, items that are already copied in full or partial are displayed in light gray in the purchase order.

Q3. What are the implications of creating an A/P Invoice?
A3. * The A/P Invoice cannot be changed.
* If the A/P Invoice is based on a Goods Receipt PO, then only the values gets updated; else stock quantity is also updated.
* When using the draw document wizard, items that are already copied in full or partial are displayed in light gray in the base document.

Q4. Can I reverse a transaction that has already affected my stock quantity and value?
A4. Yes. A/P Credit Memo allows you to reverse transactions that you already created an invoice for and the Goods Return functionality allows you to reverse transactions that have only affected stock quantity.

Q5. Does SAP Business One allow for partial and over deliveries?
A5. Yes. When you create Goods Receipt PO from a purchase order document, you can choose to increase or decrease the quantity. The later is called Over Deliveries while the former is called Partial Deliveries.

Q6. Which functionality in SAP Business One allows you to create a pro forma invoice?
A6. The A/P Reserve Invoice.

Q7. What is Split Purchase Order?
A7. Split Purchase order is a functionality that allows you to split a purchase order into child purchase order especially when dealing with more than one warehouse.

Q8. What is Landed Costs?
A8. The Landed Costs functionality in SAP Business One allows you to calculate the actual cost price of an item based on added costs incurred such as custom duties, insurance, tax, etc. The base document for the landed cost process is the Goods Receipt PO.

Q9. What is the use of the allocation cost account as it relates to the journal entries created when goods are procured?
A9. The Allocation Cost Account is used to enforce control by checking if the goods receipts PO and the A/P Invoice are the same.

Q10. What is the accounting implication of procuring non-inventory item on the Goods Receipt PO?
A10. There is no implication. For non-inventory items, SAP Business One does not create postings for the Goods Receipt PO even if you explicitly create one.