SAP Business One / SAP B1 ERP for Oil and Lubricants Industry

Key Benefits of Implementing SAP Business One in the Oil & Lubricants Industry

The Oil and Lubricants Industry is one of the most dynamic sectors globally, undergoing constant development. With new players continually entering this competitive industry, innovative software solutions are essential for managing and integrating every business process efficiently. To achieve this, adopting a robust ERP solution like SAP Business One is ideal for Oil and Lubricants Industries. By implementing SAP Business One, the industry can effortlessly manage every aspect of its business from any location. Migrating to a cloud platform like SAP Business One is especially beneficial for a fast-paced industry such as Oil and Lubricants.

Let’s explore how SAP Business One ERP benefits the Oil and Lubricants Industry:

Order to Cash with SAP Business One for Oil & Lubricants:

The entire flow from Order Management involves procurement based on the Sales Order. Following this, Credit Management and order fulfillment are carried out, the order is shipped, and AR Customer Invoicing is completed along with Incoming Payment.

MIS Reports provided by SAP Business One help run the business in a controlled manner. Customer Item Code is stored as BP Catalog Number item-wise, facilitating faster processing and tracking. The Sales BOM solution is utilized for scenarios where accessories are procured as separate item codes but delivered to customers as a single item.

Backorder reports offer a detailed view, enabling faster order processing within the Oil and Lubricants Industry.

Procure to Pay through SAP B1 for Oil & Lubricants:

Purchases are made based on customer orders using the procurement wizard function, which directly generates Sales Orders (SO) and Purchase Orders (PO). Goods receipt is conducted against the Purchase Order, with each item allocated in the store’s item batch-wise. Accounts then create the payable invoice, and the outgoing payment is made. Vendor item codes are maintained by BP Catalog number. Purchase analysis, price lists, approval for any price changes, and price change reports provide the desired control, reducing error chances.

Sales Order (SO) with SAP B1 for Oil & Lubricants:

A Sales Order is created once the Purchase Order is raised or the customer confirms the quotation. Using DMS, a soft copy of the Purchase Order is also attached. Payment terms and delivery dates are auto-fetched from the customer master (committed/credit limit management restricts salesmen from placing further Purchase Orders).

Sales Quote with SAP B1 for Oil & Lubricants:

Sales quotations are created using SAP Business One. The ‘Ship to’ and ‘Bill to’ fields are automatically populated with the data entered in the Business Partner Master Data. For the client, along with Accounting and Payment terms, contact persons are also auto-populated. The soft copy is directly emailed to the customers of the Oil and Lubricants Industry from SAP Business One.

MRP (Material Requirements Planning):

Material Requirements Planning (MRP) is used to create purchase requests or direct Purchase Orders for preferred suppliers daily, weekly, or monthly from the Sales Order.

Purchase Request:

Purchase Requests are auto-created by Material Requirements Planning and can also be created manually department-wise as per their requirement for office equipment, consumables, etc., against which the Purchase Order is generated.

Purchase Order:

Purchase Orders are created order-wise using the procurement wizard, and the PDF is mailed to the vendor directly from SAP Business One. Various engineering data stored in the item master is auto-fetched to the transaction, reducing errors. Order-wise PO reports expanded item-wise help maintain a great record and control, making it easy to identify any errors.

GRPO (Goods Receipt Purchase Order):

Based on the Purchase Order, when the vendor delivers the item, Goods Receipt against the Purchase Order is posted by allocating a serial number to each quantity of the item, which debits the inventory (inventory management and inventory reports are standard in SAP Business One).

Supplier Payment:

Based on GRPO, an AP invoice is added, and the outgoing payment is processed.

Production:

The Sales BOM function is utilized.

Invoice:

Accounts Payable/Receivable invoices are created, and payment entries are posted (the open document system provides proper control).

Service:

Complete management of after-sales for each serial item is efficiently handled in SAP Business One.

These are some ways SAP Business One benefits the Oil and Lubricants Industry, increasing its operational efficiency and drastically improving overall performance.

If you would like to know more about our ERP services, please visit us at: https://www.emerging-alliance.com/

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