Module 4: Company Setup Procedures Module Overview: Objectives

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MODULE 4: COMPANY SETUP PROCEDURES

Module Overview
The company setup windows in Microsoft Dynamics® GP are used to set
company parameters. These windows are also used to develop a database of
fields that are used in many modules such as shipping methods and payment
terms. Some company setups are optional. For example, if a business does not
use credit cards, or does not accept credit cards, then the business does not have
to set up credit cards in the system.

Objectives

The objectives are:

 Create a new company in Microsoft Dynamics GP.


 Identify log on options and related setups when accessing
companies.
 Set up a new company in Microsoft Dynamics GP.
 Establish the account format that is used for accounts in a company.
 Define, change and close fiscal periods.
 Specify company-wide settings.
 Set up shipping methods.
 Set up payment terms.
 Set up credit cards.
 Track Internet information and create custom links.
 Track Internet related information about master records in Microsoft
Dynamics GP.
 Identify the steps for users to email documents from Microsoft
Dynamics GP.
 Use Unified Communications to communicate with customers,
vendors, and employees.
 Set up the types of taxes that are required in different jurisdictions
for sales and purchases.
 Identify how Microsoft Dynamics GP calculates taxes for sales and
purchases in different areas of the application.

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Creating Companies
Information in Microsoft Dynamics GP is stored in a collection of tables in the
SQL database, frequently known as a company database. One company must be
created before a user can log on to the application. Companies are created by
using Microsoft Dynamics GP Utilities. If the lesson company is loaded, this meets
the requirement.

Create a New Company

To create a new company in Microsoft Dynamics GP, follow these steps.

1. Start Microsoft Dynamics GP Utilities.


2. Move past the Welcome window and in the Additional Tasks window,
select Create a Company and then click Process.

FIGURE 4.1: ADDITIONAL TASKS WINDOW

Note: To start Microsoft Dynamics Utilities, drag the DynUtils.set file in the
application folder on top of the Dynamics.exe file located in the same folder or
access the GP Utilities menu option and then click the Start menu in the Microsoft
Dynamics folder. If you use Windows® 7, right-click GP Utilities and then select
the Run as administrator option.

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Module 4: Company Setup Procedures
Create a Company

You can enter an ID for the company by using up to five characters. Specify the
name of the company that is being created. In the Microsoft Dynamics GP
application, DB /Company ID and Company Name are used for the company.
After this company is saved, the ID cannot be changed. The company name
appears on reports that are printed from the Microsoft Dynamics GP system.
Company information displays in the Company Setup window.

FIGURE 4.2: CREATE COMPANY WINDOW

Select Load Shipping Methods and Payment Terms to load the default
shipping methods and payment terms for this company. If this option is not
selected, then you must set up each shipping method and each payment term
that is used in the company.

Default Chart of Accounts

Select this option to load a default chart of accounts. To determine the default
chart of accounts to load, select a company type from the Business Type list and
an industry type from the Industry Type list. If you decide not to use a default
chart of accounts, then clear this option.

To create a chart of accounts, use the training about how to set up accounts that
is provided in the General Ledger course. Several default chart of accounts are
available in the system. They reflect the common accounting practices, and also
include the most frequently used account types for the industries.

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When you make changes after a default chart of accounts is copied for the
company, the data entry time is still significantly reduced by using a default chart
of accounts. Based on the business and the industry types selected for the
company, you should install the chart of accounts that best suits the company's
business requirements.

Copy Company Access

Copying company access is an optional step that can be used to speed up the
company setup. This feature is used to copy information about users. This
includes the user’s access and the specific security settings that are located on
the existing company that will be copied to the company that is being created. To
copy access to the company, select the Copy access from company check box,
and then select an existing company from the list.

Database Setup

Click Next on the Create Company window to open the Database Setup window.
The Database Setup window is used to assign a location for the Microsoft
Dynamics GP data and the log file for the database.

Refer to the Microsoft Dynamics GP Installation and Configuration course for


more information about how to create a company in Microsoft Dynamics GP.

Accessing Companies
As soon as a company is created in Microsoft Dynamics GP, the users who are
granted security access can log on to the company. The Welcome window fields
are used to enter user log on credentials. The Company Logon window fields are
used to designate the company or a user who wants access.

User Login

Use the Welcome to Microsoft Dynamics GP window to log on to Microsoft


Dynamics GP. To open this window, click the User ID in the lower-left corner of
the application.

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FIGURE 4.3: WELCOME TO MICROSOFT DYNAMICS GP WINDOW

This window also displays when Microsoft Dynamics GP is started. Select the
server that includes the Microsoft Dynamics GP database and then enter
your user name and password to access the application.

Select Remember user and password to log on to Microsoft Dynamics GP


automatically without having to use the Welcome to Microsoft Dynamics GP
window. You must restart Microsoft Dynamics GP after this feature is started.

If the password is changed for the user, the Welcome to Microsoft Dynamics GP
window appears and this option must be selected again. This field is available if
the Enable Remember User option is selected in the System
Preferences window.

Company Login

Use the Company Login window to access companies and to switch users in
Microsoft Dynamics GP. To open this window, click Microsoft Dynamics GP, and
then click User and Company.

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FIGURE 4.4: COMPANY LOGIN WINDOW

The Company Login window can also be accessed by clicking the company name
in the lower-left corner of the main window of the application. Click Change User
on the Company Login window to change users. Use the company drop-down list
to change companies. This window is also displayed after the Welcome to
Microsoft Dynamics GP window opens, when the product is started.

In Microsoft Dynamics GP, by using the Company Login window, users can switch
from one company to another company, or they can log on as a different user in
the same company without having to exit and re-enter the system.

If the Remember this company option is selected, the system remembers the
last company that the user logged on to in Microsoft Dynamics GP. This option is
available regardless of whether the Remember User feature is enabled in the
System Preferences window.

Users can change companies after they are logged on, by clicking Microsoft
Dynamics GP and then clicking User and Company.

System Preferences

Use the System Preferences window to start the Remember User options in
Microsoft Dynamics GP, to set the home page default options and to specify the
location of a SharePoint server. To open this window, click the Administration
series button, and then click System Preferences on the Setup content pane.

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FIGURE 4.5: SYSTEM PREFERENCES WINDOW

Enter the SharePoint URL of your Microsoft® SharePoint® Server to display the
Search box field in the Microsoft Dynamic GP application windows. Refer to the
product documentation for more information about how to start this feature.

You can also set some Email Preferences in the System Preferences window.
Select MAPI or Exchange as your email server type.

You can use MAPI or Exchange as the server type for email for the Microsoft
Dynamics GP desktop client. You can only use the Exchange type for email when
using the Microsoft Dynamics GP Web Client. Also, if you use a 64 bit version of
Microsoft Office, you must select Exchange as the server type to use the email
functionality in Microsoft Dynamics GP.

If you select Exchange, you receive a message that asks you to enter log on
information for Exchange every time that you send a document in email. It is
required to use Exchange 2007 Service Pack 1 or a later version with Exchange
Web Services, if Exchange is selected.

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You can decide to send Word documents in an email with password protection.
With this option selected, a password must be entered before the recipient of the
document can edit the document. You can select to automatically generate the
password for documents or assign a password. You are not given the password
when the password is automatically generated.

Select the Load To Do Reminders option to load reminders on each new user’s
home page by default. Select the Enable Remember User option to have the
Remember user and password option available in the Welcome to Microsoft
Dynamics GP window for each user. If the user selects this option in the Welcome
to Microsoft Dynamics GP window, and he or she uses the initial password that is
entered, then the user is automatically logged on the next time Microsoft
Dynamics GP is started. You can use this feature only when you use the desktop
client. This feature is not available for the web client.

User Date

Use the User Date window to select the application system date. To open this
window, click Microsoft Dynamics GP and then click User Date.

FIGURE 4.6: USER DATE WINDOW

The User Date window can also be accessed by clicking the user date that is
located in the lower-left corner of the main window of Microsoft Dynamics GP.

When the application is started, the default date is the current operating system
date. The user date displays on the main window and on each application
window's menu bar that is located in the application. This date also defaults in
the date fields that are located in Microsoft Dynamics GP.

To change the date, do the following:

 Enter a date by using the keyboard.


 Click the Browse buttons to advance or return to a date.
 Click the Calendar icon to select a date from a calendar.

You can view the company and the user information by clicking the expand icons
to the right side of the date that is displayed on the menu bar.

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Lab A: Create a New Company


Exercise Scenario

You have decided to set up a new company in Microsoft Dynamics GP for a


second business. Create the Family Health Center (FHC) company. Log on to the
company as the system administrator user (sa) to make sure that you can access
the company.

Note: The Family Health Center company is used in most of the remaining
labs in this module. The company is noted in each lab scenario.

High Level Steps


1. Start Microsoft Dynamics GP Utilities.
2. Select to create a new company.
3. Enter the information to create the company.
4. Log on to the new company, Family Health Center.

Detailed Steps
1. Start Microsoft Dynamics GP Utilities.
a. Click Start, and then click All Programs.
b. Expand the Microsoft Dynamics folder, and the GP 2013 folder,
and then click GP Utilities.
c. Click Yes to the question that asks whether you want to allow
changes and then start Microsoft Dynamics GP Utilities.

2. Select to create a new company.


a. Log on by entering the password (Pa$$w0rd) in the Password
field of the Welcome window, and then click OK.
b. Click Next on the utilities Welcome window and Next on the
Upgrade Microsoft Dynamics GP window.
c. On the Additional Tasks window, select Create a Company.
d. Click Process.

3. Enter the information to create the company.


a. Enter FHC in the DB / Company ID field.
b. Enter Family Health Center in the Company Name field.
c. Select the Load Default Chart of Accounts check box.
d. Select Corporation in the Business Type field, and then select
Medical/Dental in the Industry Type field.
e. Click Next.
f. Accept the default settings in the Database Setup window.

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g. Click Next.
h. Click Finish on the Confirmation window.

The installation usually requires about 15 minutes.

i. When the installation is complete, select Next on the Business


Intelligence Reports Setup window.
j. Click Next on the Company Setup Options window to set the
company up later.

4. Log on to the new company, Family Health Center.


a. Click Launch Microsoft Dynamics GP. Enter your password
(Pa$$w0rd) in the Password field, and then click OK.
b. In the Company Login window, select Family Health Center in the
Company field, and then click OK. The Family Health Center
company opens to the home page.

Setup Checklist
Use the Setup Checklist window to help set up the Microsoft Dynamics GP
application. To open this window, click the Administration series button, and
then click Setup Checklist on the Setup content pane.

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FIGURE 4.7: SETUP CHECKLIST WINDOW

Use the Setup Checklist window to do the following:

 Track setup steps that are required in the Microsoft Dynamics GP


application.
 Assign setup tasks to users.
 Track complete and incomplete setup tasks.

To access setup windows, double-clicking a task or select a task, and then click
Open. This window lists setup tasks to complete in a recommended order. The
setup checklist is a graphical display of the setup tasks that must be completed
when Microsoft Dynamics GP is being set up.

Click the plus sign (+) that is in front of the setup task to expand the task, or click
the minus (-) sign to collapse the task. Also use the arrow keys on the keyboard
to expand and collapse the tree view together with the Collapse All Nodes and
the Expand All Nodes icons that are located in the left corner of the window list.

Task Status Options

The Setup Checklist window is used as a central location to track and organize
the setup tasks and the company’s requirements. The Setup Guide or Docked
Help appears with each item in the checklist to help streamline both the setup
process and the steps in Microsoft Dynamics GP.

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To start the setup process, double-click a task in the checklist or highlight an
option and then click Open on the Setup Checklist window. When a setup
window is closed, the system displays a message that asks for a status of the
selected setup window. By default, items are assigned a status of Not Started. A
tasks' status can also be changed by using the Status drop-down menu on the
Setup Checklist window.

If Complete is selected, the task on the setup checklist displays a check mark
next to it. The Account Format task shows this. User information attaches to the
step so that the system administrator can determine who to contact if there are
any issues that are related to the setup of the window.

If In Progress is selected, the task on the setup checklist displays the same as the
Account task does in the window illustration. If the company is not using a
feature such as unit accounts, select the Not Used option. Tasks with this option
resemble the Unit Account task in the illustration. Select the correct status and
then click OK.

Checklist Views

Setup tasks can be displayed based on the status that is assigned. For example, a
user wants to display any remaining setup tasks that the user must complete
before he or she uses Microsoft Dynamics GP. All tasks that are assigned to the
user and the tasks that have a status of In Progress or Not Started are displayed
on the checklist if My incomplete tasks is selected as the view. Several options
can be used to display tasks that are based on the task status and the user who is
assigned to the task.

Click the Assign button to assign a task to a Microsoft Dynamics GP user who is
set up in the User Setup window. Use the Assignment window to assign a task to
a user, and to enter a start date and a due date for the task. For a visual example
of this, refer to the Account task on the Setup Checklist window.

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Account Format
Use the Account Format Setup window to set the format of accounts for a
company. To open this window, click the Administration series button, and then
click Account Format on the Setup content pane.

FIGURE 4.8: ACCOUNT FORMAT SETUP WINDOW

When Microsoft Dynamics GP is installed, an account framework is specified. The


account framework applies to all companies in the system. Additionally, the
account framework represents the maximum length of accounts, the number of
segments, and the segment lengths for the companies that are set up in the
application. The account framework cannot be changed.

The account format is the structure of each account in a specific company. The
structure includes the length of the accounts, the number of segments, and the
segment lengths. Each company that is set up can have a different account
format, if the format is less than or equal to the maximums that are specified for
the account framework. Unlike the account framework, the account format for a
specific company can be changed by using this window.

You can enter accounts or modify the default chart of accounts by using the
windows on the Financial Cards menu. If a default chart of accounts is installed,
you do not have to set up an account format in that company.

Note: Account maximums are defined during the installation process. Use

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this window to define the account format for a specific company. The company's
account format must be less than or equal to the maximums that are defined
during the installation.

Length Restrictions

The account format must meet the following restrictions:

Microsoft Dynamics GP Maximum


Maximum Length 66
Maximum Number of Segments 10

These maximums apply to the account framework. If the maximums are set lower
than this during the installation, each company's account format cannot exceed
the defined limits. These limits are displayed in the Maximum Account Length
field, the Maximum Segments field, and in the Max. Length field.

Design the account format to meet both current and future needs. Changes are
limited after the accounts are set up and transactions are posted to the accounts.
Use the existing format of the current accounts in the old system, or enter a new
format. To create a new account format, plan the different categories of
information that each segment of the account represents.

For example, use four segments. Set up the account to include one segment each
for the division, the location, the department, and the account. The division might
identify the company that the division is a part of. The location might identify a
specific store in the company. The department might represent the departmental
divisions in the company. The account segment usually identifies the main
account number. For example, cash, or office expense.

Change the Account Format

Three options that are available to modify the account format, include the
following:

 Change the account format before the chart of accounts is entered.


 Shorten the account format if no transactions are entered. If accounts
are entered and no transactions are entered, clear the data from the
Account Master File, and then modify the account format and re-
enter the chart of accounts, if this is necessary.

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 Lengthen the account format at any time up to the maximum length
that is defined during the installation. If the account format is
lengthened after the chart of accounts is entered, spaces, and not
zeros, are inserted to the right side of the other digits or segments of
the existing accounts.

For an account of two four-character segments, the first segment can be


increased from four characters to five. The accounts still contain the same
characters, but with the added space: 6000_-1762.

Maximum Account Length and Segments

The Maximum Account Length field displays the maximum account length that
is defined during the installation. Use this number as a guideline when you define
the account format for the chart of accounts in a company. The combined total
length of all segments that are defined cannot exceed this number.

The Maximum Segments field displays the maximum number of segments that
are defined during the installation. Use this number as a guideline when you
define the number of segments that will be used in the chart of accounts. The
total number of segments in a company cannot exceed this number.

Account Length and Segments

Enter the total account length for the company in the Account Length field.
Enter a number that is equal to or less than the maximum account length that is
entered during the installation. The account length maximum that is defined
during the installation is displayed in the Maximum Account Length field.

Enter the total number of segments for the company in the Segments field. The
number that is entered must be equal to or less than the maximum number of
segments that are defined during the installation. The maximum segment
number that is defined during the installation is displayed in the Maximum
Segments field.

Define Segments

Define or change the Name for each segment of the account by using descriptive
names that show how each segment is used. You can change the segment names
at any time. The Max. Length column displays the maximum number of
characters that can be entered for each account segment. The fields are defined
during the installation.

Use the fields in the Segment Length column to enter the length of each
account segment. The length of each segment cannot be more than the
maximums that are defined during the installation, and the combined length of
the segments must equal the account length.

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Segment Display Width

Use the Display Width column to define the character width for each
account segment to make sure that the whole account number will appear.
Account numbers can contain numbers, letters, or spaces. If letters appear in an
account number, they usually require a wider field than the accounts that only
use numbers. A different display width can be selected for each segment, the
display width can be changed at any time, and then the segment is resized.

The selections include the following:

 Standard
 Expansion 1
 Expansion 2
 Expansion 3

Use these guidelines to determine the display width that is most suitable for the
selected segment, depending on the characters and digits that most likely will be
included in the segment.

The guidelines include the following:

 Standard - 0, 1, 2, 3, 4, 5, 6, 7, 8, 9, F, I, J, L, T, and Z
 Expansion 1 - A, B, E, K, P, S, V, X, and Y
 Expansion 2 - C, D, G, H, M, N, O, Q, R and U
 Expansion 3 - W

Main Segment ID

Select a main segment. The main segment is used to sort accounts on the
financial statements. A main segment usually indicates whether an account is one
of the following:

 Asset
 Liability
 Owners' equity account
 Revenue account
 Expense account

After the main segment is specified and the chart of accounts is entered, the
main segment can be changed. However, to do this, after the change is made, the
Check Links must be performed on the Account Master table.

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Separate With

Enter the symbol or the character that is used to separate the account segments,
even if the accounts only have one segment. You can use any character, such as a
dash or asterisk, a number, or a letter. Use a character that is not included in the
account number. The character appears between the account segments when the
accounts are displayed in Microsoft Dynamics GP.

Sorting and Printing

Click Sorting to open the Sorting Segments window to view the predefined and
user-defined sorting segments. The sorting segments are defined during the
installation and they cannot be changed. The sorting segments include account-
related information and appear in a sort by lists wherever account information is
used.

Click the Printer icon to print the Account Format report. The report includes the
information that is entered in the Account Format window.

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Lab B: Account Format


Exercise Scenario

Company: Family Health Center

Use the following information to set up the account format for the Family Health
Center company. The maximum length and the maximum segments are already
defined during the installation.

Note: If you receive a message that asks you to enter Manufacturing


registration keys when you log on to the Family Health Center, click Cancel or
close the window. The Manufacturing registration keys are not required for the labs
in this course.

Field Value
Account Length 9
Segments 3
Segment 1 ID and Length Location; Length of 3
Segment 2 ID and Length Account; Length of 4
Segment 3 ID and Length Product; Length of 2
Main Segment ID Account
Separate with -

High Level Steps


1. Use the Account Format Setup window to set up the account format
for the Family Health Center.

Detailed Steps
1. Use the Account Format Setup window to set up the account format
for the Family Health Center.
a. To open the Account Format Setup window, click the
Administration series button, and then click Account Format
on the Setup content pane.
b. Enter 9 in the Account Length field.
c. Enter 3 in the Segments field.
d. Enter Location in the Name field in the first line of the Segment
scrolling window.
e. Enter 3 in the Length field. Move to the second line of the
scrolling window.
f. Enter Account in the Name field.
g. Enter 4 in the Length field. Move to the third line of the scrolling

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window.
h. Enter Product in the Name field.
i. Enter 2 in the Length field.
j. Select Account in the Main Segment ID field. (Click OK if a
message to run check links appears.)
k. Enter a dash (–) in the Separate With field.
l. Click OK to save the settings, and then close the window.

Fiscal Periods
Use the Fiscal Periods Setup window to create a business calendar or fiscal years.
To open this window, click the Administration series button, and then click
Fiscal Periods on the Setup content pane.

FIGURE 4.9: FISCAL PERIODS SETUP WINDOW

On the Fiscal Periods Setup window, define the following:

 Beginning date of the fiscal year


 Ending date of the fiscal year
 Number of periods in each year

When you first create the years, decide whether to create historical years to track
historical information and then create the open year(s) the company is currently
working in.

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Note: When you post transactions to a historical year, the system posts two
transactions. One transaction is posted to the historical year and one transaction is
posted in the current year to update the beginning balances for an account. The
two transactions appear on the General Ledger Transaction Edit List and the
General Ledger Posting Journal.

The current year defaults as the current open year when opening the fiscal period
window for the first time. The default year is a calendar year with 12 periods. You
can override these year settings, if this is necessary.

Period Limits

With Microsoft Dynamics GP, you can define up to 367 periods for each year, and
there is no limit for how many years can be open at the same time. Additionally,
each year can have different periods and there is no limit for how many historical
years you can keep. However, transactions can be posted to only one historical
year and two open years.

The important limits to remember, include the following:

Microsoft Dynamics GP Limit


Number of Open Years Unlimited
Number of Current Periods 367

Calculating Fiscal Periods

If the first day and the last day of the fiscal year changes, click Calculate to
automatically recalculate the starting dates of the fiscal periods. Make sure that
you verify the dates because they might not match the dates the business uses.
For example, make changes if the calculated day corresponds to a weekend.
Click Calculate before you change the period names to avoid re-entering that
information when you change the number of periods.

When Microsoft Dynamics GP calculates fiscal periods, the last period might be
longer than the other periods. If the number of days in the year cannot be
divided equally by the number of fiscal periods, the number of days for
each fiscal period is rounded down to the nearest day and any additional days
are added to the last period. For example, if 52 is entered for the number of
periods, then periods 1 through 51 have seven days and period 52 has eight
days.

Note: If you change the first day or the last day of the fiscal year, or the
number of periods or the period dates after you post any General Ledger
transactions, use the Reconcile procedure to reconcile the General Ledger files for a
range of dates that include the changes.

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Historical Years

The Historical Year check box identifies years as open or historical. Select this
check box when you first define the fiscal periods for a historical year. Open years
become historical years automatically when the year-end closing is run.

The starting date and the ending date for the open years or the historical years
can be changed. However, you cannot enter dates that are in the most recently
closed historical year. The following table shows an example with 2018 as the
oldest open year and 2017 as the most recently closed year.

Year First day Last day Status


2017 01/01/2017 12/31/2017 Closed
2018 01/01/2018 12/31/2018 Open

To change the 2018 beginning date from 01/01/2018 to 11/01/2017, the ending
date must be changed for 2017. The new 2018 beginning date cannot be in the
2017 closed year.

Close Periods

Select the Closed check boxes to stop postings to previous periods in the current
year. This can be updated at the end of the fiscal period as part of the period-end
procedures.

To change a closed period, follow these steps.

1. Return to the Fiscal Periods Setup window.


2. Clear the closed period.
3. Post the transaction to record the change.
4. Select the period as closed again.

Note: Closing a period prevents users from posting transactions to the


corresponding period and series. Periods can be closed and reopened if necessary.

Mass Close

In Microsoft Dynamics GP, you have the option to close specific transaction
origins in a series for a specific period. For example, all Financial series origins can
be closed, except for the Reconcile Bank Statement origin, if a bank statement is
not already received. After the periods are closed, the transactions for the periods
are allowed only when the Reconcile Bank Statement window is used.

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FIGURE 4.10: MASS CLOSE FISCAL PERIODS WINDOW

Click Mass Close to open the Mass Close Fiscal Periods window. If a series is
closed on the previous window, all the origins are also selected as closed in the
Mass Close Fiscal Periods window. Accept the default settings, or close and, or
open individual origins.

Adjustment Periods

If a company must have an additional closing period for year-end adjustments,


set up two closing periods with the same date. Transactions post to the first open
period with that date. This creates a closing period for transactions and another
closing period for the adjustments that are recommended by your accountant.

Note: If multiple periods exist with the same starting date, then the General
Ledger reconciles and puts the transactions in the first open period that exists for
each transaction date. If all periods with the same date are closed, then the General
Ledger puts the transactions in the first closed period.

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Lab C: Defining Fiscal Periods


Exercise Scenario

Company: Family Health Center

The Family Health Center operates on a calendar year basis. Set up the following
fiscal years for the Family Health Center.

 Set up 2016 as an open year. Update the period names of the first
three monthly periods to January, February, and March.
 Create 2017 as an open year. Update the period names of the first
three monthly periods to January, February, and March.

Note: If the company posted transactions and General Ledger balances, you
must reconcile the General Ledger files after you change the Fiscal Period Setup. In
this example, the company is just created and no transactions are entered.
Therefore, you do not have to reconcile the General Ledger files.

High Level Steps


1. Set up 2016 as an open year by using the Fiscal Periods Setup
window.
2. Set up 2017 as an open fiscal year.

Detailed Steps
1. Set up 2016 as an open year by using the Fiscal Periods Setup
window.
a. To open the Fiscal Periods Setup window, click the
Administration series button, and then click Fiscal Periods on
the Setup content pane.
b. Enter 2016 in the Year field.
c. Enter 1/1/2016 in the First Day field.
d. Enter 12/31/2016 in the Last Day field.
e. Enter 12 in the Number of Periods field.
f. Click Calculate to define the periods.
g. Click in the Period Name field for period one, and then enter
January.
h. Click in the Period Name field for period two, and then enter
February.
i. Click in the Period Name field for period three, and then enter
March.
j. Click OK to save the fiscal year, and then close the window.

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Introduction to Microsoft Dynamics® GP 2013
2. Set up 2017 as an open fiscal year.
a. To open the Fiscal Periods Setup window, click the
Administration series button, and then click Fiscal Periods on
the Setup content pane.
b. Enter 2017 in the Year field.
c. Enter 1/1/2017 in the First Day field.
d. Enter 12/31/2017 in the Last Day field.
e. Do not select the Historical Year option.
f. Enter 12 in the Number of Periods field.
g. Click Calculate to define the periods.
h. Click in the Period Name field for period one, and then enter
January.
i. Click in the Period Name field for period two, and then enter
February.
j. Click in the Period Name field for period three, and then enter
March.
k. Click OK to save the fiscal year, and then close the window.

Company Information and Setup Options


Use the Company Setup window to enter the company's main address, phone
number and tax registration information, and activate security settings. To open
this window, click the Administration series button, and then click Company on
the Setup content pane.

FIGURE 4.11: COMPANY SETUP WINDOW

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Security does not function unless it is activated here in the Company Setup
window. The entries that are made in this window are used in the whole
accounting system.

Company Address Information

If a company has only one location, enter the address here. If a company has
several locations, enter the primary location. This address appears on the
documents that the company sends out, unless you select to print the address of
another location.

To enter the addresses of additional locations, click Address to open the


Company Addresses Setup window. The Address ID is a short name for the
location. After the ID is entered, you can enter the rest of the information for the
location, and then click Save. When you are finished, close the Company
Addresses Setup window.

User-Defined Fields

Text entered here can be put on company reports. For example, the company's
slogan or the names of its owners can be entered. These fields can be put on
reports by using Report Writer or other report writing tools.

Note: If your company is a member of the European Community, consider


including the EC Code in either of these User Defined fields.

Tax Fields

If the company is tax-exempt, enter the company's exemption number or


numbers in the Tax Exempt fields. Enter a tax registration number that is used by
the company in the Tax Registration field. For example, if a company is located
in Canada, enter the Goods and Services Tax registration number that is assigned
to the company by Revenue Canada. If a company is located in Europe, enter the
company's value-added tax (VAT) registration number.

Enter a default Sales Tax Schedule and a Purchase Tax Schedule. These
schedules can be displayed as default schedules in the Sales and Purchasing
transaction entry windows, depending on whether the shipping method is pickup
or delivery. If taxes are not defined, remember to access this window later. Refer
to the training on taxes for more information about how to up taxes for a
company.

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Note: If your company is part of the European Community, enter the


company's European Community country code in the User-Defined 1 field, and
the company's value-added tax (VAT) registration number in the Tax Registration
field. Start Enable VAT line analysis by selecting the check box on the options
window. Select the Calculate Terms Discount before Taxes check box to use the
VAT calculations.

Note: If your company is based in Canada, enter tax exemption numbers in


the Tax Exempt fields and the Goods and Service Tax (GST) registration number in
the Tax Registration field.

Note: If your company is based in Australia, enable GST for Australia/New


Zealand. This replaces the PPS calculations. Enter the GST number in the Tax
Registration field.

Note: If your company is based in New Zealand, enter the GST registration
number in the Tax Registration field. Enable GST for Australia/New Zealand.

Security

The Security check box is used to activate security in Microsoft Dynamics GP.
Select the check box to activate security features in the company. A message is
displayed that will notify you that security is active after you make the selection.

Select the Account Security check box in each company that is using account
level security. This option is available if Organizational Structures is being used.

Internet User Defined Setup

Use the Internet User Defined Setup window to define the labels that are in the
Internet Information window. Click Internet User Defined on the Company
Setup window to access this window.

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FIGURE 4.12: INTERNET USER DEFINED SETUP WINDOW

Select to track items, such as the following:

 Email addresses
 Home pages
 FTP sites
 Images
 Logins
 Passwords
 Other information about master records

This window defines the labels to use for the fields that are on the Internet
Information window. The actual information is tracked in this window. The
Internet Information window is discussed later in this training.

Company Setup Options

Click Options to open the Company Setup Options window. This window
includes setups that can be used in certain countries or regions. For example, the
VAT options are frequently used in Europe.

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Introduction to Microsoft Dynamics® GP 2013

FIGURE 4.13: COMPANY SETUP OPTIONS WINDOW

Specify whether to use the shipping method when the default tax schedule is
selected on a payables or receivables transaction.

Consider the following:

 Taxes are calculated at the point of exchange by using the shipping


method that is assigned to a transaction to determine the point of
exchange.
 The shipping method determines the tax schedule that is displayed
as a default schedule for the transaction.
 If the shipping method is changed from pickup or delivery, the tax
schedule also changes on the transaction. If this option is not
selected, depending on the type of transaction, the tax schedule that
is assigned to the vendor's purchase address or the customer's ship
to address is the default tax schedule.

If the Use Shipping Method when Selecting Default Tax Schedule option is
selected and the Shipping Method is set to Pickup, then the point of exchange
for tax purposes and the taxes that are applicable are charged according to the
supplier's location. If the option is not selected, then regardless of the shipping
method, the tax schedule assigned to the vendor's purchase address defaults.

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Calculate Terms Discount Before Taxes

Select this option to apply taxes only to the discounted amount, regardless of
when the payment is made.

Enable Intrastat Tracking

Select this option to enter Intrastat information that is required by the members
of the European Union. The Intrastat Trade Report is used to report this
information. For more information, refer to the product documentation that
is available on the Help menu in Microsoft Dynamics GP.

Separate Payment Distributions

When payment information is entered against an invoice in transaction entry in


Payables Management or Receivables Management, the accounts receivable
distribution and the accounts payable distribution is summarized. When this is
option selected, both distributions are displayed instead of the journal entry
consolidation that typically occurs.

Merge Options

These options are used to merge certain distributions in Purchasing and Sales in
Microsoft Dynamics GP. Access the Help files on this window to view examples of
the merge options that are available in the Purchasing and Sales series.

Calculate Tax Rebates

When you select this option, you do not have to pay the taxes on the full amount
if a portion is written off, or if there is a terms discount taken in Receivables
Management or in Payables Management. Select the Enable VAT line analysis
(value-added tax) option to use this feature. Refer to the product documentation
for more information about different tax options. This feature is typically used in
Germany.

Enable Posting Numbers in General Ledger

This option is used to provide additional information about the audit trail for all
journal entries that are posted to the General Ledger. Select this check box to
automatically assign a posting number to each transaction that is separate from
the journal entry number.

If this option is selected, the Display Posting Numbers Per field is enabled
and you can make a selection. When the posting numbers are displayed for each
period, and there are three transactions posted in January and three transactions
posted in February, the following appears: 1/1 1/2 1/3, 2/1, 2/2, and 2/3. When
the posting numbers are displayed for each year, the following appears: 1 2 3 4 5
6. If the transactions are deleted, the General Ledger can reconcile the posting
numbers.

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Enable GST for Australia

By default, this option will be selected if Australia is selected as the country when
the application is installed. When this option is selected, you can do the
following:

 Post a purchase tax detail to the tax detail account, the vendor
purchase account or the inventory account.
 Specify if tax invoices are required for each tax detail.
 Select Business Activity Statement Assignments for each tax detail.
 Identify an invoice as having received a tax invoice.
 View and print sales and purchasing transactions exclusive or
inclusive of tax.
 Print Recipient Created Tax Invoices for shipment/invoices and
invoices in Purchase Order Processing.
 Print Recipient Created Tax Invoices for invoices, finance charges, and
miscellaneous charges in Payables Management.
 Print Recipient Created Adjustment Notes for credit memos and
returns in Payables Management.
 Print tax invoices for sales/invoices, finance charges, debit memos
and service/repair documents in Receivables Management.
 Print Adjustment Notes for returns and credit memos in the
Receivables Management series.
 Print Tax Invoices for invoices in Sales Order Processing.
 Print Adjustment Notes for returns in Sales Order Processing.

Enable Tax Date

This option is used with Australian and New Zealand GST. Select to enter a tax
date as you enter documents during transaction entry. If you select this option, a
tax date field is available on the date entry windows and on the inquiry windows
for the Sales and Purchasing Series.

Enable Reverse Charge Taxes

Select to enter Reverse Charge Tax Detail IDs on the Tax Detail Maintenance
window. You can assign reverse charge tax details to transactions in the Sales
and Purchasing modules. Reverse charge tax information also prints on tax
reports.

Calculate Taxes in General Ledger

Select this option to calculate taxes in the General Ledger. Use the Tax Entry
window to enter taxable transactions that cannot be entered in the Sales or
Purchasing modules. For example, you can enter a taxable reimbursement to an
employee in the General Ledger instead of Payables Management.

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Allow Summary-Level Tax Edits

Select this option to allow edits to tax information in tax summary windows.
Summary tax edits do not change taxes at the detail level. If this option is clear,
you must edit tax information by using tax detail entry windows.

Require Tax Detail Totals to Match the Pre-Tax Amount

Select to require the pre-tax amount to fully distribute among the tax details of
the transaction. When tax details are required to match the pre-tax amount,
assign tax schedules so that taxes are calculated or enter a tax detail during
transaction entry so that the goods value matches the pre-tax amount.

When you select this option, you can enter a zero percent tax detail in the Tax
Detail for System Processes field for the receivables and payables documents
that are automatically generated in the system. The pre-tax amount is the sale or
purchase amount (less any trade discount) plus freight and miscellaneous
charges. If the module calculates terms discounts before taxes, the discount
available amount is deducted from the pre-tax amount.

In Receivables Management, when you select this option, enter a zero percent tax
detail for the receivables documents that are automatically generated.

Use this tax detail to do the following:

 Refund a check
 Consolidate customers
 Assess finance charges
 Handle non-sufficient funds

In Payables Management, when you select this option, you can enter a zero
percent tax detail for the payables documents that are automatically generated.
Use this tax detail to consolidate vendors and to assess finance charges. When
this option is selected, the total sale or purchase amount and a taxable sale or
purchase amount are equal to the pre-tax amount. The actual tax amount is zero
because of the zero percent tax detail, which allows the document to post
without error.

Specify Tax Details for Automatic Tax Calculation

Specify tax details to calculate the tax. If this option is selected, determine the tax
details that are assigned to a tax schedule in the Tax Schedule Maintenance
window, so that the taxes can be calculated. In the Tax Schedule Maintenance
window, you can select as many details as you want to calculate the tax in this
window. When this option is clear, all the tax details that are assigned to the tax
schedule determine the tax amount.

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Introduction to Microsoft Dynamics® GP 2013
Enable EU Transaction Tracking

Select this option to indicate whether a transaction is a European Union


transaction without having to use Intrastat Statistics. The vendor's or customer's
tax registration number appears on documents.

Enable DDR and European Electronic Funds Transfers

Select this option to enter electronic funds transfers for manual payments and
computer checks in Payables Management. Electronic funds transfer information
can be set up for checkbooks, vendors, and customers. When bank transfers are
entered, the checkbook cash-in-transit account is used instead of the cash
account. When this option is selected, fields and windows that are used for
Electronic Funds Transfers are available.

The European Direct Debits solution must be used for the electronic funds
transfer information that is entered in Receivables Management. The Enable DDR
and European Electronic Funds Transfer option cannot be selected if another
electronic funds transfer solution is being used.

Enable Canadian Tax Detail

Select this option to be able to select the tax detail posting account and to view
the amounts inclusive of tax in the Receivables Management, Sales Order
Processing, and Purchase Order Processing windows.

Exclude Tax in Inventory Cost when Tax is Included in Price

Select this option to exclude the tax amount from the cost of the item in
Inventory, even if the tax is included in the price of the item.

Withholding Vendor Fields

Enter a Withholding Vendor ID to enable withholding in the whole the system.


This will be the vendor (usually the taxing authority) to whom withholding is
remitted. A tax rate and file or reconciliation number can also be entered. Refer
to the product documentation for additional information about this topic.

Tax Detail for Receivables Processes

Enter a zero percent tax detail for the receivables documents that are
automatically generated in the system when the Require Tax Detail Totals to
Match the Pre-Tax Amount option is selected. This tax detail will be used to
refund a check, consolidate customers, assess finance charges, and to handle
non-sufficient funds.

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Tax Detail for Payables Processes

Enter a zero percent tax detail for the payables documents that are automatically
generated in the system when the Require Tax Detail Totals to Match the Pre-
Tax Amount option is selected. This tax detail is used when consolidating
vendors and assessing finance charges.

When this option is selected, the total sale/purchase amount and a taxable
sale/purchase amount equal the pre-tax amount. The actual tax amount is zero
because of the zero percent tax detail. This allows the document to post without
error. This option is available only when the Require Tax Detail Totals to Match
the Pre-Tax Amount option is selected.

Display Posting Number Per

Select the sequence number—either for the fiscal year or for the fiscal period—
that appears on inquiries and reports. This option is available only if Enable
Posting Numbers in General Ledger is selected.

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Introduction to Microsoft Dynamics® GP 2013

Lab D: Entering Company Information


Exercise Scenario

Company: Family Health Center

Enter the following information for the Family Health Center.

Field Value
Company Name Family Health Center
Address ID PRIMARY
Name Family Health Center
Contact Jane Doe
Address 123 Main Ave.
City, State and Zip Code Chicago, IL 60601

The Family Health Center has two locations. Click the Address button on the
Company Setup window to record the second address.

Field Value
Address ID NORTH BRANCH
Name Family Health and
Nutrition
Contact John Doe
Address 123 First Street N.
City, State and Zip Code Chicago, IL 60603

High Level Steps


1. Enter the company information for the Family Health Center.
2. Add the second location’s address information.

Detailed Steps
1. Enter the company information for the Family Health Center.
a. To open the Company Setup window, click the Administration
series button, and then click Company on the Setup content
pane.
b. Click OK to the warning message about HR and Payroll
registration issues.
c. Enter Family Health Center in the Company Name field.
d. Enter Primary in the Address ID field.
e. Enter Family Health Center in the Name field.

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f. Enter Jane Doe in the Contact field.
g. Enter 123 Main Ave. in the Address field.
h. Enter Chicago in the City field.
i. Enter IL in the State field.
j. Enter 60601 in the Zip Code field.

2. Add the second location’s address information.


a. Click the Address button to open the Company Addresses Setup
window.
b. Enter NORTH BRANCH in the Address ID field.
c. Enter Family Health and Nutrition in the Name field.
d. Enter John Doe in the Contact field.
e. Enter 123 First Street N. in the Address field.
f. Enter Chicago in the City field.
g. Enter IL in the State field.
h. Enter 60603 in the Zip Code field.
i. Click Save, and then close the Company Addresses Setup
window.
j. Click OK to close the Company Setup window.

Shipping Methods
Use the Shipping Methods Setup window to set up the shipping methods that
are used to deliver goods to a source and for the shipping methods that are used
by the vendors to deliver goods to the company. To open this window, click the
Administration series button, and then click Shipping Methods on the Setup
content pane.

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Introduction to Microsoft Dynamics® GP 2013

FIGURE 4.14: SHIPPING METHODS SETUP WINDOW

Default shipping methods are included with the accounting system. If they are
installed when a company is created, they appear in the lookup window when the
Shipping Methods Setup window opens.

Options that are available, include the following:

 Use the shipping methods as they are


 Modify shipping methods
 Delete shipping methods
 Create new shipping methods

Shipping Type

Select Use Shipping Method When Selecting Default Tax Schedule in the
Company Setup Options window if the taxes are calculated based on where
goods are transferred.

If this option is selected, the Shipping Type field is important for the taxes to
calculate correctly. The Shipping Type determines the tax schedule that defaults
when the sales and purchase transactions are entered.

The effect of the shipping type on sales and purchasing is described in the
following table:

Series Pickup Delivery


Sales (RM/IVC/SOP) Company Tax Schedule Customer Tax Schedule
Purchases (PM/POP) Vendor Tax Schedule Company Tax Schedule

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Module 4: Company Setup Procedures

Lab E: Set Up Shipping Methods


Exercise Scenario

Company: Family Health Center

The Family Health Center is approached by a new vendor who offers a delivery
service. The new vendor's prices are competitive and the prices can help the
Family Health Center save money. The salesperson, Dan Johnson, has left his
business card. Set up a shipping method of JDS for the new vendor, with a
shipping type of Delivery. The account is FHC0001.

FIGURE 4.15: BUSINESS CARD - EXAMPLE

High Level Steps


1. Set up the new shipping method for Johnson Delivery Service.

Detailed Steps
1. Set up the new shipping method for Johnson Delivery Service.
a. To open the Shipping Methods Setup window, click the
Administration series button, and then click Shipping Methods
on the Setup content pane.
b. Enter JDS in the Shipping Method field.
c. Enter Johnson Delivery Service in the Description field.
d. Select Delivery in the Shipping Type field.
e. Enter Johnson Delivery Service in the Carrier field.
f. Enter FHC0001 in the Carrier Account field.
g. Enter Dan Johnson in the Contact field.
h. Enter (312)-555-0101 in the Phone Number field.
i. Click Save to save the shipping method, and then close the
window.

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Introduction to Microsoft Dynamics® GP 2013

Payment Terms
Use the Payment Terms Setup window to set up the payment terms extended to
customers and that vendors extend to the company. To open this window, click
the Administration series button, and then click Payment Terms on the Setup
content pane.

FIGURE 4.16: PAYMENT TERMS SETUP WINDOW

Payment terms that are set up in this window appear in the Sales and Purchasing
transaction windows. Default payment terms are included with the system. If the
payment terms are selected to be loaded when the company is created, then the
payment terms appear when the Payment Terms Setup window is opened.

Note: Because payment terms can print on the sales and purchasing
documents, make the Payment Terms field appear the way it will be displayed on
the documents. The name assigned to the term does not affect the calculation.

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Module 4: Company Setup Procedures
Due

Specify when the full payment is due. Select one of the following methods to
determine due dates. If Net Days or Date is selected, enter the number of days
or the date when the payment is due.

The options include the following:

 Select Net Days if the payment is due by a specific number of days


after the invoice date.
 Select Date if the payment is due by a specific date.
 Select EOM (End Of Month) if the payment is due in full by the end
of the month that the purchase occurs in.
 Select None if the payment is not due on any specific date.
 Select Next Month if the payment is due on the twentieth of the
month following the document date.

The grace period for the date and the EOM terms are specified when the
customer and the vendor records are entered. For example, the Due date is EOM.
If the invoice date occurs on the twenty-sixth of the month, selecting EOM makes
the bill due on the thirtieth of the month. If the grace period is 5 days, the
payment is not due until the end of the following month.

Discount

Specify when the payment must be made to receive the discount that is located
on the Discount list. If Days or Date is selected, enter the appropriate number of
days or the appropriate date.

The options include the following:

 If there is no discount available, select None.


 If a discount is given when a payment is made within a number of
days after the invoice date, select Days.
 If the discount is given by a certain date following the invoice date,
select Date.
 If the discount is given when the payment is made by the end of the
month the invoice date occurs in, select EOM.

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Introduction to Microsoft Dynamics® GP 2013
Some common payment terms and descriptions to use, and an example of how
the discount date and the due date is calculated with each payment term, are
displayed in the following table:

Payment Term Days Date Disc. Disc. Trans. Disc. Due


Due Due Days Date Date Date Date

2% 10 Net 30 30 N/A 10 N/A 3/5 3/15 4/4


2% 10th Net 30 30 N/A N/A 10 3/5 3/10 4/9
2% 10 Net 30th N/A 30 10 N/A 3/5 3/15 3/30
2% 10th Net N/A 30 N/A 10 3/5 3/10 3/30
30th
2% 10/EOM N/A N/A 10 N/A 3/5 3/15 3/31
2% 5/EOM N/A N/A 10 N/A 3/23 3/28 4/30
Grace Per: 10

Discount Type

In the Discount Type field, base the discount on a percentage of the total
amount or a fixed amount, and then enter the appropriate percentage or
amount. The whole amount can be discounted, or the discount can be applied
toward any amount that appears on an invoice, such as tax or freight. Any
combination of amounts can be entered, depending on what the company allows
for a discount.

Calculate Discount On

The Calculate Discount On is used to calculate the discount for a combination of


items for the selected payment terms.

Select any combination of the following options:

 Sale/Purchase option to discount invoice items sold or purchased


 Discount option to apply payment terms discounts to other
discounts
 Freight option to discount freight expenses
 Miscellaneous option to discount miscellaneous expenses
 Tax option to discount taxes

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Module 4: Company Setup Procedures
Options

Grace periods can be used for payment terms that use a date or the EOM
payment terms. A grace period can be specified for each customer who is offered
date or EOM payment terms, or for each vendor that offers those terms.

To specify a grace period for customers, use the Customer Maintenance window.
To specify grace periods for vendors, use the Vendor Maintenance Options
window.

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Introduction to Microsoft Dynamics® GP 2013

Lab F: Set Up Payment Terms


Exercise Scenario

Company: Family Health Center

To encourage the company's best customers to pay early, you have decided to
offer these customers a 2 percent discount on only the sale amount of a
transaction if they pay within 10 days of the invoice date. Otherwise, the full
amount is due in 30 days. Other customers have to pay the net amount in 30
days. Create the required payment terms.

High Level Steps


1. Use the Payment Terms Setup window to set up the payment term
for the best customers.
2. Add the payment term for other customers.

Detailed Steps
1. Use the Payment Terms Setup window to set up the payment term
for the best customers.
a. To open the Payment Terms Setup window, click the
Administration series button, and then click Payment Terms on
the Setup content pane.
b. Enter 2% 10/Net 30 in the Payment Terms field.
c. Select Net Days in the Due field, and enter 30.
d. Select Days in the Discount field, and enter 10.
e. Select Percent in the Discount Type field, and enter 2.00.
f. Select Sale/Purchase in the Calculate Discount On field, and
then clear all other options, if any are selected.
g. Click Save to save the payment term.

2. Add the payment term for other customers.


a. Enter Net 30 in the Payment Terms field.
b. Select Net Days in the Due field, and then enter 30.
c. Select None in the Discount field.
d. Click Save to save the payment term, and then close the window.

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Credit Cards
Use the Credit Card Setup window to enter information about the credit cards the
company uses. To open this window, click the Administration series button, and
then click Credit Cards on the Setup content pane.

FIGURE 4.18: CREDIT CARD SETUP WINDOW

The cards entered here appear in the accounting system when the credit cards
are used. The credit cards can be accepted from customers, used by the
company, or both.

Accepted from Customers

Select Accepted From Customers if the card is accepted as payment from


customers. If the card is a bank card, select Bank Card, and then enter a
checkbook. Payments with bank cards are treated as check or cash payments. The
Checkbook ID identifies the checkbook that is used to track deposits that are
posted to this card.

If the card is a Charge Card, enter a General Ledger account such as Credit Card
Receivables. Payments made with charge cards must be submitted to the credit
card company and the reimbursement must be received, before the payment is
deposited in a bank account.

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Introduction to Microsoft Dynamics® GP 2013
Used by Company

If the card name is used to make payments, select Used By Company. Select
Credit Card if the credit card company bills monthly for purchases. Enter a
vendor for the credit card company. The credit card company acts as a vendor in
this instance. Payments that are entered with credit cards automatically create a
transaction for the credit card vendor.

If the card is a check card, select Check Card, and then enter a checkbook. When
purchases are made with a check card, the amount is automatically withdrawn
from the checkbook.

Note: Update or remove any of the credit cards, if this is necessary. Any
existing transactions that are paid by using the credit cards are not affected by the
changes.

Other Company Setups


Sometimes, company setup items are optional. This depends on the set up
features that are used in Microsoft Dynamics GP. Typically, credit cards and
payment terms are frequently used, while other features such as the setups
discussed here, are not used as frequently. Determine whether these features will
be used in the company before you complete the setups.

In Microsoft Dynamics GP, you can do the following:

 Enter comments
 Track bank information
 Enter and store Internet information
 Create and modify custom links

Bank Information

Use the Bank Maintenance window to track information about banks that are
used in Bank Reconciliation and other modules. To open this window, click the
Administration series button, and then click Bank on the Setup content pane.

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Module 4: Company Setup Procedures

FIGURE 4.19: BANK MAINTENANCE WINDOW

Typically, this information is required in Australia to record regular transactions.


However, this is an optional setup window for many companies that use
Microsoft Dynamics GP in other parts of the world. Enter the address, phone
number, transit numbers and any other bank branch information for the financial
institutions that the company does business with.

Note: This setup is necessary if you use the Payroll Direct Deposit
functionality or the Electronic Funds Transfer (EFT) functionality.

Comments

Use the Comment Setup window to enter comments that you can save and use
repeatedly when you print Sales Order Processing documents and purchase
orders in Purchase Order Processing. To open this window, click the
Administration series button, and then click Comments on the Setup content
pane.

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Introduction to Microsoft Dynamics® GP 2013

FIGURE 4.20: COMMENT SETUP WINDOW

Comments can also be added directly from the Sales Order and Purchase Order
Processing transaction windows.

Custom Links

Use the Custom Link Setup window to create, modify or copy custom links for the
following master records:

 Customers
 Vendors
 Items
 Salespeople
 Employees
 Checkbooks

Use custom links to start a new email message, display a webpage, open a
document, or open an external program. To open this window, click the
Administration series button, and then click Custom Link on the Setup content
pane.

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Module 4: Company Setup Procedures

FIGURE 4.21: CUSTOM LINK SETUP WINDOW

Create Tracking Number links that are based on the shipping method for a
document. These links track to the information that appears on the shipper’s
website. Create currency specific links that are based on the currency that is
selected. These links track to a website that shows exchange rate information.

Create checkbook and credit card links based on the checkbook that is selected.
These links track to the bank's online banking webpage. You can also link to the
same location for all values. For example, all checkbooks can be made to link to
the same online banking webpage.

Create/Modify Custom Links

Select New to open the Create/Modify Custom Link window to create a new link
or modify any existing link in the system.

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FIGURE 4.22: CREATE/MODIFY CUSTOM LINK WINDOW

Select any of the following prompts:

 Checkbook
 Credit Card
 Currency
 Customer
 Employee
 Exchange Rate
 Item
 Salesperson
 Tracking Number
 Vendor

Enter a description in the Custom Link Label field of the link that appears when
the ID field that it is assigned to is selected in a window.

Field Value and Internet Address

Select the field the custom link is associated to in the Field Value field. For
example, if the link is assigned to a checkbook, select the Checkbook ID that
uses the link. If all checkbooks use the same bank and the custom link applies to
all IDs, select the option for All field values. Access the link in all windows that
use the Checkbook ID field.

This option is available for the following prompts:

 Exchange Rate
 Currency
 Checkbook

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 Credit Card
 Tracking Number.

Enter the Internet address for the link that is being created in the Internet
Address field.

Note: When a custom link is created for some IDs such as a customer, the
link web address must be defined in the Internet Information window for the
customer before the link is created.

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Lab G: Set Up Custom Links


Exercise Scenario

Company: Family Health Center

Set up a custom link that is based on the document tracking number that goes to
the JDS website www.cpandl.com for the JDS shipping method. (This is a
Microsoft site that is used for the lab.)

Note: This lab uses the shipping method that is set up in a previous lab.
Therefore, the shipping method lab must be completed before you can perform this
lab. This is the last lab that will be completed in the Family Health Center
company.

High Level Steps


1. Set up the custom link for the tracking numbers for the new JDS
shipping method.

Detailed Steps
1. Set up the custom link for the tracking numbers for the new JDS
shipping method.
a. To open the Custom Link Setup window, click the
Administration series button, and then click Custom Link on
the Setup content pane.
b. Click New to open the Create/Modify Custom Link window.
c. Select Tracking Number in the Prompt field.
d. Enter JDS Delivery in the Custom Link Label field.
e. Select JDS in the Field Value field.
f. Enter www.cpandl.com in the Internet Address field.
g. Click Save, and then close the window.

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Internet Information
Use the Internet Information window to track Internet-related information. To
open this window, click the Administration series button, and then click Internet
Information on the Setup content pane.

FIGURE 4.23: INTERNET INFORMATION WINDOW

In Microsoft Dynamics GP, you have the option to track Internet addresses and
webpages for the following records:

 Company
 Customers
 Salespeople
 Employees
 Vendors
 Items

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After you enter this information, the system accesses an email address if the
email application is set up, or it accesses an Internet website by using the
system's browser.

Entering Internet Related Information

If multiple addresses are set up for the company, customers or vendors, Internet
information can be tracked for each address.

To enter Internet related information, follow these steps.

1. Open the Internet Information window.


2. Select the category to which Internet information will be entered.
3. Enter the ID for the customer, salesperson, vendor, employee or item
by using the lookup window or by typing the information in the field.
If company is selected as the category, the current company defaults
in the ID field and the field is locked.
4. Enter any Internet information.
5. Save the record, and then close the window.

E-mail Addresses

In Microsoft Dynamics GP, you can enter valid email addresses to send email
messages that have documents attached. You can email one document, batches
of documents and, or multiple documents.

Internet Information Fields

Enter specific information to track Internet related information for the selected
record in the Internet Information fields. Use the Internet User Defined
window to customize the field names that appear in the Internet Information
window.

The default prompt names include the following:

E-mail

Enter an electronic mail address. Typically, this is in the following form:


username@domainname.com or Mailto: username@domainname.com.
Depending on the entry in this field, when the link is clicked, the email
application opens with the specified email address displayed in the To field.

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Home Page

Enter a World Wide Web URL (uniform resource locator) for a home page.
Typically, this is in the following format: http://www.domainname.com.
Depending on the entry in this field, when the link is clicked, the Internet browser
opens with the specified location displayed.

FTP Site

Enter a FTP URL. Depending on the entry in this field, when the link is clicked, the
Internet browser opens with the specified location displayed.

Image

Enter the location of an image that is associated with an item, employee or


another record. Depending on the entry in this field, when the link is clicked, the
application that is associated with the file extension opens with the specified
image displayed.

Messenger Address

Enter a messenger address to communicate with customers, vendors,


salespeople, and employees by using Unified Communications. Refer to the
“Unified Communications” lesson in this course for more information about this
topic.

Login

Enter a company's logon information for Internet sites, or an employee,


customer, salesperson, or vendor's logon for a site. The information is not used
elsewhere in Microsoft Dynamics GP. Therefore, you can track either type of
information.

Password

Enter a company's password information for Internet sites or an employee,


customer, salesperson, or vendor's password for a site. The information is
not used elsewhere in Microsoft Dynamics GP. Therefore, you can track either
type of information.

User-Defined 1 and 2

Enter any additional document or file that is associated specifically for an


employee, customer, vendor, company, salesperson or item. Depending on the
entry in this field, when the link is clicked, the application that is associated with
the file extension opens with the specified document displayed. For example, if
the location of a Word document is entered, Word opens and the document is
displayed.

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Additional Information

Enter any other Internet-related information that you want to track for the record
that is selected in this window.

Emailing Documents
In Microsoft Dynamics GP, you can select the documents that you want to send.
You can also select customers or vendors that will receive the documents by
using email messages.

This feature in Microsoft Dynamics GP is integrated with Microsoft® Office Word.


You can send customized Microsoft Word documents to customers and vendors.
Microsoft Dynamics GP Word templates must be enabled in the Template
Configuration Manager window before you can send documents as .docx, PDF, or
XPS attachments. You can also enter email addresses in the Internet Information
window. For more information about this topic, refer to the product
documentation for Microsoft Dynamics GP.

Requirements and Information

Consider the following about email documents:

 If you use the 32-bit version of Microsoft Office, then you can use the
Exchange or MAPI server type. However, if you use the 64-bit version
of Microsoft Office, then you must use Microsoft Exchange to use the
email functionality. Additionally, only the documents that are
supported by Microsoft Dynamics GP Word templates can be sent.
 You must have Microsoft Dynamics GP Word templates enabled in
the Template Configuration Manager window before you can send
documents as .docx, PDF, or XPS attachments.
 Documents can be sent by using an email message only if you use a
MAPI compliant email service or if you use Exchange.
 Word 2010 or later versions can be used to send documents.
 If you send an attachment as a HTML file, then the Report Writer
version of the report is attached. The Word templates feature is not
required for this attachment type, and Word 2010 does not have to
be installed.
 If you send an attachment as a .docx file, then the Word form layout
of the report is attached, and Word 2010 does not have to be
installed.
 If you send an attachment as a XPS file, then the Word form layout of
the report is attached, and Word 2010 does not have to be installed
on the client.

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 If you send an attachment as a PDF file, then the Word form version
of the report is attached, and Word 2010 must be installed on the
client. However, Adobe Writer does not have to be installed.

Depending on the file format that is selected to send documents by using an


email message, customers and vendors must use the following components to
view their documents.

File Format Required Component(s)


XPS Microsoft XPS Viewer
PDF Adobe Reader
DOCX Microsoft Word Viewer
HTML Internet Explorer 7 or later versions

Company E-mail Setup

Use the Company E-Mail Setup window to select options to use when you send
documents in an email message. To open this window, click the Administration
series button, and then click E-mail Settings on the Setup content pane.

FIGURE 4.24: COMPANY E-MAIL SETUP WINDOW

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Embed Document in Message Body

Select to embed documents in the body of the message when you send
documents. Standard reports (reports that are generated by the Report Writer
engine) in the HTML file format are sent when the documents are embedded. If
this option is selected, the Embed Document in Message Body field is available
in the Customer E-mail Options window and this field is also available in the
Vendor E-mail Options window.

Send Documents as Attachments

If this option is selected, the Send Documents as Attachments field is available


in the Customer E-mail Options window and this field is also available in the
Vendor E-mail Options window.

File Formats Allowed

Select the file format or formats to send documents as attachments. If a file


format is selected in this window, the format is available in the Customer E-mail
Options window and the format is also available in the Vendor E-mail Options
window. Word templates for Microsoft Dynamics GP must be enabled in the
Template Configuration Manager window before you can send documents as a
.docx, PDF, or XPS attachment. Standard reports (reports generated by the Report
Writer engine) are sent when you send documents as a HTML attachment. This
field is only available if the Send Documents as Attachments option is selected.

Sales Series and Purchasing Series Links

Click these links to access the Sales E-mail Setup window and to access the
Purchasing E-Mail Setup window.

Sales E-mail Setup

Use the Sales E-Mail Setup window so that sales documents can be sent by using
an email message and then enter a default Message ID for those documents. To
open this window, click the Sales Series link on the Company E-Mail Setup
window.

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FIGURE 4.25: SALES E-MAIL SETUP WINDOW

An email message can be selected that shows where customers can send replies
to, and where options can be selected to change the reply to address and the
message, when a sales document is entered. Click Select Names to enter the
customer replies. For example, if Microsoft® Office Outlook® is used, the
Address Book window opens so that you can select an email address.

Click Customer Setup to update multiple customers who have email options.
Select the customers on the list to modify, and then select E-Mail Settings on
the Modify group's overflow menu to open the Mass Customer E-Mail Settings
window. Use the Mass Customer E-Mail Settings window to assign email settings
to multiple vendors or customers. Select the documents that will be sent to the
customers, designate a Message ID, and then select a document Format.
Documents can be sent as attachments or embedded in the message body. If
documents are sent as attachments, you can send multiple attachments to
customers and set the maximum file size of the document.

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Purchasing E-mail Setup

Use the Purchasing E-Mail Setup window so that purchasing documents can be
sent by using an email message and enter a default Message ID for those
documents. To open this window, click the Purchasing Series link on the
Company E-Mail Setup window.

FIGURE 4.26: PURCHASING E-MAIL SETUP WINDOW

An email address can also be selected that shows where vendors can send replies
to, and where options can be selected to change the reply to address and the
message, when a purchasing document is entered. Click Select Names to enter
the vendor replies. For example, if Microsoft Office Outlook is used, the Address
Book window opens so that you can select an email address.

Click Vendor Setup to update multiple vendors with email options.


Select vendors from the list to modify, and then select E-Mail Settings from the
Modify group's overflow menu to open the Mass Vendor E-Mail Settings window.
Use the Mass Vendor E-Mail Settings window to assign email settings to multiple
vendors or customers. Select the documents that will be sent to the vendors,
designate a Message ID, and then select a document Format. Documents can be
sent as attachments or embedded in the message body. If documents are sent as
attachments, you can send multiple attachments to vendors and set the
maximum file size of the document.

Document Attachment Setup

Use the Document Attachment Setup window to select options to use when you
attach documents. To open this window, click the Administration series button,
and then click Document Attachment on the Setup content pane.

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FIGURE 4.27: DOCUMENT ATTACHMENT SETUP WINDOW

Select the Allow Document Attachments option to allow document


attachments. Enter a path or use the Folder icon to browse and select a default
location for storing document attachments. Select the Delete file from Default
Location after attachment option if you do not have to save the attachments.
You can also set a maximum file size for attachments in this window. Click OK to
save the changes, and then close the window.

Message Setup

Use the Message Setup window to create, modify, or delete messages that are
sent to customers or vendors when the documents are sent by using an email
message. To open this window, click the Administration series button, and then
click E-mail Message Setup on the Setup content pane.

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FIGURE 4.28: MESSAGE SETUP WINDOW

Messages can be predefined on a company-wide basis, and the messages can be


used in Sales Order Processing, Receivables Management, Payables Management,
or Purchase Order Processing.

You can create pre-defined messages to send to customers and vendors by using
the Message Setup window. These messages can be assigned to the documents
that you want to send by using an e-mail message so that all customers or
vendors receive the same message for the selected documents. You can also
copy the message information from an existing message ID to a new message ID.

For example, to send a promotional message to customers when you send sales
quotes by using an email message. You can also assign a specific message to a
specific customer or vendor. For example, you can send a holiday greeting
message to a vendor. For more information about this topic, refer to the product
documentation.

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Customer E-mail Options

Use the Customer E-Mail Options window to assign email settings to a specific
customer. To open this window, click the Sales series button, and then click
Customers on the Cards content pane. Select a customer, and then click the E-
mail button.

FIGURE 4.29: CUSTOMER E-MAIL OPTIONS WINDOW

Select the documents to send to the customers, designate a Message ID, and
then select a document Format. Documents can be sent as attachments or the
documents can be embedded in the body of the message. If documents are sent
as attachments, you can send multiple attachments to customers and set the
maximum file size of the document.

Vendor E-mail Options

Use the Vendor E-Mail Options window to assign email settings to a specific
vendor. To open this window, click the Purchasing series button, and then
click Vendors on the Cards content pane. Select a vendor, and then click the E-
mail button.

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FIGURE 4.30: VENDOR E-MAIL OPTIONS WINDOW

Select the documents to send to the vendors, designate a Message ID, and
then select a document Format. Documents can be sent as attachments or the
documents can be embedded in the body of the message. If documents are sent
as attachments, you can send multiple attachments to customers and set the
maximum file size of the document.

E-mail Documents

Documents can be emailed from several locations in Microsoft Dynamics


GP. After the setup of the feature is completed, and if all the requirements are
met to send email messages, you can email documents to customers and
vendors.

For example, in Sales Order Processing, click the Printer icon in the Sales
Transaction Entry window to select the documents and the options that will be
used in the Sales Document Print Options window. Then, click the e-Mail icon in
the Sales Transaction Entry window to view the email message details, and then
send the email message.

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FIGURE 4.31: E-MAIL DOCUMENTS - ILLUSTRATION

The email address that is assigned to the customer or the vendor in Microsoft
Dynamics GP is used as the default address when the email messages are sent.

Unified Communications
In Microsoft Dynamics GP, you can communicate with vendors, customers,
salespeople and employees by using instant messaging and email messages, and
by using Microsoft® Lync for phone calls.

Use the Internet Information window in Microsoft Dynamics GP to enter a


messenger address for a customer, vendor salesperson or employee. To
communicate by using Microsoft Lync, enter a Session Initiation Protocol (SIP)
address in the Messenger Address field in the Internet Information window. SIP
addresses are used to create multimedia connections over Internet Protocol (IP)
for applications, such as instant messaging. Typically, this is in the following form;
username@domainname.com.

When Microsoft Lync is installed on the same system as Microsoft Dynamics GP,
this messenger address is used to support the Unified Communication
integration. Add the contact to your contact list in Microsoft Lync. As soon as you
do this, you can view whether the vendor, customer, salesperson or employee is
present online in the corresponding maintenance windows. If the messenger
address is not in a Microsoft Lync contact group, the presence of the contact in
Microsoft Dynamics GP is unknown. If the presence of the contact is unknown,
you can click the Presence button and select to add the contact to a contact
group.

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Using the Unified Communications Feature

Click the Presence button in the corresponding maintenance window to access a


menu of available communication options that are available for a contact.

FIGURE 4.32: UNIFIED COMMUNICATIONS - EXAMPLE

Select Send an Instant Message to send an instant message to the contact. If


Microsoft Lync is set up and is configured to make telephone calls, you can call
the contact person who appears on the menu. An email message can also be sent
to the contact person if he or she is offline and is using the menu.

Actions can be selected in Microsoft Lync to perform some tasks that are in
Microsoft Dynamics GP. To display the actions in Microsoft Lync, you must start
Microsoft Lync, sign in to the Microsoft Lync account on the same computer as
Microsoft Dynamics GP, and have messenger addresses entered in the Internet
Information window for customer, salespeople, employee, and vendor contacts.
Similar actions are also available for the Business Analyzer.

In the Microsoft Lync window, you can right-click the contact name to display a
list of actions. If you participate in an instant message conversation, you can also
right-click the contact name in the conversation window to display a list of
actions.

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FIGURE 4.33: MICROSOFT LYNC OPTIONS FOR MICROSOFT DYNAMICS GP

Depending on the action that you select, the corresponding window opens. This
window displays the document type and the customer or vendor that the
messenger address is assigned to in the Internet Information window.

The following is a list of actions that are associated with the Microsoft Dynamics
GP windows they open:

 Create a Sales Quote opens Sales Transaction Entry


 Create a Sales Order opens Sales Transaction Entry
 Create a Sales Invoice opens Sales Transaction Entry

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 Create a Purchase Order opens Purchase Order Entry
 View a Customer/Vendor Maintenance opens Customer
Maintenance or Vendor Maintenance

Note: If you select the View a Customer/Vendor Maintenance action and you
do not have security access to the maintenance window, the Customer Inquiry or
Vendor Inquiry window opens instead.

Communication options with business contacts are improved in Microsoft


Dynamics GP with the integration of Microsoft Lync. For more information and to
review additional feature requirements, refer to the product documentation for
Microsoft Dynamics GP.

Tax Setup
Microsoft Dynamics GP accommodates the tax rates and structures on goods and
services in cities, states, provinces, and countries in many areas of the world.

Taxation methods that can be accommodated include the following:

 Goods and Services Tax (GST)


 Provincial Sales Tax (PST)
 Quebec Sales Tax (QST)
 Value-Added Tax (VAT)
 Australian GST
 General taxes that are calculated as a percentage of a sale or
purchase

Tax details and schedules are two important components that must be set up for
taxes to be calculated in Microsoft Dynamics GP. Tax details identify specific taxes
and their rate of taxation.

As soon as each tax detail is set up, you can perform the following functions:

 Specify a tax base of calculation.


 Select minimum and maximum qualifiers for amounts that can be
taxed.
 Assign tax flag characters to be used on invoices.
 Assign an address for the taxing authority for remitting purposes.

For example, to report sales taxes for a state, counties, and cities, you must set up
a tax detail for each reporting entity.

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Schedules group specific tax rates (details) together. For example, one customer
might pay a state sales tax, and not the local tax. Another customer might pay
both state and local taxes. Inventory items might be used as supplies in a
business (sales tax is paid on the purchase of these items) and other Inventory
items might be used for resale to customers. You might have to have multiple
schedules that combine different details for the system to correctly calculate
taxes.

Tax Detail Maintenance

Use the Tax Detail Maintenance window to add, change, or delete tax details. To
open this window, click the Administration series button, and then click Tax
Details on the Setup content pane.

FIGURE 4.34: TAX DETAIL MAINTENANCE WINDOW

Tax details identify the tax specifics that are used in a tax schedule for a
customer, vendor, or item. Set up a tax detail for each tax rate in each jurisdiction
where business is planned.

Set up tax details in the following situations:

 If planning to purchase goods or services in that jurisdiction, set up a


purchases tax detail.
 If different goods or services are taxed at different rates, set up a
separate tax detail for each type of good or service. Make sure that
you set up both sales and purchases details, if these are necessary.

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Note: If certain goods and services are not taxable in a particular jurisdiction,
you might have to set up a tax detail for the goods and services. If you must track
the sales or purchases of these goods and services, then you must set up exempt or
zero-rate tax details.

Setting Up Tax Details

Enter a Tax Detail ID and Description for a detail. Use a descriptive Tax Detail
ID that identifies the tax as sales or purchases, such as the following:

 NY-S for a New York state sales tax


 CHIC-S for Chicago city sales tax
 MEX-S for a national Mexico sales tax
 UK-VAT for a value-added tax in England
 GST for a Goods and Services tax
 PST-ALB for an Alberta provincial purchase tax
 FRGT for a tax on freight charges
 EXEMPT for exempt sales

Select the Tax Type. Sales details calculate and track tax for the typical sales of
taxable goods. Purchase details calculate and track tax information for purchases
of taxable goods that must track tax on purchases in countries that have VAT or
GST. Enter the tax registration code in the Tax ID Number field, if this is required.

Enter an Account to track taxes that are paid or received, or on the list, select an
account. For example, select a Sales Tax Payable account for sales type details
and a Sales Tax Expense account for purchase type details.

Select to keep calendar-year history, fiscal-year history or both for this detail. If
you select the calendar-year history, then the tax detail history is saved by
calendar month to track information that can be required by the government. If
you select the fiscal-year history, then the tax detail information can be tracked
for each period that is defined for the fiscal year. This information is used to print
tax reports that accurately reflect activity in each fiscal period.

Tax Bases

Six tax bases that are used in Microsoft Dynamics GP to calculate taxes, include
the following:

 Tax Included with Item Price


 Flat Amount per Unit
 Percent of Sale/Purchase
 Percent of Cost

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 Percent of Another Tax Detail
 Percent of Sale/Purchase plus Taxable Taxes

Determine the tax base to use for the calculation of the tax and select it in the
Based On field. The available and required fields change on the rest of the Tax
Details window, depending on the tax base that is selected.

The Tax Included with Item Price tax base calculates the price of an item with
tax included in the total. When this option is selected, Microsoft Dynamics GP
calculates the price of the item, and divides the tax amount and then it tracks the
tax amount separately. Examples of this type of tax calculation include sports or
concert tickets. If this tax base is selected, then a tax percentage must be entered
in the Percent field.

The Flat Amount per Unit tax base calculates the tax amount for each unit that
is sold or purchased. For example, if there is a gasoline tax of 0.17 United States
dollars (USD) for each gallon, and if this tax base is selected, a tax amount must
also be entered in the Amount field.

The Percent of Sale/Purchase tax base calculates the tax as a percentage of how
much is sold or purchased. For example, a sales tax of six percent is considered a
percentage of the sales tax. If this tax base is selected, then a tax percentage
must also be entered in the Percent field.

Note: In Canada, GST (Goods and Service Tax) is considered a percentage of


sale/purchase tax. In the United Kingdom, VAT (value-added tax) is considered a
percentage of the sale/purchase tax.

The Percent of Cost tax base is used when Sales is selected as the tax type. Tax
is calculated on a percentage of the actual cost of an item. You can use this tax
base to track tax on the cost amount of the items that are purchased for resale.
Import duties can be assessed as a percentage of an item's cost. If this tax base is
selected, a tax percentage must also be entered in the Percent field.

The Percent of Another Tax Detail tax base calculates a tax amount as a
percentage of another tax detail. For example, a city tax might be a percentage of
a state tax. Select or enter the base detail in the Based on Detail field. If this tax
base is selected, then a tax percentage must also be entered in the Percent field.

For example, if there is a city tax that is a percentage of the state tax, follow these
steps.

1. Set up a tax detail called STATE, as a Percent of Sale/Purchase


amount.
2. Set up a tax detail called CITY, as a Percent of Another Tax Detail.
3. Select STATE in the Based On Detail field for the City tax detail.

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The Percent of Sale/Purchase plus Taxable Taxes tax base calculates tax as a
percentage of the sale or the purchase amount. This includes any taxable tax. For
example, a PST that is calculated on the sale or the purchase amount plus a
taxable GST amount. If this tax base is selected, then a tax percentage must also
be entered in the Percent field.

For example, each Canadian province sets its own rate of PST and decides if the
GST is taxable by the PST. British Columbia has a rate of seven percent and GST is
not taxable by the six percent PST. Quebec has a QST of seven and one-half
percent and GST is taxable by the seven and one-half percent QST. Taxable Tax is
not a tax base that is usually used when taxes are tracked in the United States.

Minimum, Maximum Amounts

Enter the minimum and maximum taxable amount for a detail, if this is required.
For example, if there is law that requires a minimum of 100.00 USD must be
purchased before this tax is added to the sale price, then enter 100.00 USD as the
minimum taxable amount.

Indicate if the tax is calculated on the full amount by using the Include field. For
example, if the minimum taxable amount is 100.00 USD, and the maximum is
500.00 USD then the whole 500 USD, is taxable when Full Amount is selected. If
Amount Within Range is selected, then the difference between the amounts—
400.00 USD—is taxable.

Minimum and maximum tax amounts are also available for details. For example, if
there is law that requires that a minimum of 1.00 USD must be taxed, then enter
1.00 USD as the minimum tax amount. Also, a maximum tax amount can be set.
For example, a vehicle tax could be capped at 500.00 USD for each vehicle. Enter
this amount as the maximum tax amount for the vehicle tax detail.

If only a certain portion on an item is taxable, then enter an amount in the


Taxable Percent field. For example, if only 50 percent of the value of a car is
taxable, use this field to calculate taxes on half the value of a car. If an amount is
entered in this field, all the minimum and maximum values, together with the
qualifiers are unavailable.

Qualifiers

Qualifiers set the amount that is used to determine whether minimums or


maximums apply. The qualifier option is not available with Tax Included With
Item Price, Flat Amount per Unit, Percent of Cost, or Percent of Another Tax
Detail as the basis for calculation. Taxable amount minimums and maximums are
also not available with these calculation methods.

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If Unit Amount is selected as the qualifier for this detail, then the taxable
minimum and maximum amounts are compared with the cost of one unit of an
item. If the item amount is within the minimum and maximum range, then the
selected tax calculation is performed.

If Extended Amount is selected as the qualifier for this detail, then the taxable
minimum and maximum amounts are compared to the extended amount. If the
extended amount is within the minimum and maximum range, then the selected
calculation is performed.

If Invoice Total is selected as the qualifier for this detail, then the taxable
minimum and maximum amounts are compared to the invoice total. If the invoice
total is within the minimum and maximum range, then the selected tax
calculation is performed.

If Unit Amount Plus Taxable Taxes is selected as the qualifier for this detail,
then the taxable minimum and maximum amount is compared with the cost of
one unit of an item, and this includes tax. If the total amount is within the
minimum and maximum range, then the selected calculation is performed. This
qualifier is available only when Percent of Sale/Purchase Plus Taxable Taxes is
selected.

If Extended Amount Plus Taxable Taxes is selected as the qualifier for this
detail, then the taxable minimum and maximum amounts are compared with the
extended amount, and this includes taxes. If the total amount is within the
minimum and maximum range, then the selected calculation is performed. This
qualifier is available only when Percent of Sale/Purchase Plus Taxable Taxes is
selected.

If Invoice Total Plus Taxable Taxes is selected as the qualifier, then the taxable
minimum and maximum amounts are compared with the invoice total, and this
includes taxes. If the amount is within the minimum and maximum range, then
the selected calculation is performed. This qualifier is available only when
Percent of Sale/Purchase Plus Taxable Taxes is selected.

Other Tax Detail Information

Select the Taxable Tax check box when other taxes are calculated on this tax. For
example, if the GST on an item is included in the amount that is taxed by PST,
select the GST detail as a taxable tax.

Note: If it is required by law to identify taxes on invoices, print a one-


character code next to the items that are being taxed. Select the Print on
Documents check box and enter a code, such as G for GST or P for PST. The
character appears on the invoices next to each item that is taxed. This requirement
is typical in Canada and New Zealand.

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An address can be kept for reporting purposes for this detail. Click Address to
display the Tax Detail Address window, and then enter the address. Use this
address for reporting purposes when printing period-end reports are printed for
the taxing authority.

After you post transactions that include tax details, you can view detail history or
when you set up a tax detail you can enter tax detail history information by fiscal
and calendar periods. Click History in the Tax Detail Maintenance window to
display the Tax Detail History window.

Tax Schedule Maintenance

Use the Tax Schedule Maintenance window to add, change, and delete tax
schedule information. To open this window, click the Administration series
button, and then click Tax Details on the Setup content pane.

FIGURE 4.35: TAX SCHEDULE MAINTENANCE WINDOW

After you set up details for all required taxes, you can create tax schedules. Tax
schedules are groups of tax details that are assigned to a transaction. These tax
schedules calculate all the taxes that apply to a sales or purchase transaction.

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For each jurisdiction where business is planned, set up the following tax
schedules:

 Purchase tax schedule: This schedule includes all purchases tax


details that apply to that jurisdiction. Purchases tax schedules are
assigned to vendor records, and a default purchases tax schedule can
be specified in the Payables Management Setup Options window.
 Sales tax schedule: This schedule includes all sales tax details that
apply to that jurisdiction. Sales tax schedules are assigned to
customer records, and a default sales tax schedule can be specified in
the Receivables Management Setup Options window.

For each category of inventoried items that is purchased or sold, and is taxed at
different rates in different jurisdictions, set up one tax schedule. These tax
schedules include the following:

 Item tax schedule: This schedule includes applicable tax details for
all jurisdictions. Make sure that you include both sales and purchases
details in this tax schedule. Item tax schedules are assigned to item
records.
 Non-inventoried item tax schedule: At least one must be set up.
This schedule includes the tax details that most typically apply to the
non-inventoried items that are purchased or sold. Non-inventoried
tax schedules are assigned to transactions.
 Miscellaneous charge tax schedule: At least one must be set up.
This schedule includes the tax details that most typically apply to the
miscellaneous charges that are incurred. Miscellaneous charge tax
schedules are assigned to transactions.

Default tax schedules for non-inventoried items, freight, and miscellaneous


charges are specified in the Setup Options window for each module that these
tax schedules can be used in.

Note: In addition to the other recommended tax schedules, you might want
to set up a tax schedule that contains all tax details.

Setting Up Tax Schedules

Enter a Tax Schedule ID and a Description. Identify the tax schedule with a
descriptive name. For example, a tax schedule for the city of Austin, Texas, might
be named TXAUST.

The Tax Schedule Maintenance window contains the following two lists:

 Available Tax Detail IDs: Displays the list of all the tax details that
are entered.

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Introduction to Microsoft Dynamics® GP 2013
 Selected Tax Detail IDs: Displays the details that are added to this
schedule.

To add tax details to a tax schedule, highlight a detail in the Available Tax Detail
IDs list and then click Insert. The detail is inserted in the Selected Tax Detail IDs
list and is included in this tax schedule. Continue to select and insert details until
the complete tax schedule is created.

Copy Tax Details

Click Copy to create schedules if there is a large list of details that belong in
several schedules. To copy a tax schedule, follow these steps.

1. Enter a Tax Schedule ID.


2. Click Copy.
3. Type the name of the schedule to copy in the dialog box that
appears. The details for the existing schedule are copied to the
Selected Tax Detail IDs list.
4. Add or delete details to complete the new schedule.

For example, to create a sales tax schedule for the City of Chicago that includes
Illinois taxes, follow these steps.

1. Enter a Tax Schedule ID and Description for the Chicago tax, such
as ILCHIC.
2. Click Copy.
3. Enter the Illinois tax schedule to copy. All the sales tax details on the
Illinois schedule appear in the Selected Tax Detail IDs list.
4. Insert additional tax details that apply to the City of Chicago.

Remove, Save and Delete

To remove a previously selected tax detail from the Selected Tax Detail IDs list,
select the detail and then click Remove. After a new tax schedule is set up, click
Save to save the schedule. Click Delete to remove a tax schedule.

Note: If a tax schedule is deleted, the details that are assigned to the tax
schedule are not removed. The details can be assigned to other tax schedules, if this
is necessary.

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Module 4: Company Setup Procedures

Lab H: Set Up a New Tax


Exercise Scenario

Company: Fabrikam, Inc.

The City of Chicago has implemented a new half percent temporary sales tax in
addition to the one percent city sales tax that already exists. The new tax must be
calculated and remitted separately from the existing tax and applies to all sales
delivered to customers in Chicago. All the other requirements are the same as the
existing tax.

Set up the temporary sales tax, with a new General Ledger account and add the
temporary sales tax to the All Details tax schedule. Add the new account number,
000-2312-00, and enter Chicago City Temporary Sales Tax Payable in the
Description field.

Note: This lab must be completed in Fabrikam, Inc. If you did not log off
Family Health Center, and log on to Fabrikam, Inc., you cannot complete this lab.

High Level Steps


1. Create the new tax detail for the new tax.
2. Enter the account number and add the new account to the chart of
accounts.
3. Finish setting up the tax detail and save it when you are finished.
4. Assign the new tax detail to the All Details tax schedule.

Detailed Steps
1. Create the new tax detail for the new tax.
a. To open the Tax Detail Maintenance window, click the
Administration series button, and then click Tax Details on the
Setup content pane.
b. Select the Chicago City Sales Tax (USCITY-PS1N0) detail in the
Tax Detail ID field.
c. Note the settings for History, Based On, Round, Taxable
Amount, and the Tax Amount fields.
d. Click Clear.
e. Enter USCITY-PS2N0 in the Tax Detail ID field to create a new
tax detail.
f. Enter Chicago City Temp Sales Tax in the Description field.
g. Select Sales in the Tax Type field.

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2. Enter the account number and add the new account to the chart of
accounts.
a. Enter 000-2312-00 in the Account field.
b. Press the Tab key to move away from the field, and when you
receive a message that asks whether you want to add the
account, click Add, and then select Posting as the type of
account to add. The Account Maintenance window opens.
c. Enter Chicago City Temporary Sales Tax Payable in the
Description field.
d. Select Accounts Payable in the Category field.
e. Select Balance Sheet in the Posting Type field and Credit in the
Typical Balance field.
f. Click Save to save the account, and then close the Account
Maintenance window.

3. Finish setting up the tax detail and save it when you are finished.
a. Enter 0.5% in the Percentage field.
b. Click Save to save the tax detail.
c. Close the Tax Detail Maintenance window.

4. Assign the new tax detail to the All Details tax schedule.
a. To open the Tax Schedule Maintenance window, click the
Administration series button, and then click Tax Schedules on
the Setup content pane.
b. Select ALL DETAILS in the Tax Schedule ID field.
c. Select the USCITY-PS2N0 tax detail in the Available Tax Detail
IDs column field and then click Insert.
d. Click Save to save the change to the tax schedule, and then close
the window.

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Module 4: Company Setup Procedures

Tax Calculations in Receivables and Payables


When the system calculates tax on a sale in Receivables Management or a
purchase in Payables Management, it compares the following:

 The tax schedule that is assigned to the customer or the vendor.


 The tax schedule that is assigned to the sale or the purchase.
 Additional freight and miscellaneous charges and the tax status of
these charges.

The system checks for detailed information that matches between the customer
or the vendor and the sale or the purchase amounts. Taxes are calculated only for
the details that match.

If you select Use Shipping Method when Selecting Default Tax Schedule in
the Company Setup Options window, then the system checks the shipping
method to determine where the exchange of goods occurs. The shipping method
designates the tax schedule that is displayed as the default tax schedule for the
transaction.

Default Tax Schedules

Default tax schedules for sales or purchases, freight, and miscellaneous charges
can be set up in the Receivables Setup Options window for sales taxes. The
default tax schedules can also be set up in the Payables Setup Options window
for purchase taxes.

In Receivables Management consider the following:

If the shipping method is pickup, the tax schedule designated for the company
on the Company Setup window appears as the default.

If the shipping method is delivery, the tax schedule designated for the customer
appears as the default.

In Payables Management consider the following:

If the shipping method is pickup, the tax schedule assigned to the vendor on the
Vendor Maintenance window appears as the default.

If the shipping method is pickup, the tax schedule assigned to the vendor
on the Vendor Maintenance window appears as the default.

If the shipping method is delivery, the tax schedule assigned to the company on
the Company Setup window appears as the default.

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Introduction to Microsoft Dynamics® GP 2013

Note: Unique tax schedules can be entered for multiple locations for a
customer or vendor. If the shipping method is delivery, the tax schedule for the
location defaults.

Tax Calculation Examples

The following examples show how tax details are compared in Receivables
Management and in Payables Management. These examples assume the Use
Shipping Method when Selecting Default Tax Schedule check box in the
Company Options window is selected.

Schedules A, B and C contain the following tax details:

Tax Schedule A Tax Schedule B Tax Schedule C


TAX001 TAX001
TAX002
TAX003
TAX004 TAX004 TAX004
TAX005
TAX006

The tax schedules are assigned as follows:

Tax Schedule A Tax Schedule B Tax Schedule C


Freight In Miscellaneous Customer/Vendor
Freight Out Company Sale/Purchase

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Module 4: Company Setup Procedures
Record a purchase of goods in Payables Management, with a shipping method of
pickup. The tax schedule assigned to the vendor is displayed as the default tax
schedule, and the following taxes are charged:

Amounts Details Taxes Applied


Purchase: 100.00 TAX001 Tax Schedule C (assigned to the
USD taxed by using: TAX004 purchase and vendor) contains
details TAX001, TAX004 and
TAX005
TAX005.
Freight: 10.00 TAX001 Tax Schedule A (assigned to
USD taxed by using: TAX004 Freight) and Tax Schedule C
(assigned to the purchase) both
contain details TAX001 and TAX004.
Miscellaneous: 10.00 TAX004 Tax Schedule B (assigned to
USD taxed by using: Miscellaneous) and Tax Schedule C
(assigned to the purchase) both
contain detail TAX004.

Record a purchase of goods with a shipping method of delivery. The tax schedule
assigned to the company is displayed as the default tax schedule, and the
following taxes are charged:

Amounts Details Taxes Applied


Purchase: 100.00 TAX004 Tax Schedule B (assigned to the
USD taxed by using: company) and Tax Schedule C
(assigned to the purchase) both
contain detail TAX004.
Freight: 10.00 TAX004 Tax Schedule A (assigned to freight)
USD taxed by using: and Tax Schedule B (assigned to the
company) both contain detail
TAX004.
Miscellaneous: 10.00 TAX002 Tax Schedule B (assigned to the
USD taxed by using: TAX003 company) and Tax Schedule B
(assigned to miscellaneous).
TAX004

Note: Every time that the shipping method is changed, the tax schedule
might be changed and taxes might be recalculated.

Tax Calculations in Sales Order Processing


When the system calculates tax on an invoice, it compares the tax details that are

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Introduction to Microsoft Dynamics® GP 2013
included in the tax schedules that are assigned to the same category, depending
on the shipping method on the invoice or on the Sales Tax option for the
following items:

 Customer
 Item
 Site
 Freight
 Miscellaneous charges

The system checks for detailed information that matches in each category, and
the tax is calculated only for the detailed information that matches.

The Sales Tax options available for inventory items include the following:

 Taxable
 Nontaxable
 Base on Customer

These options are discussed in more detail in the Inventory course.

Shipping Methods and Default Tax Schedules

When the Use Shipping Method when Selecting Default Tax Schedule check
box in the Company Setup Options window is selected, the system checks the
shipping method to determine where the exchange of goods occurred.

The shipping method determines the tax schedule that is displayed as the default
tax schedule for the transaction. Consider the following:

 If the shipping method is delivery, then the tax schedule that is


designated for the shipping address for the customer is displayed as
the default tax schedule.
 If the shipping method is pickup, the tax schedule designated for the
default site being sold from appears as the default.

The following figures and tables show how the tax details are compared to
determine the tax amount.

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Module 4: Company Setup Procedures
For a Delivery Shipping Method

The tax that is calculated on the line item is the amount or the percentage that is
assigned to tax detail TAX001. The tax that is calculated on the freight charge is
the amount or the percentage that is assigned to tax detail TAX003. The tax on
the miscellaneous charge is the amount or the percentage that is assigned to tax
details TAX001 and TAX004.

FIGURE 4.36: TAX EXAMPLE: DELIVERY SHIPPING METHOD

These details appear in both the customer schedule and in the inventory item,
freight, or miscellaneous schedules.

For a Pickup Shipping Method

The tax that is calculated on the line item is the amount or the percentage that is
assigned to tax detail TAX001. The tax that is calculated on freight is the amount
or the percentage that is entered on tax detail TAX003. The tax on the
miscellaneous charge is the amount or the percentage that is assigned to tax
details TAX001 and TAX004.

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Introduction to Microsoft Dynamics® GP 2013

FIGURE 4.37: TAX EXAMPLE: PICKUP SHIPPING METHOD

These details appear in the site schedule and in the inventory item, freight, or
miscellaneous schedules.

Tax on Inventoried Items

The taxes on Inventoried Items are described in the following table;


Tax Option on Item Tax Shipping Tax Schedules Default from:
Item Schedule Method
Non-taxable N/A N/A No taxes calculated
Taxable No Pickup/Deliv No taxes calculated
ery
Taxable Yes Pickup Item Site Maintenance for
default Site and Item
Maintenance
Taxable Yes Delivery Customer Ship To Address ID
and Item Maintenance
Base on N/A Pickup Item Site Maintenance for
Customers default Site only—calculates
all details
Base on N/A Delivery Customer Ship To Address
Customers ID—calculates all details

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Module 4: Company Setup Procedures
Tax on Miscellaneous and Freight Amounts

The tax on miscellaneous amounts and freight amounts are described in the
following table;

Tax Options Tax Schedule Shipping Tax Schedules Default


from SOP Setup ID/ SOP Setup Method From:
Non-taxable N/A N/A No taxes calculated
Taxable Yes Pickup Item Site Maintenance for
default Site and SOP Setup
Taxable No Pickup No taxes calculated
Taxable Yes Delivery Customer Ship To Address
ID and SOP Setup
Taxable No Delivery No taxes calculated
Base on N/A Delivery Customer Ship To Address
Customers ID—calculates all details
Base on N/A Pickup Item Site Maintenance for
Customers default Site only—
calculates all details

Tax on Non-Inventoried Items

The tax on non-inventoried items is described in the following table;

Tax Options Tax Schedule Shipping Tax Schedules Default


from SOP Setup from SOP Method From:
Setup
Non-taxable N/A N/A No taxes calculated
Taxable Yes Pickup Item Site Maintenance for
default Site and SOP Setup
Taxable No Pickup No taxes calculated
Taxable Yes Delivery Customer Ship To Address
ID and SOP Setup
Taxable No Delivery No taxes calculated
Base on N/A Pickup Item Site Maintenance for
Customers default Site only—
calculates all details
Base on N/A Delivery Customer Ship To Address
Customers ID—calculates all details

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Introduction to Microsoft Dynamics® GP 2013
Additional Notes - Tax Calculations

For more information about taxes, refer to the product documentation that is
available on the Help menu in Microsoft Dynamics GP.

Note: The previous tables assume that the Use Shipping Method when
Selecting Default Tax Schedule is selected in the Company Setup Options
window.

Note: The previous tables assume that the Tax Calculations option in the
Sales Order Processing Setup Options window is set to Advanced. If this option is
set to Single Schedule, all tax details on the Tax Schedule are used to compute
taxes on all sales in the Invoice Entry window. This option is used for Inventory and
Non-Inventory items, Freight, Miscellaneous charges and for all customers,
regardless of the shipping method. The tax schedule cannot be changed during the
transaction entry or editing when this option is used.

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Module 4: Company Setup Procedures

Module Review
Some important information discussed in this module, includes the following:

 Companies are created by using Microsoft Dynamics GP Utilities.


 The Setup Checklist can be used to set up Microsoft Dynamics GP.
 Account Format maximums are set during installation.
 The maximum account format length in Microsoft Dynamics GP is 66.
 The maximum number of account segments in Microsoft Dynamics
GP is 10.
 Fiscal Periods can be defined by entering the number of periods in
the year and the first day and the last day.
 The maximum number of fiscal periods in a year is 367.
 Payment Terms, Credit Cards, and Shipping Methods are used in
multiple modules and are a part of the company setup.
 Internet information such as email addresses or websites can be
tracked for the company together with vendors and customers.
 Custom Links can be created to provide quicker access to important
information.
 Microsoft Dynamics GP automatically calculates taxes. The tax details
and the schedules must be set up and default schedules must be
assigned.

Test Your Knowledge

Test your knowledge with the following questions.

1. Which of the following is the maximum length for an account in Microsoft


Dynamics GP?

( ) 10

( ) 25

( ) 66

( ) 100

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Introduction to Microsoft Dynamics® GP 2013
2. Which of the following is the maximum number of account segments in
Microsoft Dynamics GP?

( )1

( )3

( )5

( ) 10

( ) 20

3. Which of the following is the maximum number of fiscal periods that you can
have in the year in Microsoft Dynamics GP?

( ) 12

( ) 13

( ) 365

( ) 367

( ) 500

4. In Microsoft Dynamics GP, how is security activated?

( ) Assign a security role to a user

( ) Select the Security option in the Company Setup window

( ) Assign a security task to a user

( ) Select the Security option in the Company Login window

5. Where are specific taxes set up in Microsoft Dynamics GP?

( ) Tax Detail Maintenance

( ) Tax Schedule Maintenance

( ) Tax Calculation Maintenance

( ) Company Setup Options

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Module 4: Company Setup Procedures
6. Which of the following defines a tax schedule?

( ) A tax schedule is a specific tax and information is used to calculate


the tax schedule.

( ) A tax schedule consists of the timeframe that the tax is applicable to


certain sales.

( ) A tax schedule is a group of tax details that can be assigned to


master records such as customers and items.

( ) A tax schedule is used to calculate scheduled payment taxes and


interest payments in Payables Management.

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Introduction to Microsoft Dynamics® GP 2013

Test Your Knowledge Solutions


Module Review and Takeaways

1. Which of the following is the maximum length for an account in Microsoft


Dynamics GP?

( ) 10

( ) 25

(√) 66

( ) 100

2. Which of the following is the maximum number of account segments in


Microsoft Dynamics GP?

( )1

( )3

( )5

(√) 10

( ) 20

3. Which of the following is the maximum number of fiscal periods that you can
have in the year in Microsoft Dynamics GP?

( ) 12

( ) 13

( ) 365

(√) 367

( ) 500

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Module 4: Company Setup Procedures
4. In Microsoft Dynamics GP, how is security activated?

( ) Assign a security role to a user

(√) Select the Security option in the Company Setup window

( ) Assign a security task to a user

( ) Select the Security option in the Company Login window

5. Where are specific taxes set up in Microsoft Dynamics GP?

(√) Tax Detail Maintenance

( ) Tax Schedule Maintenance

( ) Tax Calculation Maintenance

( ) Company Setup Options

6. Which of the following defines a tax schedule?

( ) A tax schedule is a specific tax and information is used to calculate


the tax schedule.

( ) A tax schedule consists of the timeframe that the tax is applicable to


certain sales.

(√) A tax schedule is a group of tax details that can be assigned to master
records such as customers and items.

( ) A tax schedule is used to calculate scheduled payment taxes and


interest payments in Payables Management.

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Introduction to Microsoft Dynamics® GP 2013

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