INSTRUCTORS MANUAL
INTRODUCTION TO MICROSOFT DYNAMICS™ GP 10.0:
FOCUS ON INTERNAL CONTROLS
TERRI E. BRUNSDON, CPA, JD
MARSHALL B. ROMNEY, PHD
PAUL JOHN STEINBART, PHD
P REFACE
This manual guides professors on implementing Microsoft Dynamics GP 10:0 (formerly Great
Plains) in the classroom. Introductory paragraphs describe topics by chapter, with solutions for
end-of-chapter materials appearing thereafter. Solutions for in-chapter exercises are located in
Appendix D of the text.
How Chapters Are Organized
The text is designed to teach accounting software from a cycle-based approached. The first
three chapters illustrate installing the software and sample database and navigating the
software. In Chapter 4, students are introduced to the first cycle, namely revenue. Remaining
chapters cover the expenditure and payroll cycles and conclude by illustrating the general
ledger and reporting system. GP Series covered in the text are the System Manager, Inventory
Control, Sales Order Processing and Receivables Management, Purchase Order Processing and
Purchasing, Payroll, and Financial.
•
Chapter 1: Level One illustrates installing the software, logging in and out of the
software, and attaching, detaching, backing up and restoring sample databases. This
level also introduces students to working in the software interface by practicing home
page navigation, transaction inquiry, and basic reporting. The GP Series installed with
the education edition of the software is also discussed. Level Two looks at decisions
impacting the purchase of computerized accounting software and GP and the
importance of adhering to software licensing and “rights of use.”
•
Chapter 2: Level One focuses on understanding the S&S sample company chart of
accounts. Students review the general ledger account framework used to create the
chart of accounts and identify departments. Illustrations also cover creating general
ledger accounts, printing the chart of accounts and trial balance reports, and opening
and closing monthly accounting periods. This level concludes with an illustration using
GP’s SmartList to export data to Microsoft Excel. Level Two looks at the database
management system’s role in coordinating transaction processing, GP Series integration,
and relational database concepts and terminology.
•
Chapter 3: This chapter focuses on GP security and internal control options affecting
the system. Level One looks at security installed during software installation, internal
control options for posting setup, the audit trial, and activity tracking. Level Two
illustrates configuring user software access and activity permissions as well as security
reporting.
Preface
iii
•
Chapter 4: This chapter focuses on inventory items used by the sample company and is
intended for readers of both levels. The chapter discusses setting up and pricing items.
It also illustrates assigning vendor to items, conducting a physical count, adjusting
inventory, and reporting.
•
Chapters 5 through 8: These chapters illustrate transaction processing and reporting
by cycle. Chapter 4 looks at the revenue cycle; Chapter 5 the expenditure cycle; and
Chapter 6 the payroll cycle. Chapter 8 concludes cycle based activities by performing
tasks that close the accounting period and report results. Level one in each chapter
focuses on task oriented processes such as capturing transactions, posting transactions,
controlling transaction posting, reporting, and closing the period. Students begin with
reviewing an activity diagram of the cycle, which becomes the roadmap for discussions
on cycle activities, threats, and controls. Level two looks at configuring Series setup
options that implement internal controls.
•
Appendix A repeats instructions in Chapter 1 covering backing up and restoring
databases. Appendix B provides tables illustrating company chart of accounts,
customers, vendors, inventory items, and employees. Appendix C contains instructions
on correcting posting errors. Appendix D contains solutions for in-chapter exercises
that appear throughout the text.
Introduction to Microsoft Dynamics GP 10.0: Focus on Internal Controls expands student skills
beyond basic transaction posting and typical reporting. Students explore issues that affect
compliance with internal control objectives such as setting software control options and using
control reports to monitor compliance. Each chapter exposes students to topics at two
different levels. Level One focuses on task oriented processes such as transaction entry,
controlling transaction entry, and reporting on activities performed in the cycle. Level 2 delves
deeper into Series setup by illustrating internal control options in the software that enforce
compliance with company internal control policies. Each chapter concludes with exercises and
questions that reinforce skills learned at both levels.
Stress to students that document numbers on transaction illustrations in the text may differ
from their results because such numbers are supplied by the software, thus are based on
student activity in the database. Furthermore, account balances illustrated also differ if
students practiced tasks in a database or failed to complete previous chapter exercises.
Although variations for these items may occur, no variations exist for illustrated dates;
general ledger accounts, customer, vendor and employee accounts; and transaction amounts.
The text comes with two identical sample databases, namely S&S, Incorporated and S&S, Inc
Project DB. The text uses S&S, Incorporated to illustrate chapter materials. Students can then
use the other database to complete end-of-chapter materials and assignments. Using this
approach, students can feel confident that practicing transactions while reading the text will
not affect the outcome of graded materials. The text also contains instructions for unloading
and coping databases to a removable drive so students can work at home or in the classroom.
iv Instructors Manual: Introduction to Microsoft Dynamics GP 10.0: Focus on Internal Controls
The authors have considerable experience implementing GP in a corporate environment and
the text is designed to incorporate such experiences. In our opinion, tasks requiring the most
assistance involve setting up software posting and Series internal control options because such
settings determine activity behind the keys such as where transactions posts, how transactions
are entered, and what control reports print to document transactions. The authors point out
software controls for data entry and transaction posting and illustrate control reports that
validate data entry.
Finally, we all make mistakes when posting transactions. It is important that such mistakes be
corrected with the right procedures. Appendix C of the text illustrates correcting posting
errors.
The symbol on the left appears in this solutions manual to denote information about
integrating Introduction to Microsoft Dynamics GP 10.0: Focus on Internal Controls with
supplemental materials from Marshall B. Romney and Paul John Steinbart, Accounting
Information Systems, (11th ed., Pearson Prentice Hall, 2009) or a comparable text.
Warning on reattaching databases in the lab.
If you unload your databases and leave them in a lab folder, you may encounter a
permissions error when trying to reattach databases. To correct this error, copy
the databases to a different folder on the lab machine’s hard drive or to a
removable drive and recopy back into the original lab machine folder. This
procedure seems to clear a data access permissions issue created by SQL server
when users are not administrators on the machine (i.e., you are not an
administrator on a machine used in a school lab).
Information on database expiration.
GP stores the date the user attaches original databases to the software. This date
then triggers the 120 day evaluation period. If databases are subsequently
unloaded and reattached from the student CD then the 120 day expiration date
resets.
FOR PROFESSORS ONLY
A batch file and instructions for resetting the expiration date without unloading
databases can be downloaded from the instructor website for the text.
T ABLE
OF
C ONTENTS
P R E F A C E ...................................................................................................................................... ii
Chapter 1 Installing and Using Dynamics GP .............................................................................. 1
Level One Solutions ............................................................................................................... 2
Level Two Solutions ............................................................................................................... 5
Chapter 2 The S&S Company Database ...................................................................................... 6
Level One Solutions ............................................................................................................... 7
Level Two Solutions ............................................................................................................. 15
Chapter 3 Internal Controls and GP Security ............................................................................ 19
Level One Solutions ............................................................................................................. 20
Level Two Solutions ............................................................................................................. 24
Chapter 4 Inventory Control Series .......................................................................................... 28
Level One and Two Solutions............................................................................................... 29
Chapter 5 Revenue Cycle & GP Sales Series ............................................................................. 33
Level One Solutions ............................................................................................................. 34
Level Two Solutions ............................................................................................................. 45
Chapter 6 Expenditure Cycle & GP Purchasing Series .............................................................. 52
Level One Solutions ............................................................................................................. 53
Level Two Solutions ............................................................................................................. 57
Chapter 7 Payroll Cycle & GP Payroll Series ............................................................................. 59
Level One Solutions ............................................................................................................. 60
Level Two Solutions ............................................................................................................. 63
Chapter 8 Financial Reporting and GP Financial Series ............................................................ 65
Level One Solutions ............................................................................................................. 66
Level Two Solutions ............................................................................................................. 68
Chapter 1
I NSTALLING
GP
AND
U SING D YNAMICS
The beginning of Chapter 1 illustrates installing the software and attaching company databases.
There are also instructions for detaching and copying databases so that students can port work
between school and home. This chapter also includes instructions for backing up and restoring
company databases.
Level one orients students to using the software and explains using sample company databases.
Students are cautioned on the importance of using correct dates on transactions and that the
software’s system date will be used as the default transaction date. Consequently, students
practice changing the system date. This level has a table listing Series home pages and menu
commands, explaining how such items correspondence to using traditional accounting journals.
Students practice using hyperlinks and lookups to locate information and are oriented to
customizing the shortcut toolbar. This chapter also illustrates elements of a transaction
window, posting transactions, and differences between posting individual versus batched
transactions. Students are exposed to performing inquiries, running report, customizing user
preferences.
Level two explains decision factors affecting the purchase of accounting software and concludes
with a discussion on software licensing and “rights of use”.
Chapter 1 of this text may be read in conjunction with Chapters 1 and 2 of Romney and
Steinbart, Accounting Information Systems, which providing overviews on accounting
information systems and business processes. In addition, Chapter 19 of Accounting Information
Systems may help students understand factors affecting software purchases.
2 Instructors Manual: Introduction to Microsoft Dynamics GP 10.0: Focus on Internal Controls
Level One Solutions
True/False
____ 1. Transactions entered individually can be saved or posted. False. You can only post.
____ 2. Batch IDs are created by GP. False. These are created by the user.
____ 3. Item Number on the Sales Transaction Entry window refers to an inventory item
number. True.
____ 4. Employee accounts are master records. True.
____ 5. A paycheck issued to an employee is a transaction record. True.
____ 6. You can enter four different search criteria to locate a general ledger account by using
the binoculars located on the lookup window. True.
____ 7. Hyperlinks open other task windows. True.
____ 8. You can use the S&S, Inc. Proj DB to complete tasks that will be graded by your
professor. True.
____ 9. GP will treat transaction dates different from batch dates. True.
____10. Once you set the system date it remains the same even after exiting the software.
False. You must set the date each time.
Menu Navigation Questions
1. Name the home page and command for creating new vendor accounts.
Answer: Purchasing home page and Vendor command under Cards.
Explain to students that the text provides in-depth information on creating new vendors,
customers, general ledger accounts, etc. in subsequent chapters. Highlight that creating
such accounts is adding new master records, which is an authorization function. Therefore,
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Chapter 1: Installing and Using Dynamics GP
permission to access commands that create master records should be restricted to users
with authorization permission.
2. You need a summary trial balance report listing general ledger accounts. Name the home
page and command to open the Trial Balance Report window. List the name of the
summary report and print the report. Describe what information this report contains.
Answer: Financial home page and Trial Balance command under Report category. Report is
found under the Summary type and is named Trial Balance
This report displays a listing of all general ledger accounts along with account beginning
balances, changes, and ending balances.
Note to students that this information is useful for (1) tying out general ledger account
balances to external documents; (2) reviewing account balances for adjustment; and (3)
observing monthly transactions. Usually a summary TB is printed before printing detailed
reports are individual accounts requiring further investigation.
3. You would like to turn on toolbar shortcuts for the Purchasing Series. Explain how to
accomplish this.
Answer: Right click the toolbar and click Purchasing to turn on the checkmark. If this
checkmark is already present then performing these steps turns off the shortcuts.
4. An employee’s address has changed. Name the home page and command that allows you
to update the address.
Answer: HR & Payroll home page and Employee command under Cards.
5. You need to enter a purchase order. Name the home page and command that lets you
complete the task.
Answer: Purchasing home page and Purchase Order Entry command under Transactions.
Drill Down and Look Up Questions
6. Ashton requests that you inquire into the total sales for 2007 to customer Fillard’s, Inc.
a. Explain how you would open the window containing this information.
Answer: Sales home page and Yearly Summary command under Inquiry.
4 Instructors Manual: Introduction to Microsoft Dynamics GP 10.0: Focus on Internal Controls
b. What are total sales for Fiscal Year 2007 to this customer? (Hint: After selecting the
customer, change the Summary View, type in the year, and click Calculate.)
Answer illustrated next.
7. One of your suppliers, Canyon Cam, wants to know if S&S submitted payment for invoice
INV23453 sent in February of 2007. What is your response? (Hint: After you locate the
document open details on the transaction using the icon illustrated earlier in the chapter.)
Answer: The invoice was paid. Note: This question has a degree of difficulty. The student
can use the Transaction by Customer or Transaction by Document command on the
Purchasing home page and enter the document range before clicking Redisplay. They must
then expand the details on the transaction to see the unapplied amount of zero.
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Chapter 1: Installing and Using Dynamics GP
Level Two Solutions
1. Your client decided to purchase GP and wants your recommendations on the Series they
should initially purchase. List any questions you would ask the client that may impact your
recommendation.
Answer: Initial questions to ask are whether they outsource payroll and sell inventory? If
payroll is outsourced, then there is no current need to purchase the Human
Resource/Payroll Series of GP. The company can always add later if payroll is returned inhouse. If the client currently sells just services, then there is no need to purchase the
Inventory Series. Additionally, the client may not want to purchase the Sales Order Series
because this interfaces with inventory; however, they will need the Receivables
Management Series to process client invoices. Finally, the client needs to purchase the
System Manager, Financial, and Purchasing Series.
2. Your client seeks information on the number of GP user licenses to purchase. The company
owns a total of 25 laptops and desktops. The shipping department has three desktops that
will access GP during day and evening shifts. Ten full-time salespeople will need access to
GP on their laptops. Six full-time accounting clerks need to use GP, but these clerks work in
two shifts with three to a shift. Finally, the controller needs access to GP on his
workstation. What is the optimal number of user licenses that you recommend your client
to purchase? Will your recommendation permit your client to install the client software on
all machines it owns? Explain
Answer: The optimal number of user licenses would be 17 (3 shipping, 3 accounting clerks,
10 sales, 1 controller). The client can install on all machines regardless of the number of
licenses it purchases because client software can be installed on any machine owned by the
company.