Vendor Categories


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Vendor Categories can be found on the Bookkeeping tab of Vendor Prefs:



The Sales Tax Paid Category applies to sales taxes you pay. Postings are created for this category when you generate Bills that have a sales tax amount. Its Account Type should be Expense.

The Discounts Taken Category applies to discounts taken on Bills. For example, if you take a discount for early payment, the discount will be assigned to this Category. Its Account Type should be Cost of Goods Sold.

The Finance Charge Category applies to finance charges you pay. Its Account Type should be Expense.

The Other Charges Category applies to amounts entered into the Other Charges field of Bills. Postings are created for this category when you generate Bills that have an other charges amount. Its Account Type should be Expense.

The Default Expense Category applies to Miscellaneous Bills for a Vendor. It is automatically inserted into the Income Category when you create new Vendor Cards. Different Vendors can be assigned different Expense Categories. Postings are created for this Category when you generate Miscellaneous Bills. Its Account Type should be Expense.

The Default Payables Category applies to unpaid balances you owe to Vendors. It is automatically inserted into the Payables Category when you create new Vendor Cards. Different Vendors can be assigned different Payables Categories. Postings are created for this Category when you generate Bills, Miscellaneous Bills, or Make Payments for Bills you have entered. Its Account Type should be Current Liability.



Related:


Chapter 9 Accounting