Download Module 1 Assignment Part 2 - University of Colorado Boulder

16
Accounting Information Systems
Module 1 – Assignment:
Financial Accounting Practice Set
Last revised 12/27/2007
Assignment Learning Objectives:
o Begin using a computerized accounting information system
o Begin work with the SAP ERP system
INTRODUCTION:
This assignment is a review of general financial accounting principles and procedures. You will
create general journal and adjusting journal entries for a series of transactions in an automated
system (SAP/R3 system). In a true ERP or integrated accounting system, these transactions
would flow through to the general ledger via other functions within the system. For example, sales
transactions would be created in a sales order module. When the sale is processed by someone
outside of the accounting department, the appropriate journal entries would be automatically
created in the general ledger by our accounting system. However, it is also possible to post
transactions directly to the general ledger as we will do in this assignment. We will then use the
SAP system to produce a set of financial statements (balance sheet and income statement).
Cottonwood Distribution, Inc.
Cottonwood Distribution, located in Red Bluff, CA was the “brain child” of two California State
University, Chico graduates. Cottonwood purchases products from local producers and distributes
them to rodeo event organizers throughout the United States, Australia, Canada, and South
America. Cottonwood has two main product lines: “resale merchandise”, which includes belt
buckles, apparel, posters, and other items purchased by the event organizer and re-sold to
customers at the rodeo stores; and “event merchandise”, which includes any promotional materials,
tools, tack, gloves, chaps, and so on used by rodeo participants and organizers. Sales tax of 7.25%
must be charged on event merchandise sold and delivered or shipped within the state of California.
(Resale merchandise is taxed when sold to the end consumer.)
Cottonwood Distribution began business on January 1, 2004. Cottonwood’s fiscal year begins on
January 1 and ends on December 31. The company is organized as an S-corporation under
California Corporations Code section 100 and both owners own equal shares in the corporation.
The company currently rents a “complex” of two large warehouses linked to a 4000 sq.ft. office
building, located off highway 99. The company plans to build a new facility within the next five
years, but needs to make some improvements to the rented facilities in the meantime. In 2006,
owners and managers of Cottonwood agreed to a 2007 budget, which included adding industrial
shelving in one of the warehouses for inventory storage and new shrink-wrap equipment for
packaging their products.
When the company first started, a manual accounting system was put in place. However, the
company has decided that it needs to computerize its accounting process to be more efficient. In
addition, in order to expand their sales to the PRCA, (Professional Rodeo Cowboy’s Association),
Cottonwood must have EDI capabilities by January 1, 2008. A project team has been established
to meet this deadline and the computerization of the accounting system is the first step in
implementation of the company’s new information system and their link to the PRCA.
©SAP AG 2009 / SAP University Alliances
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Computer consultants have configured the new computer system and it is ready to use. The books
of the company were closed on December 31, 2006 to prepare for the transition to the new system.
The account balances are now ready to be transferred to the new computer system. Running
parallel manual and automated systems for a period of time is a standard business practice that
reduces the risks associated with implementing new systems. In this assignment, you will only be
completing the automated portion, then comparing automated system Trial Balance with a manual
EXCEL system Trial Balance (provided).
The next page shows Cottonwood Manufacturing’s chart of accounts followed by the account
balances as of December 31, 2006 and then the descriptions of events occurring during January
2007 for which you are to make general journal entries and adjusting entries into the SAP ERP
system. When you enter your data into the SAP system the resulting financial information from the
manual system and the SAP system should match.
DETAILED REQUIREMENTS:
Use the SAP ERP system to record the daily transactions if appropriate, (some transactions may
not involve journal entries), as general journal entries. This should be done in a series of steps:
 Examine the A321 chart of accounts.
 Record beginning account balances in the SAP general ledger. This should be done as
one composite journal entry (the first journal entry). Use January 1, 2007 as the journal
entry date for the beginning account balances.
 Record the daily transactions for January in the SAP general ledger (do each journal
entry as a separate entry, not as one giant composite entry, be sure to use appropriate
dates).
 Display the trial balance (you should compare this to the EXCEL Trial Balance).
 Record the adjusting entries.
 Simulate a closing (not actually close) the books as of January 31, 2007 using the SAP
utility. (Do not enter closing entries into the general ledger. These entries would be done
automatically through the SAP month-end closing function.)
Instructions for using the SAP ERP system start on page 13 of this document.
©SAP AG 2009 / SAP University Alliances
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Use the following beginning balance and transaction information. A chart of accounts is
also included.
Chart of Accounts for Cottonwood Distribution Inc.
G/L Account No.
Account name
1001
1101
1111
1201
1202
1301
1302
1303
1304
1310
1401
1411
1501
1511
1601
2001
2002
2003
2004
2005
2010
2020
2030
2099
2100
3000
3100
4001
4002
4099
4100
5001
5002
6001
6002
6003
6004
Cash (Bank of America checking account)
Accounts Receivable
Allowance for doubtful accounts
Resale Merchandise Inventory
Event Merchandise Inventory
Office Supplies
Prepaid Insurance
Prepaid Rent
Prepaid Advertising
Deposits
Warehouse and Office Equipment
Accumulated depreciation - Equipment
Buildings
Accumulated depreciation – Buildings
Land
Accounts Payable
Accrued Wages Payable
Accrued Payroll Taxes Payable
Accrued Sales Tax Payable
Accrued Interest Payable
Other Payable
Dividends Payable
Current Maturities of Long-Term Debt
Other Accrued Expenses Payable
Notes Payables
Common Stock - (no par)
Retained Earnings
Resale Merchandise Sales
Event Merchandise Sales
Miscellaneous Revenue
Purchase Discounts
Cost of Goods Sold – Resale Merchandise Sales
Cost of Goods Sold – Event Merchandise Sales
Advertising Expense
Depreciation Expense
Insurance Expense
Interest Expense
©SAP AG 2009 / SAP University Alliances
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6005
6006
6007
6008
6009
6010
6011
6012
6099
Office Supplies Expense
Rent Expense
Salaries/Wages Expense
Shipping Expense
Utilities Expense
Computer Expense
Bad Debt Expense
Maintenance & Repairs
Miscellaneous Expense
Beginning Account Balances as of December 31, 2006 – Cottonwood, Inc.
Acct #
Account Name
1001
1101
1111
1201
1202
1301
1302
1303
1304
1310
1401
1411
1501
1511
1601
2001
2002
2003
2004
2005
2010
2020
2030
2099
2100
3000
3100
Cash
Accounts Receivable
Allowance for doubtful accounts
Resale Merchandise Inventory
Event Merchandise Inventory
Office Supplies
Prepaid Insurance
Prepaid Rent
Prepaid Advertising
Deposits
Warehouse and Office Equipment
Accumulated depreciation - Equipment
Buildings
Accumulated depreciation - Buildings
Land
Accounts Payable
Accrued Wages Payable
Accrued Payroll Taxes Payable
Accrued Sales Tax Payable
Accrued Interest Payable
Other Payable
Dividends Payable
Current Maturities of Long-Term Debt
Other Accrued Expenses Payable
Notes Payables
Common Stock - (no par)
Retained Earnings
©SAP AG 2009 / SAP University Alliances
Debit Balance Credit Balance
135,982
0
54,500
0
0
5,321
109,821
0
158,122
0
602
0
4,800
0
5,000
0
0
0
0
0
162,000
0
0
21,600
0
0
0
0
0
0
0
16,050
0
20,400
0
0
0
4,178
0
0
0
0
0
0
0
11,206
0
2,538
0
59,334
0
200,000
0
290,200
5
DESCRIPTION OF EVENTS OCCURRING January 1 –31, 2007
Date
1
Description of Event
January 2,
2007
2
3
Employees are paid bi-monthly on the first day of the month for
work performed during the last half of the previous month
(because of the New Year’s holiday, this month they are paid
on the 2nd), and on the 16th for work done during the first half
of the current month. Total wages paid on this date were
$20,400. (Ignore payroll taxes for this assignment.)
Cottonwood signed and paid for an annual advertising
agreement with the PRCA for banner ads on the PRCA
website. Cottonwood’s advertisements will be posted to the
website starting in March 2007 and run until February 28, 2008.
The contract cost is $7,200 plus any art and setup charges,
which will be billed as they occur.
January 3,
2007
Cottonwood’s office manager picked up office supplies from
Office Max on her way into work. She checked the orders
against Cottonwood’s purchase order and stocked the supplies
in the supply cabinet. The Office Max invoice totaled $362 and
payment terms are net the 15th of the month.
4
Cottonwood received a check for $12,620 from one of their
customers as payment for a previous order.
5
Cottonwood received a shipment of event merchandise from
the Rodeo Outfitters Company. This merchandise was ordered
on December 20th and was delivered by Viking Freight. Rodeo
Outfitters paid Viking for the shipping charge of $882.
Cottonwood is to pay Rodeo Outfitters $92,000 based on terms
of 2/10 net 30.
6
Cottonwood received their new product catalogs ordered from a
local print shop. The print shop billed Cottonwood $6,000 for
5,000 catalogs with payment terms of net 10. Cottonwood
considers catalogs as advertising and expenses the catalogs at
the end of the month based on how many catalogs are sent out
during the month.
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7
January 4,
2007
Cottonwood received an order from the FFA rodeo in LaJunta
Colorado, (LJ FFA), for $19,820 in event merchandise. The
Cottonwood customer service representative confirmed that the
LJ FFA Rodeo’s account was paid current and they had
sufficient credit available to cover the new sale. The order was
then sent to the warehouse where it was picked and prepared
for shipping. The merchandise was shipped via UPS at a cost
of $170, which was paid by Cottonwood. Cost of the
merchandise shipped was $12,584. Terms of the sale are net
30.
8
January 5,
2007
Cottonwood placed a purchase order with the Lazy J Ranchers
Emporium for $76,000 in resale merchandise. Payment terms
to Lazy J Ranchers are net 30 upon receipt of goods.
9
Cottonwood paid an outstanding vendor invoice of $16,050.
10
Cottonwood paid the December telephone bill to AT&T in the
amount of $428. Expenses are usually accrued at the end of
the month as “other accrued expenses payable”.
11
January 8,
2007
Cottonwood hired an additional employee for the warehouse.
She starts work today. As with all of the other employees, this
employee will be paid bi-monthly at a rate of $2,400 per month.
12
Cottonwood received an order from the Del Norte County
Rodeo in Trinity, CA for $18,000 of resale merchandise. This is
a new rodeo with no credit history. Cottonwood has requested
payment in full prior to the delivery of goods. The cost of the
goods ordered is $10,440.
13
One of Cottonwood’s sales reps sold event merchandise to the
Dust Bowl Rodeo in Kansas for a total sales amount of
$126,000. Terms of the sale are net 15 and will be paid by
electronic funds transfer (EFT). The order information was sent
to the warehouse where the merchandise was picked and
packaged for shipment. The order was picked up by CWX
Freightlines and shipping costs of $685 were paid by
Cottonwood at the time of shipment. Cost of the merchandise
shipped was $80,600.
©SAP AG 2009 / SAP University Alliances
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14
15
Cottonwood received customer checks totaling $28,400 for
payment on outstanding accounts.
January 9,
2007
Cottonwood paid the December’s Pacific Gas & Electric
(PG&E) bill in the amount of $2,110 using their bank’s
automated bill payment system.
16
A wire transfer in the amount of $18,000 is received from the
Del Norte County Rodeo for payment of the order placed on
January 8th. The goods are picked, packaged and shipped via
UPS. Cottonwood has an account with UPS and will pay the
shipping costs of $112 for this order. UPS’ payment terms are
net 7 days.
17
Alamo Conference Center in Texas placed an order via email.
Cottonwood’s sales rep wrote up the order, checked their credit
and sent the order information to the warehouse for shipping.
The sale amount was $102,240, which included $80,100 in
resale merchandise and $22,140 in event merchandise. The
cost of the resale merchandise was $51,264 and the cost of the
event merchandise was $11,513. The goods were shipped that
day. Cottonwood paid the shipping expense of $1,502.
Payment terms for the order are net 15.
18
January 10,
2007
Cottonwood’s warehouse received the January 5th order from
Lazy J Ranchers Emporium. The inventory was counted and
placed on the shelves. Proof of receipt and the vendor’s invoice
was sent to accounting. Lazy J paid the shipping of $1,190.
19
January 11,
2007
Cottonwood placed a purchase order with a local vendor for the
new industrial shelving for the warehouse that was approved in
Cottonwood’s budget. The total price for the shelving is
$24,000 plus 7.25% sales tax. Installation costs are quoted at
$1,200. Vendor payment terms are net 10.
20
The Bozeman Convention Center, (BCC), in Montana
contacted Cottonwood with an order for $21,000 in resale
merchandise. Cost of the merchandise was $13,440. BCC has
never purchased from Cottonwood before, but has already
©SAP AG 2009 / SAP University Alliances
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submitted the appropriate paperwork to Cottonwood’s credit
department.
21
January 12,
2007
22
Cottonwood paid Office Max for the supplies picked up on
January 3rd.
23
Cottonwood paid for their printed catalogs received January
3rd.
24
Cottonwood paid the invoice for the shipment from Rodeo
Outfitters received on January 3rd and took the 2% discount
because of early payment.
25
January 15,
2007
26
27
Cottonwood’s credit department approved BCC for up to
$15,000 credit at terms of net 15. BCC has been asked to send
payment of $6,000 so that their order can be shipped.
After extensive collection effort including having a collection
agency contact the party, Cottonwood was notified today that
the Fly-by-Knight Rodeo has gone out of business. They owed
Cottonwood $3,500 on account. Cottonwood now deems that
debt as being uncollectible and removes it from their books.
Employees submitted their time statements for hours worked
from January 1 – 15th.
January 16, 2007
BCC (see January 11 & 12) sent payment of $6,000 to Cottonwood
via electronic funds transfer, (EFT). Cottonwood’s warehouse
picked and packed BCC’s order and shipped it to Bozeman via
CWX. Freight costs of $430 were paid by Cottonwood at the time
of shipment.
28
Cottonwood paid $21,000 to employees for wages earned during
the first half of January.
29
The industrial shelving was delivered and installed in Cottonwood’s
warehouse (see January 11th). The vendor’s invoice, which
matched Cottonwood’s purchase order, was hand-delivered to
accounts payable. Cottonwood paid the shipping of $320. The
vendor’s contractor completed installation that day.
Cottonwood paid UPS for the shipment to Del Norte County Rodeo
on January 9th.
30
©SAP AG 2009 / SAP University Alliances
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31
January 17, 2007
32
Cottonwood received customer checks totaling $9,980 for payment
on outstanding accounts.
The owners of Cottonwood were talking to the owner of the
warehouses that they lease. They are good friends.
The
conversation centered around wise investment of the excess cash
that Cottonwood presently has. The owner of the warehouses
stated that he wishes to diversify his investments, especially with
the flat real estate market. He suggested that Cottonwood
purchase the warehouses. He said that he would give Cottonwood
a good deal. Cottonwood decided to buy only one of the
warehouses and continue to lease the other one. The price is to
be $360,000 with a down payment of 20%. The original owner will
carry a mortgage for the remainder with an interest rate of 7.5%.
Title is to transfer on March 15, 2007. Today Cottonwood sent
earnest money of $10,000 to the owner of the warehouse.
33
January 18, 2007
Cottonwood placed a purchase order with the Buckaroo Outfitters
for $52,000 in resale merchandise. Payment terms to Buckaroo
are net 30.
34
January 19, 2007
The Red Bluff Rodeo called in an order for $4,800 in event
merchandise. The order information was given to the warehouse,
where the merchandise was picked and set on the delivery dock
for RB Rodeo to pick up. Cost of the merchandise was $2,496.
Terms of the sale were cash on delivery, (COD).
Later in the day, Red Bluff Rodeo picked up and paid for their
order, (including sales tax).
35
January 22, 2007
Cottonwood received payment from Dust Bowl Rodeo for their
order from January 8th.
36
The FFA Rodeo in LaJunta Colorado (January 4th) returned $4,000
in event merchandise as excess merchandise. The merchandise
was inspected and restocked. FFA is given a credit to their
account for the returned merchandise. The credit is for the $4,000
minus a 10% restocking fee. The cost of the goods is $2,085.
FFA LaJunta paid the return shipping of $62.
37
Cottonwood applied for credit with a new supplier, Howdy Partner
U.S.A. A credit application was faxed to HP’s headquarters in San
Antonio, TX.
Cottonwood is anticipating an order with HP for
$12,000 in resale merchandise.
38
January 23, 2007
Cottonwood’s bank notified them that an EFT in the amount of
©SAP AG 2009 / SAP University Alliances
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$102,240 from Alamo Conference Center had been deposited into
their account.
39
Cottonwood received their order from Buckaroo Outfitters from
January 18th. Buckaroo Outfitters paid the shipping charge of $105.
The inventory was counted and placed on the shelves. Proof of
receipt and the vendor’s invoice was sent to accounting.
40
January 24, 2007
The Boise Stampede called in an order for $98,726 in
merchandise. $57,224 is for resale merchandise and $41,502 is
for event merchandise. The cost of the resale merchandise is
$36,623 and the cost of the event merchandise is $21,580. Boise
Stampede has not yet established credit with Cottonwood. They
are told that they must either supply the needed information to
establish credit or pay cash before the goods can be delivered.
41
January 25, 2007
Cottonwood placed a purchase order with Rocking-5R Ranch
Supplies for $38,000 in events merchandise. Cottonwood’s
payment terms are 2% 10 net 30.
Cottonwood received a check from BCC (see January 12th) for
$15,000.
42
43
January 29, 2007
Cottonwood has made arrangements with their two primary
suppliers, Rodeo Outfitters and Lazy J for them to drop ship orders
in the future. That means that the orders will be placed with the
supplier and shipped directly from them.
This reduces
Cottonwood’s inventory carrying cost by reducing the need for
inventory and frees up some cash for other purposes. The primary
concern about this arrangement was that Cottonwood prides itself
on almost always shipping the goods the same day as the order.
Both suppliers have assured Cottonwood that they can also do
same day shipment.
44
January 31, 2007
Cottonwood paid rent of $5,000 for the coming month’s lease of
the warehouses.
45
Cottonwood pays sales tax once a year in January for the
preceding 12 months. They do not make any sales tax deposits
during the year. Cottonwood paid sales tax of $4,178 for 2006
sales taxes collected.
46
Cottonwood purchased their warehouse and office equipment on
December 1, 2004 for $162,000. At the time they signed a sevenyear note payable from the bank for $90,000. Over the seven
©SAP AG 2009 / SAP University Alliances
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years, payments of $1,589, which includes both principle and
interest, are to be made at the end of each month. The annual
interest rate on the loan is 12% calculated on the outstanding
balance. The calculation of interest is based on each month having
30 days. Cottonwood transferred funds in the amount of $1,589
from their checking account to pay the loan amount due. (Hint: It is
probably best to create an amortization schedule to handle this
entry.)
47
Cottonwood paid the full amount due on the industrial shelving
(see January 11th & 16th).
48
The employees submitted their time statements for January 16 th
through 31st. The calculated payroll is $21,600.
49
The owners and managers of Cottonwood choose a vendor from
several responses to the RFP sent out in early December to supply
them with their new shrink-wrap equipment. The supplier will make
some minor adjustments to their standard equipment to meet
Cottonwood’s needs. Cottonwood owners sign the contract, which
specifies a total equipment cost of $239,000 including
customization, installation, initial training, and a two-year warranty.
Delivery and installation is tentatively scheduled for May 1, 2007. A
down-payment of $59,750 is due February 28th.
Using these account balances and additional adjustment information below, record adjusting
journal entries. Note: It is possible that not all adjusting entries are given in the following list.
Adjustment information as of January 31, 2007 not already given in the original transaction(s):
1. Rodeo supply sales is a relatively new industry, so bad debt average has not yet been
established for the industry. Based on prior experience, Cottonwood estimates that
approximately 1/2% of the net credit sales (gross credit sales minus returns of credit sales) for
the month will become bad debt. Cottonwood writes off bad debts as they occur and
recognizes bad debt expense based on anticipated bad debts as an adjusting entry each
month.
2. As a control measure, physical inventories are taken on a periodic basis alternating between
the resale merchandise inventory and the event merchandise inventory. Physical inventory of
the event merchandise inventory was taken at the end of January. It was determined that the
cost of the event merchandise on hand was $144,860.
3. Cottonwood counted the supplies on hand after the close of business on the last day of the
month and determined the cost of the unused supplies to be $450.
©SAP AG 2009 / SAP University Alliances
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4. Warehouse and office equipment was placed in service on January 1, 2005 and is expected to
last 15 years and has no salvage value. The industrial shelving is expected to have a life of 10
years and a salvage value of $5,000. Cottonwood depreciates fixed assets on a straight-line
basis and those assets acquired in the first half of the month for the entire month, while fixed
assets placed in service during the last half of the month are not depreciated until the second
month. Depreciation is rounded to the nearest dollar and assets are depreciated on a monthly
basis (i.e. number of days in the month is not of consequence).
5. On February 2, Cottonwood received a $2,251 bill from PG&E for utilities consumed during
January and the January AT&T bill in the amount of $412.
6. Liability insurance for the 2007 fiscal year was paid at the end of November 2006. Liability
insurance is assumed to be utilized uniformly monthly over the one-year policy period.
7. 500 product catalogs were sent out in the month of January.
Following are the instructions for entering the accounting data into the SAP system:
Your instructor will tell you the SAP server (instance) and the client you will be using.
Your login is USER-XX (where the XX is your assigned number – this number will be supplied to
you by your instructor).
Your initial password is “123456”. You will be asked to change the password when you first log on.
Change it and be sure to remember this new password. That will be the password you will use on
your subsequent logons for this assignment and other SAP assignments.
Your company code is 80XX (where the XX is your assigned number).
company code other than the one assigned to you.
Do not use any
If you are unfamiliar with SAP, there are remedial videos that you can watch that show you how to
navigate around in the system.
The first thing that you should do is to examine the chart of accounts.
To Look at the Chart of Accounts
Accounting  Financial accounting  General ledger  Information system  General ledger
reports  Master Data  Chart of Accounts  Chart of Accounts


Chart of accounts
A321
Execute
The next step is to enter the beginning balances and the transactional journal entries. In SAP this
is called general ledger accounting because as you enter the journal entries into the system they
©SAP AG 2009 / SAP University Alliances
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are immediately posted to the general ledger accounts.
To enter transactions in General Ledger
Accounting  Financial accounting  General ledger  Document entry  Enter G/L Account
Document
On GL account posting screen enter:



Doc. Date = the transaction date
Posting date = same as doc. date (this may generate a warning, just ignore it)
Currency = USD (defaulted)
Note: Make sure the company code is your assigned company code.
Don’t Forget to Enter Your Beginning Balances!
1st Line:
 G/L account = the account number for posting (debit) the transaction
 D/C = Debit
 Amount in Doc. Currency = the amount of the transaction
2nd Line:
 G/L account = the account number for posting (credit) the transaction
 D/C = Credit
 Doc. Currency amount = the amount of the transaction
… and so on for compound journal entries






Click on Enter
(white check mark on green circle at top left)
Ignore any message by clicking on Enter.
Look at the total debits and total credit fields. Debits should be equal to credits and a green
light should be lit.
Click on Simulate
button.
This is the accounting transaction which you are posting in your company for period 1.
(January is period 1 for our company)
SAVE
the document icon. Do Not Park your document by mistake.
Write down the document numbers as you enter each transaction.
If you parked your documents by mistake, then here is the procedure you use to release these
documents:
©SAP AG 2009 / SAP University Alliances
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Accounting  Financial Accounting  General Ledger  Document  Parked Documents 
Post/Delete (FBV0)
Enter Company code: 80XX
Fiscal Year: 2007
Click on Document list on the application tool bar
On the “List of parked documents”, enter the above information
Execute.
A list of parked documents will appear.
Select all the documents by Edit  Select all on the menu bar
Click on Create Batch input session button on the application tool bar
A log will be displayed.
Go and Save.
When you click on save, the documents will be posted.
As you make the entries into the system, you should check to be sure that they were entered
correctly. I would suggest that you first enter the beginning balances and then check them by
viewing the journal entries using one of the two reports below. If an entry states that it is parked,
that means you made a mistake and must unpark the document (see above for the unparking
procedure). After you check the correctness of the beginning entries, then you can enter the
journal entries for the first half of the month (part 1) and compare the results to your first half trial
balance in Excel. If the results don’t match, then resolve the issue before proceeding to post the
second half journal entries and the adjusting entries. Remember that you cannot correct erroneous
entries in SAP. You have to reverse the entry and then enter the correct entry. After each posting
compare your results to the trial balance in Excel.
Viewing Journal Entries
If you wish to view the journal entries that you have made, following are three different ways in
which you can display the entries:
1. Document Journal
Information System  General Report Selection  Financial Accounting  General Ledger
Reports  Document  General  Compact Document Journal  Compact Document
Journal
Enter:
 Company code 80XX
 Fiscal Year
2007

Execute
2. Drill down to the source document
©SAP AG 2009 / SAP University Alliances
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Accounting  Financial Accounting  General Ledger  Account  Display/change line
items
Enter:


Company code
Select

Execute
80XX
All items
A list of clear and open accounting documents is displayed
Select any box
Click on Display document (glasses) icon on the application tool bar to display line items
Click on Call up Document overview (mountain-like) button to display the source document.
3. Document Journal
Information System  General Report Selection  Financial Accounting  General Ledger
Reports  Document  General  Line Item Journal  Line Item Journal
Enter:
 Company code 80XX
 Fiscal Year
2007

Execute
To Look at the Balance Sheet and Profit and Loss Statement
Accounting  Financial accounting  General ledger  Information system  General ledger
reports  Balance sheet/ profit and loss statement/cash flow  General  Actual/actual
comparison  Balance sheet/profit and loss statement







Chart of accounts
Company code
Financial statement version
Reporting year
Reporting periods
Comparison year
Comparison periods
A321
80XX
A321
2007
1
2006
1
(your assigned code)
Language
EN
to
16
to
16
Execute.
You may even want to print your financial statements if you have access to a printer for SAP.
We will simulate year-end close by doing the following.
©SAP AG 2009 / SAP University Alliances
16
Simulating the Closing of the Profit and Loss accounts
For a manual accounting system at the end of an accounting period, it is necessary to make a
journal entry that zeroes out the nominal accounts and eventually closes them to the retained
earnings account. However, in a computerized system the system can essentially do this by the
push of a button. In this section you will simulate this process. In SAP the closing is done by
executing the following transaction:
Accounting  Financial accounting  General ledger  Periodic Processing  Closing  Carry
Forward  Balance Carryforward (New)






Ledger
Company code
Carry forward fiscal Year
Test Run
Output list of results
0L
80XX
2008
Select
Select
Execute.
Click on the Balance sheet accounts and Retained earnings accounts.
If the run is successful, print out the screens for both the balance sheet and the retained earnings.
Do not do the actual closing.
End of Assignment
©SAP AG 2009 / SAP University Alliances