Chapter 3: Customer Transactions Chapter 3: Customer Transactions

©The McGraw-Hill Companies, Inc. 2 of 32 Customer Transactions In Chapter 3, you learn about Bellwether Garden Supply’s customers. In this chapter, you learn how Peachtree handles accounts receivable transactions with customers.

©The McGraw-Hill Companies, Inc. 3 of 32 Software Objectives, p. 87 Restore data from Exercise 2-2. (This back up was made on pp ) Go to the Tasks menu to enter quotes and sales orders. Enter customer terms in the Maintain menu. Go to the Tasks menu to enter a sales invoice. Print a sales invoice. Analyze receipts and customer credit memos. Post a receipt for the previously invoiced amount. Make two backups: back up Chapter 3 data; and back up Exercise 3-2

©The McGraw-Hill Companies, Inc. 4 of 32 Web Objectives, p. 87 Use your Internet browser to go to the book’s website at Complete the Internet activity for the American Accounting Association. Use a word processing program to write a summary about the websites(s) that you visited.

©The McGraw-Hill Companies, Inc. 5 of 32 Peachtree Tips Peachtree Tips All work in Chapters 1 and 2, including the end-of-chapter exercises, must be completed before starting Chapter 3. If the Sales/Invoicing window or Receipts window does not show the G/L account column, see text page 54, step 1, for setting global options. You need to record, post, then print Invoice No. 101 (Text pages ) before using the Receipts task. (Text pages )

©The McGraw-Hill Companies, Inc. 6 of 32 Peachtree Tips Peachtree Tips If the GL Account column is not displayed on the Quotes or other Tasks windows you need to check your global settings. Refer to the steps on page 54 to make sure that the boxes in the Hide General Ledger Accounts section are unchecked (see Options/Global).

©The McGraw-Hill Companies, Inc. 7 of 32 Backing Up Chapter 3 Backup Name KB Page Nos. Chapter 3.ptb 2,482 KB 119 Exercise 3-2.ptb 2,477 KB 124 Make two backups: back up Chapter 3 data on page 119; and back up Exercise 3-2 Make two backups: back up Chapter 3 data on page 119; and back up Exercise 3-2 on page 124.

©The McGraw-Hill Companies, Inc. 8 of 32 Chapter 3 Topics 1. Software & Web Objectives, p Getting Started, pp Accounts receivable tasks, p. 89 a.Entering a quote, pp b.Converting a quote to a sales order, pp c.Entering a sales order, pp. 93 d.Printing a sales order, pp The maintain customers/prospects window, pp a. Entering a discount for a customer, pp b. Entering a sale to a customer, pp c. Distributing against a specific account, pp d. Discount information, p. 105

©The McGraw-Hill Companies, Inc. 9 of 32 Chapter 3 Topics continued 5. Posting the invoice, p Printing invoices, pp Entering receipts, pp Analyzing customer payments, pp Displaying the customer ledgers, pp Credit memos, pp Backing up chapter 3 data, p Internet activity, p Summary and review, p. 120 a.Going to the net, p. 120 b.Short-answer questions, pp c.Exercise 3-1, pp d. Exercise 3-2, p. 124 e. Chapter 3 index, p. 125

©The McGraw-Hill Companies, Inc. 10 of 32 Quotes window, pp From the menu bar, click on Tasks, then select Quotes/Sales Orders. From the submenu, click on Quotes. Complete the steps on pages This window is shown on p. 91.

©The McGraw-Hill Companies, Inc. 11 of 32 Select Quote, p. 92 Click on Tasks, Quotes/Sales Order, then select Quotes. Click. On the Select Quote window, highlight Dash Business Systems Click on The Quotes window displays. Click on the Convert icon.

©The McGraw-Hill Companies, Inc. 12 of 32 Convert Quote, p. 92 Click on the radio button next to Sales Order. Click on OK.

©The McGraw-Hill Companies, Inc. 13 of 32 Maintain Customers/Prospects window, p. 95 Click on Maintain, then select Customers/Prospects. In the Customer ID field, click on the magnifying-glass icon. The customer list appear.

©The McGraw-Hill Companies, Inc. 14 of 32 Customer file displayed, p. 96 From the customer list, select TEESDALE, Teesdale Real Estate.

©The McGraw-Hill Companies, Inc. 15 of 32 Customer Terms completed, p From the Teesdale Real Estate Maintain Customers/Prospects window, click on the Terms & Credit folder tab. Click on the Terms arrow. Follow steps 2-5 on page 97.

©The McGraw-Hill Companies, Inc. 16 of 32 Completed Sales/Invoicing window, p. 102 This completed Sales/Invoicing window is shown on page 102.

©The McGraw-Hill Companies, Inc. 17 of 32 Terms Information, p. 105 After completing steps 1 and 2 on page 105, the Terms Information window appears.

©The McGraw-Hill Companies, Inc. 18 of 32 Invoice Plain Service, p. 107 Select Reports, then Accounts Receivable. Scroll down the report list and double-click on the Invoices/Pkg Slips folder. Click on Invoice Plain to highlight it. Complete the steps on pp to print Invoice Number 101.

©The McGraw-Hill Companies, Inc. 19 of 32 Completed Receipts window, p. 113 The completed Receipts window is shown on page 113.

©The McGraw-Hill Companies, Inc. 20 of 32 Collection Manager window, p. 114 Click on Analysis, then Collection Manager. The Collection Aging bar graph appears.

©The McGraw-Hill Companies, Inc. 21 of 32 Total Bracket window, p. 115 Click on Analysis, then Collection Manager. Select the Bracket icon.

©The McGraw-Hill Companies, Inc. 22 of 32 Customer Detail window, p. 115 Click on Analysis, then Collection Manager. Select the Bracket icon. Highlight Teesdale Real Estate. Select the Source icon. The Customer Detail window appears. Click on Close.

©The McGraw-Hill Companies, Inc. 23 of 32 Displaying Customer Ledgers, p. 116 Click on Reports, then Accounts Receivable. Scroll down the list, then highlight Customer Ledgers. Click on the Preview icon.

©The McGraw-Hill Companies, Inc. 24 of 32 Customer Ledgers, p. 117 The customer ledger is shown on page 117. Click on the Close icon.

©The McGraw-Hill Companies, Inc. 25 of 32 Credit Memos, pp Read about credit memos on pp After completing steps 1 and 2 on p. 118, the Credit Memos window appears.

©The McGraw-Hill Companies, Inc. 26 of 32 Backing up Chapter 3 data, p. 119 Follow steps 1-6 on page 119 to back up your data. The backup filename is Chapter 3.

Chapter 3 Glossary of Terms

©The McGraw-Hill Companies, Inc. 28 of 32 Sales discount, p. 96 A cash discount that is offered to customers for early payment of their sales invoices. For example, Bellwether Garden Supply offers Teesdale Real Estate a 5% discount for payments received within 15 days of the invoice date. In Peachtree, the discount period (number of days) and discount percentage can be changed.

©The McGraw-Hill Companies, Inc. 29 of 32 Real-time posting, p. 106 The sample company, Bellwether Garden Supply, uses real-time posting. When real-time posting is used, the transactions that you enter are posted as you save them. On the Tasks windows, click on the Save icon to post to the general ledger.

©The McGraw-Hill Companies, Inc. 30 of 32 Batch posting, p. 106 There is another type of posting included in Peachtree. It is called batch posting. When using batch posting, the transactions you enter are saved to a temporary holding area where you can review them before posting to the general ledger. To post to the general ledger when Batch posting is used, click on Tasks, then System, then select Post.

©The McGraw-Hill Companies, Inc. 31 of 32 Chapter 3, Internet Activity, p Go to the book’s website at In the Student Center list, link to Internet Activities. 3 Link to WEB EXERCISES PART 1. 4 Scroll down to the AMERICAN ACCOUNTING ASSOCIATION-Chapter 3. Complete steps Using a word processing program, write a summary about the sites you selected. Include the website address in your summary (maximum length, 75 words; minimum length, 50 words.

©The McGraw-Hill Companies, Inc. 32 of 32 Going to the Net, p. 120 Access the Financial Accounting Standards Board website at Link to FASB. Click FASB Facts; select Board Members/Staff. 1. How many board members serve on the Financial Accounting Standards Board? Do they serve part time or full time? 2. What are the qualifications of the board members?