QG SAP B1 On Cloud FundAcc AY2021 2022

SAP Business One Cloud – Fundamentals of Accounting
QUICKGUIDE
FUNDAMENTALS OF ACCOUNTING
FIT ACADEMY l GF King’s Court Bldg II., Chino Roces cor. Delarosa Sts., Makati City 1200, Philippines l Telephone Number: 63.2.759.4348 l www.fitacademy.ph
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Table of Contents
Chapter 1: SAP on Cloud Platform .............................................................................................................. 5
Overview ................................................................................................................................................. 5
Types of Cloud Deployment ................................................................................................................ 5
Huawei Cloud Platform ....................................................................................................................... 6
Capabilities and User Experience ............................................................................................................ 7
Key Features of Cloud Computing ....................................................................................................... 7
Introduction to SAP ............................................................................................................................. 8
SAP Business One ................................................................................................................................ 9
Benefits ................................................................................................................................................. 10
SAP Business One: On Premise vs. On Cloud..................................................................................... 10
Getting Started ......................................................................................................................................... 11
Basic Navigation .................................................................................................................................... 11
Log-in to SAP Business One ............................................................................................................... 11
User Interface ................................................................................................................................... 12
Branch Name Setting ........................................................................................................................ 14
Basic Customization .......................................................................................................................... 15
Exercises ................................................................................................................................................... 15
Chapter 2: Introduction to Fundamentals of Accounting.......................................................................... 16
Brief History of Accounting ................................................................................................................... 16
Types of Business Organizations ........................................................................................................... 16
Hybrid Business ..................................................................................................................................... 17
Double Entry Bookkeeping.................................................................................................................... 17
Basic Accounting Principles ................................................................................................................... 17
Computerized Accounting System ........................................................................................................ 18
Accounting and SAP Business One ........................................................................................................ 21
Exercises ................................................................................................................................................... 21
Chapter 3: Chart of Accounts .................................................................................................................... 22
Balance Sheet Accounts ........................................................................................................................ 23
Profit and Loss Accounts ....................................................................................................................... 24
Viewing of Chart of Accounts ................................................................................................................ 24
Color Coding of SAP B1 Chart of Accounts ........................................................................................ 25
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Editing of Chart of Accounts ................................................................................................................. 25

Exercises ................................................................................................................................................... 26
Chapter 4: Subsidiary Ledgers ................................................................................................................... 27
What is the purpose of control accounts? ........................................................................................ 27
What is the purpose of subsidiary ledgers? ....................................................................................... 27
Exercises ................................................................................................................................................... 28
Chapter 5: Accounting Cycle ..................................................................................................................... 29
Accounting Cycle of the System ........................................................................................................ 29
A. Journalizing ........................................................................................................................................... 30
Special Journals ..................................................................................................................................... 30
Sales Journal ..................................................................................................................................... 30
Cash Receipts Journal ....................................................................................................................... 30
Purchases Journal ............................................................................................................................. 30
Cash Disbursements Journal ............................................................................................................. 30
General Journal ..................................................................................................................................... 31
Manual Journal Entry ........................................................................................................................ 31
Journal Voucher ................................................................................................................................ 32
Reversal ................................................................................................................................................ 34
Transaction Journal Report ................................................................................................................... 35
Exercises ................................................................................................................................................... 35
Special Journal (Purchase) ........................................................................................................................ 36
Purchase Journals ............................................................................................................................. 36
Procurement under SAP Business One ............................................................................................. 36
A/P Invoice ........................................................................................................................................ 36
To view Purchase Journal .................................................................................................................. 39
Exercises ................................................................................................................................................... 40
Special Journal (Disbursements) ............................................................................................................... 41
Disbursements Journal ...................................................................................................................... 41
Outgoing Payments in SAP Business One .......................................................................................... 41
Payment of Invoice from Suppliers ................................................................................................... 41
Payment of Expenses ........................................................................................................................ 43
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Exercises ................................................................................................................................................... 44
Special Journal (Sales) ............................................................................................................................... 45
Sales Journal ..................................................................................................................................... 45
Credit Sales Transaction .................................................................................................................... 45
Cash Sales Transactions .................................................................................................................... 48
To view Sales Journal ........................................................................................................................ 48
Exercises ................................................................................................................................................... 49
Special Journal (Cash Receipts) ................................................................................................................. 50
Cash Receipts Journal ....................................................................................................................... 50
Incoming Payments in SAP Business One .......................................................................................... 50
To view Receipts Journal ................................................................................................................... 51
Exercises ................................................................................................................................................... 51
B. General Ledger ..................................................................................................................................... 52
Generating the General Ledger Report ............................................................................................. 52
C. Trial Balance.......................................................................................................................................... 53
Generating the Trial Balance Report ................................................................................................. 53
D. Adjustments ........................................................................................................................................ 55
Accruals ............................................................................................................................................. 55
Deferrals ........................................................................................................................................... 55
How to record adjusting entries ....................................................................................................... 56
Exercises ................................................................................................................................................... 56
E. Financial Statements ............................................................................................................................. 57
Financial Statements ............................................................................................................................. 57
F. Closing Entries ....................................................................................................................................... 58
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Chapter 1: SAP on Cloud Platform
At the end of this chapter, students will be able to:

1. Describe the different types of cloud deployment
2. Identify the key features of Cloud Computing
3. Differentiate on premise and on cloud SAP Business One experience
Overview
Cloud computing represents a new way to deploy computing technology to give users the ability
to access, work on, share, and store information using the internet. The ideal way to describe Cloud
Computing would be to term it as 'Everything as a Service' (abbreviated as XaaS). The cloud itself is a
complex network of data centers, each composed of thousands of computers working together that can
perform and achieve the functions of a software on a personal or business computer units by providing
users access to a vast number of applications, platforms and services delivered over the Internet.
Types of Cloud Deployment
PRIVATE CLOUD
Private Cloud, also known as Internal Cloud, is a cloud based infrastructure operated exclusively
for a single organization with all data protected behind an internal firewall. This is usually physically
located at the company's on-site data center or can also be managed and hosted by a third-party provider.
PUBLIC CLOUD
Public Cloud, also known as External Cloud, is available to the public where data are created and
stored on third-party servers. Service infrastructure belongs to service providers that manage them and
administer pool resources. The need for user companies to buy and maintain their own hardware is
eliminated. It is based on a shared cost model for all the users or in the form of a licensing policy such as
pay per use.
HYBRID CLOUD
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Hybrid Cloud encompasses the best features of the above-mentioned cloud computing
deployment models. It allows companies to mix and match the facets of public and private cloud that best
suit their requirements.
Huawei Cloud Platform
Huawei Cloud is the chosen partner of Fasttrack IT Academy for the deployment of SAP Business
One on Cloud to our university and collegiate partners. Huawei Cloud now distills 30+ years of
accumulated technology, innovation, and expertise in the ICT infrastructure field to offer customers
everything as a service. You can grow your enterprise in the best environment with stable, secure, and
ever-improving Huawei Cloud services and affordable, inclusive AI. It provides a powerful computing
platform and easy-to-use development platform to support Huawei's full-stack, all-scenario AI strategy.
By the end of 2019, Huawei Cloud had launched 200+ cloud services and 190+ solutions. News
agencies, social media platforms, law enforcement, automobile manufacturers, gene sequencing
organizations, financial institutions, and a long list of other industry customers are all benefiting in
significant ways from Huawei Cloud. 3,500 applications were added to the Huawei Cloud marketplace
with offerings from more than 10,000 business partners.
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Capabilities and User Experience

Key Features of Cloud Computing
The characteristics of Cloud Computing express its significance in the current business market. It has
already been proven that Cloud Computing is a model for enabling universal, convenient and on-demand
network access. Below are the key features of Cloud Computing:
• Agility -helps in rapid and inexpensive re-provisioning of resources
• Location Independence - resources can be accessed anywhere (except on limitations set by

company's internal control)
• Multi-Tenacity - resources are shared amongst a large pool of users
• Reliability - dependable accessibility of resources and computation
• Scalability - dynamic provisioning of data helps in avoiding various bottleneck scenarios
• Ease of Maintenance - users (companies/organizations) have less work in terms of resource

upgrades and management, handled by service providers of cloud computing
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Introduction to SAP
SAP (stands for Systems,
Applications and Products in data
processing) is a European multinational
software corporation founded in 1972,
headquartered in Walldorf, Baden-
Wurttemberg, Germany with regional
offices in 180 countries.
It is founded by five IBM engineers namely Hasso Plattner, Klaus Tschira, Claus Wellenreuther,
Dietmar Hopp and Hans-Werner Hector.
SAP is
considered as one
of the world’s
largest business software company:
• Commands 67% share of the Business Software Market
• 12 Million Users. 95,000 Installations in more than 130 countries
• 1,500 Partners. 25+ Industry Solutions. 60,000 employees
It is the recognized leader in providing collaborative business solutions for all types of industries and for
every major market globally.
Some of SAP users in the Philippines and worldwide:
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SAP Business One

SAP Business One is an ERP (Enterprise Resource Planning) Solution. It is arranged into 15 functional
modules, automating the major functions in a business organization. This system prides itself on having
the following characteristics:
• Integrated
• Real-time
• Flexible
• Easy to use
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Benefits
SAP Business One: On Premise vs. On Cloud
Fasttrack IT Academy formerly offers SAP Business One – On premise with our university and
collegiate partners. To be able to provide our partners with the most recent business solution trends in
the industry, we have decided to open the doors on the latest cloud computing developments, thus
offering SAP Business One on Cloud. The following are the differences between SAP Business on Premise
and SAP Business on Cloud:
Measures On Premise On Cloud
On premise installation of SAP
Deployment Through the internet
Business One
Accounting Localized / Independent Branch Accounting
Limited (within the premises of the
Accessibility Remote access through the internet
installation)
Data Storage Hardware Cloud Server
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Getting Started
At the end of this chapter, students will be able to:

1. Log-in to SAP Business One
2. Identify the parts of the user interface and other basic navigation
tools of the system
Basic Navigation
Log-in to SAP Business One
1. Accessing SAP Business One on Cloud is done using web browsers. Open any web browser (e.g.
Google Chrome, Mozilla Firefox, Microsoft Edge,etc)
2. Input on the address bar of the web browser the URL provided by your instructor.
3. Press Enter.
4. You will be directed to the SAP Business One log-in page.
5. Select the company that will be provided by your instructor.

6. Log-in using the User ID and Password provided below, depending on the branch assigned to
you:
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Branch User ID Password Branch User ID Password Branch User ID Password

Branch 1 Branch 18 Branch 35
Branch 17 Branch 34
User Interface
Menu Bar and Tool Bar
The SAP Business One menu bar displays at the top of the screen. The menu bar contains the Windows
standard menu (File, Edit, W window, Help) as well as generic SAP Business One functions.
The toolbar displays under the menu bar. The toolbar is a collection of icon buttons that grant you easy
access to commonly-used functions. The functions represented by the buttons are also available in the
menu bar.
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Modules Menu
Navigation in SAP Business One is done using the Modules Menu. It arranges the functions of the
individual applications in a tree structure.
The Modules Menu contains a list of all modules with their related options. The menu option includes:
• Are arranged in the same order as the menus in the Main Menu
• Cannot be modified
• May be inactive for unauthorized users
User and Password Maintenance

The users of SAP Business One are defined in the User-Setup window.
To change the name of the user:
1. Go to the tool bar and click (My Personal Settings). User Set-up window will appear.
2. Change the name on the User Name field with your own name.
3. Personalize your password by clicking beside the Password field.
4. Input the old password, then input your personalize password on Password field and Confirm
field.
5. Click OK.
6. Click Update.
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Branch Name Setting

1. Go to Administration > Setup > Financials > Branches
2. Branches Setup window will open. Look for the branch assigned to you then change the Branch
Name and Branch Name (Foreign) with your own name.
3. Update.
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Basic Customization
To set how certain parameters are displayed in SAP Business One on Cloud:
1. Go to Administration>System Initialization>General Setting
2. On the Display tab, choose the following settings:
Language: English (United States)
Time Format: 12H
Date Format: MM/DD/YYYY
3. Click UPDATE to save the settings. Click OK to exit the window.
*Note: Font Size and Font Style is predefined on SAP Business One on Cloud and cannot be changed. If
you want to increase the font size, directly increase zoom % of the browser that you are using.
Exercises
For exercises regarding Basic Navigation, refer to Exercise 1.1 and 1.2 of the Exercise Workbook.
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Chapter 2: Introduction to Fundamentals of Accounting

Accounting is a systematic process of identifying, recording, measuring, classifying, verifying,
summarizing, interpreting and communicating financial information. It provides feedback to management
regarding the financial results and status of an organization. It may be handled by a bookkeeper or an
accountant at small firms or by sizable finance departments.
Brief History of Accounting

Luca Pacioli, a Franciscan f r i a r i n M e d i e v a l V e n i c e , wrote the ―Summa de
arithmetica, geometria, proportioni et proportionalità‖ in 1494. In it, he detailed a system of financial
recordkeeping in which every debit (Latin for ―he owes‖) was matched to a credit (―he trusts‖). In his
system, Pacioli included asset, liability, capital, income, and expense accounts: exactly those
categories you would find on your own balance sheet and income statement. Although he is not
credited with having invented the system (that designation goes to the Venetian merchants who
used it), he is nonetheless known as the ―Father of Accounting‖ for having put it to paper. Although
modern accounting revolves around double-entry bookkeeping, accounting as a technical craft existed
long before Pacioli. Financial records of goods sold and money exchanged stretch back to ancient
Mesopotamia, Assyria, Babylon, and Sumeria, where it likely functioned as an expedient to taxation and
the operation of temples. There is even record of a state official in Egypt holding the title of―comptroller.
Types of Business Organizations

A business entity is an organization that uses economic resources or inputs to provide goods or
services to customers in exchange for money or other goods and services. Business organizations
come in different types and different forms of ownership.
Three major types of businesses:
1. Service Business
A service type of business provides intangible products (no physical form). Service type firms
offers professional skills, expertise, advice, and other similar products.
Examples: salon, repair shops, schools, banks, accounting and law firms
2. Merchandising Business
This type of business buys products at wholesale price and sells the same at retail price. They are
known as “buy and sell” businesses. They make profit by selling the products at prices higher than
their purchase costs. A merchandising business sells a product without changing its form.
Examples: grocery stores, convenience stores, distributors, and other resellers
3. Manufacturing Business
Unlike a merchandising business, a manufacturing business buys products with the intention of
using them as materials in making a new product. Thus, there is a transformation of the products
purchased. A manufacturing business combines raw materials, labor, and factory overhead in its
production process. The manufactured goods will then be sold to customers.
Examples: furniture shops, gardenia, car dealers
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Hybrid Business
Hybrid businesses are companies that may be classified in more than one type of business. A
restaurant, for example, combines ingredients in making a fine meal (manufacturing), sells a cold bottle
of wine (merchandising), and fills customer orders (service). Nonetheless, these companies may be
classified according to their major business interest. In that case, restaurants are more of the service type
– they provide dining services.
Double Entry Bookkeeping

Double entry is the fundamental concept underlying present-day bookkeeping and accounting.
Double-entry accounting is based on the fact that every financial transaction has equal and opposite
effects in at least two different accounts. in which each entry is recorded to maintain the
relationship.
The fundamental concept of double entry derives from the use of debit and credit to record
business transactions. The total debits always equal the total credits. Customarily, in bookkeeping and
accounting, the asset, expense and loss accounts are listed on the left side of a bookkeeping sheet, and
the liability, equity, revenue and gain accounts are listed on the right side, with the two sides maintaining
the same total balance. A debit to one or more accounts must be accompanied by a credit to at least one
account, equally increasing or decreasing the balance on each side. Other times, a debit to either side is
balanced out by an equal credit to the same side.
Basic Accounting Principles

A number of basic accounting principles have been developed through common usage. They form
the basis upon which modern accounting is based. The best-known of these principles are as follows:
1. Accrual principle. This is the concept that accounting transactions should be recorded in the
accounting periods when they actually occur, rather than in the periods when there are cash
flows associated with them. This is the foundation of the accrual basis of accounting. It
is important for the construction of financial statements that show what actually happened
in an accounting period, rather than being artificially delayed or accelerated by the associated
cash flows.
2. Conservatism principle. This is the concept that you should record expenses and liabilities
as soon as possible, but to record revenues and assets only when you are sure that they
will occur. This introduces a conservative slant to the financial statements that may yield
lower reported profits, since revenue and asset recognition may be delayed for some
time. Conversely, this principle tends to encourage the recordation of losses earlier, rather
than later.
3. Cost principle. This is the concept that a business should only record its assets, liabilities, and
equity investments at their original purchase costs. This principle is becoming less valid, as
a host of accounting standards are heading in the direction of adjusting assets and liabilities
to their fair values.
4. Economic entity principle. This is the concept that the transactions of a business should be
kept separate from those of its owners and other businesses. This prevents intermingling of
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assets and liabilities among multiple entities, which can cause considerable difficulties
when t he financial statements of a fledgling business are first audited.
5. Full disclosure principle. This is the concept that you should include in or alongside the f inancial
statements of a business all of the information that may impact a reader's understanding
of those financial statements. The accounting standards have greatly amplified upon this
concept in specifying an enormous number of informational disclosures.
6. Going concern principle. This is the concept that a business will remain in operation for
the foreseeable future. This means that you would be justified in deferring the recognition
of some expenses, such as depreciation, until later periods. Otherwise, you would have to
recognize all expenses at once and not defer any of them.
7. Matching principle. This is the concept that, when you record revenue, you should record
all related expenses at the same time. Thus, you charge inventory to the cost of goods sold
at the same time that you record revenue from the sale of those inventory items. This is a
cornerstone of the accrual basis of accounting. The cash basis of accounting does not use the
matching the principle.
8. Materiality principle. This is the concept that you should record a transaction in the
accounting records if not doing so might have altered the decision making process of
someone reading the company's financial statements. This is quite a vague concept that is
difficult to quantify, which has led some of the more picayune controllers to record even the
smallest transactions.
9. Monetary unit principle. This is the concept that a business should only record transactions
that can be stated in terms of a unit of currency. Thus, it is easy enough to record the
purchase of a fixed asset, since it was bought for a specific price, whereas the value of the
quality control system of a business is not recorded. This concept keeps a business from
engaging in an excessive level of estimation in deriving the value of its assets and liabilities.
10. Time period principle. This is the concept that a business should report the results of
its operations over a standard period of time. This may qualify as the most glaringly obvious
of all accounting principles, but is intended to create a standard set of comparable periods,
which is useful for trend analysis.
Computerized Accounting System

While some firms still do their bookkeeping by hand, most firms generally have too many
transactions to sustain a manual accounting system. The more complicated the financial activities of your
business are, the more likely it is that you'll need a computerized accounting system to ensure effective
financial reporting. Computerized accounting systems are software programs that are stored on a
company's computer, network server, or remotely accessed via the Internet.
Computerized accounting systems allow you to set up income and expense accounts, such as
rental or sales income, salaries, advertising expenses, and material costs. They also can be used to manage
bank accounts, pay bills, and prepare budgets. Depending upon the program, some accounting systems
also allow you to prepare tax documents, handle payroll, and manage project costing. You can generally
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customize the software to meet the needs of your business. It's important to make sure that your staff are
trained and understand how to use the system correctly so that your company can successfully use your
accounting program.
Special Features of Computerized Accounting

1. It leads to quick preparation of accounts and makes the accounting statements and records
available on time.
2. It ensures control over accounting work and records.
3. Errors and mistakes would be at minimum in computerized accounting.
4. Maintenance of uniform accounting statements and records is possible.
5. Easy access and reference of accounting information is possible.
6. Flexibility in maintaining accounts is possible.
7. It involves less clerical work and is very neat and more accurate.
8. It adapts to the current and future needs of the business.
9. It generates real-time comprehensive MIS reports and ensures access to complete and critical
information instantly
Advantages of Computerized Accounting

1. Better quality work
The accounts prepared with the use of computers are usually uniform, neat, accurate, and more
legible than manual job.
2. Lower Operating Costs
Computer is a labor and time saving devise. Hence, the volume of job handled with the help of
computers results in economy and lower operating costs.
3. Improved Efficiency
Computer brings speed and accuracy in preparing the records and accounts and thus, increases
the efficiency of employees.
4. Facilitates Better Control
From the management point of view, greater control is possible and more information may be
available with the use of computer in accounting. It ensures efficient performance in accounting
work.
5. Greater Accuracy
Computerized accounting ensures accuracy in accounting records and statements. It prevents
clerical errors and omissions.
6. Relieve Monotony
Computerized accounting reduces the monotony of doing repetitive accounting jobs, which are
tiresome and time consuming.
7. Facilitates Standardization
Computerized accounting facilitates standardization of accounting routines and procedures.
Therefore, standardization in accounting is ensured.
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8. Minimizing Mathematical Errors
While doing mathematics with computers, errors are virtually eliminated unless the data is
entered improperly in the first instance.
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Accounting and SAP Business One

SAP software can help you become a best-run business – in fact it's the choice of more than
80,000 small businesses and midsize companies.
SAP software is:

• Affordable for small businesses and midsize companies
Every business is unique, which is why we offer a complete portfolio of business management and
business intelligence solutions designed to fit the way you do business – and your budget.
• Designed with your company in mind
SAP solutions for small and midsize companies are designed to be complete – offering the breadth
and depth of functionality you need to run your business; easy to use – enabling quick adoption
with little training; and flexible – they can scale and adapt as you grow your business. Every
solution we offer is based on best practices learned from more than 35 years of SAP's experience
working with best-run companies.
Exercises
For exercises regarding Introduction to Fundamentals of Accounting, refer to Exercise 2.1 of the Exercise
Workbook.
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Chapter 3: Chart of Accounts
Chart of Accounts is a financial organizational tool that provides a complete listing of every
account in an accounting system. An account is a unique record for each type of asset, liability,
equity, revenue and expense.
The chart of accounts consists of balance sheet accounts (assets, liabilities, and stockholders’
equity) and income statement accounts (revenues, expenses, gains, losses). The chart of accounts can
be expanded and tailored to reflect the operations of the company.
Within the chart of accounts, you will find that the accounts are typically listed in the following
order:
Balance Sheet Income Statement

Assets Operating Revenues
Liabilities Operating Expenses
Owner’s Equity Non-Operating Revenues and Gains
Non-Operating Expenses and Losses
Within the categories of operating revenues and operating expenses, accounts might be further
organized by business function (such as producing, selling, administrative, financing) and/or by
company divisions, product lines, etc.
A company's organization chart can serve as the outline for its accounting chart of accounts.
For example, if a company divides its business into ten departments (production, marketing, human
resources, etc.), each department will likely be accountable for its own expenses (salaries, supplies,
phone, etc.). Each department will have its own phone expense account, its own salaries expense, etc.
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SAP CHART OF ACCOUNTS
The Chart of Accounts is organized by drawers and levels. The organization of the chart of
accounts follows GAAP (Generally Accepted Accounting Principles) in which there is a separate
drawer for accounts representing: Assets, Liabilities, Equity (Capital and Reserves), Revenues
(Turnover), Cost of Sales, Expenses (Operation Costs), Financing (Non-Operating Income and
Expenditure), and Other Revenues and Expenses (Taxation and Extraordinary Items). These drawers,
which have been defined by SAP and cannot be changed, organize your accounts by level in a logical
fashion appropriate to your financial accounting and reporting processes.
In the General Ledger, we distinguish between Balance Sheet Accounts and Income
Statement Accounts, also called Profit and Loss Accounts.
Balance Sheet Accounts
• The first 3 drawers: Assets, Liabilities, Equity (Capital and Reserves) hold the Balance Sheet
Accounts, such as the Sales Tax account and the Accounts Payable Account.
• The bookkeeping balance of these accounts is kept from one fiscal year to the next.
• The Balance Sheet Accounts – reflect the monitory value of the company - stock, assets, debt,
etc.
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Profit and Loss Accounts
• The last 5 drawers: Revenues (Turnover), Cost of Sales, Expenses (Operation Costs), Financing
(Non-Operating Income and Expenditure), and Other Revenues and Expenses (Taxation
and Extraordinary Items) hold the Profit and Loss Accounts, such as the Income Accounts. Note
that in some localizations, the lower drawers are not all profit and loss account drawers.
• The bookkeeping balance of these accounts has to be cleared at the end of each fiscal year –
this is the Period End Closing process (will be discussed in Unit 4: Financial Periods Process).
• The Profit and Loss Accounts - reflect the changes in the company value, such as: sell stock –
cost of goods sold, increase revenues.
A chart of accounts arranges a company's general ledger accounts in a hierarchical structure. The
top level in the structure (level 1) consists of sections or groups for different type of accounts (assets,
liabilities, capital and reserves, turnover, and so on). The system displays the section as a cabinet drawer
(see figure). Each drawer has a section title, which you cannot change. The system displays lower-level
titles in blue and normal active accounts in black. Accounts that you have entered in the G/L Account
Determination (default accounts) are displayed in green. Levels 2 through 9 can contain either active
accounts or titles that combine several active accounts. Level 10 only contains active accounts. Because
only active accounts can be posted to in SAP Business One, it is a good practice to have all your active
accounts at the same level. In reports, a title account summarizes all the balances of each active account
below it.
Viewing of Chart of Accounts

To view the existing Chart of Accounts:
Go to (1) Financials > (2) Chart of Accounts to:
• View the chart of accounts
• Change the properties of an account (To view and change some of the account properties,
choose the Accounts Details button)
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Color Coding of SAP B1 Chart of Accounts

Title Account – summarizes all the balances of each active
account below it. A title account is color coded as blue in SAP
Business One.
Active Account – only active accounts can be posted in SAP

Business One. It directly increase or decreases the balance of the
account through the debit and credit process. An active account is
color coded as black in SAP Business One.
Control Account – these accounts are already connected to

marketing documents (purchase and sales documents), balances
will directly increase or decrease depending on the nature of the
transaction. A control account is color coded as green in SAP Business One.
Editing of Chart of Accounts

To edit Chart of Accounts:
Add: A142000 Prepaid Rent
A143000 Office Supplies
Go to (1) Financials > (2) Edit Chart of Accounts to:

• Add a new title (To add new account, click Add Same-Level Acct or Add Sub-Level Acct)
• Delete an account (To delete an account, right-click on the account you would like
to delete > Advanced > Delete Account)
Note: You can only delete an account that has no postings
• Move title and accounts within the structure of the chart of accounts
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Note: Editing of Chart of Accounts will be for teacher’s demo purposes only.
Exercises
For exercises regarding Chart of Accounts, refer to Exercise 3.1 of the Exercise Workbook.
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Chapter 4: Subsidiary Ledgers

What is the purpose of control accounts?
The purpose of the control account is to keep the general ledger free of details, yet have the
correct balance for the financial statements. For example, the Accounts Receivable account in the
general ledger could be a control account. If it were a control account, the company would merely
update the account with a few amounts, such as total collections for the day, total sales on account for
the day, total returns and allowances for the day, etc.
What is the purpose of subsidiary ledgers?

A subsidiary ledger is a ledger designed for the storage of specific types of accounting
transactions. Once information has been recorded in a subsidiary ledger, it is periodically summarized
and posted to an account in the general ledger, which in turn is used to construct the financial
statements of a company.
By having the details of the accounts receivable activity in a subsidiary ledger, a company can
better control its financial information. For example, the credit manager and others in the credit
department of a company will have access to any and all of the credit sales information through the
subsidiary ledger without having access to any other account in the company‘s general ledger.
In SAP Business One, outstanding balances of customers or vendors can be retrieved through the
Account Balance field. Once the navigation arrow is clicked, details of the transactions will be shown.
To access subsidiary ledgers:

Go to (1) Business Partners → (2) Business Partners Master Data
3. Business Partner Master Data window will appear. On the code field, input the
asterisk symbol *
4. Click Find.
5. List of Business Partners window will appear. Click SU100000 Goodyear.
6. Click Choose.
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7. Click the link arrow beside the Account Balance field.

8. Account Balance window will appear, uncheck the check box beside Posting Date.
This is the subsidiary ledger of the particular Business Partner showing all his
recorded transactions.
Exercises
For exercises regarding Subsidiary Ledgers, refer to Exercise 4.1 of the Exercise Workbook.
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Chapter 5: Accounting Cycle

Accounting Cycle of the System
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A. Journalizing
In accounting and bookkeeping, a journal is a record of financial transactions in order by date.
A journal is often defined as the book of original entry. The definition was more appropriate when
transactions were written in a journal prior to manually posting them to the accounts in the general
ledger or subsidiary ledger. Manual systems usually had a variety of journals such as a sales journal,
purchases journal, cash receipts journal, cash disbursements journal, and a general journal.
With today's computerized bookkeeping and accounting, it is likely to find only a general journal
in which adjusting entries and unique financial transactions are entered. The recording and posting of most
transactions will occur automatically when sales and vendor invoice information is entered, checks are
written, etc. In other words, accounting software has eliminated the need to first record routine
transactions into a journal.
Special Journals
Sales Journal
A special or specialized journal i s u s e d to record sales of merchandise to customers. In a manual
system Sales Journal this saves a significant amount of recording time. In today's computerized
environment, sales are recorded automatically when the sales invoice is generated.
Cash Receipts Journal

A special journal (or specialized journal) used to record money received. In a manual system this will allow
one entry to the Cash account for the month (or shorter periods) instead of debiting the Cash account
for every receipt.
Purchases Journal
A purchases journal is a record of all acquisitions made on credit during a period. In other words, this is
a journal that keeps track of the orders placed using vendor credit or accounts payable as well as the
current balance owed to each vendor.
Cash Disbursements Journal

A cash disbursement journal is a record kept by accountants to record all financial expenditures made
by a company. Cash disbursement journals serve a number of functions, such as a source for recording
tax write-offs and the categorization of other expenses. This journal essentially functions as a checkbook
ledger, for all practical purposes.
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General Journal
The general journal is the master journal that all company transactions or journal entries are recorded
in. A typical general journal has at least five columns: one for the date, account titles, posting reference,
debit, and credit columns.
The majority of journal entries in SAP Business One come from one of the other modules; sales,
purchasing, payment, and inventory documents post transactions automatically to the G/L. However,
in GAAP accrual-based accounting, you sometimes need to make manual journal entries in the G/L,
such as depreciation entries, accrual entries, correcting entries, and the like —anything, in other
words, that would not come from one of the other SAP Business One modules. When a journal entry
is added manually, it is recorded immediately and cannot be deleted—only reversed.
The purpose of manual journal entries is to record transactions that are not automatically initiated
from a sub ledger or from another process within SAP Business One. For example, a manual journal
entry might be used to record a finance charge to a customer account or a service fee to a bank
account.
Manual Journal Entry

Example: The Company bought a printer for its office at Php 11,000 paid for by cash. Record the
transaction.
To post a manual journal entry, choose (1) Financials → (2) Journal Entry.
The screen for entering journal entries manually is divided into three areas: document header
data, extended editing mode for an item, and the items table.
3. The three dates in the header default to the current system date but you can change them:
a. Posting Date. This date determines the posting period, and therefore the fiscal period for
financial reporting. You can post to an earlier or later date if the posting period is Unlocked for
posting.
b. Due Date. The date the transaction is due.
c. Document Date. The date used for tax reporting purposes.
You can use the Ref. 1 and Ref. 2 fields to enter references to associated actual documents.
4. On the Remarks field, input a brief explanation of the transaction being recorded. Ex. Bought
printer for office
Note: If the entry that you are recording is an adjusting entry, tick the box. beside Adj. Trans (Period
13).
5. To add a debit account and debit amount, in the table, click the first field under the column G/L
Account / BP. A selection list will appear. This list is the Chart of Accounts. For the debit amount,
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click the field under the column Debit and enter the amount in figures. The system will just
automatically put in currency.
Dr. Office Equipment 11,000

Cr. Cash on Hand 11,000
6. Click Add.
Journal Voucher
When the user is creating a journal voucher, it is used for storing several journal entry drafts. You
can change journal voucher as long as they have not been posted yet. Then, you can access the journal
voucher, make any necessary corrections, and post the entire journal voucher. You do not have to post
each journal entry individually. If you do want to post the journal entries individually, however, you
must create a separate journal voucher for each journal entry draft. You can save an unbalanced journal
vouchers as long as it is in the draft mode. One of the main purposes of a journal voucher is to park entries
that are still subject to supervisor’s approval.
Example: The accountant wants to park an entry for the purchase of filing cabinets, to be paid for by
cash, worth Php 20,000. This transaction is still subject to the approval of the management.
Go to (1) Financials > (2) Journal Vouchers

3. When the Journal Vouchers window appears, click Add Entry to New Voucher
4. Journal Voucher Entry window will appear. Set the date to date today.
5. In the remarks field, input a short description of the transaction.
6. On the G/L Account Field, click the selection list so that the Chart of Accounts will appear and
choose or double-click the account. Make this entry:
Dr. Office Equipment 20,000
Cr. Cash on Hand 20,000
7. Click Add to Voucher.
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You can remove a journal voucher or delete an entry from a journal voucher, as long as they
have not been posted yet. The journal voucher entry will not be posted unless approved by the supervisor.
For it to be approved and posted in the accounting reports, click Post Voucher.
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Reversal
Users can make input errors. As a result, the journal entry created may contain incorrect
information. To provide an audit of the correction, the user must first reverse the journal entry in error,
and then capture the document correctly.
To cancel manual journal entries, (1) locate the journal entry you wish to cancel using the arrows
in the tool bar then (2) click Reverse and (3) Update the journal entry.
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Transaction Journal Report

Transaction Journal Report displays a list of transactions according to a selected transaction type
To access, go to (1) Financials > (2) Financial Reports > (3) Accounting > (4) Transaction Journal
Report > (5) OK to produce the report.
Exercises
For exercises regarding Journalizing refer to Exercise 5.1 to 5.6 of the Exercise Workbook.
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Special Journal (Purchase)

Purchase Journals
The purchases journal lists all credit purchases of merchandise. Entries in this journal usually
include the date of the entry, the name of the supplier, and the amount of the transaction. Some
companies include columns to identify the invoice date and credit terms, thereby making the purchases
journal a tool that helps the companies takes advantage of discounts just before they expire. The
purchases journal to the right has only one column for recording transaction amounts. Each entry
increases (debits) purchases and increases (credits) accounts payable.
Each day, individual entries are posted to the accounts payable subsidiary ledger accounts.
Creditor account numbers (or check marks if the creditor accounts are not numbered) are placed in the
purchases journal‘s reference column to indicate that the entries have been posted. At the end of the
accounting period, the column total is posted to purchases and accounts payable in the general ledger.
Procurement under SAP Business One
“The flow of information between purchasing, sales, and accounting is much smoother now. . . . With SAP
Business One, we have achieved major savings in terms of time and money.”
“With SAP Business One, you gain a detailed view of your vendors and support for an integrated,
centralized vendor data repository so you can make more effective purchasing decisions, identify
opportunities for cost savings, and better manage supplier relationships.”
“Master data management is a cornerstone of process integration in SAP Business One. Item and vendor
master records are maintained centrally in the system and integrated in all necessary business
transactions.”
Sunday Odubote, Financial Accountant
Cit Business Computers Limited
Thus, in SAP Business One, the document to use for credit purchase transaction is A/P Invoice.
A/P Invoice
An A/P invoice is entered into SAP Business One when you receive an invoice from the vendor. It
will be used to trigger a payment to the vendor.
Data entry tip. Use the Document Date field in the A/P invoice header to enter the vendor‘s invoice
date. This is important for accounting and auditing reasons as the invoice date and the posting date may
differ. You may also wish to change the name of the Vendor Ref. No. field in the document header to
Vendor Invoice No. This field prints on the check and allows your vendor to tie the payment to their invoice.
Accounting Impact of an A/P Invoice: The posted A/P invoice generates entries in the general ledger and
updates the vendor account with the amount owed to the vendor.
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Inventory Impact: In those cases where a vendor‘s invoice arrives at the time the items are received, the
resulting A/P invoice also increases inventory quantities and values.
Example:
The enterprise bought two car suspension machine at Goodyear for P100,000 (VAT not yet included).
Credit term is 2/10, n/30.
To access: Go to (1) Purchasing A/P > (2) A/P Invoice
3. Click the vendor field. Click the selection list. Choose Goodyear.
4. Type the date today in the Posting Date field. Press tab. The system automatically assigns the
due date field which is 30 days after the posting and document dates. The reason for this is
that during the creation of the subsidiary ledger for Goodyear, the payment term chosen was
2/10, n/30.
5. In the Item/Service Type field, change Item to Service by clicking the dropdown list.
6. In the first line of the table under the column G/L Account, choose office equipment.
7. In the column Total (LC) of the same line, type 100,000.
8. Press tab. Document total is now at P111,760 since VAT is added and a 2% discount is applied.
9. Click Add or press Enter. Click Yes when System Message prompts: You cannot change this
document after you have added it. Continue?
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Reversal of A/P Invoice
If a document is added in error, has become invalid, or has no concrete transactions associated
with it, you can cancel the document but still store it in the database.
1. To cancel a document, look for the A/P Invoice that needs to be cancelled.
2. On the lower right of the window, click Copy to
3. Select AP Credit Note.
4. On the A/P Credit Note window, Click Add.
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View the Journal Entry made by the A/P Credit Memo, it is the reversal of the entry made in the A/P
Invoice.
To view Purchase Journal

Go to (1) Financials > (2) Financial Reports > (3) Accounting > (4) Transaction Journal Report > (5) On the
Dropdown list of the Original Journal, select AP Invoice > (6) Click OK.
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Exercises
For exercises regarding Purchase Journal, refer to Exercise 5.7 to 5.9 of the Exercise Workbook.
Page 40 of 58
Special Journal (Disbursements)

Disbursements Journal
Cash disbursements occur in business when a company makes a payment. A number of
different transactions can incur a cash disbursement. Companies record these transactions, as every
disbursement results in a lower cash balance. Disbursements will either result in a use or exchange of
assets. Many companies report disbursements in a separate accounting journal.
Companies usually will maintain a cash disbursement journal as part of their general ledger.
Frequent cash disbursements can quickly fill the general journal, resulting in this subunit of the overall
accounting ledger. Only cash disbursements go in this journal. Companies that initially purchase goods on
credit will record the entry into the purchases journal. Once the payable is due, the company must
disburse cash. This entry is part of the cash disbursements journal.
Outgoing Payments in SAP Business One

Use this window to create a record each time the company issues a payment to a customer,
vendor or any account. The outgoing payment can be created for the following payment means:
a. Cash
b. Check
c. Credit Card
d. Bank Transfer
Once the outgoing payment is added, an appropriate journal entry is created. When creating an
outgoing payment to clear (fully or partially) a specific document or transaction, an internal
reconciliation automatically takes place.
Payment of Invoice from Suppliers
Example: The enterprise paid the amount due to Goodyear amounted to 111,760 via Bank Transfer
with Reference Number PYMNT121
To access, go to (1) Banking > (2) Outgoing Payments > (3) Outgoing Payments.
4. Outgoing Payment window will appear. In the Code field, click the Selection List and choose
Goodyear.
5. Set the date to date today.
6. Select the invoice you would pay.
7. Select the payment means by clicking the icon in the toolbar or right-click in the outgoing
payments window and choose the Payment Means
8. In the Payment Means window, click on Bank Transfer tab.
9. Input the date today as the transfer date and the reference code.
10. Right-click in the amount and choose Copy Balance Due.
11. Click OK on the Payment means window.
12. Click Add on the Outgoing Payments window.
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To retrieve the journal entry made in Outgoing Payment:
13. Still in Outgoing Payment window, click the Last Data Record icon in the toolbar.
14. To view the journal entry made, click the golden arrow after Transaction No.
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Payment of Expenses
Example: Payment was made in cash to the City Treasurer, amounting to P4,000 for licenses and
registration fees.
To access, go to (1) Banking > (2) Outgoing Payments > (3) Outgoing Payments.
4. From Supplier, click Account.

5. Set the dates to date today.
6. In the first line of the table, under the column GL Account, click the field so that a selection list
icon will appear. Click the selection list so that a list of GL accounts will appear. Select Tax and
Licenses.
7. Type 4,000 (no currency) under the Net Amount field of the same line.
8. Select the payment means by clicking the icon in the toolbar or right-click in the outgoing
9. Choose Cash tab.

10. On the G/L Account field, look for Cash on Hand.
11. Right click in the Total field and choose Copy Balance Due.
12. Click OK on the Payment Means window.
13. Click Add on the Outgoing Payments window. A system message will appear: You cannot
change this document after you have added it Continue? Click Add.
To retrieve the journal entry made in Outgoing Payment:
14. Still in Outgoing Payment window, click the Last Data Record icon in the toolbar.
15. To view the journal entry made, click the golden arrow after Transaction No.
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Exercises
For exercises regarding Disbursement Journal, refer to Exercise 5.10 to 5.12 of the Exercise Workbook.
Page 44 of 58
Special Journal (Sales)

Sales Journal
The sales journal lists all credit sales made to customers. Sales returns and cash sales are not
recorded in this journal. Entries in the sales journal typically include the date, invoice number,
customer name, and amount. Invoices are the source documents that provide this information. In its most
basic form, a sales journal has only one column for recording transaction amounts. Each entry increases
(debits) accounts receivable and increases (credits) sales.
Notice the dates and posting references applied to each entry in the illustration to the right.
Each day, individual sales journal entries are posted to the accounts receivable subsidiary ledger accounts
so that customer balances remain current. Customer account numbers (or check marks if customer
accounts are simply kept in alphabetical order) are placed in the sales journal's refer ence column to
indicate that the entries have been posted. At the end of the accounting period, the column total is posted
to the accounts receivable and sales accounts in the general ledger. Account numbers are placed in
parentheses below the column to indicate that the total has been posted.
Many companies use a multi-column (columnar) sales journal that provides separate columns
for specific sales accounts and for sales tax payable. Each line in a multi-column journal must contain
equal debits and credits. For example, the entries in the sales journal to the right appear below in a
multi-column sales journal that tracks hardware sales, plumbing sales, wire sales, and sales tax
payable. Individual entries are still posted daily to the accounts receivable subsidiary ledger accounts, and
each column total is posted at the end of the accounting period to the appropriate general ledger account.
Credit Sales Transaction

In SAP Business One, the document to use for credit sales transaction is A/R Invoice.
Example: The Enterprise rendered service to Mariah Carey amounting to P5,000 (VAT exclusive) to be
paid for in 30 days.
To access: Go to (1) Sales A/R > (2) A/R Invoice
3. Click the customer field. Click the selection list. Choose Mariah Carey.
4. Type the date today in the Posting Date field.
5. Click on the Accounting tab.
6. Set the payment term to n/30.
7. Click on the Contents tab.
9. In the first line of the table under the column G/L Account, choose Sales and Service Revenue.
11. Press tab. Document total is now at P5,600 since VAT is added.
12. Click Add or press Enter. Click “ Yes” when System Message prompts: You cannot change this
document after you have added it. Continue?
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To view the journal entry made in AR Invoice:
13. AR Invoice must still be open. Click the last data record icon in the toolbar.
14. Click the Accounting tab.
15. Click the golden or navigation arrow after Journal Remark.
Page 46 of 58
Page 47 of 58
Cash Sales Transactions

In SAP Business One, the document to use for cash sales transaction is A/R Invoice + Payment.
Example: The Enterprise rendered service to walk-in customer amounted to P3,000. VAT not yet
included.
To access it, go to (1) Sales A/R > (2) A/R Invoice + Payment.
4. In the first line of the table under the column G/L Account, choose Sales and Service Revenue.
6. Press tab. Document total is now at P3,360 since VAT is added.
7. Click Add or press Enter. Payment means window will open.
8. Click the Cash tab
9. In the Total field, right-click and choose Copy Balance Due.
10. Click OK and the screen for Payment Means will exit.
11. In the AR Invoice, click Add. Click “ Yes” when System Message prompts: You cannot change
this document after you have added it. Continue?
To view Sales Journal

Dropdown list of the Original Journal, select AR Invoice > (6) Click OK.
Page 48 of 58
Exercises
For exercises regarding Sales Journal, refer to Exercise 5.13 and 5.15 of the Exercise Workbook.
Page 49 of 58
Special Journal (Cash Receipts)

Cash Receipts Journal
A cash receipts journal is a special record used in accounting, usually by retailers. It involves
recording the details of sales in a specific manner. In turn, the cash receipts journal gathers together
the relevant information in a way that makes it easier to copy across, in aggregate, to traditional
double-entry accounts.
Incoming Payments in SAP Business One

Use this window to create a record each time your company receives a payment from a customer,
vendor or account. The incoming payment document can be created with the following payment means:
a. Cash
b. Check
c. Credit Card
d. Bank Transfer
Once the incoming payment is added, an appropriate journal entry is created. When creating an
incoming payment to clear (fully or partially) a specific document or transaction, an internal
reconciliation automatically takes place.
Example: Mariah Carey settled P 5,600.00 through cash.
To access, go to (1) Banking > (2) Incoming Payments > (3) Incoming Payments.
4. In the Code field, click the Selection List and choose Mariah Carey.
5. Select the invoice to be paid.
6. Select the payment means by clicking the icon in the toolbar or right-click in the incoming
7. Click the Cash tab.
8. In the Total field, right-click and choose Copy Balance Due.
9. Click OK and the screen for Payment Means will exit.
10. Click Add. A system message will appear: You cannot change this document after you
have added it Continue? Click Add.
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To view Receipts Journal

Dropdown list of the Original Journal, select AR Invoice > (6) Click OK.
Exercises
For exercises regarding Cash Receipts Journal, refer to Exercise 5.16 and 5.17 of the Exercise Workbook.
Page 51 of 58
B. General Ledger
This report enables you to generate a list of journal entries posted to the company database
according to various criteria.
Generating the General Ledger Report

Go to (1) Financials > (2) Financial Reports > (3) Accounting > (4) General Ledger
5. The General Ledger – Selection Criteria will appear. Uncheck Business Partner since this would
refer to Subsidiary Ledgers of all customers and vendors.
6. The Accounts must be checked.
7. Click x between # and Account.
8. Enter the desired posting date range.
9. Click OK.
10. General Ledger window will appear. Click the Preview button on the tool bar to produce the
report.
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C. Trial Balance
A trial balance is a book keeping or accounting report that lists the balances in each of an
organization's general ledger accounts. (Accounts with zero balances will likely be omitted.) The debit
balance amounts are listed in a column with the heading "Debit balances" and the credit balance amounts
are listed in another column with the heading "Credit balances." The total of each of these two columns
should be identical.
In a manual system a trial balance was commonly prepared by the bookkeeper in order to
discover whether math errors and/or some posting errors were made. Today, bookkeeping and
accounting software has eliminated those clerical errors. This means that the trial balance is less important
for bookkeeping purposes since it is almost certain that the total of the debit and credit columns will be
equal.
However, the trial balance continues to be useful for auditors and accountants who wish to
show 1) the general ledger account balances prior to their proposed adjustments, 2) their proposed
adjustments, and 3) all of the account balances after the proposed adjustments. These final balances are
known as the adjusted trial balance, and these amounts will be used in the organization's financial
statements.
Generating the Trial Balance Report

Go to (1) Financials > (2) Financial Reports > (3) Financial > (4) Trial Balance
5. The Trial Balance – Selection Criteria will appear. Uncheck Business Partner since this would
refer to Subsidiary Ledgers of all customers and vendors.
6. The G/L Accounts must be checked. Click x between # and Account.
7. Enter the desired posting date range.
8. If you check the Ignore adjustments option, you will produce an Unadjusted Trial Balance. If you
do not check the Ignore adjustments option, you will produce an Adjusted Trial Balance. If you
check the Add Closing Balances option, you will produce a Post-closing Trial Balance.
9. Click OK
10. The Trial Balance Report will be shown. Change to desired level from Level 1 to Level 10.
11. You can produce a pdf/crystal type of report by clicking the preview button on the tool bar.
Page 53 of 58
Page 54 of 58
D. Adjustments
Adjusting entries are journal entries made at the end of an accounting cycle to update certain
revenue and expense accounts and to make sure you comply with the matching principle.
The matching principle states that expenses have to be matched to the accounting period in which
the revenue paying for them is earned. There are four main types of accounts that need to be adjusted:
prepaid expenses, accrued expenses, unearned revenues and accrued revenues.
The two major types of adjusting entries are:
a. Accruals are for revenues and expenses that are matched to dates before the transaction has been
recorded.
b. Deferrals are for revenues and expenses that are matched to dates after the transaction has
been recorded.
Accruals
Accruals are adjustments for 1) revenues that have been earned but are not yet recorded in
the accounts, and 2) expenses that have been incurred but are not yet recorded in the accounts. The
accruals need to be added via adjusting entries so that the financial statements report these amounts.
Some accrued items for which adjusting entries may be made include:
• Salaries
• Past-due expenses
• Income tax expenses
• Interest income
• Unbilled revenue
Deferrals
In accounting, this means to defer or to delay recognizing certain revenues or expenses on the
income statement until a later, more appropriate time. Revenues are deferred to a balance sheet
liability account until they are earned in a later period. When the revenues are earned they will be
moved from the balance sheet account to revenues on the income statement.
Some deferred items for which adjusting entries would be made include:
• Prepaid insurance
• Prepaid rent
• Office supplies
• Depreciation
• Unearned Revenue
Completing the Adjusting of Entries
To prevent inadvertent omission of some adjusting entries, it is helpful to review the ones from
the previous accounting period since such transactions often recur. It also helps to talk to various
people in the company who might know about unbilled revenue or other items that might require
Page 55 of 58
adjustments.
How to record adjusting entries

The steps in recording of adjusting entries is almost the same with recording normal journal entries except
that you have to check the Adjusting Transactions (Period 13) for the system to recognize the entry as an
adjusting transaction.
Exercises
For exercises regarding Adjusting Entries, refer to Exercise 5.19 to 5.21 of the Exercise Workbook.
Page 56 of 58
E. Financial Statements
Financial Statements
Navigate the system for the list of journal entries made through the document Journal Entry.
Go to (1) Financials > (2) Financial Report > (3) Financial > (4) Balance Sheet/Profit and Loss Statement
5. When Balance Sheet/Profit and Loss Statement/Cash Flow Report
– Selection Criteria window appears, enter the desired range dates
6. Click OK.
You can produce a pdf/crystal type of report by clicking the preview button on the tool bar.
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F. Closing Entries
To access:
Go to (1) Administration > (2) Utilities > (3) Period End Closing.
4. When Period End Closing – Selection Criteria window appears Enter the following:
i. Period – 20XX
ii. From 20XX-01
iii. To 20XX-02
iv. Retained Earnings Account – Aquino, Capital
v. Period-End Closing Account – Income Summary
5. Click Execute
6. In the period end closing windows, input the value date and document date: closing date,
usually end of year
7. Click APPROVED or click the check boxes (to close nominal accounts to Aquino, Capital)
8. Click Execute
To generate the closing entries made:
a. Go to Financials > Financial Report > Accounting > Transaction Journal Report.
b. When Transaction Journal Report – Selection Criteria window appears, choose Closing
Balance in the Original Journal field.
c. Enter the desired range dates
d. Click OK.
Page 58 of 58

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SAP Business One Cloud – Fundamentals of Accounting

Editing of Chart of Accounts ................................................................................................................. 25

Chapter 1: SAP on Cloud Platform

At the end of this chapter, students will be able to:

Types of Cloud Deployment

Huawei Cloud Platform

Capabilities and User Experience

• Location Independence - resources can be accessed anywhere (except on limitations set by

• Multi-Tenacity - resources are shared amongst a large pool of users

• Reliability - dependable accessibility of resources and computation

• Scalability - dynamic provisioning of data helps in avoiding various bottleneck scenarios

• Ease of Maintenance - users (companies/organizations) have less work in terms of resource

SAP Business One

At the end of this chapter, students will be able to:

5. Select the company that will be provided by your instructor.

Branch User ID Password Branch User ID Password Branch User ID Password

User and Password Maintenance

Branch Name Setting

Chapter 2: Introduction to Fundamentals of Accounting

Brief History of Accounting

Types of Business Organizations

Double Entry Bookkeeping

Basic Accounting Principles

Computerized Accounting System

Special Features of Computerized Accounting

Advantages of Computerized Accounting

8. Minimizing Mathematical Errors

Accounting and SAP Business One

SAP software is:

Chapter 3: Chart of Accounts

Balance Sheet Income Statement

SAP CHART OF ACCOUNTS

Balance Sheet Accounts

Profit and Loss Accounts

Viewing of Chart of Accounts

Color Coding of SAP B1 Chart of Accounts

Active Account – only active accounts can be posted in SAP

Control Account – these accounts are already connected to

Editing of Chart of Accounts

Add: A142000 Prepaid Rent

A143000 Office Supplies

Go to (1) Financials > (2) Edit Chart of Accounts to:

Chapter 4: Subsidiary Ledgers

What is the purpose of subsidiary ledgers?

To access subsidiary ledgers:

7. Click the link arrow beside the Account Balance field.

Chapter 5: Accounting Cycle

Cash Receipts Journal

Cash Disbursements Journal

Manual Journal Entry

Dr. Office Equipment 11,000

Go to (1) Financials > (2) Journal Vouchers

Transaction Journal Report

Special Journal (Purchase)

Procurement under SAP Business One

To access: Go to (1) Purchasing A/P > (2) A/P Invoice

Reversal of A/P Invoice

To view Purchase Journal

Special Journal (Disbursements)