CHAPTER 10 ACQUISITION AND PAYMENTS

CHAPTER 10 ACQUISITION AND PAYMENTS In Chapter 9, your students set up a merchandising business and entered vendors and inventory items. In Chapter 10, they acquire inventory (make purchases) and make vendor payments. The acquisition and payment process includes the activities associated with maintaining, buying, and paying for the goods and services needed by the business. This process includes acquiring and paying for merchandise and other services, such as, insurance, office supplies, property and equipment, and utilities. In Great Plains acquisition and payments take place in the accounts payables module, also known as Payables Management. Chapter 2, student textbook pages 39-79, showed how Fabrikam, Inc. used the accounts payable module. The diagram below illustrated how vendors are paid. A vendor sends Computer Sales & Service an invoice (bill). You enter the invoice in the Receivings Transaction Entry window (Transactions; Purchasing, Receivings Transaction Entry; Type, Shipment/Invoice. When it is time to pay the invoice, you use the Payables Manual Payment Entry window. The business that your students set up in Chapter 9, Computer Sales & Service, is continued in Chapters 10, 11, and 12. Each end-of-chapter exercise must be completed before starting the next chapter. 117 - IMK

118 - IMK Chapter 10 SOFTWARE OBJECTIVES: In Chapter 10, your students use the software to: 1. Load (attach) data from Exercise 9-2. (Refer to Step 5, page 371.) 1 2. Complete purchase order processing. 3. Set up posting for purchasing and inventory transactions. 4. Record and post vendor purchases on account. 5. Record and post vendor payments. 6. Complete series posting. 7. Print reports. 8. Unload or detach data. 9. Copy the Computer Sales & Service files. 2 WEB OBJECTIVES: In Chapter 10, your students did these Internet activities: 1. Use your Internet browser to go to the book s website. 2. 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. 3. Use a word processing program to write summaries of the websites that you visited. 1 All activities in Chapter 9, including Exercises 9-1 and 9-2, must be completed before starting Chapter 10. 2 The chart on page 336 (page 108 IMK) shows students the size of each file. Refer to this chart for unloading (detaching) data. Remember, copy files to external media such as a USB drive; Zip drive; CD-R; or DVD-R. The authors suggest that students zip the files before copying to external media.

Acquisition and Payments 119 - IMK GP TIPS, CHAPTER 10 Before students start recording and posting transactions they need to follow the Posting Setup steps on textbook pages 376-380. GP automatically sets up a batch for payment management transactions. The batches are identified as PMTRX and PMPAY, payables management transactions and payables management payments, respectively. These abbreviations are also used as the audit trail codes. Since GP sets up a batch, students must complete series posting of textbook pages 395-396. You may want to instruct students to print a summary trial balance before they unload (detach) data. Detached data should be copied to a hard drive location and then zipped to compress the files. When students start GP and load (attach) data, remind them to check their summary trial balance to make sure they are starting where they left off the last time they used Great Plains. Self-Check figures are given throughout the chapter. Students should verify their work against the self-check amounts. LECTURE OUTLINE FOR CHAPTER 10 A. Software Objectives, page 373 B. Web Objectives, page 373 C. Getting Started, page 374 D. Purchase Order Processing, pages 375-376 E. Posting Setup, page 376 1. Posting Setup: Purchasing, pages 376-378 2. Posting Setup: Inventory, pages 378-380 F. Recording Transactions, pages 381-385 1. Additional Transactions, pages 386

120 - IMK Chapter 10 G. Purchasing Assets from a Vendor, pages 387-389 1. Payables Inquiry, page 390 H. Entering Vendor Payments, pages 391-394 1. Additional Vendor Payments, pages 394-395 I. Series Posting, pages 395-397 K. Printing Reports, page 397 1. Trial Balance-Financial, pages 397-398 2. Aged Trial Balance-Payables Management, pages 398-399 3. Distribution History-Summary Payables Management, pages 399-400 L. Unloading Data: Chapter 10, page 400 M. Internet Activity, page 401 O. Summary and Review, page 401 1. Going to the Net, pages 401-402 2. Flash Card Review, page 402 3. Multiple Choice Questions, pages 403-405 4. Exercise 10-1, pages 405-406 5. Exercise 10-2, page 406 6. Chapter 10 Index, page 407 ANSWERS TO GOING TO THE NET Students select two links from the http://www.microsoft.com/businesssolutions/industry/retail.aspx. website. They are instructed to write two essays; minimum length, 75 words; maximum length 125 words. Websites addresses for each site visited should be included in their essay. Answers will vary.

Acquisition and Payments 121 - IMK FLASH CARD REVIEW To review how Great Plains is used, your students create flash cards. For example, for adding a vendor record, write Vendor Record on one side of the card; on the other side, write the steps for add a vendor record. 1. Posting Setup: Purchasing Series Posting Setup: Inventory Series 1. From the menu bar, select Tools; Setup, Posting, Posting. The Posting Setup window appears. 2. In the Series field, select Purchasing. 3. In the Origin field, select All. 4. Put checkmarks next to both Post to General Ledger and Post Through General Ledger. 5. In the Posting Date From area, click on the radio button next to Transaction. 6. In the Reports Table, click on the boxes in the screen column. 7. Click OK. 8. Check another Origin to make sure the settings were saved. 8. Click OK. 1. From the menu bar, select Tools; Setup, Posting, Posting. The Posting Setup window appears. 2. In the Series field, select Inventory. 3. In the Origin field, select All. 4. Put checkmarks next to both Post to General Ledger and Post Through General Ledger. 5. In the Posting Date From area, click on the radio button next to Transactions. 6. In the Reports Table, click on the boxes in the screen column. 7. Click OK. 8. Check another Origin to make sure the settings were saved. 8. Click OK.

122 - IMK Chapter 10 2. Receivings Transaction Entry 3. Payables inquiry by Document Number 1. From the menu bar, select Transactions; Purchasing, Receivings Transaction Entry to open the Receivings Transaction Entry window. 2. In the type field, select Shipment/Invoice. Press <Tab> to accept the Receipt No. default. 3. Type the invoice number in the Vendor Doc. No. field. 4. Type the appropriate date. 5. In the Vendor ID field, select the appropriate vendor. 6. Click on the lookup icon to select the Vendor Item. 7. Type the appropriate number in the Qty Shipped column. 8. Type the appropriate amounts in the Unit Cost column. 9. Select the unit of measure. 10. Select the Site ID. 11. If necessary, click Add, then Save the site ID information. 12. Click Distributions to check the accounts debited and credited. Click OK to return to the Payables Transaction Entry window. 13. Click Post. 1. Select Inquiry; Purchasing, Transaction by Document. 2. The table shows the information about each purchase transaction that was recorded. 3. Click OK. 4. Vendor payment 1. From the Navigation Pane, select Purchasing; then link to All Purchasing Transactions in the Purchasing Lists area. 2. Select Actions; New Payment. The Payables Manual Payment Entry window appears. 3. Accept the default for the Payment Number. 4. Type the appropriate date. 5. Select the appropriate vendor. 6. Type the appropriate document number. 7. Type the appropriate amount in the Amount field. 8. Click Apply. 9. Click Auto Apply; then OK. 10. Click Post.

Acquisition and Payments 123 - IMK 5. Series Posting 1. Select Transactions; Financial, Series Post. The Series Posting window appears. 2. Click on each box in the Comment column. (Or, select Mark All.) 3. Click Post. ANSWERS TO MULTIPLE CHOICE QUESTIONS 1. a. (Acquisition and payments). 2. b. (Payables management). 3. d. (Payables transaction entry). 4. c. (Voucher number). 5. c. (1400, Inventory-Storage). 6. a. (1320, Supplies). 7. c. (GL distribution summary). 8. d. (Series posting). 9. c. (Origin, all). 10. d. (PMTRX). Exercise 10-1 (4): Trial Balance Summary for 2005

124 - IMK Chapter 10 Exercise 10-1 (5): Quick Aged Trial Balance

Acquisition and Payments 125 - IMK Exercise 10-1 (6): Distribution History Summary Exercise 10-2 1. $56,028.58 2. ($2,672.65). 3. $0.00. 4. $2,720.95. 5. $2,055.95. The table below shows the Chapter 10 files unloaded (detached), copied, then zipped. Folder Name Zipped File Size Tasks Completed Textbook Page No. Chapter 10 112 MB Students complete purchase order processing; posting setup for purchasing and inventory; record transactions; purchase assets from a vendor; complete payables and vendor inquiries; complete payables transaction inquiry; enter vendor payments; complete series posting; print reports; and unload data. Exercise 10-1 112 MB Students complete Exercise 10-1. They complete transactions and print reports. 374-405 405-406