Chapter 12: Chapter 12: Vendors & PurchasesVendors & Purchases

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

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Vendors & PurchasesVendors & Purchases

Chapter 12 begins Part 3 of the book: Sage 50 Chapter 12 begins Part 3 of the book: Sage 50 Complete Accounting 2013 for Merchandising Complete Accounting 2013 for Merchandising Businesses. Businesses.

Merchandising businesses are retail stores that Merchandising businesses are retail stores that resell goods and services. resell goods and services.

In Chapter 12, you set up two merchandising In Chapter 12, you set up two merchandising businesses: Nancy’s Service Merchandise, a businesses: Nancy’s Service Merchandise, a partnership owned by Tony Zieglerpartnership owned by Tony Ziegler and Nancy and Nancy OgburnOgburn; and Student Name [use your first and last ; and Student Name [use your first and last name] Sales and Service, a sole proprietorship.name] Sales and Service, a sole proprietorship.

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Accounts Payable Transactions, p. 398Accounts Payable Transactions, p. 398

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Sage 50 TipsSage 50 Tips

In Chapter 12, you set up two merchandising In Chapter 12, you set up two merchandising businesses: Nancybusinesses: Nancy’s Service’s Service Merchandise and the end- Merchandise and the end-of-chapter exercise, Student Name Sales and Service of-chapter exercise, Student Name Sales and Service (Exercises 12-1 and 12-2 on pp. 452-461).(Exercises 12-1 and 12-2 on pp. 452-461).The companies that you set up in Chapter 12, continue The companies that you set up in Chapter 12, continue in Chapters 13, 14 and 15.in Chapters 13, 14 and 15.If the general ledger account (GL account field) is not If the general ledger account (GL account field) is not displayed on the Purchases/Receive Inventory window displayed on the Purchases/Receive Inventory window or Payments window, check the global options. In the or Payments window, check the global options. In the Hide General Ledger Accounts section, all boxes must Hide General Ledger Accounts section, all boxes must be unchecked (see pp. xvi-xviii, Setting Global Options.)be unchecked (see pp. xvi-xviii, Setting Global Options.)

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Sage 50 Tips (continued)Sage 50 Tips (continued)

What if you want to use NancyWhat if you want to use Nancy’s Service Merchandise’s Service Merchandise on a computer that does not have this company set up on a computer that does not have this company set up in Sage 50?in Sage 50?   

If you start Sage 50 and the appropriate company If you start Sage 50 and the appropriate company cannotcannot be be opened, use the Restore Wizard to select A New Company. Using opened, use the Restore Wizard to select A New Company. Using the appropriate backup file, and the selection for the appropriate backup file, and the selection for A New CompanyA New Company, , you can start where you left off the last time Sage 50 was used.you can start where you left off the last time Sage 50 was used.If Nancy’s Service Merchandise (or another name Service If Nancy’s Service Merchandise (or another name Service Merchandise) is Merchandise) is notnot listed either on the Open an Existing Company listed either on the Open an Existing Company window or when you select <Browse>, click Cancel; then Close. window or when you select <Browse>, click Cancel; then Close. From Sage 50’s startup window, there are four menu bar options— From Sage 50’s startup window, there are four menu bar options— File; Options; Services; Help — .File; Options; Services; Help — .Select File; Restore. Restore Select File; Restore. Restore A New Company A New Company from the appropriate from the appropriate backup file. This allows you to bypass creating a new Sage 50 backup file. This allows you to bypass creating a new Sage 50 company and restore the company data from a backup file (.ptb company and restore the company data from a backup file (.ptb extension).extension).

Backing Up and Saving Files in Chapter 12Backing Up and Saving Files in Chapter 12Part 3 Introduction, p. 394Part 3 Introduction, p. 394

Backup (.ptb)Backup (.ptb)

Excel (.xlsx) and Adobe (.pdf) Excel (.xlsx) and Adobe (.pdf)

KilobytesKilobytes Page Nos.Page Nos.

Chapter 12 Chart of Accounts.ptbChapter 12 Chart of Accounts.ptb 945 KB945 KB 408408

Chapter 12 Starting Balance Sheet.ptbChapter 12 Starting Balance Sheet.ptb 965 KB965 KB 411411

Chapter 12 Begin.ptbChapter 12 Begin.ptb 985 KB985 KB 425425

Chapter 12.ptbChapter 12.ptb 1,015 KB1,015 KB 449449

Chapter 12_CofA_PJ_CDJ_VL_GLTB.xlsxChapter 12_CofA_PJ_CDJ_VL_GLTB.xlsx 29 KB29 KB 449-451449-451

Exercise 12-1 Chart of Accounts.ptbExercise 12-1 Chart of Accounts.ptb 911 KB911 KB 454454

Exercise 12-1_Starting Balance Sheet.ptbExercise 12-1_Starting Balance Sheet.ptb 921 KB921 KB 456456

Exercise 12-1.ptbExercise 12-1.ptb 913 KB913 KB 459459

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Backing Up and Saving Files Chapter 12 Backing Up and Saving Files Chapter 12 (concluded), p. 394(concluded), p. 394

Adobe (.pdf) Adobe (.pdf) KilobytesKilobytes Page Nos.Page Nos.

Exercise 12-2.ptbExercise 12-2.ptb 935 KB935 KB 460460

Exercise 12-1_CofA_PJ_CDJ_VL_GLTB.xlsxExercise 12-1_CofA_PJ_CDJ_VL_GLTB.xlsx 28 KB28 KB 460460

Exercise 12-2_Chart of Accounts.pdfExercise 12-2_Chart of Accounts.pdf 71 KB71 KB 461461

Exercise 12-2_Purchase Journal.pdfExercise 12-2_Purchase Journal.pdf 50 KB50 KB 461461

Exercise 12-2_Cash Disbursements Journal.pdfExercise 12-2_Cash Disbursements Journal.pdf 51 KB51 KB 461461

Exercise 12-2_Vendor Ledgers.pdfExercise 12-2_Vendor Ledgers.pdf 6 KB6 KB 461461

Exercise 12-2_General Ledger Trial Balance.pdfExercise 12-2_General Ledger Trial Balance.pdf 51 KB51 KB 461461

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How the purchases and payments tasks How the purchases and payments tasks work together, p. 398work together, p. 398

Purchases/Receive Inventory

Enter the Vendor Invoice

Payments

Apply the Vendor Invoice as a Check

Print Checks

Print the Disbursement Check

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Accounting Software, p. 405Accounting Software, p. 405Sage 50 and QuickBooks are used by small Sage 50 and QuickBooks are used by small companies. As the company grows to mid-size, companies. As the company grows to mid-size, Sage 50 and Microsoft Dynamics GP can be used. Sage 50 and Microsoft Dynamics GP can be used. Large companies use MS Dynamics GP. As Large companies use MS Dynamics GP. As companies grow in size, their accounting software companies grow in size, their accounting software needs change.needs change.

Small companies to

Largecompanies

Company size

No. of employees

Small 1-50

Medium 50-500

Large 500+

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Glossary of TermsGlossary of TermsChapter 12Chapter 12

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Vendors, p. 397Vendors, p. 397

Merchandising businesses purchase the Merchandising businesses purchase the merchandise they sell from suppliers merchandise they sell from suppliers known as vendors.known as vendors.

Nancy’s Service Merchandise vendors are Nancy’s Service Merchandise vendors are shown below and on p. 417.shown below and on p. 417.

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Accounts payable transactions, p. 397Accounts payable transactions, p. 397

Purchases of merchandise for resale, Purchases of merchandise for resale, assets, or expenses incurred on credit assets, or expenses incurred on credit from vendors.from vendors.

When Nancy’s Service Merchandise When Nancy’s Service Merchandise makes purchases on account from makes purchases on account from vendors, the transactions are known as vendors, the transactions are known as accounts payable transactions.accounts payable transactions.

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Accounts payable, p. 397Accounts payable, p. 397

The money a company owes to a supplier The money a company owes to a supplier or vendor.or vendor.

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Database, p. 405Database, p. 405

An organized body of related information. An organized body of related information. As the database gets larger, the depth of As the database gets larger, the depth of processing increases and more features processing increases and more features and functions are available. and functions are available.

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Purchase Journal, p. 425Purchase Journal, p. 425

In Sage 50, the Purchases/Receive In Sage 50, the Purchases/Receive Inventory window is the purchase journal.Inventory window is the purchase journal.

In the Purchase Journal, or In the Purchase Journal, or Purchases/Receive Inventory window, you Purchases/Receive Inventory window, you can enter invoices from vendors or enter can enter invoices from vendors or enter and print purchase orders. and print purchase orders.

Purchases/Receive Inventory window, p. 429Purchases/Receive Inventory window, p. 429 is Sage 50’s Purchase Journal is Sage 50’s Purchase Journal

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Accounts payable ledger, p. 426Accounts payable ledger, p. 426Shows the account activity for each Shows the account activity for each vendor. Same as vendor ledger.vendor. Same as vendor ledger.

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Vendor ledger, p. 448Vendor ledger, p. 448

Shows the account activity for each vendor. The Shows the account activity for each vendor. The vendor ledger is also called the accounts payable vendor ledger is also called the accounts payable ledger.ledger.

The vendor ledger is shown on p. 448.The vendor ledger is shown on p. 448.

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Average cost, p. 430Average cost, p. 430

A method of computing inventory. See A method of computing inventory. See weighted-average method on the next weighted-average method on the next slide.slide.

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Weighted-average method, p. 430Weighted-average method, p. 430

This method of inventory pricing divides This method of inventory pricing divides the cost of the inventory purchased by the the cost of the inventory purchased by the quantity of merchandise purchased. This quantity of merchandise purchased. This unit cost is multiplied by the ending unit cost is multiplied by the ending inventory.inventory.

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Cash disbursements journal, p. 431Cash disbursements journal, p. 431

All payments of cash are recorded in the All payments of cash are recorded in the cash disbursements journal.cash disbursements journal.

In Sage 50, the Write Checks and In Sage 50, the Write Checks and Payments tasks are recorded in the cash Payments tasks are recorded in the cash disbursements journal.disbursements journal.

Payments window, p. 440Payments window, p. 440Cash Disbursements JournalCash Disbursements Journal

The payments window shows a payment to a vendor The payments window shows a payment to a vendor minus a return and purchase discount.minus a return and purchase discount.

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

Link to Link to Student EditionStudent Edition, select Chapter 12., select Chapter 12.

o Interactive TestingInteractive Testing: Online multiple-choice and true and false : Online multiple-choice and true and false questions. Tests are graded and can be emailed to instructor.questions. Tests are graded and can be emailed to instructor.

o Glossary of TermsGlossary of Terms: Boldfaced/italicized words within chapter.: Boldfaced/italicized words within chapter.o Feature QuizzesFeature Quizzes: Includes user interface questions, matching, and : Includes user interface questions, matching, and

review of chapter concepts with immediate feedback.review of chapter concepts with immediate feedback.o Two VideosTwo Videos: Demonstrations of purchases and payments. : Demonstrations of purchases and payments. o PowerPointsPowerPoints: Narrated slides.: Narrated slides.o Assessment RubricsAssessment Rubrics: Reviews journal entries, reports, navigation : Reviews journal entries, reports, navigation

centers, modules, and task windows.centers, modules, and task windows.o Going to the NetGoing to the Net: Internet research.: Internet research.o QA TemplatesQA Templates: End-of-chapter summary and review questions and : End-of-chapter summary and review questions and

analysis question.analysis question.

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Going to the NetGoing to the NetWatch brief videos about benefits of Sage 50 Watch brief videos about benefits of Sage 50 Accounting 2013. Go online to Accounting 2013. Go online to http://www.sage50release2013.com/2013features/. .

Select two videos to watch.Select two videos to watch.

1.1. List the videos shown on this website. Watch two videos.List the videos shown on this website. Watch two videos.

2.2. Briefly describe the features shown.Briefly describe the features shown.

Analysis QuestionAnalysis Question

What is the balance in the Accounts What is the balance in the Accounts Payable account, Nancy’s Service Payable account, Nancy’s Service Merchandise? Why? Merchandise? Why?

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Assessment RubricAssessment Rubric

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Date TransactionNavigation

Center/ModuleTask

WindowJournalDr./Cr.

1/3 Invoice No. 480CP was received from Curt Perkins Tools for the purchase of 10 tool kits for a unit cost of $30.

1/6 Returned two tool kits to Curt Perkins Tools, Invoice No. 480CP. Paid $30 for each tool kit: VCM480CP.

1/10 Issued Check No. 2021 to Curt Perkins Tools for merchandise purchased on January 3, less the January 6 return, Invoice No. 480CP.