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sap business one for oil & lubricants industry

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

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

The Oil and Lubricants Industry is one of the most versatile sectors around the world which undergoes continual development. With new players in this competitive industry, Oil and Lubricants Industry requires innovative software solutions to manage and integrate every business process efficiently. To do that, it’s best to adopt a powerful ERP Solution for Oil and Lubricants Industries – SAP Business One. By implementing this, the Oil and Lubricants Industry can handle every aspect of its business effortlessly from any part of the world. Also, migrating to a cloud platform like SAP B1 is the best option for a fast-moving industry like Oil and Lubricants Industry.

Let us now see, how SAP B1 ERP benefits the Oil and Lubricants Industry:

Order to Cash:

The full flow from Order Management is such that, on basis of the Sales Order, the procurement is done. And then, following Credit Management and order fulfillment, the order is shipped and AR Customer Invoicing is accomplished along with Incoming Payment.

MIS Reports help to run business in a controlled way by SAP. Customer Item Code is stored as BP Catalog Number item-wise, which helps for faster processing and tracking. Sales BOM solution is used for scenarios where accessories are procured as separate item codes, whereas it is delivered to the customers as a single item.

Backorder reports give a detailed view to achieve faster order processing in Oil and Lubricants Industry.

Procure to pay 

Purchase is done based on the customer order, by using the procurement wizard function from which SO and PO are directly generated. Goods receipt is done against the Purchase Order, where each item is allocated in the store’s item batch-wise. As per that, Accounts creates the payable invoice, and outgoing payment is done. Vendor item code is maintained by BP Catalog number. Purchase analysis, pricelist, approval for any price change, and price change report provide desired control, which reduces the chances of errors.

Sales Order (SO):

SO is created once the PO is raised or once the quotation is confirmed by the customer. Using DMS, the softcopy of the PO is also attached. Payment terms and delivery dates are auto-fetched as per the customer master (committed / credit limit management restricts salesmen from further PO orders).

Sales quote

Sales quotation is created by SAP B1. The ‘Ship to’ and ‘Bill to’ fields are automatically populated with the data entered in the Business Partner Master Data, and for the client, along with Accounting and Pay term, contact persons are also auto-populated. The soft copy is directly mailed to the customers of Oil and Lubricants Industry, from SAP Business One Software.


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

Purchase Request

PR is auto-created by Material Requirements Planning and even PR is created manually department-wise as per their requirement of office equipment, consumables, etc. against which the PO is generated.

Purchase Order

PO is created order-wise using the procurement wizard and the PDF is mailed to the vendor directly from SAP Business One. Various engineering data is stored in the item master which is auto-fetched to the transaction by which the error has been reduced. Order-wise PO report expanded item wise help to have great record and control to find if any error has occurred.


On basis of PO, when the vendor delivers the item, the Goods receipt against PO is posted by allocating a serial number to each quantity of item which debits the inventory (inventory management and inventory reports standard in SAP B1).

Supplier Payment

On basis of GRPO, an AP invoice is added against that outgoing payment, which is done.


The sales BOM function is used.


Account Payable / Receivable invoice is created and the payment entries are posted (open document system gives proper control).


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

These are some of how SAP Business One benefits Oil and Lubricants Industry and increases its operational efficiency. Also, the overall performance of Oil and Lubricants Industries can be drastically improved.

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