Financial accounting in SAP Business One contains the entries that are required by law and enriches them with many additional functions. The base for the accounting form the individual accounts and/or the chart of accounts. In addition to the classic accounting functions, SAP Business One financial management also has integrated cost accounting and asset accounting.
In SAP B1, a significant part of the postings are automatically entered into the accounting journal directed. You can also post directly in the Financial Accounting module. This basis is combined with useful tools such as e.g parked receipts, account assignment template or recurring entries enriched. Cost accounting, which is fully integrated in SAP Business One, is more closely linked to accounting.
the asset accounting enables the user to control and check the fixed assets. She is as a subbook to ledger in Business One Financial Accounting and provides the ERP user with accounting information about fixed assets. A module for all banking transactions is also integrated in SAP Business One financial management. This includes processing payments by check, cash or credit card. The financial reports provide an overview of the data generated in financial accounting. These create transparency on profit and loss, cash flow, maturities and profit centers in the company.
Charts of accounts in SAP Business One Financials
When creating a company in SAP Business One Financials, you can specify whether you want to use a predefined or a custom one chart of accounts want to set up.
The charts of accounts already defined meet the accounting regulations of the respective country and are created according to the model of a joint chart of accounts or a single chart of accounts. Accordingly, with the existing templates, SKR03, SKR04 or IKR, start with German accounting. Of the chart of accounts in SAP Business One is structured like a filing cabinet. This chart of accounts is in accordance with the classification scheme of the balance sheet and the Profit and Loss Account divided into the categories of assets, liabilities, equity, income, expenses and financial result. The respective drawers of the cupboard form the structure and roughly follow the account classes of the standard chart of accounts.
G/L account determination in SAP Business One
The basis for the automated postings in SAP Business One is the G/L account determination. This G/L account determination defines a number of account assignments in financial accounting that regulate all automatic postings of the individual document types. If
uses a standard chart of accounts,
the account assignments are largely assigned automatically. If a company operates with an individual chart of accounts, you can also customize the “Account determination for G/L accounts”. In principle, most of the accounts required for automatic postings are set up via the G/L account determination. If revenue postings, expense postings and inventory postings are to be presented in a more differentiated manner, the
Account determination after camp, article group or article, which then superimposes the G/L account determination.
If even more detailed control is required, you can use the extended account determination. This deactivates the account determination camp, item group or article. In the extended account determination, field contents can be read and the corresponding accounts are selected depending on the result.
In addition to the procedure mentioned above, there are also settings for account determination in the asset classes in SAP Business One Financials.
Journal entries in SAP Business One Financials
A journal entry is used to post data directly to the database.
A journal entry is the documentation of a transaction. Usually, this includes a transaction date, the title of the accounts involved, the amount of debit and credit, and the transaction description. Each system document from the modules sale, Purchasing, Payment and Inventory affecting a G/L entry automatically creates a journal entry in the background. You can only add a journal entry if the entry is balanced (debit and credit are equal). Journal entries cannot be changed once added. Instead, you can only cancel. The only exception is the distribution rule.
In SAP Business One accounting, you can start a journal entry without closing it (that is, without posting it directly in general ledger) by using a journal voucher. These parked receipts can come in handy when you have a lengthy transaction to make and need to come back. You can start entering data and save a journal entry as a draft even if it is not balanced.
You can also add journal entries to existing parked documents. In other words, man
can create a parked document that contains multiple parked entries. Another plus is that employees can enter bookings in advance, which are then finally booked by an experienced specialist from the accounting department. Companies with high compliance requirements can also implement a four-eyes principle for accounting.
Incoming payments in SAP Business One accounting
Payment receipts have four choices: cash, check, wire transfer, and credit card. SAP Business One processes them all in the same way: by making a corresponding payment against a specific A/R invoice, or by making an A/R payment to a customer against two or more sales invoices.
There are also four ways to send outgoing payments: cash, checks, credit and debit cards, and bank transfers. Outgoing payments can be used to perform the following activities: create outgoing payments for business partners and accounts with different payment methods; Print and void checks for payment for various purposes.
account assignment template
Account assignment templates represent a tool that efficiently supports you with the same or similar ongoing postings. The idea is to specify the structure of postings that occur again and again in accounting (e.g. cash purchase of consumables) and only use the amounts for this posting.
Similar to account assignment templates, recurring entries are an instrument
which SAP Business One Financials offers to accounting to make it more effective. SAP B1 automatically proposes recurring postings that are the same in terms of the posting record and the amount. Typical here are, for example, rent, leasing, insurance and the like.
SAP Business One has a payment wizard that allows users to create outgoing payments in batches for checks and wire transfers and process incoming payments by wire transfer in batch. The payments are generated according to the company's selection criteria and payment methods.
Foreign currency in financial accounting from SAP B1
SAP Business One has everything you need to manage foreign currencies. These are covered with a wide range of functions. The currency system in SAP Business One consists of a three-part system:
- local currency
The local currency corresponds to the currency that you set for your company.
- system currency
The system currency is kept parallel to your local currency and is a (different) currency. In addition to the local currency, each account balance is also displayed in the system currency. This provides another currency that can be used for reporting purposes.
- Account currency or document currency
It is the currency specifically assigned to the G/L account, business partner, or document.
the internal poll is a procedure that is carried out in the background of SAP Business One and has an automatic effect on receipts. When a payment has been made or a document has been removed from an invoice and a posting in the ledger has been made, an internal reconciliation process will normally take place. However, users have the option to do the internal reconciliation in a manual way as well.
External reconciliation is the reconciliation of transactions that occur in SAP Business One with external transactions. There are two types of voting function. One option is to reconcile every single bank transaction, such as deposits, fees, payments and loans, with every single journal entry in SAP Business One. However, one can also reconcile the journal entries in SAP Business One with a ending balance of the bank account.
Bank statement processing in SAP Business One accounting
With bank statement processing, bank files can be automatically imported into the financial system. Part of the import process allows users to make payments and other customization transactions via validation of matching criteria to be created automatically in SAP Business One. At the same time, the majority of transactions are reconciled externally. Users can then do the rest of the work manually. The add-on module also allows the creation of bank files that can be sent to the bank for transfer.
Budget in SAP Business One Finance
With SAP Business One, one can budget be created within the program running on the
chart of accounts structure. The budget is thus created on the basis of the individual ledger accounts. This is then the basis for the comparison between the budget and the actual figures of the company.
- evenly, with the budget spread over the year
- ascending, with the budget amounts increasing each month over the course of the year
- descending, the budget amounts decrease over the course of the year per month
Budget scenarios are used in SAP Business One for different tasks:
In this way, SAP Business supports analyzing the financial status of a department, a unit or the entire company. You define guidelines and determine the business period in which they should apply.
When starting a new business, a main budget scenario is generated. This cannot be deleted later. The main budget is still addressed when creating a new posting period.
Cash flow in SAP Business One
SAP Business One provides detailed information about the cash flow situation in the company. The system provides forecasts of when which income and expenses will have what effect and what scope is available for investments.
When generating a cash flow forecast, you can determine a few parameters individually:
- Selection of transactions to be included
- Determination of the opening balances
- Determination of the time axis
Cost accounting in SAP Business One finance
In SAP Business One, costs originating from expense or revenue postings can be cost centers, dimensions and projects. Projects can be understood as cost bearers. However, they can also be used to collect specific project costs be used.
Collecting means that you can record processes that affect the result. However, the direct transactions can be in the general ledger that have a link to cost centers, dimensions or projects.
In SAP Business One, one also speaks of a financial project, since there is also organizational project management, which in turn can be linked to the financial project. The link to a Project can already be defined in the business partner master data.
In addition or as an alternative, a project can also be assigned to one or more general ledger accounts. Projects can also be stored for systems.
However, the project can already be assigned to processes that are not posted for the time being. This can be the case for orders, offers and orders. In such an example, the project is “carried along” until it is posted with the journal entry. An alternative option is to assign the project in the document line
Cost centers in SAP finance
The second cost accounting instance after the project, on which costs and revenues are accumulated, is the cost center. In SAP Business One you have the option of managing cost centers one-dimensionally or multi-dimensionally. One-dimensional means that costs in the conventional understanding can be allocated to one or more cost centers up to the entire expense or revenue once per distribution rule. It is also possible to calculate the amount from the expense posting or revenue posting based on distribution key distributed multiple times to one or more cost centers from different dimensions.
cost accounting adjustment
The functionality allows adjustment of postings between the
individual cost centers.
SAP Business One provides the necessary tools to do this Capital assets of the company in the system. Asset master data can be set up to contain an asset and its depreciation. There is also the option to capitalize and depreciate assets. The asset can be calculated on a monthly or daily basis and depreciated using the declining balance method. A special depreciation can also be carried out. A multi-stage process ensures transparency: In the general ledger, the impairments are determined on the basis of acquisition and production costs, useful life and posting. In a sub-ledger, all transactions are round to record the fixed assets. You can also comprehensively evaluate your system-specific data at any time.
SAP Business One financial reports
SAP Business One has a number of financial reports. These reports are structured into groups.
Some reports from the group in detail:
- G/L Accounts and Business Partners
This report shows an overview of all ledger accounts and business partners with the current balance.
The general ledger report shows all journal entries by ledger account or by business partner
- Receivable & Liability
The aging reports for accounts receivable from customers and liabilities to suppliers contain a list of open outgoing invoices or incoming invoices.
- Posting Journal Report
This report contains a list of all transactions, sorted by document type.
- document journal
The report shows a typical journal report with a chronological list of transactions.
- tax report
This report shows a list of all entries after the tax code are grouped
- Transaction Journal Report
This report shows posted journal entries broken down by journal entry number. You can generate breakdowns to view additional information about the transactions.
- Inventory Audit Report
This report shows all items listed in inventory. Next to that you get the details of the transactions posted in relation to the items and costs for the remaining stock quantity.
- balance sheet
the balance sheet provides an overview of all assets and liabilities of a company at a defined point in time. The report definition specifies whether it should be an annual balance sheet, quarterly balance sheet, monthly balance sheet or periodic balance sheet. You can also specify which currencies should be displayed
- List of totals and balances (SuSa)
The report is a list of all balances based on ledger accounts and business partners. Criteria can be assigned. This applies, for example, to G/L accounts, business partners, currency, time periods, etc.
- Profit and Loss Account
the Profit and Loss Account is an overview of all expenditures and expenses and the associated profit or loss in a period.
- cash flow
The cash flow report is a weekly view of all of the company's planned and actual cash inflows and outflows. All cash accounts with the corresponding cash flows are used. In addition, based on the due dates of each, future cash overflow and cash shortfall are calculated. In addition, you can still future or recurring bookings plan on. Planned incoming and outgoing payments that are not yet available in document form can also be phased in.
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