SAP® Business One - Purchasing and Operations
A Comprehensive, Integrated Solution for all of your Business Needs

The SAP® Business One application streamlines your inventory and production management processes to optimize operational efficiency and productivity. It provides functionality to help manage detailed warehouse data, track and record stock movements, and execute production orders.

Procurement management is a core functionality of the SAP® Business One application that enables you to automate and standardize your core procurement activities. It provides support for purchasing planning, vendor selection, purchase order management, and vendor invoice payment. And it lets you do all these rapidly, with the necessary integration across business functions in accounting and warehouse management to drive success.

With SAP® Business One, you gain a detailed view of your vendors and support for an integrated, centralized vendor data repository so you can make more effective purchasing decisions, identify opportunities for cost savings, and better manage supplier relationships.

You can manage and maintain supplier related activities with SAP® Business One, including issuing purchase orders, updating inventory quantities, calculating the landed cost value of imported items, delivering goods, and handling returns and credits.

Purchase order – Create purchase orders for materials or services you order, and print, mail, fax, or e-mail them directly to the supplier. A purchase order can be created from a sales order to ensure that the appropriate levels of goods are in the warehouse on the required shipping date. A purchase order updates the available quantity of the ordered items and informs the warehouse manager of the expected delivery date. In addition, you can split a single purchase order into multiple parts when, for example, items need to be shipped to multiple warehouses.

Goods receipt purchase order – Decide whether you would like to receive deliveries at one warehouse or multiple warehouses. Goods receipts may be linked to a purchase order, which means that the purchase order quantity can change if the quantity received does not match the original order amount. For items that need to be returned to the vendor, a goods return document can be created to either partially or completely reverse the quantity and prices in goods receipt PO.

AP invoice – Process payments to suppliers by acting on journal entries the software automatically generates when you process supplier invoices.

AP credit memo – Issue a credit memo to any supplier for returned merchandise. You can quickly draw the data required for that credit memo from the original invoice.

Landed costs – Calculate the purchase price of merchandise by allocating the various landed-cost elements (such as freight, insurance, and customs duties) to the FOB cost of each item. The actual warehouse value of merchandise updates automatically.

Down payments – Manage your vendors’ down-payment requests for purchase orders. You can process the down payment with or without an invoice, and can decide whether you would like to create the appropriate accounting postings once the down payment is made or only document without creating any postings.

Freight charges – Track and document any additional costs – like freight charges – involved in purchasing transactions such as insurance, shipment or other fees that apply to your goods.

Document drafts and printing – Edit and manage all purchasing documents that have been saved as drafts and print them (including drafts) by period, document number, or document type.

Features of SAP® Business One Purchasing Management
Procurement	Item and Vendor Master Data	Warehouse and Accounting Integration
Create single or multiple purchase orders and goods receipts in easy-to-follow steps	Manage detailed item and vendor data centrally in user-friendly interface	Benefit from real-time synchronization of goods receipts and inventory levels in warehouse
Link purchasing documents and view document trails for audit and research purposes	Manage vendor information with payment terms and methods, and perform graphical purchase analysis in vendor master record	Perform purchase planning using the material requirement planning wizard
Manage returns, special expenses, and multiple currencies	Maintain detailed item purchasing information with price lists and tax information	Calculate inventory book values and last purchase price automatically
Generate detailed purchasing and pricing reports	Integrate master data into all purchasing transactions in the SAP® Business One application	Generate sophisticated valuation and accounting reports

Material Requirements Planning

SAP® Business One offers a simple yet powerful planning function to help you schedule and manage items that will be produced or purchased using a variety of criteria. SAP® Business One replaces informal, ad hoc, error-prone production scheduling with a more structured process using better information from bills of material, inventory data, inputs from scheduled production and purchase orders, and demand inputs from actual and forecasted orders.

The software offers the following material requirements planning (MRP) functionality.

Forecasts – You can predict demand based on historical purchases, received orders, and other forecasting metrics in the MRP wizard. Forecast calculations help you anticipate demand for your product and adjust material planning accordingly.

MRP wizard – Arrange for and optimize future material requirements; manage and execute purchasing and manufacturing recommendations and exceptions. By considering both minimum order quantities and order multiples, you can take advantage of purchase price breaks or standard production lot sizes and thereby reduce costs. The wizard generates a recommendation report that offers advice to either make or purchase items. Numerous drill-down options let you view the net requirement calculations and the actual documents driving the gross requirements.

Order recommendation report – Automatically create production orders and purchase orders based on information in a recommendation report. If an item needs to be outsourced, you can readily convert a production order to a purchase order. You can also consolidate purchase orders to the same supplier into one order, further streamlining the purchasing process.