Adding New Vendors in QuickBooks

Posted by on Feb 9, 2011 in Vendors Module | 0 comments

In continuing with this series we now come to the Vendor module. We have been using as an example a British Columbia service based company that provides consulting for companies both on and off-site. In this segment I will deal with adding new vendors.

From the Home page let’s check to see if any Vendors have been set up as yet. If you answered the Sales Tax question in Preferences during the set up, then you should see two Vendors that QuickBooks has set up to handle the bills and payments. These would be Minister of Finance and Receiver General. We will deal with them when we File Sales Tax.

We are going to add a couple of Vendors, one is Rogers which is a sub-contractor. From the Vendor Centre click on New Vendor and in the Vendor Name field type Rogers Communications. Tab over the Opening Balance and the as of date fields to the Company Name field. From the Vendor Name field, highlight Rogers Communications, and using the right click on your mouse, copy and paste it into the Company Name field.

You will notice that your next tab automatically copies the Company Name information into the Name and Address and the Print on Cheque as fields. Place your cursor behind the “s” in Communications in the Name and Address field and press your Enter key. This will take you down to the next line where you would fill in the full address.

By inputting the address information,  the address should be displayed perfectly in a Number 10 size window envelope when later mail your cheque to the Vendor. Provide as much information as you can in the Address Info tab, then click on the Additional Info tab.

The Account No. field is where your Rogers account number goes. We will use a fictitious one for now (5-1234-5678), then tab to the Type field and choose the appropriate name from the drop-down box, or if it is not there you can <Add New>.  We will use Service Provider and tab to the Terms field and choose Net 30 since that is what Rogers has stated on their invoice.

The Credit Limit field could be filled in if there was a maximum amount stipulated for this account, but since there was none we will tab past it leaving it blank. The Sales Tax Information Country is defaulted to Canada which we will leave, and the Business Number could be used if you wanted to insert the Vendors GST/HST number.

Next are two important fields – Vendor eligible for a T4A  (if you are a payer, such as an employer, a trustee, an estate executor (or liquidator), an administrator, or a corporate director) and Vendor eligible for a T5018  (this form is used by a construction business to report construction subcontractor payments). Instead of reciting here all the areas of compliance for both, I have provided you with the links to the CRA areas. Please read them carefully and seek some assistance from your QuickBooks Trainer/ProAdvisor if you do not understand their use.

Next click on the Account Prefill tab. From the Select accounts to pre-fill transactions field, choose from the drop-down box an account that relates to Telephone or Communications expense, depending on what you named it when you chose your Chart of Accounts during setup. We are using Telephone expense. Then click OK.

Now we are going to set up the second Vendor, who is a sub-contractor and we’ll call them XYZ Training. Go back to the same area that you set up Rogers Communications and fill in the appropriate text in the Address Info tab. Moving into the the Additional Info tab choose Consultant from the Type field and Net 30 from the Terms field.

From the Account Prefill tab select the Cost of Goods account called Contracted Services. If you do not have one then use <Add New> and then click OK.

You have now set up two new Vendors to work with. If you have made any errors or need to add additional information, you can do so from the Vendor Centre by highlighting the vendor’s name and choosing the Edit Vendor tab.

I will carry on with Entering Bills in the next segment.

Remember that you can follow me on Twitter @twitter.com/QuikBooksTrainr for tips and updates also.

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