Accounting & Bookkeeping & Small Business Forum

[isaac_cm]

Hello,
I need to know the correct process I should make to deal with the sales to vendors and purchases from clients for a small inventory application

Thanks

[irsfixer]

isaac_cm wrote: Hello,
I need to know the correct process I should make to deal with the sales to vendors and purchases from clients for a small inventory application

Thanks

You buy from vendors, you sell to customers.

[isaac_cm]

I said sometimes I buy from customers and sell to vendors ,
I need to know how I should implement this in a small inventory application

Thanks

[RobJ]

isaac_cm wrote: I need to know the correct process I should make to deal with the sales to vendors and purchases from clients for a small inventory application
What do you mean by "a small inventory application"? Can you provide an example?

Rob

[isaac_cm]

I am making a small windows application to handle the inventory transactions

example to what ???
sorry but I dont know how to explain more than that

[RobJ]

isaac_cm wrote: I am making a small windows application to handle the inventory transactions

example to what ???
sorry but I dont know how to explain more than that
Do you sell this software to both your customers and your vendors?

isaac_cm wrote: I said sometimes I buy from customers and sell to vendors, I need to know how I should implement this in a small inventory application
I don't understand why buying from customers and selling to vendors is important. Can you explain further? I'm sorry that I'm having such a hard time understanding your problem.

Thanks,

Rob

[irsfixer]

isaac_cm wrote: I said sometimes I buy from customers and sell to vendors ,
I need to know how I should implement this in a small inventory application

Thanks

No, you did not say that. If you buy from a customer, they become an vendor too. If you sell to vendors, they are customers too. The sales/purchases are trested like any other sale or purchase.

Ask a better question if you want a better answer.

[isaac_cm]

RobJ, irsfixer
I am making an inventory software , I am the owner of this inventory store I sell goods and purchase goods not the software

so sometimes I sell to vendors and buy from customers, I know that vendors accounts is credit and customer account is debit is that correct to sell to credit account ?

or should I consider it like sales return (to customers) and purchase return (to vendors) ?

Thanks

[RobJ]

isaac_cm wrote: I am making an inventory software , I am the owner of this inventory store I sell goods and purchase goods not the software

so sometimes I sell to vendors and buy from customers, I know that vendors accounts is credit and customer account is debit is that correct to sell to credit account ?

or should I consider it like sales return (to customers) and purchase return (to vendors) ?
Thank you. I think I understand your question. Assuming that you are using an accounting program to keep track of your finances, the program will have "customers" and "vendors". For most of us, the line is never crossed, but in your case, it is. Unless the accounting program prevents you from recording a sale to a vendor, you will record the sale just as though you had made the sale to a customer.

As an alternative (not something that I would bother with), you could create a customer account and a vendor account for those customers and vendors that cross the line. That might help you distinguish between the two.

I hope that helps.

Rob

[isaac_cm]

Yes RobJ I saw peach tree accounting and quick books they dont allow sell to vendor or purchase from customers so I am doubt if what I want to do is correct!!.

so you mean I create a customer (debit) account to handle all the purchase from vendors ? but this way I cant keep track for all the vendor transactions

this really confuse me up I wish if there is a way to handle selling to vendors without mixing between those two accounts

[irsfixer]

What is an inventory store?

You simply set them up as a vendor and a customer.

[RobJ]

isaac_cm wrote: Yes RobJ I saw peach tree accounting and quick books they dont allow sell to vendor or purchase from customers so I am doubt if what I want to do is correct!!.

so you mean I create a customer (debit) account to handle all the purchase from vendors ? but this way I cant keep track for all the vendor transactions

this really confuse me up I wish if there is a way to handle selling to vendors without mixing between those two accounts
You are correct, QuickBooks will not allow you to select a vendor when preparing an invoice or select a customer when preparing a purchase order. I'll provide an example that you may find useful.

You didn't say which accounting program you use. In the case of QuickBooks, for every customer or vendor that you sell to and make purchases from, you will add them to the "customer list" and to the "vendor list". For example, you sell to and also make purchases from XYZ Company. In QuickBooks, you will add XYZ Company (1) to the customer list and XYZ Company (2) to the vendor list (you can replace the "(1)" or "(2)" with any designation that you find useful). When setting up the company in the customer or vendor list, you will use the company's real name so invoices and payments would show the company's correct name.

Does that help?

Rob

[isaac_cm]

yes of course but now I have two accounts for one company , is there a way (in quick books) to get the current net balance of both ? so I dont worry if this vendor has also sales invoices or not

Many Thanks

[RobJ]

isaac_cm wrote: yes of course but now I have two accounts for one company , is there a way (in quick books) to get the current net balance of both ? so I dont worry if this vendor has also sales invoices or not
What accounting software are you currently using? Are you planning to switch to Peachtree or QuickBooks? Do you use invoices in the course of your business? If you'll answer these questions, I can help you further.

Rob

[isaac_cm]

ok
I was using Peachtree I also tried Quickbooks and now trying to make my own small software , so be free to tell me how to do what I want in Peachtree or QuickBooks

and yes I use invoices

Thanks alot