Chapter 12: Customers & Sales

Customers & Sales In Chapter 11, you learned how to use Peachtree’s Purchases/Receive Inventory and Payments features. Now that you have purchased merchandise from vendors, you are ready to sell that merchandise. To do that, you need to learn how to use Peachtree’s Customers & Sales Navigation Center. Before using the Sales/Invoicing window, you need to set up customer defaults, sales tax information, and customer maintenance information. After you set these defaults, Peachtree will use this information when you record a sale. ©2008 The McGraw-Hill Companies, Inc.

Software Objectives, p. 439 Set up customer default information. Set up sales tax information. Set up customer maintenance information. Record credit sales, cash sales, and sales returns. Record customer receipts, partial payments, and edit invoices. Make four backups: 1) back up Chapter 12 beginning data; 2) back up Chapter 12 data; 3) back up Exercise 12-1; 4) back up Exercise 12-2. ©2008 The McGraw-Hill Companies, Inc.

Web Objectives, p. 439 Use your Internet browser to go to the book’s website at www.mhhe.com/yacht2007. Go to the Internet Activity link on the book’s website. Then, select WEB EXERCISES PART 3. Complete the second web exercise in Part 3–WebCPA: Tools and Resources for the Electronic Accountant. Use a word processing program to write summaries of the websites that you visited. ©2008 The McGraw-Hill Companies, Inc.

Peachtree’s Accounts Receivable System, p. 440 ©2008 The McGraw-Hill Companies, Inc.

The Customers & Sales Navigation Center, pp. 440-441 On the Customers & Sales Navigation Center, Peachtree illustrates the accounts receivable system. ©2008 The McGraw-Hill Companies, Inc.

Peachtree Tips You must complete Chapter 11 before you start Chapter 12. If the general ledger account (GL account column) is not displayed on the Sales/Invoicing window, check the global options. In the Hide General Ledger Accounts section, all boxes must be unchecked (see Chapter 2, p. 54, steps 1-4). ©2008 The McGraw-Hill Companies, Inc.

Backing Up Chapter 12 Backup Name Kilobytes Page Nos. Chapter 12 Begin The chart below shows the size of the backups made in Chapter 12. The textbook steps show you how to back up to Peachtree’s default hard drive location at C:\Program Files\Sage Software\Peachtree\Company\[shortened company name]. You can also specify a hard drive location, or back up to external media such as a floppy disk, Zip disk, CD-R, or USB media. The chart for the size of all the backups made in Part 3 (Chapters 11-14) is shown on page 376. Backup Name Kilobytes Page Nos. Chapter 12 Begin 634 KB 450 Chapter 12 660 KB 479 Exercise 12-1 610 KB 485 Exercise 12-2 623 KB 486 ©2008 The McGraw-Hill Companies, Inc.

Chapter 12 Topics Software & web objectives, p. 439 Getting started, p. 441-442 a. Setting up customer defaults, pp. 443-444 b. Setting up sales tax defaults, pp. 444-446 c. Setting up customer maintenance information, pp. 447-450 Backing up your data, p. 450 Recording sales, pp. 450-451 a. Entering invoices for credit sales, pp. 451-453 b. Printing the sales invoice, pp. 453-458 c. Entering a service invoice, pp. 459-461 d. Sales returns: Tasks; Credit Memos, pp. 462- 464. ©2008 The McGraw-Hill Companies, Inc.

Chapter 12 Topics (continued) Recording receipts and cash sales, pp. 464-465 a. Entering a receipt, pp. 465-467 b. Cash sales, pp. 468-469 c. Finance charges, p. 469 Printing customer forms, p. 470 a. Printing invoices, p. 470 b. Printing statements, pp. 470-471 c. Printing mailing labels, pp. 471-472 d. Preparing collection letters, pp. 472-474 Printing the sales journal, pp. 474-475 ©2008 The McGraw-Hill Companies, Inc.

Chapter 12 Topics (concluded) Printing the cash receipts journal, p. 475-476 Printing customer ledgers, p. 476-477 Printing the general ledger trial balance, p. 477 Editing receipts, p. 478 Backing up Chapter 12 data, p. 479 Internet activity, p. 479 Summary and review, p. 480 a. Going to the net, p. 480 b. Multiple-choice questions, pp. 481-484 c. Exercise 12-1, pp. 484-485 d. Exercise 12-2, p. 486 e. Chapter 12 index, p. 487 ©2008 The McGraw-Hill Companies, Inc.

Getting started, pp. 441-442 Complete steps 1 – 2h. on p. 441-442. Then, complete steps 1 - 6 for setting up customer defaults on pp. 443-444. The Customer Defaults window is shown on p. 443. Click on <OK>. ©2008 The McGraw-Hill Companies, Inc.

Setting up sales tax defaults, pp. 444-446 Read the instructions on page 444. Then, complete steps 1 – 6 on pp. 444-445 for setting up sales tax defaults. The Maintain Sales Tax Authorities window is shown on p. 445, below step 6. Click on Save, then Close. ©2008 The McGraw-Hill Companies, Inc.

Maintain sales tax codes, p. 446 Complete the steps 1-5 on p. 446. Click on Close to return to the Customers & Sales Navigation Center. ©2008 The McGraw-Hill Companies, Inc.

Maintain Customers/Prospects, p. 447 From the Customers & Sales page, select ; New Customer. The Maintain Customers/Prospects window appears. Type the customer information shown in step 2 on p. 447. Click on the Sales Defaults tab. ©2008 The McGraw-Hill Companies, Inc.

Sales defaults, p. 448 After selecting the Sales Defaults tab (step 3), complete step 4 on p. 448. This window is shown on p. 448. Click on Save. Then, continue adding customers. Complete step 6 on p. 448-450. ©2008 The McGraw-Hill Companies, Inc.

Backing up your data, p. 450 Complete steps 1 – 6 to back up your data. Use Chapter 12 Begin as the back up name. ©2008 The McGraw-Hill Companies, Inc.

Recording sales, p. 450-453 Read the information on pp. 450-451. Then, complete steps 1- 6 on p. 452 for entering invoices for credit sales. The Sales/Invoicing window is shown on p. 453. Continue with steps 4 – 5.m. on pp. 365 and 366. ©2008 The McGraw-Hill Companies, Inc.

Print Forms: Invoices/Pkg. Slips, pp. 453-454 To print the sales invoice, follow steps 1, 2, and 3 on page 453. Make sure that Invoice is highlighted. This window is shown on p. 454. Click on <OK>. Read step 5 on page 454. ©2008 The McGraw-Hill Companies, Inc.

Print Forms: Invoices, pp. 454-455 After completing steps 5 and 6 on p. 454, Invoice Number 101 starts to print. Compare your sales invoice to the one shown on page 455. ©2008 The McGraw-Hill Companies, Inc.

Printing sales invoices, pp. 456-458 Continue entering sales to customers on pages 456-458. Print your sales invoices. Compare them with the ones shown on pages 456-458. ©2008 The McGraw-Hill Companies, Inc.

Entering a service invoice, pp. 459-461 Read the information about service invoices on page 459. Complete steps 1 – 7 on page 459 Compare your invoice to the one shown on p. 461. Complete step 9 on p. 461. ©2008 The McGraw-Hill Companies, Inc.

Sales returns, pp. 462-464 Read the information about sales returns on p. 462. Complete steps 1 – 7 on pp. 462-463. The Credit Memos window is shown on p. 463. Click on Save to post. Then, close. Complete steps 1-7 to apply a sales return, pp. 463-464. ©2008 The McGraw-Hill Companies, Inc.

Receipts window, p. 464 After completing steps 5 and 6 on p. 464, the Receipts window appears. Click on Save to post, then Close. ©2008 The McGraw-Hill Companies, Inc.

Entering a receipt, pp. 464 – 466 Read Recording Receipts and Cash Sales on pp. 464-465. Then, complete steps 1 – 6 on p. 465. The Receipts window is shown on p. 466. Click on Save to post. ©2008 The McGraw-Hill Companies, Inc.

Partial payment, pp. 466-467 Complete steps 1 – 5 on p. 466-467. Click on Save to post (this is step 6 on p. 467). ©2008 The McGraw-Hill Companies, Inc.

Enter cash sales, pp. 468-469 Read the information about cash sales on p. 468. Complete steps 1- 11 on pages 468 and 469 to enter cash sales. ©2008 The McGraw-Hill Companies, Inc.

Receipts window for cash sale, p. 469 After completing steps 1-11 on pp. 468 and 469, the Receipts window appears. This window is shown on p. 469. Click on Save to post, then Close. ©2008 The McGraw-Hill Companies, Inc.

Printing customer forms, pp. 470-473 Read the information on pages 470-472. Complete steps 1 and 2 on page 473. ©2008 The McGraw-Hill Companies, Inc.

Collection Manager window, p. 473 After completing step 2 on page 473, the Collection Manager window appears. Complete steps 3 – 8 on pages 473-474. ©2008 The McGraw-Hill Companies, Inc.

Printing the sales journal, pp. 474-475 Complete steps 1 – 3 on pp. 474 Compare your sales journal to the one shown on p. 475. ©2008 The McGraw-Hill Companies, Inc.

Printing the cash receipts journal, pp. 475-476 Complete steps 1 – 3 on p. 475. Compare your cash receipts journal to the one shown on p. 476. ©2008 The McGraw-Hill Companies, Inc.

Printing the customer ledgers, pp. 476-477 Complete steps 1 and 2 on page 476. Compare your printout of the customer ledgers to the one shown on p. 477. ©2008 The McGraw-Hill Companies, Inc.

Printing the general ledger trial balance, p. 477 Complete steps 1 and 2 on page 477. Compare your general ledger trial balance to the one shown on p. 477. ©2008 The McGraw-Hill Companies, Inc.

Editing receipts, pp. 478 From the Customers & Sales page, select ; View and Edit Payments Received. Highlight Invoice 104. Click . The original Receipts window with Judie Piner’s partial payment appears. Close the Receipts window and Receipts List window. ©2008 The McGraw-Hill Companies, Inc.

Backing Up Chapter 12 Data, p. 479 Complete steps 1 - 6 on pages 479. The back up name is Chapter 12. Click on <Ok>. Compare your check to the one shown on p. 381. Record the additional payments shown on p. 382. ©2008 The McGraw-Hill Companies, Inc.

Glossary of Terms Chapter 12 ©2008 The McGraw-Hill Companies, Inc.

Accounts receivable, p. 440 Money that is owed by customers to the business. ©2008 The McGraw-Hill Companies, Inc.

Accounts Receivable transactions, p. 440 Credit transactions from customers. When Nancy’s Sales & Service sells merchandise on account to customers, the transactions are known as accounts receivable transactions. ©2008 The McGraw-Hill Companies, Inc.

Invoice, p. 440 A bill that shows an itemized list of goods shipped or services rendered, stating quantities, prices, fees, and shipping charges. ©2008 The McGraw-Hill Companies, Inc.

Cash Receipts Journal, p. 451 A journal used to record all inflows of cash. Peachtree takes the necessary information from the Receipts window and automatically journalizes the transactions in the cash receipts journal. ©2008 The McGraw-Hill Companies, Inc.

Sales journal, p. 451 Sales on account are recorded in the sales journal. In Peachtree, all the information about a sale is recorded in the Sales/Invoicing window. Then, Peachtree takes the necessary information from this window and automatically journalizes the transaction in the sales journal. ©2008 The McGraw-Hill Companies, Inc.

Customer ledger, p. 451 The customer ledger shows account activity for each customer. ©2008 The McGraw-Hill Companies, Inc.

Accounts receivable ledger, p. 451 The accounts receivable ledger shows the account activity for each customer. In Peachtree, this is called the customer ledger. ©2008 The McGraw-Hill Companies, Inc.

Service invoice, p. 459 An alternative to the standard invoice. Use it when you want to create an invoice without inventory items. Nancy’s Sales & Service sells and repairs household items. When repairs are done, a service invoice is used. ©2008 The McGraw-Hill Companies, Inc.

Internet Activity, p. 479 1 Go to the book’s website at www.mhhe.com/yacht2007. 2 Link to Student Edition. 3 In the Course-wide Content list, link to Part 3 Internet Activities for Chapters 11-14. Open or Save. (You can also choose Chapter 12, then link to Internet Activities. If you Choose a Chapter, observe that other chapter-specific links are available; for example, Quizzes, PowerPoints, and Going to the Net Exercises.) . 4 Complete the WebCPA–Tools and Resources for the Electronic Accountant exercise. Read steps 1–3. 5 Follow the steps shown on the book’s website to complete this Internet activity. 6 Using a word processing program, write a brief summary of what you find. Include all appropriate website addresses. ©2008 The McGraw-Hill Companies, Inc.

Going to the Net, p. 480 Access the Business Owner’s Toolkit website at http://www.toolkit.cch.com/text/P06_1430.asp. Read the accounts receivable page, and then answer the following questions. What is the common abbreviation for accounts receivable? What is the control account for customer sales on account? How is the ending accounts receivable total computed? ©2008 The McGraw-Hill Companies, Inc.