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What is SBO

The SAP Business One application is an affordable, comprehensive solution that provides functionality for every core process you need to run your entire business. SAP Business One supports sales, customer relationship management (CRM), purchasing, inventory, operations, financials, and human resources without the need for separate installations and complex integration of multiple modules.

This is  specifically designed  for small businesses, SAP® Business One is a single, affordable application for managing your entire business with greater clarity, including financials, sales, customer relationships, and operations. It helps streamline your end-to-end operations, gain instant access to complete information, and accelerate profitable growth.

Business Challenges:

  • Find time to focus on growing your business
  • Access the right information to make key decisions
  • Build and maintain closer customer relationships
  • Minimize duplicate data entries, errors, and delays
  • Optimize cash flow for business needs

Key Features:

  • Accounting and financials – Manage your general ledger, journals, budgets, and accounts receivables and payables
  • Sales and customer relationship management – Manage the entire sales process from first contact to closing the sale and from customer data management to after sales support
  • Purchasing and operations – Control the entire procurement process
  • Inventory and distribution – Manage inventory across multiple warehouses and locations, and track and record stock movements
  • Reporting and administration – Create, manage, and distribute reports that help foster clarity in your business

Business Benefits:

  • Spend more time growing your business using newly streamlined operations instead of reacting to the details of day-to-day tasks
  • Respond quickly to customer needs by instantly accessing the information necessary to make confident business decisions
  • Eliminate redundant data entry and errors with a single, integrated system that improves process efficiency, minimizes costs and delays, and strengthens your bottom line
  • Form closer customer relationships via centralized information that makes it easier to manage customer communication and sales contracts
  • Lower your technology costs and achieve faster time to value by using a system that can be implemented quickly, is uncomplicated to maintain, and minimizes end-user training


 Site preparation:

  • This topic is out of scope but only few lines I want to drop on this topic that always use updated operating system version of your OS. Update your OS to latest service pack and apply latest hot fix before you proceed.
  • Install antivirus and keep it update
  • Update your firewall and open recommended ports for SBO communication
  • Make a restore point or take backup and/or  backup you system registry before you proceed

What Software needed?

  1. SAP Business One 2007A1 or SAP Business One 8.81
  2. Microsoft SQL Server Enterprise Edition 2005 or 2008

How to install SBO

In this release MS-SQL is default database and shipped with SAP Business One 2007A. We can proceed with installation with below given options

  1. Install SBO & MS-SQL in consecutive manner
  2. Install MS-SQL Server prior SBO

Both methods are fine, ultimate goal is successful installation of SBO. Whatever option you decide put the below given values in MS-SQL


At the moment I would like to go with default installation option – 1

  1. Login as Administrator or power user (with Administrators privilege).

Insert DVD of “SBO B1 2007A” – Main Menu (Fig:1) will pop up automatically because its auto-run but if not, double click on your DVD from “My computer”, open the AUTORUN folder, and double click on “Autorun.html”


The main menu (Fig: 1) offers the four options

  • Installation (for Server or Client software)
  • Browse CD/DVD
  • Read ME
  • Documentation

We will proceed with Installation. The next screen (Fig: 2) has two options – SERVER or CLIENT.

At the moment we will proceed with server. And later on CLIENT – when server will become ready.


 System will automatically detect either MS-SQL (database) is installed or not? If you want to go with other database (DB2 or Oracle) take SKIP from SBO installation.

Click INSTALL, as we want to install SQL SERVER because it’s our fresh installation.


The next screen is Fig:04

The default installation path will appear. You can edit it – simply type new installation path or press BROWSE button to choose new location.

N.B :- Don’t press INSTALL until you replace SQL SERVER – DVD in your system. When done wait for a while and press INSTALL to go ahead


“SQL SERVER 2005”- License agreement screen (Fig: 05) will appear, accept the terms and conditions and press NEXT button.

Remember without accepting terms and condition you can’t precede.


Next screen (Fig: 06) is simply information – Click INSTALL and go ahead to next dialog (Fig: 07).


 Next screen (Fig: 07) is again information dialog, press NEXT to proceed.


Actually from this point (Fig: 08) – Server installation will take place. Press NEXT to proceed


MS-SQL Server will check necessary components to proceed with installation. If this check is successful you will see Fig: 09 – This dialog shows all details of supported components present on your machine.


If you got zero error and green SUCCESS tick – press NEXT button to proceed, otherwise rectify problem and try again.

As shown below in fig: 10 is detailed warning message, which you received in fig:09 press on message and you will get it.


Here is registration screen (Fig:11).

Name: Your’s Name

Company: Your’s Company Name

License Key: 25-Character long

In our case license key is embedded

Press NEXT button to proceed.


On next screen (Fig: 12) we will choose SERVER components to install – as SAP guided we will take only two options (See Fig: 12):

  1. SQL Server Database Services
  2. Workstation Components, books and development tools


For Advance options please look into fig:-13 . Advance options gives us control to change installation path and can choose among various components. “DISK COST” button shows available disk space and required space for proposed installation.


Next step is to give a name to Database Instance (fig: 14). The default name is MSSQLSERVER or you can change it as you like. Press NEXT button and you will reach to Fig: 15.


As you are installing for SBO so we will follow the given instruction by SAP and should chose as shown in Fig: 15 and press NEXT.


Choose Mixed Mode and type super user password (SAPB1Admin). As shown in fig:16 and press NEXT.


Choose as illustrated in Fig: 17 – as its recommended by SBO

Press NEXT to proceed


Fig: 18  – Error and Usage report setting don’t tick/check any option simply press NEXT


Installation summery (fig: 19) will appear for your information and review.

If it seems okay press INSTALL to proceed.


During installation there are couple of dialogs to keep you informed like fig: 20 & 21


Fig:20 – compatibility issue of Visual Studio 2005. The reason for this incompatibility is, I am using 64-bit platform and “Visual Studio” is 32-bit application. Dialog is offering two options – 1st CHECK FOR SOULTIONS ONLINE and 2nd RUN PROGRAM. (Microsoft offers few patches to fix this compatibly issue)


Setup progress information screen (fig: 21) will appear. Press NEXT and proceed to final screen (fig: 22)


Press FINISH – congratulations you successfully completed MS-SQL installation

N.B :- Now put DVD “SAP Business One 2007A” in your system

When you will put SBO DVD in your will see Fig: 1, 2, and 3 (as you are familiar with it). After pressing INSTALL button on fig: 3 – the next screen will appear like fig: 23.

You have two options with SBO installation,


TYPICAL is most favour for ordinary users – Its pretty straight forward.

CUSTOMIZE will give flexible installation – You can choose needed components and can change default installation path.


Whatever installation path you take the given below components are mandatory to make SBO operational.

  • Business One 2007
  • Server Tools
  • Addon Outlook . . .

It’s recommended to go with typical installation – above given three application will be installed by itself. You don’t need to go one by one with each.

Screen like Fig: 24 will appear to install first application “SAP Business One Server”, as highlighted red in fig: 24.


 Next step is screen fig: 25 – press NEXT button to proceed with installation.


User and company information is required on screen fig: 26.

Press NEXT to proceed 


“Business one 2007” offers three ways to go –  Typical, Compact or Custom. This is one of the core component of “SAP Business One 2007”, it comprises of

  1. System Database (Common Database)
  2. Demo database (Country dependent)
  3. Server components
  4. SAP Add-on
  5. Help

In Custom Installation you have the option to choose among given options but remember that “System database” and “Server components” are essential to run system. 

If you decide to go with Compact installation – Only “System database” and “Server components” will be installed

Typical installation will install all above mentioned components silently.


Anyway I am assuming that you will go with TYPICAL option.

Press NEXT and screen (Fig: 28A) will appear. It’s actually conformation of database – you installed.

If database is installed on your system (as we have done), installer will ask for server-Type. If you have more than one database installed on your system then drop down menu will show a list of installed databases. Or you can overwrite the type of your database. In our case “MSSQL_2005” is correct string, press NEXT to proceed.


You will screen like (Fig:28B)  – You have to put database credentials.

Server Name:  [Local]

User Id: sa

Password: SAPB1Admin (As we set during DB installation)

Press NEXT to proceed.

If you decide to go with CUSTOM or COMAPCT option in “Business One 2007” the below menu will appear (Fig:29)- You can select desired components.


Again press NEXT on screen (Fig: 30) to start copying files to you your computer system.


Installation process can take 5 – 10 minutes (depend on your machine). Various information screens will appear and installation will keep going.

Unfortunately you will face two error messages during installation as shown in fig:31. Simply press OK. I can’t judge the reason of this error – but this will not affect installation process or functionality of SBO – Error databases will also be installed and they all are operational and working.


The last and final screen (fig: 32) will appear and its completion message. Press OK to finish installation process.



PDF of this guide can be download


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