Question

Computerized Accounting, IN THE CLOUD, Microsoft Dynamics GP 2016 8TH EDITION

1. What is the purpose of the Appendix of your reference text book?

2. Explain the two categories of Error corrections.

3. Give a brief explanation of how errors of the following transaction might be corrected or fixed:

a. credit sales might be corrected after posting

b. Adjust perpetual inventory records

c. To correct an employee error, after the payroll transaction has been posted

d. Receive goods from a purchase order, after it has been posted

e. Correcting a sales invoice after it has been posted.

4. How do you add an inventory item record using the item maintenance Main Window?

5. Give a brief explanation of how to perform the year-end closing procedures. What reports are generated.

Answer 1

Situations	Explanations
1. What is the purpose of the Appendix of your reference text book?	Appendix is given information related to the text, and it is mentioned in appendix because ithout such information the knowledge is complete although and non mentioning of such transaction will not impact on overall.
2. Explain the two categories of Error corrections.	Error correction by either posting reversal error in case of wrong entry is posted. Second method is where entry is not posted at all, same is rectified by posting original entry for the same. Third where Suspense account is created then suspense a/c to be charged to main account ( expenses A/c , ) appropriate account.
3. Give a brief explanation of how errors of the following transaction might be corrected or fixed:	3. Give a brief explanation of how errors of the following transaction might be corrected or fixed:
a. credit sales might be corrected after posting	Here Debtor Name may be charged to suspenses account on clearification same is charged to the appropriate Debtor in the books. This will not impact the books of the account but debtor ledger may be increased with such rectifications.
b. Adjust perpetual inventory records	where Inventory acconts get adjusted for Valuation purpose, Difference is Charged to P and L A/c. Such is actually a error in estimation.
c. To correct an employee error, after the payroll transaction has been posted	Correcting an employee error will not hit the monetary value of the Payroll transaction on Overall basis. It will only impact the Employee ledger on individual basis.
d. Receive goods from a purchase order, after it has been posted	Goods are received after entry is posted, Here Purchases are recorded but inventroy records on item wise is bifurcated only on the goods receipt. It will not hit the inventory account but different items of goods their quantity and value may get Hit.
e. Correcting a sales invoice after it has been posted.	Correction of Sale invoice same is required to be done by posting creditnote as this will able to encounter tax rate , ate, quantity wrongly charged, however if the debtor is need to be different then in that case, Sale entry need to be cancelled and another sale entry with correct debtor name to be posted.
4. How do you add an inventory item record using the item maintenance Main Window?	Click on " Inventory" -----Select Item------Look for the Suggested item to be Add------Attache the Suggested Items.
5. Give a brief explanation of how to perform the year-end closing procedures. What reports are generated.	Taking example of Trader, produce the Closure of Books, Inventory records, Purchase register and Sale register are matched. Trade Tax returns matched with the goods , and Tax payable are matched, Statutory tax payable in respect of payroll to be matched. Fixed Asset report for charging depreciation.