peachtree project

Peach tree

Accounting

Project

Submitted to:

                       Prof.Bilal Sarwar

Submitted by:

                     Samar Khalid

                     L3f09bcom2567

University of central Punjab

Table of contents

Chapter no#01

Set up of a company

Chapter no#02

How to maintian an existing company

Chapter no#03

How to maintain a chart of account

Chapter no#04

·      Maintain customer/ prospects

·      Customer default

·      Purchase order

·      Payments

·      Credit memo

Chapter no #05

·      Vendor maintain

·      Vendor default

·      Sales order

·      Receipts

Chapter no #06

Inventory

Chapter no#07

Maintain global

Chapter no #01

“SET UP OF A COMPANY”

Set up of a company:

After the start of the program the following screen will appear. To establish a new company click

“Setup a new company” option and follow the next instructions.

From the screen click on “set up a new company” a wizard will start from the introductory window

Company’s name and address:

Now by clicking next you have type the company information such as name, address, telephone no. business type etc

Select the following setup option:

Chart of account:

Again by clicking next you can chose among several methods to setup the charts of accounts. Here you can chose charts of accounts already developed by the software of many sample companies, or you can copy charts of accounts from existing Peachtree Company or accounting software compatible with Peachtree or you can build your own charts of accounts.

1: If you chose the first option “Set up a new Retail, Service, Construction, Manufacturing, or Distribution company, using a simplified charts of accounts” and then click next button you will have the following window

1:1Now select the charts of accounts that match your industry type from the list. If you want to display the charts of accounts you selected, select the View Charts of Accounts button.

2: Second option is “Set up a new company using extensive charts of accounts from one of many sample companies” Select the charts of accounts the matches your Business type from the list. There are many options available.

2:1Now select the charts of accounts that match your industry type from the list. If you want to display the charts of accounts you selected, select the View Charts of Accounts button.

3: Third option is “Copy setting from an existing Peachtree company” Select this option if you want to copy charts of accounts from another Peachtree company that is store in your computer. Before selecting you may also check the established charts of accounts by clicking the “View Charts of Accounts” button.

3:1Before selecting you may also check the established charts of accounts by clicking the “View Charts of Accounts” button.

4: Forth option is “Convert a company from another accounting program” you may select this option if you want to import company data from Peachtree Complete Accounting for DOS or Peachtree Classic(PCA),Quicken, or some other program

5: The last option is Charts of Accounts “Build your own company” one may select this option if you want to create a company from scratch. This option is only recommended for experienced user who is comfortable setting up accounting information.

Accounting Method:

The next step will be to chose “Accounting Method” There are two accounting method Cash and accrual .Accrual method is usually followed, where we accrue expense and income weather paid or received or not.

First we select accrual and click next button

Posting Method:

Next phase will be to close the “Posting Method” By selecting the Real Time posting method the transaction are posted to the General Ledger as they are enter and saved. While in Batch, transactions are saved by the program and then posted in a group. This allow you to print and reconcile the transaction and then to save

We click on real time and click on next button

On next window we see accounting periods whish again shows two options 12month accounting period and other one is accounting period that do not match the calendar month then click on next button and move forward

First we click on 12 month accounting period click on next button and move further

We see monthly accounting period which shows three options which we have to fulfill on by one according to our company

1: when do you want your first fiscal year start? First we select month and then year

2: what is the first month you will be entering data? First enter month and then year

3: what is the first year you will be entering payroll? Then only select only year

And click on next button

On next window we see a default here we click simply next button and move further

We see on next window finish button is written we click on it and close the Peachtree setup

Then we go back to see all options like cash base and batch etc

Chapter no #02

How to open an existing company

Open an existing company:         

We select the option no. one “open an existing company” when we select this option we automatically move on next window.

From this screen you will click on “Browse”. When you will browse you will move on next screen.

From this screen you will see on left hand side different options under heading Drives: you have to select drive in which your company is available weather in c drive, z drive or in e drive. When you will select a drive you will move on next screen.

From this screen you will see on left hand side under heading Direction your selected drive your company name which were already save in your selected drive if your company directed available in your drive it will show on right hand side and if available in a specific folder you have to select that folder.

From this screen you will see on right hand side your company name you have to select this option and then click on “OK”

Chapter no#03

How to make a chart of accounts

General ledger:

Now you have setup your company in Peachtree, it is recommended to establish Chart of accounts, General Ledger Defaults and Beginning Balance if any.

To establish the charts of accounts click the maintains menu and select “Charts of Accounts….”

The following window will displayed

Here you have to type Account ID and description and the most Important Account Type.

Enter an account ID and description for the account. The account ID determine how the account is identified and sorted in the charts of accounts list and General Ledger account is displayed as typed in description. Most charts of accounts are set up with specific accounts types grouped together.

Account Types

Account types define how the account will be grouped in reports and financial statements. They also control what happens during fiscal year-end

General Ledger accounts are assigned types on the General tab of maintains Charts of account window. Select an account type from the drop-down list and select Save to save the account. The account type should be selected carefully. If you are entering a Revenue account then its type will be Income so on. A simplified charts of account with Account ID, Descriptions and Account Type is given at the end of chapter

You can enter the Beginning Balance on the General tab. Select the Beginning Balances button. Peachtree displays the select period window.

Select the period in which you want to enter beginning balances. You can select from pervious, current, or future period

Click or tab to any of the white cells in the grid to add an amount. (The grey cells are for viewing purpose only.)

Enter all the beginning balances for the accounts. Scroll the list box to make sure the account amounts are correct.

If you are out of balances in the Beginning Balances for General Ledger Accounts window, Peachtree displays a warning message indicating that an equity account will be created (or updated)to contain the difference or out-of –balance amount.

This account will be named Beginning Balance Equity, and its type’s equity-Doesn’t close. This account does not appear in the beginning balance window, but it will appear in the list of account and on financial statements and general ledger reports.

Chapter no#04

Maintain customer/prospects

Maintain customer/prospects

Use the maintain customer /prospects window to enter, change and store information about companies and people to whom you sell goods and services

·        Name and address information, including separate billing and shipping information, e-mail address, and web site address.

·        The date of the last invoice, statement and payment received

·        Sale history, including year to date and period to date sale and monthly totals

·        The usual sales account  used for this customers

·        The preferred method of payment for this customer

·        Terms of payment and sales tax code

·        The customers beginning balance

·        From maintain menu select customers/prospects

·        Peachtree display the maintain customer/prospective window

·        Enter a new customer ID, and complete the necessary customer information

·        When you are finished filling in the window, select the save button.

Tabs names:

·        Customer/prospective

·        General tab

·        Sales defaults tab

·        Payment defaults tab

·        Custom field tab

·        History tab

 

Customer /prospect header field:

Customer header field are located above the folder tabs of the maintain

Customer/prospects window. This is where you enter lookup information about the customer such as the customer ID, name, and status.

General (maintain customer/prospects)

To enter basic information about the customer such as information ,address, phone and fax numbers ,sales tax code ,and beginning balances, select the general tab  in the maintain customer /prospects window 

Enter customer beginning balance

You save a customer; you can enter beginning balance for the customer. When you are entering your customer beginning balance, do not enter an invoice that you have already entered in the sales/invoicing window, or the amount in the customer ledger

Sales defaults (maintain customers/sales Reps):

To set up unique sales transaction defaults for each customer record, select the sales default tab in the maintain customer/prospectus window. You can change this information at the transaction level, if necessary.

·       Sales Rep: you can enter the sales representatitve that has contact with the customer. The sales representative must have already been entered in the maintain employee/ sales reps window

·       G /L Sales account: Enter a general ledger account for the default sales account for this customer. This normally an income account. When selling inventory items, Peachtree overrides this account with the genersl ledger default accounts set up in the maintain inventory items.

·       In this tab various options are available which is which according to the requirements

·       Open P.O#

·       Ship via

·       Resale#

·       Pricing level

                                                                                                                                                      

Payment defaults (maintain customer/prospects)

To set up customized receipt settingd for each customer record, select the payment defaults tab in the mainatin customer/proepects window. You can change this information at the transaction level,if necessary.

·       Card holder Name

·       Address

·       Crdit card number

·       Expiration date

·       Receipt settings

Customer field (maintain customer/sales reps)

To enter custom field information for the selected customer record, select the Customer fields tab in the maintain customer / prospects window.

Custom field names are set up in customer dedaults.

1: second contact

2: refrance

3: mailing list?

4: multiples sites?

5:

History field (maintain customer/prospects)

To display the selected customers current history, selected the history tab in the mainatin customer prospects window. When enetring a new customer you can enter information on this tab: once you can svae the customer record this tab is for display purpose only

·       Customer since

·       Last invoice Date

·       Last Invoice Amt

·       Last Payment Date

·       Last payment Amt

·       Last Statement Date

Default information

Customer

Customer Defaults

Peachtree lets you set up default information for customer .Use this feature like tempalte or model upon which to build all your customer records. You enetr the most common information. Then, when you set up new customers and enter transaction, the default information is automatically included. In most cases you won, t have to enter anything .A name and address is all that’s required: then you are ready to invoice

To set up or review customer defaults

From the maintain menu select default information and choose customer

Tabs in customer default window

·        Payment terms

·        Account aging

·        Custom fields

·        Finance charges

·        Pay methods

1: Payment Terms (Customer Defaults)

Standard Terms

·        C.O.D

·        Net Due in

·        Discount

·        Discount

·        Credit Limit

G /L Accounts

·        G /L Sles Account

·        Discount G/L Account

2: Account Aging (Customer Defaults)

·        Age Invoice By

·        Aging Categories

3: Custom Fields (Customer Defaults)

Custom fields let you use your imagination. What do I really need to know about my customers? Select the Enabled check box to enter or change the field label. If you decide not to use a field, clear the Enabled check box.

4: Finance Charge (Customer Defaults)

·        Charge Fianace Charge

In order to apply the finance charges, you have to check the check the box or you can set according to your own choice by applying it on the invoice according to your defined criteria.

5: Pay Method (Customer Defaults)

This field header is used to set up payment methods for thecustomers; you can set up to 10 payment methods to facilitate the customer.

Sale order

Sales orders let you enter items for a customer, then invoice and ship the itms as they become avaiblee in your inventory, tracking the backorders in the system. You can veiw inventory reports that show the number of items backorder for your customers to help you plan ypur purchases

·       To open Peachtree’s Sales Order window, select Quotes/ Sales Order from the Task menu. Then choose Sales Orders.

Enter a Sales Order

Sales order let you enter items for a customer. Later you can invoice and ship the items as they becom avaible in your inventory, tracking the backorders in the system

1: From the Task mene select Quotes/Sales Orders: then select Sales Oreder from the sub mene

2: Enter or select the customer ID

3: Enter a sales order number if you want to chage the one peachtree automatically terms and sales tax code

4: Enter the date of the sales order if it different from the dispalyed date

5: Enter the date by which the oreder should be shipped.

6:  Enter the customer’s purchase order number now or cahnge the default to anyother piece of information that will identify this sales order to the customer

7: if you entered a default sales representative in the customer record it will appear otherwisw selected the code of the sales representative if applicable

8: enter the information for each itm includede on the sales order on a seprate line, including the item’s quantity, item id , description , unit price

Note: When you enter a quantity for a sales order, Peachtree checks available inventory to fill the sales order. If quantity on sales order exceeds the quantity on hand, a warning is issued (only if the warn if inventory item is out of stock box on miantain globle options window is checked). This does nit prevent you from selling the item; it just warns you that there is not enough of the item to complete the sales order.

9: the default G/L sales account that appears for each line item is based on the customer sales account default or the item id selected. To cahnge the account id type in this field or selected the lookup button. To add a new account type or double click the field which displays the mainatain charts of account window

10: select the print button if you want to print and save the order.Otherwise click the save button

Credit Memos (Sales Returns)

Credit Memo is used to record the returns from the customers whether on the direct sales or on the existing invoices whose payments are not received.

• Let see how to record “Returns from Customers” in Peachtree Accounting Software:
• Go to task menu bar and click on Credit Memo, credit memo window will open.
• Enter the Customer ID in the “Customer ID” field who have Returned goods.
• Enter the date of returning goods in the “Date” field.
• Enter the Reference no. for the transaction in the “Credit no.” field; it must be a distinct number to avoid any errors.
• The “Terms” field will be automatically filled with the payment terms of the Customer whose ID is enter, these are the terms that were selected when the Customer was created.
• Enter the Customer Purchase Order No. in the “Customer PO.” field against which the sales was made.

Now, if there are any invoices pending on that Customer then “Apply to Invoice No.” tab will be activated, otherwise user can only enter returns in the “Apply to Sales” tab.

·         Select the “Invoice no” from the drop down list on the Apply to Invoices tab to whom you want to charge the returns.

·         The Item field, Quantity field, Unit Price field and Description field will be automatically filled with the details of Invoice no. selected.

·         Enter the no. of items that are returned in the “Returned” field.

·         The “Amount” field will be calculated by multiplying Returned field with the Unit Price field.

·         Click on “Save” button to save the transaction.

Receipts

This allow you to enter all checks, cah, and credit card slips you receive and deposit them in your checking account

There are two ways you can account for receipts in Peachtree

·       If you sent an invoice to a customer you apply the recepit to the invoice. Invoices entered in the sales/ invoicing windoe appears as distribution lines when you enter the customer id. You can check the pay column beside each invoice being paid in full by this receipt. To do select receipts from task menu

·       If you made a direct sale that didn’t reqire an in voice you use receipts and enter it on the apply to revenue tab. This requires you to speciify a chec number and sales account.

You can enter as many as 500 lines per receipts. If you set up the distribution list box dor two lines in the globle options menu description of the items job and account appear in the second line

Maintain Inventory

Before you are able to record transactions relating to inventory, you first need to set up your inventory items in Peachtree. This topic shows you how to add an inventory item into Peachtree, and how to modify or delete an item of inventory should the need arise.

Creating an item inside Peachtree is a very simple process:

This displays the Maintain Inventory Items window where you can enter the details of the inventory item into Peachtree. The following screenshot show step-by-step instructions on how to enter an inventory item into the Maintain Inventory Items window in Peachtree.

Description: Enter a short description of the item of inventory.

Item Class:

         Select the class of the item from the drop down list provided. For items of inventory to be resold you should select 'Stock item.

General Tab:

         Enter the relevant information about that item. Note that for stock items you do not need to enter information into the Last Unit Cost field. Peachtree will automatically update this field when you enter the beginning balances of inventory items into Peachtree. Notice that there are three general ledger account fields on the MAINTAIN INVENTORY ITEMS window: GL SALES ACCT, GL INVENTORY ACCT, and GL COST OF SALES ACCT. For a STOCK ITEM, none of these fields can be left blank.

Other tabs:

         Enter the required information in the other tabs. Note that if the Item Class selected is Stock item, you are unable to enter any information into the Bill of Materials tab or the Item Attributes tab. This is because the Bill of Materials tab is used only if the Item Class selected is Assembly, while the Item Attributes tab is only used if the Item Class selected is Master Stock item.

Once you have entered the information in the Maintain Inventory Items window, remember to review your entries and save the item of inventory by clicking the Save icon.

Enter the beginning balances of inventory items

After adding the inventory item into Peachtree you will also need to enter the beginning balance of each item of inventory. You can either enter the beginning balance of each item as you create the item using the Maintain Inventory Items window. However, if you are creating several items of inventory at once, you can enter the beginning balances of these items altogether at the same time.

To enter the beginning balance of each inventory item, click the Beginning Balances arrow down the bottom right hand corner of the Maintain Inventory Items window.

This will open the Inventory Beginning Balances window. The following screenshot and description show step-by-step instructions on how to enter the beginning balance of an inventory item into the Inventory Beginning Balances window in Peachtree.

List of Inventory Items: Select the item of inventory from the list by clicking on it.

Item ID and Description: Note that the Item ID and the description of the item selected appear at the top of this screen, Confirm that you have selected the correct item.

Quantity: Enter the number of units of that inventory item on hand in the Quantity field.

Unit Cost: Enter the purchase price (unit cost) of one unit of that item of inventory.

Total Cost: Notice that Peachtree automatically calculates the total cost of that many items of that type of inventory.

Once you have entered the information in the Inventory Beginning Balances window, remember to review your entries and click the OK icon to save the information and update the inventory totals.

Setting Up an Assembly Item

An assembly is made up of other items in your inventory; so when you build an assembly item, you can only build as many as you have components.

There are two steps to creating an assembly item:

1) Define the items (components) the assembly contains.

2) Build the assembly. Additionally, you can purchase prebuilt "assemblies."

From the Maintain menu, select Inventory Items. Peachtree displays the Maintain Inventory Items window. Enter the ID of the assembly, and select Assembly as the item class. An ID can be created from the Description you enter.

After you finish filling out the window, select the Bill of Materials tab. Select item IDs for existing stock items or assemblies only, and enter the quantity. Press ENTER. Do this for each item that makes up the assembly. When you're finished entering the assembly item, select the Save button.

When you are finished entering inventory items, select the Close button.

Next step is to enter the beginning of the stock items that make the assembly item. Select the Assembly item on the Maintain Inventory Items window; click the Beginning Balances arrow down the bottom right hand corner of the Maintain Inventory Items window.

In this way the process of making assembly is finished, now you can check it by going Tasks Menu and select the Assemblies.

Once you click on it, a window Build/Inbuilt Assemblies will be open.

In this window, you have to give Assembly item id and the quantity to build, if you do not have the sufficient stock to build the required assemblies, a warning message will be appear that the assemblies cannot be made due to the insufficient stock.

Maintain Vendors

Following are the steps to create a Vendor:

1-    First of all go to the Maintain Menu and select the Vendors, you will get window of Maintain Vendor.

2-    There are two fields: Header and Tab field.

3-    In the Header field type the Vendor id and the name of the Vendor.

4-    In the General tab, enter the general information about the vendor such as contact information, address, telephone and website etc.

5-    In the Purchase Defaults tab, most important is to select the GL Purchase Acct. to which the purchases will be charged, selection of shipping and delivery method.

6-    In the Custom Field tab, you can enter the additional information of the vendor.

7-    In the History tab, you can review the past transactions with the vendor.

Vendors Default Info.

1-    Go to Maintain Menu and click the Default Information then select Vendors option, you will get following screen to enter the Vendors default information.

2-    There are four tabs such as Payment terms, Account Aging, Custom Fields and 1099 settings.

3-    In the payment terms, first you select the standard payment terms and provide the id information for the GL Purchase Acct and Discount GL Acct. in the GL Link Accounts.

4-    In the Account Aging tab, you can either use invoice date or due date method to age the Account Payables or you can use aging categories to filter the payables by setting your own range.

5-    In the Custom Fields, you can provide additional information of the vendor.

Purchase order

Enter a purchase order

1: From the tasks menu, select purchase order .Peachtree displays the purchase order window.

2: Enter or select the vendor id

3: If you will be printing the purchase order and want Peachtree to automatically assign this purchase order a number leave the PO# field blank. Other wise enter the purchase order number in this field.

4: If the purchase order date is not today date enter the date in the date field.

5: Enter the date this purchase order is good through in the Good Through field.

6: Change the discount amount as per requirement.

7: Enter the information for each item on a separate line, including item’s number quality item ID description unit price

8: If your is an accural based company you can select the accounts payable G/L account for this purpose .On financial statements this will be your account payable libility account. If yours is a cash basis company this field will display cash basis.

Note: If you have the hide general ledger accounts globle option activated peachtree will not display the account payable account field in this window. To modify the account payable used for this purpose for this transaction you must select the jouranal button.

9: Enter the information for each item on separate line, including the items quantity item ID description, unit price

10: Continue entering line items until you have to completed the purcjase order

11: Select the print button if you want to print and save the order. Otherwise, click the SAVE button.

Receive inventory on a purchase order enter purchase in voice

After you have entered a purchase order for your vendor, the next step is to receive the inventory for that purchase as it arrives. Peachtree allows you to receive a diifferent quantity for an item then you originally ordered. That is, you can receive less than or more than the originally ordered quantity.

1: From the Tasks menu, select Purchase/Receive Inventory. Peachtree display the Purchase/Receive Inventory widow.

2: Enter or select the vendor ID. To display a list of existing vendor, type in this field or selelct the Lookup button.

Note: If you have open purchase order with this vendor, the Apply to purchase order # tab disply in font

3: E nter the vendors invoice number in the invoice field. This is required field.

Note: If you have received inventory from a vendor by enetring a purcahse using “waiting on bill” option, peachtree will warn you when select this vendor so you don’t enetr the invoice for this vendor’s order twicw by mistake.

4: Enter the date of the transation if it is different from the displayed date.

5: Change the discount amount if nescessary, as well as the dislayed terms.

6: From the drop-down list on the Apply to Purchase Order #  tab, select the purcahse order number that you wayn to receive inventory against .Peachtree displays the items on the order in the line –item list.

7: In the Received field, enter the quantity of an items received.

Payments

1:Pay vendors

There are two basic methods of paying vendors:

1:1 Apply vendor invoices: pay previously entered invoices in the purchase window.

1: 2Apply to expenses (cash purchase): pay a vendor without using a vendor invoice.

See enter a cash purchase for fother information.

2: To apply a payment to vendor invoices

2:1From the Task menu select Payments.

2:2 Enter or select the vendor ID that you want to pay.

2:3 Enter or select the cash account from which you will be writing the check

2:4 On the Apply to invoice tab select the pay check box next each the invoices that you want to apply.

2:4:1 if you want to pay invoices in full place the cursor in the Amount column for the invoices and select the Pay check box. Peachtree will fill in the Amount Paid field.

2:4:2 if you want pay partial amounts on the invoice enter the amount. Peachtree will automatically swlect the Pay check box.

Note: If you over pay the amount a credit is made to the vendor’d ledger: for underpayments, the payment amount is applied to the invoice balance. You will need a referance number in order to post or save the record.

3: Enter a payment to a vendor not on file

4: Enter a manual check

5: Enetr a cash purchase and print check

6: Print check for invoices

6:1: To print an individual check for an invoice

6:2: To print a check for more than one invoice

6:3: To print check in abatch for vendor

7: Void Disbursment Check

7:1: To void check from the task menu

7:2: To void check from the payment window

8: When you void check

Vendor Credit Memos (Purchases Returns)

Vendors Credit Memo is used to record the returns to the Vendors whether on the direct purchases or on the existing invoices which have not been paid.

• Let see how to record “Returns to Vendors” in Peachtree Accounting Software:
• Go to task menu bar and click on Vendor credit memo, vendor credit memo window will open.
• Enter the vendor ID in the “Vendor ID” field to whom these Returns are made.
• Enter the date of returning goods in the “Date” field.
• Enter the Reference no. for the transaction in the “Credit no.” field; it must be a distinct number to avoid any errors.
• The “Terms” field will be automatically filled with the payment terms of the vendor whose ID is enter, these are the terms that were selected when the vendor was created.
• Enter the Account Payable account number in the “A/P Account” field to which this transaction will be charged.
• Now, if there are any invoices pending on that vendor then “Apply to Invoice No.” tab will be activated, otherwise user can only enter returns in the “Apply to Purchases” tab.

• Select the “Invoice no” from the drop down list on the Apply to Invoices tab to whom you want to charge the returns.
• The Item field, Quantity field, Unit Price field and Description field will be automatically filled with the details of Invoice no. selected.
• Enter the no. of items you want to return in the “Returned” field.
• Select the Inventory Account in the “GL Account” field.
• SThe “Amount” field will be calculated by multiplying Returned field with the Unit Price field.

o   Click on “Save” button to save the transaction.

Maintaining Global Options

Go to Options Menu and click on “Global”, following window will open

Following Tabs will be available on the Global Options window:

1.      Accounting

2.      General

3.      Peachtree Partners

4.      Spellings

1.      Accounting Tab:

·         Under this tab user can select the number of decimal places to be used in entering numbers in the software, if selected manual then user has to give decimals manually (no interference of software). But if we select automatic option, then software will automatically place the decimals in the numbers entered. User can select no. of decimal places from the drop down menu.

·         User can also hide the Account Receivable Field in Sales Orders, Quotes, Invoices, Credit Memo for Internal Control Purposes. Account Payable Field can also be hide from Purchase Order, Credit Memo and Payment windows by clicking on the check box.

·         Other prompt options can also be customize in this tab.

2.      General Tab:

·         General tab is used to set the software interface options; different Color Schemes are available for the software.

·         Improve performance is used to selecting options for improving the software processing time.

User can select One Line Item Entry Display to view only one horizontal line and Two Line Item Entry Display to view two lines in var