Portions of the Peachtree First Accounting, Peachtree Pro Accounting,. Peachtree Complete Accounting, Peachtree Premium Accounting and. Peachtree. Page 1 of 29 PEACHTREE ACCOUNTING STEP BY STEP EDITED BY PATRICIA A CARSON, CQA Page 2 of 29 1 To use this manual: Please read all sections. For PDF manuals, TeachUcomp, Inc. allows the owner of the PDF manual to make up Sage Software, Peachtree, Peachtree Complete Accounting, Peachtree.
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This Sage Accpac License Agreement for Simply Accounting by Sage documentation (printed and electronic manuals, guides, bulletins and. medical-site.info Portions of the Sage 50 Pro Accounting, Sage 50 Premium Accounting and Sage 50 Quantum .. Create a Manual Online Backup. 54 To create a PDF from the Select a Report or Form window. If you have been keeping your financial records using manual methods, you All Programs➪Peachtree Premium Accounting ➪Peachtree Premium.
Peachtree displays the Startup screen each time if the last company opened was Bellwether Garden Supply. Getting to Know Windows The following illustrates basic parts of a window. Status bar Mouse pointer Window border. Below are of some basic windows terms: Window menu: The window menu is opened or closed by selecting the miniature button in the upper left corner of any window.
Most of the Window menu commands deal with controlling the windows on the desktop. Title bar: This is the bar at the top of the window. When a company is open in Peachtree Accounting, the name of the company is displayed. You can select the title bar with your left mouse button and drag it to move the entire window around on the desktop. Menu bar: This displays all the menu options available in Peachtree Accounting.
These options may change depending on the particular window that is open. When you select a heading from the Menu bar, a menu of options appears. You then select one of the menu command options available. You can select a menu option without using the mouse by holding down the a key and pressing the underlined letter in the menu option.
For example, if you use passwords, you may have limited access to certain areas of the program. Selecting the Minimize button reduces the current window to a button on the Taskbar. Selecting the Maximize button expands the current window to fill the entire desktop, or screen area.
The Restore button returns the window to its original size. Scroll bar: If there is too much information to fit in one window, a scroll bar displays enabling you to move the window to see additional information. Scroll arrow: When selected, the scroll arrow moves the window up, down, or sideways to view more information if not all contents can be displayed at once. Scroll box: Selecting the scroll box, you can drag it up or down to quickly move through the window contents.
Status bar: The gray bar at the bottom of the Peachtree Accounting window shows abbreviated help information about the current field. It will display an alarm clock icon when there are Alerts due. Alerts are action items you want to be reminded of; they are set up through the Tasks, Action Items option. You can hide the status bar by unchecking the option through the Options menu. Window border: The window border, when it is thick, can be used to size the window.
Move the mouse pointer to the border; when you see a double-sided arrow, click and hold the left mouse button and drag the arrow until the window is the desired size. Mouse pointer: This arrow-shaped cursor shows where you are on the screen when you have a mouse installed.
Navigation Aids: These are unique Peachtree Accounting tools that offer you a graphical alternative to the Main Menu options. The major functions of the program are represented as icons or pictures that show you how tasks flow through the system. You can use the mouse to select an icon to perform the specific task you want. Do This When a window is maximized, the Maximize button changes to a Restore button.
To display a taskbar minimized window, simply click its button on the taskbar.
Navigation Aids In addition to the Main Menu options, you have another method of opening windows in which to perform tasks or data entry.
This option is called the Navigation Aid and is unique to Peachtree Accounting. It allows you to click on icons instead of choosing menu options.
It also helps you understand the task flow of information in certain areas of Peachtree Accounting. To turn it back on, select View Navigation Aid from the Options menu you will see a check mark beside the menu option when it is turned on. This is a folder at the bottom of the window, above the status bar. Each Navigation Aid contains pictures to help you remember activities that you perform in Peachtree Accounting.
Click the icon to go to the selected area. Notice that the Navigation Aid is divided into three sections: Maintain, Tasks, and Reports. These sections correspond to the menu structure in Peachtree Accounting. Maintain refers to records or lists that you would keep on file. Tasks refer to everyday activities that you perform.
Reports provide useful information about the selected accounting area. The toolbar at the top of most windows shows graphical representations of commands and functions accessible from the window. Folder tabs are common in most Peachtree Accounting windows also known as dialog boxes. Each tab stores and organizes additional information on the current record. Here, for example, the information you can track for an employee is subdivided into five sections including General, Custom Fields, Pay Information, Employee Fields, and Employer Fields.
Boxes with a magnifying glass icon beside them indicate a lookup box for selecting or adding a record. You can click the magnifying glass icon, right-click your mouse in the field, or type?
These buttons can be selected by clicking with the mouse or pressing the z. These are rectangles or fields where information can be entered. Fields that have lists of available information choices.
These fields have an arrow beside the text box. Click the arrow button and make a selection. You can also use the t key to highlight the arrow button and press e to open the list. Boxes in which you enter dates have a small calendar icon beside them.
You can click this icon, or right-click the mouse while in this field, to display a pop-up calendar. You can search for and select the date you want by double-clicking within the calendar. Options that are selected when an X or check mark appears in the box. To select a check box, click the box with your mouse or press z. These buttons indicate that more information is available. Selecting an arrow button generally opens a second window.
In this case, the Employee Beginning Balances window opens. Getting Help with Peachtree Accounting When you need information about a procedure or how to use a particular feature, the Peachtree Accounting Help system is one of the most efficient ways to learn.
You can access Peachtree Accounting Help in the following ways:. This button displays a Help topic pertaining to the particular window currently open. You can also press 1 to open a Help topic about the currently displayed window. This option opens the Peachtree Accounting Help file where you can explore the table of contents, scroll through an index, or search for a desired topic. The Find tab searches for every instance of the word or phrase you submit.
The Ask a Question tab searches for topics related to your inquiry. Your mouse pointer will change to a question mark symbol.
Click the field or object you want information about and a pop-up definition will appear. This gives you a basic Note overview on using the Windows Help engine. Using Peachtree Accounting Help The online Help is also a great reference for information in setting up a company. The Contents tab acts as a starting point, displaying categories of information available. The Contents tab is similar to a table of contents. The Reference book opens and displays all Reference topics available, including an Accounting Primer for introduction to basic accounting.
The Help for Your Business book opens. This opens a Help window displaying a list of sample charts of accounts. You can also open Help from within an open Peachtree Accounting window. Select the General tab, and then press 1. You also could have displayed this window by selecting the Help button from the toolbar. If you select one of these topics, step-by-step instructions will be provided.
Step-by-step instructions appear, explaining how to set up an employee record. This option can be turned off from the Options menu. On menus, you can press the underlined letter to select an option. These features can be turned on or off from the Options menu. If you would like to quit Peachtree Accounting or Windows follow the step below. Do not turn off your computer while a company is open in Peachtree Accounting.
If you exit Windows without quitting Peachtree first, a message Warning asks if you are sure you want to close the current company. Lesson II—Basic Procedures This lesson introduces you to the basic procedures for entering data, editing. Beginning the Lesson If you are continuing from Lesson I, skip this section and proceed with the lesson.
If you are just starting the Lesson, start Peachtree Accounting and open up the sample company Bellwether Garden Supply. If the Action Items window appears, close it for right now. Setting Up Tutorial Global Options You can set up preferences global options that customize how your Peachtree Accounting company data appears. These options affect each company displayed by the current computer. Other computers displaying Peachtree Accounting data may use an alternate set of options.
We will set up options that impact these tutorials. When entering data, we will manually enter decimals to two places. Make sure the Accounts Receivable and Payroll check boxes are clear not checked. Most of these options will be explained throughout the tutorial lessons. Setting them up now will allow your display to match what the tutorial is using. Backing up the Sample Company Data If you are the first person in your company to work with this tutorial, then you have the honor of backing up the sample company data.
This step is important because we are going to be entering information and posting transactions. Others in your office will need a clean copy of the sample data so they can enter the same information and encounter the same conditions.
The Back Up Company window appears. The system displays the progress of the backup until it is complete. Restoring the Sample Company Data If you are not the first person to use this tutorial, you must restore the sample company data to its original state. Open the company you want to restore. The system displays the progress of the restore procedure. You will receive a warning message that you are about to overwrite existing data. Select OK to continue.
Our sample company uses a variety of coding schemes for identifying employees. One method is to use the first letter of the first name along with the last name and a sequential two-digit number.
If you try to use a code already in use, a message will appear. Just pick a different code. Always open Bellwether Garden Supply before beginning or resuming any of the lessons in this tutorial.
Alternatively, you can right-click your mouse in the Employee ID field or type? All three methods display a lookup list of employees. The employee information appears in the fields. You can select other tabs such as custom fields to display additional information on the employee. If you selected a sales rep, you may have limited access to certain tab areas. For now, return to the General tab. Capital letters sort before lowercase letters.
Cursor Movement You can use e or t to move forward to the next field or text box in data entry windows. You can hold the a key down and press the underlined letter next to a field text box to jump to that field. For example, to jump to the Social Security field, hold the a key down and press C, the underlined letter.
Press e to move to the next row of fields City, ST Zip. None of the other information is required. We will look at the employee fields more closely in the Payroll lesson. Pressing 5 saves records in Peachtree Accounting windows.
You could alternatively select the Save button. You can click on the magnifying glass beside the Employee ID field, to display the employee list and see that your name has been added.
You are an official employee of Bellwether Garden Supply! Editing a Record One of our employees, Dorothy Beckstrom, just moved to a new address and has a new phone number. Instead of looking up a known record using the magnifying glass or typing in the ID, you can type in the first couple of letters and Peachtree will do the rest for you.
This option is previously set up in the Maintain Global Options window. This demonstrates Smart Data Entry. The Employee ID list appears, with Dorothy Beckstrom selected, because hers is the first name in the list starting with D. The cursor moves to the Employee Type option. Notice that the field text is highlighted. Peachtree deletes the old text for you and adds your new text as you type. You can edit any text field in Peachtree Accounting using this method.
Press e again. Type and press e. You could also press the a key and type 1 to highlight the Telephone 1 field. Any future payroll transactions will refer to her new address. If you do not have a printer currently set up, read along in the section, following as much as you can.
The Select a Report window appears. The Payroll program area is highlighted on the left-hand side. A list of payroll reports and forms are listed on the right-hand side of the window. The report we want is the first item on the list, Employee List.
First, we will display the report. Then, we will print it. The report appears onscreen. If you want to print the report, select the Print button. The Print window appears, notifying you which printer is set up as the current default. Select OK to print; otherwise select Cancel. You should return to the report displayed onscreen. Using Action Items Action Items offer you four tools to help manage your business: Notes or messages that are generated by everyday transactions. Notes to yourself about tasks that you need to perform.
Warnings you create about potential problems or situations that merit special attention. Helpful hints about using Peachtree Accounting. For our sample company, Bellwether Garden Supply, the Action Items window appears every time you open the company. We previously closed this window. In the ID field, type FR in capital letters and press e. You can also use the pop-up calendar to enter the date. Type the Note as Freeman to go over new contract.
Press e. Click the Close button to close the Create Event window. You will now see the event we just created in the Activities section of the Events tab. The event is scheduled for tomorrow. We elected to have the event appear a day ahead of time to remind us of the meeting. Most of the information in this window will be covered in the Accounts Receivable lesson. For now, we want to look at the action items that involve this customer.
The Customer Event Log displays several events including an invoice sent and notification that the invoice was due. You will also see the lunch meeting event.
Using action items in this manner is an excellent way to look at the customer contact activity over a period of time. There are five color schemes from which to choose. The color schemes range from traditional Windows colors to bright vibrant colors similar to the Navigation Aids. The Maintain Global Options window appears.
You must restart Peachtree Accounting, to display the new color scheme. Try several different color schemes to see which one you like best. When finished, continue with this tutorial. Tu This lesson prepares you for setting up your company. You will learn how to set up and maintain your chart of accounts, the basis for the General Ledger.
Next, you will learn how to enter a transaction that will post to the General Ledger. You will learn how to: Estimated Lesson Time: Beginning the Lesson If you are continuing from Lesson II, skip this section and proceed with the lesson. If you are just starting the lesson, do the following: Make sure Accounts Receivable and Payroll Entry check boxes are clear not checked.
You could have other global options selected as well. However, the above options are the only ones that directly affect this tutorial. Working with the Chart of Accounts Peachtree Accounting comes with over 75 sample charts of accounts already set up that you can choose from to customize or copy into your own chart of accounts.
You can create your own chart of accounts from scratch. However, we recommend you use one of the chart of accounts from the sample companies as a template—keeping the basic structure but editing and adding individual accounts to suit your needs. You can copy the sample chart of accounts when setting up your company during New Company Setup. After setting up the sample company, we noticed an error in our chart of accounts.
We want to first create an account for these funds. We can select any unused account number, but it is wise to stay within traditional account number ranges. For our sample company, all asset accounts are in the ten-thousand level to The cursor moves to the Description field.
The cursor moves to the Account Type field. Making a Prior Year Adjustment Beginning Balance Normally you would enter beginning balances after entering your chart of accounts. However, our sample company has already established the account beginning balances and entered transactions. We want to record our money market fund balance as of the end of the last fiscal year. We will enter a balance prior to this period.
Before you leave this window, the Trial Balance should equal zero in balance. If the Trial Balance is out of balance and you select OK not recommended , Peachtree will make the correcting entry for you.
Peachtree Accounting operates on a forced-balance trial balance. This means the sum of assets and expenses must equal the sum of liabilities, equity, and income.
First we will decrease the balance of the savings account. Then we will make up the difference by adding the balance of the new money market fund. Notice the Trial Balance is now out of balance instead of 0. The Trial Balance is now back in balance displays 0. The beginning balance is posted to the General Ledger and will display properly in our financial statements. You return to the Maintain Chart of Accounts window.
Sometimes the trial balance may be out of balance. However, if the reason cannot be determined, Peachtree Accounting will make a correcting entry to temporarily put you back into balance. When you select OK with the trial balance out of balance on the Prior Year Adjustments or Beginning Balances window, a message appears warning you that an equity account will be created or updated to contain the difference or out-of-balance amount.
You can select Cancel to return to the window and make corrections, or OK to accept the correcting entry. Budget information can be viewed in financial statements and certain General Ledger reports. Posting Transactions to the General Ledger Peachtree Accounting offers two methods for posting transactions. Transactions are written to the General Ledger as they are entered and saved. If your company uses real-time posting you will select the Post button to record a transaction.
Transactions are saved in a temporary holding area and later posted in a group. You can print registers and check the batch of transactions before they are posted to the General Ledger. If your company is using batch posting, you will use the Save button to record a transaction. Later, you post all the saved transactions at one time by selecting System, and then Post from the Tasks menu.
There are several advantages for using either posting method. You can change posting methods at any time by selecting Company Information from the Maintain menu. Our sample company, Bellwether Garden Supply, uses the real-time posting method. The General Ledger and General Journal The General Ledger contains all journal transactions posted to the chart of accounts and keeps track of account balances. Each program area contains journals that list the transactions for that specific area.
If you are operating in an accrual-based company, all journal transactions are posted collectively to the General Ledger. If you are operating in a cash-basis company, some journals will not be included, such as the download Journal and Sales Journal. These download and sales transactions are posted to the General Ledger in the Cash Disbursements and Cash Receipts Journals, respectively.
The General Journal contains transactions that establish and adjust account balances. It is used to transfer funds from one account to another or make correcting journal entries. If you make beginning balance entries or prior year adjustments in the Maintain Chart of Accounts window, Peachtree Accounting generates the entries for you and inserts them into the General Journal. Other examples include monthly accruals, asset depreciation, and end-of-year adjustments.
In the General Journal you distribute the debits and the credits. In other journals, Peachtree Accounting automatically distributes the entry for you. One is used for disbursements accounts payable and the other is used for payroll. The cursor moves to the Reference field. You could type anything here to identify the journal entry. The cursor moves to the first Account No. We could have entered the debit for the payroll account first. However, it makes no difference.
Notice that the Totals field in the lower right corner now displays The Out of Balance field totals To complete the entry and remain in balance, this total must equal zero debits equal credits.
Once you pressed e twice, the cursor moved to the Account No. The Payroll Checking Account appears in the account description area. Notice the Totals field now displays 5, This means the journal entry is in balance and can be posted. Accounting Periods Accounting periods are set up when you create your company during New Company Setup. Once you have defined your accounting periods, you cannot change the structure of the periods. You can only change the current accounting period, moving forwards or backwards within the structure already established.
Peachtree Accounting allows up to 26 open periods. You can work in the second year without closing the first year. If you do not see the status bar, turn on the option by selecting View Status Bar from the Options menu. Note Bellwether Garden Supply is set up with 12 accounting periods per fiscal year. The date to the left of the current accounting period is the system date. Changing Accounting Periods At the end of each accounting period you should change to the next accounting period.
Peachtree Accounting does not actually close accounting periods. You change accounting periods at will, moving back and forth through the fiscal year. When you post a transaction, Peachtree Accounting selects the correct period based on the transaction date. This brings up an interesting point. You cannot post a new transaction to a previous accounting period. This feature ensures that a new entry will not be inadvertently posted to a period for which financial statements have been reported.
However, you can post future transactions while remaining in the current accounting period. Entering future transactions is a powerful feature and can save you time. This is especially true if you are approaching the end of a current accounting period and are not quite ready to change. It also allows you to post recurring transactions. There are a couple of additional rules to consider when changing accounting periods. If you are using real-time posting, this is already done for you.
If you are using batch posting, then you must post all journals before moving forward. Our sample company uses real-time posting, so this rule does not affect us. Basically this means only one user can be working in the company when changing accounting periods.
We are ready to change accounting periods to move ahead. This drop-down list box displays the current accounting period. The Current Calendar year field refers to the current payroll year of the company.
Select Yes. Generally it is a good idea to print and file reports before you change accounting periods. This maintains an audit trail for your records. You can select which reports you want to print.
You should also print open invoices and checks. Select Cancel. You will return to the Change Accounting Period window. Peachtree Accounting checks for unposted entries and changes your accounting period. You can begin entering transactions for period 4 or later. The Change Accounting Period window appears. When changing to previous periods, Peachtree Accounting does not ask if you want to print reports.
This only occurs when you move forward. However we recommend you use a chart of accounts from one of the sample companies as a template—keeping the basic structure, but editing and adding individual accounts to suit your needs. If transactions are posted, you must enter prior-year adjustments. You can change posting methods at any time. It is also used to transfer funds from one account to another or make correcting entries. You change accounting periods as needed, moving back and forth through the fiscal year.
If you would like to quit Peachtree Accounting, follow these steps. This closes the current company and exits Peachtree Accounting. Tu In this lesson you will learn about entering vendors and using the accounts payable functions of Peachtree Accounting.
Make sure the Accounts Receivable and Payroll Entry check boxes are clear not checked. The rest of the global options are set up properly from the previous lesson, so you can now proceed with the lesson.
You need to make sure that the tutorial global options are set up properly. Accounts Payable Tasks Processing vendor transactions in Peachtree Accounting is, at most, a five- step process. The number of steps may vary depending on your needs. Tasks Procedure Maintain Vendors Set up a vendor.
Payments Apply a disbursement payment against the download invoice or record a cash download. You may use all five steps or, in some cases, only one step. For example, if you make a cash download, you can enter this directly in the Payments window without even creating a vendor.
Maintain Vendors First we are going to select the vendor from whom we are going to order items. Then we will change one item of information—the discount percentage offered for timely payment.
The cursor is in the Vendor ID field. The magnifying glass indicates a lookup box, which is a field with a lookup list attached. Alternatively, you could select the magnifying glass button to display the vendor lookup list. The vendor we will use for this tutorial is Arbor Wholesale Suppliers.
However, we have been given this incentive because we are a good customer to them. Notice that most of the information in the window changes, but some remains the same—the Vendor ID, Name, and the Inactive check box. An arrow button indicates additional information can be accessed related to the subject. Clearing the Use Standard Terms check box allows you to enter unique conditions. There should be no mark in the box. When the Use Standard Terms check box is selected, the other term options are dimmed.
Type 15 and press e. Next, select the Save button to update the vendor record. Entering a download Order download orders are used to place an order for items you intend to download from a vendor.
When you post a download order, you do not actually update accounting information. The Vendor ID field is also a lookup box. If the Smart Data option is turned off, select the magnifying glass icon or type?
The cursor moves to the PO field. Peachtree Accounting supplies PO numbers for download orders it prints. Dates The Date field defaults to the System Date. This date will print on the download order as the date you want to issue the download order.
It does not represent the download invoice date or the date you may have entered the download order in the computer. Peachtree Accounting permits flexibility when entering dates. For example, to enter January 1, , type and Peachtree Accounting will format the date correctly. You can even enter the day portion of the date and the program formats the date based on the current accounting period.
For example, if you are operating in December , type 4 with the date field selected and press e, Peachtree Accounting would format the date as Dec 4, This can save time during data entry. The cursor moves to the Good Thru date field. Accept the 30 day expiration and press e. The cursor moves to the Ship To address field. The shipping information and terms are correct. We are going to skip these items. Entering Transaction Lines There are two ways to enter transaction lines for download orders and invoices: You can set up inventory items through Maintain Inventory Items, making it easy to track items or services downloadd or sold.
Setting up these items also allows Peachtree Accounting to complete distribution entries for you, saving you time. If there is no line item set up for a particular item you intend to download or sell , or if you do not intend to use the Inventory module, you can type a description and distribute it directly to the proper General Ledger account. We are going to use the first method to download some inventory items. You might use the second method when downloading items like office supplies or recording a telephone bill.
Our stock levels are low for a couple of items—Cilantro Seeds and Pansy Seeds. The cursor moves to the Item field. You can set up a list like this for your own products or services in the Maintain menu.
Notice this changes the order of the list from being listed by ID to being listed by item name. This feature is available for all lookup lists. The item description appears in the Description field. Cilantro Seeds.
Peachtree Accounting calculates the quantity multiplied by the unit price and enters it in the field. The Job field is also a lookup box.
It contains a list of jobs and their descriptions. For this part of the tutorial, we are going to skip entering a job. The cursor moves to a new transaction line. Next we will order Pansy Seeds. Saving and Posting Always save your entries before exiting a task window in this case the download Order window. The Post button is displayed because the sample company uses real-time posting. When you select the Post button, Peachtree Accounting saves and posts the download order. You could also select the Print button here to both print the download order and post it to the download Order Journal.
When download orders and sales orders are posted, the account information is not recorded to the General Ledger—just recorded to the download Order Note Journal or Sales Order Journal, respectively. Once you receive or ship inventory, the orders are changed to invoices. When you enter a download invoice or sales invoice, Peachtree posts the account information to the General Ledger in an accrual-based company.
There are three ways to print download orders. This prints the current download order displayed. If the reference number field PO number is left blank, Peachtree Accounting assigns a reference number and prints the form. Select a form from the download Orders folder, and then click the Print button: This prints a batch of open download orders those without PO numbers assigned at one time based on a date you enter.
This prints a batch of open download orders those without PO numbers assigned at one time. From the Reports menu, select the module for example, Accounts Receivable. Then double-click the form folder, select the form you want to print, and filter the last date for which to print the form. All transactions without reference numbers for example, invoice or order numbers assigned will print.
If you downloadd preprinted forms, you might select the PO PrePrinted form. The PO Plain filter window appears. Confirm the print setup and select OK to print download orders. After the download order is printed, a message box displays asking if it printed properly.
In real life, this is a very important question. We have just received a shipment from Arbor Wholesale Suppliers for the download order we previously entered. Notice the similarities with the download Order window.
The only major difference is the presence of the Apply to download Order tab and Apply to downloads tab. When you select a vendor who has open download orders, this tab appears, allowing you to select which download order to receive items against. If you select a vendor with no open download orders, this tab appears.
You can enter a vendor invoice that did not originate on a download order. In addition, even if you have selected a download order and received items against it on the Apply to download Order tab, you can also select the Apply to downloads tab to enter downloads not included in any open download orders.
The cursor moves to the Invoice field. They shipped us 12 packs of Cilantro Seeds and 12 packs of Pansy Seeds. The date should format as Mar 29, The cursor moves to the Waiting on Bill from Vendor field. Since our shipment included the invoice, we can skip this field. The cursor should now be on the Apply to download Order tab. This displays all the current open POs for the particular vendor. You cannot apply more than one open download order to an invoice.
The cursor should be on the first transaction line in the Received field. We ordered 12 packs of Cilantro Seeds and only received 6. The remaining 6 packs have not been received yet. The Amount field should calculate and display 2. Press e to move to the second transaction line which displays the Pansy Seeds. Discount Information We began this lesson by changing the payment terms for Arbor Wholesale Suppliers. This information is just below the Ship To address.
The Date Due is the date by which the invoice should be paid. The Discount Amount is the invoice total multiplied by the discount percentage you entered in the Maintain Vendor record. The discount date is the date by which we must pay to receive the download discount.
The Displayed Terms are the percentage of discount, the time in days for receiving the discount, and the number of days before the invoice is due.
You can edit the account number for each line item you entered. The other fields cannot be edited in this window. The Accounting Behind the Screens window displays journal entries that will be posted if this transaction is saved; it provides a preview of what will happen when the transaction is recorded. The default account that is selected for each line item is — Inventory.
This default comes from the inventory item list and or default information set up in Maintain Inventory Items. The accounts payable account also appears. You have the opportunity to change these account IDs, if necessary, but usually you would accept the default.
The Accounting Behind the Screens window displays debit and credit information for each line item. Since Peachtree is a double-entry accounting system, all the accounting distributions are automatically done for you, behind the scenes.
Whenever you need to see this accounting information, select the Journal button. The offsetting credit is made to the Accounts Payable account in accrual accounting. The download is recorded and the proper accounts are distributed to the General Ledger. Inventory is also updated. You cannot print download invoices, only download orders. Payments Typically, you would enter download invoices throughout the month so that you would have a record of what you owed.
Then, at some later date, you pay the invoices. We are going to enter a payment for this download invoice. You have the option of writing a disbursement check to a vendor or a customer.
Usually payments are made to vendors. However, you might write a check to a customer when issuing a refund. The cursor moves to the Pay to the Order of field. Notice the Apply to Invoices tab now displays the download invoice we just entered. Other outstanding invoices for this vendor are also listed here.
With the cursor in the Pay to the Order of field, you could change the vendor address by selecting the arrow button. If you wanted to enter a cash download for example, food for an office lunch without creating a vendor ID or download invoice, you could skip the Vendor ID field and enter the name of the one-time payee in the Pay to the Order of field.
The cursor moves to the Check Number field. We are leaving the check number blank. When we print the check, Peachtree Accounting will then assign the next check number in sequence.
In the Date field, type 29 and press e. The date formats to Mar 29, The cursor moves to the Memo field. Peachtree Accounting automatically fills this field with the vendor account number set up in the Maintain Vendors window. You could enter other information in this field.
The cursor moves to the Cash Account field. The Cash Account field should display Regular Checking. If question marks display, select the Recalculate Recalc button to temporarily display the cash balance. This displayed balance will not change until you press the Recalculate button again. Peachtree Accounting offers you the option of automatically displaying the current Cash Account balance on the Payments, Receipts, and Payroll Entry Note windows.
From the Options menu, select Global and turn on the Automatic Recalculate cash balance automatically in Receipts and Payments option. Each time you enter Receipts, Payments, or Payroll Entry windows and enter a transaction, the displayed cash account balance is updated. At this point, you can select invoices to pay. Optionally, you can make a payment against an expense account.
When you select the Apply to Expenses tab, the outstanding invoices for this vendor will temporarily disappear, and the columns in the distribution area will be different similar to the download invoice. We are going to apply this disbursement against the invoice we just entered. You could enter a brief description to appear on the check stub if necessary.
So all you have to do now is select the Pay check box in the far right column. The amount box keeps a running total of the vendor invoice s you pay. You can only adjust the amount it shows indirectly, by entering payments in the Amount Paid field. In addition to download Invoice , you may see other outstanding invoices due for this vendor. You can elect to pay them as well or make a partial payment on a single invoice.
You may also note that these invoices may or may not qualify for download discounts based on the check date entered. The Accounting Behind the Screens window appears. This window shows all transaction distributions. You could also select the Print button here to both print the check and post the disbursement. However, we will print the check in the next section. Disbursement Transactions When you post this payment in an accrual-based company , the Accounts Payable account is debited for the full invoice amount, which balances the credit when we entered the invoice.
The cash account is decreased by the amount of the check, and the Discounts Taken account is decreased by any discount that might apply. You establish the account for discounts taken from the Maintain menu by selecting Default Information, and then Vendors. Printing Checks You can print a batch of checks, or print checks individually, as you enter them using the Print button on the Payments window.
Because Peachtree Accounting prints a form for checks, you cannot choose to display the check. You can, however, print a check register prior to printing a batch of checks to ensure accuracy. If you downloadd preprinted forms, you might select the AP Preprint 1 Stub form. The print forms AP Preprint 1 Stub window appears. From here you can filter the checks that print.
This is the next check number in sequence, tracked and assigned by Peachtree Accounting. Normally, you would check your blank preprinted form to verify the next available check number and enter it here if it is different.
For right now, accept the default since we are only printing a practice check on plain paper. In the To column type the same code. Confirm the print setup and select OK to print checks.
After the disbursement check is printed, a message box displays asking if it printed properly. When you answer Yes, Peachtree Accounting updates the check number and flags the check as printed, so it will not print again.
Peachtree provides sample companies from which you can copy the chart of accounts. This is a useful shortcut to set your company. Later, you can modify the chart of accounts to meet the specific needs of your business. Start Create a New Company and make sure the Use a sample business type that closely matches your company option is selected. Select the chart of accounts that matches your type from the list. To the right, you can see the chart of accounts that will be created if you select a particular business type.
To view more information about an industry, select the View details about a business type link. To continue setup of your company, select the Next button. Create a New Company - Posting Method The posting method determines how Peachtree processes transactions to journals and the general ledger.
Choose the posting method you want to use when processing transactions: Real-Time Posting: Transactions are posted to the journals and the general ledger as they are entered and saved. This method can save you time and is best for most business and network environments. Most companies use this method. Batch Posting: Transactions are saved by the program and then posted in a group. When you use batch posting, you can print registers and check the batch of transactions before posting them to the journals.
You can switch posting methods at any time. To continue setting up your company, select the Next button. Choose the accounting method to run your business: Accrual Accounting: Income is recorded as you invoice customers, and expenses are recorded when you receive bills from vendors, regardless of when cash is actually exchanged.
This presents a truer picture of income and expenses. Cash-Basis Accounting: Income is recorded when cash checks, money orders, or currency is received, and expenses are recorded when paid. However, unpaid credit sales and downloads do not show on ledgers, which can present a misleading picture of income and expenses.
This is because inventory uses the accrual method, while the general ledger is cash basis. This means that the inventory records will be updated to reflect unpaid downloads and sales, while the general ledger will not be updated until actual money changes hands. Create a New Company - Accounting Period Structure Accounting periods are units of time that divide your fiscal year for reporting purposes. In Peachtree you can set up to 13 accounting periods per fiscal year. Choose the accounting period structure you want your company to follow: Each accounting period's starting and ending dates match those of the 12 calendar months.
You can Page 7 of 29 6 choose to start your fiscal year in January or any other month of the year. Most companies follow this fiscal year structure.
Accounting periods that do not match the calendar months: Choose this option if you want to set up a custom fiscal year structure. For example, you may want four accounting periods per year or possibly 13 four-week accounting periods per year. Peachtree displays the next Create a New Company window corresponding to your setup option.
Create a New Company - Fiscal Year Starting dates need to be established for setting up your company and entering data.
Once you establish a starting date, Peachtree will automatically set up monthly accounting periods for your first two fiscal years. Start Create a New Company, and make sure the 12 monthly accounting periods setup option is selected. Enter the first month of your first fiscal year, or select it from the drop-down list.
Then, enter the year. Usually, a company's fiscal year starts in January and ends in December. However, some companies start their fiscal year in July and end in June. If you are creating a consolidated company Peachtree Premium Accounting and above , this field will be disabled gray and will display the first month and year of the consolidated company's first fiscal year, based on information taken from the subsidiary companies. Peachtree displays the Create a New Company - Finish window.
Page 8 of 29 7 Create a New Company - Finish Use this procedure to complete the new company setup process. Start Create a New Company, and read the information in the window and follow the prompts. Read the information on the window. Select the Finish button to save your company settings.
Peachtree displays the Maintain Chart of Accounts window. Enter an account ID and description for the account. The account ID determines how the account is identified and sorted in the chart of accounts list.
Most charts of accounts are set up with specific account types grouped together. Select an account type from the drop-down list. Select Save. Repeat step 1 to 3 till all chart of accounts are created 5. Select Close. Entering of Opening Balances Method One: From the Tasks menu, select General Journal Entry. Peachtree displays the General Journal Entry window.
Enter or select the date of the transactions you want to enter. Page 9 of 29 8 Peachtree defaults this date to the Peachtree system date. If you are in an accounting period that is different from the system date, then Peachtree displays the first day of that period. Enter a reference for the transaction up to 20 characters. If you enter a number reference, Peachtree will increase future General Journal entries by one while this window is open.
For each line enter or select an account ID. To display a list of existing accounts, type? For each line enter an amount in either the Debit or Credit columns. For each line enter a description for the transaction. The description will appear in General Ledger and various reports. Once the Out of Balance field is zero 0. Method Two: Click on New Account 2.
Click on Account Beginning Balances 3. Enter balances for accounts as listed in Computer Practice 5. Be sure that debits and credits balance Set Up a Customer Use this procedure to set up a new customer record. Enter a new customer ID, and complete the necessary information. Click New Button from the window that appear at the bottom side of the window 6. Create two chart of accounts for the customer. Account Type should be Income and Account Receivable 7.
Close the chart of account window 8. Clock GL sales Account button again 9. Select Chart of Account for the Customer just created.
It is of the account type Income. When you're finished filling in the window, select the Save button. On the General tab, select the Beginning Balances button. Peachtree displays the Customer Beginning Balances window. These transactions can be adjusted at any time unless a receipt has been applied to the invoice. If a receipt has been made, the invoice will have a gray background. To edit it, you must delete the receipt first. To enter beginning balances for additional customers, select the Customer Balances tab.
Double-click the customer name, or highlight the name and select the Invoices for tab. Set Up a Vendor Use this procedure to set up a new customer record. From the Maintain menu, select vendor. Enter a new vendor ID, and complete the necessary information. Account Type should be expenses and Account payable Close the chart of account window Click GL expense Account button again Select Chart of Account for the vendor just created. It is of the account type Expense.
To enter beginning balances for additional vendors, select the Vendor Balances tab. Set Up an Inventory Item Use this procedure to set up a new inventory item record. From the Maintain menu, select Inventory Items. Enter a new item ID, and complete the necessary item information. Peachtree displays the Inventory Beginning Balances window.
From the item list, enter or select an item ID that you want to record a beginning balance. Page 12 of 29 11 4. For each item, enter two of the three fields: Peachtree will calculate the third or remaining field. When finished entering beginning balances for all your inventory items, select OK. Create a new company, using the instructions above, with the following information: Name of Company: Your Name Consulting b.
Moorpark, San Jose, CA c. Phone Number d. Fax Number e. Federal ID — f. State ID g. Choose a Sample Company, Type is Service h. Method of Accounting: Accrual i. Real Time j. First Period Entering information: January l. Add the expense account: Licenses and Permits m. Add Account Beginning Balances for January Accounts Receivable: Accounts Payable: Retained Earnings: ADD the following customers: Quality Construction, Stevey Reynolds Blvd.
Fremont, CA , , bob qualityconstruction. TR o. ADD the following vendors: Page 13 of 29 12 i. AA ii. First National Bank, P. Box , Memphis, TN , , www. FN p. ADD the following inventory items i. Print the following: See Appendix A for Report Creation i.
Balance Sheet for January 31, ii. Customer List iii. Vendor List iv. Enter or select the customer ID.
To display a list of existing customers, type? When the customer is selected, Peachtree supplies the customer default information, including billing and shipping addresses, sales account, shipping method, payment terms, and sales tax code.
Page 14 of 29 13 2. If this customer has open sales orders, the Apply to Sales Order tab appears in front. To enter new items on the invoice, select the Apply to Sales tab. Leave the Invoice field blank if you want Peachtree to print an invoice. Peachtree will increase the invoice number by one when it is printed. Enter the date of the transaction if it is different from the displayed date. If you have entered a default shipping address in the customer's record, the first shipping address will appear on the invoice.
You can select another shipping address from the choices available in the Ship To drop-down list, or manually enter another address in the Ship To fields. If you have entered a default P. If not, you can enter the customer's download order number now or change the default to any other piece of information that will identify this invoice to the customer. If you have entered a default shipping method in the customer's record, it will appear. You can select the Ship Via button if you want to select a different shipping method.
You can also enter a ship date. Peachtree uses the default terms you have entered for the customer, but you may want to select the Terms button to change the default discount dates or amounts for this invoice. When a receipt that qualifies for an early-payment discount is applied against the invoice, Peachtree will calculate the discount.
If you entered a default Sales Rep in the customer's record, it will appear. Enter the information for each item included on the invoice on a separate line, including the item's quantity, item ID, description, unit price the number of decimal places is selected in Global Options , sales tax status, and job information. Select the line item with the serialized inventory item, then select the Serial No button to enter or select serial numbers.
The Serial Number Selection window appears. To change the account ID, type? Continue entering line items until you have entered them all. If you have received a partial or full payment for this invoice at the time of the sale, select the Amount Paid at Sale button. Peachtree displays the Receive Payment window, where you can enter receipt information. The Net Amount Due displays what the customer currently owes for the sale. At the bottom left corner of the window, the selected customer's balance, credit limit, and credit status is displayed.
You can click the arrow button to the right of the customer balance to display the current Customer Ledgers report for this customer. Select the Print button if you want to print and save the invoice. Otherwise, click the Save button.
Apply a Payment to an Invoice When a customer pays an invoice, enter the amount in the Receipts window. To enter customer payment on an invoice 1. From the Tasks menu, select Receipts. Peachtree displays the Receipts window. Page 16 of 29 15 2. Enter a deposit ticket ID that can easily represent the type and source of payment. This will make account reconciliation easier to manage. If there are unpaid invoices for this customer, Peachtree lists them on the Apply to Invoices tab.
If there are no unpaid invoices, Peachtree displays the Apply to Revenue tab.