Vendors: Implementation Activity

The following activity will walk you through the process of creating a new vendor.

Video Tutorial

This video shows you the common process but may contain less detail than the activity has. If you want to repeat the activity on your own or you are preparing to take the certification exam, we recommend that you follow the instructions in the steps of the activity.

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Story

Suppose that SweetLife Fruits & Jams company has found a vendor, the CleanUp company that provides cleaning services and that agreed to sell its services on credit, with payments due in 30 days and a 3% discount if the services are paid within 10 days.

Acting as a SweetLife administrator, you need to create the new vendor in the system.

Process Overview

In this activity, you will create a new vendor on the Vendors (AP303000) form. On the tabs of this form, you will specify the vendor's address and contact information. You will then review the default settings, which the system inserts to the vendor account when creating the vendor, and then specify the payment settings for the vendor.

System Preparation

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

1. The company has been created and its actual ledger has been specified; 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 with a Cash Discount.
3. The default vendor class has been created, as described in Accounts Payable: To Create a Vendor Class.

Step 1: Creating a Vendor Account

To create a vendor account, do the following:

1. Sign in to the company you have prepared with the admin username.
2. Open the Vendors (AP303000) form.
3. On the form toolbar, click Add New Record.
4. In the Summary area, specify the following settings:
   • Vendor ID: CLEANUP
   • Vendor Status: Active (inserted automatically)
   • Vendor Class: DEFAULT (inserted automatically)
5. On the General tab, in the Account Name box, specify CleanUp Co.
   Note:

   The Legal Name box is filled in by default with the same value.
6. On the form toolbar, click Save to save your changes.

Step 2: Specifying Contact Information and Address

To specify the vendor's contact information and address, do the following:

1. On the General tab, specify the following settings in the Primary Contact section:
   • Name: Loretta W Glenn
   • Job Title: General manager
   • Email: lglenn@cleanup.example.com
   • Business 1: 315-719-5308
2. In the Account Address section of the General tab, specify the following main address for the vendor:
   • Address Line 1: 893 Confederate Drive
   • City: Geneva
   • State: NY - New York
   • Postal Code: 14456

Step 3: Specifying Financial and Payment Settings

To specify the financial and payment settings for the vendor, do the following:

1. On the Financial tab, in the Terms box, make sure that 310N30 is selected.

   This setting is inserted by default from the vendor class settings. The setting means that you will pay the net amount within 30 days or will take a 3% discount if you choose to pay within 10 days.

2. On the Payment tab, in the Default Payment Settings section, make sure that CHECK is selected in the Payment Method box and 10200 - Checking Account is selected in the Cash Account box.
3. In the Default Payment Settings section, specify the following settings:
   • Payment By: Discount Date
   • Payment Lead Time (Days): 3
   • Pay Separately: Cleared
4. On the form toolbar, click Save to save your changes.

Step 4: Reviewing the Default GL Accounts

To review the default GL accounts of the vendor, do the following:

1. Open the GL Accounts tab.
2. In the boxes on this tab, review the GL accounts to be used for settlements with this vendor.