Chapter 2: Vendors McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. Vendor Transactions In Chapter 2, you learn how Sage 50 handles Accounts Payable transactions with vendors When Bellwether Garden Supply orders and receives inventory from vendors, Account No. 12000, Inventory, is debited. Accounts Payable and the vendor account is credited. 2 of 16 Sage 50 Tips In Chapter 1, you backed up or saved Exercise 1-2. In order to begin where you left off, [if necessary] restore data from Exercise 1-2. Restoring allows you to start where you left off after completing Exercise 1-2. Sage 50 includes the special journals; for example, the Payments window is the Cash Disbursements Journal; the Purchases/Receive Inventory window is the Purchase Journal. The work in Chapters 1-7 is cumulative. Chapter 7’s financial statements reflect within chapter activities and end-of-chapter exercises. 3 of 16 Sage 50 Tips From the menu bar, select Options; Global to change the global settings. If the boxes in the Hide General Ledger Accounts area are checked, then general ledger accounts are hidden. Make sure the boxes in the Hide General Ledger Accounts section are unchecked so that there is a GL Account field on the Purchase Orders, Purchases/Receive Inventory, Payments window and others. 4 of 16 Sage 50 Tips Sage 50 defaults to hiding the general ledger accounts. This is called Accounting Behind the Screens. The illustrations in the book show the general ledger accounts. This means there is a GL Account field on the Purchase Orders, Purchases/Receive Inventory, Payments, Sales Invoicing, and Receipts windows. Once you set global options for one company, they are in effect for all Sage 50 companies. 5 of 16 Backing Up Chapter 2 In Chapter 2, you make two backups, save two Excel files, and save four PDF files. Refer to the chart shown on textbook pages 2-3 to see all the backups and files saved in Part 1 (Chapters 1-8). Backup Name Excel Reports and PDF Files Chapter 2.ptb KB Pg. Nos. 3,715 KB 85 Chapter 2_Vendor List and Ledgers.xlsx 21 KB 85-87 Chapter 2_Vendor List.pdf 53 KB 87-88 Chapter 2_Vendor Ledgers.pdf 82 KB 88 3,703 KB 90 Exercise 2-2_Vendor List and Ledgers.xlsx 21 KB 90 Exercise 2-2_Vendor Ledgers.pdf 68 KB 90 Exercise 2-2_Purchase Order Register.pdf 51 KB 90 Exercise 2-2.ptb 6 of 16 Chapter 2 Glossary of Terms 7 of 16 Purchase discount, p. 55 Cash discounts from vendors in return for early payment of an invoice, for example, 2% 10 days, net 30. 8 of 16 Accounts Payable System, p. 57 Sage 50’s Accounts Payable System provides the summary information needed for the entry that credits Accounts Payable and debits the various asset and expense accounts that the vendor invoices represent. Since Bellwether Garden Supply buys on credit from a number of vendors, the company keeps close track of the amount owed and the due dates of the bills. The Navigation Bar’s Vendors & Purchases selection shows the accounts payable module or accounts payable system. 9 of 16 Purchase orders, p. 60 Purchase orders are used to place an order with a vendor. Purchase Orders, abbreviated PO, authorize the vendor to ship the ordered merchandise at the stated price and terms. 10 of 16 Coding system, p. 71 A combination of letters and numbers that are used to identify customers and vendors. A coding system is set up for Bellwether Garden Supply’s vendors. Bellwether’s coding system uses uppercase letters; for example, Armenta’s Landscaping is coded as ARMENTA. 11 of 16 Case sensitive, p. 71 Refers to the use of lowercase and uppercase letters. When coding a customer or vendor, you should be consistent in the use of either capital or lowercase letters. For example, armenta is not the same as ARMENTA. 12 of 16 Online Learning Center  Go online to http://www.mhhe.com/yacht2013 for additional resources. Link to Student Edition, select Chapter 2. o Interactive Testing o Glossary of Terms o Feature Quizzes o Narrated PowerPoints o Assessment Rubric o Going to the Net o QA Templates 13 of 16 Going to the Net Access information about the Internet Corporation for Assigned Names (ICANN) at http://www.icann.org/en/resources/registries/about 1. What is a TLD and gTLD? 2. What gTLDs are operated under contract with ICANN? 3. What types of gTLDs are there? Briefly explain sponsored and unsponsored gTLDs. 14 of 16 Analysis Questions With the Vendors & Payables Navigation Center serving as the starting point to perform tasks related to Accounts Payable, list five Vendors & Purchases Tasks. Briefly describe the Vendor Management Center. 15 of 16 Assessment Rubric Date Transaction 3/15 Invoice No. H788 was received from Office Supplies & More for the purchase of five boxes of letter-size file folders, $10.95 each. 3/18 Pay Office Supplies & More for Invoice H788, $53.85 Navigation Center/Module Task Window Journal Dr./Cr. 16 of 16