Chapter 12: Vendors & Purchases McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Vendors & Purchases Chapter 12 begins Part 3 of the book: Sage 50 Complete Accounting 2013 for Merchandising Businesses. Merchandising businesses are retail stores that resell goods and services. In Chapter 12, you set up two merchandising businesses: Nancy’s Service Merchandise, a partnership owned by Tony Ziegler and Nancy Ogburn; and Student Name [use your first and last name] Sales and Service, a sole proprietorship. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Accounts Payable Transactions, p. 398 Vendor sends Nancy's Service Merchandise an invoice. You enter the invoice as a purchase. When it is time to pay the invoice, you select the invoice(s) from the vendor you want to pay and print a check. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Sage 50 Tips In Chapter 12, you set up two merchandising businesses: Nancy’s Service Merchandise and the end-of-chapter exercise, Student Name Sales and Service (Exercises 12-1 and 12-2 on pp. 452-461). The companies that you set up in Chapter 12, continue in Chapters 13, 14 and 15. If the general ledger account (GL account field) is not displayed on the Purchases/Receive Inventory window or Payments window, check the global options. In the Hide General Ledger Accounts section, all boxes must be unchecked (see pp. xvi-xviii, Setting Global Options.) Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Sage 50 Tips (continued) What if you want to use Nancy’s Service Merchandise on a computer that does not have this company set up in Sage 50?   If you start Sage 50 and the appropriate company cannot be opened, use the Restore Wizard to select A New Company. Using the appropriate backup file, and the selection for A New Company, you can start where you left off the last time Sage 50 was used. If Nancy’s Service Merchandise (or another name Service Merchandise) is not listed either on the Open an Existing Company window or when you select <Browse>, click Cancel; then Close. From Sage 50’s startup window, there are four menu bar options— File; Options; Services; Help — . Select File; Restore. Restore A New Company from the appropriate backup file. This allows you to bypass creating a new Sage 50 company and restore the company data from a backup file (.ptb extension). Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Backing Up and Saving Files in Chapter 12 Part 3 Introduction, p. 394 Backup (.ptb) Excel (.xlsx) and Adobe (.pdf) Kilobytes Page Nos. Chapter 12 Chart of Accounts.ptb 945 KB 408 Chapter 12 Starting Balance Sheet.ptb 965 KB 411 Chapter 12 Begin.ptb 985 KB 425 Chapter 12.ptb 1,015 KB 449 Chapter 12_CofA_PJ_CDJ_VL_GLTB.xlsx 29 KB 449-451 Exercise 12-1 Chart of Accounts.ptb 911 KB 454 Exercise 12-1_Starting Balance Sheet.ptb 921 KB 456 Exercise 12-1.ptb 913 KB 459 Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Backing Up and Saving Files Chapter 12 (concluded), p. 394 Adobe (.pdf) Kilobytes Page Nos. Exercise 12-2.ptb 935 KB 460 Exercise 12-1_CofA_PJ_CDJ_VL_GLTB.xlsx 28 KB Exercise 12-2_Chart of Accounts.pdf 71 KB 461 Exercise 12-2_Purchase Journal.pdf 50 KB Exercise 12-2_Cash Disbursements Journal.pdf 51 KB Exercise 12-2_Vendor Ledgers.pdf 6 KB Exercise 12-2_General Ledger Trial Balance.pdf Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

How the purchases and payments tasks work together, p. 398 Purchases/Receive Inventory Enter the Vendor Invoice Payments Apply the Vendor Invoice as a Check Print Checks Print the Disbursement Check Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Accounting Software, p. 405 Sage 50 and QuickBooks are used by small companies. As the company grows to mid-size, Sage 50 and Microsoft Dynamics GP can be used. Large companies use MS Dynamics GP. As companies grow in size, their accounting software needs change. Company size No. of employees Small 1-50 Medium 50-500 Large 500+ QuickBooks Sage 50 Microsoft Dynamics GP Small companies to Large companies Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Glossary of Terms Chapter 12 Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Vendors, p. 397 Merchandising businesses purchase the merchandise they sell from suppliers known as vendors. Nancy’s Service Merchandise vendors are shown below and on p. 417. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Accounts payable transactions, p. 397 Purchases of merchandise for resale, assets, or expenses incurred on credit from vendors. When Nancy’s Service Merchandise makes purchases on account from vendors, the transactions are known as accounts payable transactions. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Accounts payable, p. 397 The money a company owes to a supplier or vendor. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Database, p. 405 An organized body of related information. As the database gets larger, the depth of processing increases and more features and functions are available. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Purchase Journal, p. 425 In Sage 50, the Purchases/Receive Inventory window is the purchase journal. In the Purchase Journal, or Purchases/Receive Inventory window, you can enter invoices from vendors or enter and print purchase orders. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

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

Accounts payable ledger, p. 426 Shows the account activity for each vendor. Same as vendor ledger. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Vendor ledger, p. 448 Shows the account activity for each vendor. The vendor ledger is also called the accounts payable ledger. The vendor ledger is shown on p. 448. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Average cost, p. 430 A method of computing inventory. See weighted-average method on the next slide. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Weighted-average method, p. 430 This method of inventory pricing divides the cost of the inventory purchased by the quantity of merchandise purchased. This unit cost is multiplied by the ending inventory. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Cash disbursements journal, p. 431 All payments of cash are recorded in the cash disbursements journal. In Sage 50, the Write Checks and Payments tasks are recorded in the cash disbursements journal. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

Payments window, p. 440 Cash Disbursements Journal The payments window shows a payment to a vendor minus a return and purchase discount.

Online Learning Center Go online to http://www.mhhe.com/yacht2013 for additional resources. Link to Student Edition, select Chapter 12. Interactive Testing: Online multiple-choice and true and false questions. Tests are graded and can be emailed to instructor. Glossary of Terms: Boldfaced/italicized words within chapter. Feature Quizzes: Includes user interface questions, matching, and review of chapter concepts with immediate feedback. Two Videos: Demonstrations of purchases and payments. PowerPoints: Narrated slides. Assessment Rubrics: Reviews journal entries, reports, navigation centers, modules, and task windows. Going to the Net: Internet research. QA Templates: End-of-chapter summary and review questions and analysis question.

Going to the Net Watch brief videos about benefits of Sage 50 Accounting 2013. Go online to http://www.sage50release2013.com/2013features/. Select two videos to watch. List the videos shown on this website. Watch two videos. Briefly describe the features shown. Copyright (c)2014 by the McGraw-Hill Companies, Inc. All rights reserved.

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

Navigation Center/Module Assessment Rubric Date Transaction Navigation Center/Module Task Window Journal Dr./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.