Show TOC

Object documentationCompany Details: Basic Initialization Tab Locate this document in the navigation structure


Use this tab to define basic initialization values for the company.

To access this tab, choose   Administration   System Initialization   Company Details   Basic Initialization   tab.

Company Details: Basic Initialization Tab
Chart of Accounts Template

Select the chart of accounts that is the valid legal form for your company, or define your own by selecting User Defined. Alternatively, import the chart of accounts data from your legacy system.

We recommend using one of the existing standard charts of accounts and adapting it to the company’s needs as required. Defining the entire chart of accounts is a long, complex procedure.

Local Currency

Select the local currency. The currencies defined in SAP Business One are available in the list. To define a new currency, select Define New.

System Currency

SAP Business One can manage all transactions in a system currency parallel to the local currency. Select the required system currency from the list. To define a new currency, select Define New.

If defining a system currency that is not identical to the local (national) currency, the system currency can be used as the reporting currency. For example, the corporate group requires a different reporting currency from the national currency. Also define a daily exchange rate for the system currency. Every document, and all reports and balance sheets are posted in the database in both currencies.

If you do not have a reporting requirement in another currency, set the system currency to your local currency.

Default Account Currency

Determines the default account currency for new accounts:

  • Local Currency: Transactions can be posted only in the defined local currency.

  • All Currencies: Transactions can be posted in all currencies defined in the company database; however, balances, totals, and reconciliations are calculated and displayed in local currency only.

Display Credit Balance with Negative Sign

Select to display credit balances with a negative sign. According to the default settings, debit balances are displayed with a negative sign. This option cannot be changed after postings have been created in SAP Business One.

This setting influences the entry of beginning balances for the G/L accounts and business partners. Depending on this setting, the opening balances must be entered as positive or negative numbers. We recommend accepting the default setting, as this reflects the local requirements.

Use Segmentation Accounts

Select to specify if segments of information should be added to the standard account codes, such as division, region, cost center, and so on, for detailed transaction tracking and reporting.

Use Negative Amount for Reverse Transaction

Selecting this option results in journal entries where the reversal is booked with negative amounts. If you do not select this option, the journal entry of the reversal is booked using a debit/credit switch. This setting can be changed at any time.

Note Note

This field is not available for users in Brazil and Israel.

End of the note.
Permit More than One Document Type per Series

Certain country regulations permit document numbering series that contain more than one document type. All of these documents are part of the same numbering series. Select this option if these regulations are relevant for the company. This setting determines the settings that are displayed in certain Document Numbering windows, and cannot be changed after it has been selected.

Note Note

This field is not available for users in Brazil.

End of the note.
Multi-Language Support

Enables the Multi-Language Support function in the company.

Use this function to translate field names in SAP Business One to foreign languages and print them in documents you send to foreign business partners.

Use Perpetual Inventory

Select this option to indicate management of perpetual inventory accounting system. If selected, each transaction of inventory items is reflected also in the inventory related G/L accounts.

Note Note

After the first inventory transaction is posted, this option is disabled, and its status cannot be changed.

End of the note.
Item Groups Valuation Method

Specify the default valuation method for newly added item groups. This field is active only if the Use Perpetual Inventory option is selected.

The available valuation methods are:

  • Moving Average: Calculates the inventory value by the item cost (see the   Inventory   Item Master Data   Inventory Data   tab).

    This field is updated dynamically by every inventory receipt posting.

  • Standard Price: Calculates the inventory value by a fixed price.

    The item's standard price should be set before you start working in your company.

  • FIFO: Calculates the inventory value by the FIFO (first in first out) method.

    • Each inventory receipt transaction creates a "layer" of quantities linked to costs.

    • Each inventory release transaction uses quantities and their corresponding costs from the first open layers.

Note Note

You can change the selected valuation method at any time; however, the change applies only to item groups added after the change, not retroactively.

End of the note.
Manage Item Cost per Warehouse

This field appears only if you have selected the Use Perpetual Inventory option.

Select this option for calculating inventory pricing for each individual warehouse.

Deselect this option for calculating inventory pricing for all the warehouses combined.

Note Note

Users in China should select this field to group data by warehouse in the inventory audit report. Otherwise, the inventory audit report is grouped only by item, and the checkbox Group by Warehouses First is not visible for all the warehouses selected.

End of the note.
Use Purchase Accounts Posting System

In localizations where purchase accounting is used, selecting this option enables purchase accounting. Once journal entries have been made, this setting cannot be modified.

Note Note

This field is not available for users in Brazil.

End of the note.
Allow Stock Release Without Item Cost

Permits items to be included in documents such as deliveries or A/R invoices, even when the item cost has not been determined.

Select when the inventory valuation is performed according to moving average or FIFO. If you selected Standard Price, a cost has already been defined.

Ordering Party

This field is required for the interface with the Payment Engine add-on.

House Bank

Enter the company's default bank account and branch information.

Mask Credit Card Number

Selecting this checkbox masks credit card numbers as ************#### (that is, only the last four digits are displayed) on the user interface.

Deselecting this checkbox unmasks credit card numbers on the user interface.

You can change the checkbox status at any time.

Authorization is required for masking credit card numbers.

Country-Specific Fields: Austria, Belgium, Brazil, China, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Hungary, India, Irish Republic, Italy, Japan, Korea, Netherlands, Norway, Poland, Russia, Singapore, Slovakia, Spain, Sweden, Switzerland, and United Kingdom.
Install Bank Statement Processing

Select this option at any time to work with the bank statement processing functionality.

Caution Caution

If you choose Update after activating this option, the checkbox is disabled and cannot be deselected.

End of the caution.
Country-Specific Fields: Belgium, Brazil, Chile, China, France, Italy, Japan, Korea, Portugal, and Spain
Use Bill of Exchange

Select to indicate that the company uses bills of exchange (BoE). If not selected, all references to BoE in SAP Business One are hidden. When a BoE transaction is added, Use Bill of Exchange cannot be disabled. This option is relevant for Italy, Portugal, Spain and France and activated by default.

Country-Specific Fields: Chile, Costa Rica, Guatemala, and Mexico
Use Folio Number

To activate folio numbering for your company, select this checkbox.

For the Mexican and the Chilean localization, the folio numbering function is always activated.

Country-Specific Field: China
Calculate Cash Discount based on Gross Value

Determines whether gross or net value is used as base amount when cash discount is calculated.

Note Note

Users in Mainland China should select this option; users in Hong Kong should not.

End of the note.
Country-Specific Fields: Israel
Hierarchical Deduction at Source

Select to indicate that the company uses hierarchical deduction at source method for tax deduction. Once this option is selected, the Define Deduction Groups button appears. Choose this button to open the Deduction Groups – Setup window, in which you can define the relevant deduction groups for your company.