Business

Introduction

General Notes and Information It is strongly recommended that you read through the entire exercise prior to starting. Not all instructions

can be provided in a linear manner.

The following symbols are used to indicate important information as described below:

An arrow highlights an important instruction that must not be overlooked.

A text box prompts you to type-in an important piece of information.

Each student or group will be assigned a unique three digit identifier. This identifier is used in all

exercises to uniquely identify your data. Whenever you see ### in these exercises, replace it with your

identifier.

Always work with your data.

Business Process Overview The financial accounting process allows GBI to pay vendors for services or materials acquired. This

process can be used to pay for liabilities that GBI has incurred due to normal operations.

This exercise is about paying off liabilities within the accounting statements.

Chapter 03: Financial Accounting

Exercise 03-02: Basic Financial Accounting Process

Single Company Code

Version 1

Rev: 01/03/2011

Name(s):

Course & Selection:

Identifier:

Client:

For use with Magal / Word: Integrated Business Process with ERP; Copyright ©2011 John Wiley and Sons Publishers, Inc.

Chapter 04

Exercise 04-02

Page 2 of 17

Chapter 03: Financial Accounting

Exercise 03-02

Chapter 04: Procurement Process

Exercise 04-02: Basic Procurement Process

Single Company Code

Exercise Prerequisites Exercise 3-1 Financial Accounting Master Data-SCC

Exercise Workflow

Exercise Deliverables Deliverables are consolidated into one answer sheet at the end of this exercise. For this exercise

you will need the following deliverables.

In the System:

 Journal Entries

On Paper:

 Document numbers for each step.

 Answers to the Questions

You may be assigned additional deliverables. Be sure to check with your instructor!

Invest in GBI View Account

Balances

Purchase

Supplies for

Cash

Purchase

Supplies Via

Payables –

Misc.

Pay Rent

For use with Magal / Word: Integrated Business Process with ERP; Copyright ©2011 John Wiley and Sons Publishers, Inc.

Chapter 04

Exercise 04-02

Page 3 of 17

Chapter 03: Financial Accounting

Exercise 03-02

Chapter 04: Procurement Process

Exercise 04-02: Basic Procurement Process

Single Company Code

Step 1: Invest in GBI

In this step, an outside investor invests $60,000 in GBI. You must record this transaction in GBI’s

books within SAP. You will credit $60,000 to GBI’s common stock (shareholder equity) account and

debit the same amount from GBI’s bank account.

Step 1.1: Navigate to the transaction to enter in general ledger accounts:

Q1: What is the transaction code to post a journal entry: —————————-

You may be required to enter in your Company Code: US00.

Step 1.2: In the “Enter G/L Account Document: Company Code US00” screen enter the

following information:

Field Name Data Entry

Document Date Today’s Date

Posting Date Today’s Date

In order to search for your Elbow Pads, click on the search box next to the text field. In

the search window, enter *### in the Material field. This will bring up all of your materials.

Step 1.3: At the bottom of the screen, enter the following information:

Field Name Data Entry (Line 1) Data Entry (Line 2)

G/L acct Bank Account Common Stock

D/C Debit Credit

Amount in doc.curr. 60,000 60,000

Invest in GBI View Account

Balances

Purchase

Supplies for

Cash

Purchase

Supplies Via

Payables – Misc.

Pay Rent

Navigation

Accounting  Financial Accounting  General Ledger  Posting  Enter G/L Account

Document

For use with Magal / Word: Integrated Business Process with ERP; Copyright ©2011 John Wiley and Sons Publishers, Inc.

Chapter 04

Exercise 04-02

Page 4 of 17

Chapter 03: Financial Accounting

Exercise 03-02

Chapter 04: Procurement Process

Exercise 04-02: Basic Procurement Process

Single Company Code

(ENTER)

(SAVE)

Q2: What is the resulting document number: —————————————–

Q3: What type of document is this: —————————————————-

Exercise Deliverables

In the System:

 Completion of general journal entry, investment in GBI

On Paper:

 Answers to the Questions

 The table with data for your materials

For use with Magal / Word: Integrated Business Process with ERP; Copyright ©2011 John Wiley and Sons Publishers, Inc.

Chapter 04

Exercise 04-02

Page 5 of 17

Chapter 03: Financial Accounting

Exercise 03-02

Chapter 04: Procurement Process

Exercise 04-02: Basic Procurement Process

Single Company Code

Step 2: View Account Balances

Step 2.1: Navigate to the transaction to view account balances:

Q4: What is the transaction code to view account balances:————————————

Step 2.2: In the “G/L Account Balance Display” screen, enter the following:

To search for the Bank G/L Account Number, click on the icon next to the account number

field or press F4. Be sure to specify GL00 in the Chart of Accounts field. This search will

show all of the G/L accounts.

Field Name Data Entry

Account Number G/L Account Number for Bank Account

Company Code US00

Fiscal Year 2011

Select (EXECUTE)

Q5: What is the G/L account number for the Bank Account: ————————————–

Q6: What is the document currency: —————————————————————

Q7: What are the current debit balance for the Bank Account: ———————————–

Step 2.3: To view specific transactions for the Bank Account, double-click on the Total

Cum. Balance (lowest right field). This will bring you to the “G/L Account Line

Item Display G/L View” screen, which lists all of the transactions for the selected

month. The “DocumentNo” column breaks down the changes in the Bank

Account by separate transactions.

View Account

Balances Invest in GBI

Purchase

Supplies for

Cash

Purchase

Supplies Via

Payables –

Misc.

Pay Rent

Navigation

Accounting  Financial Accounting  General Ledger  Master Records  G/L Accounts

 Individual Processing  Centrally

For use with Magal / Word: Integrated Business Process with ERP; Copyright ©2011 John Wiley and Sons Publishers, Inc.

Chapter 04

Exercise 04-02

Page 6 of 17

Chapter 03: Financial Accounting

Exercise 03-02

Chapter 04: Procurement Process

Exercise 04-02: Basic Procurement Process

Single Company Code

Step 2.4: Within the “DocumentNo” column, search for document number in Step 1. Select

the check box on the left of the document number, and click the (DISPLAY)

icon for more details.

Step 2.5: In the “Display Document: Line Item 001” screen, click on the Document Overview

icon to view the journal entries. Two fields to the left of the account number

is the posting key field. The posting key describes the type of transaction

(expense, credit memo, stock initial entry, etc.) that is entered in a line item.

The Document Overview will bring up the “Display Document: Data Entry View” screen. This page

will display the accounts used by the document from step 1 and indicate how they are affected by

this transaction.

Q8: How many accounts are being affected within this transaction: ——————————

Q9: Which account is being debited: —————————————————————

Q10: Which account is being credited: ————————————————————–

Q11: Which period did this transaction take place in: ———————————————–

Exercise Deliverables

In the System:

 None

On the answer sheet:

 Answers to the Questions

For use with Magal / Word: Integrated Business Process with ERP; Copyright ©2011 John Wiley and Sons Publishers, Inc.

Chapter 04

Exercise 04-02

Page 7 of 17

Chapter 03: Financial Accounting

Exercise 03-02

Chapter 04: Procurement Process

Exercise 04-02: Basic Procurement Process

Single Company Code

Step 3: Purchase Assets & Supplies

In this step GBI will purchase supplies with cash. Because it is a cash transaction, GBI will not assume a

liability.

Step 3.1: Navigate to the transaction to purchase assets and supplies:

Q12: What is the transaction code to purchase assets: ————————————-

Step 3.2: Purchase Office Supplies with Cash:

In the “Enter G/L Account Document: Company Code US00” screen, enter the

following:

Field Name Data Entry

Document Date The 20 th

of the current month and year

Posting Date The 20 th

of the current month and year

At the bottom of the screen enter the following information:

Field Name Data Entry (Line 1) Data Entry (Line 2)

G/L acct Supplies Expense Bank Account

D/C Debit Credit

Amount in doc.curr. 500 500

Cost Center Field

(scroll to the right)

NAAD1000 (leave blank)

(ENTER) and (SAVE)

Purchase

Supplies for

Cash

Invest in GBI

Purchase

Supplies for

Cash

Purchase

Supplies Via

Payables –

Misc.

Pay Rent

Navigation

Accounting  Financial Accounting  General Ledger  Posting  Enter G/L Account

Document

For use with Magal / Word: Integrated Business Process with ERP; Copyright ©2011 John Wiley and Sons Publishers, Inc.

Chapter 04

Exercise 04-02

Page 8 of 17

Chapter 03: Financial Accounting

Exercise 03-02

Chapter 04: Procurement Process

Exercise 04-02: Basic Procurement Process

Single Company Code

A warning (YELLOW) message may occur concerning a future date. If this occurs, then click

on Enter to continue. Keep this in mind for Step 3 through Step 5.

Q13: What was your document number for the purchase of Supplies: ————————-

Refer to a previous exercise for instructions on how to review account balances. Review the supplies

account and bank account to answer the following questions.

Q14: What is the G/L account number for Supplies Expense: ———————————

Q15: What is the G/L account number for Bank Account: ————————————–

Q16: What is the posting key for Supplies Expense: ——————————————

Q17: What is the posting key for Bank Account: ——————————————-

Exercise Deliverables

In the System:

 Completion of general journal entry to purchase supplies

On Paper:

 Answers to the Questions

For use with Magal / Word: Integrated Business Process with ERP; Copyright ©2011 John Wiley and Sons Publishers, Inc.

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