Creditors are businesses that have extended you credit facilities, such as suppliers. Even though almost every business has credit with other businesses, you may elect not to use the Creditors Module as your business doesn't have many supplier transactions or your terms are COD. You can run Equity without using the Creditors Module at the start and when you become more familiar with the program you can decide if you really need to use it.
Each creditor must be given a code and the choice of code is up to you. It can be a name or numeric or a mixture of both. Our recommendation is a shortened version of their company name. This code is used to look at and maintain the creditors record, invoice and receive payments and report on your creditor situation.
You will need to enter all their details such as name, address and phone, as well as specific terms and discounts using Creditor Maintenance. Opening balances are entered using the Creditor Journal Entry option. Both of these are found in the Creditor Control Menu.
As this is covered very well in the Creditors Module section of this manual we won't repeat the information here. Refer to Add New Creditor for detailed information on adding creditors.
Again, this is covered well in the Creditors Module section. Refer to Entering Opening Balances for detailed instructions.