SAP ByDesign Finance

SAP ByDesign Finance

The financial system supports the following main topics: Financial and Management Accounting, Cash Flow Management and allows to generate reports for external entities such as: Balance Sheet, Income Statement, Statement of Cash Flows and internal reporting and controls in the organization, by segment, profit center and cost center.

The system supports local set of books, and additional books can be registered, such as Set of Books US-GAAP, Set of Books IFRS and the like.

Generally, the system supports automated processes, such as receiving bank pages, payment runs, etc., and expects to control and handle the exceptions only.

The end-of-period and end-of-year processes are performed using a uniform method and simplify the operation of the system.

The system has support for various methods of income recognizing and in accordance with different accounting principles.

AR Account Receivable

Includes the main processes:

  • Customer invoice– Invoice production (manual production from an invoice proposal received from the sales process, project and the like, automatic creation by Invoice run, and manual creation without attribution, for example, when selling a property).
  • Dunning– Collection process from customers, including Dunning run and end of letter / email to customer. There are reports showing the number of days that customers did not pay. You can block a client from dunning, which means waiting with him during the collection process. You can set an expiry date that awaits with the customer. You can also set a fee to be added to the collection letter.

AP Account Payable

Supplier invoices can be created in the following ways:

  • Manual– In the supplier invoice work center select records that are waiting for the invoice, such as Delivery inbound for example and then create an invoice. Comparing with the actual output, updating and receiving. Of course, if there are gaps, GR / IR Clearing should be addressed.
  • Invoice run– Scheduling a regular cycle to create vendor invoices. You can set up an invoice validity, let’s say a rental invoice that comes once a month, so you can set the contract term.
  • Manual scan– Scans the invoice and creates a PDF file as well as a TXT / RTF file which is saved in a particular directory. You need to install SAP Collaboration window through which you get the file, check and handle the problems, and then you can absorb and continue the process.

Expense and Reimbursement Management

The process can be done in 2 ways:

  • Directly by the employee at the self-service work center
  • By another person (manager / secretary) at the Travel & Expense work center

Expenses can be absorbed by scanning the receipts for the system.

You can also add to the Audit and Approval process.

Payment

The system supports automated processes, payment runs, the transfer of money to suppliers and employees (sample reimbursement).

There are different payment methods. Some of the payment methods are relevant to certain countries, such as SEPA direct debit relevant to Germany, or Bill of exchange relevant to France and more.

Standard electronic payment formats are ready. If a new format is required, then it can be defined:

  • Business Configuration– If a simple format is required, the system’s ready configuration capabilities can be used.
  • SAP Cloud Applications Studio – for cases where a more complex format needs to be developed.

There is also integration with external payment providers like credit clearing companies, banks and the like.

Processing Bank Statements

A process of absorbing bank pages and making automatic adjustments to the books. There are many bank file formats. Common formats have been defined in the system. Bank lines that the system fails to match will be manually updated by the user.

The process is done in 2 steps:

Payment allocation

Associate bank traffic with payment area like AP, AR, Tax.

Automatically associate with the relevant business partner – for example, the relevant supplier, the relevant customer and the like.

Payment clearing

Automatic matching of payment with open item.

Automatic adjustment for open transactions (customer invoice, sample vendor invoice).

Processing Petty Cash Payments

Cash Fund Management – Several different cashier.

The system allows inbound and outbound movements. The movements can be with:

  • reference to items
  • Direct posting to G / L account
  • Cash transfer – between cashier, between the bank and the cashier.

You can also integrate into a POS point of sale store to receive receipts, such as credit cards, cash, and so on.

Monitoring Cash and Liquidity

Monitor the cash situation today and the cash flow forecast

Cash Position Today

Refers to balances in banks and cash funds.

Considering the balances of marble and other movements on the way. For example, we performed a transfer of money from a cash account to a bank account, or we sent a directive to the bank to make a transfer and this movement does not yet appear on the bank’s pages.

Cash Forecast Liquidity

  • The basis is the cash situation today
  • To which are added Cash in Transfer, we were, transfers we made to the bank, expected payments from credit cards, deposits of checks, payment by checks.
  • Then add future revenues / expenses that have certainty with an accurate date, invoices we issued to customers, invoices we received from suppliers, expenses reported by employees, taxes we must pay.

The cash flow process includes the following steps:

  1. Run for data collection. Scheduling Gob to build the flow.
  2. Examination of the data involves manually creating transactions (revenue / expenses) for the system on a specific date. For example, you can enter future employee wages.
  3. The cash flow is then released, which means that the flow will be updated. You can also reject the flow, create a new one, and so on.

Performing Financial Closing

Performing Financial Closing

The system has 3 key steps to close a period. You can close movements for each step individually:

Closing Steps for Operational Postings

010 – Operational Postings Closes to system operative activities.

015 – Late Operational Postings Closing of Late Operations – Allows still to record the previous period

Closing Steps for Closing and Adjusting Entries

020 – Closing Entries

080 – Adjusting Entries for Income Statement by Nature of expense

Closing Steps for Balance Carryforward Entries

990 – Closing Balance

991 – Profit and Loss Calculation of Retained Earnings

001 – Opening Balance

The system defines pre-defined closing steps and it doesn’t matter if it is a monthly / quarterly / annual closing, we were the same process.

TASK before closing

The system creates a list of tasks that need to be addressed in order to close. This includes two main issues:

  1. Correction of records due to, for example, Master data issues or sample bank clearing against an Open Item in the system,
  2. Performing different jobss before closing, such as depreciation runs, Carryforward Run, Reconciliation Run and more.

SAP Business ByDesign Financials Vs SAP Business One Financials

Please read SAP blog – Click Here

Additional information

For more details please contact Business ERP

For technical information go to SAP ByDesign Help

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