1. 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.

2. 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.

3. 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.

4. 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 ).
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.

5. 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.

6. 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
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.

7. 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.

8. 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.

9. 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.

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

11. 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.

12. 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.

13. 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.

14. 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.

15. 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.

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

17. 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.

18. 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.

19. 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.

20. 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.

21. 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.

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

23. Online Learning Center
Go online to 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 ed 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.

24. Going to the Net
Watch brief videos about benefits of Sage 50 Accounting Go online to
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.

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

26. 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 to Curt Perkins Tools for merchandise purchased on January 3, less the January 6 return, Invoice No. 480CP.