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SAP for Textile and Garments Manufacturing

How SAP Business One Can Help in Your Textile Business

Revolutionizing Textile Manufacturing with SAP Business One

SAP for Textile and Garments Manufacturing

In the ever-evolving landscape of the Textile and Garments Industry, staying competitive requires a robust integration of SAP Business One and E-commerce platforms. The textile industry, once seen as crafting by hand, has evolved into a modern engineering field. It now uses advanced technologies and different types of fibers to create textiles. However, this progress comes with challenges like keeping enough dye in stock, organizing workers, and maintaining machinery. SAP Business One is a special software made just for textile and clothing businesses. It helps solve these big problems by combining everything into one easy-to-use system. This makes running the business smoother and more efficient. In this blog, we will explain how SAP Business One helps Textile manufacturers to evolve in the Industry with the updated Technology

Order to cash

The Make to Stock & Order process of the Textile and Garments Industry is as follows:

Once the yearly/quarterly or time period-based blanket agreement from the customer is received, the PO is created – which would be a Blanket agreement in SAP Business One. The FG is produced continuously in a periodic order as per that. This is then followed by Accounts Receivable Invoices and Incoming payments (Major Reports include Customer receivable, Cash flow, and Sales analysis).

Procure to pay 

Using the MRP function, by the start of the month, we plan for procurement and the purchase request is auto-created. Goods receipt is created against the Purchase Request by the stores, and as per the Accounts, the Payable invoice & Outgoing payment are done.

Sales orders for Textiles and Garments

SO is created from the blanket agreement or once PO is raised or once the quotation is confirmed by the customers of Textile and Garments Industries. Using DMS, the soft copy of the PO is also attached. Also, the payment terms and delivery date are fixed. And then, we do send the order acknowledgment from SAP Business One by email.

Sales Quote in SAP Business One

Once the Sales Quotation from the customers is confirmed by SAP Business One, it is converted to an order and the quote gets closed.


The MRP is used for Production planning and the procurement of required raw materials, considering the stock, and for opening PO (Purchase request for RM is auto-created as per the Order/Demand). This is also a critical aspect of the Plan to produce.

Purchase Request in SAP Business One

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

Purchase Order in SAP Business One for Textile and Garments

Based on the Purchase request, the PO is created by approval procedure.  For items having a default supplier, PO is automatically created by MRP, by fetching unit cost from the pricelist set.

GRPO in SAP Business One

Based on the PO, when the vendor delivers the item, the Goods receipt against the PO is posted which debits the inventory.

Supplier Payment for Textile and Garments with SAP Business One

Based on GRPO, a supplier invoice is added against which the outgoing payment is done.

Production in Textile and Garments with SAP Business One

As per the BOM, considering the demand and stock by MRP, production orders are auto-created. RM is issued route stage-wise, and once all the stages are completed, the receipt from production is done. The Finished goods come to inventory (Product Costing is a critical aspect of SAP Business One).

Invoice with SAP Business One for Textile and Garments

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

This is how SAP Business One benefits Textile and garment manufacturing – by increasing its overall efficiency. Also, the improvement of the manufacturing operations of Textile and garment industries can be achieved.

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