1.

Go to Financials  Chart of Accounts

a. How are the accounts classified? (To answer 1.a., Open a MS Word document and write your answer
preceded by 1.a. Save it as <Lastname>_<Firstname>_MD. All questions and screen shots asked below
will be answered using this MS Word document. Please ensure you type in the number before your
answer. All screen shots should include the upper portion of the main menu showing your name)

b. What are the 3 types of Balance Sheet accounts?

Assets, Liabilities, Capital

c. What are the 2 types of Income Statement accounts?

Sales and Expenditure

d. What are Title and Active accounts? Differentiate one from another.
a title summarizes all of the balances of each active account below it. Active accounts contain postings
of transactions You can differentiate titles and active accounts by their text color: titles appear in blue,
active accounts appear in either green or black. Green accounts are control accounts that have been
defined as default G/L accounts for automatic posting of transactions in SAP Business One. Black
accounts are those active accounts that have not been selected in G/L account determination

e. Notice the colors of text in the chart of accounts. Try to know the difference. What do you think does
it mean if the text is in color Blue? Green?
Title accounts appear in blue.
Active accounts appear in green

f. What is the “balance” for?

g. To add a new GL account, what is the first thing you do (after you go to Financials  Chart of
Accounts)?
Click Add or Ctrl +A

h. Add a new Title (175000 - Other Current Assets) which is level 3 under “Current Assets”.

i. Add a new Active Account which is level 4 ( 175001 – Other Prepayments). Ensure that it is
under level 3 Title “175000 - Other Current Assets”. Paste screen shot to the Word
document.
j. Add a new GL Account which is level 4 (100014 – Franchise). Ensure that it is under the Title Intangible
Assets.
2. Go to Financials  Edit Chart of Accounts
a. Select “Assets” and Edit GL Account 100014 – Franchise. (The Location in Drawer should be after
100013). Click Update. Paste screen shot to the Word document. Click OK.

3. Chart of Accounts / Edit Chart of Accounts

a. What is the Balance of GL Account “Cash at Bank – GBP Bank Account No.1”?
Php 24,083.51
b. What is the Balance of GL Account “Franchise”?
Php 0
c. Delete Title “Other Current Assets”. Paste screen shot in Word document to support work done.
 d. What happened to the GL account under the Title?
It was also deleted because the Title where it is under was deleted.

e. Delete GL Account “Cash at Bank - GBP Bank Account No.1”. Paste screen shot in Word
document to support work done.

f. What therefore is the criterion in deleting GL Accounts?

There must be no posted transaction in that account

4. Go to Financials  Chart of Accounts; choose Trade Debtors (Domestic); click on the navigational
arrow of the Balance.
a. What is shown?
It shows the cumulative balance of 16,061.68

b. Minimize the Chart of Accounts window so you can see the main menu showing your name in the
background. Paste screen shot.
c. Click on the navigational arrow before the Trans. No. number (If you can’t see any item,
untag/uncheck “Posting Date”). You are led to what? Click on the navigational arrow before IN. What
document is its origin?

It led to the journal entry in which it was posted. The origin document is the AR Invoice.
5. Navigation / Master Data
a. Go to Sales-AR  AR Invoice; click last data record icon; click on navigational orange arrow in
customer; click on accounting tab. Paste screen shot.

b. What is a control account?

The control accounts are linked to business partners and reflect their activities in the financial reports.
Only accounts defined in the Assets and Liabilities drawers can be defined as control accounts. Control
accounts appear in the chart of accounts in green.

This type of Account in SAP , is to maintain multiple Account in a Single Account called as Control
Account.

c. In the modules menu, what are the modules of SAP B1 to maintain Master Data? (Give at least 3
modules)
Business Partner, Resources and Inventory

d. What are the four active work modes in SAP Business One? _______Differentiate Add and Find
_________

Use the Add mode to enter new data in the application.

Use the Find mode to retrieve existing data. You can then view and update the displayed records.

Use the Update mode to modify existing information. For example, when you change the business
partner or item details, choose Update to approve the change and save it to the database.

Use the Confirm mode (the OK command button) to confirm any data change in SAP Business One.
6. Go to Business Partners  Business Partner Master Data

a. What is the default mode of the Business Partner Master Data form?
Find Mode is the default mode

b. Type * in the code field and click ok. What are shown? (To answer, paste your screen shot in the
Word document).

c. Switch to Add mode, click on the Payment Terms and Accounting tabs, what do you notice?
There are default payment terms in the fields. In the accounting tab, there are also default G/L
accounts like the Trade Debtors (domestic) and Advance customer payments for the down
payment clearing account.

d. What is the use of defaults?

Defaults are basic commands for new users. Defaults allow convenience especially if there are usual and
repetitive transactions

e. Can defaults be changed?

Yes
f. Create new group “Academe” for Customers and Suppliers.

g. Add new customer “USLS” use the new group created; fill in details using the different fields in
the general area and the tabs. (Paste a screen shot in the Word document)
7. Go to Inventory Item Master Data (add mode); Inventory Data tab
a. What are the different choices for setting G/L accounts that are available in SBO?
Warehouse
Item Group
Item Level

b. What are the different valuation methods available in SBO (relevant for perpetual inventory only)?
Moving Average
Standard Price
First-In First-Out (FIFO)

c.What do you select to define the warehouse (e.g. General Warehouse) as a default for the item?

d.What is “In Stock”? “Committed”? “Ordered”? “Available”? (Answer all the questions. Browse through
the system to prove your answers and Paste screen shot as proof after your written answers in the Word
document)
In Stock Onhand inventory status is what is currently in stock. Please note that this
number includes what is already committed on sales orders. So while you may have
some in stock, it could be the case that they are still not available to be sold to
customers. Your company's business processes must go over what you will do in the
case where product is overcommitted.
Ordered Ordered inventory status displays how much of an item is on purchase orders.
This takes into account all purchase orders in the system to come up with a total
number. It gives good visibility to sales people on what items, materials, or finish
product may be out of stock. It provides a quick check to see what your future inventory
stock levels might look like.
Available This inventory status is a calculated field and cannot be added directly to a
marketing document form settings. SAP displays the available inventory status as on
hand minus (-) committed inventory. It represents what is currently available for
purchase right now.

d. What is the effect of checking and unchecking of Manage Stock by Warehouse?

If checked, you can set the minimum and maximum level of stocks in each warehouse. If unchecked,
you can set the minimum and maximum level of stocks as a whole, regardless of what warehouse it
is located.

e. What is a Drop Ship warehouse?

Drop shipping entails shipping goods directly from your vendor to your customer without holding the
items as inventory in your warehouses.

A drop ship warehouse does not actually contain items; it is a ‘virtual’ warehouse. The moment the
goods ‘enter’ the drop ship warehouse, you ship them to your customer.

8. Go to Inventory Item Master Data (add mode);

a. Add item master of your choice (think of an item with different Purchasing UoM, Items per Purchase
Unit than the Sales UoM, Items per Sales Unit). Fill in the details in the general area and tabs. (Paste
screen shot with “Purchasing Data” and “Sales Data” in the Word document)

b. Set General Warehouse as the default warehouse. (Paste screen shot with “Inventory Data” in the
Word document)

9. Go to Financials-> Financial Reports -> Comparison -> Balance Sheet Comparison

Print screen and paste screen shot of the window in your Word document.

10. Save a copy of your MS Word document to our class directory under Midterm>Ex2_MD folder.