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SAP Product BriefSAP Solutions for Small Businesses andMidsize CompaniesSAP Business OneObjectives 2015 SAP SE or an SAP affiliate company. All rights reserved.Warehouse andProduction Managementwith SAP Business One SolutionBenefitsQuick Facts

ObjectivesSolutionBenefitsQuick FactsReal-time inventory and productionmanagementReal-time inventory and productionmanagementInventory represents one of the largest expenses for many small andmidsize businesses. Balancing accurate inventory management withcost-effective production is crucial for delivering on promise and keepingcustomer satisfaction high. The SAP Business One application offersbest-practice functionality to help you meet your inventory and productionmanagement requirements.In order to improve on-time delivery andreduce shortages without maintaining surplus inventory, businesses need an integratedapplication to manage inventory accuratelyacross multiple warehouses and locations.The application should provide a number ofinventory valuation models and supportconsignment and drop shipping. It shouldfacilitate core production planning, includingmaterial requirements planning and production orders management, and providemultiple types of bills of materials (BOMs).It should give you real-time access to accurate information on inventory and productionorders from your desktop or mobile device,whether you are in the office, at the warehouse, or at a remote location.SAP Business One provides exactly this kindof support, and powered by the SAP HANA platform, it provides the latest in in-memorycomputing technology at a price you canafford. Available in the cloud or on premise –the choice is yours.2 / 12 2015 SAP SE or an SAP affiliate company. All rights reserved.

ObjectivesSolutionBenefitsQuick FactsOptimized inventory and productionprocessesOptimized inventory and productionprocessesSophisticated inventory tracking and costingComprehensive available-to-promisefunctionalityEfficient management of stock movementsBOMs and production ordersMaterial requirements planningProduction and warehouse reportsThe SAP Business One application helpsstreamline your inventory and productionmanagement processes. It can help managedetailed warehouse data, optimize stock locations, track and record stock movements, andexecute production orders (see the table onnext page).An integrated application, SAP Business Onereliably synchronizes your inventory, order,and financial accounting data. The softwareautomatically values each goods movementand cost and price change, eliminating anyneed for manual interaction and reducingassociated errors and their costs.The software’s warehouse and inventorymanagement features provide reliable information about inbound and outbound shipments as well as current inventory levels soyou can cost-effectively manage your supplychain and increase customer satisfaction. Youcan keep track of product inventory, quantityat each warehouse, movement history, andstocking status from your desktop or mobiledevice.Using the application’s integrated productionfunctionality, you can manage various typesof BOMs and link your warehouses with yourorder processing and production operations.Additionally, you can plan material andresource requirements for multilevel production processes and maintain an optimumlevel of inventory.3 / 12 2015 SAP SE or an SAP affiliate company. All rights reserved.

ObjectivesSolutionBenefitsQuick FactsOptimized inventory and productionOptimized inventory and productionprocessesSophisticated inventory tracking and costingComprehensive available-to-promisefunctionalityEfficient management of stock movementsBOMs and production ordersMaterial requirements planningProduction and warehouse reportsWAREHOUSE AND PRODUCTION MANAGEMENT FEATURES IN SAP BUSINESS ONE Warehouse and InventoriesStock MovementsProduction and MaterialRequirements PlanningRecord goods receipts and goodsManage inventories in multipleissues, and track stock transferswarehouses and locations usingbetween warehousesFIFO, moving average, serial orbatch, or standard costing; performavailable-to-promise checksMaintain multiple units of measureand item prices in local and foreigncurrencyEnable consignment, drop shipping, Issue and release production ordersand back-to-back ordersmanually and by back flushManage inventory by bin location in Use the pick-and-pack managerwarehousesfunctionality to fill deliveriesGenerate comprehensive item list,transaction, and valuation reportsCreate and maintain multilevel billsof materials (BOMs) containingitems, resources (capacity), and text(instructions)Plan material requirements usingthe material requirements planningwizardPerform inventory and cycle counts Globally maintain prices for BOMs4 / 12 2015 SAP SE or an SAP affiliate company. All rights reserved.

ObjectivesSolutionBenefitsQuick FactsSophisticated inventory trackingand costingOptimized inventory and production processesSophisticated inventory tracking and costingComprehensive available-to-promisefunctionalityEfficient management of stock movementsBOMs and production ordersMaterial requirements planningProduction and warehouse reportsSAP Business One provides comprehensivesupport for inventory tracking and valuation.It supports multiple unit types, so you canpurchase and sell your inventory in differentunits – such as buying in cases and selling inindividual bottles. You can set up warehousesin zones, managing inventory by its bin location in each warehouse.The application lets you create an unlimitednumber of price lists, integrate multiple currencies, preassign prices to specific customers, and define discount rules that are automatically applied to transactions with vendorsand customers. Special pricing tools allowyou to manage discounts based on volume,cash, or customer accounts.The software supports both serial and batchnumber management. You can generateand assign serial or batch numbers to itemsreceived from vendors and draw from available batches when items are released. Youcan integrate bar coding to pick or transferitems between locations.Costing methods – such as FIFO, movingaverage, serial and batch, and standard price– are fully integrated to give you a deepunderstanding of your item costs, letting youaccurately define prices and item discounts.5 / 12 2015 SAP SE or an SAP affiliate company. All rights reserved.

ObjectivesSolutionBenefitsQuick FactsComprehensive available-to-promisefunctionalityOptimized inventory and production processesSophisticated inventory tracking and costingComprehensive available-to-promisefunctionalityEfficient management of stock movementsBOMs and production ordersMaterial requirements planningProduction and warehouse reportsWith SAP Business One, you can performinstant availability checks and track itemstock levels with real-time visibility of theinventory you have “available to promise.”The software provides you with quantitydetails, adjusted by what is already committed to other customers, incoming purchases,and production orders.Thanks to the power of SAP HANA, availableto-promise (ATP) checks occur in real time.You can propose new delivery schedules, control delivery quantities, and reschedule deliveries on the fly. And before you put your plansin action, you can simulate the impact of anyplanned adjustment.The ATP function takes into account itemsthat move inventory out of your warehouse,such as: Sales orders with positive quantity Accounts receivable reserve invoices withpositive quantity Inventory transfer requests Production orders Purchase orders with negative quantity Accounts payable reserve invoices withnegative quantityWith the power of SAP HANA, SAP Business One letsyou simulate the impact of schedule adjustmentsbefore you put plans into action.6 / 12 2015 SAP SE or an SAP affiliate company. All rights reserved.

ObjectivesSolutionBenefitsQuick FactsEfficient management of stockmovementsOptimized inventory and production processesSophisticated inventory tracking and costingComprehensive available-to-promisefunctionalityEfficient management of stock movementsBOMs and production ordersMaterial requirements planningProduction and warehouse reportsSAP Business One records goods receiptsand issues in any warehouse and allows you totrack your stock transfers from one warehouseto another. The application can integrate individual item prices or price lists, updating inventory valuation at the same time. It also fullyintegrates inventory and accounting transactions. As a result, when stock levels areadjusted, inventory accounts are immediatelycredited or debited, and applicable inventoryvariances are accounted for as soon as a stockmovement is posted.The pick-and-pack manager function lets youcreate pick lists rapidly and pull the listed itemsfrom the inventory. You can perform cyclecounts while orders are received and shipped, so business activity does not have to bedelayed to perform stocktaking. If the cyclecount shows a level below the minimum stockpoint or a stock level discrepancy, the softwarenotifies those in designated roles and purchasing managers.The inventory count functionality allows youto record initial quantities, perform inventorytracking, and post stock differences by warehouse, item, vendor, or any custom-definedproperty. Stocktaking forms are generatedand printed using the print layout designeror the SAP Crystal Reports software inSAP Business One.7 / 12 2015 SAP SE or an SAP affiliate company. All rights reserved.

ObjectivesSolutionBenefitsQuick FactsBOMs and production ordersOptimized inventory and production processesSophisticated inventory tracking and costingComprehensive available-to-promisefunctionalityEfficient management of stock movementsBOMs and production ordersMaterial requirements planningProduction and warehouse reportsSAP Business One supports all your basicrequirements for production activities byenabling you to manage BOMs, productionorders, and material requirements accuratelyand efficiently.The application simplifies the definitionand management of BOMs for production,assembly, and sales. In addition to items,you can include resources in all BOM types.A resource might be equipment, enabling youto record capacity, or text, such as specificinstructions. For example, with a productionBOM, you can document the type, quantity,and price of materials needed to manufacturethe final products; the key resources needed;and specific routing instructions as well asquantity available. Once BOMs have beendefined, production orders can be createdand released. Component and resourceneeds, costs, and materials availability areautomatically added to your work orders.This provides for accurate allocation of rawmaterials and resources to products andsupport for volume control.You can initiate and track the productionprocess and move the materials used in theprocess through your organization. For example, once a production order is released to theshop floor, SAP Business One can automatically issue transactions for componentsneeded to produce the parts.8 / 12 2015 SAP SE or an SAP affiliate company. All rights reserved.