March

2011

TRAINING
FIN201 – Fundamentals Finance part Four-
Exercises

From Version 6.2

TRAINING FIN201 – Fundamentals Finance part Four- Exercises– 2/13

TABLE OF CONTENTS

TABLE OF CONTENTS...............................................................................................2

LEGEND....................................................................................................................... 4

PREAMBLE.................................................................................................................. 5

1. EXERCISE 1 – PAYMENT TERMS AND EARLY SETTLEMENT.......................6

1.1. Payment Terms................................................................................................... 6
1.2. Early Settlement.................................................................................................. 6

2. EXERCISE 2 – CREATE A BANK ACCOUNT....................................................7

2.1. General Ledger Account......................................................................................7
2.2. Create a new Journal Code.................................................................................7
2.3. Create a new bank account.................................................................................7

3. EXERCISE 3 - CREATE SUPPLIER AND CUSTOMERS INVOICES.................8

3.1. Create supplier Invoice........................................................................................ 8
3.2. Create customer Invoice......................................................................................8

4. EXERCISE 4 – PAYMENT & RECEIPTS + EARLY DISCOUNTS / LATE

CHARGES........................................................................................................... 9
4.1. Manual supplier payment – Late charge..............................................................9
4.2. Accept Receipts – Discount Allowed...................................................................9

5. EXERCISE 5 – MANUAL PAYMENT FROM A G/L ACCOUNT........................10

5.1. Create a new Payment Entry Transaction.........................................................10
5.2. Add an Address to the general Account............................................................10
5.3. Create a Payment.............................................................................................. 10

6. EXERCISE 6 – RECEIPT WITH ACCEPTED BANK CHARGES......................11

6.1. Payment Attribute.............................................................................................. 11
6.2. Invoice............................................................................................................... 11
6.3. Receipt.............................................................................................................. 11

7. EXERCISE 7– RECEIVE CASH IN A DIFFERENT CURRENCY TO THE

INVOICE............................................................................................................ 12
7.1. Invoice............................................................................................................... 12
7.2. Receipt.............................................................................................................. 12

8. EXERCISE 8 –CREATE AN EXPENSE CYCLE...............................................13

8.1. Training BP for expenses..................................................................................13
8.2. Link between the “Train” BPs and the user “Train”............................................13
8.3. Document Type................................................................................................. 13
8.4. Charge Code Parameters..................................................................................14
8.5. Expense Form Entry.......................................................................................... 14
8.6. Expense Form Posting......................................................................................14
8.7. Payment............................................................................................................ 14

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LEGEND
The following elements are used in the exercise booklet as “interface” indicators:

Common Data > BPs > BPs............This shows directions to a function from the general X3 menu (X3
menu path from standard Admin home page)
Tab
.............................................Indicates a tab in a multi-tab X3 function, such as Controls or
Financial in the Common Data > BPs > Customers function.
Field  Field Value  .................................Indicates a screen field and the value that should be entered (if
necessary)
Check Box........................................Shows a checkbox (or tick box) and its status
Button
.........................................Indicates an X3 button (located on the bottom part of the screen)
such as Create or Save or a toolbar button (top left icons) such as
New.
File > Print > List..............................This shows the path to a top menu option (top menu bar)

 Annotation:................................This is used to provide space for the student to write a result

(Order code etc.)

.......................................................Hint: This is used to highlight an interesting hint on X3

.....................................................Additional information on the process or data or parameters

addressed in the exercise

......................................................Exercise “quiz” question

.....................................................Warning!

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PREAMBLE
In much of the processes where common data is created (such as Customers or Products) the
exercise notes mention XXX in the data codes or designations. Replace that with your own
initials. This is to distinguish your data from other delegate’s data in case the servers are shared.

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1. EXERCISE 1 – PAYMENT TERMS AND EARLY SETTLEMENT

 You will be using legislation TRA and site T91.

1.1. Payment Terms

 Common data>BP tables >Payment terms

 Create a new payment term “EOM15” to collect 100% 15 days after End of Month for CHQ.
 Simulate with the appropriate button.

 Use an Alternative Payment Terms CRC  for Credit Card and a value of 75.
 Simulate with today’s date and a value of 50.
 Check the method and due date.

1.2. Early Settlement

 Check the DATDEP parameter for the TRA legislation and make sure it is set to “Open item due date”.
(General Parameters TRS option TDC)
 Ensure that DENCRG is set to TRCHG and DENDEP is set to TRESD.
 End

 In the A/P-A/R parameters check that the payment attribute TRESD is using Code ESC/REG 
 In the A/P-A/R parameters check that the payment attribute TRCHG is using Code AGIOS
 Set the profit code to 765000 and the loss code to 665000 for discount and the appropriate accounts
for charges (Loss = 661x)

 Common data > BP tables > Early discount – Late charge

 Create a new discount code “TRA” that allows 10% discount if paid earlier than 10 days before the due
date and charges 5% if the payment is 15 days greater than the due date.
 In the dimensions add ACCT-001 against CCT dimension type.
(To get the appropriate dimension when using the BPCIN and BPSIN functions, you must adapt the
default dimensions -Parameters > Financials > Accounting Interface > Default dimensions)

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2. EXERCISE 2 – CREATE A BANK ACCOUNT

2.1. General Ledger Account
 Common data >G/L Accounting tables >General > Accounts

 In the TRA & TRI ledger create a new account “Barclays Current Account”
 Account 512905 
 Currency    
 Variance type Balance Sheet
 Tax management Not Subjected

2.2. Create a new Journal Code

 Common data >G/L Accounting tables >General > Journal codes

 Journal  TR001  “Barclays Current Account”

 Type Treasury 
 In the controls grid add the TRA & TRI COA and enter your new account against them both.

2.3. Create a new bank account

 Common data >BP accounting Tables >Bank Accounts

 Code = TRBAB
 Description Barclays Current Account 
 Country GB 
 Bank ID number 209980 (Sort Code in UK- A unique code for this bank in this country)
 BIC Code 1234578  (Account Number)
 Company should be 900.
 In the Journals grid choose Bank as the type; your journal code. This should default the correct
account number.
 Accounting Code BNKCHG 
 Currency EUR 
 Create

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3. EXERCISE 3 - CREATE SUPPLIER AND CUSTOMERS INVOICES

3.1. Create supplier Invoice

 A/P-A/R Accounting >Invoicing > Supplier BP invoice

 Site T91 
 Invoice Type TRINV  for accounting date 15/11/2010
 Supplier EURFR022 ,
 Document reference = INV 12456
 Currency = EUR
 Select the payment terms you create in 1.1 EOM15
 Set discount area with your code TRA
 Set the payment approval Delayed
 On the line 1 enter account 607000 in the Legal column. The amount should be 1000 (-Tax)
1150(+Tax/ If UK rates have not been updated) EUR and use ACCT-001 in the Cost Centre dimension
type.
 Create

 Check the open item by using the button provided.

 If you are happy then Post and after a few seconds zoom to the journal.
(Check accounting tasks if no zoom available within 20 seconds)

3.2. Create customer Invoice

 A/P-A/R Accounting >Invoicing>Customer BP invoice

 Create a customer BP invoice in A/P-A/R Accounting

 Site T91 
 Invoice Type TRINV 
 For today’s date
 Customer ACTR001  , but change the default payment terms to Payment Terms EOM15 
 Enter TRA in the discount code.
 On the line 1 enter account 707000 in the Legal column. The amount should be 1000 and use
ACCT-001 in the Cost Centre dimension type.
 Create

 Check the open item by using the button provided.

 If you are happy then Post and after a few seconds zoom to the journal.
(Check accounting tasks if no zoom available within 20 seconds)

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4. EXERCISE 4 – PAYMENT & RECEIPTS + EARLY DISCOUNTS /

LATE CHARGES

4.1. Manual supplier payment – Late charge

 A/P-A/R Accounting >Payments >Payment/Receipt entry

 Select the payment transaction TRPAY

 Site T91 
 Pay for the supplier invoice created in point 3.1
 Currency EUR
 Bank = TRBN1

What do you notice? Why can’t you pick up the invoice created on 3.1?

If you want to pay this invoice what must you do? Change the pay approval to “Authorized to pay” using
the Open Items screen or modifying at the invoice level through the open items button.
Go back to the payment function
 In Payment/Receipt Entry choose the payment transaction TRPAY
 Enter the BP account EURFR022
 Choose the bank TRBN1
 Don’t enter any amount in the BP amount field and in the grid
 Select your invoice, using the open items Tab
 As the supplier is paid with a 50 days delay, charges are calculated
Example (date paid minus due date = 50 days/365* 5 %* Amount of the invoice (1150))

4.2. Accept Receipts – Discount Allowed

 A/P-A/R Accounting >Payments >Payment/Receipt entry

 Transaction TRRES
 Site T91 
 BP ACTR001 
 Current date
 Bank TRBN1
 Enter nothing in the grid or BP amount field
 Use the left list and the Open items Tab to pick up the invoice entered in 3.2.
 In the right hand grid two lines will again appear.
 Because the customer made a payment before the due date, he is granted with a 10% discount as set
in the TRA table.
Create Milestone To see what needs to be done next.
 Post

 Ignore the request for dates that appears. It will default to today’s date.
 Zoom to the journal that has been created and check the two different postings.

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5. EXERCISE 5 – MANUAL PAYMENT FROM A G/L ACCOUNT

5.1. Create a new Payment Entry Transaction

 Parameters >A/P- A/R Accounting >Payment entry transactions

 Transaction TRMCQ 
 Expense
 Bank
 Default payment attribute TRPAY 
 Payment Method will be cheque
 Active
 Fields that you require as a minimum are
 Bank
 Reference
 Header Description
 Cheque Number
 Bank Amount

 Bank and Cheque Number should be Mandatory

 In the Bank Posting section you need to choose Group entry STEP1 
 Discount group Payment 
 Journal Type Bank  (This uses the bank value from the control tab of the bank you choose for your
posting)

5.2. Add an Address to the general Account

In the training legal ledger (TRA) go to account 431000 and add an address

5.3. Create a Payment

 Using your new transaction type create a new payment
 Site T91 
 BP  blank
 Tab to the account field (no label).
 Enter account 431000 and tab off.

Your new address code should appear next to the account.

 Use your new bank TRBAB
 BP amount 25000 
 Enter the cheque number and tab through the grid line which should complete automatically.
 Create
 Post

 Zoom to the journal and check your postings are correct.

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6. EXERCISE 6 – RECEIPT WITH ACCEPTED BANK CHARGES

6.1. Payment Attribute
 Parameters >A/P- A/R Accounting >Payment attributes

 Create a new Payment Attribute – Called it BKACC

 Bank  Account
 Expense
 Create a new accounting code by drill down from the code field.
 Use account 627000 on line 1.

6.2. Invoice
 A/P- A/R Accounting >Invoicing > Customer BP invoice

 Create a new BP Customer invoice

 T91
 Current date
 Customer ACTR001 
 Amount –Tax = 2000€
 Use default terms
 CCT=COMM-001
 Creat and Post

6.3. Receipt

 A/P- A/R Accounting >Payments >Payment-Receipt entry

 Transaction TRRES
 We will assume that your bank (TRBAB) has taken 10.50 in bank charges.
 Choose the invoice you have just created and in the BP Amount use the full amount of the invoice.
 Leave line 1 of the grid with the complete invoice value.
 On line 2 enter your new payment attribute (BKACC) code and tab to the Amount field.
 Enter 10.50 and then tab to the cost centre dimension where you will need to choose a value if no
default dimension is already defined.
 Create

 Post

 Zoom to the journal and check your postings.

 You should have two normal lines and then two extra lines to post the charges between the expense
and the bank.

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7. EXERCISE 7– RECEIVE CASH IN A DIFFERENT CURRENCY

TO THE INVOICE

7.1. Invoice
 T91
 Accounting date = Current date
 Customer ACTR003 
 Currency GBP 
 Select account 707000  CCT=COMM-001
 £3000 net of tax
 £3450 including tax – Or £3600 (If the tax rate has been updated)
 Create

 Post

7.2. Receipt
 Transaction TRRES
 BP ACTR003 
 Bank TRBN1 
 Currency EUR 
 Enter the bank and currency before choosing the invoice from the left list
 Set the BP amount as € 4002 or 4176 according to the tax rate used.
 Choose the invoice and review the data in the grid. The amount is in GBP but the charged BPs
amount is in Euros.
 Create

 Post

 Zoom to the journal.

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8. EXERCISE 8 –CREATE AN EXPENSE CYCLE

8.1. Training BP for expenses

 Common Data > BPs > BPs

 Check that a TRAIN BP exists with the role of Miscellaneous BP.

 If not, create it.
 Select the Financial TAB and amend the accounting code “STD” so that both line 1 and line 8 are set
to 428100.
 Save

8.2. Link between the “Train” BPs and the user “Train”

 Parameters > Users > Users

 Select “Train” in the left list

 On the Tab Parameters, select the group EXP - Expenses
 With a right click drill to the details
 Update the parameter value EXPBPR with the BPs “Train”.

8.3. Document Type

 Parameters >Financials >Document types

 The Item type for the expense account requires a document type.
 Create a new document type TRCHQ by copying the NFCHQ type and amending the following
 Remove the legislation and payment method
 Default Journal TREXP  (Create if not available.)
 Create a new sequence number TREXP by copying the FRNDF one and changing the constant to
EXP and reduce the sequence number to 3 digits. Remove legislation.
 Add Simulation Journals to the category block.
 Save

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8.4. Charge Code Parameters

 Parameters >A/P – A/R Accounting >Expenses > Charge code

 Choose the dinner code and drill down into the STD accounting code.
 Ensure that every ledger has an account code by highlighting the first column and tabbing across.
 Set COMM-001 as default dimension for CCT Dimension type in the grid.
 Save

8.5. Expense Form Entry

 A/P – A/R Accounting >Expenses > Expenses form entry

 Using Period change the period to the current month.

 Change the COMM employee code to Employee TRAIN 
 On line one enter the site T91, expense code is dinner, quantity is 1, value - tax 45 and tax code
TR001.
 The dimension should be loaded automatically.

What do you notice about the amount you entered? Why?

8.6. Expense Form Posting

 A/P – A/R Accounting >Expenses > Expense posting

 Company 900 
 For TRAIN employee.
 Current month as the period.
 Generate Entries
 Document type TRCHQ 
Journal TREXP 

 The log will tell you of any errors.

8.7. Payment
 A/P – A/R Accounting >Payments > Payment / Receipt entry

 Transaction TRPAY
 Make a payment to TRAIN for the expense you have created.
 The item for payment will be in the grouped by due date left list.
 Create

 Post

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