VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT BUILDING AN IKEA BUSINESS MANAGEMENT SYSTEM ON THE SAP BUSINESS ONE PLATFORM NGUYEN HOANG LAN PHUONG Hanoi - Year 2023 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT BUILDING AN IKEA BUSINESS MANAGEMENT SYSTEM ON THE SAP BUSINESS ONE PLATFORM SUPERVISOR: Ph. TRUONG CONG DOAN STUDENT: NGUYEN HOANG LAN PHUONG STUDENT ID: 19071070 COHORT: INFORMATION SYSTEMS SUBJECT CODE: INS401101 MAJOR: MANAGEMENT INFORMATION SYSTEM 2 Hanoi - Year 2023 3 ACKNOWLEDGEMENT Firstly, I want to express my deepest gratitude and special thanks to Mr. Truong Cong Doan for spending his busy schedule instructing and guiding me directly throughout my graduation thesis. His devoted instruction helped me a lot to complete my thesis, as well as gain new knowledge in this field.
From the first day of my graduation thesis, he guided me to choose the right topic that was relevant to my work and suitable for my competent. Under his weekly meetings and reports, I could complete each stage of my graduation thesis. Most importantly, he delivered valuable and specialized knowledge about technology and information systems and gave me a chance to try my best to accomplish the achievements not only in the university, but also in the future. I want to give my special thanks to Mr.
Ha Quoc Thach, Head of ERP Solution Division, and Mr. Bui The Anh, Head of ERP SME Implementation at CMC Consulting JSC for their support. I consider myself as a very lucky individual as I was provided with an opportunity to be a part of it. They helped me complete my graduation thesis, delivered practical experiences and knowledge, and broadened my mind on how I could deal with business problems and how to collaborate in a working environment.
I would also like to extend special thanks to all the staff members at CMC Consulting JSC for their warm co-operation, guidance and support for this graduation thesis. Besides professional knowledge and skills, they taught me a lot of soft skills to efficiently collaborate with all colleagues. Finally, I would like to express my gratitude to all lecturers and the International School – Vietnam National University, Hanoi. I attended the University when I just reached 18 years old.
The University and all the teachers taught me many things about knowledge, skills, communications, social relationships, and opportunities to improve what I had. And now, I become a more mature and better version of myself. A four-year studying in the Internation School is always my unforgettable memory. Sincerely, Nguyen Hoang Lan Phuong 4 PROMISE I hereby declare that this is my graduation thesis that I undertake on my own, under the guidance of Mr.
Truong Cong Doan. Data and research results are honest, consulted from CMC Consulting JSC and other reliable sources. All of the references are clearly cited and annotated in the References section. I would like to take full responsibility before the department, faculty and school for this commitment.
Phuong Nguyen Hoang Lan Phuong 5 List of Abbreviations BOM Bill of materials ERP Enterprise resource planning MTS Made-to-stock SMBs Small to medium-sized businesses UoM Unit of measurements 6 List of Figures Figure 1. Diagram of the sales process in SAP Business One. A sales blanket agreement. An incoming payment.
A return request created in the SAP system. A return document copied from the return request. A relationship map between a return request and a return document. Diagram of handling return process.
Business Partner Master Data. A warning of sales orders that have not been exported. A balance report of sales orders in total. Diagram of the purchasing process in SAP Business One.
A purchase blanket agreement. A goods receipt PO. A document of outgoing payments. A purchase order takes items from the Item Master Data.
A warning of purchase orders that have not been stocked. A purchase report queried and stored in the system. Item Master Data. Batch management and selection criteria.
Measurements of goods per unit. A goods receipt in warehouses. Diagram of goods receipt process. A goods issue in warehouses.
Diagram of goods issue process. Business process integrated warehouse management. A bill of materials. IKEA’s organizational structure.
IKEA’s supply chain diagram. Illustrate actors and the related system functions. Non-functional requirements. A part of the list of IKEA's item data.
A part of the list of IKEA's business partner data. Select data type. Specify operation type. Select a business object.
Select data source. Map object fields. Define error handling. Start importing data.
Finish importing data. A detailed data view. Make a purchase order of 200 wooden tables. Create a goods receipt PO.
Make an A/P invoice from the purchase order .Warehouses created in SAP Business One. Sublevel codes for IKEA’s warehouses. Create a BOM of 200 wooden tables. Make a product order of 200 wooden tables.
Issue materials and resources. Receipt of 200 wooden tables from production. Completed relationships in the purchasing process. Completed relationships in the production process.
70 8 List of Tables Table 3. Illustrate actors and the related system functions. Non-functional requirements. 55 9 Table of Contents ABSTRACT.
SAP BUSINESS ONE. Introduction of SAP Business One. Sales Process in SAP Business One. Stages in Sales Process.
Stages in Purchasing Process. User Support Functions on the System. Item Master Data. Commodity Import and Export Transactions.
Method of Calculating the Cost of Inventory. Serial and Batch Management. Manage Locations by Warehouses. Concepts in the Production Module on SAP Business One.
Bill of Materials (BOM). Basics of Production Process. GENERAL INFORMATION OF IKEA CORPORATION. IKEA History, Missions, Values, and Vision.
BUILDING IKEA BUSINESS MANAGEMENT SYSTEM ON THE SAP BUSINESS ONE PLATFORM. Problem Statement of IKEA. Analysis System Functions. Building IKEA Business Processes on SAP Business One.
Importing Item Master Data and Business Partner Master Data of IKEA. REPORT AND EVALUATION. 72 11 ABSTRACT Recently, large enterprises utilize information systems to manage their massive data, information, and sophisticated business processes. These datasets play a key role in carrying out company operations.
However, with the continuous changes in the competitive market and increasing demands from customers, companies have to deal with a serious problem: How to process all the data they have and transform it into a useful source of information and stand out in this harsh competition? This question leads many enterprises to seek better ways to manage their business, including the implemetation of efficient ERPs. This report concentrates on building the business management of the production lines of the famous Sweden furniture corporation IKEA through the use of an ERP. This ERP is SAP Business One, a popular ERP solution used for finance, sales, purchasing, warehouse, production, etc. This report demonstrates all the stages of building for IKEA’s business processes and analyzes all scenarios in these processes.
SAP BUSINESS ONE 1. Introduction of SAP Business One The ERP program fundamentals SAP Business One's design was for small and medium-sized businesses. The idea behind SAP Business One is that smaller businesses need not need the same kind of ERP that large, complex organizations have in order to conduct their operations. Working modules for news collecting, the science of logical analysis, procurement, customer connection management, warehouse and result management, and finance are included.
TopManage Financial Systems established SAP Business One, which SAP sooner or later purchased and rebranded. SAP Business One now offers better proficiencies on account of acquisitions fashioned by SAP. A newsgathering and calculating use named XL Reporter was purchased from the Norwegian trade iLytix Systems AS in 2005. Praxis Software Solutions, a located association in Minneapolis, was collected by SAP in 2006, and SAP Business One immediately involves allure connected to the internet CRM and buying functionalities.
SAP Business One was developed on Microsoft SQL Server and is now widely used with SAP HANA. An app for traveling allows for the chance to approach it by chance and can be set up locally or in the cloud. SAP Business One provides multiple modules based on different company’s business processes, but four main modules are Sales, Purchase, Inventory, and Production. Sales Process in SAP Business One 1.
Stages in Sales Process - Sales process is the essential part of every company, and managing the sales process is mandatory to make enterprises control their sales operation. Today, managing the sales process by paper documents is still popular, but it has to be done with managing the process on the information system. This will help the procurement handle faster but still ensure the accuracy of information. Many small and midsize enterprises choose SAP Business One to assist their sales process and meet customer’s satisfaction.
Making a thorough marketing document for the SAP Business One sales process is done from submitting the items' quote through their delivery. All necessary 13 pertinent information is included in the SAP Business One document flow from one document to the papers that came before it. As a result, you may alter the sales process phases to suit the needs of your business procedures. - Departments involved in this process: • Sales • Inventory • Planning • Accounting - There are three main sales processes in SAP Business One: • Fundamental sales process • Return process • A/R Credit Memo - Scenario: The company aspires to use an efficient sales process to ensure that customer needs are met as quickly as possible.
So, reviewing the sales process from order placement to payment and seeing how each step affects inventory and accounting are important to fully understand all components in the sales process deploying in SAP Business One. Sales process in SAP Business One is demonstrated in the following diagram: Figure 1. Diagram of the sales process in SAP Business One 1. Sales Blanket Agreement - A long-term contract between a business and a customer is known as a sales blanket agreement.
It usually occurs when a customer agrees to buy large quantities of goods that will be delivered in multiple smaller shipments over a predetermined amount of time. - If the agreement with the customer is still valid, the system automatically links the sales document with that agreement so the unit prices in the transactions are taken directly from that agreement. - Features of sales blanket agreement: It supports two types of agreements, including general and specific agreements. 14 - General agreement: Used if only managing the quantity/sales target to get a reward after the target is completed.
- Specific agreement: Used if a special discount is applied to each transaction, then the price on the sales document is taken directly from the agreed price. A sales blanket agreement 1. Sales Quotation - Quotation is not a required document in the sales process. - Companies use sales quotes to send to customers for the purpose of providing price information for goods and services.
- Quotations can be used to create sales orders once the customer approves the transaction. Sales Order - A sales order is a document of commitment between a customer or potential customer and a company to purchase goods or services in terms of quantity and price. - Features of sales orders: • Sales orders can be changed after added to the system. • A sales order can be copied from one or more quotations.
• Purchasing orders can be created directly from sales orders.Sales orders do not generate inventory transactions, do not change the inventory value, but only increase the number of sales commitments in the item's inventory information. - For example, a sales order is created when a customer ordered 10 products. We enter the customer code, item code, and quantity in the sales order.