Chapter 2: Chapter 2: VendorsVendors

Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Vendor TransactionsVendor Transactions

In Chapter 2, you learn how Sage 50 handles Accounts In Chapter 2, you learn how Sage 50 handles Accounts Payable transactions with vendors 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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Sage 50 TipsSage 50 Tips

In Chapter 1, you backed up or saved Exercise 1-2. In In Chapter 1, you backed up or saved Exercise 1-2. In order to begin where you left off, [if necessary] restore order to begin where you left off, [if necessary] restore data from Exercise 1-2. Restoring allows you to start data from Exercise 1-2. Restoring allows you to start where you left off after completing Exercise 1-2.where you left off after completing Exercise 1-2.Sage 50 includes the special journals; for example, the Sage 50 includes the special journals; for example, the Payments window is the Cash Disbursements Journal; Payments window is the Cash Disbursements Journal; the Purchases/Receive Inventory window is the the Purchases/Receive Inventory window is the Purchase Journal.Purchase Journal.The work in Chapters 1-7 is cumulative. Chapter 7’s The work in Chapters 1-7 is cumulative. Chapter 7’s financial statements reflect within chapter activities financial statements reflect within chapter activities andand end-of-chapter exercises.end-of-chapter exercises.

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Sage 50 Tips Sage 50 Tips From the menu bar, select Options; Global to change the global From the menu bar, select Options; Global to change the global settings. If the boxes in the Hide General Ledger Accounts area are settings. If the boxes in the Hide General Ledger Accounts area are checked, then general ledger accounts are hidden. Make sure the checked, then general ledger accounts are hidden. Make sure the boxes in the Hide General Ledger Accounts section are boxes in the Hide General Ledger Accounts section are uncheckedunchecked so that there is a GL Account field on the Purchase Orders, so that there is a GL Account field on the Purchase Orders, Purchases/Receive Inventory, Payments window and others.Purchases/Receive Inventory, Payments window and others.

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Sage 50 TipsSage 50 Tips

Sage 50 defaults to hiding the general ledger Sage 50 defaults to hiding the general ledger accounts. This is called Accounting Behind the accounts. This is called Accounting Behind the Screens. Screens.

The illustrations in the book show the general The illustrations in the book show the general ledger accounts. This means there is a GL ledger accounts. This means there is a GL Account field on the Purchase Orders, Account field on the Purchase Orders, Purchases/Receive Inventory, Payments, Sales Purchases/Receive Inventory, Payments, Sales Invoicing, and Receipts windows.Invoicing, and Receipts windows.

Once you set global options for one company, Once you set global options for one company, they are in effect for all Sage 50 companies.they are in effect for all Sage 50 companies.

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Backing Up Chapter 2Backing Up Chapter 2In 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 NameBackup Name

Excel Reports and PDF FilesExcel Reports and PDF Files KBKB Pg. Nos.Pg. Nos.

Chapter 2.ptbChapter 2.ptb 3,715 KB3,715 KB 8585

Chapter 2_Vendor List and Ledgers.xlsxChapter 2_Vendor List and Ledgers.xlsx 21 KB21 KB 85-8785-87

Chapter 2_Vendor List.pdfChapter 2_Vendor List.pdf 53 KB53 KB 87-8887-88

Chapter 2_Vendor Ledgers.pdfChapter 2_Vendor Ledgers.pdf 82 KB82 KB 8888

Exercise 2-2.ptbExercise 2-2.ptb 3,703 KB3,703 KB 9090

Exercise 2-2_Vendor List and Ledgers.xlsxExercise 2-2_Vendor List and Ledgers.xlsx 21 KB21 KB 9090

Exercise 2-2_Vendor Ledgers.pdfExercise 2-2_Vendor Ledgers.pdf 68 KB68 KB 9090

Exercise 2-2_Purchase Order Register.pdfExercise 2-2_Purchase Order Register.pdf 51 KB51 KB 9090

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Chapter 2 Chapter 2 Glossary of TermsGlossary of Terms

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Purchase discount, p. 55Purchase discount, p. 55

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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Accounts Payable System, p. 57Accounts Payable System, p. 57Sage 50’s Accounts Payable System provides the summary information needed for the 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 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 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 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 dates of the bills. The Navigation Bar’s Vendors & Purchases selection shows the accounts payable module or accounts payable system.accounts payable module or accounts payable system.

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Purchase orders, p. 60Purchase orders, p. 60

Purchase orders are used to place an Purchase orders are used to place an order with a vendor. Purchase Orders, order with a vendor. Purchase Orders, abbreviated PO, authorize the vendor to abbreviated PO, authorize the vendor to ship the ordered merchandise at the ship the ordered merchandise at the stated price and terms.stated price and terms.

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Coding system, p. 71Coding system, p. 71

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. A coding system is set and vendors. A coding system is set up for Bellwether Garden Supply’s up for Bellwether Garden Supply’s vendors. Bellwether’s coding system vendors. Bellwether’s coding system uses uppercase letters; for example, uses uppercase letters; for example, Armenta’s Landscaping is coded as Armenta’s Landscaping is coded as ARMENTA.ARMENTA.

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Case sensitive, p. 71Case sensitive, p. 71

Refers to the use of lowercase and uppercase Refers to the use of lowercase and uppercase letters. When coding a customer or vendor, you letters. When coding a customer or vendor, you should be consistent in the use of either capital or should be consistent in the use of either capital or lowercase letters. For example, armenta is not lowercase letters. For example, armenta is not the same as ARMENTA.the same as ARMENTA.

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Online Learning CenterOnline Learning Center Go online to Go online to http://www.mhhe.com/yacht2013 for for

additional resources. Link to additional resources. Link to Student EditionStudent Edition, select , select Chapter 2.Chapter 2.

o Interactive TestingInteractive Testingo Glossary of TermsGlossary of Termso Feature QuizzesFeature Quizzeso Narrated PowerPointsNarrated PowerPointso Assessment RubricAssessment Rubrico Going to the NetGoing to the Neto QA TemplatesQA Templates

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Going to the NetGoing to the NetAccess information about the Internet Corporation Access information about the Internet Corporation for Assigned Names (ICANN) at for Assigned Names (ICANN) at http://www.icann.org/en/resources/registries/about

1.1. What is a TLD and gTLD?What is a TLD and gTLD?2.2. What gTLDs are operated under contract with What gTLDs are operated under contract with

ICANN?ICANN?3.3. What types of gTLDs are there? Briefly explain What types of gTLDs are there? Briefly explain

sponsored and unsponsored gTLDs.sponsored and unsponsored gTLDs.

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Analysis QuestionsAnalysis Questions

With the Vendors & Payables Navigation With the Vendors & Payables Navigation Center serving as the starting point to Center serving as the starting point to perform tasks related to Accounts perform tasks related to Accounts Payable, list five Vendors & Purchases Payable, list five Vendors & Purchases Tasks.Tasks.

Briefly describe the Vendor Management Briefly describe the Vendor Management Center.Center.

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Assessment RubricAssessment Rubric

Date TransactionNavigation

Center/ModuleTask

WindowJournalDr./Cr.

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

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