I will show the three methods used to create a new company in Pastel. Like all other accounting programs and ERPs, users have to know the procedures for creating a new company in the system. The methods you can use to start a new company in Pastel.

1. Using the set-up assistant
2. Copy another company.
3. Start a new company.

Click on File, New, and the following window appears.

Using the Setup Assistant

Using the Setup Assistant is the recommended way to create a new company in Pastel. All the parameters are set up you can also choose charts of accounts from a list or pre-existing ones.If your Setup Assistant has been customized for your home country, your tax rates will be set up for you by browsing through the Setup screens to ensure they are correct.Once the Setup Assistant creates the company, it is ready for you to use.To create a new company in Pastel with the Setup Assistant, use the File>>New menu option>> choose the Use Setup Assistant option in the Method frame. Click the Create button, and the first screen of the Assistant displaysOne of the screens lets you choose a general ledger chart of accounts from a pre-existing listYou should browse through the setup screens using the Auto Setup option and check your parameters. After completing this process, choose set up>> validate parameters>> and pastel checks the setup screen.Pastel displays any errors or warnings. For instance, Pastel checks each field that should contain either a control account or an entry type. If the field has no account or entry type, or perhaps contains say a balance sheet financial category account instead of an income statement financial category account, Pastel would return an appropriate error.

Using start new company option

Pastel lets you create a new, empty company with no parameters or accounts set up. This is not recommended, unless you are a Pastel expert and you understand all the parameters well. If you wish to create a new company, and you don't want to setup all the parameters in the new company, use the Setup Assistant to create a fully working company for you.Once you create the company, and you have completed the parameter setup, you should verify your parameters to ensure that you have not left out key parameters.Creating a new company in Pastel, empty company, use the File>>New menu option>>choose the Start New Company option in the Method frame

Copy another company

Pastel lets you create a company as a copy of another existing company. This is useful if you are creating a new branch which is similar to an existing company, or, you could be a consultant who has to create skeleton companies to use for new clients.

How to create and edit customer accounts in Pastel

You create and edit customer accounts in the Edit>>Customers>>Accounts menu option:

1. Enter the customer details appropriately then click the tick P to go to the next customer record or Ï to abandon the entry. When you are through click close to quit the edit customer window.
2. To edit an existing customer record, use the same procedure and save the changes.

• Choose the delete option at the edit customer accounts window to delete an existing customer record.

Creating and editing suppliers accounts

In the edit menu, select suppliers. The following window appears. Use it to enter supplier details appropriately.

1. Click new to enter a new supplier record
2. Delete to erase an existing supplier record.
3. Click on the P to save and get a new window to enter another supplier or click Ï to abandon the entry.
4. Select the close option when you are through with the editing window
5. Use the same procedure to edit an existing supplier details

Creating and editing inventory items

1. Inventory items include physical items, which are tangible items that you purchase or manufacture, as well as services that you sell. You create and maintain inventory items in the Edit>>Inventory>>Item File menu option: In the window that appears you have an option to enter a physical or a service item.
2. Physical items are tangible items that you either manufacture or purchase to resell to customers. Service items do not fit this pattern. For example, accountants sell time. They charge accounting expertise per hour. Similarly, a service company sells maintenance contracts. Organizations selling physical items may need service items like charges for delivery and so on.

Physical items have the following characteristics:

1. Pastel maintains a quantity on hand for these items. If there are insufficient quantities on hand to sell, Pastel warns you or prevents you from selling the item, depending on whether you allow processing with negative quantities.
2. You can purchase them, and therefore you can adjust their quantities.
3. Each item has an average cost, which is determined by the purchase price and the quantity on hand.

Characteristics of  service Items.

3. Pastel does not maintain a quantity on hand for service items .There is always zero on hand. For service items, in Pastel you can make infinite number of invoices i.e, when you invoice consultation hours.
4. Since service items do not have quantities, you cannot use them in inventory journals , reorder or see them in the Reorder report.
5. You cannot purchase service items to bring in quantities or adjust their moving average cost. However, you can include service items in supplier invoices. You would use these, for example, to enter your supplier's delivery charges.
6. Service items may or may not have a cost. While delivery or consulting hours may have a cost. To cost a service, you enter the cost in the Last Unit cost field, which is in the Edit>>Inventory>>Item File menu option, in the Details tab.

Costs on service items are used in two areas

On the sale of an item. Gross profit is calculated using the cost price. This is useful if you charge out consultants’ hours to a customer, and the consultant in turn charges you an hourly rate. Key in the hourly rate, (cost price) payable to the consultant, and selling price as  what you charge your customers.Increasing the cost price of finished goods when manufacturing. This gives you more flexibility than just using the three overhead accounts on a bill of materials. You can create service items that have costs and quantities. As an example, you can have x hours of one type of labor, and y hours of another type of labor.

Note that you can change an item from a physical to a service item and vice versa. If inventories integrate to the general ledgers, to correct inventories accounts you process journals in the GL.

1. Click new to enter a new item record
2. Delete to erase an existing item record.
3. Click on the P to save and get a new window to enter another item or click Ï to abandon the entry.
4. Select the close option when you are through with the editing window
5. Use the same procedure to edit an existing item details

Inventory integration at the general ledgers for service items and costs

1. If inventory integrates to the general ledger, you need to set up service items correctly before Pastel will allow you to enter costs for these items. The first thing to do is to create one or more inventory groups dedicated to those service items that have a cost. You change in the Setup>>Inventory menu , then in the Integration  or Groups tab.
2. You must ensure that the inventory and cost of sales accounts in these inventory groups belong to an income statement category.
3. However, you need to be careful of the accounts you use. There are two scenarios as follows - you can use the same (income statement) account in the group's inventory and cost of sales columns or different accounts in the group's two columns:
4. Tracking Costs for Service Items. An example will clarify how this works. If you provide delivery service, and you have delivery and cost expense accounts, you should then use the latter as the group's inventory account and the former as the group's cost of sales account.
5. When a delivery is used, Pastel debits the Cost of Sales account and credits the Delivery Expense account with the cost of the service item which you entered on that item's master file. The sale value of the item as per the invoice is credited to the sales account, and the customer account is debited. You debit the Delivery Expense account when the payment is done and credit the customer account. These results in zero value to both the Delivery Expense and customer accounts while the cost of sale and sales account will show sales value in trial balance report.

Not Tracking Costs for Service Items If you use the same account in the inventory group's inventory and cost of sales accounts, no values are written to the general ledger.