SAP Business One Warehouse Management

With SAP Business One Warehouse Management you can, among other things item master data create and manage inventory, define pricing structures, perform inventory-related transactions, define storage bins and create inventory-related reports.
This also includes the functions around barcodes, receipt printing, storage locations, item management, stock transactions, price lists, picking and packing, and stock reports.

As much storage as you need

The basis of the warehouses defined in SAP Business One is the warehouse management. In principle, any number of warehouses can be created in SAP Business One. One can
completely separate in the management of the warehouses (calculation of the cost of articles, conduct at
Minimum stocks etc.). The warehouses created in SAP Business One do not necessarily have to be physically separated from each other. It is quite conceivable that the main warehouse and the spare parts warehouse are located in the same warehouse, but are separated for logistical reasons.

Storage bins in SAP Business One

Storage bins are the smallest storage space units in the SAP Business One warehouse. When bins are enabled for a warehouse, a bin is required for each stock transaction to determine where stock is issued from or received to. These are then physical divisions of the warehouse with up to four levels. This can be a row, an aisle, a shelf, a box, a container, a box, a crate, etc.

Valuation methods in SAP B1

Before using inventory management in SAP Business One, the optimal valuation method for the company must be determined. This allows the programme to calculate the current cost of goods sold. At the same time, it can also precisely determine prices and discounts. The direct and indirect consumption determination thereby create a basis for the valuation within the warehouse management.

• Indirect consumption determination

  In the context of indirect consumption determination, the current stock withdrawals are unknown. The consumption values result from the remaining quantity. This can be determined because the opening stock, the purchases and the closing stock are registered. The disadvantageous aspect of this calculation of consumption is that shrinkage, breakage, theft and price erosion are not listed separately but are included in consumption.
  

• Direct consumption determination

  The quantity and the withdrawal date are determined. Thus, a target closing stock can be calculated from these components and compared with the actual closing stock according to the inventory. The comparison between the target and actual closing stock results in surpluses or shortages at the end of the financial year. The class of direct consumption determination includes, among others, the valuation methods used in SAP Business One such as "moving average price" or First In ? First Out (FIFO).
  

• Valuation according to standard price

  The valuation according to standard prices follows a very simple concept. First, a standard price is set. On the basis of this price, an item is continuously valued. All bookings on the Stock account shall be made at this fixed unit price. The procedure does not take into account what the actual cost price of the respective item was. If a purchase was made at a price different from the standard price, the price difference is posted to a variance account.
  

• Moving average price

  With the moving average price method, a new average price is determined for the entire stock of an item. The withdrawals up to the next purchase of the item are valued at the average price determined. For this purpose, the sequence of acquisitions and takeovers is recorded. It follows that after each purchase the new average price is determined, at which the next purchase is then valued.
  

• First-In-First-Out (FIFO)

  The First-In-First-Out method is based on the premise that the items that are put in first are also taken out of the warehouse first. In SAP Business One, each specific purchase price is stored accordingly, which is then used for valuation in this case. As the price increases, the FIFO method usually results in the remaining stock being valued higher than the outgoing goods.
  

• Rate by serial & batch number

  Based on serial number or Batch numberassigned in the goods receipt, the purchasing costs can be tracked very easily in SAP Business One on the item in question. If such an item is sold and outsourced, the referencing costs can always be determined exactly.

Units of measure in SAP Business One Warehouse Management

In SAP Business One, units of measure are used to represent all those items that are not bought or sold in pieces, kilos, litres, metres, etc.

Units of measure groups, to which units of measure can be assigned, are used to describe the relationship between the different types of units of measure for items in sales, purchasing and stock. Once set up, unit of measure groups can be assigned to any number of similar items.

Example:

Suppliers sell an item in boxes or on pallets. The item is then offered and sold either in packs, small packs or in groups of 6 packs.
Each item master record thereby contains the units of measure used for the purchase, storage and sale of that particular item.
When you create an item master record, you assign a unit of measure group.
The group contains all relevant units of measurement needed for the item and the relationship between the units.

In the article master data, one defines different types of units of measurement for which the following applies:

• The stock unit of measure - This unit of measure is used to post all stock transactions.
• The stockkeeping unit cannot be changed once transactions have been made for that item.
• It is important to note that the stock unit field is not displayed in the item master data if the group "manual" is assigned.
• The sales units - Several sales units can be assigned to an item.
• Any of these units of measurement can be used in a sales or inventory document.
• Purchasing units of measure - Multiple purchasing units of measure can be assigned to an item.
• Each of these codes can be used in a purchase or inventory document.
  All stock tracking and reporting is done in the stockkeeping unit. The availability check is done for the stockkeeping unit.

Catalogue numbers in SAP Business One Warehouse Management

In SAP Business One, one has the option to keep catalogue numbers per business partner for the respective items. These foreign catalogue numbers are used to adapt the procurement and sales documents to the requirements of the supplier or customer accordingly.
You can assign several business partner catalogue numbers for the same item number. The maintenance of Business partner catalogue numbers can become tedious, so SAP Business One offers global updating to simplify this process. In doing so, you can:

• Replace all items: This option copies all catalogue numbers of the business partner from one business partner to another.
• Replace existing items only: This option updates articles that exist for both business partners.
• Do not replace items: This option copies new articles without affecting existing articles in the target business partner.

Pricing in SAP Business One

SAP Business One Warehouse Management provides a comprehensive price management module that takes into account units of measurement, currencies, quantities, dates and other characteristics from the item master data.
One can create different price management logics that are hierarchised in the following way:

• Are there special prices for business partners?
• Are there time and volume discounts?
• Is there Discount groups?
• Is there a price in the price list linked to the business partner?

For a marketing document (e.g. a sales quotation), SAP Business One checks among these four different hierarchised options to see if they are configured and,
If yes, the corresponding price is used.

price lists

Ten price lists are available by default, but you can easily delete unused price lists
or create additional price lists by right-clicking on a price list and choosing
to navigate to the Summary menu.
A price list can be based on itself (e.g. a purchase price list) or on a base price list be based with a factor. For example, a sales price list can be based on the purchase price list with a factor of 1.5, which means that the sales price is 1.5 times the purchase price.

special prices

Special prices are prices that can be offered to one or more business partners.
for special items. In SAP Business One, the special prices created can be time-limited. Special prices can be transferred from one business partner to another via additional functions.

Period and volume discounts

A time and quantity discount takes precedence over the list price.
To create period and quantity discounts, select a price list for which you can define a period and quantity discount.

Price report

With the price report function, the price history of an item can be called up directly from a document line. The prices in all price lists for this item and all special prices are displayed.

Management of serial numbers and batches

In the serial number is a unique number that a company assigns and/or manages for products for documentation or business purposes (such as guarantees, warranty claims, quality management, etc.). Serial number management affects all stock movement transactions in SAP Business One, from purchasing to stock transactions, inventories and sales.

In contrast, batches are used to track a quantity of an item with common attributes. These characteristics can be attributes that you define, such as a colour shade, a grain size or ingredients. The characteristics can be dates such as the expiry date, the date of manufacture or the date the items were added to stock.

In SAP Business One Warehouse Management, the system can prompt the user to assign batch or serial numbers for each individual unit in each transaction when it first enters stock.
The system then prompts the user for a batch or serial number for each transaction where the item is issued from or returned to stock. This way you know exactly which items or batches are in stock and which items have been shipped to a customer. When you first stock the serialised items, you can either enter the serial numbers manually or create them automatically with the serial number sequence selected.

However, you can also control items so that serial numbers are only required on receipts that issue an item from stock.
Release documents include not only: Goods issueThe system not only handles the transfer of goods from one warehouse to another, delivery, outgoing invoices and goods issues to production, but also stock transfers between warehouses as well as returns and credit notes.
Alternatively, one can select the option 'Automatic serial number creation on receipt'. When purchasing the serialised item, SAP Business One Warehouse Management automatically creates consecutive numeric serial numbers for the purchased quantity.

Manual stock transactions

Manual stock movements are all goods movements that take place outside of the
are all stock movements that do not take place within the framework of purchasing or sales documents. They are special cases in which it is a question of carrying out certain goods movements. Available in this context as a transaction are the Goods ReceiptThe following are the main tasks: stock transfer, goods issue and stock revaluation.

Inventory in SAP Business One

There are various methods available in SAP Business One Warehouse Management for carrying out a physical inventory, i.e. counting, measuring or weighing the stocks in the company. The inventory can be carried out on the balance sheet date or on a different key date. In perpetual inventory, the inventory is recorded according to a physical inventory plan within the financial year. In inventory sampling, random samples are recorded on the basis of mathematical-statistical methods.

Beyond the conventional inventory At the end of the financial year, you can also
also in the course of the year, an unlimited number of Inventories make. SAP Business One enables such an approach through the use of inventory cycles. Such inventory cycles can be assigned per item and include a reminder function.

Picking and packing

Picking and Pack is a powerful function for prioritising the allocation of stock to sales orders, advance invoices, production orders and stock transfer orders. The SAP B1 Pick & Pack Manager in SAP Business One Warehouse Management searches the system for the following open documents. It then sorts them by requested delivery date and priority and displays the cumulative quantities available for picking and dispatch. If there is not enough quantity available, there is no release. However, one can configure the system to release a pick list for unavailable quantities.

Inventory reports for warehouse management

SAP Business One offers a variety of inventory reports that provide the information needed for the
for warehouse management and finance. These reports can be previewed in SAP Business One, printed as PDF files or exported to Excel.

Here is a selection of the most important reports on the subject of warehouses in SAP Business One.

• Report article list

  This report contains a list of articles that can be filtered by article number, article groups and properties.

• Report on inactive elements

  This report shows the items that were not used in the selected documents.

• SAP Business One Warehouse Management Inventory Posting List

  Lists all transactions that affect the accounting.

• Stock status report

  This report contains a list of items: Quantities in stock, confirmed, ordered and available. These quantities are totalled for all the warehouses selected in the selection criteria.

• Stock report

  The stock report contains, for each item, the quantities in stock, confirmed, ordered and available, detailed by warehouse.

• Stock audit report

  The stock audit report is probably the most frequently used report in the stock module. It provides traceable information on cumulative quantities and values, as well as all the details of transactions relating to the quantities or values of stock. The information can be grouped by item or G/L account and by warehouse.

• Inventory check of batches and serial numbers

  Batch and serial number stock check lists all transactions linked to the serial number or batch number: Transaction Type, Transaction Number, Posting Date, Stock Code, Quantity, Cost of Transaction, Cumulative Quantity and Serial or Batch Number. The selection criteria for running the reports are the posting date, item code, batch number, serial number and stock code.

• Stock assessment Simulation report

  This report enables a "fictitious" evaluation of selected articles. The selection can be limited to warehouses or locations. In this way, different scenarios of the valuation can be presented.