• The sales process begins by a sales quotation. The seller creates a sales quote in SAP and sends to the potential customer who has requested for a quote on a specific item. (SAP Sales Quotation)
• Once the customer is pleased and agrees with the quote, they send the seller purchase order to make an order for the item. (Outside SAP)
• The seller, upon receiving the purchase order, they will post a sales order in SAP using the customer’s purchase order as a reference. (SAP Sales Order)
• Once the product is ready to be delivered to the client, the seller will post a delivery note document to remove the product from the system. (SAP Delivery Note).

The journal entry for the delivery note is:

Dr. Stock a/c & Cr. Cost of Sales a/c

• The seller will also post an invoice in reference to the delivery note in (4) above (SAP A/R Invoice)

The journal entry for the invoice is:

Dr. Customer a/c & Credit Sales a/c

• The final document in this cycle is the Incoming Payment that is posted when we receive payment            of the item from the client. (SAP Incoming Payment)

The journal entry for the incoming payment is:

Dr. Bank a/c and Cr. Customer a/c

I am Caroline Ininga Majute,  a SAP Business One Consultant based in Nairobi, Kenya. For more inquires about sap business one, contact me at: [email protected]