SAP Business One Financial Module Webinar Training

1. FINANCIALS
AND FIXED ASSETS
SAP Business One

2. FINANCIALS

3. Reflection Question:
The Chart of Accounts
 How are the Business Partner Master Data balances presented in the Chart of Accounts?
Control Account Debit Credit
Accounts Receivable Customer 105
Tax account Tax account 5
Income account Income account 100
A/R Invoice
Control Account
Accounts Receivable =

4. The Chart of Accounts
The chart of accounts is an index of all G/L accounts used by your business.
Chart of Accounts
G/L Account Determination
Good Receipt PO A/P Invoice Outgoing Payment A/R Invoice Payment Deposit
Automatic
Journal Entries
Manual Journal
Entries
Chart of
Accounts

5. Chart of Accounts Structure

6. Chart of Accounts Structure
Balance Sheet
Accounts
Accounts Payable
Account
Revenue
Account
Period End
Closing
Profit and Loss
Accounts
Level 1
Assets
Liabilities
Cap. + Res.
Turnover
Cost of Sales
Operating C.
Non-Operating
Tax + Extr.
Bank account
Account Type
General
Ledger

7. Chart of Accounts Structure in
Association with Financial Reports
Balance
Sheet
Balance Sheet
Accounts
Accounts Payable
Account
Revenue
Account
Profit and
Loss
Statement
Financial Reports
Trial
Balance
Profit and Loss
Accounts
Assets
Liabilities
Cap. + Res.
Turnover
Cost of Sales
Operating C.
Non-Operating
Tax + Extr.
Bank account
Account Type
General
Ledger
Period End
Closing

8. Levels in the Chart of Accounts
Fixed
Assets
Current
Assets
...
Tangible
Assets
Intangible
Assets
Land
& Buildings
Plant &
Machinery
Formation
Expenses
Patents, and
so on
Freehold
Land
Buildings
...
...
...
...
Title
Active
Account
Level 2 Level 3 Level 4 Level 5…
General
Ledger
Level 1
Assets
Liabilities
Cap. + Res.
Turnover
Cost of Sales
Operating C.
Non-Operating
Tax + Extr.

9. Manage the Chart of Accounts – Tasks 1
 Chart of Accounts window:
Add a new G/L account to an existing
title
View information about existing accounts
Update different properties of existing
accounts
 Edit Chart of Accounts window
Add a new title
Delete an account
Change the structure of the chart of accounts
and move titles and accounts
*You can also add a new account

10. Ice breaker

11. 2 truths, 1 lie

12. a. Titles accounts appear in blue.
b. Normal active accounts in black.
c. Accounts that were entered in the
G/L Account Determination window
(that is default accounts) are
displayed in red.

13. a. Titles accounts appear in blue.
b. Normal active accounts in black.
c. Accounts that were entered in the
G/L Account Determination window
(that is default accounts) are
displayed in red.

14. Questions?

15. POST JOURNAL ENTRY

16. Journal Entry
Manual
Journal
Entries
Journal Entries file
SAP Business
One
Document
Automatic Journal
Entries
A/R Invoice Incoming Payment Deposit
A/P Invoice Outgoing Payment
Good Receipt PO

17. Origin Documents
Reference
to Origin Document
Type and Origin
Document
Number

18. Journal Entry Form Fields
Document Header Data
Expanded Editing Mode for a Line Item

19. Journal Entry Form Fields

20. Reverse Transactions
Account 1
2050
Account 2
2050
Account 1
2050
Account 2
2050
Account 1
2050
Account 2
2050
2050 2050
 2050  2050
 2050  2050
-2050 -2050
Incorrect Posting
 0  0  0  0
 2050
 2050
 0
 0
■ Standard Reverse Transaction
■ Reverse Transactions with Negative Amounts
Increase in Totals
Reset of Totals
0
0

21. Canceling Transactions
50
50
Stock Acc.
Cost Acc.
100
Customer
100
Revenues Acc.
50
Cost Acc. Stock Acc.
50
Sales
Revenues
Customer
100
100
Sales Order Delivery A/R Invoice Credit Memo

22. The Reverse Option in a Manual
Journal Entry

23. Posting Tools
You can post a manual Journal Entry by:
 Entering a manual journal entry like we have just seen in the previous slides.
 Using a posting template
 As a recurring posting.
 From a journal voucher.

24. Posting Template with
Percentages
Credit %
Debit %
G/L Account /
BP Name
G/L Account /
BP No.
6320 Utilities 25
6321 Electricity 75
V550 Public service 100
Code: Utility Description: Utility Bills

25. Recurring Postings
Credit
Debit
G/L Account /
BP Name
G/L Account /
BP No.
620000 Property Rent 1000
161000 Girobank Account 1000
Code: Rent Description: Rental Payment
Frequency: On 10
Next Execution: 10/01/10
Valid to
10/12/16

Monthly

26. Recurring Postings
Credit
Debit
G/L Account /
BP Name
G/L Account /
BP No.
620000 Property Rent 1000
161000 Girobank Account 1000
Code: Rent Description: Rental Payment
Frequency: On 10
Next Execution: 10/01/10
Valid to
10/12/16

Monthly

27. Ice breaker

28. Tell Us Which Department You’re
in Without Telling Us Which
Department You’re in

29. a. 30 days, 60 days, 90 days
b. Doubtful accounts
c. Sales invoice

30. Accounts Receivable
Department/Credit and
Collections

31. Questions?

32. POST JOURNAL VOUCHER

33. Journal Voucher Example
A student intern helps the accountant in recording
manual journal entries to the accounting system.
The accountant wants to be able to review the journal
entries before they are registered permanently to the
journal entries file.
Best Option: journal vouchers

34. Journal Vouchers
Create Journal Voucher
Correct and Update

35. Journal Vouchers
Journal Entries File
Create Journal Voucher
Correct and Update
Journal Entries
File
Entries in
Journal
Voucher

36. The Journal Voucher Report

37. PAYMENT ON ACCOUNT

38. Payment on Account

39. RECONCILIATION

40. Internal Reconciliation Process
When user looks at the vendor’s account balance, it reflects the
advanced Outgoing Payment and the A/P Invoice transactions.
It is important for the user to reconcile the vendor master data
internally
The A/P Invoice should appear as closed for:
The Outgoing Payment
Reports as Aging and Doubtful debts

41. System Reconciliations
Debit Credit
System Reconciliations
Statuses:
–Full
–Partial
Debit Credit

42. System Reconciliation - Full
Reconciliation
Outgoing Payment based on an
A/P Invoice (or invoices)
A/P Invoice
1 2
Debit Credit
Bank Account 202
Vendor 202
Debit Credit
Vendor 202
Expense /
Clearing account
202
Automatic Internal
Reconciliation
in the
Vendor Master Data
2

43. System Reconciliation - Partial
Reconciliation
Outgoing Payment based on an
A/P Invoice (or invoices)
A/P Invoice
1 2
Debit Credit
Bank Account 202
Vendor 202
Debit Credit
Vendor 202
Expense /
Clearing account
202
Automatic Internal
Reconciliation
in the
Vendor Master Data
2
Balance Due: Credit = 102
Balance Due in the Vendors Liabilities Aging Report

44. System Reconciliation of
Interim Accounts
A/P Invoice
Good Receipt PO
Allocation account
Credited Debited

45. User Reconciliation – Manual Type
Selected Origin Posting Date Amount Balance Due Amount to Reconcile
IN 10.07 1000.00 1000.00 1000.00
IN 17.08 2000.00 2000.00 1500.00
RC 24.08 (1000.00) (1000.00) (1000.00)
RC 24.08 (1500.00) (1500.00) (1500.00)
IN 01.09 3000.00 3000.00
Business Partner Account
In this example, Customer Master Data
0.00
Manual Internal Reconciliation in the Customer Master Data

46. Manage Previous Reconciliations
Account
2000 5000
3000 2000
Cancel User
Reconciliation
Account
2000 5000
3000 2000

47. Ice breaker

48. House on Fire

49. “Your office is on fire,
and everyone is safe.
You have 10 seconds
to run through the
office and get one
thing you want to
save. What would you
grab?”

50. a. Chair
b. Iphone 13pro
c. Backup device

51. a. Chair
b. Iphone 13pro
c. Backup device

52. Questions?

53. POSTING PERIODS

54. Posting Periods – Process Overview
Fiscal Year: 2016
Settings Additional settings
Posting date
Sub-period
Sub-Periods: Months
2016-01
2016-02
2016-03
…….
Period End / Year End Closing

55. Defining Posting Periods and
Sub-Periods
1
2
3
4
Quarters
1
2
3
4
5
6
7
8
9
10
11
12
Months Days
Year
Fiscal Year
1

56. Posting Periods
The beginning of the fiscal year can only
be the first day of a month.
Create the oldest posting periods first.
Create a new posting period in advance.
No overlapping periods.

57. BANK RECONCILIATION

58. Bank Reconciliation

59. PERIOD CLOSING AND YEAR END CLOSING

60. Period-End Closing
Move all P&L account balances to the Retained Earnings
account and zero the P&L accounts
 Period End Closing
 Period End Tasks  Change Period Status to Locked
 Change to Closing Period

61. Period-End Closing: at the
Month End vs. at Year End
Move all P&L account balances to the Retained Earnings account and
zero the P&L accounts
*Optional
 Period End
Tasks:
 Year End Closing
 Period End
Closing
 Year End Tasks
 Change Period
Status to Locked
 Change Period
Status to Locked
 Change the Period
Status to Closing
Period
 Change to Closing
Period
Month End Closing
Year End Closing

62. Period End Tasks
Here are some examples for period-end tasks:
 Ensure period-end transactions were posted properly
 Post all Journal Vouchers
 Internally reconcile expense clearing accounts
 Print:
 Trial Balance
 Vendor Liabilities Aging and Customer Receivables Aging reports
 Inventory Audit report
 Financial Statements
 Review the open items list and close documents when possible

63. Year End Tasks
Here are some examples for Year-End Tasks:
Post doubtful debts
Post final transactions for the period in all modules
Close the last period of the fiscal year
Print any year-end reports, such as financial
statements
Set up a new fiscal year

64. Perform Period-End Closing
Move all P&L account balances to the Retained
Earnings account and zero the P&L accounts
 Period-End Closing
 Change Periods Status to Locked

65. Period-End Closing Utility
Debit Credit
Water Expense Account 11500
Period-End Closing Account 11500
Posting Date: December 31st
Period-End Closing period
Debit Credit
Period-End Closing Account 11500
Retained Earning Account 11500
Posting Date: January 1st
Following posting period
Accept and Post
Proposal
Proposal
Water Expense Account Balance
Automatic Journal Entries:

66. Quiz bee

67. What is the reason for defining
sub-periods to lock a past period

68. So that no additional
postings can be made
by any user that may
change the books.
This is very important
in legal purposes.

69. Questions?

70. FIXED ASSETS

71. Enable the Fixed Assets Solution
–Administration  System Initialization
 Company Details  Basic
Initialization
–Check the Enable Fixed Assets box:
New windows and fields will be available for
the user:
•Administration  Setup 
Financials  Fixed Assets.
•Financials  Fixed Assets.

72. The Life Cycle of an Asset Master
Data in SAP Business One
Definition Activation Depreciation Adjustments Retirement
Define an Asset
Master Data
Issue an A/P
Invoice/
Capitalization
document
Depreciation Run/
Manual
Depreciation
Fixed Asset
Transfer (Asset
Class
Transfer/Asset
Transfer)
Revaluation/
Appreciation
A/R Invoice/
Retirement
document
Item Type: Fixed
Assets
Capitalization
Date
Depreciation Run
posts all planned
depreciations
If A/R Invoice,
check Sales
Item
Fixed Assets
Sub Ledger

73. Asset Master Data

74. Fixed Assets Capitalization
A/P Invoice Capitalization
Debit Credit
Vendor 3200
Acquisition
Clearing Account
3200
Debit Credit
Acquisition
Clearing Account
3200
Asset Balance
Sheet Account
3200

75. Fixed Assets Depreciation

76. Depreciation Run

77. Depreciation Run

78. Fixed Assets Retirement
A/R Invoice Retirement
Debit Credit
Customer 2000
Revenue Clearing
Account
2000
Debit Credit
Revenue Clearing
Account
2000
Asset Balance
Sheet Account
2000

79. Asset History Sheet
The Asset History Sheet report:
Can be issued for all fixed assets,
Displays all posted asset transactions in a fiscal year,
Presents the assets for each Balance Sheet account.

80. Virtual Fixed Asset
Fixed assets with the virtual item function:
• Allows definition of a template item
representing the fixed asset.
• Enables the company to purchase identical fixed
assets in large quantities for internal use.
• Automatically creates the same quantity of asset
master data records, and capitalize them for you.
• Optionally, you can manage serial numbers for
the generated virtual fixed assets.

81. Creating a Virtual Fixed Asset

82. Capitalizing Virtual Fixed Assets
Without Enforce Serial Numbers

83. Capitalizing Virtual Fixed Assets
Without Enforce Serial Numbers

84. Capitalizing Virtual Fixed Assets
With Enforce Serial Numbers
LT22005541 LT22005542 LT22005543
Fixed Asset Inventory item

85. Quiz bee

86. This is a report for the simulation of
future depreciation. The report date
determines the future fiscal year, up to
which the simulation should be carried
out, or the fiscal year in which
simulation to a given period should be
carried out.

87. Asset Depreciation Forecast
Report

88. Questions?

89. AGSPHOfficial 2nd Floor, 224 Nicanor Garcia Street,
Barangay Bel-Air, Makati City, Philippines
https://ags.com.ph/
THANK YOU!