Chapter 12: Chapter 12: Vendors & PurchasesVendors & Purchases

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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 2015 for Merchandising Complete Accounting 2015 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: Cindy’s Service Merchandise, a businesses: Cindy’s Service Merchandise, a partnership owned by Eric Lanningpartnership owned by Eric Lanning and Cindy and Cindy BartonBarton; and Student Name [use your last name] ; and Student Name [use your last name] Sales and Service, a sole proprietorship.Sales and Service, a sole proprietorship.

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Accounts Payable TransactionsAccounts Payable Transactions

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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: Cindybusinesses: Cindy’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).(Exercises 12-1 and 12-2).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.be unchecked.

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Sage 50 Tips (continued)Sage 50 Tips (continued)What if you want to use CindyWhat if you want to use Cindy’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 opened, use the Restore Wizard to select Create a new company Create a new company using the restored datausing the restored data. The . The Create a new company using the Create a new company using the restored datarestored data selection allows you to restore your backup data, and selection allows you to restore your backup data, and set up the company .set up the company .If Cindy’s Service Merchandise (or another name Service If Cindy’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 the appropriate backup file using the Select File; Restore. Restore the appropriate backup file using the Create a new company using the restored data Create a new company using the restored data selection. This selection. This allows you to bypass creating a new Sage 50 company and restore allows you to bypass creating a new Sage 50 company and restore the company data from a backup file (.ptb extension).the company data from a backup file (.ptb extension).

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Backing Up and Saving Files in Chapter 12Backing Up and Saving Files in Chapter 12Part 3 IntroductionPart 3 Introduction

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 953 KB953 KB 414414

Chapter 12 Starting Balance Sheet.ptbChapter 12 Starting Balance Sheet.ptb 959 KB959 KB 417417

Chapter 12 Begin.ptbChapter 12 Begin.ptb 974 KB974 KB 431431

Chapter 12.ptbChapter 12.ptb 1,051 KB1,051 KB 454454

Chapter 12_CofA_PJ_CDJ_VL_GLTB.xlsxChapter 12_CofA_PJ_CDJ_VL_GLTB.xlsx 29 KB29 KB 455-457455-457

Exercise 12-1 Chart of Accounts.ptbExercise 12-1 Chart of Accounts.ptb 911 KB911 KB 460460

Exercise 12-1_Starting Balance Sheet.ptbExercise 12-1_Starting Balance Sheet.ptb 917 KB917 KB 461461

Exercise 12-1.ptbExercise 12-1.ptb 925 KB925 KB 465465

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Backing Up and Saving Files Chapter 12 Backing Up and Saving Files Chapter 12 (concluded)(concluded)

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

Exercise 12-2.ptbExercise 12-2.ptb 941 KB941 KB 466466

Exercise 12-1_CofA_PJ_CDJ_VL_GLTB.xlsxExercise 12-1_CofA_PJ_CDJ_VL_GLTB.xlsx 28 KB28 KB 466-468466-468

Exercise 12-2_Chart of Accounts.pdfExercise 12-2_Chart of Accounts.pdf 58 KB58 KB 467467

Exercise 12-2_Purchase Journal.pdfExercise 12-2_Purchase Journal.pdf 48 KB48 KB 467467

Exercise 12-2_Cash Disbursements Journal.pdfExercise 12-2_Cash Disbursements Journal.pdf 49 KB49 KB 467467

Exercise 12-2_Vendor Ledgers.pdfExercise 12-2_Vendor Ledgers.pdf 48 KB48 KB 467467

Exercise 12-2_General Ledger Trial Balance.pdfExercise 12-2_General Ledger Trial Balance.pdf 49 KB49 KB 467467

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How the purchases and payments tasks How the purchases and payments tasks work togetherwork together

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 SoftwareAccounting SoftwareSage 50 and QuickBooks Desktop and QuickBooks Sage 50 and QuickBooks Desktop and QuickBooks Online are used by small companies. As the Online are used by small companies. As the company grows to mid-size, Sage 50 and Microsoft company grows to mid-size, Sage 50 and Microsoft Dynamics GP can be used. Large companies use MS Dynamics GP can be used. Large companies use MS Dynamics GP. As companies grow in size, their Dynamics GP. As companies grow in size, their accounting software needs change.accounting software 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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VendorsVendors

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

Cindy’s Service Merchandise vendors are Cindy’s Service Merchandise vendors are shown below.shown below.

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Accounts payable transactionsAccounts payable transactions

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 Cindy’s Service Merchandise When Cindy’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 payableAccounts payable

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

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DatabaseDatabase

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 JournalPurchase Journal

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.

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Purchases/Receive Inventory windowPurchases/Receive Inventory window is Sage 50’s Purchase Journal is Sage 50’s Purchase Journal

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Accounts payable ledgerAccounts payable ledgerShows 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 ledgerVendor ledger

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.

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Average costAverage cost

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 methodWeighted-average method

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 journalCash disbursements journal

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.

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Payments windowPayments windowCash 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 www.mhhe.com/yacht2015 for additional resources. Link Go online to www.mhhe.com/yacht2015 for additional resources. Link

to 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 two Sage 50 YouTube videos at Watch two Sage 50 YouTube videos at http://sagecity.na.sage.com/support_communities/sage50_accounting_ushttp://sagecity.na.sage.com/support_communities/sage50_accounting_us/m/sage50us_videos/default.aspx/m/sage50us_videos/default.aspx

1.1. 30_inventory_reports.30_inventory_reports.

2.2. Saving Time with the Vendor Management Center.Saving Time with the Vendor Management Center.

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

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Analysis QuestionAnalysis Question

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

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Assessment RubricAssessment Rubric

Date TransactionNavigation

Center/ModuleTask

WindowJournalDr./Cr.

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

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

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

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