Basic Order Management ConfigurationLesson 4

Creating Vendors

Back to D300: Order Management Basics

Lesson 4: Creating Vendors

Part 1: Basic Order Management Configuration

The topics of this lesson explain how to create a vendor account in Acumatica ERP.

Vendors: General Information

Acumatica ERP provides you with different tools that ease the process of entering vendor data and help you to organize this data in reports. You use the Vendors (AP303000) form to create vendors in Acumatica ERP.

Learning Objectives

In this lesson, you will do the following:

  • Create a new vendor based on the default vendor class
  • Review the default settings that the system has inserted from the vendor class

Applicable Scenarios

You add vendor accounts in the following cases:

  • When you initially configure Acumatica ERP and enter the vendor base into the system
  • When you need to create an account for a new vendor of the company

Entities Needed for Vendor Account Setup

Before you start setting up vendor accounts in Acumatica ERP, you need to configure the entities that will ease the processes of vendor account creation and maintenance. The needed entities in Acumatica ERP may include the following:

  • Vendor classes (required): You should ensure that at least one vendor class has been set up on the Vendor Classes (AP201000) form. Vendor classes provide default values for individual vendor accounts, so users can create vendor accounts more easily. Besides the class ID, which is the required setting of a vendor class, it can contain additional elements such as the description, credit terms, currency, rate type, country, tax zone, and specific general ledger accounts. You can also enter a default cash account and payment method for the class. For details, see Accounts Payable: To Create a Vendor Class.
  • Vendor identifiers (optional): You should make sure that the segmented key used as a template for identifiers of vendor accounts suits your needs, and adjust the BIZACCT segmented key (or the VENDOR segmented key) on the Segmented Keys (CS202000) form if needed. For details, see Managing Segmented Keys.
  • General ledger accounts (required): On the Chart of Accounts (GL202500) form, you need to create the general ledger accounts to be used to record purchases and cash discounts, unless you plan to use the accounts that already exist. You will need to select these accounts when you create vendor accounts. For details, see To Add an Account to the Chart of Accounts
  • Payment methods (required): You need to ensure that at least one payment method to be used for payments to vendors has been defined on the Payment Methods (CA204000) form. For details, see Managing Payment Methods.
  • Credit terms: You should ensure that each needed set of credit terms that will define the due dates of documents has been set up on the Credit Terms (CS206500) form. When you set up vendor classes, you can assign the appropriate credit terms to classes, which in turn will cause the credit terms to be assigned by default to all new vendors of this class. For details, see Setup of Credit Terms.
  • Mailings (optional): You can set up multiple mailings to notify vendors about their balances, bills, purchase orders, and other information you want to send to vendors on a regular basis. For details, see Mailings for Vendors: General Information.
  • Vendor price lists (optional): You can set up vendor price lists on the Vendor Prices (AP202000) form to maintain item prices that are specific for vendors, so that you can later use promotional prices and volume- based offers when planning your purchases. For details, see Vendor Prices: General Information.
  • Vendor discounts (optional): On the Vendor Discounts (AP205000) form, you can set up and maintain vendor discounts based on information received from each vendor. For details, see Configuring Vendor Discounts.
  • Tax zones (optional): On the Tax Zones (TX206000) form, you can set up various tax zones that combine a group of taxes for a particular location, which you assign to vendors and which are used by the system for calculation of taxes when you enter vendor documents. For details, see Tax Zones and Categories: General Information.

Vendors: Implementation Activity

In the following activity, you will create a new vendor.

Story

Suppose that the SweetLife Fruits & Jams company has found a vendor, the SEO World company, that provides website promotion services. The SEO World company also sells office supplies. This vendor has agreed to sell its services and goods on credit, with payments due in 30 days and a 3% discount if the services are paid within 10 days. Acting as a SweetLife implementation manager, you need to create the new vendor in the system.

Process Overview

In this activity, you will create a new vendor on the Vendors (AP303000) form. On the tabs of this form, you will specify the vendor's address and contact information. You will then review the default settings that the system inserted on this form and then change the credit terms for the vendor.

Step 1: Creating a Vendor Account To create a vendor account, do the following:

  1. On the Vendors (AP303000), add a new record.
  2. In the Summary area, specify the following settings:
  • Vendor ID: SEOWORLD
  • Vendor Status: Active (inserted automatically)
  • Vendor Class: DEFAULT (inserted automatically)
  1. On the General tab, in the Account Name box, specify SEO World Co.
  2. On the form toolbar, click Save.

Step 2: Specifying Contact Information and Address To specify the vendor's contact information and address, do the following:

  1. On the General tab, specify the following settings in the Primary Contact section:
  1. In the Account Address section of the General tab, specify the following main address for the vendor:
  • Address Line 1: 893 Confederate Drive
  • City: Geneva
  • State: NY - New York
  • Postal Code: 14456
  1. On the form toolbar, click Save.

Step 3: Specifying Financial and Payment Settings To specify the financial and payment settings for the vendor, do the following:

  1. On the Financial tab, in the Terms box, select 310N30. By selecting this setting, you indicate that you will pay the net amount within 30 days or will take a 3% discount if you choose to pay within 10 days.
  2. On the Payment tab, in the Default Payment Settings section, make sure that CHECK is selected in the Payment Method box and 10200WH cash account is selected in the Cash Account box.
  3. In the Default Payment Settings section, specify the following settings:
  • Payment By: Discount Date
  • Payment Lead Time (Days): 3
  • Pay Separately: Cleared
  1. On the form toolbar, click Save.

Step 4: Reviewing the Default GL Accounts To review the default GL accounts of the vendor, do the following:

  1. Open the GL Accounts tab.
  2. In the boxes on this tab, review the GL accounts to be used for settlements with this vendor.

Step 5: Specifying Printing and Emailing Settings To specify the printing and emailing settings for the purchase orders of the vendor, do the following:

  1. On the Purchase Settings tab, in the Other Settings section, clear the Print Order check box.
  2. In the same section, make sure that the Email Order check box is cleared.
  3. On the form toolbar, click Save.