SAP Business One / SAP B1 ERP for Consumer Products Industry

How SAP Business One Boosts Efficiency in Consumer Goods

The consumer products industry, a highly dynamic and versatile sector, undergo constant development. Innovative software solutions are essential to stay competitive and integrate business processes effectively. SAP Business One (SAP B1) is a powerful tool for consumer products industries, enabling efficient management of all business aspects from any location. Migrating to SAP Business One is optimal for addressing the industry’s challenges.

Here’s how SAP Business One benefits the consumer products industry:

Order to Cash through SAP Business One for Consumer Products

The “Make to Stock” and order process includes:

Contract and Order Creation with SAP Business One for Consumer Products:

Upon receiving a blanket agreement or contract from a customer for a specific period, a purchase order is created in SAP B1 as either a blanket agreement or sales order. This facilitates continuous production of finished goods (FG) according to a periodic order.

Invoicing and Payments through SAP Business One for Consumer Products:

This process is followed by accounts receivable invoices and incoming payments. Key reports include customer receivables, cash flow, and sales analysis.

Procure to Pay through SAP Business One for Consumer Products

Planning and Procurement with SAP Business One for Consumer Products:

Utilizing the Material Requirements Planning (MRP) function, monthly procurement planning is initiated, resulting in the auto-creation of purchase requests.

Goods Receipt and Payments with SAP B1 ERP:

Goods receipt is processed against the purchase request by the stores, followed by accounts payable invoices and outgoing payments. Important reports include vendor payables, cash flow, and purchase analysis.

Sales Order in SAP B1 ERP

Order Creation: Sales orders are generated from the blanket agreement or upon raising a purchase order (PO) or confirming a quotation. The Document Management System (DMS) allows for the attachment of a soft copy of the PO. Payment terms and delivery dates are set, and order acknowledgments are sent via email through SAP B1.

Sales Quote

Quotation Conversion: Once a sales quotation is confirmed, it is converted to an order in SAP Business One, closing the quote.

MRP

Production Planning: MRP is used for production planning and procuring required raw materials based on stock levels and demand. Purchase requests for raw materials are auto-created according to order demands, making this a critical aspect of the “Plan to Produce” process.

Purchase Request

Auto-Creation and Manual Requests: MRP auto-creates purchase requests, which can also be manually generated by departments for office equipment, consumables, etc. Purchase orders (PO) are then generated based on these requests.

Purchase Order

Creation and Approval: POs are created based on purchase requests and an approval procedure. For items with a default supplier, POs are automatically generated by MRP, pulling unit costs from the set price list.

Goods Receipt Purchase Order (GRPO)

Inventory Management: When a vendor delivers items, a goods receipt against the PO is posted, debiting the inventory and adding stock to the warehouse (Warehouse Management System – WMS).

Supplier Payment

Invoice and Payment: Based on the GRPO, a supplier invoice is generated, and outgoing payments are processed.

Production

Order Creation and Inventory Management: Production orders are auto-created based on the Bill of Materials (BOM), considering demand and stock levels. Raw materials are issued at each production stage, and upon completion, the finished goods are added to inventory (Product costing is a critical aspect of SAP Business One).

Invoice

Accounts Payable: Accounts payable invoices are created, and payment entries are posted. The open document system ensures proper control.

In conclusion, SAP Business One significantly enhances the efficiency and overall manufacturing operations of the consumer products industry.

If you would like to know more about our ERP services, please visit us at: https://www.emerging-alliance.com/

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