Chapter 3: Customer Transactions

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., 2004

Software Objectives, p. 83 Restore data from Exercise 2-2. (This back up was made on p. 81.) 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: one blank, formatted disk for the Chapter 3 backup; one blank, formatted disk for the Exercise 3-2. ©The McGraw-Hill Companies, Inc., 2004

Web Objectives, p. 83 Use your Internet browser to go to the book’s website at www.mhhe.com/yacht2003 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., 2004

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 pages 51 and 52 for setting global options. You need to enter, post, then print Invoice No. 101 before using the “Receipts” task. (Text pages 95-107) ©The McGraw-Hill Companies, Inc., 2004

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 pages 51 and 52 to make sure that the boxes in the “Hide General Ledger Accounts” section are unchecked (see Options/Global). ©The McGraw-Hill Companies, Inc., 2004

Backing Up Chapter 3 6 of 18 A:\Chapter 3.ptb 854 116-117 7 of 18 Use one blank, formatted disk to make the Chapter 3 backup on pages 116-117. You will need another blank, formatted disk to back up Exercise 3-2 on page 122. Disks Backup Name KB Page Nos. 6 of 18 A:\Chapter 3.ptb 854 116-117 7 of 18 A:\Exercise 3-2.ptb 856 122 ©The McGraw-Hill Companies, Inc., 2004

Chapter 3 Topics Software & web objectives, p. 83 Getting Started, p. 84 Accounts receivable tasks, p. 85 a. Entering a quote, pp. 85-88 b. Converting a quote to a sales order, pp. 88-89 c. Entering a sales order, pp. 89-90 d. Printing a sales order, pp. 90-91 4. The maintain customers/prospects window, pp. 92-93 a. Entering a discount for a customer, pp. 93-95 b. Entering a sale to a customer, pp. 95-101 c. Distributing against a specific account, pp. 101-102 d. Discount information, p. 103 ©The McGraw-Hill Companies, Inc., 2004

Chapter 3 Topics continued Posting the invoice, p. 104 Printing invoices, pp. 104-107 Entering receipts, pp. 108-112 Analyzing customer payments, pp. 112-114 Displaying the customer ledgers, pp. 114-115 Credit memos, pp. 115-116 Backing up chapter 3 data, pp. 116-117 Internet activity, p. 117 Summary and review, pp. 117-118 a. Going to the net, p. 118 b. Short-answer questions, pp. 119-121 c. Exercise 3-1, pp. 121-122 d. Exercise 3-2, p. 122 e. Chapter 3 index, p. 123 ©The McGraw-Hill Companies, Inc., 2004

“Quotes” window, p. 85 From the menu bar, click on Tasks, then select Quotes/Sales Orders. From the submenu, click on Quotes. ©The McGraw-Hill Companies, Inc., 2004

“Quotes” window completed, p. 87 The completed “Quotes” window on p. 87 is shown. ©The McGraw-Hill Companies, Inc., 2004

Select Quote, p. 88 Click on Tasks, Quotes/Sales Order, then select Quotes. Click . On the “Select Quote” window, highlight Foster Consulting Technologies. Click on The “Quotes” window displays. Click on the Convert icon. ©The McGraw-Hill Companies, Inc., 2004

Convert Quote, p. 88 Click on the radio button next to Sales Order. Click on OK. ©The McGraw-Hill Companies, Inc., 2004

“Sales Order” window, p. 90 Click on Tasks, then Quotes/Sales Order, and then select Sales Orders. Follow steps on pages 90-91 to print a sales order. ©The McGraw-Hill Companies, Inc., 2004

“Maintain Customers/Prospects” window, p. 92 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., 2004

Customer file displayed, p. 93 From the customer list, select “TIDMORE-01, Tidmore Real Estate.” ©The McGraw-Hill Companies, Inc., 2004

Customer Terms completed, p. 95 From the Tidmore Real Estate “Maintain Customers/Prospects” window, click on the “Sales Defaults” folder tab. Click on the “Terms” arrow. Follow the steps on pages 93-95. ©The McGraw-Hill Companies, Inc., 2004

Completed “Sales/Invoicing” window, p. 102 This completed “Sales/Invoicing” screen is shown on page 102. ©The McGraw-Hill Companies, Inc., 2004

“Terms Information,” p. 103 After completing steps 1 and 2 on page 103, the “Terms Information” screen appears. ©The McGraw-Hill Companies, Inc., 2004

Invoice Plain Service, p. 105 Select Reports, then Accounts Receivable. Scroll down the report list and double-click on the “Invoices/Pkg. Slips” folder. Scroll down the list; highlight “Invoice Plain.” ©The McGraw-Hill Companies, Inc., 2004

Completed “Receipts” window, p. 111 The completed “Receipts” window is shown on page 111. ©The McGraw-Hill Companies, Inc., 2004

“Collection Manager” window, p. 112 Click on Analysis, then Collection Manager. The “Collection Aging” bar graph appears. ©The McGraw-Hill Companies, Inc., 2004

“Total Bracket” window, p. 113 Click on Analysis, then Collection Manager. Select the “Bracket” icon. ©The McGraw-Hill Companies, Inc., 2004

“Customer Detail” window, p. 113 Click on Analysis, then Collection Manager. Select the “Bracket” icon. Highlight Tidmore Real Estate. Select the “Source” icon. The “Customer Detail” screen appears. Click on “Close.” ©The McGraw-Hill Companies, Inc., 2004

Displaying Customer Ledgers, p. 114 Click on Reports, then Accounts Receivable. Scroll down the list, then highlight “Customer Ledgers.” Click on the “Preview” icon. ©The McGraw-Hill Companies, Inc., 2004

Customer Ledgers, p. 115 The customer ledger is shown on page 115. Click on the “Close” icon. ©The McGraw-Hill Companies, Inc., 2004

Chapter 3 Glossary of Terms

Sales discount, p. 93 A cash discount that is offered to customers for early payment of their sales invoices. For example, Bellwether Garden Supply offers Tidmore 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., 2004

Real-time posting, p. 104 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 screens, click on the “Save” icon to post to the general ledger. ©The McGraw-Hill Companies, Inc., 2004

Batch posting, p. 104 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., 2004

Chapter 3, Internet Activity, p. 117 Go to the book’s website at www.mhhe.com/yacht2003 2 In the “Student Center” list, link to Internet Activities. 3 Link to WEB EXERCISES PART 1. 4 Scroll down the screen to the “AMERICAN ACCOUNTING ASSOCIATION-Chapter 3” Complete steps 1-3. 5 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., 2004

Going to the Net, p. 118 Access the Financial Accounting Standards Board website at http://accounting.rutgers.edu/raw Link to FASB. Click on FASB Facts. From the drop-down list, select Board Members/Staff. How many board members serve on the Financial Accounting Standards Board? Do they serve part time or full time? What are the qualifications of the board members? ©The McGraw-Hill Companies, Inc., 2004