1. Chapter 3: Customer Transactions

2. 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.
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3. 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.
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4. Web Objectives, p. 83
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.
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5. 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 )
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6. 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).
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7. 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 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
7 of 18
A:\Exercise 3-2.ptb
856
122
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8. Chapter 3 Topics Software & web objectives, p. 83
Getting Started, p. 84
Accounts receivable tasks, p. 85
a. Entering a quote, pp
b. Converting a quote to a sales order, pp
c. Entering a sales order, pp
d. Printing a sales order, pp
4. 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. 103
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9. Chapter 3 Topics continued
Posting the invoice, p. 104
Printing invoices, pp
Entering receipts, pp
Analyzing customer payments, pp
Displaying the customer ledgers, pp
Credit memos, pp
Backing up chapter 3 data, pp
Internet activity, p. 117
Summary and review, pp
a. Going to the net, p. 118
b. Short-answer questions, pp
c. Exercise 3-1, pp
d. Exercise 3-2, p. 122
e. Chapter 3 index, p. 123
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10. “Quotes” window, p. 85
From the menu bar, click on Tasks, then select Quotes/Sales Orders. From the submenu, click on Quotes.
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11. “Quotes” window completed, p. 87
The completed “Quotes” window on p. 87 is shown.
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12. 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.
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13. Convert Quote, p. 88 Click on the radio button next to Sales Order.
Click on OK.
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14. “Sales Order” window, p. 90
Click on Tasks, then Quotes/Sales Order, and then select Sales Orders.
Follow steps on pages to print a sales order.
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15. “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.
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16. Customer file displayed, p. 93
From the customer list, select “TIDMORE-01, Tidmore Real Estate.”
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17. 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
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18. Completed “Sales/Invoicing” window, p. 102
This completed “Sales/Invoicing” screen is shown on page 102.
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19. “Terms Information,” p. 103
After completing steps 1 and 2 on page 103, the “Terms Information” screen appears.
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20. 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.”
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21. Completed “Receipts” window, p. 111
The completed “Receipts” window is shown on page 111.
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22. “Collection Manager” window, p. 112
Click on Analysis, then Collection Manager. The “Collection Aging” bar graph appears.
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23. “Total Bracket” window, p. 113
Click on Analysis, then Collection Manager. Select the “Bracket” icon.
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24. “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.”
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25. Displaying Customer Ledgers, p. 114
Click on Reports, then Accounts Receivable. Scroll down the list, then highlight “Customer Ledgers.”
Click on the “Preview” icon.
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26. Customer Ledgers, p. 115 The customer ledger is shown on page 115.
Click on the “Close” icon.
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27. Chapter 3 Glossary of Terms

28. 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.
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29. 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.
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30. 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.
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31. Chapter 3, Internet Activity, p. 117
Go to the book’s website at 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.
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32. Going to the Net, p. 118
Access the Financial Accounting Standards Board website at
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?
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