SAP Business One - Standard Inventory Management

SAP Business One for Wholesale Distributors from Aether Consulting

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SAP Business One delivers integrated accounting/finance, sales quotes/orders, CRM, item/inventory  management, purchasing, MRP (materials resource planning), warehouse management, and pick and pack right out of the box.

SAP Business One distribution software helps your business to:

Key Features and Functionality

SAP Business One brings you best practices for wholesale distribution software in 3 ways:

  1. Item and Vendor Master:  The item master records keep track of items that are sold, purchased, and inventoried by your business.
  2. Purchasing Management:  Easily manage your entire procurement process from purchase order creation to vendor invoice payment.  With a built in MRP.
  3. Warehouse and Accounting Integration:  Seamlessly connecting your purchasing with warehouse management and accounting in one system.

Let's talk further about what is included in each of these elements...

Item Master Data in SAP Business One - Manage Items

Item master data can be applied to inventory, purchasing, and sales items as well as fixed assets and classified based on configurable item groups and properties. Item master data contains all information necessary for an efficient purchasing process, such as item number, description, purchasing and packaging units of measure, dimensions, weight, prices and tax types.

Take a look at the item master screen in SAP Business One to see how this wholesale distribution management software can track your inventory items....

SAP Business One Item Master Display full image

Purchasing Management with SAP Business One Purchasing management is a core functionality of SAP Business One that enables you to use its integrated capabilities to manage your entire procurement process from purchase order creation to vendor invoice payment.  Manage purchase orders, goods receipts, items, and vendors, and integrate your warehouse and accounting in SAP Business One. Download our Purchasing Management Fact Sheet

Purchasing Functionality in SAP Business One brings best-in-class wholesale distribution software capabilities to your fingertips:

MRP in SAP Business One

SAP Business One contains an MRP (Materials Requirements Planning) module.  In essence, this module looks at inventory levels, demand (such as sales orders and purchase orders), forecasts, and supply and presents to you recommended purchase orders and production orders to meet requirements.

The key to getting the most out of the MRP functionality in SAP Business One is understanding how inventory and demand are modeled and how the MRP run uses this information. Here is the definition of MRP as implemented in SAP Business One:

The current state of inventory is modeled through the levels of items on hand in each warehouse, supplemented by the items that are already on the way through purchase orders or production orders. In addition you can take into account Required, Minimum, Maximum or Minimum – Maximum inventory level of the item.

The current state of demand is modeled through open sales orders, sales quotations, blanket sales agreements, inventory transfer requests, recurring order transactions, reserve invoices, open production orders, and forecasts. Entire categories of demand can be included or excluded. For example, an MRP run can be configured to look only at sales orders and ignore forecasts or, alternatively, to have actual orders consume forecasted quantities to avoid inflating inventory.

The current state of supply is modeled through open purchase requests, purchase quotations, purchase orders, blanket purchase agreements, production orders and inventory transfer requests. Similar to the demand calculation, you can pick and choose which category to include in the supply state.

The result of an MRP run is a suggested set of purchase orders, production orders, purchase requests, purchase quotations or inventory transfer requests between warehouses. These recommendations can be converted easily to actual documents. If enough materials are not going to be on hand in time, the MRP run signals when a required quantity will not meet its due date based on its lead time. The recommendation report highlights proposed purchases or production orders that are past due. The MRP run does not suggest whether it would be better to delay the date at which the sales orders will be delivered or to attempt to rush the arrival of the needed items.

The reason to use MRP is simple: it replaces informal, ad hoc, error-prone production and purchase scheduling based on the instincts of one or two people with a more structured process that allows more people to participate using better information.

Warehouse and Accounting Integration in SAP Business One

SAP Business One provides you with powerful integration functionality, seamlessly connecting your purchasing with warehouse management and accounting in one system.

Here we will talk about how SAP Business One is not just purchasing management software, or warehouse management software -- but a comprehensive, distribution industry software.

Warehouse Management Application

Manage individual warehouses as well as group multiple warehouses into one location. Perform instant availability checks and track item stock levels, such as committed, ordered, or available items, by warehouse, individual item, and item group.  Easily transfer items between warehouse locations.

Integration happens seamlessly, transparently, and in real-time. It incorporates data writes, for example, posting a goods receipt automatically updates inventory in warehouse, as well as data reads, for example, vendor master data populates payment terms when an A/P invoice is created. In addition, documents can be used as basis for subsequent transactions. For example, all relevant data is copied when creating an A/P invoice based on a purchase order, while a document trail is stored linking all documents of a purchasing process for audit and analysis purposes.

Run Your Distribution Business in 1 Software

SAP Business One includes all the processes you need to run your entire business. Unlike niche solutions, it provides complete business management functions covering financials, sales, customers, inventory, and operations. And because it is designed specifically for small businesses, it can be installed quickly (typical implementation time is about two to eight weeks) and is straightforward to maintain and use.

Included in the software are all major functions:

Add-On solutions for SAP Business One in the Distribution Industry

Where functionality beyond the standard SAP Business One capabilities are needed, add-on modules that provide functionality typically seen in the Warehouse and Distribution industry include:

Learn more about Add-ons for SAP Business One in the distribution industry

Deploy SAP Business One for distribution in one of three ways:

  1. Cloud ERP Software:  SaaS (software-as-a-service), subscription-based software is sold on a per user / per month basis.  SAP Business One OnDemand is hosted by an approved data center.
  2. Hosted ERP Software:  SAP Business One is purchased as a one-time license fee, and you use a third-party hosting provider who runs the software on their servers.
  3. On Premise ERP Software:  SAP Business One is purchased as a one-time license fee, and you install the software on a server at your facility.

Call Aether Consulting and Seize Control of Inventory

Aether Consulting is a Michigan-based SAP Business One partner that is certified and authorized to sell, install, implement and train on SAP Business One.

We offer a no cost, no obligation discovery meeting -- learn if SAP Business One can meet your requirements and get a general idea on cost.

Call Aether Consulting today at 586-939-8028 or email