SAP Business One (SAP B1) offers fixed assets as a standard solution – part of the financial modules in SAP Business One. With the release of SAP Business One Version 9 (Q2 2013 in Australia), the fixed assets module has been substantially enhanced. The fixed assets module in SAP Business One version 9 will allow you to manage the entire asset life cycle from asset acquisition, depreciation forecasts, depreciation schedules through to retirement of the asset.
With SAP Business One version 9 there is a new fixed assets master data structure which includes multiple new options and the ability to keep data including:
– Asset status,
– Asset class,
– Depreciation group,
– Serial number,
– Asset location,
– Historical APC,
– Acquisition costs,
– Historical NBV and more…….
SAP Business One version 9 includes an asset value screen which provides a snapshot of asset values at the beginning and end of the year including acquisition, retirement, transfer, write up, planned and unplanned or special depreciation for the asset.
Asset lists can be imported from Microsoft Excel using a data mapping template.
Depreciation types can be set-up in SAP Business One version 9 with multiple different rules and set-up options depending on depreciation type and requirements.
The asset depreciation forecast allows the user to view the forecast depreciation including accumulated ordinary depreciation, unplanned depreciation, special depreciation, asset write-ups and asset net book value at year-end.
Fixed assets reports include:
– Asset depreciation forecast report,
– Asset history sheet,
– Asset status report,
– Asset transaction report.
SAP Business One fixed assets allow the creation of different depreciation methods for tax and book depreciation.
The team at SAP has put an enormous amount of work into SAP Business One version 9 fixed assets and the results are great. If you are currently using SAP Business One but have your fixed assets on a spreadsheet or separate fixed assets application talk to your SAP Business One partner – you will be pleasantly surprised by what SAP Business One fixed assets has to offer.
The team at Leverage Technologies has written previous blogs discussing the cost of implementing SAP Business One (SAP B1) and we have received feedback that readers want more specific guidelines on SAP Business One price/costs to implement.
There are a number of factors to be considered when implementing SAP Business One (SAP B1) and each of these factors will have an influence on pricing and the cost to implement SAP Business One.
Factors that influence the cost to implement SAP Business One include:
Functional requirements,
Data conversation,
Geography,
Reporting requirements,
Skillset of users,
Number of users,
Integration requirements,
Development requirements.
That being said let’s look at three examples of system implementations for SAP Business One and the associated investment required.
What does it cost to implement SAP Business One (basic implementation) – 8 users – Finance / Distribution? This estimate assumes the implementation of SAP Business One for a small distribution business that has outgrown basic accounting software and wants to move towards a more complete (fully integrated) ERP solution. Inclusions – finance, inventory, basic warehouse management, standard reporting and business intelligence dashboards. Total solution pricing estimates: 8 users of SAP Business One (cloud) = $1,800 per month, support = $400 per month, implementation, training and system configuration = $40,000 (once-off SAP Business One service investment – standard SAP Business One reporting is used and minimal configuration is required. Usually one company, one location).
What does it cost to implement SAP Business One (typical implementation) – 25 users – Finance, Distribution, mobility, business intelligence reporting and CRM requirements? This SAP Business One cost estimate assumes a reasonably sophisticated set of business requirements for a medium-sized distribution business. Total solution pricing estimates: 25 users of SAP Business One (cloud) = $5,000 per month, support = $1,000 per month, implementation, training and system configuration = $80,000 (once-off SAP Business One services investment). This implementation of SAP Business One assumes a functional footprint that includes finance, distribution, Material Requirements Planning, inventory (perhaps with advanced warehouse management), assembly and customer-specific reporting, analytics and business intelligence.
What does it cost to implement SAP Business One (comprehensive implementation) – 50 users – Finance, Distribution, manufacturing, mobility, business intelligence reporting and CRM requirements? This SAP Business One cost estimate assumes a complex implementation of finance, distribution and manufacturing with multiple data conversion points and customer-specific reporting. Total solution pricing estimates: 50 users of SAP Business One (cloud) = $9,000 per month, support = $2,000 per month, implementation, training and system configuration = $140,000 (once-off SAP Business One services investment). This implementation of SAP Business One assumes a functional footprint that includes finance, distribution, Material Requirements Planning, inventory (with advanced warehouse management), manufacturing, multi-site implementations and customer-specific reporting, analytics and business intelligence.
Let’s not forget that these numbers are only guidelines. SAP Business One can be implemented for a lot less than the $50,000 quoted above – depending on the business requirements and several other related factors.
Want to know more about the costs of implementing SAP Business One? Call our friendly SAP Business One team on 1300 045 046 or email us at [email protected]
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An important part of any implementation of ERP Software is user acceptance testing. Many years ago ERP implementation methodologies called for parallel running of systems (new and old ERP solution). Over the past few years this process has graduated towards user acceptance testing rather than full parallel running.
ERP user acceptance testing allows users and your ERP implementation partner to test key scenarios and business processes in the ERP system before go live. This will highlight any potential issues – with configuration, training or system scope in a test environment prior to the all-important go live date.
ERP implementation user acceptance testing is similar to parallel running in that users can test and compare the results of testing from the new and old ERP systems for correctness. The key difference is that user acceptance testing uses key scenario testing for relatively short periods of time and is therefore less time consuming than the traditional ERP system parallel run which involved double entry of all processes.
Whilst most ERP implementation methodologies include user acceptance testing as part of the implementation what is often overlooked is the detailed plan for user acceptance testing. A good ERP user acceptance plan will include:
– What scenarios will be tested?
– Who has responsibility (user and / or implementation partner) for testing which scenarios?
– What type of testing will be done?
– How long will the testing be done for?
– What tools and systems will be used during testing?
– How will test results be recorded and reported during testing?
Once the user acceptance testing is complete let’s not forget to ensure that feedback is provided to the project team so that any required changes can be made and the system can be re-configured and re-tested as and when required.
Other aspects of ERP user acceptance testing that should be considered include:
– Availability of a test system,
– Integration testing of development or third party applications,
– Remote access testing,
– Workload testing.
User acceptance testing is one of the many important steps involved in the successful implementation of ERP systems. Plan, execute and report back on user acceptance testing to help your team with a smooth and successful go live of your new ERP solution.
SAP Business One (SAP B1) offers several different user type licenses. These SAP Business One user types are broken down into two broad categories – “SAP B1 Professional” and “SAP B1 Limited”.
The SAP Business One “Limited” licenses are available as “Limited CRM”, “Limited Financial” and “Limited Logistics” – all users are named.
The logic behind the SAP Business One user types is based on typical functionality that a user will require for their day to day processing. As a general rule a salesperson will most likely be allocated a “Limited CRM” license and someone in finance will be allocated a “Limited Financial” license. This is a general rule but will not always be the exact allocation.
When deciding on the license types that you require it is good practice to generate a list of your SAP Business One users and their functional roles and then compare that user list to the SAP Business One license guide – see below. Have a good look at what functionality is available per license type and compare this to the tasks that each user completes on a day to day basis. For example does the user do quotations, invoicing and debtors reporting? If so compare these functional requirements with the SAP Business One License Guide.
There is of course different pricing per license type. In Australia a “Limited” license requires half the investment of a full “Professional” license.
If in any doubt ask your SAP Business One partner to assist you in selecting the correct SAP Business One user types for your business.
Are you looking to implement SAP Business One (SAP B1) and you are asking yourself “how do I go about choosing the right SAP Business One (SAP B1) partner to do the implementation of SAP Business One and on-going support?” If so this article is for you.
Some quick background – in Australia implementation and first level support of SAP Business One is done through SAP Business One accredited partners. An SAP Business One accredited partner can offer support and implementation services for SAP Business One including delivery of licenses for SAP Business One, implementation, training, development and integration. Making sure that you choose the right partner is of critical importance.
Here is a list of questions you should be asking your potential SAP Business One partner:
What SAP Business One implementation experience does the partner have? SAP Business One partners in Australia are grouped into three categories – Gold, Silver and Bronze. As a general rule the SAP Business One Gold Partners are the most experienced – offering more technical, implementation and support band-width and SAP Business One product experience. Ask your potential SAP Business One partner what previous experience they have implementing SAP Business One in your industry with companies that are similar in size (and functional requirements) to your business. The more experience an SAP Business One partner has in your industry and geography the more cost effective and timely your implementation and support of SAP Business One is likely to be. As an example an experienced SAP Business One partner with knowledge and experience in your industry will have previously configured SAP Business One for similar requirements to yours and will have pre-written reports and functional sets for your industry.
What complimentary solutions are included and supported by the local SAP Business One partner? Depending on your functional requirements you might require add-on or complimentary solutions for SAP Business One. Ask your SAP Business One partner what complimentary solutions they support and establish whether these solutions (or any others) are important for your specific implementation of SAP Business One.
Is support local? The bottom line is that local support tends to be delivered in a timelier and more cost effective manner. Does your SAP Business One partner offer local support and if not what costs are involved in supporting your site remotely and how often can you get someone on-site at your premises.
What is included in my support agreement? Most SAP Business One partners offer support agreements which include an element of SAP support, program updates and partner support. Find out what is included and importantly what is not included in your support agreement. Get confirmation of the inclusions and exclusions in writing. Try and ensure that your SAP Business One partner offers comprehensive support options. Ensure that your SAP Business One partner has a fully functional support desk. Ask for the background and experience of staff on the support desk and their support desk procedures
Can I meet the consultancy team? Spend some time with the SAP Business One partner consultancy team – the team that will work on and support your implementation of SAP Business One. Make sure that you understand how the implementation consultants work, their previous experience and ensure that there is agreement on expectations.
Is the proposed implementation fixed price? Wherever possible ask for a fixed price implementation based on a scope of works. Depending on the type of implementation a fixed price might not always be possible. At the very least make sure that the SAP Business One partner thoroughly understands your business processes, requirements and company specific details. The more time you spend upfront on analysis and design of your requirements the more accurate the proposal and pricing will be. Make time upfront to cover your requirements to ensure a smoother implementation of SAP Business One.
What are the annual costs after year one? Making an informed decision means knowing all of the facts and figures associated with your implementation of SAP Business One. Make sure you consider the TCO – Total Cost of Ownership. Ask for the likely costs including on-going annual maintenance and support costs.
What implementation methodology will be used to implement and support SAP Business One? SAP offers the SAP Business One Partner community access to great resources including implementation and support methodologies. Ask your SAP Business One partner which methodology for implementation and support of SAP Business One they use. What documentation, project plans, project meetings and implementation guidelines should you expect when you implement SAP Business One?
What development capability does the SAP Business One partner offer? Even if you do not require SAP Business One development for your initial implementation of SAP Business One as your business grows you might need development capability to integrate to third party applications or have company specific functionality built into SAP Business One. Fortunately SAP Business One offers great development and integration toolsets – make sure that the SAP Business One partner that you choose to deal with has experience using the SAP Business One Software Development Kit and SAP Integration Framework.
As the customer you have choice. There are several SAP Business One partners in Australia and the good news is that you can choose the partner that you feel is best suited to your business and your specific requirements. Choose wisely for a long and profitable relationship.
The warehouse is a great example of a department that benefits from automation because there are so many different and dynamic components involved in successfully managing a warehouse. Utilizing warehouse management software will combine all of the components of warehouse management into one unified solution – logistics, location tracking, EDI, traceability, purchasing and optimization of the warehouse process.
The decision to purchase warehouse management software is an easy one to make, but choosing the right software can become quite daunting. There are many different software options available, and they all have an extensive range of capabilities. Some are accessed through an on-premise server; while other options are cloud-based and accessible from anywhere. They all have their distinct advantages and disadvantages, and the right software for your business will depend on your company’s specific needs.
Here are eight simple steps that will help you choose the right warehouse management software that is designed to improve efficiencies and increase productivity for your unique business and warehousing requirements.
Eight Steps to Evaluating Warehouse Management Software
1. Create a Prioritised List of Your Software Requirements
Gather together all of the departments within your company that are in some way associated with your warehouse. For example, purchasing, inventory, shipping, and receiving personnel will all have a different perspective on what functions need to be included in the software to perform their role in the supply chain. You will then need to rank each requirement by priority and reduce it to a reasonable sized list. Let’s not forget that the solution that you choose will need to be totally integrated with all aspects of your business management software – finance, CRM and manufacturing.
2. Research and Rank Your Warehouse Management Software Options
The next step is to do a search of all possible warehouse management products and compare it with your list of requirements. I suggest using a scoring system to narrow down your search. For example, if there are ten major software functions or features that are on your requirements list, number them from ten down to one. Assign your greatest requirement the number ten and the requirement you need the least a one.
As you find potential software options, assign the priority value to the features and/or functions the software has from the requirements list. This will give you a total between 0 (none of the components you need) to 55 (all ten components you need). The next step is to pick a cut-off number, like 30, and then remove any warehouse management software vendors from the list that do not have a score of at least 30.
Here is a visual example to explain:
Warehouse Management Software Requirements:
Inventory Tracking = 10
Order Fulfillment = 9
Stock Replenishment Reminders = 8
Shipment Planning and Picking = 7
Barcode Scanning = 6
Pick by expiry date = 5
Billing Notifications = 4
Inventory Turn Reporting = 3
Quality Monitoring and Control = 2
Logistics Scheduling = 1
If the warehouse management software you are considering contains inventory tracking, order fulfillment, stock replenishment reminders, billing notifications, and inventory turn reporting, then its total score would be 34. If it contains shipment planning, barcode scanning, pick by expiry date, and logistics scheduling, but not the other requirements, then the score would only be 19 and therefore is not a viable solution. This is just one simple method for evaluating the ranking of warehouse management software features and functions. You can create your own, more complex ranking system depending on how important various components are to your specific business.
3. Develop a Short List of Possible Software Vendors
Once you have ranked each software solution based on how well it meets your requirements, put together a list of the top three possible suppliers. This should include both on-premise and cloud-based software options. Make sure that each of these software vendors is willing to configure the solution to suit your company’s specific needs.
4. Contact the Vendors on Your List for References
Ask for references that you can speak with on the phone, or testimonials from well-known industry leaders. Any good software vendor will have no problem coming up with a list of positive references. Make sure to always personally verify their referrals so you can feel certain that the company is professional, experienced, and trustworthy.
5. Ask for a detailed Software Demonstration
Most reputable software providers will offer their potential clients a comprehensive demonstration to test the product based on your specific requirements. This demonstration should show the warehouse management software tailored to your requirements, using your product codes and a configuration based on your specification. As an example if serial number traceability is important to your business then make sure that serial number receipting and despatch is included in the presentation.
6. Request and Compare Proposals
Price should never be your first concern because warehouse management software is an investment that will result in more cost-saving efficiencies for your business; however, it will be a factor in your decision. Make sure to request detailed proposals so that you can compare pricing for each line item.
7. Review the implementation proposal
Make sure that you spend some time evaluating the implementation, training and system configuration proposal for the warehouse management software. Look at the inclusions and exclusions, what is considered phase one versus phase two? Is the proposal fixed price or time and materials? What reporting and data conversion is included? At this point in time you might ask the preferred vendor or business partner to spend a day or two on-site reviewing your requirements in more detail. This will allow the warehouse management software team to deliver a comprehensive implementation proposal – complete with implementation plans and a scope of works.
8. Check out the implementation team
Ask about the experience of the implementation team that will be responsible for your warehouse management software implementation. The implementation team will need more than product knowledge – they will also need warehouse management experience.
As previously stated, let’s not forget that warehouse management software integrates with many aspects of your business management software – finance, customer relationship management, logistics and more – make sure your systems are fully integrated.
If you follow these simple eight steps for evaluating warehouse management software, you will be able to find a reliable solution that covers all of your requirements – now and into the future. The solution should come from a reputable vendor and be able to help make your distribution systems more fluid and cost-efficient.
Small business software solutions are designed to save time and money. They provide automated solutions that will streamline processes, reduce operating costs, and simplify daily tasks. In today’s competitive marketplace, every business needs a comprehensive business software solution that will increase their employees’ productivity and improve the company’s profitability by providing timely and accurate information to the entire team – in the office or via mobile.
What’s the right software for my business?
Every business is different, and unfortunately there is not one specific small business software solution that is guaranteed to fit your business. The choice of small business software will depend on the size of your company, the industry you work in, and the features that are needed to run your business effectively.
Although I can’t say for sure which software you should choose, this article will cover the different elements that you should consider when you are choosing between various vendors of small business management software. This will help you make a more informed decision when going to market for a new small business software solution.
Tips for Choosing the Right Small Business Software
Newer is Better!
New technological advancements and innovative tools have made today’s small business software even more efficient and powerful. Small businesses are missing out on exciting new capabilities if their current software system is more than a few years old. Make sure you consider newer versions of small business software – giving you the competitive edge through recent advancements in technology.
Cloud, mobility, analytics, in-memory computing – make sure that you are able to take advantage of these great improvements in technology. Make sure to check that the small business software that you choose for your business is not only a “newer” application but also offers regular updates and upgrades.
Ask Around!
Referrals and advice from professionals can be incredibly helpful when you are making a major investment to switch your small business software. Start the process by asking similar companies which products they use and what they like or dislike about the solution.
Once you have a few ideas of potential solutions, visit each software vendor’s Website to reference testimonials and feature lists. If you don’t see any referrals, e-mail the company and ask if they have any customers you can call for a reference.
Make it Mobile!
Mobility will increase productivity by allowing you and your employees to access important information and reports whenever the need arises. This will also give your sales team the ability to access live information while they are working with clients outside the office. A salesperson’s ability to connect to the latest price list, stock information and reporting while they are traveling could be the difference between making a sale and losing a sale.
Cloud or On-premise
One of the most popular new trends is cloud-based computing because it is convenient and flexible. Whether or not to go cloud or on-premise will depend on your company’s requirements and circumstances – there is no right or wrong answer to the Cloud Vs On-premise question. When you are choosing the right small business software to double your business, make sure to look for a solution that is accessible from anywhere – mobility is important. A software vendor that is committed to cloud or on-premise (your choice – depending on your circumstances) should get onto your shortlist.
Configuration is Critical!
Most modern software solutions can be tailored to suit your company’s specific needs. Create a list of the services and features your business needs and then look for the most affordable product that incorporates all of the items on your list. Be careful to check whether the features you need are standard (require configuration) or will require development. This will be important for budgeting.
How much should I spend on new software?
The amount you spend on software will depend on a number of factors – user licenses, location of your offices, business process requirements, internal IT capability, reporting requirements and more. Keep in mind that having more efficient software will save your business valuable time and money, so it will be worth the investment to invest more upfront to purchase newer, well branded software that not only covers your current requirements but will cater for your planned growth into new markets, new geographies and new opportunities.
How can all of this double my business?
A complete small business software solution allows you to react faster to potential leads, gives you updated product information, client information, production scheduling, and delivery dates whenever and wherever opportunity strikes.
Modern software makes it easier to reference past information, so customer care representatives can resolve problems and keep your current customers happy. This will increases productivity and reduce operating costs, which results in higher profits and more available funds for new marketing efforts. Imagine the decisions you can make if all required information is available in real time – from product marketing, order, purchasing, delivery, manufacturing and financials.
Small Business Software Checklist
Choosing the right small business software doesn’t need to be complicated. Make sure you have a checklist of what you need the software to do for your business. Thanks to the vast selection of small business software on the market, it won’t be too difficult to find a solution that encompasses everything you need and want. Keep in mind that you should choose a current / new age solution, ask for referrals, and make sure the solution has mobility and the ability to configure functions to better suit your business.
The right small business software will cut costs, improve efficiency, and help you double your business.
