The vendor file contains every vendor you'll ever
do business with, including account number, name,
address, and some account information.
The vendor code tracks purchases and invoices for
the things you buy. The vendor account keeps a running
account balance, so it's easy to see at-a-glance
just how much you owe someone. When an invoice is
added into Accounts Payable, you'll enter the vendor
number first -- this links the invoice to the vendor
account on reports, especially the account agings.
Deciding who is a vendor is simple: If someone invoices
you for things or services you buy, they're a vendor.
You can't add a payable invoice unless the vendor
exists (although you can add a vendor at the same
time as the invoice). Once a vendor is added, it
can be used again by entering in the vendor number.
Detailed account information can be easily maintained for each vendor, including
task, markup, and notes. This information stays in a central location (your Clients & Profits
database) and is generally accessible to everyone. This makes finding vendor
information much faster than using someone’s Rolodex cards or filing system.
This information can be entered, changed, or deleted, any time.
A vendor with a balance or any activity (including
paid invoices) can't be deleted. Otherwise, its
invoices wouldn't have a vendor account balance
to update on aging reports.
How Clients & Profits ASAP manages vendor
markups
One of the ways in which markups are managed is
through the vendor account. Every vendor can have
a special markup percentage. This percentage is
copied automatically to every invoice you'll add
for the vendor. It's a useful way to precisely control
your markups, for more consistency and accuracy.
Here's how it works: When a vendor is first added,
it gets a markup from Agency Information. This is
the standard agency markup. When an invoice is added
for this vendor, its markup is copied to the invoice.
If a job task has a guaranteed markup (which you
would have set up on the client account or task
table, per some arrangement), it replaces the vendor's
markup. Of course, you can still change the invoice's
markup without affecting the job or the vendor account.
This ability lets you program basic markups for
different vendors. Some vendors, like printers,
might always have the standard 17.65% markup (which
calculates to a 15% commission on the cost). Other
vendors, like typesetters, might have a 50% markup
since their invoices are smaller. Or, a large vendor
(like a media firm) might have a 12% markup because
of the relatively high dollar volume. In all cases,
it's your choice -- and one that you can make or
change anytime, very easily.
Vendors, staffers, freelancers, and temps
Staff members aren't vendors, since they're paid
through payroll. Staff time is accounted for with
time sheets, not A/P invoices.
 Just
what is a freelancer? A freelancer can
be both a staff member and a vendor. If you'll track
a freelancer's time on an hourly basis with Time
Cards or Time Sheets, then he or she is added as
a staff member. But if the freelancer is also added
as a vendor, then he or she should be added twice
-- once as a vendor then again as a staff member.
The staff member's initials must be different from
the vendor number. If a staff member has the same
code as a vendor, costs will appear duplicated on
job cost reports -- but it's just a cosmetic problem.
To prevent this problem, give the freelancer slightly
different vendor and staff codes.
What are temps? A temp acquired from a temporary
placement agency is not a vendor; instead, he or
she is a staff member. So who is the vendor? The
placement agency is the vendor, since they'll be
sending you bills for the temp's hours worked.
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