HOW TO USE GLOBAL OPTION IN PEACHTREE SOFTWARE

This option is one of the most important options in the whole software. As customer default is related to customers options, vendor default is related to vendor, so is the global option which is related which the most important options in the complete software. These options will be explained further in this topic. To open a global options window we will click on “Options” after opening the window and following window will appear on our desktop screen.

                From here we will select the option of “Global…” and on selecting this option following window will appear on our desktop screen.

                This is the main window of global options. From here we can edit the by default settings of some of the most important options of Peachtree accounting software.

ACCOUNTING:

                “Accounting” is the first tab in this global window. In the first option we see, “Decimal Entry” option. This option is for the number of decimals after the zero. We can select the decimals as per our requirements from the option available by the name, “Number of decimal places”. The maximum number of decimals which we can select are “5”. We can also select the decimal placing automatically by clicking on “Automatic” then selecting the number of decimal places as per our requirements. But for this we will have to first select the number of decimal places first and then the option of “Automatic”. Then after this we have “Hide general ledger accounts” option from where we can hide account receivables and account payables from different options in the software such as hiding the account receivable from sale order by selecting account receivable and same will be the procedure for account payable. In “Other Options” we can select different available options to implement them in our complete software. All the settings made here will be implemented in the whole software. After changing all these options or required options we click on “Ok” to save.

GENERAL:

                This is the “general” window. The first option under “Improve performance” is to print the total number of pages in the report or statements and number of quantity in hand display. The second option is “Line item entry display”. If we select “1 Line” from here then it means that if we are entering a journal entry in the general journal then we have one spare line beneath each debit line to enter the other item and if we select “2 Line” then we have two spare lines beneath each debit line to enter the other two items. Then we can also select the color theme for our software as per our taste.

PEACHTREE PARTNERS:

                From here we can select the security level for our software. We can keep it Low, Medium or High as per our requirement.

SPELLING:

                From here we can select the dictionary according to which we want our spellings to be checked and this dictionary will we selected from “Main Dictionary Language” option. Then we have many different option related to spell check and words in “Running Options”.

HOW TO RECORD A JOURNAL ENTRY IN PEACHTREE SOFTWARE

 To record a journal entry in the Peachtree accounting software, we will first open our company in the software and after owning the company in the software we will click on “Task” and following window will appear on our desktop screen.

                Now from this window we will select “General Journal Entry…” in order to pass a journal entry in the software. On clicking this, following window will appear on our desktop screen.

                This is the simple format of a general journal which is used to pass journal entries. Here we will enter the date of the transaction in the “Date” area. We can also give any reference ID to the recorded transaction by mentioning that ID in “Reference” area. By mentioning this ID, searching transactions in the general journal will become easy. In “GL Account” we enter the ID of the account which is involved in the transaction. It can be any account like salaries expense account, wages account, commission account, discount account or any account according to the situation. The first line is for debit while the second line is for credit. If there are two items in debit then first two lines can be used for debit items while in contrary if there are two items of credit then two lines beneath the debit line or lines can be used to record the credit items in the general journal. In “Description” we can enter any description related to the journal entry. In “Debit” we enter the debit amount while in “Credit” we enter the credit amount of the transaction. Like this the journal entry is passed and then saved by clicking on “Save” button at the top bar.

HOW TO MAKE A SALE INVOICE IN PEACHTREE ACCOUNTING SOFTWARE

  Sale invoice is prepared against the sales made to the customer. As soon as the goods are sold to the customer we make this sale invoice. We can make this sale invoice against the sale order for after preparing the sale order or we may also prepare this sale invoice without issuing the sale order. To make a sale invoice in Peachtree accounting software we first open the company in the software. After opening that window we click on “Task” from the top bar and following window appears on the desktop screen.

                                                                                    

                Now in order to make a sale invoice we click on “Sales/invoicing…” and following window appears on our desktop screen.

                This is the window of sales invoice. From here we can make our sales invoice. First we will write the “Customer ID” in the “Customer ID” field. The ID of that customer must match with the ID created in Customers window before. Then we will enter the date in the “Date” field and Invoice Number in “Invoice No:” field. Entering this invoice number is mandatory and it should also not be repetitive with the other sale invoice numbers. Then we will enter the quantity of the items which we are selling to our customer in “Quantity” and ID of the item in the field “Item”. Then we will enter all the items likewise and in the end after entering all the selling items we will click on “Save” in order to save our sales invoice.

How to assemble inventory

To assemble inventories go to the Peachtree Task Bar and select the option ASSEMBLIES

Here a window will appear with the name of Build/ Un build Assemblies

Give necessary information like

Item Id

 Name,

 Reference,

 Date

 Quantity to build

New Quantity etc.

How to enter Vendor Credit Memo in Peachtree Software

Vendor Credit Memo

We use the Vendor Credit Memo window to enter credit memos for returns to and credits from a vendor. We can enter a credit memo as an open credit, or we can apply it to an existing invoice. Suppose that we have a purchase transaction that we no longer need. Should we just erase it? If we want to practice good accounting, the answer is a definite no. Deleting purchases removes the audit trail that thing accountants mean when they talk about the list of transactions we enter because our business does business. When accountants can trace transactions from beginning to end, they’re really happy campers. We need to understand that Peachtree allows us to delete any unpaid purchase, even though our accountant won’t like it. Display the purchase in the Purchases/Receive Inventory window and then click the Delete button. However, Peachtree won’t allow us to delete a purchase if we’ve applied any transactions to it. Suppose, for example, that we accidentally paid a purchase that we later determined we should not have paid. If we try to delete the purchase, the Delete button in the Purchase window is unavailable. In this case, we need to void the check we wrote that paid the purchase, and then we need to enter a vendor credit memo in Peachtree to cancel the effects of the purchase. After we void the check, follow the steps in this section to finish canceling the purchase. Besides fixing errors in purchases, don’t forget about the times when a vendor issues a credit memo to us for merchandise we return. To reduce the balance we owe the vendor, we need to enter the vendor credit memo into Peachtree and match it to the original purchase. Although we can enter a vendor credit memo without having previously entered a purchase, typically we enter vendor credit memos for existing purchases. In the following steps, we assume that we’re returning any merchandise for which we receive a credit.

We first open an existing company which we have made and the following screen will be appeared in the Peach tree software after opening an existing company.

We use Credit Memo in Peach tree software by clicking on the Tasks Menu, the following screen will be appeared after clicking on the Tasks menu, and the task menu is on the top screen of the Peachtree software as shown below

We after clicking on the Task menu choose the Vendor Credit Memo which is the 12th number option in the Tasks Menu and by clicking the Vendor Credit Memo the following screen will appear in our screen.

After opening the window of Vendor Credit Memo we then enter the vendor ID in the Vendor ID field. We can use the lookup list button to select the vendor from our list of vendors. The tap of Vendor ID is given below after opening the lookup list.

After we select a vendor, we enter a date in the Date field as shown below

After entering the Data we then enter a credit number in the Credit No. field the Credit No. tab is shown in the following picture.

After entering the date we then enter the Return Authorization Tab and the A/P Account tab . A/P Account tab has been set with the account type of A/P if we want to change it then we can change the account according to our desire the. There is a discount tab also there and we can amend the discount tab according to our requirement the following screen shows the three tabs and these three tabs are not compulsory to fill out but A/P Account is important.

There are two tabs after the A/P Account one is Apply to Invoice No. and the other is Apply to Purchases tab. As we choose the ID the tap changed from Apply to Purchases to Apply to Invoice No. tab. On the Apply to Invoice No. tab, click the Apply to Invoice No. drop down list and select the invoice number of the purchase for which we’re recording a credit memo as shown below

Peach tree fills in the lines that appear on the purchase. On each line of the Apply to Invoice No. tab, in the Returned field, we type the quantity which we want to return. For example in this we take 5 quantities returned. If we plan to return everything, we can click the drop-down list arrow on the Return button, and select all to have Peachtree fill in all the amounts for us. If we are using Automatic Decimal Entry, remember that we have to put the decimal-zero after the whole number, or Peachtree adds the leading decimal: To get nine, type 9.0. Peachtree fills in the amount (unit price times quantity). The filled information about this tab is given below

If we’re returning a serialized item, click the Serial No. button to display the Serial Number Selection dialog box and identify the serial numbers of the items we are returning. Select the check box next to the numbers we’re returning and then click OK. At the end we then click the Save button to save the transaction.

 How to Make Payments to Vendors and Creditors

Payments

After selecting the payments following window will be displayed

We will select the vendor I.D.  Invoice No, Due Date and Amount will be present.

After that the discount amount will be displayed.

When we will click on the pay option the payment amount will be present with the discounted amount.

If we delete the discount option then the amount received will be without the discount.

The discount account has to be made

In case the discount is not avail by the vendor then the discount account has to be selected.

In case the discount is availed by the vendor, then there is no need to select the discount account.

 This is the procedure of recording payments to debtors and creditors in peach tree and how to avail discount.

How To Enter Purchase Order in Peach tree Software

How to Maintain Purchase Order

A purchase order is a document we use to request merchandise from a vendor. When we enter a purchase order, we do not actually update accounting information. Peachtree doesn’t actually affect any of our Accounts, that don’t happen until we either receive the merchandise or, if we’re using cash basis accounting, when we pay the vendor. In an accrual-based company, the accounting information is updated only when we receive the items on the purchase order through the Purchases/Receive Inventory window .Most people use purchase orders as reminders, particularly when ordering inventory, because the purchase order shows the items ordered but not yet received. Others use purchase orders for non-inventory items such as office supplies or contract labor to help track expected expenses. We can use the Purchase Order report to help in staying on top of things. We can’t enter purchase orders in Peachtree unless we have set up a vendor. To enter a purchase order, follow these steps:

Ø  We first open an existing company on peach tree after opening an existing company the following screen will be appeared

 Ø We then click on the Task button which is on the above screen on the Peachtree software and when we click it the following \drop down list will be appeared in the Peachtree software

Ø  We then move the cursor of the mouse towards the seventh option from Task Menu which is Purchases Orders... By clicking on the Purchases Orders the following screen will appeared

   The top part of the purchases order window contains header Information such as vendor name, address, quote number, date and other information.

1) The first step in creating the Sales Order is we Type or selects the Vendor ID. Peach Tree displays the Customer’s current balance and credit limit in the lower-left corner as shown in the following screen

     

   Type the vendor’s ID in the Vendor ID text box or clicks the lookup list box selector to display the list of vendors. If the vendor exists, Peachtree fills in the vendor’s name and the Remit To address. The company’s name also appears in the Ship To address box. We can see the vendor’s current balance as of the system date, and we can click the button next to the balance to display a Vendor Ledger report of the purchases and payments that comprise the balance. If we need to add a vendor, click the lookup list selector and then click the  button on the toolbar. Peach tree displays the Maintain Vendors window as shown in the below window

As mentioned earlier in How to Maintain a Vendor’s Account session Maintain new Vendor and close the window to return to the Purchase Orders window.

2) We then move to the next step in which we enter the Date we want printed on the Purchases Order and an Expiration Date for the Purchase Order. The software assumes that the purchase order is valid for a period of 30 days and prints the ending date on the purchase order form. If we are giving our vendor longer or shorter period of time, we choose a different date in the Good Thru date box ,the date can be entered or selected from the Calendar available in the Good Thru when clicking on the Good Thru option or in the Date option the calendar will be appear we select the date from here or write it, but if we going to write the date manually without using calendar we then enter first the month and then the date and then the year for example for 21st February 2010 we write 02/21/2010 instead of writing 21/02/2010. It is because peach tree is American accounting software so in America this format of writing date is applied. We can select the date through the calendar which is shown in the following screen

3) In the third step we enter Purchase Order Number i.e. PO No. In PO No. text box, we type a number for the purchase order if we don’t intend to print it but just want to save it or if we intend to print it later. If we intend to print the purchase order, leave the PO No. box blank, and Peachtree supplies a sequential purchase order number when we print the purchase order. We can’t use the same purchase order number more than once for a particular vendor. We can reuse a purchase order number as long as we assign it to a different vendor.

4) We then enter Customer Invoice Number.

5) After entering Customer Invoice Number we then select the Discount terms for the order. The peach tree allows us a standard discount of 2/10, n/30 we can change the discount rate according to our desire.

6) We after entering the discount terms then move on the Shipping Method and select the shipping method from the Ship Via list drop down box as shown in the following screen.

7) We then move to the A/P Account and select the Accounts Payable account for this A/P Account.

8) In the Quantity text box, type the quantity we want to order.

9) Click in the Item box, the Lookup list box appears so that we can select the item we want to order from the existing inventory items from the drop down list as shown below

Peachtree fills in the item description, the general ledger account associated with the item, the item’s unit price, and the amount (unit price time’s quantity). If we want to order something that we haven’t set up as an inventory item then we have to maintain the inventory account and maintain and save the inventory item which we want to save and use so for maintaining the inventory item from this purchase order window just click on the new button which will appeared in the Item drop down list and the following screen of Inventory will be appeared

As mentioned earlier in How to Maintain an Inventory Account session we follow the steps and maintain a new account after maintaining the account we save and close the window to return to the Purchase Orders window. After filling the Item box we then fill in the Description, GL Account, and Unit Price text boxes. Peachtree calculates the amount as shown below.

10)  Click in the Job box to display the Lookup list box selector and choose a job from the list. If we’re purchasing a Stock item or an Assembly item, we cannot assign it to a job; however, if we’re purchasing any other type of item, we can assign it to a job.

11) Repeat Steps 8 and 9 for each item you want to order from this vendor.

12) Click the save button which is in the above screen of the purchase order screen. That’s how we can enter and maintain the Purchase order Peach tree software.

How To Maintain Inventory Items

Peachtree Inventory will keep track of the last unit cost of products which we buy for resale whether we keep these products in inventory or they are brought for specific jobs. When we create inventory items, we set up the goods and services we sell. We set a price (actually, we can set up to ten prices) at which we want to sell the product and the account we want Peachtree to adjust when we sell this item or service. But before we can set up selling prices, we need to supply basic information about the item. Before we are able to record transactions relating to inventory, we first need to set up the inventory items. To set up the Inventory Items we first have to open an existing company. The following screen will be appeared when we open an existing company.

We then click on the Maintain menu which is in the above screen of the Peachtree Accounting Software. We when click on the Maintain Menu the following screen will be appear

We then move the cursor of the Mouse in the Inventory Items options so that the Inventory Items box is selected as shown in the following screen

We after that click on the Inventory Item screen and the following screen will be appeared In the peach tree software screen

Peachtree Accounting lets us track inventory items both in purchasing and sales (for stock items only). When we set up an inventory item, we can establish the general ledger accounts to update with purchases and sales. If we choose, Peachtree Accounting tracks the cost of goods sold, stock levels, sales prices, and vendors for our items.

1. Peachtree displays the Maintain Inventory Items window, with multiple tabs for each item. The header information consists of the item ID, description, and class. The most important field in this window is the Item Class. There are several types of items we can use in Peachtree Accounting. These are called Item Classes and these items are shown in the Peachtree accounting software and we can select the Item from the drop down list provided. The Item Class is shown in the below given screen

The Item Class includes the following Items in it.

• Stock: Inventory items we want to track for quantities, average costs, vendors, low stock points, and so on.

• Non-stock: Items such as service contracts that we sell but do not put into the inventory.

• Master Stock: Items that consist of information shared by a number of sub stock items.

• Serialized Stock: Items that have serial numbers that we plan to track. Serialized stock items appear only in Peachtree Premium edition.

• Assembly: Items that consist of components that must be built or dismantle.

• Service: Services provided by the employees that we bill to our customers.

• Labor: Charges we bill to a customer for subcontracted labor on that customer’s projects.

• Activity: Records of how time is spent when performing services.

• Charge: On-the-job expenses of an employee or vendor.

• Description Only: Timesaver when we track nothing but the description.

If we save an item as a stock item, an assembly item, an activity item, or a charge item, we can’t change its item class. Although we probably wouldn’t want to, Peachtree does allow us to interchange the item class between non stock, description, labor, and service items.

We mainly choose Stock Item as we want to be able to track the most recent price paid. By choosing Stock Item, we are telling Peachtree that when this item is purchased, its price is to be recorded in the Last unit Cost field on the inventory screen. This feature allows the operator to quickly and easily look up what was paid for that item

2. After selecting the Item Class we then give the Item ID and enter a short identification code for the item of inventory. Keep in mind that the Item ID appears in lookup lists for sales transactions and so on. Peachtree allows item IDs with up to 20 alphanumeric characters. IDs are case sensitive and can’t contain the asterisk (*), question mark (?), or plus symbol (+). Then we enter the Description of the item of an inventory. This description appears in the item lookup lists.

3. Peachtree also provides the For Sales description and For Purchases description. We by clicking the arrow under description select the description we want to enter. The description is up to 160 characters, sales appear on quotes, sales orders, sales invoicing, and receipts. Where as   purchases description appears on purchase orders, purchases/receive inventory, and payments. We can modify either for sales or for purchases description when we create a transaction. Follow these steps to enter general inventory information: Entering information in the For Sales and For Purchases boxes is optional. If we do not specify a sales description, Peachtree uses the lookup description when we enter a quote, a sales order, an invoice, or a receipt. If we don’t specify a purchase description, Peachtree uses the For sales description when generating purchase orders, purchases, or payments. If a sales description doesn’t exist, Peachtree uses the lookup description.

4. Peachtree refers to the amounts that appear on the quotes, sales orders, and invoices as sales prices. The sales pricing levels correspond with those we assign for our customers in the Maintain Customers/Prospects. If we charge only one price for this item, no matter which customer, enter only Price Level 1. To enter additional sales prices, click the arrow. The Multiple Pricing Levels dialog box is shown in the below screen.

Be consistent when entering item sales price levels (for example, from lowest to highest or highest to lowest). Items prices can be a static number we assign, or we can create a calculation using the current price or the last cost as the foundation of the formula. By default, Peachtree uses the pricing calculation we entered when creating inventory defaults. We can, however, click the Edit button to display the Calculate Price Level box and create a different calculation. We can increase or decrease the price by a percentage or an amount. When we have finished, click OK twice to close both the Calculate Price Level dialog box and the Multiple Price Levels window.

 

5. In the Last Unit Cost Box, we enter the amount which we last paid for this item, this is an optional part with out this we can save an Inventory Item. After we enter transactions against the inventory item, the Last Unit Cost box becomes unavailable. Peachtree automatically updates the Last Unit Cost as we enter purchases, payments, adjustments, or beginning balances, calculating the amount based on the costing method.

6. After that we choose the Cost Method as it is a very important field. We can’t change a costing method after an inventory item is saved. Costing methods apply only to serialized items and serialized assemblies, stock items, master stock items, and assemblies. In addition to tracking serialized items and serialized assemblies by their specific unit cost, Peachtree supports three other costing methods: average cost, LIFO (last in, first out), and FIFO (first in, first out). We set all inventory items to use the same costing method.

7. In this step we select the three main accounts without which we are not able to save the Inventory Item, these three accounts includes GL Sales Account, GL  Inventory Account and GL Cost of Sales Account. We by clicking on the select option Select the Sales account in the GL Sales Account as shown in the given screen.

After that we then again click on the option button which is in front of the GL Inventory Account and select  Raw Material Inventory Account for this GL Inventory Account as shown in the following figure

And similarly we choose Cost of Sales Account for GL Cost of Sales Account as shown in the following screen

8. After selecting the Accounts we then choose an Item Tax Type. The tax type we select applies when we enter the inventory item on quotes, sales orders, invoices, or receipts. If we assign an exempt tax type to an item, the item will never be taxed. If we assign a taxable tax type to an item, we can still exempt the item from tax at the customer or invoice level.

9. We then enter the Universal Product Code UPC or Stock Keeping Unit SKU number for our bar coded items, this is optional.

10. This step is also optional in it we enter an item type. We need this when we’re generating reports. Grouping items is much easier when they’re marked, for example, “supplies” or “raw materials.” Item types are case sensitive.

11. After entering the Item Type we then enter a storage location for the unit. This is not compulsory but may be someday we may need to know where the unit is located, such as Bin 21 or in the 5th Shelf or in the goods are store in the garage. The storage location is helpful also when doing a physical inventory.

12. We can also enter the unit of measure; this is also an optional part. We may sell our products on an individual basis (each), in pairs, per dozen, per pound or kilogram, or per ounce

13. In the Minimum Stock box, we enter the quantity at which we want Peachtree to remind us so that we can reorder the item and we have never had shortage of the item. When the quantity on hand reaches the minimum stock quantity, Peachtree prints the item on the Inventory Reorder Worksheet. Although entering a minimum stock point is optional, you need to enter a minimum stock point if you want software to automatically create a purchase order when the stock gets low.

14. Reorder quantity is the quantity we generally purchase when we order the inventory item. Entering a reorder quantity point is also optional, but we need to enter a reorder quantity if we want Peachtree software to automatically create a purchase order when the stock gets low.

15. We after selecting the Reorder quantity select a Vendor. Selecting a vendor doesn’t mean that’s the only vendor from which we purchase the item. It just means that this vendor is the important vendor and deals with us most of the time. We must supply a Preferred Vendor if we want Peachtree Software to automatically create purchase orders for reorder or for drop ship transactions and non-drop ship transactions.

16. The information can appear on the Buyer Report and can be used to select items for automatic purchase orders.

After completing the General Information about the Inventory Item we then use custom fields to store miscellaneous pieces of information about the inventory item that just don’t seem to fit anywhere else in the Maintain Inventory Items window. Examples of such items are a substitute item number, the product average shelf life, or information about an alternate vendor for the product. One of our clients uses a custom field to store the chemical makeup of each item. The Custom Field is shown in the following screen.

After entering the General and Custom Field we enter the History about the Inventory, in the History tab displays a summary of inventory transactions for stock, assembly, and serialized items for past periods. Peachtree shows units sold and received as well as sales and costs by accounting period. Peachtree does not retain history for non stock, service, and the remaining class items. The History screen of the Inventory Items are as follows.

After completing all the information we then click on the button which is shown in the above screen of the Maintain Inventory Items Menu. When we save the Inventory Item ID the following screen will be shown in which current balance option will be appeared through which we can enter the beginning balance of the Inventory.

We can enter Beginning Balance by opening the General Tab after saving an Inventory Item and then we click on the Beginning Balance button the following screen will be shown after clicking the beginning balance button

We first select the Item ID and after selecting it we then enter Quantity, Unit Cost and Total Cost in the given boxes as shown in the above screen and fill these boxes and after completing we then press OK button which is shown in the above screen of the beginning balance screen. This is how we can save an Inventory Item.