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.