Use Vendor Classes to define classifications for vendors. Vendor classes streamline the creation of vendors: when you assign a vendor class to a new vendor, predefined settings from this class automatically provide many details that you would otherwise have to enter manually. For example, the default bank account to use for making payments to the vendor and the default vendor payment terms. Vendor classes are not company-wide. Each of your internal companies maintains its own set of vendor classes that is specific to its accounts payable needs.
Setting Up Vendor Classes
Select Financials | Setup |Vendor Classes.
Click New to create a new vendor class.
In Description, specify a description for the vendor class.
In the Vendor Defaults area, specify the following settings:
In Bank Account, select the account that you want to set up as the default bank account. You can also create a new bank account by using the Quick Add feature. For more information, see Quick Add.
In Payment Method, select the method of payment that you want to set up as the default. You can also create a new payment method by using the Quick Add feature.
In Terms, select the terms that you want to set up as the default. You can also create a new term by using the Quick Add feature.
In the Default General Ledger Accounts area, specify the following settings:
To specify the Accounts Payable Account, select the account in Acct, the department in Dept, the territory in Ter, and the product line in Prd. You can also create new account segments by using the Quick Add feature.
To specify the Sales Tax Account, select the account in Acct, the department in Dept, the territory in Ter, and the product line in Prd. You can also create new account segments by using the Quick Add feature.
To specify the Expense Account, select the account in Acct, the department in Dept, the territory in Ter, and the product line in Prd. You can also create new account segments by using the Quick Add feature.
To specify the Discount Earned Account, select the account in Acct, the department in Dept, the territory in Ter, and the product line in Prd. You can also create new account segments by using the Quick Add feature.
Click Save and New, or click Save and then click New, to save the current vendor class and start adding the next.
A: The vendor class is currently being used somewhere in the System. You can only delete vendor classes that are not being used.
A: These account groups function as follows:
Accrued Accounts Payable – credited for the amounts owed vendors on receipt of purchased goods and debited on receipt of vendor invoices
Purchase Price Variance - Standard Cost – used to record any purchase price variance (PPV) at purchase order receipt (applies to items using the standard-cost costing method only)
Purchase Price Variance - Invoice – used to record any PPV at accounts payable invoice entry
Accounts Payable – credited at accounts payable invoice entry
Freight Expense – debited when vendor invoices include freight charges or when the freight line item type is used
Sales Tax Expense – debited when vendor invoices include sales tax or when the sales tax line item type is used
Expense – debited at accounts payable invoice entry to record expenses typically booked to vendors. This account group is optional
Discounts Earned – credited for finance discounts taken at payment selection and processing
A: Yes, Vendor Classes supports both commands.