1.

Basic Navigation
Exercise 1.1
Fill each blank with the appropriate words or terminologies that will make the statements correct.

Modules/Main Menu This menu contains a list of all

1. Navigation in Smartbooks is done using the___________________.
modules with their related options.

Status Bar
2. The _______________ extends along the entire lower edge of the Smartbooks main window and
contains various fields.

Error Message appears on a red background and informs you that the procedure cannot
3. A/an __________________
continue until corrective action is taken.

Confirmation
4. A/an ___________________ appears on a green background and confirms the successful execution of
Message
a procedure.

Document Link
5. A ____________________ function is normally linked with the master data and documents. Using it
will open the detailed information.

Exercise 1.2
Identify the terminologies being described by each sentence.

1. This application facilitates data sharing, information flows, and introduction of common business
practices among business units in the organization. It enables an organization to automate and integrate
its key business processes. Smartbooks

2. This is also known as Internal Cloud, is a cloud-based infrastructure operated exclusively for a single
organization with all data protected behind an internal firewall. Private Cloud

3. This is also known as External Cloud, is available to the public where data are created and stored on
third-party servers. Public Cloud

4. This is a key feature of cloud computing where resources can be accessed anywhere (except on
limitations set by company's internal control). Location Independence

5. It is one of the major units of Smartbooks that produces the traditional Financial Statements, such as
Income Statement, Balance Sheet, Statement of Cash Flow, Tax Returns, Reports / Schedules, and other
reports mandated by the government. General Ledger/ Financial Reporting

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Proof of Registration

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2. Customer Master Record
Exercise 2.1
Customers/Suppliers > Customers

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Exercise 2.1 (CONTINUATION)

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Exercise 2.2
Customers/Suppliers > Customers

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3. Supplier Master Record
Exercise 3.1
Customers/Suppliers > Suppliers

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Exercise 3.1 (CONTINUATION)

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Exercise 3.2
Customers/Suppliers > Suppliers

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Exercise 3.2 (CONTINUATION)

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Exercise 3.2 (CONTINUATION)

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4. Adding of Items and Bank Account
Exercise 4.1 Adding of Items
Inventory > Items

Add the following items:

Item Price w/ VAT Installment

Item Code (Manual) Item Name Item Class
Category (Base Price)
I + 00 + [Branch No.] + A [Item 1 Name] Merchandise Inventory Items 1000
I + 00 + [Branch No.] + B [Item 2 Name] Merchandise Inventory Items 2500
I + 00 + [Branch No.] + C [Item 3 Name] Merchandise Inventory Items 850
I + 00 + [Branch No.] + D [Item 4 Name] Merchandise Inventory Items 12000
I + 00 + [Branch No.] + E [Item 5 Name] Merchandise Inventory Items 15000

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Exercise 4.1 (CONTINUATION)

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Exercise 4.1 (CONTINUATION)

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Exercise 4.1 (CONTINUATION)

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Exercise 4.2 Adding of Bank Account
Admin > Setup > Banking > Bank Accounts

Bank: BDO
Bank Branch: Makati City
Bank Account No.: 987654321
G/L Account: 10120101 (BDO)

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5. Purchase Process
5.A Regular Purchase Process
Exercise 5.1
Do the WHOLE PURCHASE PROCESS for the following items (Purchase Order > Receiving
> AP Voucher > Cash Outflow – Supplier):

Supplier: [Supplier in Exercise 3.1]

Item/s: [Item 1 and Item 2 in Exercise 4.1]
Quantity: 65 and 49 respectively
Payment means: Cash (Use Cash on Hand)

• Purchase Order

• Receiving

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Exercise 5.1 (CONTINUATION)
• A/P Voucher

• Cash Outflows – Supplier

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Exercise 5.2
Do the WHOLE PURCHASE PROCESS for the following items (Purchase Oder > Receiving > AP Voucher >
Cash Outflow – Supplier):

Supplier: [Supplier in Exercise 3.2]

Item/s: [Item 3 and Item 4 in Exercise 4.1]
Quantity 45 and 50 respectively
Payment means: Bank (Use BDO Account)

• Purchase Order

• Receiving

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Exercise 5.2 (CONTINUATION)

• A/P Voucher

• Cash Outflows – Supplier

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5.B Purchase Process with Purchase Return
Exercise 5.3
Do the WHOLE PURCHASE PROCESS for the following items with Goods Return (Purchase Order >
Receiving > Purchase Returns > A/P Voucher > Cash Outflow – Supplier):

Supplier: [Supplier in Exercise 3.1]

Item/s: [Item 1 and Item 5 in Exercise 4.1]
Quantity Received: 67 and 56 respectively
Quantity Returned: 5 and 3 respectively
Payment means: Cash (Use Cash on Hand)

• Purchase Order

• Receiving

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Exercise 5.3 (CONTINUATION)

• Purchase Returns

• A/P Voucher

• Cash Outflow – Supplier

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5.C Purchase Process with Debit Memo
Exercise 5.4
Do the WHOLE PURCHASE PROCESS for the following items with /P Debit Memo (Purchase Order >
Receiving > A/P Voucher > A/P Debit Memo > Cash Outflow – Supplier):

Supplier: [Supplier in Exercise 3.2]

Item/s: [Item 2 and Item 3 in Exercise 4.1]
Quantity Received: 50 and 45 respectively
Quantity Returned: 3 and 2 respectively
Payment means: Cash (Use Cash on Hand)

• Purchase Order

• Receiving

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Exercise 5.4 (CONTINUATION)

• A/P Voucher

• A/P Debit Memo

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• Cash Outflow – Supplier

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Exercise 5.5
Do the WHOLE PURCHASE PROCESS for the following items with /P Debit Memo (Purchase Oder >
Receiving > A/P Voucher > A/P Debit Memo > Cash Outflow – Supplier):

Supplier: [Supplier in Exercise 3.1]

Item/s: [Item 4 and Item 5 in Exercise 4.1]
Quantity Received: 47 and 55 respectively
Quantity Returned: 5 and 4 respectively
Reference in Payment means: Bank (Use BDO Account)

• Purchase Order

• Receiving

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Exercise 5.5 (CONTINUATION)

• A/P Voucher

• A/P Debit Memo

• Cash Outflow – Supplier

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6. Sales Process
6.A Regular Sales Process
Exercise 6.1
Do the WHOLE SALES PROCESS for the following items (Sales Order > Shipment > Invoice > Cash Inflow –
Customer):

Customer: [Customer in Exercise 1.1]

Item/s: [Item 1 and Item 2 in Exercise 4.1]
Quantity: 23 and 31 respectively
Payment means: Cash (Use Cash on Hand)

• Sales Order

• Shipment

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Exercise 6.1 (CONTINUATION)

• Invoice

• Cash Inflow – Customer

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Exercise 6.2
Do the WHOLE SALES PROCESS for the following items (Sales Oder > Shipment > Invoice > Cash Inflow –
Customer):

Customer: [Customer in Exercise 2.2]

Item/s: [Item 3 and Item 4 in Exercise 4.1]
Quantity 25 and 27 respectively
Payment means: Bank (Use BDO Account)

• Sales Order

• Shipment

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Exercise 6.2 (CONTINUATION)

• Invoice

• Cash Inflow – Customer

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6.B Sales Process with Sales Return
Exercise 6.3
Do the WHOLE SALES PROCESS for the following items with Sales Return (Sales Order > Shipment > Sales
Return > Invoice > Cash Inflow – Customer):

Customer: [Customer in Exercise 2.1]

Item/s: [Item 1 and Item 5 in Exercise 4.1]
Quantity Delivered: 20 and 30 respectively
Quantity Returned: 2 and 1 respectively
Payment means: Cash (Use Cash on Hand)

• Sales Order

• Shipment

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Exercise 6.3 (CONTINUATION)

• Sales Return

• Invoice

• Cash Inflow – Customer

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6.C Sales Process with Credit Memo
Exercise 6.4
Do the WHOLE SALES PROCESS for the following items with A/R Credit Memo (Sales Order > Shipment >
Invoice > A/R Credit Memo > Cash Inflow – Customer):

Customer: [Customer in Exercise 2.2]

Item/s: [Item 2 and Item 3 in Exercise 4.1]
Quantity Delivered: 18 and 24 respectively
Quantity Returned: 3 and 4 respectively
Payment means: Bank (Use BDO Account)

• Sales Order

• Shipment

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Exercise 6.4 (CONTINUATION)

• Invoice

• A/R Credit Memo

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• Cash Inflow – Customer

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Exercise 6.5
Do the WHOLE SALES PROCESS for the following items with A/R Credit Memo (Sales Order > Shipment >
Invoice > A/R Credit Memo > Cash Inflow – Customer):

Customer: [Customer in Exercise 2.1]

Item/s: [Item 4 and Item 5 in Exercise 4.1]
Quantity Delivered: 21 and 19 respectively
Quantity Returned: 1 and 3 respectively
Payment means: Cash (Use Cash on Hand)

• Sales Order

• Shipment

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Exercise 6.5 (CONTINUATION)

• Invoice

• A/R Credit Memo

• Cash Inflow – Customer

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7. Inventory Management

Defining Warehouse
Exercise 7.1 Adding of Warehouse
Admin > Setup > Inventory > Define Warehouses

Add the following warehouse:

Warehouse Code: WH + (Branch)

Warehouse Name: (Preferred Location) + Warehouse
Street: (Preferred street)
Block/Barangay: (Preferred barangay)
City: (Preferred city)
Zip code: (Zip code of preferred city)

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Inventory Transactions
Exercise 7.2 Item Receipt
Inventory > Inventory Transactions > Item Receipt

Received freebies from supplier:

Items: Quantity
[Item 1] 12
[Item 2] 17

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Exercise 7.3 Item Receipt
Inventory > Inventory Transactions > Item Receipt

Physical inventory count is higher than system inventory count

Items: Quantity
[Item 3] 35
[Item 4] 47
[Item 5] 23

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Exercise 7.4 Item Issuance
Inventory > Inventory Transactions > Item Issuance

Issued items due to warehouse theft.

Items: Quantity
[Item 1] 10
[Item 2] 14

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Exercise 7.5 Item Issuance
Inventory > Inventory Transactions > Item Issuance

Issued items due to warehouse fire.

Items: Quantity
[Item 3] 12
[Item 4] 22
[Item 5] 14

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Exercise 7.6 Item Transfer
Inventory > Inventory Transactions > Item Transfer

Transfer the following items from your assigned warehouse (i.e. WAREHOUSE XX) to the created
warehouse in 7.1.

Items: Quantity
[Item 1] 10
[Item 2] 10
[Item 3] 10
[Item 4] 10
[Item 5] 10

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Batch and Serial Numbers
Adding of Item: Inventory > Items
Purchase Order > Receiving > A/P Voucher
Sales Order > Shipment > Invoice

Exercise 7.7 Batches

Add the following item managed by batches:

Item Code: B + [Branch no.] + A

Item Name: [Preferred Item Name]
Item Category: Items
Item Class Merchandise Inventory
Inventory Tab:
Costing Method: FIFO
Manage Item by: Batches
Management Method: On every transaction
Price List Tab:
Base Price: 65

• Purchase and receive from [Supplier in Exercise 3.1] 100pcs of [Item above] by batches. Make 4
batches divided equally.
• Sell and deliver to [Customer in Exercise 2.1] 54pcs of [Item above] by batches.
Note: Use your Branch No. when defining batch numbers.

Example, if you are Branch 1, start at:

Batch No.: Batch 1000

• Add item

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Exercise 7.7 (CONTINUATION)

• Purchase and Receive

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Exercise 7.7 (CONTINUATION)

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Exercise 7.7 (CONTINUATION)

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Exercise 7.7 (CONTINUATION)

• Sell and Deliver

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Exercise 7.7 (CONTINUATION)

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Exercise 7.8 Batches
Adding of Item: Inventory > Items
Purchase Order > Receiving > A/P Voucher
Sales Order > Shipment > Invoice

Add the following item managed by batches:

Item Code: B + [Branch no.] + B

Item Name: [Preferred Item Name]
Item Category: Items
Item Class Merchandise Inventory
Inventory Tab:
Costing Method: FIFO
Manage Item by: Batches
Management Method: On every transaction
Price List Tab:
Base Price: 100

• Purchase and receive from [Supplier in Exercise 3.2] 200pcs of [Added Item] by batches. Make 2
batches divided equally.
• Sell and deliver to [Customer in Exercise 2.2] 133pcs of [Added Item] by batches.

• Add item

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Exercise 7.8 (CONTINUATION)

• Purchase and Receive

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Exercise 7.8 (CONTINUATION)

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Exercise 7.8 (CONTINUATION)

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Exercise 7.8 (CONTINUATION)

• Sell and Deliver

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Exercise 7.8 (CONTINUATION)

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Exercise 7.9 Serial Numbers
Adding of Item: Inventory > Items
Purchase Order > Receiving > A/P Voucher
Sales Order > Shipment > Invoice

Add the following item managed by serial numbers:

Item Code: SN + [Branch no.] + A

Item Name: [Preferred Item Name]
Item Category: Items
Item Class Merchandise Inventory
Inventory Tab:
Costing Method: FIFO
Manage Item by: Serial Numbers
Management Method: On every transaction
Price List Tab:
Base Price: 45000

• Purchase and receive from [Supplier in Exercise 3.1] 20pcs of [Item above] by serial numbers.
• Sell and deliver to [Customer in Exercise 2.1] 5pcs of [Item above] by serial numbers.

Note: Use your Branch No. when generating serial numbers.

Example, if you are Branch 1, use:

Prefix: Start Serial No:

Branch 1- 1000

• Add item

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Exercise 7.9 (CONTINUATION)

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Exercise 7.9 (CONTINUATION)

• Purchase and Receive

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Exercise 7.9 (CONTINUATION)

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Exercise 7.9 (CONTINUATION)

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Exercise 7.9 (CONTINUATION)

• Sell and Deliver

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Exercise 7.9 (CONTINUATION)

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Exercise 7.10 Serial Numbers
Add the following item managed by serial numbers:

Item Code: SN + [Branch no.] + B

Item Name: [Preferred Item Name]
Item Category: Items
Item Class Merchandise Inventory
Inventory Tab:
Costing Method: FIFO
Manage Item by: Serial Numbers
Management Method: On every transaction
Price List Tab:
Base Price: 35000

• Purchase and receive from [Supplier in Exercise 3.2] 25pcs of [Item above] by serial numbers.
• Sell and deliver to [Customer in Exercise 2.2] 14pcs of [Item above] by serial numbers.

• Add item

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Exercise 7.10 (CONTINUATION)

• Purchase and Receive

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Exercise 7.10 (CONTINUATION)

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Exercise 7.10 (CONTINUATION)

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Exercise 7.10 (CONTINUATION)

• Sell and Deliver

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Exercise 7.10 (CONTINUATION)

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8. Accounting Cycle
Exercise 8.1 – Journal Voucher
Financials > Journal Voucher

Record the following transactions using the Journal:

On January 3, 20XX, the company issued ordinary share capital worth of P1,000,000, payment was made
on cash.

Dr. Cash on hand P1,000,000

Cr. Ordinary Share Capital P1,000,000

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Exercise 8.2 - Journal Voucher – Draft
Financials > Journal Voucher

Record the following transactions and save it as a draft.

On March 30, 20XX, the company recorded a Salary Expense worth of P10,000, paid for through cash.

Dr. Salaries and Wages P10,000

Cr. Cash on hand P10,000

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Exercise 8.3 - Adjusting Entry
Financials > Journal Voucher

Record the following transaction:

On March 31, 20XX, the company accrue the current month’s electricity and water with a total amount
of P13,450.

Dr. Electricity & Water P13,450

Cr. Accrued Payable P13,450

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Exercise 8.4 – Recurring Postings
Financials > Recurring Postings

Create the following recurring entries.

On April 1, 20XX, the company decided to save the monthly recurring rent expense on the system for
their new lease contract starting April 1 this year until April 1 next year. It is to be posted every 15th of
the month. Monthly rental amounts to P25,000 and payment is made thru cash.

Dr. Rental Expense P25,000

Cr. Cash on hand P25,000

Code: RP + [Branch no.]

Description: Monthly Rent

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Exercise 8.9 – Period-end Closing
For Closing the Period: Admin > System Configuration > Journal Period
For Closing Entry: Financials > Closing Period
For Generating Journal Entry List: Financials > Reports > Journal Entry List

Step 1: Close the period from January up to the month you are closing.
Step 2: Perform Period End Closing for the year 20XX.
Step 3: Screenshot the closing entry generated in the Journal Entry List.

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