Budgeting—Basic Data and Requirements Exercises

IMPORTANT
It is extremely important that you set up and work within your own company to maintain your data integrity. If you work within any other company, your exercises will not function as intended and the data of other students might be affected. Predictable exercise results require that your data is isolated in your own company.

Main Exercises

Chart of Accounts

Accounts

Purpose: The purpose of this portion of the exercise is to ensure that the accounts and code parts are entered and are valid for budgeting.

Windows:
Account

  1. Query for accounts 6090 and 3014. You will use these accounts for budgeting. 
  2. If these accounts do not show up in the query results, enter these accounts and name them as follows:

Code Part Requirements

Purpose: The chart-of-accounts segments enable you to distinguish between the budgeting requirements and posting requirements. These requirements may be, but are not necessarily, the same. If they are the same, you can generate reports showing both budgeted and actual amounts for the same chart of accounts.

Windows:
Account

  1. Query for the accounts entered above.
  2. Click the Code Part Demands tab. From the appropriate code-part lists, select the values shown in the table below:
    Code Part Value
    Cost Center Mandatory
    C Can
    D Can

  3. Save your changes.

  4. Click the Budget Code Part Demands tab. Enter the same values as above. 

  5. Save your changes again.

Code Part Segments 1

Purpose: The purpose of this portion of the exercise is to show you how to enter three cost centers and to verify that they are ready for budgeting.

Windows:
Code Part Values

  1. Populate the window. 

  2. Click New, and enter the cost centers listed in the table below, if they were not previously entered.

    Cost Center Description
    101 Accountancy
    201 Sales Administration
    202 Sales PR

Note: Verify that your valid-from date is the earliest date of your budgeting year. For example, if you are preparing a budget for the year 2000, verify that the cost center is valid from January 1, 2000.

  1. Save your changes.

Code Part Segments 2

Purpose: The purpose of this portion of the exercise is to show you how to enter two projects and to verify that they are ready for budgeting.

Windows:
Define Code String
Project Groups
Project

  1. Open the Define Code String window and populate all code strings. Open up a code part for project accounting as described in the table below.

Code Part Code Used Code Part Function Logical Code Part
F Yes Project Accounting Project
  1. Save your changes.
  2. Open the Project Groups window. Enter two project groups, using the information in the table below.
Project Group Project Type
R&D Capitalize Rev/Exp
MARKETING No Capitalization

  1. Save your changes.

  2. Open the Project window and populate with all projects. Enter the information in the table below, if it has not already been entered. 

    Project ID Description Project Group Project Type
    F1-2003R Racing Car M3 R&D Capitalize rev/exp
    F1-2003M Racing Car PR MARKETING No capitalization
  1. Save your changes, and verify that your valid-from date is the earliest date of your budgeting year. For example, if you are preparing a budget for the year 1999, verify that the project is valid from January 1, 1999.

Accounting Periods

Purpose: The purpose of this exercise is to verify that all accounting periods for the years 2000 through 2003 are available and are open for a particular user group.

Windows:
Accounting Periods

  1. Open the window and query for year 2000.
  2. Select all lines from January 2000 to December 2000.
  3. Right-click and then click Create Periods for User Groups.
  4. In the User Group list, click AC.
  5. Click OK. The selected accounting periods are now connected to User Group AC and are ready for budgeting.
  6. Repeat step 1-5 for accounting year 2001 to 2003.