a. Customers: Adding Customers to the ledger enables one to create Sales Invoices.
a.1 Type of Business
Prior to creating customers, one may wish to categorize customers. Here we will take the simple scenerio of Retail customers as opposite to Wholesale customers. For that purpose, one will go to Type of Business->Add Business and type in the Type of Business dialogue box “Wholesale” then in Discount %, 20 as for 20%. Now for this example, we have two types of business; retail which is the default or 0% and secondly, any business tagged with “Wholesale” will have their respective invoices reduced by 20%.
a.2 Customer Codes-Number
To speed up customer searches, it is often practical to assign a 3-4 letter code (SQL-ledger states “number”) to each customer; such as for Alice's Book Shop could be AL01 where one, for example, takes the first two consonants plus a two digit number to create unique codes for every customer. Note that the ledger uses Customer Name as a priority and these are shown in alphabetical order in the dropdown list in the Sales Invoice.
a.3 Two Necessary Customers
For practical purposes, one will need a customer called “CashSale” wherein a simple retail sale can be registered. Secondly for inventory purposes, one will need a customer called “StockAdjustments” whereby some stock issue can be addressed.
a.4 Customer Details
Apart from address and contact details, the following needs to be set:
usually the VAT box is to be ticked and this will apply VAT to every sale for that particular customer.
In the dropdown box beside “AR”, one needs to choose the Accounts Receivable choice.
Likewise for payment, it would be “cashbox” (create that account if missing) unless that particular client pays by cheque. Note: other accounts can be created for other modes of payment eg. Mobile Money.
Terms Net is usually 0 days unless one is prepare to give credit sales.
b. Vendors: Adding Vendors to the ledger enables one to create Vendor Invoices/Bills, useful for putting stock with monetary values into your inventory.
b.1 Vendor Codes-Number
As explained for customers, the same explanation. To speed up vendor searches, it is often practical to assign a 3-4 letter code (SQL-ledger states “number”) to each vendor; such as for Alice's Publishers could be AL01 where one, for example, takes the first two consonants plus a two digit number to create unique codes for every vendor. Note that the ledger uses Vendor Name as a priority and these are shown in alphabetical order in the dropdown list in the Vendor Invoice.
b.2 One Necessary Vendor
For practical purposes, one will need a vendor called “CashPurchase” wherein a simple stock purchase can be registered.
b.3 Vendor Details
Apart from address and contact details, the following needs to be set:
usually the VAT box is to be ticked and this will extract VAT from every purchase for that particular vendor. The Tax number will also be important to enter for VAT refunds.
In the dropdown box beside “AP”, one needs to choose the Accounts Payable choice.
Likewise for payment, it would be “cashbox” (create that account if missing) unless that particular vendor is paid by cheque. Note: other accounts can be created for other modes of payment eg. Mobile Money.
Terms Net is usually 30 days for credit purchases.