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 are 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.

Fully integrated financial accounting

In SAP B1, a significant part of the postings are automatically entered into the accounting journal is managed. Or you can also post directly in the financial accounting module. This basis is supplemented with useful tools such as parked receipts, account assignment template or recurring entries. Cost accounting, which is fully integrated into 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 ERP users with accounting information on fixed assets, for example. A module for all banking transactions is also integrated into SAP Business One Financial Management. This includes the processing of payments by cheque, cash or credit card. The financial reports provide an overview of the data generated in financial management. These create transparency regarding profit and loss, cash flow, maturities and profit centers in the company.

Versino Financial Suite for SAP Business One Finance

Charts of accounts in SAP Business One Financials

Presentation of the chart of accounts in SAP Business One Financials
SAP Business One Financial Accounting Chart of Accounts

When creating a company in SAP Business One Financial Accounting, you can specify whether you want to use a predefined or customised chart of accounts want to set up.
The charts of accounts already defined also fulfil the accounting regulations of the respective country and are created according to the model of a joint chart of accounts or standard chart of accounts. The existing templates can be used accordingly, 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 is divided into the categories assets, liabilities, equity, income, expenses and financial result. The respective drawers of the cabinet form the structure and roughly follow the account classes of the standard chart of accounts.

G/L account determination in SAP Business One

SAP Business One Financials Account Determination
SAP Business One account determination

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, which from now on regulate all automatic postings of the individual document types. If you
uses a standard chart of accounts,
the account assignments are largely assigned automatically. If a company operates with an individual chart of accounts, the "G/L account determination" can also be customised. In principle, most of the accounts required for automatic postings are set via the G/L account determination. Although revenue postings, expense postings and inventory postings must 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, for example, even more detailed control is required, the Extended account determination use. This deactivates account determination according to 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 described above, there are also settings for account determination in the asset classes in SAP Business One Financial Accounting.

Journal entries in SAP Business One Financials

SAP Business One journal entries

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, PurchasingThe entry for the transaction, payment and inventory that affects a G/L entry automatically creates a journal entry in the background. Therefore, you can only add a journal entry if the posting is balanced (debit and credit are equal). journal entries can no longer be changed after it has been added. Instead, you can only cancel. The only exception is the splitting rule.
In SAP Business One Accounting, you can start a journal entry without finalising it (i.e. without posting it directly to the general ledger) by using a journal voucher. These journal vouchers can be useful if you have a longer entry to create and need to come back. You can start entering data and save a journal entry as a draft, even if it is not balanced.

Parked receipts

You can also use existing parked receipts with journal entries. In other words, you can create a journal voucher that contains several journal entries. Another advantage is that employees can enter bookings in advance, which are then finalised by an experienced specialist from the accounting department. Companies with high compliance requirements can also implement a dual control principle for accounting.

Incoming payments in SAP Business One accounting

Incoming payments have four options: Cash, cheque, bank transfer and credit card. SAP Business One processes them all in the same way: by means of a corresponding incoming payment against a specific outgoing invoice or by an outgoing payment to a debtor against two or more sales invoices.

outgoing payments

There are also four ways to send outgoing payments: Cash, cheques, credit and debit cards and bank transfers. The activities listed below can be carried out with outgoing payments: Outgoing payments create cheques for business partners and accounts with different payment methods; print and validate cheques for payment for different purposes.

account assignment template

account assignment template are a tool that provides you with efficient support for identical or similar ongoing postings. The idea is to specify the structure of postings that occur repeatedly in accounting (e.g. cash purchase of consumables) and only use the amounts for this posting.

recurring bookings

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.

Payment Assistant

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 also has all the prerequisites for managing foreign currencies. These are covered by 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.

Reconciliations in SAP Business One

Internal vote

the internal poll is a procedure that is carried out in the background of SAP Business One and affects documents automatically. When a payment is made or a document is removed from an invoice and a posting is made 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 voting

External reconciliation is the reconciliation of transactions that take place in SAP Business One with external transactions. However, there are two types of reconciliation. One option is to reconcile each individual bank transaction, such as deposits, charges, payments and loans, with each individual journal entry in SAP Business One. However, it is also possible to reconcile the journal entries in SAP Business One with a closing 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. For this purpose, the budget is created on the basis of the individual G/L accounts. This then enables a direct comparison between the budget and the company's actual figures.

With the Budget Distribution Methodn the distribution of a budget over the fiscal year can be realized. SAP Business One knows three methods of budget distribution

  • 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

Budget scenarios are used in SAP Business One for different tasks:

  • planning
  • tracking
  • reporting

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

Cash flow definition SAP Business One
SAP Business One - Cash Flow Definition

Cost accounting in SAP Business One finance

SAP Business One Allocation Report
SAP Business One Allocation Report

In SAP Business One, costs originating from expense or revenue postings can be cost centersdimensions and projects. Projects can be understood as cost units. They can also be used to collect specific project costs be used.
Collecting means that you can record transactions that have an impact on the result. In addition, there can be direct postings in the general ledger that have a link to cost centres, dimensions or projects.

The projects

In SAP Business One, this is also referred to as a financial project, as there is also an organisational project management, which in turn can be linked to the financial project. Furthermore, the link to a Project can already be defined in the business partner master data. In addition or as a substitute, a project can also be permanently assigned to one or more G/L accounts. Projects can also be stored for assets.

However, the project can already be assigned to transactions that are not initially posted. This can be the case for purchase orders, quotations and orders. In such an example, the project is "taken 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.

asset accounting

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 that contains an asset and its depreciation. It is also possible to capitalise and depreciate assets. The asset can be calculated on a monthly or daily basis and depreciated using the declining balance method. Special depreciation can also be applied. A multi-stage process ensures transparency: in the general ledger, you determine the depreciation on the basis of acquisition and production costs, useful life and posting. All transactions relating to fixed assets are recorded in a subledger. Apart from this, you can comprehensively analyse your asset-specific data at any time.

In summary, the asset accounting module of SAP Business One offers the following functions:

  • Set up asset master data to track assets and their depreciation
  • Capitalisation of assets
  • Depreciation of assets
  • Monitoring and planning depreciation
  • Generating reports to analyse the financial impact of investments
  • Integration into the SAP Business One system for central and easily accessible data management
SAP Business One GUV
SAP Business One GUV

SAP Business One financial reports

Financial reports are an integral part of the SAP Business One financial system. These reports are structured in 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. In the selection area 'G/L accounts and business partners - selection criteria', you can define filters for business partners by code, group and properties on the left-hand side. To do this, the 'BP' option must be activated by clicking on the corresponding box. You can also use the 'Show interested parties' option to Interested parties without booking-relevant data by activating the corresponding checkbox.
  • ledger

    The general ledger report shows all journal entries by G/L account or per business partner.
    • The filter criteria for G/L accounts and business partners are defined in the same way as in the "G/L accounts and business partners" report. Restrict the display of postings by posting date, document date and due date.
    • In the lower part of the 'General ledger - criteria' selection area, you can sort your data according to various parameters such as account code, cost centre, document number or contra account.
    • You will find further selection options in the centre of the window.
    • To display only the accounts with a balance, activate the option 'Hide accounts with zero balance'. If you want to hide accounts without bookings, select the option 'Hide accounts without bookings'.
  • 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 voucher type. This report provides you with a detailed display of all postings, sorted by voucher type. In the "Posting journal report ? Selection criteria? window, you will find a selection list with all document types that trigger automatic postings.
  • 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 also specifies whether it should be an annual balance sheet, quarterly balance sheet, monthly balance sheet or periodic balance sheet. You also specify which currencies are to be displayed
  • List of totals and balances (SuSa)

    The report is a list of all balances based on the G/L accounts and business partners. Criteria can be assigned. This applies 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 presentation of all planned and actual cash inflows and outflows of the company. All cash accounts with the corresponding cash flows are taken into account. At the same time, the future cash surplus and cash deficit are calculated on the basis of the due dates of the individual accounts. In addition, future or recurring bookings Schedule. Planned incoming and outgoing payments that are not yet available in document form can also be phased in.
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APPENDIX DETAILS Automatic Journal Entries in SAP Business One

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