KPIs for Liquidity Ratios

Liquidity is a company's ability to pay off its short-term debts. It shows the proportion by which the current liabilities are covered by liquid assets. In general, the greater the coverage is, the more likely it is that the company is able to pay the debts when they fall due, and still be able to fund the ongoing operations. The list of predefined KPIs to determine Liquidity Ratios are: - 

• Cash Ratio (By Profit)

• Cash Ratio (By Revenue)

• Current Ratio

• Quick Ratio

For example the cash ratio indicates to creditors, analysts, and investors the percentage of a company’s current liabilities that cash and cash equivalents will cover. A ratio above 1 means that a company will be able to pay off its current liabilities with cash and cash equivalents, and have funds left over.

KPIs that Determine Profitability Ratios

Profitability measures a company's ability to generate earnings considering sales, assets and equity. It highlights a company's efficiency for gaining profits. It is an important element to the company’s investors, as it is one of the deciding factors that affects the dividend policies of the company. The list of predefined KPIs to determine Profitability Ratios are: - 

• Asset Turnover

• Gearing Ratio

• Gross Profit

• Gross Profit (LTD)

• Gross Profit (YTD)

• Gross Profit Margin

• Gross Profit Margin (YTD)

• Net Profit Margin

• Operating Margin 

• ROE

An example of how one of these KPIs can help your business grow is, by using the Asset Turnover KPI you can track the asset turnover ratio which is used to measure the efficiency of how well a company uses assets to produce sales. A higher ratio is favorable, as it indicates a more efficient use of assets.  

Working Capital Management KPIs

In the previous blog I wrote about KPIs in general, in this blog I would like to dive a little deeper and elucidate about  a specific type of KPI(Working Capital Management). Before learning about Working Capital Management KPIs, you must first understand what the word working capital signifies. Working capital is the amount of a company's current assets minus its current liabilities. The working capital ensures that the company is able to carry out its day-to-day operations, as well as to satisfy its maturing short-term debt and the upcoming operational expenses. These are the KPIs that are available as standard to manage and monitor working capital: - 

• Accounts Payable

• Accounts Receivable

• Cash

• CCC

• Customer Receivable

• DIO

• DPO

• DSO

• Inventory

• Inventory Turnover

• Inventory Turnover (Year)

• OC

• Open Amount of Deliveries for Customer

• Working Capital

For example, one of the many criteria to efficiently manage working capital is to complete your deliveries on time, by using Open Amount of Deliveries for Customer KPI, tracking becomes that much easier.

Introduction to KPIs

KPI stands for Key Performance Indicators. KPIs indicate a company's success level in it's various processes by converting them into quantifiable measurements. For example, one of the ways you can track the efficiency of your operations division is by closely monitoring its overdue deliveries, you can achieve this by setting a KPI to track the number of overdue deliveries for a fixed interval.  KPIs allow you to easily and quickly check progress towards achieving your company’s strategic goals and objectives. The ability to create your own KPIs gives you the option to design financial and operational KPIs that reflect your own unique business needs. The different types of KPIs available in SAP Business One are: - 

• Working Capital Management 

• Profitability Ratios 

• Liquidity Ratios  

• Debt Ratios 

• Financial Statement KPIs

• Daily Operational Indexes 

• Sales Side KPIs

• Purchasing KPIs

• CRM KPIs

SAP provides a large number of prebuilt KPIs but you can also design your own. You can base your KPIs on Analytic Views, Calculation Views, User Defined Queries. In the upcoming blogs I will be explaining all the different types of KPIs in detail. 

Introduction to SAP Business One Analytics powered by HANA

In today’s world efficient and timely reporting is no more a ‘nice to have’. With the current competition level in the market, it is imperative to have the right information at the right time. This is where SAP Business One Analytics powered by HANA comes into action. Since analytics is a broad term, what you get under SAP Business One Analytics  are Dashboards and Real-Time Reports. I know it doesn't sound like much but trust me, once you’ve seen the extent to which these two features could help improve your decision making process you will have your mind blown. 

For instance, Dashboards contain lots of interactive features to help you in your day to day business activities. Some of these features are: - 

• Pervasive Analytics 

• KPI Tracking 

• Consolidated Reports 

• Integrated Live Data 

In conclusion, the SAP Business One Analytics powered by HANA helps you in taking informed business decisions to stay relevant and grow in this highly competitive market conditions. In my upcoming blogs I will write about every individual aspect that makes SAP Business One Analytics powered by HANA an important part of your SAP Business One experience. 

Drag & Relate Tool Service Module (Service Contract Template Tab)

The Service Module in Drag & Relate tool is an effective way in which the user can create ad hoc reports that are related to Services. The fifth tab in this module is the  Service Contract Template Tab. Users can leverage this tab to create an ad hoc report in which the list of all Service Contracts Templates created in your system appear just by double clicking on the tab. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Template Name

• Deleted

• Renewal

• Remind Before Renewal

• Remind Unit

• Duration of Coverage

• Resolution Value

• Price List No.

• Include Labor

The user has the option to open the Contract Template Setup window directly from the report by pressing the golden drill down arrow. This option is available for every single row that is listed in the report. 

Drag & Relate Tool Service Module (Service Contracts Details Tab)

The Service Module in Drag & Relate tool is an effective way in which the user can create ad hoc reports that are related to Services. The fourth tab in this module is the  Service Contracts Details Tab. This tab is an extension of the Service Contract, using this tab the user can generate reports which contain row level details on an individual  Service Contract document as opposed to the previous report which only lists out the total number of Service Contracts available in the system. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Contract No.

• Serial Number

• Item Description

• Customer Equipment Card ID

• Termination Date

• Log Instance - History

• Start Date

• End Date

The user has the option to open the Service Contract Window directly from the report by pressing the golden drill down arrow. This option is available for every single row that is listed in the report.

Drag & Relate Tool Service Module (Service Contract Tab)

The Service Module in Drag & Relate tool is an effective way in which the user can create ad hoc reports that are related to Services. The third tab in this module is the  Service Contract Tab. Users can leverage this tab to create an ad hoc report in which the list of all Service Contracts created in your system appear just by double clicking on the tab. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Contract No.

• Business Partner Code

• Contract Status

• Contract Template

• Contract Type

• Duration of Coverage

• Start Date

• End Date

• Resolution Time

The user has the option to open the Service Contract window directly from the report by pressing the golden drill down arrow. This option is available for every single Service Contract details row that is listed in the report. 

Drag & Relate Tool Service Module (Customer Equipment Card Tab)

The Service Module in Drag & Relate tool is an effective way in which the user can create ad hoc reports that are related to Services. The second tab in this module is the  Customer Equipment Card Tab. Users can leverage this tab to create an ad hoc report in which the list of all Customer Equipment Cards created in your system appear just by double clicking on the tab. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Equipment Card No.

• Business Partner Code

• Business Partner Code

• Mfr Serial No.

• Warranty

• Item No.

• Delivery Key

• Delivery Date

The user has the option to open the Equipment Card window directly from the report by pressing the golden drill down arrow. This option is available for every single Equipment Card row that is listed in the report. 

Drag & Relate Tool Service Module (Service Call Tab)

The Service Module in Drag & Relate tool is an effective way in which the user can create ad hoc reports that are related to Services. The first tab in this module is the  Service Call Tab. Users can leverage this tab to create an ad hoc report in which the list of all Service Calls created in your system appear just by double clicking on the tab. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Call ID

• Subject

• Business Partner Code

• Creation Date

• Creation Time

• Resolution on Date

• Closing Date

• Document Number

The user has the option to open the Service Call window directly from the report by pressing the golden drill down arrow. This option is available for every single Service Call row that is listed in the report. 

Drag & Relate Tool Production Module (Production Order Details Tab)

The Production Module in Drag & Relate tool is an effective way in which the user can create ad hoc reports that are related to production. The second tab in this module is the  Production Order Details Tab. This tab is an extension of the Production Order Tab, using this tab the user can generate reports which contain row level details on an individual  Production Order document as opposed to the previous report which only lists out the total number of Production Orders available in the system. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Item Number

• Base Quantity

• Planned Quantity

• Issued Quantity

• Issue Method

• Warehouse

The user has the option to open the Production Order directly from the report by pressing the golden drill down arrow. This option is available for every single row that is listed in the report. 

Drag & Relate Tool Production Module (Production Order Tab)

The Production Module in Drag & Relate tool is an effective way in which the user can create ad hoc reports that are related to production. The first tab in this module is the  Production Order Tab. Users can leverage this tab to create an ad hoc report in which the list of all Production Orders  created in your system appear just by double clicking on the tab. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Order Number

• Item Number

• Status

• Planned Qty

• Completed Qty

• Rejected Qty

• Posting Date

• Due Date

The user has the option to open the Production Order directly from the report by pressing the golden drill down arrow. This option is available for every single row that is listed in the report. 

Drag & Relate Tool Inventory Module (Shipping Types Tab)

 The Inventory Module in Drag & Relate tool is an effective way in which the user can create ad hoc reports that are related to sales and purchase items. The fifth and the final tab in this module is the Shipping Types Tab. Users can leverage this tab to create an ad hoc report in which the list of all Shipping Types created in your system appear just by double clicking on the tab. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Code

• Name

• Data Source

• User Signature

• Web Site

The user has the option to open the Shipping Types setup window directly from the report by pressing the golden drill down arrow. This option is available for every single Shipping Type Row that is listed in the report.  

Drag & Relate Tool Inventory Module (Manufacturers Tab)

The Inventory Module in Drag & Relate tool is an effective way in which the user can create ad hoc reports that are related to sales and purchase items. The fourth tab in this module is the Manufacturers Tab. Users can leverage this tab to create an ad hoc report in which the list of all Manufacturers created in your system appear just by double clicking on the tab. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Manufacturers Sno.

• Brand Name

The user has the option to open the Manufacturers setup window directly from the report by pressing the golden drill down arrow. This option is available for every single Manufacturer Row that is listed in the report.  

The Brand Name field can be further used to create reports of numerous permutations and combinations. The user must drag and drop the selected code or name onto any other desired business process information tab under the drag and relate tool to create an ad hoc report. For example, if you would like to get the list of all sales orders created for a particular Manufacturer , what you should do is select that brand name from the list of all manufacturers, click on the brand name field till it is highlighted and then drag and drop the field onto Sales Order tab under the same Drag & Relate tool to generate the desired report. Similarly, the user can create dozens of other ad hoc reports by simply dragging and dropping. Some of the other business process tabs that can be used to generate ad hoc reports using Brand Name as selection criteria are: -

• All Tabs Under Sales Module (under Drag & Relate Tool)

• All Tabs Under Purchase Module (under Drag & Relate Tool)

Drag & Relate Tool Inventory Module (Warehouses Tab)

The Inventory Module in Drag & Relate tool is an effective way in which the user can create ad hoc reports that are related to sales and purchase items. The third tab in this module is the warehouses Tab. Users can leverage this tab to create an ad hoc report in which the list of all Warehouses  created in your system appear just by double clicking on the tab. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Warehouse Code

• Warehouse Name

The user has the option to open the Warehouse setup window directly from the report by pressing the golden drill down arrow. This option is available for every single Warehouse Row that is listed in the report.  

The Warehouse Code field can be further used to create reports of numerous permutations and combinations. The user must drag and drop the selected code or name onto any other desired business process information tab under the drag and relate tool to create an ad hoc report. For example, if you would like to get the list of all sales orders created for items for a specific warehouse , what you should do is select that warehouse code from the list of all warehouses, click on the group name field till it is highlighted and then drag and drop the field onto Sales Order tab under the same Drag & Relate tool to generate the desired report. Similarly, the user can create dozens of other ad hoc reports by simply dragging and dropping. Some of the other business process tabs that can be used to generate ad hoc reports using Warehouse Code as selection criteria are: -

• All Tabs Under Sales Module (under Drag & Relate Tool)

• All Tabs Under Purchase Module (under Drag & Relate Tool)

Drag & Relate Tool Inventory Module (Item Groups Tab)

The Inventory Module in Drag & Relate tool is an effective way in which the user can create ad hoc reports that are related to sales and purchase items. The Second tab in this module is the Item Groups Tab. Users can leverage this tab to create an ad hoc report in which the list of all item groups created in your system appear just by double clicking on the tab. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Serial No.

• Group Name

The user has the option to open the Item group setup  window directly from the report by pressing the golden drill down arrow. This option is available for every single Item Group Row that is listed in the report.  

The Group name field can be further used to create reports of numerous permutations and combinations. The user must drag and drop the selected code or name onto any other desired business process information tab under the drag and relate tool to create an ad hoc report. For example, if you would like to get the list of all sales orders created for a particular item group, what you should do is select that item group name from the list of all items groups, click on the group name field till it is highlighted and then drag and drop the field onto Sales Order tab under the same Drag & Relate tool to generate the desired report. Similarly, the user can create dozens of other ad hoc reports by simply dragging and dropping. Some of the other business process tabs that can be used to generate ad hoc reports using Item group name  as selection criteria are: -

• All Tabs Under Sales Module (under Drag & Relate Tool)

• All Tabs Under Purchase Module (under Drag & Relate Tool)

Drag & Relate Tool Inventory Module (Items Tab)

The Inventory Module in Drag & Relate tool is an effective way in which the user can create ad hoc reports that are related to sales and purchase items. The First tab in this module is the Items Tab. Users can leverage this tab to create an ad hoc report in which the list of all items created in your system appear just by double clicking on the tab. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Item No.

• Item Description

• In Stock

• Quantity Ordered by Customers

• Quantity Ordered from Vendors

The Item No and Item Description fields can be further used to create reports of numerous permutations and combinations. The user must drag and drop the selected code or name onto any other desired business process information tab under the drag and relate tool to create an ad hoc. For example, if you would like to get the list of all sales orders created for a particular item, what you should do is select that item no. or description from the list of all items, click on the item no. or item description till the field is highlighted and then drag and drop the field onto Sales Order tab under the same Drag & Relate tool to generate the desired report. Similarly, the user can create dozens of other ad hoc reports by simply dragging and dropping. Some of the other business process tabs that can be used to generate ad hoc reports using Item No and Item Description as selection criteria are: -

• All Tabs Under Sales Module (under Drag & Relate Tool)

• All Tabs Under Purchase Module (under Drag & Relate Tool)

• All Tabs Under Production Module (under Drag & Relate Tool)

• All Tabs Under Service Module (under Drag & Relate Tool)

• All Tabs Under Inventory Module (under Drag & Relate Tool)

Drag & Relate Tool (Campaign Details)

 The Business Partners Module in the Drag & Relate tool is very versatile in terms of functionality. The ninth business process information tab under this module is Campaign Details. As the name suggests, when you double click on this tab the user gets the row level details of all individual Campaigns created in the system. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Requester Name

• BP Code

• BP Name

• BP Group Name

• BP Industry Name

• Contact E-Mail

• Contact Telephone

• Contact Mobile

• Contact Fax

• Contact Address

The user has the option to open the Campaign window directly from the report by pressing the golden drill down arrow. This option is available for every single Campaign Details Row that is listed in the report.  

Drag & Relate Tool (Campaign)

The Business Partners Module in the Drag & Relate tool is very versatile in terms of functionality. The eighth business process information tab under this module is Campaign. As the name suggests, when you double click on this tab the user gets the entire list of all Campaigns (Customer & Vendor) created in the system. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Number

• Document Type

• Posting Date

• Valid Until

• Required Date

• Status

• Requester Type

• Requester Code

The user has the option to open the relevant Campaign window directly from the report by pressing the golden drill down arrow. This option is available for every single  Campaign that is listed in the report.  

Drag & Relate Tool (Blanket Agreement Details)

 The Business Partners Module in the Drag & Relate tool is very versatile in terms of functionality. The seventh business process information tab under this module is Blanket Agreement Details. As the name suggests, when you double click on this tab the user gets the row level details of all individual Blanket Agreements created in the system. In addition, the user can further drill down into the report using the filter option present in the bottom right corner.  Some of the fields that are available as standard in the report are: - 

• Agreement No.

• Agreement Row Number

• Item No.

• Item Description

• Item Group

• Planned Quantity

• Unit Price

The user has the option to open the Blanket Agreement window directly from the report by pressing the golden drill down arrow. This option is available for every single Blanket Agreement Row that is listed in the report.