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As a result of SAP's continuous efforts to meet advancement in technologies and industry expectations SAP Business ByDesign (SAP ByD) cloud based ERP solution is available for mid market customers. As there is already SAP Business One solution is also available for mid market most of customers asked why we should go for SAP ByD so i will try to compare the feature in financial modules of both systems as financials are backbone of each business. For other modules i will try to compare in my other blogs.

Before starting anything i would like to clear one thing this blog is not intended to discourage any product/service offered by SAP or any other company to its customer, purpose of this blog is just to help the business users and decision makers to select the proper ERP product which fits to their needs. 

SAP ByD is the product for small and medium enterprises (SME) while some people says SAP Business One is also for Small and medium enterprises but in some cases medium enterprises with complex business process high requirements cannot use SAP Business One.

Below is the comparison of SAP Business One Financials and SAP ByD financials

  1. If you requirement of different financial reporting like one financial reports as per IFRS and one set as per GAAP or tax requirements with SAP ByD you can set different Books Of Accounts for different financial reporting requirements and whenever these is financial transaction it will effect all the books automatically while with SAP Business One you cannot achieve this only possible option is to have different companies and use some development or integration to replicate data.

  2. Like above in SAP ByD you can have multiple chart of accounts for one company and chart of accounts are linked with financial books and transactions automatically effects the GLs in different chart of accounts. While SAP Business One does not offer any such feature.

  3. You can have different financial periods for different financial books like one period starts from 1st Jan to 31st Dec and another one with 1st June to 31st December and you generate financial reports based on these periods. While SAP Business One have option to create only one posting period for one company

  4. SAP ByD offers different posting methods for revenue recognition like realizable, accrual, deferring to other accounting period and after booking system will auto clear revenue from accruals to actual sales revenue accounts. While SAP Business One does not offer different methods of revenue recognition.

  5. Similarly for revenue recognition SAP ByD Supports different accrual methods for different sales documents like point of invoice, Point of delivery, Continue to defer, Reverse deferrals and accruals, Recognize based on manual amounts i.e when you want to book your revenue at the time of delivery of Invoice. While SAP Business One does not offer any such feature.

  6. SAP ByD offers built in analytics like early margins information from Sales. While In SAP Business One version for HANA built in analytics are available but not in details like SAP ByD.

  7. In SAP ByD purchasing supports different account assignments like cost center, project, sales contract, sales Oder,service order, individual material(IMAT) and subsidiary ledger depends upon these assignments also. While in SAP Business One you can assign cost centers, projects or internal purchasing for stock only.

  8. In purchasing  SAP ByD offers invoice receipt concept (GR/IR) to confirm invoice from vendor is received and if there is any variance its understood and accepted. this invoice receipt is saved in system before booking final invoice. While in SAP Business One there is direct invoice after receiving goods. If there is any variance obviously it will effect the inventory cost but  there is no document between goods receipt and A/P invoice to save the information of invoice received and ongoing communication with vendor to resolve the discrepancies.

  9. SAP ByD offers document flow to see the history/details of base documents while SAP Business One Offers relationship map to see history/details of all base documents.

  10. SAP ByD offers project types like direct cost projects, overhead cost project, Customer and multi customer projects and financial transactions are restricted automatically as per project types. While business one only offers project types as internal or external and there are not much extensive controls to book revenue and cost based on project types.

  11. For project planning and budgeting SAP ByD offers feature to plan service and materials required for project using pre-defined methods. While SAP Business One does not offer any such facility.

  12. In SAP ByD production module to save the variance user has to confirm he understood variance reasons and then by wizard he can post variance and clear the work in process accounts, While SAP Business One does not offer any such wizards only concept of production order closing is there and system clears the variance at teh time of production order closure.

  13. In SAP ByD Costing methods depends upon company, cost type and product category and its same in SAP Business One also.

  14. In SAP ByD you can save the cost center rates for cost also without linking any resource or labor item.  While in SAP Business One you cannot save cost center rates.

  15. In SAP ByD you can upload item master by import feature, in Business One also you can import by excel.

  16. SAP ByD offers  automatic creation of supplier invoices just by scanned copies of PDF, RTF, DOC, TXT format, user will just review and clear exceptions of missing information then supplier invoice is created. SAP Business One offers feature of electronic documents but no option to review like SAP ByD. In B1 its either errors in uploading or successful uploading no concept of partial uploading.

  17. SAP ByD offers expense reimbursement management with different expense types and reimbursement groups, expense can allocated to customer contract, project task, cost center, sales order and service order. SAP Business One does not offer any standard features for this however simple workarounds cater this requirements with the help of A/P invoice but assignment to sales order and services orders required customization

  18. SAP BYD offers VAT setup by country and based on customer and buyer location, vat return runs to calculate all vat and vat report to show net receivable / payable amount and then payment to authorities after approval from system.. In SAP Business One some localization offers VAT setup based on buyer and seller locations and input and output VAT reports are there but there is no concept of finalizing VAT returns.

  19. SAP Business ByDesign uses a tax decision tree as per country (if you have multiple countries in system)  to correctly determine the tax codes. While SAP Business One has simple setup to define tax codes.

  20. In SAP ByD and Business One automatic payments and receipts by run based on predefined payments methods and some bank formats of certain countries are also available.

  21. SAP ByD offers petty cash management with the help of petty cash account definition, balance count and with transfer cash from bank to petty cash account facility by using specific form for this transaction. SAP Business One have simple definition of cash account and there is no dedicated documents for petty cash management,

  22. In SAP ByD there is liquidity management for batter cash flow planning in terms of receivables and payable according to due dates. SAP Business One has simple cash flow and aging reports the is no standard consolidated report of liquidity.

  23. SAP ByD has period end closing and tax adjustments in single books of accounts or multiple books of accounts while SAP B1 has no concept of different books so only one period end closing.

  24. SAP ByD offers separate form for tax adjustment journal entries while SAP business uses same form of Journal entries for all.

  25. In SAP ByD user cannot close a period if open transactions like open draft documents exist for the period. While SAP Business One does not have any such checks.

  26. In SAP ByD you can lock each specific transactions in a closed period while SAP has not option to select each transaction,

  27. User can use different runs before period end closing like reconciliation run, depreciation and revaluation runs in both system like SAP Business One and ByD.

  28. In SAP ByD Income statement is based on functional areas like Sales and Direct cost as main titles. While in SAP Business One you can achieve this by defining financial report templates.

  29. In SAP ByD balance sheet can also be based on cost centers and cost center groups, one company or multi company and multi books of accounts. While in SAP Business One you cannot generate balance sheet based on cost center and for multiple companies, for multiple companies you need to have inter company add on as in SAP you cannot have multiple companies in one database.

  30. In SAP ByD there are purchase and Sales registers other than General ledgers and 130 standard reports related to General Ledger. While in SAP Business One there is no sale or purchase registers its only sales / purchase analysis reports.

Thanks everyone for reading this blog.

Happy Working to All!
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