Current assets (SAP Business One)

Current assets include assets of a company that are available or consumable in the short term. In SAP Business One, the type of inventory management in particular is decisive for the exact mapping of current assets in the balance sheet.

Detailed explanation/description:

Current assets are that part of total assets that does not remain in the company permanently, but is realised, processed or liquidated in the short term. These include inventories in particular, requirementscash and cash equivalents and current securities.

In SAP Business One, current assets are managed centrally with the warehouse and Stock assessment linked. The type of inventory management has a significant influence on the recognition and presentation of current assets:

1. continuous inventory management:

Of the Cost of goods sold is automatically booked on delivery to customers.
The items remain in the warehouse until delivery. Stock account (part of current assets).
The system automatically books to a Inventory account and a Incoming goods clearing account (WeRe) for incoming goods and returns.
The balance sheet shows the current inventory value based on the selected valuation methods (e.g. FIFO, Moving averagestandard costs).
The balance of the WeRe account shows open goods receipts and returns.

2. without continuous inventory management:

All purchases of goods are recognised directly as Cost of goods sold booked - regardless of whether the items are still in the warehouse.
That Stock account is only adjusted manually at the end of the year by stocktaking.
This can lead to a temporarily distorted presentation of the operating result and is not recommended for stock-intensive companies.

Versino Financial Suite

the Versino Financial Suite erweitert das Finanzmanagement von SAP Business One beim Umlaufvermögen durch verbesserte Auswertungen, Automatisierung und übersichtliche Cockpits für eine effizientere und transparentere Steuerung aller kurz- und mittelfristigen Vermögenswerte.

Components of current assets in accordance with section 266 HGB:

Supplies: Raw materials, consumables and supplies, merchandise, work in progress and finished goods, advance payments
Receivables: Trade receivables, receivables from affiliated companies, other receivables
Securities: Current financial assets
Cash and cash equivalents: Cash on hand, bank balances, Bundesbank balances, cheques

Current assets in the balance sheet analysis:

circulation intensity: Current assets / total assets
Asset intensity: Fixed assets / current assets
Working capital: Current assets - current liabilities
Net working capital: Share of funds available at short notice for operational processes