Accounts Payable: To Create a Vendor Class

You will now define the default vendor class in the system, which will provide many of the settings for newly created vendors and for other vendor classes you create, thus easing the creation of these entities during the next phase of implementation. Among other settings for the vendor class, you will specify the credit terms you have created.

Story

Suppose that most of the vendors of the SweetLife company use the same settings, such as credit terms, payment method, cash account, AP account, and cash discount account. Acting as an administrator, you need to create a default vendor class with these settings so that it can supply default settings when vendors and other vendor classes are created in the system.

Process Overview

In this activity, on the Vendor Classes (AP201000) form, you will create a vendor class and specify the default settings for it.

System Preparation

Before you start creating the vendor class, make sure that the following tasks have been performed in the system:

  1. The company has been created and an actual ledger has been assigned to it; see Company Without Branches: To Configure a Company Without Branches and General Ledger: To Create an Actual Ledger.
  2. The credit terms that are used by vendors have been created, as described in Credit Terms: To Define Credit Terms.

Step: Creating the Default Vendor Class

To create the default vendor class, do the following:

  1. Sign in to the company you have prepared with the admin username.
  2. Open the Vendor Classes (AP201000) form.
  3. On the form toolbar, click Add New Record.
  4. In the Summary area, specify the following settings:
    • Class ID: DEFAULT
    • Description: Default Vendor Class
  5. In the Default General Settings section of the General tab, select US - United States of America in the Country box.
  6. In the Default Financial Settings section of the General tab, specify the following settings:
    • Terms: 30D - 30 Days
    • Payment Method: CHECK - Check Payment
    • Cash Account: 10200 - Checking Account
  7. On the GL Accounts tab, specify the following accounts:
    • AP Account: 20000 - Accounts Payable
    • Cash Discount Account: 52600 - Cash Discount
  8. On the form toolbar, click Save.

You can now specify in the preference settings that this is the default vendor class, in addition to specifying other basic settings that will be applicable in accounts payable. For details, see Accounts Payable: To Specify Accounts Payable Preferences.