Assignment 4 – Exercise 09
Read Me First:
Use the Big Data Analytics Consulting Case databases to complete this Assignment.
Ensure that you have fully completed the exercises 1, 2, 3, 4 and 6 before starting with this assignment.
Ensure that your current fiscal year is 2020 (GL Setup \ Options \Posting Tab).
If you have completed the Assignment 2 correctly, then your TD Bank Chequing Account and the Accounts Payable balances in the General Ledger module as of Jan 31, 2020 will be as follows:
1000 – TD Bank Chequing $ 14,185 (Debit)
2000 – Accounts Payable $ 2,500 (Credit)
In the event if your balances are incorrect, just ignore your own balances for the purpose of completing this assignment, and assume that your TD Bank Chequing Account balance as 14,185 (debit) and your Accounts Payable Account balance as 2,500 (Credit). No marks will be deducted for this.
Since some of you may not have the correct balances in G/L, importance will not be given to the General Ledger module in completing this assignment, and therefore, you are not expected to process (post, delete, etc.) your batches in the General Ledger module.
If the information is not provided to complete a particular setup, just accept the default settings for the setup. But, based on your judgment, you are permitted to make necessary changes to the settings, if such changes are required to complete the assignment questions.
Case Information
Big Data Analytics Consulting Company (BDA) had been using the Sage 300 General Ledger module for the past one month, and since BDA is satisfied with the use of the General Ledger module, they have decided to use the Sage 300 Accounts Payable, Bank Services and the Tax Services modules starting from January 31, 2020.
At this point in time, BDA has only a Chequing Account with TD Bank, and the TD bank account will be used for all of the BDA banking transactions. The TD Bank Chequing Account details are as follows:
Bank Transit Number – 12342004
Chequing Account Number – 0123454321
Prior to January 31, 2020, BDA had been directly using the GL Account 1000 to record any transactions involving the TD Bank. Going forward, BDA will be primarily using a sub-ledger Bank Account to record its TD banking transactions. The bank sub-ledger account will be using the G/L account 1000 as its control account.
Since the same TD account will be used for both the Implementation and the support service transactions (refer to Exercise 1 for details about the two services), any bank related expenses incurred such as the Bank Charges, Write-Off or Credit Card charges would be equally divided between the two services. To facilitate this, two new expense allocation accounts would be created in G/L.
The expense allocation account details are as follows:
6070 – Bank Charges
6080 – Bank Errors and Write-Off
Since BDA will not be using the Accounts Receivable module now, 6080 account will also be used for recording the Credit Card Charges. Since the Bank charges account would be commonly used every month while performing the Bank Reconciliation, BDA wanted to setup a distribution code only for the 6070 Bank Charges account.
BDA will using the Sage 300 Check printing functionality when recording payments in the Accounts Payable module. The following details would be used to complete the Check Stock code setup:
Next check number : 451
Stock Type : Combined Check and Advice
Check Form : APCHK11A.RPT
Number of Advice Lines per Page : 15
Since BDA is not expecting to have a high volume of transactions, the length of the document numbers for both the Bank entry and the Bank Transfer transactions would be adjusted to 10 characters.
BDA is currently operating only within the Ontario province in Canada. Hence, BDA has a requirement to process the HST taxes in the Accounts Payable module for its purchase transactions. As BDA will not be using Sage 300 to process the Sales transactions, the HST Sales related setup will not be completed at the beginning. BDA uses the G/L account 2110 to track its HST Liability and the G/L Account 2120 to track its recoverable taxes. The recoverable rate is assumed to be 100%.
BDA has currently classified all of its vendors and the items purchased as either Taxable or Non-Taxable based on the tax status. BDA will be creating the following HST – Purchase – Vendor Tax classes:
Taxable
Non Taxable
Since, BDA might be paying 13% HST on most of the items purchased, and 5% HST on some of the items purchased, BDA will be setting up the following HST – Purchase – Item Tax classes:
Taxable13
Taxable5
Non Taxable
Thus, if the vendor tax status is Taxable, and if the item tax status is Taxable13, then the HST tax rate would be setup as 13%. Similarly, if the vendor tax status is Taxable, and if the item tax status is Taxable5, then the HST tax rate would be setup as 5%.
Case Questions:
Answer the following questions based on the case information provided to you:
Open the Big Data Analytics Consulting company with the session date of January 31, 2020.
Verify the following information:
Current year in the G/L module
TD Chequing Account Balance
Accounts Payable Balance
Ensure that you have read and understood the additional details that are provided to you at the beginning of this document (Read Me First) regarding the current year and the account balances.
Activate the following modules:
G/L Sub-Ledger Services
Tax Services
Bank Services
Accounts Payable
Create a Bank Sub-Ledger Account for TD Bank Chequing Account and configure the details correctly based on the information provided.
Make adjustments to the Bank Setup – Options window based on the available information.
Create a Distribution code for Bank Charges G/L Account.
Assume that the Control Account 1000 (TD Bank Chequing) balance in G/L is 14,185 (Debit). Assume that that the TD Bank Chequing Account statement balance as of 31 January 2020 is also $ 14,185.
(Note – There are no outstanding transactions as of 31 January 2020.)
Perform a Bank Reconciliation transaction in order to establish $ 14,185 as the opening balance for the TD Bank Chequing Account in Bank Services.
Post the Bank Reconciliation in Bank Services.
Verify the TD Bank Chequing Account balance in Bank Services.
Setup the Tax Authority for HST tax.
Setup the appropriate Tax classes for the following scenarios:
HST – Purchase – Vendors
HST – Purchase – Items
Setup the HST – Purchase Tax Rates for BDA.
Setup the following Tax Group for BDA:
Tax Group – ONTHST
Type – Purchases
Description – Ontario Taxes
Tax Authority – HST
Create a new folder; rename the folder as A4 E9 Q13; dump your BDA system and company databases to the A4 E9 Q13 folder.
Continue with Exercise 10.
Assignment 4 – Exercise 10
If the information is not provided to complete a particular setup, just accept the default settings for the setup. But, based on your judgment, you are permitted to make necessary changes to the settings, if such changes are required to complete the assignment questions.
Case Information
BDA will be completing the Accounts Payable setup and record the outstanding Vendor Invoice transactions as of 31 January 2020.
BDA will be using the TD Bank Chequing Account to record all of the Payment transactions in the Accounts Payable Module. The default method of Payment would be by Check, and BDA will expect a warning to be generated in the event if duplicate check numbers are used in transactions. The Vendor comments will be retained in the system for at least for 365 days. BDA wanted the capability to record adjustments while recording the payment entries. Also, BDA wanted the ability to modify the System Generated Payment batches before posting those batches. The length of the document numbers for entries such as the Recurring Payable, Adjustment, Prepayment and Payment would be adjusted to 10 Characters.
BDA will be grouping all of their vendors into a single group at the beginning. Also, BDA wanted all of the vendor transactions to be posted to the same Payable Control, Vendor Prepayments, and the Purchase Discount accounts when the entries are initially posted from the Accounts Payable module. In order to facilitate this requirement, BDA will create a new allocation account for Purchase Discounts (Account number 5100) in the General Ledger module. The Purchase discount balance would be divided equally between the 5100-100 and 5100-200 accounts. Since both the implementation Services and the Support Services teams would be making their purchases from the same vendors, and the purchasing patterns are fairly uniform for both the services team, BDA doesn’t mind allocating the total purchase discounts equally between the two services teams.
BDA will be making use of the Distribution Codes for the G/L accounts that would be used quite heavily. If the Distribution codes are not available, then the G/L accounts would be directly used in transactions.
During the month of January 2020, BDA was using the G/L allocation accounts for the Rent and the Telephone expense entry postings in G/L. Since the Accounts Payable module provides the Distribution Set functionality, going forward, BDA will be using the Distribution Set functionality to allocate the balances for the Telephone expense and Rent expense accounts. When the telephone bill is received, it will be allocated to each service type at the rate of 40 percent to the implementation services and the remaining 60 percent to the support services. But, the rent expense will be evenly allocated to both the services.
Case Questions:
Answer the following questions based on the case information provided to you:
Open the Big Data Analytics Consulting company with the appropriate session date.
Configure the Accounts Payable Setup Option settings based on the available information.
Create a single Account Set code called ALL that would be used by all of the vendors. Select the appropriate Payable Control and the Vendor Prepayment accounts. Use the Allocation account 5100 for Purchase Discount.
Setup the following Distribution Codes for the G/L
s:
G/L Account
Description
Distribution Code
6010-100
Advertising Expense
ADV100
6010-200
Advertising Expense
ADV200
6020-100
Rent Expense
RNT100
6020-200
Rent Expense
RNT200
6040-100
Telephone Expense
TEL100
6040-200
Telephone Expense
TEL200
6050-100
Office Expense
OFF100
6050-200
Office Expense
OFF200
Note – Ensure that the Discountable option is selected for all of the distribution codes.
Setup the Distribution Set codes for Rent Expense and the Telephone Expense based on the information that is provided to you.
Setup the following Terms code:
N30 – Net 30 days
2N30 – 2% 10 days / Net 30 days
Note – discount is calculated on base excluding the taxes
3060 – Make two installment payments in such a way that 50% of the total invoice balance is paid 30 days from the invoice date and the remaining 50% of the total invoice balance is paid 60 days from the invoice date.
D15 – Make payment on the 15th day of Next Month
D1 – Make payment on the 1st day of Next Month
Create a new folder; rename the folder as A4 E10 Q7; dump your BDA system and company databases to the A4 E10 Q7 folder.
Continue with Exercise 11.
Assignment 4 – Exercise 11
If the information is not provided to complete a particular setup, just accept the default settings for the setup. But, based on your judgment, you are permitted to make necessary changes to the settings, if such changes are required to complete the assignment questions.
Case Information
BDA will be completing the Accounts Payable setup and record the outstanding Vendor Invoice transactions as of 31 January 2020. BDA has five Vendors, and since there aren’t many vendors, all of the vendors would be grouped into a single Vendor group for easy administration.
Case Questions:
Answer the following questions based on the case information provided to you:
Open the Big Data Analytics Consulting company with the appropriate session date.
Create a Vendor group that will be used to group all of the vendors. The Vendor group will have the following settings. If the values are not provided for a field, just accept the default settings for the field.
Vendor Group – All
Account Set – All
Term – N30
Bank – TD Bank Chequing Account
Payment Method – Check
Default Expense Account – Office Expense – Implementation Services
Duplicate Invoice Checking – Warning
Default Tax Group – ONTHST
Default Vendor Tax Status – Taxable
Add the following Vendor Records:
A
Vendor Code – 110
Vendor Name – TelCo Canada
Group Code – All
Address – 123 Eglinton Avenue, Toronto, ON, Canada
Term – D15
Default Expense – Distribution Set for Telephone Expense
B
Vendor Code – 120
Vendor Name – Emerald Car Rentals
Group Code – All
Address – 234 Dufferin Street, Toronto, ON, Canada
Term – N30
Default Expense – Travel Expense – Support Services
C
Vendor Code – 130
Vendor Name – Landmark Industrial Estate
Group Code – All
Address – 345 Queen Street, Toronto, ON, Canada
Term – D1
Default Expense – Distribution Set for Rent Expense
D
Vendor Code – 140
Vendor Name – ThreeSixtyDegree
Group Code – All
Address – 456 Bay Street, Toronto, ON, Canada
Term – 3060
Default Expense – Advertising Expense – Implementation services
Credit Limit – 20,000
E
Vendor Code – 150
Vendor Name – A to Z Publishers
Group Code – All
Address – 567 York Mills Road, Toronto, ON, Canada
Term – 2N30
Default Expense – Office Expense – Implementation Services
Print Preview the Vendors report to review the Address listing for the vendors.
Print Preview the Vendors report again to review the Address listing as well as the Vendor Profile for the vendors.
Create a new folder; rename the folder as A4 E11 Q6; dump your BDA system and company databases to the A4 E11 Q6 folder.
Continue with Exercise 12.
Assignment 4 – Exercise 12
If the information is not provided to complete a particular setup, just accept the default settings for the setup. But, based on your judgment, you are permitted to make necessary changes to the settings, if such changes are required to complete the assignment questions.
Case Information
BDA will be recording their outstanding Vendor Invoice transactions as of 31 January 2020 as the opening balances for the vendors. As of 31 January 2020, BDA had two outstanding vendor invoice transactions (Invoices received, but not paid) amounting for a total of $ 2,500.00. Since the outstanding invoices are dated for December 2019, and BDA has already filed the HST return for the month of December 2019, the vendor opening balance invoice entries will be recorded by entering the same amount for the invoice total as well as for the amount excluding the taxes. Thus, the HST amounts will not be calculated for the opening balance invoice entries. Another reason for this decision is that, since BDA has already made few partial payments for the two outstanding invoices, BDA only wanted to record the outstanding payable amounts for the invoices to facilitate for the future payments.
BDA is expected to make their monthly rent payment on the 1st day of the month. BDA usually records their rent payment as a prepayment entry during the last week of the previous month. On the 1st day of every month, an invoice will be recorded for the rent expense for the month, and the prepayment entry will be applied to the Rent Invoice. Since the rent payment is recorded as an advance payment, the Rent Invoice entry will be recorded with Net 0 days as the payment term. To facilitate this requirement, a new Payment code Net 0 days will be added to the system, and this payment code will be made as the default payment term code for Land Mark Industrial Estate.
BDA failed to record the February 2020 rent prepayment entry in January. Therefore, on the 01st February 2020, BDA first issued a handwritten check for the rent payment, and then recorded the Rent Expense Invoice Entry for February 2020 together with the related prepayment entry.
Case Questions:
Answer the following questions based on the case information provided to you:
Open the Big Data Analytics Consulting company with the appropriate session date.
As described in Exercise 9, just assume that the Account 2000 (Accounts Payable) balance in G/L is 2,500 (Credit) as of 31 January 2020.
Setup the opening balances for the Vendors in the Accounts Payable module by recording the following outstanding Invoice transactions:
Batch Description – Setup Opening Balance – Name and ID
Entry 1:
Vendor – Emerald Car Rentals
Invoice Date – December 15, 2019
Invoice Number – 18371
Outstanding Invoice Balance – $ 999.86
Purpose – Travel Expense – Support Services
Term – Net 30 days
HST – Not calculated
Entry 2:
Vendor – Emerald Car Rentals
Invoice Date – December 18, 2019
Invoice Number – 18488
Outstanding Invoice Balance – $ 1,500.14
Purpose – Travel Expense – Support Services
Term – Net 30 days
HST – Not calculated
Post the Opening Balance Batch in Accounts Payable.
Review the Aged Payable Report as of 31 January 2020 and verify the balances.
Setup the following Payment Term Code:
NET0 – Net 0 days.
Make NET0 as the default term code for Vendor 130 (Landmark Industrial Estate).
Close the company and open the company with the following session date:
February 29, 2020
Create a new Batch and record the following Accounts Payable Invoice transaction:
Batch Description – February 2020 Invoices – Name and ID
Batch date – February 29, 2020
Entry 1
Vendor – Land Mark Industrial Estate
Entry Description – Rent Expense for February 2020
Invoice Date – 01 February 2020
Invoice Number – 02012020
Invoice Total – $5,650.00
Rent Expense – $ 5,000.00 (Use Distribution Set to allocate the expenses)
HST – Taxable @ 13% – $ 650.00
Term – NET0
Note – Since a handwritten check had been already issued to Landmark Industrial Estate, record the following related prepayment deposit entry, so that the prepayment is applied to the invoice entry and the net payable amount is correctly calculated.
Payment batch description – Feb 2020 Rent Prepayment – Name and ID
Payment Batch Date – February 01, 2020
Bank – TD Bank Chequing Account 1
Payment Date – February 01, 2020
Add a suitable entry description
Handwritten check number – 451
Prepayment deposit amount – 5650
Add and close the Payment entry window.
Verify the Invoice 02012020 Net Payable details from the Invoice Entry Totals tab.
Close the Invoice Entry window.
Close the Invoice Batch List window.
Since the check number 451 has been assigned to the previous prepayment transaction, open the TD Bank Chequing Account 1 record and adjust the next check number as 452.
Close the Bank Account window
Open the Invoice Batch “February 2020 Invoices” and add the following four Invoice entries:
Entry 2:
INVOICE
Emerald Car Rental
Invoice #
19911
234 Dufferin Street
Date
07-Feb-20
Toronto, ON
Term
Net 30
Description
Amount
Car Rental
$1,200.00
Subtotal
$1,200.00
HST 13%
156.00
Total
$1,356.00
Note – Distribute expense to Travel Expense – Implementation Services
Add the entry and go to next page.
Entry 3
INVOICE
A to Z Publishers
Invoice #
AZ 2122
567 York Mills Road
Date
22-Feb-20
Toronto, ON
Term
2/N30
Description
Amount
Technical Documentation
$2,000.00
Subtotal
$2,000.00
HST 5%
100.00
Total
$2,100.00
Note – Distribute expense to Office Expense – Implementation Services
Hint: Click the Account / Tax button from the Invoice Entry – Document tab, and adjust the HST Item Tax Class for Line Number 1 to calculate 5% tax.
Add the entry and go to next page.
Entry 4
INVOICE
ThreeSixtyDegree
Invoice #
360-536
456 Bay Street
Date
23-Feb-20
Toronto, ON
Description
Amount
Advertising Services
$2,300.00
Subtotal
$2,300.00
HST 13%
299.00
Total
$2,599.00
Note: Pay 50% of the total invoice amount within 30 days from the invoice date, and pay the balance amount within 60 days from the invoice date
Note – Distribute expense to Advertising Expense – Implementation Services.
Add the entry and go to next page.
Entry 5
INVOICE
ThreeSixtyDegree
Invoice #
536
456 Bay Street
Date
23-Feb-20
Toronto, ON
Description
Amount
Advertising Services
$2,300.00
Subtotal
$2,300.00
HST 13%
299.00
Total
$2,599.00
Note: Pay 50% of the total invoice amount within 30 days from the invoice date, and pay the balance amount within 60 days from the invoice date
Note – Distribute expense to Advertising Expense – Implementation Services.
Add the entry.
Post only the “February 2020 Invoice” Invoice batch in the Accounts Payable module, and do not post the Payment Batch now. The Payment bath will be posted in Exercise 14.
Print the Aged Payable Report as of 29 February 2020 and verify the balances.
Hint – Since the prepayment batch is not posted yet, the balance for Landmark Industrial Estate may appear as outstanding.
It’s been noted that the person who recorded the invoices has erroneously re-entered the Invoice 360-536 from ThreeSixtyDegree with a different Invoice number for the second time. The invoice 536 is repeated, and the repeating invoice number 536 has to be cancelled.
Record an Applied Credit Note entry to cancel the incorrect invoice number 536.
Batch Description – February 2020 Credit Notes – Name and ID
Batch Date – February 29, 2020
Entry Description – Cancel Repeated Invoice
Record the details correctly and Add the Entry
Hint – Since the vendor will not issue a credit note for the above error, make-up a Credit Note number to record the transaction; use the same Invoice number with the letters CR as either suffix or prefix to create a unique document number (Same document number cannot be used more than once for a particular vendor number).
Post the Credit Note Batch in Accounts Payable
Print the Aged Payable Report as of 29 February 2020 and verify the balances.
Hint – Ensure to select the following check-boxes when you are printing the report:
Show Applied Details
Fully Paid Transactions
Emerald Car Rentals have informed BDA about an error that is related to their Feb 07, 2020 Invoice Number 19911. Some of the additional charges totalling to about $200.00 are not included in the Invoice. To rectify the error, Emerald Car Rentals have issued the following Debit Note that will be applied to the Invoice Number 19911.
Record the following Applied Debit Note entry to Invoice 19911.
Batch Description – February 2020 Debit Notes – Name and ID
Batch Date – February 28, 2020
Entry Description – Additional Charges to Invoice 19911
Vendor – Emerald Car Rentals
Debit Note Number – 707 (Applied to Invoice Number 19911)
Debit Note Total – $226.00
Expense Account – $ 200.00 (Distribute to Travel Expense – Implementation Service)
HST – Taxable 13% – $26.00
Add the Debit Note Entry
Post the Debit Note Entry in the Accounts Payable module.
Print the Aged Payable Report as of 29 February 2020 and verify the balances.
Hint – Ensure to select the following check-boxes when you are printing the report:
Show Applied Details
Fully Paid Transactions
Reprint the Aged Payable report again after clearing the show applied details and fully paid transactions checkboxes; verify the details again.
Create a new folder; rename the folder as A4 E12 Q21; dump your BDA system and company databases to the A4 E12 Q21 folder.
Continue with Exercise 13.
Assignment 4 – Exercise 13
If the information is not provided to complete a particular setup, just accept the default settings for the setup. But, based on your judgment, you are permitted to make necessary changes to the settings, if such changes are required to complete the assignment questions.
Case Information
You will be recording only a single Adjustment entry in this assignment, and the Adjustment entry question for BDA will be tightly related to a Payment entry. Therefore, the adjustment entry that you need to record in this assignment is moved to, and will be included in exercise 14 after the related payment entry is completed. Refer to the exercise 14 document for the Adjustment transaction for this assignment.
Case Questions:
Continue with Exercise 14.
Assignment 4 – Exercise 14
If the information is not provided to complete a particular setup, just accept the default settings for the setup. But, based on your judgment, you are permitted to make necessary changes to the settings, if such changes are required to complete the assignment questions.
Case Information
As described previously, BDA is expected to make their monthly rent payment on the 1st day of the month. BDA usually records their rent payment as a prepayment entry during the last week of the previous month. On the 1st day of every month, an invoice is recorded for the rent expense for the month, and the prepayment entry is applied to the Rent Invoice.
Case Questions:
Answer the following questions based on the case information provided to you:
Open the Big Data Analytics Consulting company with the session date February 29, 2020.
Go to Vendor Activity window, and select the Invoice Number 02012020 from the Transactions Tab for vendor 130 (Landmark Industrial Estate). Click the Documents button to open the Invoice source document to analyze the entry. Verify the Invoice Total, Prepayment and the Net Payable amounts for the above Invoice from the Totals Tab. The above Invoice and the corresponding Prepayment entries were recorded on the 01 February 2020 (Hint: Exercise 12, Question 8, and Entry 1).
BDA has already posted the February 2020 Rent Expense Invoice 02012020. But, the corresponding prepayment entry with the handwritten check number 451 is not yet posted.
Post the Payment batch that contains the above prepayment entry in the Accounts Payable module.
Create a new Payment batch and record the following Payment transactions:
Batch Description – February 2020 Payments – Name and ID
Bank – TD Bank Chequing Account 1
Entry 1:
Payment Date – February 25, 2020
Payment to – Emerald Car Rentals
Payment by Check (Check to be printed)
Record the payment to Invoice Number 18488 only. BDA wanted to round the payment amount to $1,500.00, and therefore, ensure that the payment amount is 1,500 and not 1,500.14.
Entry 2:
Payment Date – February 25, 2020
Payment to – A to Z Publishers
Payment by Check (Check to be printed)
BDA wanted to make an early payment to Invoice AZ 2122 in order to earn the early payment cash discount. Record the payment to Invoice Number AZ 2122, and ensure that the cash discounts are correctly calculated.
Entry 3:
Payment Date – February 25, 2020
Payment to – Landmark Industrial Estate
Payment by Check (Check to be printed)
Record the March 2020 Rent Payment as a Prepayment Entry. The Prepayment amount would be $ 5,650.00.
Note – On the 01 March 2020, BDA will generate a recurring Invoice to record the Rent Expense for March 2020, and then apply the above prepayment to the Recurring Invoice entry. You are not expected to generate the recurring Invoice entry now, and it will be processed in Exercise 15. Therefore, the above prepayment entry will not be applied to any documents at this point in time.
Process the February 2020 Payments batch in the Accounts Payable Module.
Print the checks for the above batch
Post the Batch in the Accounts Payable module
Print the Aged Payable Report to analyze the open / outstanding Invoice documents as of 29 February 2020.
Identify the Overdue Invoice numbers and the Invoice Amounts.
This Question is related to Exercise 13
It is noted that the outstanding balance amount for Invoice Number 18488 from Emerald Car Rentals is just $ 0.14. Record and Post an adjustment entry to write-off the above payable amount. Invoice 18488 was charged to Travel Expense – Support Services. Therefore, use the Travel Expense – Support Services Account to write-off the above payable amount. HST will not be adjusted for this entry. Record the entry as of 29 Feb 2020.
Print the Aged Payable report as of 29 February 2020 again to verify the adjustment entry results.
BDA wanted to have the capability to automate the payment processing of multiple vendor invoices based on the following criteria:
Pay from TD Bank Chequing Account 1
Select invoices to process payments based on either the Due Date or the Discount Date
Setup an appropriate Payment Selection Code to fulfill the above requirements.
On the 28th February 2020, BDA wanted to process the payments and print the checks for all of the invoices that are going to become due by 10 March 2020. BDA may also select the Invoices for payments if the Discount date for an invoice is between 28 February 2020 and 10 March 2020.
Use the previously created Payment Selection Code to process the System Generated Payment batch based on the above business requirements.
Print the Register and verify the results before generating the payment entries.
Generate the Payment entries if the Register report results are satisfactory.
Modify the System Generated Payment Batch description as follows:
SYSTEM GENERATED – Name and ID
Manually add another entry to the above System Generated batch to also include the following payment:
Payment Date – February 28, 2020
Payment to – ThreeSixtyDegree
Payment by Check (Check to be printed)
Based on the Vendor request, BDA wanted to make only the first installment payment to Invoice 360-536 (Payment 1).
Process the SYSTEM GENERATED Payments batch in the Accounts Payable Module.
Print the checks for the above batch
Post the Batch in the Accounts Payable module
Print the Aged Payable Report as of 29 February 2020 to verify the outstanding vendor balances.
Create a new folder; rename the folder as A4 E14 Q12; dump your BDA system and company databases to the A4 E14 Q12 folder.
Continue with Exercise 15.
Assignment 4 – Exercise 15
If the information is not provided to complete a particular setup, just accept the default settings for the setup. But, based on your judgment, you are permitted to make necessary changes to the settings, if such changes are required to complete the assignment questions.
Case Information
As described previously, BDA is expected to make their monthly rent payment on the 1st day of the month. BDA usually records their rent payment as a prepayment entry during the last week of the previous month. On the 1st day of every month, an invoice is recorded for the rent expense for the month, and the prepayment entry is applied to the Rent Invoice.
Case Questions:
Answer the following questions based on the case information provided to you:
Open the Big Data Analytics Consulting company with the session date March 01, 2020.
BDA wanted to automate the Rent Invoice Entry as a Recurring Payable transaction. The recurring rent invoice entry will be processed every month on the 1st day of the month.
Setup an appropriate schedule code to satisfy the above requirements. The schedule start date would be 01 March 2020, and a reminder would be setup to remind the Admin user 1 day in advance.
Setup a Recurring Code to Process the Monthly Rent Expense Invoice Entry. The Recurring Setup details are as follows:
Vendor – Landmark Industrial Estate
Schedule – 1st day of every month
Start date – 01 March 2020
Term – Net0 days
Rent Expense – Implementation Services – $ 2,500.00
Rent Expense – Support Services – $ 2,500.00
HST – $ 650.00
Invoice Total – $ 5,650.00
Process the Rent Expense Recurring Payable code as of 01 March 2020.
Method – Create a New Batch
Modify the Recurring Batch description as follows:
Recurring Payable – 3/1/2020 – Your name and ID
Post the Recurring Payable Batch in Accounts Payable
A Prepayment to Landmark Industrial Estate for March 2020 Rent expense has been already processed on the 25 February 2020.
(Exercise 14 Question 3, Entry 3)
Create an appropriate entry (Batch date – March 01, 2020) to apply the 25 February 2020 Prepayment to Landmark Industrial Estate to their 01 March 2020 Recurring Rent Invoice, so that the Invoice Net Payable is recalculated to $ 0 amount.
Posting date – March 01, 2020.
Post the above entry in Accounts Payable
Reverse the Payment made to ThreeSixtyDegree for their invoice 360-536 (Payment 1).
Reverse Date – 01 March 2020
Reason for reversal – Service delivery dispute
Post the Entry.
Print the Aged Payable Report as 01 March 2020 and verify the vendor outstanding balances.
Create a new folder; rename the folder as A4 E15 Q8; dump your BDA system and company databases to the A4 E15 Q8 folder.
Review the Assignment 4 Read Me First Document from the BB\Course Assignments folder.
All batch descriptions should contain your name and student id.
Fully complete the Assignment before uploading the reports to BB.
Submit only the required reports, and do not submit any other reports or the database dump files.
Create a separate folder in your USB drive and name it as follows:
Assignment 4 Reports.
Ensure that your session date is March 01, 2020.
Print Preview the following reports:
Invoice Batch Status Report
Report should include all of the batches
Adjustment Batch Status Report
Report should include all of the batches
Payment Batch Status Report
Report should include all of the batches
Invoice Posting Journal Report
Select “Reprint Previously Printed Journals” option before printing the report.
Sort by Batch\entry number.
Adjustment Posting Journal Report
Select “Reprint Previously Printed Journals” option before printing the report.
Sort by Batch\entry number.
Payment Posting Journal Report
Select “Reprint Previously Printed Journals” option before printing the report.
Sort by Batch\entry number.
Aged Payable Report (Aging date and cut-off date March 01, 2020)
Vendor Reports \ Recurring Payable (Include Schedules)
Setup Reports \ Terms
For each report, complete the following tasks;
Verify the reports for accuracy.
Click the “Export” button From the report toolbar (Top Left corner of the report window)
Accept the PDF option and click next
Accept the page range selection and click next
Use the File Save As dialog box to select assignment 4 reports folder and save the report as a PDF file; rename the file to match the appropriate report title.
After saving all of the required reports to the assignment reports folder (Nine reports in total), go to the Assignment 4 Reports folder and complete the following tasks:
Select all the Eight PDF files.
Right click on the selection (Blue area).
Select the 7-Zip option first and then select the “Add to Assignment 4 Reports.Zip” from the sub-menu.
Verify whether the Assignment 4 Reports.zip file is created.
Go to Black-Board \ Course Messages window and select “Create Message” option to forward the zipped file as an attachment to your instructor.
Please do not forward the zipped file to your instructor’s college email account.
Verify the following details before forwarding the course message:
Recipient: – Instructor
Subject –Assignment 4
Attach the Assignment 4 Reports.zip file to your course message.
Submit the course message