|NESFA® Treasury Procedures – Table of Contents||Last updated, but inactive, 25-Jun-2012.|
This procedure was superseded for a simpler procedure, enabled by a Peachtree feature which was not known at the time the original procedure was written. The new procedure eliminates the need to generate an internal bill and then pay the bill. Instead, the received books can be bought directly from the AS-BOOKnnn account, using the Tasks\Payments dialog.
Buying in a book is triggered by the receipt of the final bill from the printer with a number of books printed on it. Before you buy in a book you must pay the printer and record the royalty to the author. These are the usual last postings against the book asset account used to accumulate the costs of producing a book. Paying the printer is a simple payment transaction just as for any NESFA bill. Recording the royalty is a general ledger transaction that debits the book asset account and credits the royalty account for the author.
Buying in a new book is a multi-step process. It consists of:
Before you can buy in a book, its asset account must exist. You (or a previous treasurer) must have already created the AS-BOOKnnn book asset account to accumulate the costs of production for the book and all the major costs of that book must have been already entered, so that the AS-BOOKnnn account contains the actual costs to produce the book. For a new book, the book asset account should include payment to the artist (though a few of them have been contracted under royalty agreements and so are handled similarly to payment to the author). The majority of the entries to the book asset account should be costs of printing and shipping for both text and cover, binding charges, possibly charges for galleys (printing and shipping to reviewers), and charges for shipping to PSS.
There must also be a royalty account for the author (RY-Zzzzzz where Zzzzzz is the author's name) to accumulate all the author's payments for all their books. This royalty account should exist as it should reflect a debit from the author having been paid their advance. The credit from the knowledge of the number of books printed should leave the amount owed the author as the royalty account balance. We are up to date if the balance of an author's royalty account is zero. A royalty check to an author debits their royalty account.
As an example, for the Yolen 2 book, Once Upon a Time (She Said) the accounts are:
In PeachTree, select Reports, General Ledger, predefined GL 3...(to be continued...SL)
(check that the royalty and asset accounts are debited and credited as described and not vice versa!)
This is a two-step process. In the first step we create a Purchase/Receive Inventory form, and in the second we actually do the purchase.
Buy books into inven
Buy books into inven
Savein the forms menu bar to save the form.