Short answer q

Ch9

1. Bank Services and Tax Services are components of what program?

Tax Services and Bank Services are components of Common Services, where an icon
will be displayed for each of them. These services are used by the Sage 300 modules.
2. Can the Accounts Payable module be activated before Bank Services and Tax
Services?
No, Tax Services and Bank Services must be activated before the A/ P and A/R
modules can be activated.
3. What is the purpose of Bank Services?
A separate subledger module, Accounts Receivable and Accounts Payable send and
receive information directly with the Bank Services module. This information is then
used to reconcile the bank account with its bank statement.
4. What are distribution codes used for in Bank Services ?(P251)
Distribution codes can be set up for each type of transaction you make directly in Bank
Services.
5. When you created the setup distribution code for each bank account, why was
the bank account used as the offsetting account?

6. How do you turn a General Ledger account into a control account? What
information do you
need to enter on the Subledger tab of the account
1. Double click on the Accounts icon in the G/L Accounts folder; 2. Type 1000 in the
Account field and press [TAB]; 3. Click in the box beside the Control Account option
On the Subledger tab, you may specify which subledgers are using the account as a
control account. the bank source codes need to be entered.
7. How can you determine the balance of your bank account?
Bank service, Bank balance
8. What is the purpose of Tax Services?(p277)
The Tax Services program maintains the tax information for a company's sales and
purchases. It maintains tax tables and tax information for each customer, vendor, and
item. Tax audit information is maintained for reporting purposes.
9,. What are tax authorities? How many can you enter?

Tax authorities are the government bodies that apply taxes to the products a
companybuys and sells and to which a company remits taxes.A tax authority
must be created to represent each locale in which the company doesbusiness.

10. When entering tax classes for the sales transaction type, what two items must
you enter the tax classes for? What about the purchases transaction type?(P282)
For sales classes, you must enter tax classes for customers and items.
For purchase classes, you must enter tax classes for vendors and items.
11. What information is included in tax groups?
Tax groups list each tax authority that charges tax in a particular jurisdiction.

CH10:
1. If the Accounts Payable module is not performing a function that you think it
should, where
would you go to see how the module is operating? (p296)
Look in the Accounts Payable Options form; there may be an option that you forgot to
turn on or off. Option Icon/AP setup folder

2. Describe the following fields found in the Accounts Payable Options form: a)
Force Listing of All Batches
Forces all batches of invoices, payments, and adjustments to be printed before they can
be posted. With this option selected, an edited batch must have its batch listing
reprinted before it can be posted.
b) Allow Adjustments in Payment Batches
Select this option to enter adjustments in a payment batch rather than entering the
adjustment in the Adjustment Entry window. You would use this option if you are
entering a payment and the amount differs from the invoice total. You can quickly create
the adjustment while entering the payment. c) Allow Edit of System Generated Batches
Select to edit or delete payment batches that were generated through the Create
Payment batch icon. The batches can be selected for editing or deleting through the
Payment Batch List window.
c) Allow Edit of System Generated Batches
Select to edit or delete payment batches that were generated through the Create
Payment batch icon. The batches can be selected for editing or deleting through the
Payment Batch List window.
d) Append G/L Transactions to Existing Batch???
3. What is the purpose of optional fields? Where can optional fields be used in
Accounts Payable?
If Optional Fields were set up in the General Ledger that can be associated with
transactional details, and you want to associate one with this journal entry, enter it
here.(p135)
Before you can use optional fields in Accounts Payable, you must define them in
Common Services. Once you define the optional fields in Common Services, you can
assign the optional fields to vendors and vendor groups, remit-to locations, invoices,
invoice details, payments, and adjustments.(p319)
4. Can you modify and save corrections made in the Accounts Payable Options
form? Are there any restrictions? (p296)
Yes. Only save the options selected (the new options selected-ppt) if no other A/P
windows is open.
5. What is the purpose of account sets? List the General Ledger accounts that
must be included in
account sets.
Account sets determine the General Ledger accounts that will be used when you
process Accounts Payable transactions.
Account sets are added to vendor groups and, in turn, added to vendor records within
the vendor group.
6. What is the purpose of setting up distribution codes and distribution sets? Are
they mandatory or optional?
Distribution codes are used to identify the General Ledger accounts that are to be used
when invoice and adjustments batches are posted. Optional. (P306)
Distribution sets are groups of distribution codes that represent groups of General
Ledger accounts used when entering Accounts Payable transactions. Optional. (P308)

7. What is the purpose of setting up terms? Describe how you would set up a
code with multiple
payments. Describe how you would set up a term that requires immediate
payment.???
Accounts Payable uses terms to calculate due dates and discount dates of transactions.
(P311)
Term code: INSTAL, Multiple payment schedule: Yes (Once this option has been
selected and the terms
code has been saved, it cannot be changed.)

CH11:
1. What is the purpose of defining vendor groups? (p325)
Use vendor groups to group vendors who have similar characteristics.
You can accumulate statistics by vendor groups, and select to limit the processing of
payments and the
printing of reports by vendor groups
Must create at least one vendor group before entering any vendor profiles.
Before you can create vendor groups, you must create one account set and one term
code
2. Explain the following options found in the Vendor Groups form:
a) Distribute by
There are four default distribution methods for vendors in this group: Distribution Set;
Distribution Code;
G/L Account; None(invoicing tab)
b) Duplicate Invoice Checking(p328)
Select an option for how the Accounts Payable module will handle invoices entered for
the same vendor
and amount & for the same vendor and date.
The three options for handling duplicate invoices are:
1. None Ignores the error
2. Warning Displays a warning message
3. Error Will not post the invoice
Accounts Payable will not allow you to enter an invoice with an invoice number that
already exists for
the vendor.

c) Generate Separate Payments for Each Invoice(p335)

The option selected for the vendor group is shown here. You can modify it for each
vendor.
3. How will the options selected in the vendor group affect vendor profiles?
Vendors must be entered before you can process any transactions in the Accounts
Payable module.
??
4. Explain the following options found on the Vendors form:
a) On Hold(p333)
Select this option to put a vendor account on hold.
Vendors on hold will not be included in a system-generated cheque run even if they
meet the
requirements of the cheque run.

b) Inactive
Select this option to prevent any type of transactions from being posted to the vendor
account. This
option can be selected only if the vendor has a zero balance and has no outstanding
transactions.
c) Short Name
This field automatically contains the first 10 characters entered in the Vendor Name
field. Modify it if you
like, as the short name can be used to sort vendors in reports.
5. How do you change the tax class in individual vendor profiles?(p328)
The tax class will default to Tax Class 1. Tax classes can be changed in each individual
vendor record and
during invoice entry.
6. What is the purpose of defining remit-to locations?
remit-to locations can be set up for vendors to which payments can be sent as an
alternative to the
address in the vendor profile
a remit-to location can be defined as the primary remit-to location for a vendor, making it
the default
address for the vendor during invoice and payment entry
7. Explain the Primary Remit-To option found on the Remit-To Location form.
(p347)
Select this option(inactive) if you no longer want to use the remit-to location. If you make
a primary
remit-to location inactive, be sure to turn off the Primary Remit-To option.

Ch12:
1. Explain how you create a new invoice batch. (P356)
To create an invoice batch, you can select the Invoice Entry icon in the A/P
Transactions folder or you can create a new invoice batch directly from the A/P Invoice
Batch List
window.
2. Can the default information on the Document tab of the Invoice Entry
window be changed for individual invoices? (P358)
Yes. Don’t use Quick Mode (in setting).
3. Explain the difference between selecting Enter or Calculate for the Tax
Amount option on the Taxes tab of an invoice.(p363)
If Enter or Distribute has been selected, taxes can be entered manually. If Calculate has
been selected,
this field cannot be edited and the system will use the tax base to calculate the tax
amount
automatically.
This

4. Can the vendor tax class be changed for the tax authorities on an invoice?
If so, how? (P363)
Yes. You can change it from the vendor profile by either typing the correct number for
the class or using
the finder to select it, not automatically change the tax classes for each distribution line.
Can change vendor tax class in Tax tab window
Yes. If the tax class is incorrect for the vendor, you can change it for this transaction;
however, you should
also change it in the vendor profile.
5. List the three methods by which an invoice can be distributed and give an
example of each method. ???
?? Distribution Set; Distribution Code; G/L Account
??Tax class, Division, Payment nature (cheque, cash, prepayment)
6. Can the distribution method be changed on individual invoices?
Yes, you can change the distribution method at the time of invoice entry.
7. What information is found on the Totals tab of an invoice? (p366)
Total amount of the invoice before tax;
Total amount of all taxes (we set the taxes to 0.00)
Total undistributed amount displayed
Document total
Total amount of a prepayment if entered
Discount available if the term code contains a discount
Total amount of the invoice including taxes and after a possible discount is taken
Amount of tax that is recoverable (i.e., HST or GST)
Tax that is to be expensed separately
Tax that is to be allocated (i.e., PST)
Total amount of all taxes
8. When printing invoice batch listings, why is it important to enter the
correct date?(P375)
Only invoice batches that were created in the batch date range will be
9. Can a batch with a status of Ready To Post be edited?
Yes, double click to from “no ” to “Yes”
10. What is the purpose of the Invoice Batch List window?(p372)
Get to overview
Displays a list of all batches beginning with the starting batch number you specify.
Select to show or hide posted and deleted batches in the Batch List window.
Be used to perform all tasks required for each A/P Invoice batch.
11. What was the purpose of deleting the Accounts Payable opening balances
batch in the General Ledger module for Omni Electrical Supplies? (p380)
g/l will double AP balance, in order to avoid overstated amounts in the General Ledger.

12. What is the purpose of the Tax Tracking report? (p383)

This report lists the tax amounts charged on taxable transactions. Use it to complete
reports required by
the government to report taxes for each tax authority.
13. How do you enter a prepayment against an invoice during invoice entry?
(p389)
Use the Prepay button to open the Prepayments window, where you can enter a full or
partial payment
against the invoice you are currently entering.
14. Explain what happens to a vendor balance when a credit note is entered.
Will deduct the value from credit amt.
Credit notes debit the Accounts Payable account and credit the offsetting account,
thereby decreasing
your debt. (p397)
Debit notes, Interest charges credit the Accounts Payable account and debit the
offsetting account,
thereby increasing your debt.
15. What information is available via the Vendor Activity icon?(p400)
To view the outstanding balance owed to your vendor.
CH13
1. What is the purpose of an adjustment? (p407)
correct mistakes in posted documents,
correct transaction amounts,
correct transactions that have been distributed to incorrect accounts,
adjust minor errors made in cheque amounts.
You can make adjustments to fully paid documents
2. When entering adjustments, do you enter the amount that is to be posted
to the distribution
code (or G/L account), or do you enter the amount that is to be posted to the
Payables Control
account?(p410)
enter the amount that is to be posted to the distribution code (or G/L account)
The Accounts Payable account is not entered or displayed in the distribution table. If
you debit or credit the distribution code(s) or G/L account(s), the Accounts Payable
control
account assigned to the vendor will receive the offsetting balance automatically.
3. How is the Payables Control account affected in an adjustment?
Debit the adjustment account, payable control account credit automatically;
Credit the adjustment account, payable control account debit automatically
4. When making an adjustment, can you apply it to the vendor balance, or
does it have to be
applied to a document?
to be applied to a document,
Select the Vendor Activity icon in the A/P Vendors folder to view the outstanding
balance of the
documents that were adjusted in this lesson(p414)
5. How do you set the status of an adjustment batch to Ready To Post? (p414)

post the batch from the Adjustment Batch List window by clicking on the Post button
post the batch
from the Post Batches icon from the A/P Transactions folder if the batch was first set
Ready To Post in the
Adjustment Batch List window.
6. Explain how to enter an adjustment to an invoice in which the amount of
the adjustment is correct but the distribution code has been entered
incorrectly.
Debit correct account(expense account), credit incorrect account(expense account)
7. After an adjustment batch has been posted, is a batch created in the
General Ledger module?
Yes.
CH14
1. Describe the three methods for recording payments in the Accounts
Payable module.(p417)
You can manually enter batches to create payments using the Payment Entry form,
have the module
generate payments through the Create Payment Batch form, or enter a payment at the
time of invoice
entry.
2. Describe the four payment transaction types that are available for entering
payments in the
Payment Entry form.(p419)
1.Payment:
2.Prepayment:
3.Apply Document
4.Miscellaneous Payment:
3. What information is displayed when you choose Select Mode when
selecting documents for
payment?(p420)
Displays all outstanding transactions in the table in the order you request.
view all documents, invoices, debit notes, credit notes, or prepayments.
4. If a discount is not available for a payment based on the discount date, can
you still enter the
discount? If so, how?(p440)
The Accounts Payable module selects documents to be paid with discount dates
available between the
dates specified. This option appears only if you have selected one of the options that
includes paying
documents by the Discount date.
5. What types of documents can be applied against documents using the
Apply Document
Transaction Type?(p419)
Allows you to apply a posted prepayment or credit note against an invoice, debit note,
or interest
charge.
6. What information is entered for a miscellaneous payment?(p426)
You can make a payment to a one-time vendor for an invoice that has not yet been
entered into the
system. To enter the invoice information, enter the distribution details of the purchase
the same way as
in the Invoice Entry window. The distribution accounts will be debited, and the bank
account for the
payment will be credited.
7. Explain how you can view transactions that have been applied against
other transactions in the
Vendor Activity icon.
Vendor Activity icon in the A/P Vendors folder to view the outstanding balance owed to
your vendors. Here
1. Double click on the Vendor Activity icon in the A/P Vendors folder
2. Click on the finder beside the Vendor No. field
3. Double click on Vendor No. 2020
5. View the information on the Activity tab
Summary information is displayed about the current status of the account.
6. Click on the Aging tab
8. View the information on the Aging tab
Your company’s account balance is displayed in each of the aging categories for the
selected vendor.
9. Click on the Transactions tab
This

1, What is the purpose of defining vendor groups? How do you change the tax class in
individualvendor profiles?

2, Describe/define and state the purpose of Tax Services? What are Tax Authorities?
How many canyou enter? When entering tax classes for the sales transaction type,
what two items mustyou enter the tax classes for? What about the purchases
transaction type? Whatinformation is included in tax groups?

3, What are transaction types used for in Bank Services? When you created the
setuptransaction type for each bank account, why was the bank account used as
theoffsetting account?

Setup a folder called Answer_xx folder, where xx = your initials. Place all of your screen
caps and .PDF report files in this folder.

All figures (e.g. sales, purchases, expenses) are “net” of (i.e. do not include) applicable
taxes-you must add the tax unless it is not required. Note: HST is charged at 13%. You
must add HST where appropriate.

Change the company name to Test 2 – and the last 4 digits of your student ID space
Inc. (e.g. Test 2 1234 Inc.) As well, all batch and transactions required your initials in the
description. For example for batch 1 description (Historical invoices – xx), where xx is
your initials.
Change the Session Date to February 28, 2021. If Purchase order numbers are
required and not provided, use the current date in the format mmdd-yy (e.g. 11-13-21).

1. Set up a new vendor with the following information: Vendor Number: 1520; College
Office Supplies (xx), 1750 Finch Ave. W, North York, Ontario, M5T 3B2, Telephone: (416)
491- 5050; Group code: ECN; Terms code: Net 30; Credit Limit: 5,000; Dist. Code:
OFF200; Tax Group, ONT13; HST13 Class, 1-Taxable (4 Marks).

3. Print the Posting Journal (PDF report or screen shot) for this batch and review for accuracy
(Create a PDF or use Print screen). Post the batch. (2 marks)
4. Setup a batch called Recurring/Adjustment Entry Batch and enter transactions for questions 6
and 7 (2 Marks).

5. You have setup a deal with Office Depot for them to send you 10 cases of computer paper on
the 15th of each month at a cost of $670.00 plus HST13, Net 30 days. Create a recurring
payable code for this monthly transaction. Assign it to the monthly schedule code that is
processed on the 15th of each month, beginning 02/15/2021. The recurring payable to be
charged to the office expense account of the textbook department. Lastly, enter the invoice for
the first month. (Insert you initials after each batch description and transaction line description)
(6 marks).

6. Invoice number 69445 from the Office Depot was posted to the wrong department. Instead of
being posted 80% to the mechanical department and 20% to the electrical department, it should
have been posted the other way around, 20% to mechanical and 80% to electrical. Create the
necessary adjustment batch to make this adjustment. Use the same date as the original invoice.
(with xx after each transaction line description) (3 marks)

7. Print the Posting Journal (PDF report or screen shot) for this batch and review for accuracy
(Create a PDF or use Print screen). Post the batch. (2 marks)
Part 2