1. Chapter 12: Customers & Sales

2. 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.
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3. 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.
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4. Web Objectives, p. 439
Use your Internet browser to go to the book’s website at
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.
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5. Peachtree’s Accounts Receivable System, p. 440
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6. The Customers & Sales Navigation Center, pp. 440-441
On the Customers & Sales Navigation Center, Peachtree illustrates the accounts receivable system.
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7. 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).
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8. 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
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9. Chapter 12 Topics Software & web objectives, p. 439
Getting started, p
a. Setting up customer defaults, pp
b. Setting up sales tax defaults, pp
c. Setting up customer maintenance information, pp
Backing up your data, p. 450
Recording sales, pp
a. Entering invoices for credit sales, pp
b. Printing the sales invoice, pp
c. Entering a service invoice, pp
d. Sales returns: Tasks; Credit Memos, pp. 462-
464.
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10. Chapter 12 Topics (continued)
Recording receipts and cash sales, pp
a. Entering a receipt, pp
b. Cash sales, pp
c. Finance charges, p. 469
Printing customer forms, p. 470
a. Printing invoices, p. 470
b. Printing statements, pp
c. Printing mailing labels, pp
d. Preparing collection letters, pp
Printing the sales journal, pp
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11. Chapter 12 Topics (concluded)
Printing the cash receipts journal, p
Printing customer ledgers, p
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
c. Exercise 12-1, pp
d. Exercise 12-2, p. 486
e. Chapter 12 index, p. 487
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12. Getting started, pp
Complete steps 1 – 2h. on p Then, complete steps for setting up customer defaults on pp The Customer Defaults window is shown on p. 443.
Click on <OK>.
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13. Setting up sales tax defaults, pp. 444-446
Read the instructions on page 444. Then, complete steps 1 – 6 on pp 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.
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14. 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.
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15. 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.
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16. Sales defaults, p. 448
After selecting the Sales Defaults tab (step 3), complete step 4 on p This window is shown on p. 448.
Click on Save. Then, continue adding customers. Complete step 6 on p
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17. Backing up your data, p. 450
Complete steps 1 – 6 to back up your data.
Use Chapter 12 Begin as the back up name.
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18. Recording sales, p
Read the information on pp 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.
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19. 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.
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20. 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.
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21. Printing sales invoices, pp. 456-458
Continue entering sales to customers on pages
Print your sales invoices. Compare them with the ones shown on pages
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22. 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.
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23. Sales returns, pp
Read the information about sales returns on p Complete steps 1 – 7 on pp 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
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24. Receipts window, p. 464
After completing steps 5 and 6 on p. 464, the Receipts window appears.
Click on Save to post, then Close.
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25. Entering a receipt, pp. 464 – 466
Read Recording Receipts and Cash Sales on pp Then, complete steps 1 – 6 on p The Receipts window is shown on p. 466.
Click on Save to post.
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26. 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).
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27. Enter cash sales, pp
Read the information about cash sales on p. 468.
Complete steps on pages 468 and 469 to enter cash sales.
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28. 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.
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29. Printing customer forms, pp. 470-473
Read the information on pages
Complete steps 1 and 2 on page 473.
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30. Collection Manager window, p. 473
After completing step 2 on page 473, the Collection Manager window appears.
Complete steps 3 – 8 on pages
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31. 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.
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32. 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.
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33. 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.
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34. 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.
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35. 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.
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36. Backing Up Chapter 12 Data, p. 479
Complete steps on pages 479.
The back up name is Chapter 12.
Click on <Ok>. Compare your check to the one shown on p Record the additional payments shown on p. 382.
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37. Glossary of Terms Chapter 12
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38. Accounts receivable, p. 440
Money that is owed by customers to the business.
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39. 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.
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40. Invoice, p. 440
A bill that shows an itemized list of goods shipped or services rendered, stating quantities, prices, fees, and shipping charges.
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41. 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.
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42. 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.
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43. Customer ledger, p. 451
The customer ledger shows account activity for each customer.
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44. Accounts receivable ledger, p. 451
The accounts receivable ledger shows the account activity for each customer.
In Peachtree, this is called the customer ledger.
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45. 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.
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46. Internet Activity, p. 479 1
Go to the book’s website at 2
Link to Student Edition. 3
In the Course-wide Content list, link to Part 3 Internet Activities for Chapters 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.
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47. Going to the Net, p. 480
Access the Business Owner’s Toolkit website at 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?
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