The Accounting Module:

• Includes all functions and reports required for the accounting and financial operations of the company
• Includes all tax-related reports according to the regulations in each country
• Enables you to document all financial and accounting-related transactions

Chart of Accounts

• The setting up of financial accounting occurs when SAP Business One is first implemented. During implementation, your partner, tax advisor, and accountant follow GAAP and country or state regulations to set up financial accounting.

  Once you have determined your financial or posting periods and account segments, if any, you create your chart of accounts. A chart of accounts lists all of a company's general ledger (G/L) accounts and is the basis for its reporting and posting activities.

Multi-Currency Transactions

When you maintain foreign currency (FC) business partners and/or accounts, SAP Business One conducts all related bookkeeping in FC. Since you also conduct the bookkeeping system in local currency (LC), SAP Business One expresses every FC transaction in LC according to the FC exchange rate on the date of transaction. Daily fluctuations in FC exchange rates may cause mismatches between the balances in LC and FC.

The Exchange Rate Differences function periodically recalculates the LC and FC balances according to the exchange rate on the day the differences are calculated.

SAP Business One provides recommendations for executing automatic journal transactions for exchange rate differences in FC business partners and accounts, correct to a given date. The Exchange Rate Differences function reconciles the FC card balance and the LC balance, considering the fluctuation in the FC exchange rate.

Cost Accounting

In addition to their regular bookkeeping, many businesses perform expense and revenue analyses that measure the profitability of each of their business activities or departments.

The cost accounting function in SAP Business One enables you to define sets of cost centers and distribution rules. Generating respective reports provides important cost-related information.

SAP Business One provides two cost accounting methods: distribution rules and projects.

Forecasts & Reports

Cash Flow Forecasts

SAP Business One, version for SAP HANA provides a cash flow forecast function to let you view detailed information about your company's incoming and outgoing cash flows.

Financial Reports

This menu option includes all reports pertaining to the analysis of the financial and accounting activities of the company. The reports comprise the following main categories:

• Financial
• Accounting
• Comparison
• Budget Setup

Beyond the standard SAP B1 reports, additional reports are also available with the BOS Report Pack.

Banking

Use this module to perform all monetary transactions that involve bank accounts, including the following:

• Manual and automatic creation of incoming and outgoing payments for various payment means
• Manual and automatic performance of internal and external reconciliations
• Postdated and cash deposits of checks and credit card vouchers
• Batch and single check printing

External reconciliation is the comparison of open transactions within SAP Business One with an external account statement. Most commonly this is a bank statement. However, it could be a business partner’s account statement containing a list of transactions that your customer sends to you as its vendor, for example.

For external bank statement reconciliations, SAP Business One supports three different processes, each of which is relevant for different localizations:

• Recording transactions from bank statements and then reconciling the transactions using the reconciliation function. This process is relevant for all localizations.
• Verifying the transactions recorded in SAP Business One with the balance received from the bank and creating adjustments, if required, using the manual reconciliation function. This process is relevant for the following localizations: Australia, Brazil, Canada, China, Cyprus, India, Japan, Korea, New Zealand, Singapore, South Africa, United Kingdom, and United States.
• Recording and reconciling bank statements using the bank statement processing function (see Setting Up Bank Statement Processing and Working with Bank Statement Processing).

In addition to performing reconciliations, you can also do the following:

• View, cancel, re-create, and print previous external reconciliations
• Print reconciliations when you manually or automatically perform external reconciliations