Transaction digestion

I will give you one quick tip to allow orders to be entered with direct payment. Please enter a default customer in the G/L Account Determination | Sales tab. For this purpose, I have created a customer for Bridge Street, where we will be selling the lemonade first. Transactions are entered using the Sales AR Menu using the A/R Invoice + Payment form:

Since we are not officially writing a quote and then converting it to a sales order with appropriate payment means, we used the A/R Invoice + Payment.

When entering an invoice via A/R Invoice Plus Payment, it is assumed that we will immediately receive the payment. Therefore, when entering the data in the form, SAP automatically prompts us with a Payment Means form:

OK. We just entered the first transaction. In order to understand the underlying consequences, let's investigate the CoA (seen in the following screenshot). How did this first transaction impact the numbers in the underlying accounts?

This looks good. We received the money and it shows up in the relevant account. However, it is not quite right yet because to sell the lemonade, we really need to purchase the raw materials first. Let's see how our inventory looks. How does the inventory tracking system honor the situation that we sold something that was not available?

In the following screenshot, we see the default warehouse accounts for a quantity of -1. The key setting that allowed this to happen can be found in Administration |Setup | Document Settings | General Tab.

You can see the settings in the following screenshot. We specifically allowed the release that may cause a negative stock:

To continue working with the system, we will now purchase the relevant raw materials and produce the Lemonade Basic in sufficient quantities. I will create a PO and use the SAP Business ONE feature to directly convert the PO (Purchase Order) into an A/P Invoice. When clicking on the Copy button on the right-hand bottom side of the screen, you will see the available options:

I create a PO and copy it to an Invoice. When running the inventory status report, it is obvious that the stock levels of each raw material have increased. However, the finished good Lemonade Basic still accounts for -1. Why is that? The finished good Lemonade Basic has to be produced first because it is a BOM:

A production order will help generate the required inventory. I entered the default status of Planned. In the inventory status report, this would be accounted for with the status of Planned. This would be an indication that the production is planned. However, to receive the product Lemonade Basic from production, we need to change this status to Released and complete the Receipt from Production form. Enter the production order number 1 in the Order Number field, and all of the relevant details will automatically be displayed. I did not provide screenshots for this as you will be able to find this on your own as a practice test.

A subsequent check in the CoA shows that the numbers now look better.