Simplify Your Financial Operations with SAP Business One

Objective:

Integrated and comprehensive financial management

As your enterprise grows, so do the demanding situations associated with managing its financials. without an incorporated and automated financials control solu­tion, improved commercial enterprise complexity can crush your existing monetary and accounting procedures, giving rise to inefficiencies and inaccuracies that may result in overlooked opportunities and lost sales.

The SAP Business One Financials Management application provides a complete and integrated set of tools to effectively manage and automate all accounting and financial processes in your growing company. As a core component of SAP Business One, financial management includes all important accounting processes, e.g. ledger and journal entries, accounts receivable and accounts payable. The software automatically triggers accounting in real time when business transactions occur.

SAP Business One Financials Management supports automatic tax calculations and transactions in multiple currencies. Posting templates and recurring bookings further optimize and simplify your accounting processes.

With SAP Business One Financials Management, you can manage cash flow, track budgets, and compare actual and planned figures at any time to get an accurate and up-to-date picture of your business. You can easily create profit or cost centers. and then allocate income and expenses according to distribution rules, which can be customized specifically for your business needs.

Solution:

Capture all your financial information in a single, scalable solution

Handle all your accounting transactions effectively and comprehensively with SAP Business One (see the table on the next page). You can use its chart of accounts templates as is or customize them to match your business requirements. Because the templates incorporate country-specific legal requirements, such as segmentation or specific numbering, you can comply more efficiently with local laws and regulations. Wherever you conduct business, the application supports you with multiple global financial reporting standards and currencies, availability in 27 languages, and localization for 42 countries.

Transactions in SAP Business One automatically trigger corresponding journal entries in real time. For example, a goods receipt posting automatically creates the necessary journal entry to adjust inventory levels and valuation and updates corresponding expense accounts. You can configure primary accounts, using rules and priority, so the right general ledger accounts are used in each transaction. For transactions that repeat from period to period, recurring postings and posting templates simplify redundant tasks and eliminate the potential for errors. You can use journal vouchers to create multiple journal entries and then process these vouchers in batch mode, posting all entries simultaneously.

Manage cash flow, track assets, and control budgets

SAP Business One provides intuitive features and reports that help you run your business more profitably. You can optimize liquidity by accurately forecasting your cash flow and cash requirements and efficiently handle payment terms, customer reminders, and cash collections. For example, you can set up workflow-based alerts that notify you of pending payments that may affect your cash flow. In addition, you can track customers that have unpaid invoices and automatically generate reminder letters based on the length of delay, the payment terms, and the amount due. Because SAP Business One runs on the SAP HANA platform, robust functionality and in-memory computing power take cash-flow forecasting to the next level of performance by including sales orders, purchase orders, own payments, recurrent postings, and other critical, cash-related transactions in real-time calculations.

Using multibranch cost accounting, you can track departments, divisions, or various geographies separately to determine how much spending is being generated for various business purposes. You can manage direct and indirect expenses and revenues, such as administration, advertising, and financing costs that are spread across multiple business activities, by setting up distribution rules for automatic allocation of revenues and expenses.

Accelerate month-end close and enhance compliance

The month-end closing process is crucial to all organizations. The goal is to compile accurate financial statements that management can use to make business decisions. SAP Business One accelerates the month end close by automating business activities, thereby increasing efficiencies and reducing errors. You have quick access to real-time, reliable financial information, which further reduces the time it takes to close your books at the end of every period.

SAP Business One automatically calculates taxes, such as sales tax, value-added tax, and withholding tax, for each line item on each transaction, taking into account country specific allocation and reporting requirements. With automated computation and reporting of tax processes, you can comply fully with the legal requirements of each country where you do business.

Transform business planning and audits with sharper insight

To make sure you stay on track, you can set up budgets in your local currency using various budget allocation rules and then accurately track corresponding expenses. Alerts can either inform users whenever a transaction exceeds a defined budget limit or automatically block transactions that exceed limits. You can create a detailed profit and loss statement based on direct and indirect revenue and expenses as defined in the allocation rules. And you can choose between annual and monthly display formats and compare the results for multiple periods.

A wide range of financial reports are available, such as balance sheets, profit and loss statements, profitability reports, multiperiod comparisons, aging reports, and budget reports. Using interactive drill-down and drag-and-relate functionality, you can click through the relevant data and get the answers you need.

Because SAP Business One is powered by SAP HANA, your business reporting is transformed. In addition to using the reports and dashboards that are standard with SAP Business One, you can also run multidimensional analyses on live data. As a result, you have sharper insight into the bigger financial picture before making business critical decisions.

Simplify management of multiple branches or business units

Different business units of your company may have different reporting needs but may share users, business partners, customers, and other master data. Maintaining multiple systems or databases for different business units is inconvenient and may cause data inconsistency. Multibranch capabilities in SAP Business One enable you to use a single database when working across branches.

With its multibranch capability, you use one instance of SAP Business One to:

• Handle the key financial processes for different business units or branches
• Create and maintain separate documents such as invoices for separate business units
• Manage bank transactions with centralized payment capability
• Carry out legal and financial reporting for each business unit

Maintain end-to-end control of your company’s fixed assets

With fixed assets data maintained in item master data, you can track fixed assets through their lifecycle, depreciate as needed, or transfer to other cost centers when necessary. You can plan the depreciation of your fixed assets using popular depreciation methods such as straight line period control, declining balance, or multilevel. Depreciation can be calculated with the monthly base. You can appreciate a fixed asset by creating a manual depreciation document or perform a fixed asset revaluation.

SAP Business One enables you to purchase and sell your fixed assets using documents such as an accounts payable or accounts receivable invoice, a credit memo, or a reserve invoice. You can change the asset class of a fixed asset by creating a transfer document. In addition, you can apply more than one set of accounts to a fixed asset, so that the asset value and transactions can be posted to more than one accounting area at the same time.

Realize bottom-line benefits with an integrated solution

SAP Business One is a comprehensive, integrated solution that helps streamline your financial operations. You can:

• Accelerate transactions and improve cash flow by automating your everyday financial tasks and integrating them in real time with other business processes, such as purchasing and sales.
• Get an accurate picture of your business with better cash flow management, and stay on top of actual versus planned figures with budget tracking.
• Maintain control of your fixed assets throughout their lifecycle.
• Enhance the efficiency and accuracy of credit card collections and bank reconciliations through direct, online connections with financial institutions.
• Compile up-to-date financial statements to support business decision making by reducing the time it takes to close your books at the end of every period.
• Comply swiftly and fully with the legal requirements of each country where you do business • Meet your company’s fiscal responsibilities by streamlining the computation, payment, and reporting of taxes.
• Satisfy the financial analysis and reporting requirements of your business and make better top-level strategic decisions with powerful analytics.

Sap Business One