SAP Business One

SAP ERP is an enterprise resource planning software developed by German company.

• SAP stands for Systems Applications and Products in Data Processing.
• It is designed to manage every aspect from sales, procurement and customer relation to financial and operations.

The Procurement cycle of SAP :

In SAP we use the Transaction codes for for every section which are referred as t-codes.

• ME51N    -     Create Purchase Requisition.
• ME21N    -     Create Purchase Order.
• MIGO      -      When Goods are received.
• MIRO      -      When invoice is received.
• F-58        -      Payment with printout.

1. Purchase Requisition :

• First we instruct the purchase department to request a specific good or service for a specific time.
• Once the requisition has been assigned it is released for processing. The accepted quotations will generate records to perform price comparisons.

2. Purchase Order :

• It is the formal request to a specific vendor under the stated conditions.
• We list the items what are required with the specific quantity and price.

3. Goods Receipt :

• The goods receipt is generated when the shipment is done and the goods are received.

4. Invoice Processing :

• An invoice is created for the goods that are received from the vendor.

5. Credit Memo :

• If we need to have any kind of returns to the vendor we create a credit memo.
• We list the items and the quantity we are returning to the vendor.

6. Payment :

• Finally we do the payment for the goods that are received along with all the charges that are to be paid.
• Payment can be done in accordance with the payment terms.

The Relationship Map of the whole transaction can viewed to understand the flow of the transaction.

Advantages :

• Design too looks so simple and easily understandable.
• We can copy whole details from one section to the other section.
• Their is a relationship map for every transaction.
• We can have preview of the section before submit.
• When you submit before the finishing It shows an error log at the bottom which displays the fields that needed to filled before submit with a description.

Disadvantages :

• Expensive for small organizations.
• We needed to change the sections to create every transaction not in the same linked transaction like in stone profits.

*The screenshots in the blog are not from single transaction they are downloaded from google.