Setting up Supplier Groups

Setting up Supplier Groups

Before setting up supplier accounts, you must set up supplier groups, one of which will be allocated to each supplier. This allows you to set up trading terms for each group, saving you having to re-key it in for each supplier. For example, you might want to set up one group as sub-contractors who require payment in 14 days. It is then easy to run a report of all sub-contractors to ensure that they all get paid on time.

To set up a Supplier Group:

1. Select Suppliers in the Folders list (left of screen) and the second level menu appears underneath.

2. Select Groups,** **and a list of any existing groups appears in the main viewing area (right of screen).

3. Select New on the menu bar and an Add New Supplier Group screen will appear:

   

Image Description

The "Add New Supplier Group" dialog window. The toolbar includes Save & Close, Save & New, Copy, Paste, and Print buttons. The "Details" section shows fields for: Group Status (set to "Active"), Group Title, Accounting Method (set to "Open Item"), Usual Trading Terms (set to "Cash Only"), Usual Prompt Payment Discount (percentage field), and Usual Withholding Tax Rate (percentage field). Below is the "Ledger Control Accounts" section with a warning message about changing control accounts after transactions have been posted. Fields include: Balance Sheet Creditors Account (showing account number and "Trade Creditors"), GST Deductable Account (showing account number and "GST Deductable"), P & L Discounts Received Account, Retentions Payable Account (showing "Creditor Retentions"), Tax Withheld Account (showing "Tax Withheld"), and Withholdings due to no ABN (showing "Creditor Retentions").

Add New Supplier Group

Details

• Group Title: Type in the Group title here which is relevant to a particular type of suppliers, for example 'Sub-Contractors'. This title appears on reports and other documentation.

• Accounting Method: Select an accounting method from the drop-down list: Open Item: This accounting method tells you exactly what invoices are outstanding for a particular supplier. Balance Forward: This accounting method tells you how much is owed to a particular supplier.

• Usual Trading Terms: Apply trading terms to a particular group of suppliers. For example, if you set up a group called 'Cash Suppliers', you might want to set trading terms to cash only. It is also possible to overwrite this for individual suppliers. For example, if you have a supplier with whom you have a good relationship, they might decide to offer you 30 day's credit. This can be set for the individual suppliers in the supplier details.

• Usual Prompt Payment Discount: Set a discount that will be applied from suppliers in this group if you satisfy their credit terms. If they do not offer a discount, set this to 0.00%

• Usual Withholding Tax Rate: If withholding tax applies then enter the withholding tax rate applicable to this group.

  Ledger Control Accounts When you enter a transaction, the postings to the control accounts will be posted automatically in accordance to the ledger accounts you specify.

• Balance Sheet Creditors Account: Enter the Trade Creditor's Account number, click Find to the right of the field to select from a list of existing accounts, or set up a new ledger account.

• GST/VAT Deductable Account: Enter the Tax Receivable Account number, click Find to the right of the field to select from a list of existing accounts, or set up a new ledger account.

• GST/VAT on Purchases not yet Paid Account: (only if your Tax reporting method is Cash or Payments basis in the company setup) Select the Balance Sheet asset account for tax on purchases which will deduct from your liability.

• P & L Discounts Received Account: Enter the Discounts Received Account number, click Find to the right of the field to select from a list of existing accounts, or set up a new ledger account.

• Retentions Payable Account: Select the Balance Sheet Account for money which you are retaining on jobs done by suppliers.

• Tax Withheld Account: Enter the Balance Sheet Account number for contractor withholding tax, click Find to the right of the field to select from a list of existing accounts, or set up a new ledger account (see Adding a Ledger Account).

• Withholdings due to no ABN (Australia): Select the Balance Sheet Account for tax you have withheld from suppliers with no ABN number.

  Save Settings When you have entered the relevant supplier group details, select either: Save and Close: This will save the supplier group information and bring you back to the main menu. or: Save and New: This will save the supplier group information and open a new Add New Supplier Group screen. The drop-down lists are defaulted to your previous entries.