SAP Business One

Purchase Cycle:

• The SAP Business One has following steps in purchase cycle:
• Purchase Quotation
• Purchase Order
• Goods Receipt
• Invoice
• Credit Memo
• Payments

Purchase Quotation:

• In this SAP ERP system we can create a single purchase quotation for one vendor or use wizard of generating purchase quotations in order to create a multiple purchase quotations for different vendors to acquire one purchase.
• We can record the vendor replies into the purchase quotation and use a comparison statement to acquire the best offer for requested supply.

Purchase Order:

• After deciding the vendor for do purchases, we can create  the purchase order with respect to chosen vendor.
• In SAP system we have option for creating the purchase order for both goods and services. 

Goods Receipt:

• After PO two things can happen either we can receive the goods or receive the goods with an invoice.
• When we receive the goods to our warehouse from vendor, we can create the goods receipt.

Invoice:

• Invoice is a request from vendor to customer to make payment on purchased goods.
• After receiving the goods from the vendor the invoice is generated and the payments or credit memo can be done with respect to this invoice only. 

Credit Memo:

• If the vendor has delivered the goods and invoice. Then the customer wants to return the goods, in this situation the credit memo is generated.
• We create the credit memo based on the invoice to establish the connection between the two transactions.

Goods Return:

• If the customer wants to return the goods for any reason for example, goods damaged, color mismatched.In this scenario this goods return document can be generated. 
• This "Goods Return" can be generate only when no invoice is created. In case of invoice is generated then if we want to made returns then we have to create "Credit Memo".
• This goods return is used to deliver the goods back to the vendor.

Payments:

• The payments can be made based on the invoice generated from the vendor and also by considering the goods returned.
• This can be done in this SAP system in the outgoing payment section.

Pros:

• It has relationship map option by using this we can see the relationship between the documents like purchases, sales.
• When the any error is made it is shows in system message log clearly what the mistake is.   

Cons:

• It does'n has progress bar that is the status of our transaction.
• The payments have separate section it means not included with the purchases.
• It does't provided any demo/trial software.