Chapter 2: Chapter 2: Vendor TransactionsVendor Transactions

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Vendor TransactionsVendor Transactions

In Chapter 2, you learn how Peachtree handles In Chapter 2, you learn how Peachtree handles Accounts Payable transactions with vendors Accounts Payable transactions with vendors

When Bellwether Garden Supply orders and receives When Bellwether Garden Supply orders and receives inventory from vendors, Account No. 12000, Inventory, is inventory from vendors, Account No. 12000, Inventory, is debited. Accounts Payable and the vendor account is debited. Accounts Payable and the vendor account is credited.credited.

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Software Objectives, p. 51Software Objectives, p. 51Restore data from Exercise 1-2. (This back up Restore data from Exercise 1-2. (This back up was made on p. 47.)was made on p. 47.)Enter a purchase order.Enter a purchase order.Enter and post a vendor invoice in the Enter and post a vendor invoice in the Purchases/Receive Inventory window.Purchases/Receive Inventory window.Go to the Payments window to pay a vendor.Go to the Payments window to pay a vendor.Print a check in payment of the vendor Print a check in payment of the vendor invoice.invoice.Analyze payments and vendor credit memos.Analyze payments and vendor credit memos.Make two backups: back up Chapter 2 data Make two backups: back up Chapter 2 data and back up Exercise 2-2 data.and back up Exercise 2-2 data.

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Web Objectives, p. 51Web Objectives, p. 51

Use your Internet browser to go to the book’s Use your Internet browser to go to the book’s website at website at www.mhhe.com/yacht2005www.mhhe.com/yacht2005

Complete the Internet activity for Accounting Complete the Internet activity for Accounting Students.Students.

Use a word processing program to write a summary Use a word processing program to write a summary about the website(s) that you visited.about the website(s) that you visited.

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Peachtree TipsPeachtree Tips

In Chapter 1 on p. 47, you backed up In Chapter 1 on p. 47, you backed up (saved) Exercise 1-2. In order to begin (saved) Exercise 1-2. In order to begin where you left off, you restore your data from where you left off, you restore your data from Exercise 1-2. Restoring will allow you to start Exercise 1-2. Restoring will allow you to start where you left off at the end of Chapter 1. where you left off at the end of Chapter 1.

The work in Chapters 1-7 is cumulative. The work in Chapters 1-7 is cumulative. Chapter 7’s financial statements will reflect Chapter 7’s financial statements will reflect within chapter activities within chapter activities andand end-of-chapter end-of-chapter exercises.exercises.

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Peachtree TipsPeachtree Tips

Change global settings to show general ledger accounts, p. 54, Change global settings to show general ledger accounts, p. 54, (Options; Global). If the boxes are checked, then general ledger (Options; Global). If the boxes are checked, then general ledger accounts (GL Account column) are hidden on the Tasks windows. accounts (GL Account column) are hidden on the Tasks windows. Make sure the boxes are unchecked so that the general ledger Make sure the boxes are unchecked so that the general ledger accounts will show on the Tasks windows.accounts will show on the Tasks windows.

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Peachtree TipsPeachtree Tips

Peachtree defaults to hiding the general ledger Peachtree defaults to hiding the general ledger accounts. This is called Accounting Behind the accounts. This is called Accounting Behind the Screens. (p. 54)Screens. (p. 54)

The illustrations in the book show the general The illustrations in the book show the general ledger accounts.ledger accounts.

Once you set global options for one company, Once you set global options for one company, they are in effect for all Peachtree companies.they are in effect for all Peachtree companies.

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Backing Up Chapter 2Backing Up Chapter 2In Chapter 2, you make two backups. The Chapter 2.ptb backup is made on page 78 and the Exercise 2-2.ptb backup is made on page 85. Refer to the chart shown on page 2 in the textbook.

Backup NameBackup Name KBKB Pg Nos.Pg Nos.

Chapter 2.ptbChapter 2.ptb 2,475 KB2,475 KB 7878

Exercise 2-2.ptbExercise 2-2.ptb 2,480 KB2,480 KB 8585

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Chapter 2 TopicsChapter 2 Topics1.1. Software & Web Objectives, p. 51Software & Web Objectives, p. 512.2. Getting Started, p. 52Getting Started, p. 523.3. Restoring data from Chapter 1, pp. 52-53Restoring data from Chapter 1, pp. 52-534.4. Accounts payable tasks, p. 53Accounts payable tasks, p. 53

a. The purchase order window, p. 53a. The purchase order window, p. 53b. Changing global settings for Accounting Behind the b. Changing global settings for Accounting Behind the

Screens, pp. 54-59Screens, pp. 54-59c. Printing purchase orders, pp. 59-60c. Printing purchase orders, pp. 59-60d. The Purchases/Receive Inventory window, pp. 60-62d. The Purchases/Receive Inventory window, pp. 60-62e. Adding a new vendor, pp. 62-65e. Adding a new vendor, pp. 62-65f. Entering a vendor invoice, pp. 65-67f. Entering a vendor invoice, pp. 65-67g. Posting a purchase transaction, p. 67g. Posting a purchase transaction, p. 67

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Chapter 2 Topics (concluded)Chapter 2 Topics (concluded)5.5. Payments to vendors, pp. 68-70Payments to vendors, pp. 68-706.6. Printing checks, pp. 70-73Printing checks, pp. 70-737.7. Displaying the vendor ledgers, pp. 73-74Displaying the vendor ledgers, pp. 73-748.8. Vendor credit memos, pp. 75-77Vendor credit memos, pp. 75-779.9. Backing Up Chapter 2 data, pp. 77-78Backing Up Chapter 2 data, pp. 77-7810.10. Internet activity, p. 78Internet activity, p. 7811.11. Summary & Review, p. 78-79Summary & Review, p. 78-79

a. Going to the net, p. 79a. Going to the net, p. 79b.b. Multiple choice questions, pp. 79-82Multiple choice questions, pp. 79-82c. Exercise 2-1, pp. 82-84c. Exercise 2-1, pp. 82-84d. Exercise 2-2, pp. 84-85d. Exercise 2-2, pp. 84-85e. Chapter 2 index, p. 86e. Chapter 2 index, p. 86

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Changing Global Setting for Accounting Changing Global Setting for Accounting Behind the Screens, pp. 54Behind the Screens, pp. 54

From the menu bar, click on Options, Global. From the menu bar, click on Options, Global.

The boxes in the section Hide General Ledger The boxes in the section Hide General Ledger Accounts Accounts mustmust be unchecked, p. 54. be unchecked, p. 54.

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Changing Global Setting for Accounting Changing Global Setting for Accounting Behind the Screens (concluded), p. 54Behind the Screens (concluded), p. 54

In the Other Options In the Other Options area, two boxes are area, two boxes are checked. checked.

Click on the Click on the GGeneral eneral tab. Make sure the tab. Make sure the Line Item Entry Line Item Entry Display and Smart Display and Smart Data Entry match Data Entry match what is shown. Click what is shown. Click <OK>.<OK>.

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Purchase Orders window, p. 55Purchase Orders window, p. 55From the menu bar, click on Tasks, then select Purchase From the menu bar, click on Tasks, then select Purchase Orders.Orders.

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Vendor drop-down list, p. 56Vendor drop-down list, p. 56Select ABNEY, Abney and Son Contractors, as the vendor. (This is Select ABNEY, Abney and Son Contractors, as the vendor. (This is step 6 on page 56.)step 6 on page 56.)

Continue with steps 7 and 8 on pages 56. Read the Comment box Continue with steps 7 and 8 on pages 56. Read the Comment box on p. 56. If necessary, make changes to the Options; Global on p. 56. If necessary, make changes to the Options; Global Decimal Entry selection.Decimal Entry selection.

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Completed Purchase Order, p. 58Completed Purchase Order, p. 58After completing steps 9 - 14 on pages 57 and 58, the After completing steps 9 - 14 on pages 57 and 58, the completed Purchase Orders window is shown.completed Purchase Orders window is shown.

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Accounting Behind the Screens, Accounting Behind the Screens, Purchase Order Journal, p. 59Purchase Order Journal, p. 59

From the completed Purchase Orders window, click on the From the completed Purchase Orders window, click on the Journal icon.Journal icon.

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Printing Purchase Orders, pp. 59-60Printing Purchase Orders, pp. 59-60

After completing steps 1 and 2 on p. 59, the purchase order After completing steps 1 and 2 on p. 59, the purchase order prints. This purchase order is shown on p. 60.prints. This purchase order is shown on p. 60.

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Purchases/Receive Inventory, p. 61Purchases/Receive Inventory, p. 61From the menu bar, select Tasks, then Purchases/Receive From the menu bar, select Tasks, then Purchases/Receive Inventory.Inventory.

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Maintain Vendors, p. 62Maintain Vendors, p. 62The Maintain Vendors window appears when you The Maintain Vendors window appears when you press the plus key <+> in the Vendor Ipress the plus key <+> in the Vendor IDD field. field.

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Completed Purchases/Receive Completed Purchases/Receive Inventory window, p. 65-67Inventory window, p. 65-67

After completing the steps on pages 65-67, the completed After completing the steps on pages 65-67, the completed Purchases/Receive Inventory window is shown.Purchases/Receive Inventory window is shown.

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Payments window, p. 68Payments window, p. 68From the menu bar, select Tasks, then Payments.From the menu bar, select Tasks, then Payments.

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Completed Payments window, p. 69Completed Payments window, p. 69The completed Payments window is shown on The completed Payments window is shown on page 69.page 69.

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Select a Report, p. 71Select a Report, p. 71From the menu bar, select Reports, then Accounts Payable.From the menu bar, select Reports, then Accounts Payable.

Scroll down the Report list. Double-click on the Disbursement Scroll down the Report list. Double-click on the Disbursement Checks folder to open it. Then, click on AP Preprint 1 Stub.Checks folder to open it. Then, click on AP Preprint 1 Stub.

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Vendor Ledgers, p. 74Vendor Ledgers, p. 74From the menu bar, select Reports, Accounts Payable, From the menu bar, select Reports, Accounts Payable, highlight Vendor Ledgers, then select highlight Vendor Ledgers, then select

Chapter 2 Chapter 2 Glossary of TermsGlossary of Terms

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Purchase discount, p. 51Purchase discount, p. 51

Cash discounts from vendors in return for Cash discounts from vendors in return for early payment of an invoice, for example, early payment of an invoice, for example, 2% 10 days, net 30.2% 10 days, net 30.

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Purchase orders, p. 53Purchase orders, p. 53

Purchase orders are used to place an Purchase orders are used to place an order from a vendor.order from a vendor.

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Coding system, p. 62Coding system, p. 62

A combination of letters and numbers A combination of letters and numbers that are used to identify customers that are used to identify customers and vendors. The coding system is and vendors. The coding system is case sensitive, for example AAA-Land case sensitive, for example AAA-Land is not the same as aaa-Land.is not the same as aaa-Land.

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Case sensitive, p. 63Case sensitive, p. 63

Refers to the use of lowercase and Refers to the use of lowercase and uppercase letters. When coding a customer uppercase letters. When coding a customer or vendor number, you must use either a or vendor number, you must use either a capital or lowercase letter. For example, capital or lowercase letter. For example, AALAND is not the same as aaland.AALAND is not the same as aaland.

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Chapter 2, Internet Activity, p. 78Chapter 2, Internet Activity, p. 781.1. Go to the book’s website at Go to the book’s website at

www.mhhe.com/yacht2005www.mhhe.com/yacht2005

2.2. In the Student Edition list, link to Internet Activities.In the Student Edition list, link to Internet Activities.

3.3. Link to Link to WEB EXERCISES PART 1WEB EXERCISES PART 1..

4.4. Scroll down to ACCOUNTING STUDENTS – Scroll down to ACCOUNTING STUDENTS – Chapter 2. Complete steps 1-3.Chapter 2. Complete steps 1-3.

5.5. Using a word processing program, write a summary Using a word processing program, write a summary about the sites you selected. Include the website about the sites you selected. Include the website address in your summary (maximum length, 75 address in your summary (maximum length, 75 words; minimum length, 50 words.words; minimum length, 50 words.

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Going to the Net, p. 79Going to the Net, p. 79

Access information about domain name Access information about domain name statistics at:statistics at:

http://http://www.zooknic.com/Domains/counts.htmlwww.zooknic.com/Domains/counts.html..

1.1. gTLD is an abbreviation for what word(s)?gTLD is an abbreviation for what word(s)?

2.2. What is the number of domain names What is the number of domain names worldwide?worldwide?

3.3. How many .com names are there? How many .com names are there?

4.4. List the extensions that are used with domain List the extensions that are used with domain names names