The McGraw-Hill Companies, Inc., Computer Accounting with Peachtree by Sage Complete Accounting 2012, 16e

The McGraw-Hill Companies, Inc., Computer Accounting with Peachtree by Sage Complete Accounting 2012, 16e

31 - IMK

CHAPTER 2

VENDORS

Chapter 2 introduces students to the basic way that PCA works with vendor transactions. The first thing the students do is select from the Navigation Bar to go to the Vendors & Purchases Navigation Center. After recording a purchase order, students record a vendor invoice using the Purchases/Receive Inventory window.The Purchases/Receive Inventory window is also the Purchases Journal.The Apply to Purchases tab is the default. The lower half of the window shows fields for Quantity, Item (inventory items), Description, GL Account, Unit Price, Amount, and Job. The default for the A/P Account is 20000, Accounts Payable. The Purchases/Receive Inventory window looks like a purchase order. Similar to other PCA windows, the icon bar appears at the top of the window.

When Bellwether Garden Supply orders and receives inventory from vendors, Account No. 12000, Inventory, is debited. Accounts Payable and the vendor account are credited. Vendors offer Bellwether a purchase discount for invoices paid within the discount period. The program defaults to 2% 10, Net 30 Days for purchase discounts.

Peachtree is a double-entry accounting system. There is a selection in Options; Global that allows general ledger accounts to be hidden. This is called Accounting Behind the Screens. The PCA windows in the textbook show the general ledger accounts. To check the Accounting Behind the

Screens settings, do the following:

• From the menu bar, click Options, then Global. The A

ccounting tab should be selected. If necessary, click on the radio button next to Manual to select it. The Number of decimal places should be 2.

Computer Accounting with Peachtree by Sage Complete Accounting 2012 16th Edition Yacht Solutions Manual Visit TestBankDeal.com to get complete for all chapters

32 - IMK Chapter 2

The McGraw-Hill Companies, Inc., Computer Accounting with Peachtree by Sage Complete Accounting 2012, 16e

• The boxes in the section Hide General Ledger Accounts must be

unchecked. (If necessary, click on the boxes to uncheck them.)

• Observe that two boxes

need to be checked in the

Other Options section:

Warn if a record was changed but not saved and Recalculate cash balance automatically in Receipts, Payments, and Payroll Entry. Make sure both of these Other Options boxes are checked.

• Click on the G

eneral tab. Make sure the Line Item Entry Display has 2 Line selected; and that the Smart Data Entry area has three boxes checked.

• Click .

LEARNING OBJECTIVES

• Restore data from Exercise 1-2. (This backup was made on textbook

page 51.)

• Enter a purchase order.

• Apply receipt of inventory to existing purchase order.

Vendors 33 - IMK

The McGraw-Hill Companies, Inc., Computer Accounting with Peachtree by Sage Complete Accounting 2012, 16e

• Enter and post a vendor invoice in the Purchases\Receive Inventory

window.

• Go to the Payments window to pay a vendor.

• Print a check in payment of the vendor invoice.

• Add a Terms column to the Vendor Ledgers report.

• Analyze payments and vendor credit memos.

• Export the Vendor List and Vendor Ledgers to Excel.

• Save the Vendor List and Vendor Ledgers as PDF files.

• Make two backups, save two Excel files, and save three PDF files.

1

PCA TIPS, CHAPTER 2

 If the Purchase Orders, Purchases/Receive Inventory, Payments, or Sales/Invoicing windows do not show the general ledger accounts for the accounts payable, accounts receivable, and GL account fields, your students need to check their global settings. To show general ledger accounts on the Payments window and Purchases/Receive Inventory window, see textbook pages 18–19 (Chapter 1, Setting Global Options) and textbook pages 62–63 (Chapter 2). The Vendor windows (Purchase Orders, Purchases/Receive Inventory, and Payments) and Customer windows (Sales Orders, Sales/Invoicing and Receipts) in Computer Accounting with Peachtree by Sage Complete Accounting 2012, 16 th Edition, show the accounts payable, accounts receivable, and G/L account fields.

 Peachtree includes the special journals; for example, the Payments window is the Cash Disbursements Journal; the Purchases/Receive Inventory window is the Purchases Journal.

 Once global options are set for one company, they are in effect for all Peachtree companies. In Chapter 3, Customer Transactions, if the Receipts or Sales/Invoicing window does not show a G/L account field, students should check that the global options are set correctly.

1 Refer to the chart on page 2 - IMK for the size of backups and saved Excel and PDF files.

34 - IMK Chapter 2

The McGraw-Hill Companies, Inc., Computer Accounting with Peachtree by Sage Complete Accounting 2012, 16e  In Windows 7 and Vista, the computer owner is identified when files are backed up or saved. To see which user saved the file, right-click on the Start button, left-click Explore. Go to the location of the backup file; right-click on the filename, left-click Properties. The Security tab shows the Group or user names; the Details tab shows the Owner and Computer name. The time and date is also shown. The same steps can be used to check .ptb files (extension used for Peachtree backups); Excel files (.xlsx and .xls extensions); and Adobe files (.pdf extensions), and Word files (.docx and .doc extensions). To verify student files, you may want to look at the file properties.

LECTURE OUTLINE FOR CHAPTER 2: VENDOR TRANSACTIONS

• Learning Objectives, page 57 (page numbers refer to the student

textbook).

• Getting Started, page 58

• Restoring Data from Exercise 1-2, page 59

• Accounts Payable System, pages 60-61

• The Purchase Order Window, page 62
• Changing Global Settings for Accounting Behind the Screens

(and recording a purchase order), pages 62-67

• Printing Purchase Orders, pages 67-69
• Receive Inventory from a Purchase Order, pages 69-70
• Apply to Purchase Order, pages 70-72
• The Purchases\Receive Inventory Window, pages 72-73
• Adding a New Vendor, pages 73-76
• Entering a Vendor Invoice, pages 76-77
• Editing a Journal Entry, page 78
• Posting a Purchase Transaction, pages 78-79

• Payments to Vendors, pages 79-81

• Printing Checks, pages 81-84

• Displaying the Vendor Ledgers, pages 84-85

• Vendor Credit Memos, pages 85-87