How to Maintain Vendor Account and Record Vendor Defaults

How to maintain Vendor Account?

                                Vendor Account: Vendors are the persons from whom company purchase goods or services. To maintain vendors account in peach-tree accounting the procedure will be followed as

First of all you go to “maintain” menu and select “Vendors…” the following picture will appear.

Here there are tow main filed that software want from you to fill it. First one is header and second includes General tab, purchase defaults tab, custom fields and history.

Header field:

                

Vendor ID:

                Here you can give id to your custom and there is small look-up button to se your existing accounts to search you can use left-arrow and right-arrow.

Name: here you can give name of your vendor to peach-tree accounting software.

Inactive check box: There is small check box which is used for ending fiscal year with your vendor and if you deal with that vendor how marked check box the software will warn you at the time of dealing.

This is the second part of vendor Account which includes General tab, Purchase Defaults tab, Custom Fields tab, and history tab.

General Tab:

·         It includes information like contact, Address, Account Num, City, country. Telephone number, fax, Email Address and website.

·         Vendor Type: if you have many vendors you can write here type of vendor e.g. Service Vendor or product vendor.

·         1099 Type: this information is useful if you pay more than $600 annually to your contract labor. This information is useful for European countries.

·         Beginning Balance: here you add beginning balance for vendor but it only useful when vendor account is already established.

Purchase Defaults Tab:

                

Purchase Rep: Here you can enter Purchase representative account for vendors.

Purchase Account: Here you can enter General ledger account for vendor ‘s dealing such as inventory account.

Tax ID#: her you can enter vendor’s tax ID number; this information is useful if you select “1099 Type” from General Tab.

Ship Via: here you can select the carriers used by vendor to carry goods.

Term 2% 10, Net 30 days: if you select this standard option it means if you pay in or under 10 days you will receive 2% discount.

Form Delivery options:

·         Delivery Method: you can give delivery information in paper form or E-Mail form.

·         CC Purchase Rep: When Sending E-mail: this is a check box which give authority to software to send auto email to vendor.

Custom Fields Tab:

In this field you can ad any information that you want to write about your vendor and this information can be changed at any time. This is only for over view purpose about your vendor.

History Tab:

                     

Here you can see past dealing history with your vendors.

Vendor Since: here you can add information when vendor you have vendor account.

Last Invoice Date: Here you can add date when you last time deal with your vendor.

Last invoice amount: here you can add amount that you have to pay last time to your vendor.

Last payment date: here you can add information when you last time pay to your vendor.

Last Payment Amount: Here you can add information what amount you pay to your vendor on due date.

Vendor Defaults Information

You have to go maintain Manu and select defaults information form which you can easily see vendor… so when you click on it the following picture will appear.

 When you click vendors... The following picture will show the vendor defaults

In the above picture the software will ask you the information about default vendor. There are main 4 tabs in this section which are following

1: Payment Terms

2: Account Aging

3: Custom Fields

4: 1099 Settings

Payment Terms:

                                   

Here there are Three Main Subheads

(i)Standard Terms And Default Terms

(ii) GL Link Accounts

(i) Standard Terms And Default Terms

Standard Terms; it includes the following

                C.O.D: it means Cash on due Date Company can use this option when the Purchase on cash basis the effect of this option is that you not need to fill Default Terms such as Net due in, discount in, and Discount% except credit limit

                Prepaid: If your vendor received from  you in advance this option can be used

                Due in Number of Days: in this section you give the number of days to your vendor for payment due date.

                Due on day of next month: in this section if you chose this option it means all transactions due on next month on specific date.

Payment on end of month: if you chose this option it means all transactions due on end of the month

Note: if you chose the (i), (ii) or (iii) option you have to give addition information of default terms and conditions.

Net due in: here you can give any no. of days for payment due

Discount in: here you can give percentage for purchase discount purpose that your vendor give you. It means when you  pay all the dues before time you have to give discount according to percentage.

Credit Limit: here you can add credit limit for you, if you exceed that amount than he will receive a warning for payment.

(ii) GL Link Accounts:

                It includes GL Purchase Account and Discount GL Account

                Purchase Account: it means General ledger purchase account that you made in chart of accounts.

                Discount GL Account: it means general ledger of discount account for vendor.

2: Account Aging Tab.

                                           

This is the second tab of vendor defaults As 1^st circle shows. The main purpose of aging is that to maintain provision for bad debts, In this section of vendor defaults you have to maintain aging  for vendor which means if a you  not pay up-to 30 day he will be charged accordingly and if he not pay payment due above 3o day than what rate will be charge or going to become bad debts. Here is the main tow headings (i)Age Invoice by: and (ii)Aging Categories

                           i.            Age Invoice by: this relate to what method software use for aging following are tow methods

a)       Invoice Date: if you chose this option it means the aging will be maintain accordingly invoice date in which transaction had made.

b)        Due Date: if you chose this option it means the aging will be maintain accordingly due date that you maintain in payment term tab.

                         ii.            Aging Categories: here there are four columns in which you give aging to your vendor for default or interest charges or for just warning.

               #of Days: here you can enter grace days after the due date.

                Column Heading: here you can enter number of days for bad debts provision.

3: Custom Field:

                       

This section if for additional information of vendor and these information can be changed at any time.

4: 1099 Settings:

In this section you can change G/L Settings