Case Study: Continuous Stock SAP Business One 9.2, version for SAP HANA SAP Business One 9.2 PUBLIC CASE STUDY: CONTINUOUS STOCK PUBLIC INTRODUCTION In this case study, you will perform the following tasks: Check company settings for inventory valuation Create items with different valuation methods View the accounting effect of each valuation method PREREQUISITE: 1. Use the demo database for SAP Business One 9.2, version for SAP HANA or SAP Business One 9.2 2. Credentials: User code: manager; Initial Password: manager TASK 1 You want to familiarize yourself with the settings for inventory valuation in your company Check if the system is set up for perpetual inventory and whether this setting can be changed? What is the default valuation method set for the company? Are item costs managed at the warehouse level? Review the company settings for inventory valuation TASK 2 The company is purchasing a new product from vendor V1010. The item is a type of processor. The warehouse manager for the main warehouse wants this item managed with standard costs. The purchasing manager has made verbal arrangements with the vendor to have five (5) delivered for a price of 100 each. The warehouse manager is annoyed because the items have already been delivered without a purchase order and are sitting in the loading dock waiting to be received. A short time later, the warehouse manager asks you to purchase another five (5) for the main warehouse. The vendor tells you that the processors will cost 200 each on this order because this type of item often has price fluctuations. When you receive the item into stock, the warehouse manager asks you to check to ensure that the posting for the item uses the standard cost value. CASE STUDY: CONTINUOUS STOCK PUBLIC Create an item that is managed with standard cost valuation. Receive the quantity of 5 for this item into stock at a vendor price of 100, Receive a second shipment from the vendor with a quantity of 5 at the vendor price of 200, Check the posting to ensure that the value of the stock is using the standard price. How does the cost display in the accounting posting for the goods receipt PO? TASK 3 The company president has decided to open a new warehouse in the northern region. Set up a new warehouse for the northern region TASK 4 The management decides that the processor item will be set up as a FIFO item in the northern warehouse. The warehouse should always carry a minimum quantity of 20 in this warehouse. Make the settings to manage this item with the FIFO valuation method and order a quantity of 20 from the vendor. When you speak with the vendor, the vendors tells you there is a shortage of the item. They can give you a price of 100 for the first 10 you order, but the second 10 have a price of 200 each After you receive the item quantities into stock, check the accounting postings for the document to ensure they were received at the correct prices. Set up the same product for FIFO valuation in a different warehouse. Can you use the same item number or do you need to create a separate item? Order and receive the item into stock in the warehouse with the appropriate pricing Check the accounting postings from the receipt document. TASK 5 A customer in the north (C42000) wants to buy 30 processors. The price to the customer for each processor D 2016 SAP SE. All rights reserved 3 CASE STUDY CONTINUOUS STOCK PUBLIC should be 300 Make sure that the delivery of this item is as cost effective as possible by delivering all available quantities from the processors from the northern warehouse. Any additional quantities should be delivered from the main warehouse. After the delivery, check the accounting postings to make sure the values are correct. Create a sales order customer C42000 for 30 processors. How can you check that the majority of the delivery will be from the northern warehouse? How can you ensure the customer receives the quantities they need? Deliver all the items to the customer. Check the postings from the delivery TASK 6 An auditor asks for costing data on the processor items. She wants you to explain how the items are managed in purchasing, inventory and sales. Why do the reports show these values? Run the appropriate warehouse report to see the changes in stock values and explain why the stock is tracked and valued in this way. 2016 SAP SE All rights reserved Case Study: Continuous Stock SAP Business One 9.2, version for SAP HANA SAP Business One 9.2 PUBLIC CASE STUDY: CONTINUOUS STOCK PUBLIC INTRODUCTION In this case study, you will perform the following tasks: Check company settings for inventory valuation Create items with different valuation methods View the accounting effect of each valuation method PREREQUISITE: 1. Use the demo database for SAP Business One 9.2, version for SAP HANA or SAP Business One 9.2 2. Credentials: User code: manager; Initial Password: manager TASK 1 You want to familiarize yourself with the settings for inventory valuation in your company Check if the system is set up for perpetual inventory and whether this setting can be changed? What is the default valuation method set for the company? Are item costs managed at the warehouse level? Review the company settings for inventory valuation TASK 2 The company is purchasing a new product from vendor V1010. The item is a type of processor. The warehouse manager for the main warehouse wants this item managed with standard costs. The purchasing manager has made verbal arrangements with the vendor to have five (5) delivered for a price of 100 each. The warehouse manager is annoyed because the items have already been delivered without a purchase order and are sitting in the loading dock waiting to be received. A short time later, the warehouse manager asks you to purchase another five (5) for the main warehouse. The vendor tells you that the processors will cost 200 each on this order because this type of item often has price fluctuations. When you receive the item into stock, the warehouse manager asks you to check to ensure that the posting for the item uses the standard cost value. CASE STUDY: CONTINUOUS STOCK PUBLIC Create an item that is managed with standard cost valuation. Receive the quantity of 5 for this item into stock at a vendor price of 100, Receive a second shipment from the vendor with a quantity of 5 at the vendor price of 200, Check the posting to ensure that the value of the stock is using the standard price. How does the cost display in the accounting posting for the goods receipt PO? TASK 3 The company president has decided to open a new warehouse in the northern region. Set up a new warehouse for the northern region TASK 4 The management decides that the processor item will be set up as a FIFO item in the northern warehouse. The warehouse should always carry a minimum quantity of 20 in this warehouse. Make the settings to manage this item with the FIFO valuation method and order a quantity of 20 from the vendor. When you speak with the vendor, the vendors tells you there is a shortage of the item. They can give you a price of 100 for the first 10 you order, but the second 10 have a price of 200 each After you receive the item quantities into stock, check the accounting postings for the document to ensure they were received at the correct prices. Set up the same product for FIFO valuation in a different warehouse. Can you use the same item number or do you need to create a separate item? Order and receive the item into stock in the warehouse with the appropriate pricing Check the accounting postings from the receipt document. TASK 5 A customer in the north (C42000) wants to buy 30 processors. The price to the customer for each processor D 2016 SAP SE. All rights reserved 3 CASE STUDY CONTINUOUS STOCK PUBLIC should be 300 Make sure that the delivery of this item is as cost effective as possible by delivering all available quantities from the processors from the northern warehouse. Any additional quantities should be delivered from the main warehouse. After the delivery, check the accounting postings to make sure the values are correct. Create a sales order customer C42000 for 30 processors. How can you check that the majority of the delivery will be from the northern warehouse? How can you ensure the customer receives the quantities they need? Deliver all the items to the customer. Check the postings from the delivery TASK 6 An auditor asks for costing data on the processor items. She wants you to explain how the items are managed in purchasing, inventory and sales. Why do the reports show these values? Run the appropriate warehouse report to see the changes in stock values and explain why the stock is tracked and valued in this way. 2016 SAP SE All rights reserved