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BASIC

2009 SELF-STUDY GUIDE


PEACHTREE BY SAGE QUANTUM 2009 BASIC SELF-
STUDY GUIDE

Sage Software, Inc.


1715 North Brown Rd.
Lawrenceville, GA 30043

COPYRIGHT
© 2008 Sage Software, Inc. All rights reserved. The Sage Software logo, Peachtree,
Peachtree Premium, Peachtree Complete, Accounting Behind the Screens, Peachtree
Today, and the Peachtree logo are registered trademarks or trademarks of Sage Software,
Inc. or its affiliated entities. All other trademarks are the property of their respective
owners. For more information, call 800-247-3224 or visit us online at
www.peachtree.com.
No part of this book may be reproduced or transmitted in any form; electronic,
photocopying, or by any other means, without prior written permission of Sage Software,
Inc. Printed in the United States of America.
FIRST EDITION, JUNE 2008
DISCLAIMER
Information in this book is subject to change without notice. Company names and data
used as examples herein are fictitious unless otherwise noted. The information in this
book is distributed “as is,” without warranty. While every precaution has been taken to
assure the quality and accurateness of the information contained herein, Sage Software
assumes no liability to any person or entity with respect to any loss or damage caused by
or presumed to be caused by the instructions contained in this book or by the software
described in it.

i
PEACHTREE BY SAGE QUANTUM 2009 BASIC SELF-
STUDY GUIDE
DESCRIPTION
This course was developed for Peachtree users who want to master Peachtree Quantum
2009. It offers more than 40 activities to demonstrate how to use Peachtree to help you
run your business.

LEVEL BASIC
SOFTWARE RELEASE 2009

OBJECTIVES
You will learn to:
• Use basic Peachtree features
• Set up a new company
• Set up and use General Ledger
• Set up and use Accounts Payable
• Set up and use Accounts Receivable
• Set up and use Payroll
*For a complete list of specific topics covered within each chapter of this guide, please
refer to the Table of Contents.

ii Peachtree Quantum Basic Self-Study Guide


TA B L E O F C O N T E N T S

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T ABLE OF C ONTENTS
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A
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Using This Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Basic Navigation and Getting Help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Starting Peachtree . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Using the Peachtree Icon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Using the Start Menu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
The Start Screen. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

NEW COMPANY SETUP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5


Entering Company Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Select a Method to Create Your Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Selecting a Business Type . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Copy Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Consolidating Existing Peachtree Accounting Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Choosing an Accounting Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Choosing a Posting Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Setting Up Accounting Periods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Custom Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Setup Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

SETTING UP GENERAL LEDGER. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21


Entering General Ledger Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Rounding Account Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Account Segments Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Modifying the Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Maintain Chart of Accounts Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Header Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Account Numbering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
Account Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Masking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Entering Account Beginning Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Chart of Accounts Beginning Balances Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Out-of-Balance Situation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Entering Account Budgets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Maintain Budgets Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Creating a budget. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Copying A Row . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Copying a Column. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Adjusting Amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

iii
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SETTING UP ACCOUNTS PAYABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Entering Vendor Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Vendor Defaults Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Payment Terms Tab. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Account Aging Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Custom Fields Tab. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
1099 Settings Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Adding Vendors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Maintain Vendors Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Header Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
General Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Addresses tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
History Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Purchase Info Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Insurance Tab. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Entering Vendor Beginning Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Vendor Beginning Balances Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Vendor Balances Tab. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Purchases From Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

SETTING UP INVENTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Entering Inventory Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Inventory Item Defaults Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
General Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
Ordering Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
GL Accts/Costing Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Taxes/Shipping Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Custom Fields Tab. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Price Levels Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Adding Inventory Items. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Maintain Inventory Items Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Header Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
General Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Custom Fields Tab. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
History Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Entering Inventory Beginning Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Inventory Beginning Balances Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

SETTING UP ACCOUNTS RECEIVABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83


Entering Customer Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Customer Defaults Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Terms and Credit Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Account Aging Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Custom Fields Tab. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Finance Charges Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Pay Methods Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Setting Up Sales Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Setting up a New Sales Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

iv Peachtree Quantum Basic Self-Study Guide


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Add Sales Tax Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Sales Tax Entered . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Adding Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Maintain Customers/Prospects Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Header Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
General Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Addresses Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
History Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Sales Info Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Payment and Credit Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Entering Customer Beginning Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Customer Beginning Balances Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Customer Balances Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Invoices For Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
Entering Statement and Invoice Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Statement/Invoices Defaults Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104
Statement Print Options Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Dunning Messages Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

SETTING UP PAYROLL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107


Setting Up Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Payroll Setup Wizard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Entering Employee Defaults . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Employee Defaults Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
General Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
Employee Fields Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Company Fields Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Adding Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Maintain Employees/Sales Reps Window. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Header Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
General Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Pay Info Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Withholding Info Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Vacation/Sick Time Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
EmployEE Fields Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Company Fields Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
Entering Employee Beginning Balances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
Employee Beginning Balances Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136

LISTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Viewing a List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
The List Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Adding a new Record or Transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Editing an Existing Record or Transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Searching for a Record or Transaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Printing a List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Customizing a List. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

USING GENERAL LEDGER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145

v
.....
Entering General Journal Entries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
General Journal Entry Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
Recurring Journal Entries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
General Ledger Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
Report Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Report Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

USING ACCOUNTS PAYABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155


Entering Purchase Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
Purchase Orders Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Editing Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Purchasing and Receiving Inventory/Entering Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
Purchases/Receive Inventory Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
Header Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Apply to Purchases Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Footer Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
Apply to Purchase Order # Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
About Making Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Entering Payments/Paying Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Payments Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Header Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Apply to Expenses Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Apply to Invoices Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Apply to Customer Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Writing Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Write Checks Window. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Handling Specific Types of Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
Entering a Manual Check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
Processing a Prepayment or Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
Accounts Payable Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
Report Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178

USING INVENTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181


Entering Inventory Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
Inventory Adjustments Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
Inventory Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
Report Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185

USING ACCOUNTS RECEIVABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189


Entering Quotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
Quotes Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191
Converting a Quote . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
Entering Sales Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Sales Orders Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196
Entering Sales Invoices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
Sales/Invoicing Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
Header Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199
Apply to Sales Tab. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200

vi Peachtree Quantum Basic Self-Study Guide


.....
Footer Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Apply to Sales Order # Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202
Entering Receipts/Receive Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
Receipts Window. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204
Header Fields . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
Apply to Revenues Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
Apply to Invoices Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
Apply to Vendor Account Tab . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208
Handling Specific Types of Receipts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
Entering a Prepayment or Deposit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
Accounts Receivable Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212
Report Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212

USING PAYROLL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215


Paying an Employee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
Payroll Entry Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
Payroll Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Report Descriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220

UTILITIES AND SPECIAL PROCESSING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223


Change a Record ID. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
Change ID Window . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224
Adding Records on the Fly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
Void Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
Voiding Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
Voiding Sales Invoices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228
Account Reconciliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229
Account Reconciliation Window. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229
Backup and Restore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233
Making a Backup. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233
Restoring a Backup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
Business Status Center. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237
The Toolbar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238
Using and Customizing the List of Shortcuts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 238

vii
.....

viii Peachtree Quantum Basic Self-Study Guide


I NTRODUCTION
................................... 1
P
eachtree Quantum 2009 Basic Self-Study Guide is a guide
developed for users who want to learn Peachtree Quantum 2009.
This book contains more than 40 activities to help you learn how to
use Peachtree to manage the accounting needs of your business. After
completing the activities in this book, you will be able to manage your
accounting procedures effectively and efficiently.

Using This Gui de


Use this book interactively. It has been designed to teach you the basics of
using Peachtree 2009 by introducing you to new material in a section, and then
reinforcing that material with activities that you perform using Peachtree.
Each activity in this guide centers around a sample sales and service company.
The activities are based on everyday accounting transactions and can be
applied to your own company regardless of the type of business. The sample
company you will create, Abracadabra Web Services, is a sales and services
company that provides its customers with a variety of specialty products and
services.
To get the most from this guide
• Read each section carefully, opening the windows and
screens in Peachtree and studying them yourself. Use the
online Help in the program for supplemental information on
various fields and functions. You can use one of the sample
companies provided in Peachtree for viewing windows and
screens. Sample Companies can be opened by starting
Peachtree, then selecting Explore a sample company, then
selecting the company you want to open. Or you can select
Close Company from the File menu and then choose
Explore a sample company.
• Perform the activity following each section to reinforce your
learning, using the company you create in Chapter 2 of this
guide. Use the online Help or the Users Guide supplied with
Peachtree for further information or to answer any questions
you might have about the window and its function.

1
.....
1 INTRODUCTION
Basic Navigation and Getting Help

BASIC NAVIGATION AND GETTING HELP


........................................
Like many programs, the features of Peachtree can be accessed using a mouse or the
keyboard.
The mouse can be used to access menus, navigation aids, and all other operations that
require you to point and click. To use the mouse, place the mouse pointer over the option
you want to access and click the left mouse button to select it. In some areas of Peachtree,
additional options are available by clicking the right mouse button.
Another way to access menus and menu functions is to use keyboard shortcut keys. A
complete list of shortcut keys can be found in the online Help for Peachtree. On each
window in Peachtree, you will see underlined letters in field names. To access a field
using a shortcut key, press and hold the ALT key, then press the key for the underlined
letter. For example, in the General Journal Entry window, the D in the field name Date
is underlined. To move to the Date field, press and hold the ALT key, then press the D
key. This shortcut can also be represented by the abbreviation ALT+D.

Help
Accessing online Help is easy in Peachtree. You can access Help by clicking the Help
button, pressing F1, or using the Help menu.
• Help Button: This button is available on most Peachtree windows. Help topics relating
to the current window appear when you click the Help button.
• F1: Displays Help topics relating to the current window.
• Help Menu: Lists all Help options available in the program. The various topics are
categorized in the Contents and Index options. The How To section of the Table of
Contents is particularly useful, because it gives a list of step-by-step instructions for
nearly every feature of Peachtree.
Peachtree has additional Help related items:
• What’s This?: Displays context-sensitive information for most fields in Peachtree. To
access this feature, right-click on a field and select What’s This?, or press SHIFT+F1
and click on a field.
• Peachtree Accounting Guided Tour: Guides you through the basics of navigating
through the various menus and options the program offers. To access this feature, select
Help, Peachtree Accounting Guided Tour from the menu bar.
• Tooltips: Tooltips appear when you pass the cursor over buttons in the toolbars. They
tell you what the button is for.

2 Peachtree Quantum Basic Self-Study Guide


. .....
INTRODUCTION
Starting Peachtree 1
STARTING PEACHTREE
........................................
Once Peachtree is installed, you can start the program in one of two ways:
• Double-click the Peachtree icon
• Use the Start menu
If you have not installed Peachtree, refer to the User Guide.

Using the Peacht ree Icon


When Peachtree is installed, a Peachtree icon will be placed on your desktop. To start the
program, double-click the icon.

Using the St art Menu


During installation of Peachtree, a program group is created so you can start the program
using the Start menu. Follow these steps to start Peachtree using the Start menu:
• Click Start and select Programs.
• Highlight the Peachtree group.
• Choose Peachtree 2009.

3
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1 INTRODUCTION
Starting Peachtree

The Start Screen


When you first start Peachtree, the Start Screen opens.

The options available on the Start Screen include:


- Open an existing company.
- Create a new company.
- Explore a sample company.
- Convert from another accounting application.

4 Peachtree Quantum Basic Self-Study Guide


N EW C OMPANY S ETUP
................................... 2
N
ew company setup is an easy way to enter basic information
about your company into Peachtree. To help you with creating a
new company, Peachtree provides the Create a New Company
Wizard.
When setting up a new company, you enter information such as your company
name and address. You will also select a chart of accounts, accounting method,
and posting method. Finally, you will establish accounting periods that match
your company’s fiscal year.
There are two ways to start the Create a New Company
Wizard. The first method is to select File, New
Company from the menu bar. The second method is to
select Create a new company from the Start Screen. If
another company is open, you will receive a message
stating, “This will close the current company.” Click OK
to continue to the Create a New Company Wizard.

5
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2 NEW COMPANY SETUP
Entering Company Information

ENTERING COMPANY INFORMATION


........................................
The Create a New Company Wizard guides you through entering the company address,
telephone numbers, tax ID numbers, and business type.
Company information appears on reports, purchase orders, invoices, quotes, checks, and
tax forms.

Once the new company has been created, you can select Maintain, Company Information
at any time to review or update the information entered on this window.

6 Peachtree Quantum Basic Self-Study Guide


. .....
NEW COMPANY SETUP
Select a Method to Create Your Company 2
SELECT A METHOD TO CREATE YOUR COMPANY
........................................
Depending on the version of Peachtree you are using, there can be up to five chart of
accounts options when setting up a company:

Select Use a sample business type that closely matches your company to automatically
import a chart of accounts for one of these types of companies. You will have a choice of
either simplified charts of accounts or detailed charts. If you select this option, you will
select the type of company on the next screen. You can later add, edit, or delete accounts
and account descriptions.
If you already have a Peachtree company and would like to use a similar chart of accounts
for the new company, select Copy settings from an existing Peachtree Accounting
company.
If you select Convert a company from another accounting program or Build your
own chart of accounts, the chart of accounts selection is skipped, and Peachtree allows
you to create your own chart of accounts once the company has been created.
If you select Consolidate existing Peachtree Accounting companies, you will establish
this company as a holding company whose financials will consolidate information from
companies you specify in the next window.

7
.....
2 NEW COMPANY SETUP
Select a Method to Create Your Company

Selecting a Business Type


You can select a chart of accounts from any of the sample companies provided. You can
view the chart of accounts for a sample company on the right.

Click the View details about a business type link to see details of the highlighted
business type.

Copy Company
To view the accounts in a company, highlight a company name and the accounts will
appear to the right. To select a company to copy settings from, highlight the company
name and click Next. The next window lists the various components of the company that

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. .....
NEW COMPANY SETUP
Select a Method to Create Your Company 2
you can copy to the new company. Select the check boxes for the components you want to
copy and clear the check boxes for the components you do not want to copy.

Define Account Segments


If you selected Build your own chart of accounts, Peachtree will display the Define
Account Segments window. Here, you will select whether or not you want to divide your
General Ledger Account ID into segments. You have the ability to create and define up to
five segments for your Account ID. The account descriptions will be used throughout the
program, and you will be able to filter reports and financial statements based on a
particular segment simply by selecting the appropriate segment from a drop-down list.
These are useful if you departmentalize your chart of accounts or use any other parts of
your Account ID to define different parts of your company.
• If you want to use segments and masking, select Yes, I would like to use account
masking and then enter a description for each segment (up to 10 characters), its length,
and the separator between that segment and the one that follows it. The total length of
the ID, including separators, can be up to 15 characters, and Peachtree will display the
structure of the ID on the right side of the window. When you are done, click Next. If

9
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2 NEW COMPANY SETUP
Select a Method to Create Your Company

you want to change the account segmentation later, you can do so in General Ledger
Defaults on the Account Segments tab.

• If you do not want to use segments in your Account ID, select No, I do not want to use
Account Masking and click Next.

Consolidating Existing Peachtr ee Accounting Companies


To specify the companies that will be consolidated in this company, select each company
from the list in the left hand box and click Add. If the company does not appear in the list,
you can use the Browse button to search for it.

There are a number of rules for consolidating companies:


• All companies to be consolidated must have the same fiscal year setup, as well as the
same accounting method (Accrual or Cash).

10 Peachtree Quantum Basic Self-Study Guide


. .....
NEW COMPANY SETUP
Select a Method to Create Your Company 2
If you choose to create a consolidated company, Peachtree will skip the Accounting
Method and Accounting Periods windows, since the accounting method and periods are
determined by the companies to be consolidated.
• Each General Ledger account must be of the same type (for example, account 10001
must be Petty Cash in all companies).
• General Journal descriptions will include the company name of the subsidiary
company in which a transaction was created.
• All transactions created in the consolidated company will have the reference
"Consolidated Trans."
Later, you can change which companies are consolidated by opening the consolidated
company and selecting File, Reconsolidate Company.

11
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2 NEW COMPANY SETUP
Choosing an Accounting Method

CHOOSING AN ACCOUNTING METHOD


........................................
Peachtree allows you to choose one of two accounting methods, Accrual or Cash. The
cash method records income when cash is received and expenses when they are paid. The
accrual method records income when it is earned and expenses when they are incurred. If
you are not sure which accounting method your company should use, consult your
accountant before selecting an accounting method.

You cannot change Accounting Methods once New Company Setup is complete. Ensure
that the correct accounting method is selected before continuing.

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. .....
NEW COMPANY SETUP
Choosing a Posting Method 2
CHOOSING A POSTING METHOD
........................................
Peachtree allows you to choose one of two posting methods, Real Time or Batch. When
you use real-time posting, transactions update the General Ledger when they are saved. If
you choose batch posting, you must post the journals before the General Ledger will be
updated.

Real-time posting updates the General Ledger each time a transaction is entered, which
means your reports in Peachtree always reflect your current financial standing. For this
reason, Peachtree recommends using real-time posting.
The posting method can be changed at any time by selecting Company Information from
the Maintain menu.

13
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2 NEW COMPANY SETUP
Setting Up Accounting Periods

SETTING UP ACCOUNTING PERIODS


........................................
On the Accounting Periods Structure window you can choose to use 12 monthly
accounting periods per year, or Accounting periods that do not match the calendar
months. An example of the latter would be a business that needs 13 periods with four
weeks in each period.

Peachtree allows two fiscal years to be open at a time. Each fiscal year is made up of
accounting periods. At the end of the second fiscal year, you close the first fiscal year to
make the next fiscal year available.
Your accounting period setup should reflect the beginning of your fiscal year, even if you
start entering transactions in the middle of the year. Some examples of common situations
are below:
• The fiscal year starts January 2008 and matches the calendar year. Transactions will be
entered in Peachtree starting in June 2008. The accounting periods should be set up so
that January 2008 is period 1. That means that June 2008 will be period six, and
transactions can be entered for any month between January 2008 and December 2009.
• The fiscal year starts in July 2008 and ends in June 2009. Transactions will be entered
in Peachtree starting July 2008. The accounting periods should be set up so that July
2008 is the first period. This accounting period setup would allow transactions to be
entered in any month between July 2008 and June 2010.

14 Peachtree Quantum Basic Self-Study Guide


. .....
NEW COMPANY SETUP
Setting Up Accounting Periods 2
Fiscal Year
If you chose the option 12 monthly accounting periods, you will next specify when you
want your fiscal year to begin.

You cannot change Accounting Periods once New Company Setup is complete. Ensure
that the correct accounting periods are selected before continuing.

15
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2 NEW COMPANY SETUP
Setting Up Accounting Periods

Cust om Fiscal Year


If you chose Accounting periods that do not match the calendar months, the following
questions appear on the Custom Fiscal Year window:

• How many accounting periods do you want in a fiscal year?


- You may enter from 1 to 13 accounting periods per fiscal year. When 13 is chosen,
the periods in the list to the right will default to 13 four-week periods.
• What is the start date of your first fiscal year?
- Enter the month and year of your first fiscal year.
After the company is created, you can change the current period at any time by selecting
Tasks, System, Change Accounting Period from the menu bar.
If the accounting periods shown in the list to the right still do not match your fiscal year
setup, you can change each From and To date as needed.
You cannot change Accounting Periods once New Company Setup is complete. Ensure
that the correct accounting periods display before continuing.

16 Peachtree Quantum Basic Self-Study Guide


. .....
NEW COMPANY SETUP
Setup Guide 2
SETUP GUIDE
........................................
You can use the Setup Guide to walk you through setting up all of your customers, jobs,
vendors, inventory items, employees, chart of accounts, and users.

ACTIVITY 1 - SETTING UP A NEW COMPANY


Abracadabra Web Services is a sales and service corporation based in Atlanta,
Georgia. The company’s fiscal year starts in January and ends in December.
Abracadabra is ready to use Peachtree for its daily accounting tasks. The company
will start entering new transactions in Peachtree on February 1, 2008. Follow these
steps to set up this company in Peachtree:
1 Start Peachtree using the start menus or the icon on the Desktop. Select Create
a new company from the Start Screen.
2 A window opens, welcoming you to the Create a New Company Wizard.
Read the information and click Next.

17
.....
2 NEW COMPANY SETUP
Setup Guide

3 Enter the information shown below in the Company Information window:

4 Click Next after you have entered all the information.


5 Abracadabra will use a business type provided with Peachtree. Select Use a
sample business type that closely matches your company and click Next.
6 Scroll through the Select a business type list on the left until you find Sales &
Service Company. Highlight the words Sales & Service Company by clicking
them; then click Next to select that business type.
7 Abracadabra uses the accrual method of accounting. Select Accrual and click
Next.
8 Select Real Time for the posting method. This will allow each transaction
entered to update the General Ledger automatically. Click Next.

9 Abracadabra’s fiscal year runs from January to December each year with one
period for each month. Select 12 monthly accounting periods per year and
click Next.
10 Abracadabra’s fiscal year will begin in January 2008. Enter this value and click
Next.
11 You are now ready to finish the Create a New Company Wizard. Select
Finish.
12 A progress window appears as the company is created. When it is finished,
close the Peachtree Payment Solutions screen.
13 Close the Setup Guide.

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. .....
NEW COMPANY SETUP
Setup Guide 2
14 The desktop should appear as shown below:

15 To ensure that the remaining activities in this guide work properly, you will
need to verify the Global Options. Select Options, Global from the menu bar.

19
.....
2 NEW COMPANY SETUP
Setup Guide

16 On the Accounting tab, ensure that Hide inactive records and each box in the
Hide General Ledger Accounts section is clear.

17 Select the General tab.


18 Ensure that Automatic Field completion and Drop-down list displays
automatically are selected, but Automatically create IDs on maintenance
windows is unchecked. Set Line Item Entry Display to 2 line.
19 Click OK to return to the Peachtree desktop.
20 Finally, Abracadabra will begin entering transactions in February 2008. To
change the Accounting Period to February, select Tasks, System, Change
Accounting Period.
21 Highlight 02-Feb 01,2008 to Feb 29, 2008.
22 Click OK. If you receive a notice asking you to run the Internal Accounting
Review, click No.

20 Peachtree Quantum Basic Self-Study Guide


S ETTING UP G ENERAL L EDGER
................................... 3
T
he General Ledger stores information relating to all financial
activity for your company. All business transactions are eventually
posted to the set of accounts that make up the General Ledger.
This set of accounts is called the chart of accounts. You can think of the chart
of accounts as holding places for every item you want to keep track of in your
business. Information about the chart of accounts is entered through the
Maintain Chart of Accounts window.
When transactions are posted in Accounts Receivable, Accounts Payable,
Inventory, and Payroll, the journals are updated. The journals in turn update
the General Ledger. Entries made to the General Journal also update the
General Ledger. The interaction between the General Ledger and the other
sections in Peachtree is illustrated below:

Acco un ts Acco un ts I nv en to r y Payro l l


R eceiva ble Payable

Jo urn als

General Gen era l


L edg er Jo ur nal

21
.....
3 SETTING UP GENERAL LEDGER
Entering General Ledger Defaults

ENTERING GENERAL LEDGER DEFAULTS


........................................
To access the default information window for the
General Ledger, select Default Information,
General Ledger from the Maintain menu.

Roundi ng Account Tab


The Rounding Account is an account in your General Ledger used by Peachtree to store
rounding differences on Financial Statements. This account can be either a balance sheet
account or an income statement account. Typically, the Retained Earnings account is
used.

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. .....
SETTING UP GENERAL LEDGER
Entering General Ledger Defaults 3
Account Segment s Tab
On the Account Segments tab, you can create or change segments for your chart of
accounts ID. This will allow you to take full advantage of the masking and filtering
features of Peachtree when you print reports and financial statements. You can use this
feature for printing reports that are filtered by department, division, account ID, or any
other segment you create. When you initially create your company in New Company
Setup, Peachtree gives you the opportunity to divide your Account ID into segments, but
you can do it here as well. If your chart of accounts is already set up and you change the
segment structure, Peachtree will scan your chart of accounts and inform you if any
accounts do not fit the new segment structure. You can then print your Chart of Accounts
report to identify those accounts.
You can segment your chart of accounts ID by creating descriptions, lengths, and
separators for up to five segments.

ACTIVITY 2 - SETTING UP GENERAL LEDGER DEFAULTS


The only information we will set up in General Ledger defaults is the Rounding
Account. This account is used by Financial Statements when they are designed to
round dollar amounts to the nearest dollar. Any rounding differences are added to the
Rounding Account on the Financial Statement. To verify the rounding account:

23
.....
3 SETTING UP GENERAL LEDGER
Entering General Ledger Defaults

1 Select Maintain, Default Information, General Ledger. The General Ledger


Defaults window displays the Rounding Account.

2 Verify that the Rounding Account assigned is account 39005, which is


Retained Earnings. If the account is correct, click OK. If the account is
incorrect, enter 39005 and click OK.

..

24 Peachtree Quantum Basic Self-Study Guide


. .....
SETTING UP GENERAL LEDGER
Modifying the Chart of Accounts 3
MODIFYING THE CHART OF ACCOUNTS
........................................
If you chose to copy a chart of accounts while using the New
Company Setup Wizard, you already have a full list of accounts
available. This chart contains all the accounts necessary to run a
business. However, since all businesses are different, it may be
necessary to add, rename, or delete specific accounts in the chart of
accounts.
In the Maintain Chart of Accounts window, you can add and edit
existing accounts or delete accounts that have no activity. You can
also enter beginning balances for the accounts.
The chart of accounts is explained on the following pages. To open
the Maintain Chart of Accounts window, select Maintain, Chart
of Accounts.

Maintain Chart of Accounts Wi ndow


The Maintain Chart of Accounts window is used to enter new accounts, edit existing
accounts, enter account beginning balances. Fields of interest are described below:

HEADER FIELDS
• Account ID: Identifies the account in the chart of accounts, lookup lists, transactions,
and reports. The ID can be up to 15 characters.

25
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3 SETTING UP GENERAL LEDGER
Modifying the Chart of Accounts

• Description: Enter a description for the account. This description prints on reports and
financial statements.
• Inactive: Select this check box to make the ID inactive. Inactive records are deleted
when the purge utility is run, if they have not been used in any transactions in an open
fiscal year. Inactive records can be used in transactions, but a message appears,
reminding you of the inactive status.
• Account Type: Select a type from the drop-down list. Accounts are grouped by
account type on financial statements. Accounts assigned to the account types of
Income, Expenses, Cost of Sales, and Equity--Gets Closed will close to the account
assigned to the Equity--Retained Earnings account type at the end of the fiscal year.

Account Numbering
Peachtree allows the use of both numbers and characters in an account numbering system.
However, an account numbering system should be established so it can be understood by
everyone, from new employees to accountants. In a traditional General Ledger, individual
accounts are numbered and placed into ranges similar to those in the following table:

Account Range Account Types

10000 Cash, Accounts Receivable, Assets

20000 Accounts Payable, Liabilities

30000 Equity

40000 Income

50000-70000 Cost of Sales, Expenses

80000 Other Income

90000 Other Expenses

Peachtree’s sample companies use numbering schemes similar to those in the table above.
If you choose not to use a sample chart of accounts, there are a few rules and guidelines
that should be followed when an account numbering system is established.
• Up to 15 alphanumeric characters can be used in an account ID.
• Asterisks (*), question marks (?), and plus signs (+) cannot be used in an account ID.
• Leading or trailing spaces are not permitted in an account ID. However, spaces
between characters are allowed.
• Account numbers are sorted alphabetically, with numbers in the account ID sorted
before letters. For example, account ID “2” lists after account ID “1000” and before an

26 Peachtree Quantum Basic Self-Study Guide


. .....
SETTING UP GENERAL LEDGER
Modifying the Chart of Accounts 3
account ID starting with “AR.” Account numbers are not case sensitive; therefore,
CASH and Cash are the same account ID.
• There can only be one account assigned an account type of Equity--Retained Earnings.

Account Types
Account types are used to group similar accounts together. They also determine where the
accounts will appear on financial statements, and whether the account typically carries a
debit or credit balance. Peachtree has a wide variety of account types available:

•Accounts Payable •Expenses


•Accounts Receivable •Fixed Assets
•Accumulated Depreciation •Income
•Cash •Inventory
•Cost of Sales •Long Term Liabilities
•Equity - Doesn’t Close •Other Assets
•Equity - Gets Closed •Other Current Assets
•Equity - Retained Earnings •Other Current Liabilities
•Receivables Retainage •Payables Retainage

At the end of the fiscal year, the balances of the Income, Expense, Cost of Sales, and
Equity--Gets Closed account types become zero. The net difference of these accounts is
added to the Equity--Retained Earnings account.

ACTIVITY 3 - MODIFYING THE CHART OF ACCOUNTS


Most of the accounts in the sample chart of accounts can be used by Abracadabra
Web Services. However, there are a few account descriptions that need to be changed
to more closely match the needs of the business. Also, a few accounts need to be
deleted and a few new accounts need to be added.

CHANGING ACCOUNT DESCRIPTIONS


Some account descriptions need to be changed to match the business needs. Follow
these steps to change the descriptions of accounts:
1 Select Maintain, Chart of Accounts.
2 Enter or select account 10200 from the Account ID lookup list.

27
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3 SETTING UP GENERAL LEDGER
Modifying the Chart of Accounts

3 Change the Description to National Bank Checking.


4 Click the Save button.
5 Using these steps as a guide, change these account descriptions. Remember to
click Save after changing each description:

Account ID New Description

50000 Cost of Services Sold

75500 Photostat Expense

76000 Printing and Copying Expense

DELETING ACCOUNTS
Some accounts are not needed, so they can be deleted. Follow these steps to delete
accounts:
1 Enter account 15400 for the Account ID.
2 Click the Delete button.
3 Select Yes to confirm you want to delete the record.
4 Using these steps as a guide, delete these accounts:

Account ID Description

40200 Sales #1

40400 Sales #2

40600 Sales #3

ADDING ACCOUNTS
Abracadabra needs to track income from Web sites designed for companies
separately from those designed for individuals. Web sites designed for companies
will use the Commercial accounts, which end in the letter C. Web sites designed for
individuals will use the Personal accounts, which end in the letter P. This will allow
you to track the income for each category and use department-related features.
Follow these steps to add accounts:
1 Click the New button on the toolbar
2 Enter the Account ID 40200-C.
3 Enter the Description Design-Commercial Site.

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. .....
SETTING UP GENERAL LEDGER
Modifying the Chart of Accounts 3
4 Select the Account Type Income.
5 Click Save & New to add the account and clear the fields.
6 Using these steps as a guide, add these accounts. Remember to click Save &
New after adding each account:

Account ID Description Account Type

40200-P Design-Personal Site Income

40400-C Programming-Commercial Site Income

40400-P Programming-Personal Site Income

40500-C Maintenance-Commercial Site Income

40500-P Maintenance-Personal Site Income

7 You can view your changes on the Chart of Accounts report. To do so, click the
Reports icon in the toolbar and, from the drop-down list, select Chart of
Accounts. This will open the report on your screen.
8 Select Close to close the report when you are finished.
9 Select Close to close the window.

29
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3 SETTING UP GENERAL LEDGER
Modifying the Chart of Accounts

Maski ng
The chart of accounts can be divided into departments. When printing certain reports, you
can filter or mask the information that appears. In the window below, the “NU” in account
57000-NU is an example of an account mask.

Department masking is a powerful feature in Peachtree. Masking allows you to set up


codes that, as part of your account number, represent a division or department for that
account.
For example, if your company has two branches and
4001M01 each branch has two departments, you can establish
accounts that differentiate the branches and their
departments. An example of a seven-character account
Account Department number is shown. The fifth character represents the
location, and the sixth and seventh represent the
Location
department.
To view reports containing only data specific to a branch
or department, use a department mask. For example, to view the totals for department 01,
enter *****01, where asterisks represent any possible character or number. Shown below

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. .....
SETTING UP GENERAL LEDGER
Modifying the Chart of Accounts 3
is an example of masking the General Ledger report to include transactions for
department 01.

Quantum offers you the Account Segment feature, which allows you to segment your
chart of accounts and filter reports using drop-down selection lists rather than the masking
method using the asterisk. For information on setting up your company with Account
Segments, see the online Help in Peachtree, or page 23.

31
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3 SETTING UP GENERAL LEDGER
Entering Account Beginning Balances

ENTERING ACCOUNT BEGINNING BALANCES


........................................
Peachtree can record account beginning balances in any period in companies that have no
posted transactions. After one or more transactions have been posted, Peachtree records
account beginning balances as prior-period adjustments.
To enter account beginning balances, click the Account Beginning Balances arrow
button on the Maintain Chart of Accounts window. Select the accounting period to enter
or adjust balances from the Select Period window.

When entering beginning balances, entries can be made in previous, current, or future
periods. When entering prior period adjustments, entries can be made only in previous
periods.
Typically, account beginning balances should be entered in the period previous to the first
period in which transactions will be entered. For example, if transactions will be entered
in Peachtree starting in June, the account beginning balances should be entered as of the
end of May.

Char t of Accounts Begi nning Balances Wi ndow


The Chart of Accounts Beginning Balances window lists each account ID, description,
and account type. Depending on the account, entries are made in the Assets, Expenses
column or in the Liabilities, Equity, Income column. Peachtree indicates which column
to use by making the other column unavailable. Positive amounts are entered in both
columns unless one of the following apply:
• The balances are for contra accounts other than accumulated depreciation.
• Your company is operating “in the red” and has a negative retained earnings account
balance.
• You are converting mid-year and are recording dividends paid. The balance of this
equity account would be entered as a negative value.
• Any time an account has a balance that is the opposite of its normal balance.

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SETTING UP GENERAL LEDGER
Entering Account Beginning Balances 3
Fields of interest are described below:

• Assets, Expenses: Enter the balance of the account if the account typically carries a
debit balance. If the account is a contra account other than accumulated depreciation or
currently carries a credit balance, enter a negative amount.
• Liabilities, Equity, Income: Enter the balance of the account if the account typically
carries a credit balance. If the account is a contra account or currently carries a debit
balance, enter a negative amount.
• Trial Balance: Shows the result of the Assets, Expenses column minus the Liabilities,
Equity, Income column. This value should be zero before you click OK. If this value is
non-zero, the amount shown will post to a Beginning Balances Equity account.

Out-of-Balance Si tuat ion


If the Trial Balance shown at the bottom of the Chart of Accounts Beginning Balances
window is not zero, then there is an out-of-balance situation. If you click OK with an out-
of-balance situation, the following message appears:

If you click OK to this message, a Beginning Balance Equity account will be created in
the equity section of your chart of accounts. The total out-of-balance amount will post to
this account. Your books will be in balance, and you can enter and post transactions.
However, this account appears on General Ledger reports and on the Balance Sheet until
the amount in it is allocated to another account.

33
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3 SETTING UP GENERAL LEDGER
Entering Account Beginning Balances

Peachtree suggests you click Cancel to return to the Chart of Accounts Beginning
Balances window. Then, locate and correct errors made when entering account beginning
balances. When the Trial Balance is zero, you can click OK.

ACTIVITY 4 - ENTERING BEGINNING BALANCES


Abracadabra has created a list of their ending balances for each account as of January
31, 2008. These balances will be entered in Peachtree as the chart of accounts
beginning balances. These balances will update the General Ledger when saved.
Follow these steps to enter account beginning balances:
1 Select Maintain, Chart of Accounts.
2 Click the Account Beginning Balances button. Select the period From 1/1/08
through 1/31/08 on the Select Period window and click OK.

This period is selected because the balances for each account are as of January 31, 2008.
3 The Chart of Accounts Beginning Balances window displays the ID,
description, and type for each account. Accounts with a zero balance can remain
blank.
4 Enter the account beginning balances listed on the next page. Not every account
is listed, so use caution and enter the balance for the correct account.

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SETTING UP GENERAL LEDGER
Entering Account Beginning Balances 3
5 When finished, click OK to save the balances, then click Close.

Liabilities,
Assets, Equity,
Account ID Account Description Account Type Expenses Income
10000 Petty Cash Cash 500.00
10200 National Bank Checking Cash 27764.45
10300 Payroll Checking Cash 12000.00
10400 Savings Account Cash 16746.00
11000 Accounts Receivable Accounts Receivable 16547.44
12000 Inventory Inventory 508.00
15000 Furniture & Fixtures Fixed Assets 2000.00
15100 Equipment Fixed Assets 8000.00
15200 Automobiles Fixed Assets 12000.00
17000 Accum. Depreciation-Furniture Accumulated Depreciation 200.00
17100 Accum. Depreciation-Equipment Accumulated Depreciation 600.00
17200 Accum. Depreciation-Automobil Accumulated Depreciation 800.00
20000 Accounts Payable Accounts Payable 9007.00
23100 Sales Tax Payable Other Current Liabilities 532.44
23400 Federal Payroll Taxes Payable Other Current Liabilities 1969.24
23500 FUTA Tax Payable Other Current Liabilities 81.60
23600 State Payroll Taxes Payable Other Current Liabilities 328.42
23700 SUTA Payable Other Current Liabilities 306.00
39005 Retained Earnings Equity-Retained Earnings 83814.69
40200-C Design-Commercial Site Income 4890.92
40400-C Programming-Commercial Site Income 2553.68
50000 Cost of Services Sold Cost of Sales 1877.52
65000 Employee Benefit Programs Exp Expenses 30.54
72000 Payroll Tax Expense Expenses 1581.00
77500 Wages Expense Expenses 5529.04
Total: 105083.99 105083.99

6 To view your trial balance, select Reports & Forms from the menu bar, then
General Ledger.

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Entering Account Beginning Balances

7 From the Report List section of the Select a Report & Form window, double
click General Ledger Trial Balance.

8 When you are done viewing the report, click Close.


9 Click Close on the Select a Report or Form window.

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ENTERING ACCOUNT BUDGETS
........................................
Budgets can be entered for each account using the Budgets feature under the Maintain
menu. These budget amounts appear on Financial Statements that compare actual activity
to the budget assigned to the account.

Maintain Budgets Window


The Maintain Budgets window is used to enter and update budget information for
accounts. You can enter data for up to four fiscal years. In addition, you can print a budget
variance report from this window. Peachtree Quantum allows you to track multiple
budgets. Fields of interest are described below.

• Account Filters: Use these filters to select ranges of accounts that you want to view.
Use the Department Mask field to filter your budget by department mask. You can
select to filter by Account Segment, in addition to Type.
• View Fiscal Year: Use this field to select which fiscal year you want to view. You can
select from up to four fiscal years.

CREATING A BUDGET
You can create a budget by selecting Maintain, then Budgets. On the Maintain Budgets
window, enter a Budget Name and Description. Then, select your Account Filter and

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Entering Account Budgets

Fiscal Year. Finally, fill in the grid below with your budget amounts for each account and
fiscal period.

COPYING A ROW
You can quickly copy a cell on the grid from one cell to another cell or multiple cells. To
do so, enter an amount in a cell. When you select a cell, a small toolbar will appear with
options for copying, pasting, and adjusting. (If you do not see the small toolbar, select
Edit on the menu bar and select Quick Action Buttons to make it appear. You can also
select Copy, Paste, and Adjust from the Edit menu if you do not want to use the Quick
Action buttons.) After you enter the amount, click another cell to save the amount. Then
click the first cell again and click Copy. Then, select the cell that you want to paste the
amount into, and select Paste. The amount is copied. If you want to paste the amount into
multiple cells, click and drag the cursor over those fields. The cells will be highlighted in
blue to indicate they are selected. Then, click Paste. The amount will be pasted into all of
the selected cells.
You can also copy an amount into an entire row in the following way: select an amount,
and then click Copy on the small toolbar. Next, select Edit from the menu bar at the top of
the window. Then, choose Select, and Entire Row. The row will now be highlighted in
blue. Click Paste on the small toolbar in the grid.

COPYING A COLUMN
You can copy a column of your budget by using the Autofill button. Once you have
completed a column for a fiscal period, click the Autofill button.

Select Copy amounts from the open budget, and click Next. Then, complete the fields,
indicating that you want to copy from the completed column into another column. Then
click Finish.

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ADJUSTING AMOUNTS
You can adjust the amount of a single cell or many cells by using the Adjust option. To do
so, select the cell or cells that you want to adjust. You can select a single cell by clicking
it, or you can select an entire row, column, or even the entire budget by clicking and
dragging the cursor over the cells you want to adjust. Once you have highlighted the
amounts you want to adjust, click Adjust on the small toolbar. This will open the Adjust
Budget Amounts window.

Enter the dollar amount or percentage that you want to adjust the amounts by, and then
specify a rounding figure, if necessary. Finally, click OK. The amounts highlighted will be
adjusted.
If you want to adjust the amounts up, enter a positive number for the dollar amount or
percent; if you want to adjust the amounts down, enter a negative number.

ACTIVITY 5 - ENTERING BUDGETS


Budgets have been determined for the income and expense accounts used by the
company. Follow these steps to enter General Ledger account budget amounts:
1 Select Maintain from the menu bar, then Budgets.
2 Enter Budget in the Budget Name field.
3 Enter Abracadabra Budget in the Description field.
4 Find Account ID 40200-C. The budget for this account is the same each month.
You will enter a budget amount for January and copy the amount to the
remaining months.

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Entering Account Budgets

5 In the column for 1/31/08, enter an amount of 12,000.00. Press TAB to move to

the next field.


6 To copy this amount to the remainder of the fiscal periods for this year, click the
amount again to select it.
7 Click Copy from the small toolbar.
8 Select Edit from the menu bar at the top of the window.
9 Choose Select, then Entire Row. This will highlight the entire row for that
account.

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10 Click Paste on the small toolbar.

11 Using these steps as a guide, enter the budget amounts for these accounts.
Follow steps 5-10 for each account.

Account ID Description Budget

40200-P Design-Personal Site 6250.00

40400-C Programming-Commercial Site 2416.00

40400-P Programming-Personal Site 8000.00

40500-C Maintenance-Commercial Site 3750.00

40500-P Maintenance-Personal Site 1500.00

50000 Cost of Services Sold 6040.00

60100 Advertising Expense 2200.00

72000 Payroll Tax Expense 1200.00

75500 Photostat Expense 1600.00

76000 Printing and Copying Expense 1250.00

12 Click Save to save the budget.


13 Click Close when you are finished entering the budget.

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ACTIVITY 6 - COPYING AND ADJUSTING BUDGET


INFORMATION
The budget figures entered for fiscal year 2008 will be copied to fiscal year 2009 and
increased by 10%. To do this, follow the steps below.
1 Select Maintain, then Budgets. Select Budget in the Budget Name field.
2 To copy the budget figures from 2008 to 2009, select Autofill from the toolbar.
3 On the Edit a Budget window, select Copy amounts from the open budget.
4 Click Next.
5 Under Select the periods to copy, make sure that This Year appears, that the
From period is 1/1/08, and the To period is 12/31/08.
6 Under Select the periods to paste into, select Per Start (1/1/09).

7 Click Finish. The budget is copied and the amounts for 2009 appear.

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8 To adjust this budget, click Edit from the menu bar. Then choose Select, and
then All cells. This will highlight the entire budget.

9 On the small toolbar, click Adjust. This will open the Adjust Budget Amounts
window.
10 Enter 10.00 in the Adjust the amount by field, and use the drop-down to
change dollars to percent.

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Entering Account Budgets

11 Click OK. The budget will be adjusted.

12 Click Save to save the changes.


13 Click Close to close the window.

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S ETTING U P A CCOUNTS P AYABLE
................................... 4
A
ccounts Payable monitors the products received from vendors and
the money paid to vendors. You can set up payment terms, aging
guidelines, and more for each vendor. Information about your
vendors is entered through the Maintain Vendors window.
Purchases entered in Accounts Payable can update the quantities on hand in
Inventory and the costs tracked in Job Cost. Purchase expenses applied to a
job are available in Accounts Receivable as reimbursable expenses that can be
billed on a sales invoice. When transactions are posted in Accounts Payable,
the journals are updated. The journals in turn update the General Ledger. The
interaction between Accounts Payable and the other sections in Peachtree is
illustrated below:

A cco u nts
Payable

J ob C ost
I nv ento ry Acc ou nts
Rece iv able

Jo urn als

General
L ed ger

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Entering Vendor Defaults

ENTERING VENDOR DEFAULTS


........................................
To access the default information window for
vendors, select Default Information, Vendors from
the Maintain menu.

Vendor Defaults Window


The Vendor Defaults window is used to enter basic information that applies to most of
your vendors and purchase transactions. Each tab is described below:

P A Y M E N T T ER M S T A B
When you open the Vendor Defaults window, the Payment Terms tab appears. On this
tab are the Standard Terms section and the GL Link Accounts section. You can set up
standard payment terms that apply to the majority of the invoices that you receive from
your vendors. You also assign the General Ledger purchases discount account number,

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any discount allowances, and a standard credit limit for all vendors. When you change the
payment terms on this tab, the default terms for vendors that use standard terms change
automatically. Fields of interest are described below:

STANDARD TERMS
In the Standard Terms section, you select the terms method most often assigned to you
by your vendors. You will specify the following: the number of days extended to you for
paying your invoices, any discounts, and the amount of your standard credit limit.
Standard Terms are the default terms that apply to vendors. You can change standard
terms for each vendor when you set up the vendor in the Maintain Vendors window.

A C C O U N T AG I N G T A B
Select the Account Aging tab to enter account aging information. You select whether
your purchase invoices/vendor bills should be aged by invoice date or due date, and you
can specify the frequency that your payables age. This information is reflected on the
Aged Payables report and in the Payment Manager.

AGE INVOICES BY
Each invoice/bill and vendor balance appears on your aging report with the number of
days past due.

AGING CATEGORIES
The information in this section determines the aging of your invoices on the Aged
Payables report.

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CUSTOM FIELDS TAB


Peachtree allows you to customize up to five additional fields for maintaining information
on your vendors. Enter any field labels here.

1099 SETTINGS TAB


The settings on the 1099 Settings tab allow you to define the way Peachtree tracks and
reports payments made to 1099 vendors. For instance, the payments you make to an
independent contractor for services rendered should be reported as 1099 earnings. If you
make a payment to the same contractor to reimburse for materials, the payment should not
be reported as 1099 earnings. Fields of interest are described below:

• 1099 Settings: Choose the appropriate option for each account from the list below.
Check with your accountant for the appropriate option, which depends on the type of
1099 you need to produce.

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• Reset Default: Click this button to return all accounts to the default setting of Box 1 or
Box 7.

ACTIVITY 7 - ENTERING VENDOR DEFAULTS


Vendor defaults are used as the initial settings for new vendors. Therefore, these
settings should match the most common settings for your vendors. When vendors are
set up, you can override the default settings if necessary. Follow these steps to enter
vendor defaults:
1 Select Maintain, Default Information, Vendors.
2 Change the Credit Limit to 2500.00.
3 Enter an Expense Acct of 60000.
4 The correct Discount GL Account is assigned. Select the Account Aging tab.
5 In the Age Invoices by section, select the Invoice date option. This will make
invoices age based on the invoice date.
6 In the Aging Categories section, keep the default information.
7 Now, select the Custom Fields tab. You can enter customized labels for custom
fields. On each vendor record, you can enter text next to each custom field label
to store additional information about the vendor.
8 Change Field Label 3 to Business Hours.
9 Click OK to save the defaults.

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Adding Vendors

ADDING VENDORS
........................................
After entering the vendor default information, the next step is to enter
each vendor. As you add vendors, you can use the default
information that was entered or change the information for specific
vendors. To add or edit vendors, select Maintain, Vendors.

Maintain Vendors Wi ndow


The Maintain Vendors window is used to enter, change, and store information about the
people and companies from whom you purchase products and services. Each tab is
described below:

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HEADER FIELDS
• Vendor ID: Identifies the vendors in lookup lists, transactions, and reports. Once an ID
is saved, you can click Change ID to make changes. This field can be used to select or
sort vendors for payment and report processing. Using the first few characters of this
field, you can create groups of vendors by using the same characters. In the following
example, 01 is used to designate office supply vendors; 02, vendors from whom
inventory is purchased, and 03, utility vendors.

Vendor ID Vendor Name

01compus Comp USA

01office Office Depot

02amazon Amazon.com

02barnes Barnes & Noble

03south Bell South

03gapower Georgia Power

• Name: Enter the name as it should appear on transactions and reports.

GENERAL TAB
Enter information specific to each vendor--such as the vendor’s name, address, 1099
information, and telephone numbers--on the General tab. Fields of interest are described
below:
• Account #: Enter the account number that this vendor has assigned to your company.
This information will be entered automatically in the Memo field on payments.
• Vendor Type: This case-sensitive field can be used to filter records for reporting
purposes. It will keep track of all values used by the system for this field, so you can
select from a drop-down list in addition to simply typing in the value you want.
• 1099 Type: If you will be printing a 1099 form at the end of the calendar year for this
vendor, select one of the available 1099 types.
• Current Balance: If the record has a current balance, the amount will display here. To
see the list of individual invoices that make up the balance, click the balance amount
link.
The Current Balance will not appear until the vendor record is saved.

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A D D R E SS E S T A B
Use the Addresses tab to keep track of remit to addresses for this vendor. You can also
select addresses to use as defaults for Payments, Purchase Orders, and Shipments.

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H I S T O RY T A B
Select the History tab to view purchases, payments, and last payment information. You
can also enter beginning balances here.

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PURCHASE INFO TAB


Purchasing information--such as the purchase rep, tax ID numbers, and shipping terms--is
entered on the Purchase Info tab. Fields of interest are described below:

• Purchase Rep: Select an employee who is the purchasing representative for this
vendor.
• Tax ID #: Enter your vendor’s tax number if you plan to send a 1099-MISC or 1099-
INT form.
• Terms: The current terms settings appear here. Click the arrow button to change the
terms. To override the default terms, select Customize terms for this vendor from the
drop-down list. Then, change the settings as needed.
• Form Options: Use this box to select whether or not the vendor will automatically be
sent a paper form or an e-mail when creating a Purchase Order. You can also have
Peachtree automatically send a copy to the Purchase Rep.
• Replace Item ID with: You can specify if you want inventory Item IDs printing on
forms or whether or not you want to replace the Item ID with either the UPC/SKU or
Part Number for this vendor.

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INSURANCE TAB
You can keep track of insurance information on your subcontractors with this tab.

ACTIVITY 8 - ADDING VENDORS


Abracadabra’s vendors not only include those the company buys products from, but
also government agencies and its bank. In the interest of time, some fields will
remain blank. You can always update the vendor records at a later time. Follow these
steps to enter vendors:
1 Select Maintain, Vendors.
2 Enter 03garev in the Vendor ID field. Enter Georgia Department of Revenue in
the Name field.
3 Enter the Mailing Address:

P.O. Box 33356


Atlanta, GA 30090
4 Enter an Expense Acct of 23100.
5 Enter 404-667-0112 for Telephone 1.

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6 Select the Purchase Info tab.


7 In the Terms and Credit box, click the drop-down arrow and select Customize
terms for this vendor.
8 Select the Due on day of next month option.
9 Enter 20 in the Due on the __ next month field.
10 Enter 0 in the Discount in __ days field.
11 Enter 0.00 in the Discount Percent field.
12 Enter a Credit Limit of 0.00.
13 Click Save & New to add the vendor and clear the fields for the next vendor.
14 Select the General tab to add the next vendor.

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15 Using these steps as a guide, add the following vendors. Remember to click
Save & New to add each vendor:

Vendor #1 Vendor #2 Vendor #3

Vendor ID 02levit 01comp 01copy

Calvert Copyright
Name Levit Utility Computers R Us
Services

564 Cowart St. 111 Main St. 554 Ashford Center


Address
Atlanta, GA 30091 Marietta, GA 30188 Atlanta, GA 30127

Expense
78000 60000 50000
Acct

Telephone
404-766-8876 770-555-5827 404-555-5264
1

Net due in 15 days


Terms with no discount and Default Terms Default Terms
no credit limit

16 Using these steps as a guide, add the remaining vendors. Remember to click
Save to add each vendor and New to add the next vendor:

Vendor #4 Vendor #5 Vendor #6

Vendor ID 03national 03lease 01shirt

National Bank of
Name Peachtree Leasing Ocean Breeze Outlet
Atlanta

11000 Peachtree St. 4026 Peachtree St. 123 Joyner Lane


Address
Atlanta, GA 30309 Atlanta, GA 30309 Atlanta, GA 30030

Expense
62000 74000 12000
Acct

Telephone 1 404-555-5174 404-555-2321 404-555-4243

Terms Default Terms Default Terms Default Terms

17 Click Close when you are finished.

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Entering Vendor Beginning Balances

ENTERING VENDOR BEGINNING BALANCES


........................................
Beginning balance invoices are vendor invoices that are outstanding as of the date you
began to use Peachtree. Since these bills were recorded to the appropriate accounts in
your previous accounting system, they should not affect the General Ledger in Peachtree.
The balance of the Accounts Payable account in the General Ledger should equal the total
amount of the vendor beginning balances as long as no other payable transactions have
been made.

Vendor Beginning Balances Window


The Vendor Beginning Balances window is used to enter information regarding
outstanding purchase invoices/bills you have not entered in Peachtree. Each tab is
described below:

VENDOR BALANCES TAB


This tab displays your list of vendors and amounts. If you want to adjust beginning
balances for a vendor, double-click the vendor’s name.

PURCHASES FROM TAB


The Purchases From tab is used to enter information for each beginning balance invoice.
Beginning balances are not posted to the General Ledger. However, you should enter an
Accounts Payable account in the right-hand column to ensure that the program will

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decrease the Accounts Payable account balance when the payment is made for the
invoice. Fields of interest are described below:

• Invoice Number: Enter the number that identifies the outstanding invoice.
• Purchase Order Number: If a purchase order is related to the invoice, enter the
number in this field.
• Amount: Enter the dollar amount of the invoice.
• A/P Account: Enter the account that this invoice’s value is tracked in. If your company
uses the cash-basis accounting method, this field will not be available.

ACTIVITY 9 - ENTERING VENDOR BEGINNING BALANCES


Abracadabra Web Services has outstanding invoices with a few of its vendors. These
invoices were received prior to February 1, 2008, and are already reflected in the
balances of the General Ledger accounts. Each invoice needs to be entered as a
vendor beginning balance to show it as an aged payable and allow you to pay the
invoices in the future. Follow these steps to enter these vendor beginning balances:
1 Select Maintain, Vendors.
2 Select the History tab.
3 Select the Vendor Beginning Balances button to display the Vendor
Beginning Balances window.

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4 Enter the following outstanding invoices for Calvert Copyright Services. To do


so, click 01copy on the Vendor Balances tab. Then select the Purchases from
tab.

Invoice Number Date Amount A/P Account

4321 1/17/08 30.00 20000

4359 1/18/08 30.00 20000

4598 1/28/08 30.00 20000

5 Click Save, then select the Vendor Balances tab to choose another vendor that
has beginning balance invoices.
6 Choose Computers R Us by double-clicking. The Purchases from tab appears
for Computers R Us.
7 Enter the following outstanding invoice for Computers R Us. There is no
Purchase Order associated with this invoice, so that field will remain blank:

Invoice Number Date Amount A/P Account

9884 12/6/07 8917.00 20000

8 Click Save, and then click Close on the window when you are finished.
9 To see the Aged Payables report, select Reports from the toolbar on the
Maintain Vendors window.
10 Select Aged Payables. Notice that the vendor bills are aged by invoice date, as
of the end of February 2008.
11 Click Close on each window when you are finished.

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S ETTING U P I NVENTORY
................................... 5
I
nventory stores and tracks information about the products and services
your company purchases and sells. This information includes cost of
goods sold, stock levels, minimum levels, sales prices, and more.
Information about your inventory items is entered through the Maintain
Inventory Items window.
Even a service company could make use of some features in Inventory. For
example, there are six types of inventory items that are not traditional stock
items and could be used to simplify transaction entry.
Inventory information is updated each time an inventory-related Accounts
Payable or Accounts Receivable transaction is posted. Inventory items can be
allocated to a job to update Job Cost. When transactions are posted that affect
Inventory, the journals are updated. The journals in turn update the General
Ledger. The interaction between Inventory and the other sections in Peachtree
is illustrated below:

I nv en to r y

Ac counts Job Cost


Paya ble Acc ounts
Rec eiv ab le
Jo urn als

General
L ed ger

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Entering Inventory Defaults

ENTERING INVENTORY DEFAULTS


........................................
In Inventory Items Default Information, the three
General Ledger accounts used by most inventory
items are defined. These accounts are the default
sales, inventory or expense, and cost of goods sold
accounts. The sales tax types and the shipping
methods for inventory are also entered. To access the
default information window for inventory items,
select Default Information, Inventory Items from
the Maintain menu.

Inventory Item Defaults Window


The Inventory Item Defaults window is used to enter basic information that applies to
most of your inventory items. Each tab is described below:

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GENERAL TAB
When you select the Inventory Item Defaults window, the General tab appears. On this
window, you can specify to allow duplicate numbers for UPC/SKU and Part Numbers.

ORDERING TAB

Quantity Available
• Include purchase orders when calculating the quantity available: Select this check
box to include items on purchase orders when calculating quantity available.

SALES INVOICE/RECEIPT OUT OF STOCK WARNING MESSAGE


Choose one of the three options regarding a notice about items that are out of stock when
you select them in Sales Invoicing or Receipts.

SALES ORDER/PROPOSAL OUT OF STOCK WARNING MESSAGE


Choose one of the three options regarding a notice about items that are out of stock when
you select them in Sales Order and Proposal entry.

AUTO CREATION OF PURCHASE ORDERS


Select which options you want enabled to auto create purchase orders when quotes, sales
orders, or invoices are created. For more information on this feature, see the Peachtree
Quantum 2009 Advanced Self-Study Guide.

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GL ACCTS/COSTING TAB
On the GL Accts/Costing tab you specify several GL accounts for various types of
inventory items. The default freight account is also selected on this window. You can
change information for individual items when they are added through Maintain
Inventory Items. Each field on this tab is described below:

GENERAL LEDGER ACCOUNTS AND COSTING


• Item Class: Each inventory item is assigned to an item class that defines the way the
inventory item is used in Peachtree. Quantity on hand and cost are tracked for stock
and assembly items only. There are a variety of item classes available to encompass the
needs of many different kinds of businesses. Each item class is described below:
- Stock item: The traditional inventory item that is bought and sold. Quantities, costs,
vendors, minimum stock levels, and other values are tracked for stock items.
- Master Stock item: A special item that does not represent inventory you stock but
rather contains information shared with a number of substock items generated from
it. Once you generate a master item and specify its primary and secondary
attributes, Peachtree will create the substock items automatically.
- Serialized Stock Item: An item that must have a serial number associated with it
and the serial number must be specified whenever the item is purchased, sold, or
adjusted into or out of inventory. Costing for this type of item is specific to the
individual item.

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- Non-stock item: This is an item that is not normally stocked. Quantities,
descriptions, and unit prices are printed on invoices, but quantities on hand are not
tracked.
- Description only: This item class is used when you want to print text on the
invoice. For example, a warranty disclaimer could be entered with this item class;
and when an invoice is created, you would enter the warranty Item ID to print it on
the invoice.
- Service: This item class is used to simplify entry of services paid for by your
company or sold to a customer.
- Labor: This item class is used to simplify entry of labor paid for by your company
or sold to a customer. This class can also be used to track labor cost associated with
assemblies.
- Assembly: This item class consists of two or more inventory items that are grouped
together and sold as one unit. The components of the assembly are entered on the
Bill of Materials tab. Quantities, costs, and other values are tracked for assembly
items.
- Serialized Assembly: Items assigned this item class are assembly items in that they
are built from other inventory items, but they are also assigned a serial number at
the time of assembly, and this number must be specified when the item is sold.
- Activity Item: Items assigned this item class are used on employee or vendor time
tickets when recording time spent performing services for a customer, for a job, or
for internal administrative work. Use activity items when you plan to bill customers
for reimbursable payroll expenses in sales/invoicing.
- Charge Item: This item class is used for expenses recorded by an employee or
vendor on expense tickets when expenses are incurred for a customer or job. Charge
Items are also used to record administrative tasks within the company and employee
out-of-pocket reimbursable expenses. Use charge items when you plan to bill
customers for reimbursable expenses recorded on expense tickets in
Sales/Invoicing.
For each Item Class, select the most common General Ledger accounts to be used in the
sale and purchase of inventory items. Some fields are dimmed and inaccessible for certain
item classes. For example, you cannot enter General Ledger accounts for Description only
items because no accounting is tracked for this item class.
• GL Sales/Inc: Enter the income account to be credited for the sales price amount when
the item is sold.

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• GL Invtry/Wage: Enter the inventory account to be debited for the purchase cost when
you purchase stock items or build assembly items. This account will be credited for the
compound cost when the item is sold.
For non-stock, service and labor items, enter the salary or wage expense account or
other expense account to be debited when the item is purchased. This account will be
credited for the expenses when the item is sold. The sale of non-stock, service, and
labor items will then reclassify the expense associated with the item from the original
GL Salary/Wage or other expense account to the GL Cost of Sales account.
• GL Cost Sales: Enter the cost of goods sold account that will be debited for the cost
when the item is sold.
• Costing: Enter the costing method for stock and assembly items. Peachtree tracks the
cost of goods sold based on the costing method chosen for stock and assembly items
only.

GL FREIGHT ACCOUNT
Enter the account to which customer freight charges will be posted.

T A XE S / S H I PP I N G T A B
On the Taxes/Shipping tab, define whether your tax types are taxable or tax exempt. In
the Ship Methods list, enter the different shipping methods that you will select from
when you enter transactions for your customers and vendors.

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CUSTOM FIELDS TAB
Peachtree allows you to customize up to five additional fields for maintaining information
about your inventory items.

P R I C E L E V EL S T A B
On the Price Levels tab you may set up price levels according to your needs. Price levels
provide a way for you to charge different prices to different customers. For instance, you
can assign a price level to each customer to ensure accurate pricing. There are ten price
levels that can be set up with any description you need. For Price level 1, you can choose

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to have the program calculate the price based on the last cost recorded. In addition, for
Price Levels 2 through 10, you can base the calculation on Price Level 1.

Level Name: Enter a description of up to 14 characters that describes the pricing; for
example, Distributor, Warehouse, Retail.
Default Calculation: The text shown in this box is the result of what has been chosen in
the Edit option.
Edit: Click the Edit button to open the Default Price Level Calculation window. Here,
you can set up the options for calculating sales prices.
- Use: The options found in this field will differ based on which Price Level you are
editing.
- Price Level 1: Not available when calculating Price Level 1, this option can be
chosen for Price Level 2 through Price Level 10. Use it when you want to base
the calculation on the price used for Price Level 1.
- Last Cost: Used for any level, choose this option to base the calculation on the last
cost for the item.
- No Calculation: Select this option if you prefer to enter a specific price rather than
use a calculation. When chosen, the next three fields become unavailable for use.
- And: Select to increase or decrease the amount by either a percent or an amount.
Then, indicate the amount or percent in the following field.
- Round Price: You have three options for rounding the sales price.

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- No Rounding: If you choose this option, the prices will be set exactly as
calculated.
- Specific Cent: Choose this option to indicate the exact cent you want the price
to round up to. Another field appears that allows you to enter the cent amount.
- Next Dollar: Select this option and the program will round the price up to the
next dollar.

ACTIVITY 10 - SETTING UP INVENTORY ITEM DEFAULTS


Inventory defaults are used as the initial settings for new inventory items. Therefore,
these settings should match the most common settings for your inventory items.
When inventory items are set up, you can override the default settings if necessary.
Shipping methods used in Accounts Receivable and Accounts Payable transactions,
as well as the freight account used for customer invoices, are also entered as part of
inventory defaults. Follow these steps to enter inventory defaults:
1 Select Maintain, Default Information, Inventory Items.
2 On the Ordering tab, you specify settings for each inventory item. Click the
Ordering tab.
3 For Sales Invoice/Receipt Out of Stock Warning Message, select Warn if
inventory item is out of stock based on quantity on hand.
4 For Sales Order Out of Stock Warning Message, select Warn if inventory
item is out of stock based on quantity on hand.
5 Not all of the General Ledger accounts necessary for the inventory items were
added to the chart of accounts earlier. So, we will add them “on the fly.” On the
GL Accts/Costing tab, find the GL Sales/Inc. account field for the Stock Item.

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Click the magnifying glass in this field. Locate the toolbar at the bottom of the
lookup window, and click New.

6 This opens the Maintain Chart of Accounts window on which you can add the
new accounts. Add the following accounts. Remember to click Save & New
after adding each account:

Account ID Description Account Type

40600-C Book Sales-Commercial Income

40600-P Book Sales-Personal Income

40700-C Accessory Sales-Commercial Income

40700-P Accessory Sales-Personal Income

7 Change the following accounts:

Account ID Current Description New Description

50500 Cost of Goods Sold #2 Cost of Goods Sold Books

51000 Cost of Goods Sold #3 Cost of Goods Sold Accessories

8 After saving the changes, click Close. You will return to the Inventory Item
Defaults window on which you can continue.

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9 Enter the following accounts for the different types of inventory items sold:

GL GL GL
Sales/ Invtry/ Cost
Item Class Inc. Wage Sales Costing

Stock item 40600-C 12000 50500 FIFO

Master Stock item 40600-C 12000 50500 FIFO

Serialized Stock Item 40600-C 12000 50500 Specific

Non-stock item 40700-C 60000 51000

Description only

Service 40000 77500 50000

Labor 40000 77500 57000

Assembly 40000 12000 50000 FIFO

Serialized Assembly 40600-C 12000 50500 Specific

Activity item 40000

Charge item 41000

10 Select the Taxes/Shipping tab.


11 The Item Tax Type fields should show Field 1 with a Description of Regular
with the Tax check box selected and all other fields with a Description of
Exempt with the Tax box cleared. If this is the case, leave the settings as they
are.
If this is not the case, change the Description for Field 1 to Regular and check
the Tax box. Ensure that all other fields have a Description of Exempt and have
the Tax check box cleared.
12 Select the Custom Fields tab.
13 Select the Enabled check box for Field Label 4.
14 For Field Label 4, enter Special Order.
15 Select the Price Levels tab.
16 For Price Level 1, change the Level Name to List Price.
17 Click the Edit button.

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18 Select Last Cost, Increase by Percent, and Specific Cent from the drop-down
lists.
19 Enter 50.00 in the % field and 0.99 in the Round Price field. Click OK.

20 For Price Level 2, change the Level Name to Personal.


21 Click the Edit button.
22 Select List Price, Decrease by Percent, and No Rounding from the drop-
down lists.
23 Enter 10.00 in the % field and click OK.
24 For Price Level 3, change the Level Name to Commercial.
25 Click the Edit button.
26 Select List Price, Decrease by Percent, and No Rounding from the drop-
down lists.
27 Enter 25.00 in the % field and click OK.
28 Click OK to save the defaults.

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ADDING INVENTORY ITEMS
........................................
After entering the inventory item default information, the next step is
to enter each item. As items are added, you can use the default
information that was entered or you can assign different information.
To add or edit inventory items, select Maintain, Inventory Items.

Maintain Inventory I tems Window


The Maintain Inventory Items window is used to enter, change, and store information
on the products and services you purchase and sell. Each tab is described below:

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HEADER FIELDS
• Item ID: Identifies the inventory item in lookup lists, transactions, and reports. Once
an ID is saved, you can click Change ID to make changes.
• Description: Enter a brief description of the item. This description appears in the Item
lookup list on transaction windows.
• Item Class: Select an item class from the drop-down list. Every inventory item will fall
under one of the classes defined earlier in the chapter.
Different fields will appear for each inventory class. Once an item has been saved, the
Item Class field cannot be changed.

GENERAL TAB
Information specific to each inventory item is entered on the General tab. Depending on
the item class of the inventory item, some fields may not be available on the General tab.
Beginning balances are also entered and maintained on the General tab. Fields of interest
are described below:
• Description for Sales/for Purchases: Enter two descriptions per item, one for sales
and another for purchases. The sales description for this item will appear when you
enter quotes, sales orders and invoices. The purchase description for an item appears
when purchase orders and purchases are entered.
• Price: Enter the sales price for the inventory item. To enter additional price levels,
click the arrow button to open the Multiple Price Levels window. These price levels
will correspond with those assigned to your customers.
• Last Unit Cost: For stock and assembly items, enter the last purchase price paid for
the item. Once a beginning balance or transaction is entered using this item, this field is
updated by Peachtree. For non-stock, service, and labor items, enter the Cost of Sales
amount that should be posted when the item is sold.
• Cost Method: Select one of the three available costing methods from this drop-down
list. Choices include FIFO, LIFO, and Average. The cost method cannot be changed
after the inventory item has been saved. This field will show only for stock and
assembly inventory items.
- Average Cost: When an item using Average Costing is sold, Peachtree uses the
average cost of the item to calculate the cost of goods sold. The cost of goods sold
amount is the average cost multiplied by the quantity of the item sold.
- FIFO: Using the First In First Out method, inventory is valued with the assumption
that items are sold in the order in which they are received. The oldest cost of an item
is the first cost to be used to calculate the value of the item.

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- LIFO: Using the Last In First Out method, inventory is valued with the assumption
that items are sold in the reverse order in which they are received. The newest cost
of an item is the first cost to be used to calculate the value of the item.
• Item Type: This case-sensitive field can be used to filter records for reporting
purposes.

CUSTOM FIELDS TAB


The Custom Fields tab contains the custom field labels entered through default
information. Enter information specific to each inventory item in these fields.

If a field label is dimmed, then the field is not available, and you cannot enter information
in the field. To make the field available, return to the Custom Fields tab in Inventory
Item Defaults and select the Enabled check box for that field label.

H I S T O RY T A B
Select the History tab to view the inventory item history information. Changes cannot be
made on this window. This window displays the period history date and for that date the
number of units sold, dollar sales, number of units received, and total costs for the
selected item.

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ACTIVITY 11 - ADDING ITEMS


Abracadabra sells books related to the Internet to its customers. Follow these steps to
enter items:
1 Select Maintain, Inventory Items.
2 Enter an Item ID of bintro1.
3 The Description for this item is Introduction to the Internet.
4 Select Stock item for the Item Class.
Once the item is saved, the Item Class cannot be changed.
5 Select the Subject to Commission check box so that a sale of the item shows as
commissionable on the Sales Rep Reports.
6 Enter a Description for Sales of Introduction to the Internet, a New User Guide
to Getting Started on the Internet.
7 Click the drop-down arrow next to for Sales and select for Purchases from the
drop-down list. This refreshes the box to the right so you can enter a
Description for Purchases for the item.
8 Enter a Description for Purchases of Introduction to the Internet, ISBN
0024876315.

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The Description for Sales will print on sales transactions, while the Description for
Purchases will print on purchase transactions.
9 Click the arrow button to the right of the List Price field.
10 Enter 33.59 in the Price field for the List Price level.
11 Enter 30.59 in the Price field for the Personal level.
12 Enter 25.49 in the Price field for the Commercial level.
13 Click OK to return to the item window.
14 Now, enter the following accounts:

GL Sales Account 40600-P

GL Inventory Acct 12000

GL Cost of Sales Acct 50500

15 Books are taxable, so the Item Tax Type should be set to 1.


16 Enter Each in the Stocking U/M field. Leave the Item Type and Location
fields blank.
17 Enter 5.00 for both the Minimum Stock and Reorder Quantity.
18 Select 01comp from the Preferred Vendor ID lookup list.
19 Click Save, then click New.

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20 Using these steps as a guide, enter the second stock item.

Item ID bsurf1

Description Surfing the Net

Item Class Stock item

Subject to Commission Selected

Surfing the Net, an Intermediate


Description for Sales
Guide to the Internet

Description for Purchases Surfing the Net, ISBN 0856732840

List Price 36.99

Personal 33.29

Commercial 27.74

GL Sales Acct 40600-C

GL Inventory Acct 12000

GL Cost of Sales Acct 50500

Item Tax Type 1

Stocking U/M Each

Minimum Stock 5.00

Reorder Quantity 5.00

Preferred Vendor 01comp

21 Click Save to add the stock item, then click Close.

ACTIVITY 12 - ADDING SERVICE ITEMS


Web sites are programmed and maintained by Abracadabra. To make transaction
entries easier, you will set up these service items in inventory. Each service item will
have a description, accounts, and a sales price assigned, simplifying data entry.
Follow these steps to enter service items:
1 Select Maintain, Inventory Items.
2 The first service Item ID is htmlprogp.
3 The Description is HTML Programming-Personal.
4 The Item Class is Service.

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5 Sales of services are not commissionable, so do not check the Subject to
Commission box.
6 In the Description for Sales enter HTML programming for personal web site.
Since the service is not purchased, there is no Description for Purchases.
7 Enter 35.00 in the List Price field.
8 Click the arrow button to the right of the List Price field.
9 Enter 31.50 in the Price field for the Personal level.
10 Enter 26.25 in the Price field for the Commercial level.
11 Click OK to return to the item window.
12 Leave the Last Unit Cost field zero.
13 Enter the following General Ledger accounts:

GL Sales Account 40400-P

GL Salary/Wages Account 77500

GL Cost of Sales Acct 50000

If the Last Unit Cost field is left zero, only the sales account will be affected when the item
is sold.
14 Since this is a non-taxable service, select an Item Tax Type of 2.
15 Enter Hour in the Stocking U/M field.
16 Click Save; then click New.

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17 Using these steps as a guide, enter the remaining service items. Remember to
click Save to add each item and New to add the next item:
18 Click Close when you are finished.

Service Item #1 Service Item #2

Item ID htmlprogc webmaintp

Description HTML Programming-Commercial Web Site Maintenance

Item Class Service Service

HTML programming for


Description for Sales Maintenance for personal web site
commercial web site

List Price 45.00 60.00

Personal 40.50 54.00

Commercial 33.75 45.00

GL Sales Acct 40400-C 40500-P

GL Salary/Wages Acct 77500 77500

GL Cost of Sales Acct 50000 50000

Item Tax Type 2 2

Stocking U/M Hour Hour

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ENTERING INVENTORY BEGINNING BALANCES
........................................
Click the Beginning Balances arrow on the General tab to enter beginning balances for
inventory. The total beginning balances amount should equal the amount entered as the
beginning balance in the General Ledger inventory account. Inventory beginning balances
can be updated until the fiscal year is closed.

Inventory Beginning Balances Window


Enter information regarding the current quantity on hand and cost of each inventory item
in the Inventory Beginning Balances window.

ACTIVITY 13 - ENTERING INVENTORY BEGINNING BALANCES


Abracadabra’s book inventory was counted at the end of January. This count will be
used to enter the beginning balances for inventory. Follow these steps to enter
inventory beginning balances:
1 Select Maintain, Inventory Items.
2 Click the Beginning Balances arrow button on the General tab.
3 Click bintro1 in the list of items shown.
4 Enter a Quantity of 10.00 and a Unit Cost of 22.00.
5 Click bsurf1 in the list of items shown.
6 Enter a Quantity of 12.00 and a Unit Cost of 24.00.
7 Click OK to save these two beginning balances; then click Close.

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S ETTING U P A CCOUNTS R ECEIVABLE
................................... 6
A
ccounts Receivable monitors the products and services sold to
customers and the money received from customers. You can set up
payment terms, aging guidelines, and more for each customer.
Information about your customers is entered through the Maintain
Customers window.
Sales entered in Accounts Receivable can update the quantities on hand in
Inventory and the revenue tracked in Job Cost. Expense Tickets, Time Tickets,
and job-related Accounts Payable expenses are available for billing on a sales
invoice. When transactions are posted in Accounts Receivable, the journals
are updated. The journals in turn update the General Ledger. The interaction
between Accounts Receivable and the other sections in Peachtree is illustrated
below:

A cco un ts
A cco u nts Paya ble
Rece iva ble

E xp en se Ti me
Ti ck ets Tick ets
I nv en to r y

J ob C ost

J ou rna ls

General
L edg er

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Entering Customer Defaults

ENTERING CUSTOMER DEFAULTS


........................................
To add, edit or view customer default information,
select Default Information, Customers from the
Maintain menu.

Cust omer Defaul ts Window


The Customer Defaults window stores basic information that applies to most of your
customers and sales transactions. Each tab is described below:

TERMS AND CREDIT TAB


This tab controls the standard payment terms for invoices sent to customers, establishes
the General Ledger discount account number, and discount allowance percentages. You
can also set the default credit limit that applies to all customers. In addition, you can set a
default credit status that will control how Peachtree handles your customers. Changes

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made on this window affect all customers using standard terms. Each field on this tab is
described below:

A C C O U N T AG I N G T A B
Select the Account Aging tab to access aging information. The information in these fields
is used to age sales invoices.

CUSTOM FIELDS TAB


Peachtree allows you to customize up to five additional fields for maintaining information
about your customers.

F I N AN C E C H A R G E S T A B
Select the Finance Charges tab to enter customer finance charge information. You can
set up default parameters for all customers and elect not to calculate charges for individual

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customers. Finance charges are calculated by multiplying the number of days past due by
the daily finance charge rate, then by the outstanding invoice amount. Fields of interest
are described below:

• On invoices: Enter the number of days beyond the invoice date or due date that an
invoice needs to be before finance charges are applied. A finance charge calculates
from the first day the invoice is overdue, but the charges are not applied until the grace
period expires.
• days overdue, up to: $: Enter the amount that divides different annual interest rates.

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Pay Methods Tab
Peachtree allows you to define up to ten payment methods. To define your payment
methods, select the Pay Methods tab. The payment methods you enter here appear on the
transaction windows. Fields of interest are described below:

• Assign Deposit Ticket IDs: Choose one of these radio buttons to indicate how you
would like to track deposit tickets.
- In Receipts: Select this button to assign the IDs for your deposits as you enter
receipts from customers or vendors. Peachtree will automatically enter the current
system date in the Deposit Ticket ID field in Receipts.
- In Select for Deposit: Choose this button to assign the IDs for deposits when
running the Select for Deposit process. If you select this option, Peachtree will leave
the Deposit Ticket ID field in Receipts blank.

ACTIVITY 14 - ENTERING CUSTOMER DEFAULTS


Customer defaults are used as the initial settings for new customers. Therefore, these
settings should match the most common settings for your customers. When
customers are set up, you can override the default settings if necessary. Follow these
steps to enter customer defaults:
1 Select Maintain, Default Information, Customers.
2 Enter 0 in the Discount in __ days field
3 Enter 0.00 in the Discount % field.
4 In the GL Link Accounts section, enter account 40500-C for the GL Sales
Account and account 49000 for the Discount GL Account.

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5 Select the Custom Fields tab and enter Monthly Service? for Field Label 1.
6 Clear the Enabled check box for Field Labels 3 and 4.
7 Select the Finance Charges tab.
8 Select the Charge finance charges check box. Then, enter the following
finance charge information in the appropriate fields:

On invoices 15

days overdue, up to: 10000.00

Annual interest rate: 21.00

On balances above that: 22.00

Minimum finance charge: 2.00

9 The Finance Charge GL Account selected is appropriate.


10 The finance charges will appear as Late Charge on invoices and statements.
11 Select the Print finance charge warning message as check box.
12 Select the Pay Methods tab and enter the following payment methods. They are
listed from the most common to the least common. Leave the last 4 Payment
Methods blank:

Field Payment Method

1 Cash

2 Check

3 AMEX

4 Discover

5 Mastercard

6 Visa

13 Click OK to save the customer defaults.

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SETTING UP SALES TAXES
........................................
To add or edit sales taxes, select Sales Taxes from
the Maintain menu. This will open the Sales Tax
Wizard.

Using the Sales Tax Wizard, you will create your sales tax agencies and sales taxes. Sales
tax agencies are the tax rates for individual governmental agencies. A sales tax is a group
of one or more sales tax agencies. When you enter an invoice for a customer, the sales tax
is used to calculate sales tax. The Taxable/Exempt Sales report shows taxes collected per
agency.

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Setting Up Sales Taxes

Setting up a New Sales Tax


Once you have started the Sales Tax Wizard, select Set up a new sales tax and click
Next. This will open the Set Up New Sales Tax window. Enter the appropriate
information and click Next. Fields of interest are described below:

• What is the total rate that you will charge?: Enter the total of the tax rate. If this tax
rate is made up of, for instance a state tax of 4% and a county tax of 2%, enter 6 here. If
the rate is based, in whole or in part, on a formula, leave this field blank.
• How many individual rates make up this total rate?: Enter here the number of
agencies that will make up this tax rate. If this tax rate is made up of, for instance, a
state tax and a county tax, enter 2 here.

Add Sales Tax Agency


Next, you will add the sales tax agencies that make up this tax. You will create or select
the same number of agencies as the number that you entered in the How many individual
rates make up this total rate field in the previous screen. Enter the appropriate

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information and click Next. Repeat the process as necessary to create or select all tax
agencies for this tax. Fields of interest are described below.

To select an existing sales tax agency for a new tax, simply click the arrow next to the
Sales tax agency ID field and select the existing agency from the list.
• How are taxes collected for this agency?: Select by single rate if the tax is a flat
percentage. Select by formula if the rate is based on a formula. If you select by
formula, Peachtree will provide additional fields for you to enter the formula
information.
• Which amount should be used to calculate sales taxes?: This field will appear if you
selected by Formula. Select total taxable sales if the rate is based on the total of all
taxable sales on the invoice. Select each taxable line item if the rate is based on a limit
for each line item in the invoice.

Sales Tax Entered


When you are done creating agencies for your new sales tax, you will see the Sales Tax
Entered window. Complete the fields at the top to create the sales tax. This is the ID and

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Setting Up Sales Taxes

Description that will be available on customer records and sales transactions. When you
are done, click Finish to save the new sales tax.

ACTIVITY 15 - SETTING UP SALES TAXES


Abracadabra conducts business in two Georgia counties. The sales taxes will include
the sales tax for both counties, Georgia state, and public transportation. Follow these
steps to set up sales taxes:
1 Select Maintain, Sales Taxes.
2 Select Set up a new sales tax and click Next.
3 Enter 6 in the What is the total rate that you will charge? field.
4 Enter 3 in the How many individual rates make up this total rate? field.
5 Click Next.
6 Enter GA in the Sales tax agency ID field.
7 Enter Georgia in the Sales tax agency name field.
8 Select 03garev from the Which vendor do you send the taxes you’ve
collected to? lookup list.

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9 In the How are sales taxes calculated for this agency? field, leave it set to by
single rate.
10 Enter 4.00 in the Rate field.
11 Enter account 23100 in the Select an account to track sales taxes field. When
sales tax is charged, the amount will be tracked in this account.
12 Click Next.
13 Using these steps as a guide, enter the remaining sales tax agencies. All are
single tax rates. Remember to click Next to add each agency:

Agency #1 Agency #3

Sales tax agency ID Cobb MARTA

Sales tax agency name Cobb County Public Transit

Which vendor do you send the taxes to? 03garev 03garev

Rate 1.00 1.00

Select an account to track sales 23100 23100

14 Enter Cobb in the Sales Tax ID field.


15 Enter a Sales tax name of Cobb County.
16 Freight charges are not taxable in Georgia, so leave the Do you charge sales
tax on freight field set to No.
17 Click Finish to save the new tax and sales tax agencies.
18 To continue setting up sales taxes, click Next at the opening screen of the Sales
Tax Wizard.

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Setting Up Sales Taxes

19 Use the table below to set up a sales tax for Fulton county. Note that you can
select existing agencies using the drop-down on the Sales tax agency ID field.
20 To select from a list of sales tax agencies, right-click the first line in the ID
column.

What is the total rate that you will charge? 6

How many individual rates make up this total rate? 3

Sales tax agency 1 GA

Sales tax Agency 2 MARTA

Sales tax agency 3 Fulton

Sales tax agency name Fulton County

Which vendor do you send the taxes to? 03garev

Rate 1.00

Select an account to track sales 23100

Sales Tax ID Fulton

Sales tax name Fulton County

Do you charge sales tax on freight? No

21 Click Finish.
22 Then select Close the sales tax wizard, and then Finish.

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ADDING CUSTOMERS
........................................
After entering customer default information and sales tax
information, the next step is to enter each customer. As you add
customers, you can use the default information or change the
information for specific customers. To access the Maintain
Customers/Prospects window, select Customers/Prospects from
the Maintain menu.

Maintain Customers/Prospects Window


The Maintain Customers/Prospects window is used to enter, change, and store
information on the people and companies to whom you sell products and services. Each
tab is described below:

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Adding Customers

HEADER FIELDS
• Customer ID: Identifies the customer in lookup lists, transactions, and reports. Once
an ID is saved, you can click Change ID to make changes.
• Name: Enter the name of the company or individual that will print on invoices,
customer statements, and reports.
• Prospect: Select this check box if this is a prospective customer. Prospects become
regular customers when this box is cleared manually or when transactions are entered
for them.

GENERAL TAB
The General tab is used to add, edit and view information about your customers. Fields of
interest are described below:
• Billing Address: Enter the address where bills will be sent in the Bill to Address field.
• Sales Tax: Select the tax that will be used for calculating sales tax on items sold to this
customer.
• Customer Type: This field can be used to filter records for reporting purposes.

A D D R E SS E S T A B
You can use the Addresses tab to keep track of shipping addresses for each customer. You
can have a separate sales tax for each shipping address.

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H I S T O RY T A B
The History tab offers a view of sales, receipts, last invoice, and payment information.
Peachtree updates this window each time you enter a transaction for the customer. You
can enter historical information when creating a customer, but once the record is saved,
you cannot make changes.

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SALES INFO TAB


Select the Sales Info tab to view sales information assigned to the customer. This tab is
used to enter sales reps, shipping methods, pricing levels, and General Ledger sales
accounts for customers. Fields of interest are described below:

• Pricing Level: Select the inventory pricing level for this customer from this drop-down
list. If necessary, the pricing level can be changed at the time of a sales transaction.
• Form Options: Use this box to select whether or not the customer will automatically
be sent a paper form or an e-mail when sending a quote, sales order, or invoice. You
can also have Peachtree automatically send a copy to the Sales Rep.
For Peachtree to automatically forward the form to sales reps, they must have their e-mail
addresses entered on the General tab of their Employee/Sales Rep records.

PAYMENT AND CREDIT TAB


This tab contains default payment information for the customer that will be used on the
Receipts window. Also, you can customize the payment terms and credit status for a

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customer. To override the default terms, select Customize terms for this customer from
the Terms and Credit drop-down arrow.

ACTIVITY 16 - ADDING CUSTOMERS


Abracadabra’s customers include both individuals and companies. These two groups
can be categorized using the Customer Type field. This field is useful for filtering
customer-related reports so that only one group appears. Follow these steps to add
customers:
1 Select Maintain, Customers/Prospects.
2 Enter bishopk in the Customer ID field.
3 Enter Kelly Bishop in the Name field.
4 Enter Kelly Bishop in the Contact field.
5 Customers can have one billing address and a virtually unlimited number of
shipping addresses. Enter this address in the Billing address fields:

345 Catillion Place Apts.


Apt. 45
Atlanta, GA 30101
6 Select Fulton from the Sales Tax lookup list.
7 Kelly has a personal Web site. Enter pers in the Customer Type field.

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8 Enter 404-889-0998 in the Telephone 1 field.


9 Select the Sales Info tab.
10 Enter account 40200-P for the GL Sales Acct.
11 Select Fed-EX from the Ship Via drop-down list.
12 Choose Personal from the Pricing Level drop-down list.
13 Click the Payment & Credit tab.
14 In the Terms and Credit box, click the drop-down arrow and select Customize
terms for this customer.
15 Check the Use discounts box.
16 Enter 10 in the Discount in days.
17 Enter 2.00 in the Discount Percent field.
18 Click Save & New to add this customer and clear the fields.
19 Select the General tab to add the next customer.
20 Using these steps as a guide, enter the remaining customers. Remember to click
Save & New to add each customer:

Customer #1 Customer #2 Customer #3

Customer ID langley marriottw turnerb

Name Langley Enterprises Marriott Hotel Bob Turner

Contact Helen Miller David Warner Bob Turner

77 Cobb St. 2245 Windy Hill Rd. 26 Jonesboro Rd.


Address
Marietta, GA 30501 Marietta, GA 30045 Atlanta, GA 30102

Sales Tax Cobb Cobb Fulton

Customer Type comm comm pers

Telephone 1 770-779-7800 770-889-2245 404-839-0938

GL Sales Acct 40400-C 40500-C 40500-P

Ship Via UPS Ground UPS Ground Fed-EX

Pricing Level Commercial Commercial Personal

Terms Default Default Default

21 Click Close when you are finished.

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ENTERING CUSTOMER BEGINNING BALANCES
........................................
Beginning balance invoices are customer invoices that were outstanding as of the date
you began to use Peachtree. Since these invoices were recorded to the appropriate
accounts in your previous accounting system, they should not affect the General Ledger in
Peachtree. The balance of the Accounts Receivable account in the General Ledger should
equal the total amount of the customer beginning balances as long as no other receivable
transactions have been made.

Cust omer Begi nning Balances Wi ndow


The Customer Beginning Balances window is used to enter information regarding
outstanding sales invoices you have not entered in Peachtree. Each tab is described below:

CUSTOMER BALANCES TAB


The Customer Balances tab displays your list of customers. If you want to adjust
beginning balances for a customer, double-click the customer’s name.

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INVOICES FOR TAB


The Invoices for tab is used to enter information for each beginning balance invoice.
Fields of interest are described below:

• Invoice Number: Enter the number that identifies the outstanding invoice.
• Amount: Enter the outstanding, unpaid amount of the invoice.
• A/R Account: Enter the account to which this invoice’s value was posted. If your
company uses the cash basis accounting method, this field will not be available.
This field is included here so that Peachtree knows which account to decrease when
Receipts are entered. The beginning balance amounts are not posted to the General
Ledger.

ACTIVITY 17 - ENTERING CUSTOMER BEGINNING BALANCES


Some customers have outstanding invoices. These invoices were printed and mailed
prior to February 1, 2008, and are already reflected in the balances of the General
Ledger accounts. Each invoice needs to be entered as a customer beginning balance
to show it as an aged receivable and to allow you to apply receipts to the invoices in
the future. Follow these steps to enter these customer beginning balances:
1 Select Maintain, Customers/Prospects.
2 Select the History tab.
3 Click Customer Beginning Balances to open the Customer Beginning
Balances window.

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4 Enter the following outstanding invoices for Langley Enterprises. There is no
Purchase Order associated with these invoices, so that field will remain blank:

Invoice Number Date Amount A/R Account

21009 10/08/07 12705.44 11000

21056 11/18/07 1950.00 11000

21077 12/18/07 1892.00 11000

5 Click Save, and then click Close when you are finished.
6 To see the Aged Receivables report, click Reports on the toolbar on the
Maintain Customers window.
7 Select Aged Receivables.
8 Click Close on each window when you are finished.

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ENTERING STATEMENT AND INVOICE DEFAULTS


........................................
You can select options for your customer statements
and invoices in the Statement/Invoices Defaults
window. These options control whether your
company name and contact information print on the
forms, which statements will print, and the dunning
messages that will print on statements. To enter
defaults for statements and invoices, select Default
Information, Statements/Invoices from the
Maintain menu.

Statement/Invoices Defaults Window


The Statement/Invoices Defaults window is used to enter basic information that applies
to printing customer statements and sales invoices. Each tab and field on this window is
described below:

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STATEMENT PRINT OPTIONS TAB
The Statement Print Options tab is used to specify the conditions that must be met for a
customer to receive a statement. You also choose whether or not company information
prints on customer statements and invoices. Each field on this tab is described below:

ACTIVITY AND BALANCE PRINT OPTIONS


These fields are used to determine which customer statements will print.
• Print Statements for customer accounts with: There are three options in this section.
Select one or more check boxes to specify the conditions that must be met for customer
statements to be printed. Each check box is described below:
- Any activity since the last statement was printed: Prints statements for customers
with any type of transaction since the last statement date.
- Balances at least: Select this check box and enter an amount that a customer’s
balance must be greater than or equal to for a statement to be printed.
- At least one invoice __ days past due: Select this check box and enter the number
of days past due an invoice must be for a statement to be printed.
• In addition to the above options, print statements with: There are additional options
for customers with negative and zero balances.
- Negative balances: Select an option from the drop-down list to include or exclude
customers with negative account balances.
- Zero balances: Select an option from the drop-down list to include or exclude
customers with zero dollar account balances.
If you do not select any of the first three options and you select Never for the Negative and
Zero Balance options, no statements will ever print, despite the customer range selected
in Reports.
• Set Default Statement Type to: Choose the type of statement format.

COMPANY PRINT OPTION


• Print your company name...: Select this check box if you are not using preprinted
forms. The information that was entered in the Maintain Company Information
window will print on your invoices and statements.

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DUNNING MESSAGES TAB


Select the Dunning Messages tab to enter dunning messages.

You can enter one message for each category listed. If a customer has multiple overdue
invoices, Peachtree prints the dunning message that corresponds to the oldest overdue
invoice.

ACTIVITY 18 - SETTING UP STATEMENT AND INVOICE


DEFAULTS
Abracadabra mails customer statements each month for customers with activity since
their last statement. Follow these steps to set up statement and invoice defaults:
1 Select Maintain, Default Information, Statement/Invoices.
2 On the Statement Print Options tab, ensure that the Any activity since the
last statement was printed check box is selected.
3 Clear the boxes on the next two options listed.
4 Select Never from the Negative balances drop-down list and select Never from
the Zero balances drop-down list.
5 Select the Dunning Messages tab.
6 Enter Your account will be turned over to collections if payment is not received.
in the All other invoices field.
7 To save the defaults, select OK.

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S ETTING U P P AYROLL
................................... 7
P
ayroll tracks information related to employees and their paychecks.
Payroll can calculate federal, state, local, and company-specific
deductions for employees based on information stored in each
employee record. Information about your employees is entered through the
Maintain Employees/Sales Reps window.
Payroll hours and wage expense amounts can be allocated to jobs to update
Job Cost. The allocated wage expense is then available in Accounts
Receivable as a reimbursable expense that can be billed on a sales invoice.
Time Tickets can be used to pay employees who are paid based on time ticket
hours. When transactions are posted in Payroll, the journals are updated. The
journals in turn update the General Ledger. The interaction between Payroll
and the other sections in Peachtree is illustrated below:

Ti me Pa yro ll Job Cost


Ti ck ets

Jou r n al s

Acc ounts
Rece iv able

General
L edg er

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SETTING UP PAYROLL
........................................
The first step in setting up payroll is to use the
Payroll Setup Wizard to establish employee
defaults. To start the Payroll Setup Wizard, select
Default Information, Payroll Setup Wizard from
the Maintain menu.

Payroll Setup Wizard


The Payroll Setup Wizard guides you through the process of establishing default payroll
General Ledger accounts, standard payroll fields, and optional payroll fields such as
vacation and sick time. Each window in the wizard is described below:
After you use the Payroll Setup Wizard for the first time, its name will change to Payroll
Settings.

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OVERVIEW
This window gives you an overview of the process. Click Next to continue.

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CHOOSE PAYROLL OPTIONS

The Payroll Options window will give you the opportunity to select a payroll system for
your company. With Full Service Payroll, Sage Software handles the payroll for your
employees. With Do It Yourself In-House, you handle your payroll yourself. To continue
the Payroll Setup Wizard, select the option and click Next.
If you have purchased and registered the tax service, you will not see this window.

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DO IT YOURSELF

This window gives you the option to select to use the Tax Update Service or maintain
your tax tables yourself. If you plan to bypass the Peachtree-Maintained tax tables and
enter all of your tax information in the User Maintained tax tables, select Do it yourself.
If you have purchased and registered the tax service, you will not see this window.

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OTHER PAYROLL OPTIONS

This window allows you to learn about and purchase other payroll options, such as direct
deposit or E-filing.

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COMPANY INFORMATION

Use this window to enter information about your company that will be needed to run
payroll. This includes your Federal Employer ID, State Employer ID, State, State
Unemployment Rate, and any local taxes.
If you completed the federal and state employer number fields while creating your
company, you will not need to fill those fields here.

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PAY TYPES

Use this window to enter the different types of pay that employees receive. You have
separate boxes for hourly and salary type workers. Enter the Pay Type and the Expense
account that you want for the different types of pay.

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BENEFITS

Select which benefits listed apply to your company. Depending on the options you select,
Peachtree will lead you through several other windows on which you will enter
information specific to that benefit.

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SET UP TAXES

Use this window to specify the accounts that payroll taxes will go to when you cut checks
for employees. You can use the drop-down to display a list of accounts that you can
choose.

PAYROLL SETUP COMPLETE


Finally, the Setup Complete window appears. Select Finish to create the payroll defaults
you have chosen.
After standard payroll fields are set up, you can modify the default setup at any time by
selecting Maintain, Default Information, Employees. Also, you can return to this
wizard at any time during your first payroll year.

ACTIVITY 19 - USING THE PAYROLL SETUP WIZARD


The Payroll Setup Wizard will establish the basic defaults for employees. Once
these defaults are in place, they can be changed using the Employee Defaults
window. Follow these steps to enter the basic payroll defaults using the Payroll
Setup Wizard:
1 Select Maintain, Default Information, Payroll Setup Wizard.
2 Click Next.

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3 Select Do It Yourself In-House and click Next.
If you have purchased and registered the tax service, you will not see this window or the
next one.
4 Select Do It Yourself and click Next.
5 Click Next on the Other Payroll Options window.
6 Abracadabra’s state unemployment percentage is 3%, so enter 3.00 in the State
Unemployment Rate field. Click Next.
7 We do not need to change any of the Pay Types. Click Next.
8 On the Benefits window, check Vacation, Sick Time, and Retirement Plans.

9 Click Next.

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10 On the Vacation window, enter the information in the window below. Click
Next when you are done.

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11 On the Sick Time window, enter the information below. Click Next when you
are finished.

12 Click Next on the Retirement Plans window.


13 Select 401k and make sure that Both employee and company is selected for
the Who contributes money to this plan? field. Click Next.
14 Select Percentage of employee’s contributions. In the Contribution Formula
box, complete the following entry: Company contribution is 50.00% of
employee’s contribution up to 3.00%. Click Next.
15 Leave the selection on the GL Accounts--Employee window and click Next.
16 Leave the settings on the GL Accounts--Company window and click Next.
17 View the Summary of Benefits window and click Next.
18 Click Next on the Set Up Taxes window.
19 Click Finish.

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ENTERING EMPLOYEE DEFAULTS


........................................
To access the employee defaults after using the
Payroll Setup Wizard, select Default Information,
Employees from the Maintain menu.

Employee Defaul ts Window


The Employee Defaults window is used to enter basic information that applies to most of
your employees. Each tab is described below:

GENERAL TAB
The General tab contains the locality information about your company’s payroll, as well
as custom field headings. Fields of interest are described below:

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LOCALITY
The state and locality information will automatically display on the General tab if it was
entered during the Payroll Setup Wizard. You can change the information in these fields
at any time.

E M P L O Y EE F I EL D S T A B
Select the Employee Fields tab to define the deductions, additions, and exceptions that
affect employee pay checks. These payroll fields are displayed by default for each
employee in the Maintain Employees/Sales Reps window. If necessary, the field setup
can be customized for each employee. Fields of interest are described below:

• Field Name: Enter the name of the payroll field to be set up. The name you create can
apply to a deduction, miscellaneous income or an accrual, such as vacation time. This
description prints on the Payroll Entry window, payroll check stubs, and payroll
reports.
• Calc: Select this check box to automatically calculate the payroll field amount. If the
check box is cleared, a dollar amount may be entered in the Amount field.
• Tax Name: If the Calc check box is selected, you must select a tax table calculation
name from this field.
State calculation names are set up with wildcard characters. This means that asterisks
(**) represent the two-letter state abbreviation. When a payroll check is created for an
employee, the asterisks are automatically replaced with the state abbreviation assigned to
the State/Locality field on the employee’s record.
• Amount: Enter a standard deduction or earnings amount in this field if the amount will
remain the same each pay period for most employees. To enter an amount in this field,

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clear the Calc check box. Enter positive numbers for earnings and negative numbers
for deductions.
• Memo: Select this check box if you want to track an amount without affecting the net
check amount. For example, restaurant tips that an employee receives from customers
do not normally affect your company books or the amount paid to the employee, but
must be included as taxable income. Also, all non-dollar fields, such as vacation hours,
should be marked as memo fields.
• Run: Select this check box if you want to keep a running total of this field after the
payroll year is closed. For example, you would not want to clear an employee advance
at year end. If this check box is cleared, the payroll field total will reset to zero at the
end of the payroll year.
• Adjust: Click this arrow button to display the Calculate Adjusted Gross window. On
this window, select the Use check box for fields that should be added to or subtracted
from gross prior to calculating the tax.

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C O M P AN Y F I E L D S T A B
Select the Company Fields tab to define taxes paid by the company. Each field on this tab
is described below:

• Field Name: Enter the name of the Payroll field, or use the default selection provided.
• Liability: Enter the General Ledger employer liability account that will be credited
when a payroll check is posted.
• Expense: Enter the General Ledger employer expense account that will be debited
when a payroll check is posted.
• Calc: Select this check box to automatically calculate the payroll field amount.
• Tax Name: If the Calc check box is selected, you must select a tax table calculation
name from this field.
• Adjust: Click this arrow button to display the Calculate Adjusted Gross window. On
this window, select the Use check box for fields that should be added to or subtracted
from gross prior to calculating the tax.

ACTIVITY 20 - SETTING UP EMPLOYEE DEFAULTS


Employee defaults are used as the initial settings for new employees. Therefore, these
settings should match the most common settings for your employees. Once
employees are set up, you can override the default settings if necessary. Follow these
steps to set up employee defaults:
1 Select Maintain, Default Information, Employees from the menu bar.
2 Select the Employee Fields tab. This tab lists employee-paid taxes and
contributions.

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3 The social security and medicare withholding accounts have not yet been set up
in the chart of accounts. Find the G/L Account field for the Soc_Sec. Click the
lookup magnifying glass in this field.
4 Locate the toolbar at the bottom of the lookup window and click the New button
that appears there.

5 This opens the Maintain Chart of Accounts window on which you can add the
new accounts.
6 Add the following accounts:

Account ID Description Account Type

23101 Soc Sec Emp Other Current Liabilities

23102 Soc Sec Comp Other Current Liabilities

23201 Medicare Emp Other Current Liabilities

23202 Medicare Comp Other Current Liabilities

7 After saving the new accounts, click Close. You will return to the Employee
Defaults window.
8 Enter the following General Ledger account numbers for the field names listed:

Field Name G/L Account

Soc_Sec 23101

Medicare 23201

St_Income 23600

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9 Select the Company fields tab. This tab lists employer-paid taxes and
contributions.
10 Enter the following liability and expense accounts for the field names listed:

Field Name Liability Expense

Soc_Sec_C 23102 72000

Medicare_C 23202 72000

Fed_Umemp_C 23500 72000

St_Unemp_C 23700 72000

11 Click OK to save the employee defaults.

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Adding Employees

ADDING EMPLOYEES
........................................
After completing the Payroll Setup Wizard and entering your
employee default information, the next step is to enter each
employee. As you add employees, you can use the default
information entered or change the information for specific
employees. To access the Maintain Employees/Sales Reps window,
select Maintain, Employees/Sales Reps from the menu bar.

Maintain Employees/Sales Reps Window


The Maintain Employees/Sales Reps window is used to enter, change, and store
information about your employees. Each tab is described below:

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HEADER FIELDS
• Employee ID: Identifies the employee in lookup lists, transactions, and reports.
• Name: Enter the employee’s name, using the three separate fields for first name,
middle initial, and last name.
• Employee - Sales Rep - Both: Select the option that describes the selected employee.
This option determines where this person’s information will appear.
- Employee: Allows the individual to appear on employee-related reports and the
Payroll Entry window.
- Sales Rep: Allows the individual to appear in the Sales Rep lookup list and on
Accounts Receivable sales rep reports. Paychecks cannot be entered for these
individuals.
- Both: Allows the individual to appear on both employee-related reports and
Accounts Receivable sales rep reports. Paychecks can be entered for these
individuals.

GENERAL TAB
The General tab appears when you open the Maintain Employees/Sales Reps window.
Basic information about each employee is entered on this tab. Fields of interest are
described below:
• Type: This case-sensitive field can be used to filter records for reporting purposes.

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PAY INFO TAB


Select the Pay Info tab to maintain information about how you pay employees. Fields of

interest are described below:


• Rate Used To Bill Customer: Enter a dollar amount to bill customers by the hour for
time recorded on time tickets.
• Hours per Pay Period: Enter the most common number of hours the employee works
in a payroll period. This option is available only if you selected Hourly--Hours Per Pay
Period as the pay method.
• Use Defaults: Clear this check box if you do not want to use the standard General
Ledger payroll expense account for the employee. Then, select a different General
Ledger account in the G/L Account field.
• G/L Account: Lists the General Ledger account to which the wages expense will be
posted. If necessary, this account can be changed after clearing the Std check box. You
can also change this account when a payroll check is entered.
• Raise History Button: Opens the Raise History window on which you can enter and
view raise history information.

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WITHHOLDING INFO TAB
Use the Withholding Info tab to enter employee withholding information for federal,
state, and local taxes. You can also enter the employee’s 401k percentage here. Fields of
interest are described below.

• Additional Withholding: Enter any per payroll additional withholding amounts if


employees elect to have additional money withheld from their paychecks.
Some state tax formulas use the Allowances and Additional Withholding fields for tax
calculation purposes. Before using these fields, read any comments listed with your state
income tax formula in the Peachtree-Maintained Tax Table. If the comment discusses
proper use of these fields, you should follow the steps listed. To find your state income tax
formula, select File, Payroll Formulas, Peachtree-Maintained.
• Withholding Information:
- Employee has Retirement Plan . . .: Select this check box to indicate that the
employee participates in a 401k or other plan. Selecting this check box will place a
check on the Retirement Plan box on the employee’s W-2 form.
- Statutory Employee: Select this check box if the employee qualifies as an
employee by statute according to IRS guidelines.

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VACATION/SICK TIME TAB


Use this tab to modify vacation or sick time selections that were set up during the Payroll
Setup Wizard.

E M P L O Y EE F I EL D S T A B
Select the Employee Fields tab to enter deduction information specific to an individual
employee. Depending on the payroll fields you are using, you might have employees
whose payroll deductions differ from the company-wide deductions that were established
in the default information. You can enter specific information for those employees using
this tab on the Maintain Employees/Sales Reps window. New payroll field information

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cannot be entered on this window. New fields can be entered only through Maintain,
Default Information, Employees. Fields of interest are described below:

• Use Defaults: Clear this check box if you do not want to use the standard payroll field
information for the employee. Then, you can make changes to the fields.
• Calculated: Select this check box to automatically calculate the payroll field. Clear
this check box to enter a flat rate amount in the Amount field.
• Formula: Select the name of the calculation used to calculate the deduction.
An incorrect Formula will cause errors during payroll entry. For this reason, Peachtree
recommends selecting the Tax Name from the lookup list.
• Amount: Enter a deduction or addition amount to apply a specific amount per pay
period. Deductions should be entered as negative amounts and earnings as positive
amounts.

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C O M P AN Y F I E L D S T A B
Select the Company Fields tab to change default employer company taxes.

RAISE HISTORY WINDOW


You can use the Raise History window to track an employee’s raise history. Fields of
interest are described below:

• Applicable Rate: Select the pay rate to which you want to apply the raise.
The Applicable Rate drop-down list includes pay rates that have associated general
ledger accounts and pay rates that have previously been used in the Raise History table.

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• Raise Amount: Enter a specific amount for the raise in the Raise Amount field. If you
enter the employee's raise as a percentage instead, the amount will still be calculated
and will appear in the Raise Amount field.
The amount entered here is for informational purposes only. To affect the pay rate on the
employee’s pay check, you must change the rate on the Pay Info tab as well.
• Raise Percentage: Enter a specific percentage for the raise in the Raise Percentage
field. If you enter the employee's raise as an amount instead, the percentage will still be
calculated and will appear in the Raise Percentage field.

ACTIVITY 21 - ADDING EMPLOYEES


Abracadabra currently has four employees. Payroll records and government forms
completed by the employees may need to be used as reference when you set up
employees. Follow these steps to add employees:
1 Select Maintain, Employees/Sales Reps from the menu bar
2 Enter bentleyc in the Employee ID field.
3 Enter Cindy Bentley in the Name field, using the First and Last Name fields.
4 Cindy is an employee who does not collect a commission amount, so leave the
Employee option selected.
5 Enter the following address:
231 Cathy St.
Marietta, GA 30045
6 Enter 770-456-5555 in the Telephone 1 field.
7 Enter 222-65-8888 in the Social Security # field. Leave the Type field blank.
8 Enter 12/2/98 as the Hired date.
9 Select the Pay Info tab.
10 Select Salary in the Pay Method field.
11 Choose Bi-weekly from the Pay Frequency drop-down list.
12 Enter 1500.00 in the first Salary Pay Rate field. Note that Peachtree displays
the annual salary at the bottom of the window.
13 Select the Withholding Info tab.

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7 SETTING UP PAYROLL
Adding Employees

14 Next you need to enter the Withholding Information for this employee. Enter
the following Withholding Information:

Payroll Field Additional State /


Names Filing Status Allowances Withholding Locality

Federal Married 1 0.00

State Married/Jointly 1 0.00 GA

Local Not Required 0 0.00

401k% 5.00

15 Click Save & New to add the employee and clear the fields.
16 Select the General tab to add the next employee.

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SETTING UP PAYROLL
Adding Employees 7
17 Using these steps as a guide, enter the remaining employees:

Employee #1 Employee #2 Employee #3

Employee ID davisj evank windsorb

Name Jon Davis Kirk Evan Billy Windsor

Employee/Sales Rep/Both Both Both Both

506 Bull St. 400 Shea Rd. 11 North Rd.


Address
Atlanta, GA 30090 Atlanta, GA 30030 Atlanta, GA 30030

Telephone 1 404-781-6767 404-889-6767 770-667-0998

Social Security # 234-22-6789 111-23-6786 341-77-7654

Hired Date 8/1/98 9/1/99 11/17/99

Hourly--Hours per Hourly--Hours per


Pay Method Salary
Pay Period Pay Period

Frequency Bi-weekly Weekly Weekly

Salary Rate 1200.00

Regular Hourly Rate 15.00 15.00

Overtime Hourly Rate 22.50 22.50

Federal Filing Status Married Single Single

Federal Allowances 2 1 0

State Filing Status Married/Jointly Single Single

State Allowances 0 0 0

State/Locality GA GA GA

Local Filing Status Not Required Not Required Not Required

401k% 10.00 5.00 10.00

18 Click Close when you are finished.

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7 SETTING UP PAYROLL
Entering Employee Beginning Balances

ENTERING EMPLOYEE BEGINNING BALANCES


........................................
Entering your employee beginning balances ensures that your monthly, quarterly, year-
end reports and W-2s print with the correct figures. You can enter a beginning balance for
each employee and edit it at any time. These beginning balance amounts do not affect the
General Ledger. They do update the year-to-date totals for each payroll field. Therefore,
you should enter employee beginning balances before posting payroll checks.
If you begin using Peachtree’s payroll after January 1st, you will enter employee
beginning balances for previous quarters and for each pay period in the current quarter.
For example, if you started using Peachtree payroll on October 20th and payroll is
processed on a semi-monthly basis, you can set up dates for March 31st, June 30th, and
September 30th for quarterly amounts. Then, set up October 15th for the current quarter
pay periods. The information for the rest of the year will be updated as you process
payroll, and the accounting history will be correct.

Employee Begi nning Balances Wi ndow


The Employee Beginning Balances window is used to enter information regarding
paychecks you have not entered in Peachtree.

ACTIVITY 22 - ENTERING EMPLOYEE BEGINNING BALANCES


Paychecks have been written in January for the employees. The year-to-date total for
each employee will be entered as beginning balances. These beginning balances will
be as of January 31, 2008. Follow these steps to enter employee beginning balances:

1 Select Maintain, Employee/Sales Reps from the menu bar.

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SETTING UP PAYROLL
Entering Employee Beginning Balances 7
2 Enter bentleyc for the Employee ID and click the Employee Beginning
Balances button on the General tab.
3 In column 1, enter a Date of 1/31/08.
4 Enter the following balances:

Gross 3000.00

Fed_Income -320.76

Soc_Sec -186.00

Medicare -43.50

St_Income -124.70

K401 -150.00

Deductions are entered as negative numbers.


5 The Net Check amount at the bottom should show 2,175.04. Click Save.

6 Use the following table to enter beginning balances for the remainder of the
employees. Remember to click Save after entering data for each employee. The
Net Check amount is given for reference.
7 Enter the following balances:

Employee ID davisj evank windsorb

Date in column 1 1/31/08 1/31/08 1/31/08

Gross 2400.00 1200.00 1200.00

Fed_Income -184.96 -139.56 -130.56

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7 SETTING UP PAYROLL
Entering Employee Beginning Balances

Soc_Sec -148.80 -74.40 -74.40

Medicare -34.80 -17.40 -17.40

St_Income -95.76 -55.78 -52.18

K401 -240.00 -60.00 -120.00

Net Check Amount 1,695.68 852.86 805.46

8 Click Close.
9 Click New.
10 To see the Current Earnings report, select Reports on the toolbar on the
Maintain Employees/Sales Reps window.
11 Select Current Earnings Report.
12 Click Close on each window when you are finished.

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L ISTS
................................... 8
L
ists allow you to see at a glance records and tasks for a particular
part of your company. Lists of records are available for the chart of
accounts, customers, vendors, inventory, employees, sales tax
agencies, sales taxes, jobs, phases, and cost codes. Lists for tasks are available
for sales invoices, quotes, sales orders, proposals, receipts, credit memos,
deposits, purchase orders, purchases, checks, payments, bills, vendor credit
memos, paychecks, general journal entries, time and expense tickets, and
inventory adjustments.
From a lists window, you can add new records or transactions, edit existing
ones, print, search for an existing record or transaction or open a task or report
associated with the current list.
In addition, you can customize a list by adding or removing fields, changing
the order in which fields appear, and changing the sort field and order.

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8 LISTS
Viewing a List

VIEWING A LIST
........................................
To view a list, select List from the menu bar, then select the particular
list you want to see.

The List Wi ndow


Here, you can view your records or transactions, add a new record or transaction, edit an
existing one, select from other task or report options, and customize the list.

On the left side of the List window, Peachtree displays tasks and reports associated with
the particular list currently displayed. Click one of the links to open that window and
perform the task or view the report.
In the main frame, you see the list of records or transactions.

A D D I N G A N E W R E C O RD O R T R A N S A C T I O N
To add a new record or transaction, click the New button in the toolbar. This will open the
appropriate window on which you can add the new information.

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LISTS
Viewing a List 8
E D I T I N G A N E X I S T I N G R E C O R D O R T R A N S A C T IO N
To edit an existing record or transaction, highlight the record or transaction in the list and
click Open in the toolbar. This will open the appropriate window with the current
information displayed.

S E A R C HI N G F O R A R E C O R D O R T RA N S A C T I O N
To search for information on a list, enter the information in the Search For field, specify
the field type, and click Search. Peachtree will display all records or transactions with
that information.

ACTIVITY 23 - SEARCHING FOR A CUSTOMER TYPE


We will filter the customer list for a particular customer type. To do this, follow the
steps below.
1 Select Lists, then Customers & Sales, then Customers.
2 Enter pers in the Search for field.
3 Select Type from the in drop-down list.
4 Click Search. Only records with pers as the Customer Type appear.
5 To return to the original list, click Clear Search.
6 Click Close on the Customer List window.

PRINTING A LIST
To print a list, simply click the Print button, select the printer, and click OK.

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8 LISTS
Viewing a List

CUSTOMIZING A LIST
You can add or remove fields, change the order of the fields, and change the sort order
and field for sorting. To add or remove a field, click the Settings button. This will open
the Settings window.

To add a field, highlight the field in the Available Columns list and click Add. To
remove a field, highlight the field in the Selected Columns list and click Remove. If you
want to change the order of the fields, use the Move Up and Move Down buttons. Click
OK when you are finished.
To change the sort order, click the field label in the column that you want to sort by.
Peachtree will now sort the list by that field in Ascending order, that is, from a to z. If you
want to sort by descending order, click the field label again.

ACTIVITY 24 - CUSTOMIZING THE CUSTOMER LIST


Now, we will customize the customer list so that it includes the billing address fields.
We will also remove some fields. To do this, follow these steps:
1 Select Lists, Customers & Sales, Customers.
2 Click Settings. The Settings window opens.
..
3 To add fields, highlight Bill To Address 1, and click Add.
4 The field appears in the Selected Columns area.
5 Repeat step 3 to add Bill To Address 2, Bill To City, Bill To State, and Bill To
Zip.

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LISTS
Viewing a List 8
6 To remove fields from the list, highlight Telephone 1 in the Selected Columns
list.
7 Click Remove.
8 Repeat this procedure for Type and Balance.
9 Click OK.

10 To print the list, click Print.


11 Select the printer and click OK.
12 To reset the list to the default fields, click Settings.
13 Click Reset Defaults on the Settings window.
14 Click OK.
15 Click Close on the Customer List window.

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8 LISTS
Viewing a List

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U SING G ENERAL L EDGER
................................... 9
T
he General Ledger is updated by each journal in Peachtree as
transactions are posted. The General Journal Entry task can be used
to affect accounts in the General Ledger with direct debit and credit
entries. General journal entries are posted to the General Journal, which in turn
updates the General Ledger. The accounts in the General Ledger can be
reconciled using Account Reconciliation. Any adjustments that need to be
made to the account being reconciled are stored in the General Journal.
There are a variety of reports available that display the information stored in
the General Ledger. These reports include the Financial Statements, which
summarize the financial activity and account balances for your company. The
flow of General Ledger tasks is illustrated below:

Ge ner al General
Jo urn al En try Jou r n al

Ge ner al Acco un t
L ed ge r Reco nc iliatio n

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9 USING GENERAL LEDGER
Entering General Journal Entries

ENTERING GENERAL JOURNAL ENTRIES


........................................
The General Journal Entry window is used to enter transactions that are not recorded in
other journals. This window is also used to edit account reconciliation adjustments. In the
General Journal Entry window, both debits and credits are entered to balance the
transactions. To make a general journal entry, select General Journal Entry from the
Tasks menu.

General Journal Entry Window


The General Journal Entry window is used to enter transactions that post to the General
Journal. Fields of interest are described below:

• Date: Enter the date of the transaction. Any date within either the current period or a
future period can be used.
• Reverse Transaction: Select this check box to make a transaction automatically
reverse the debit and credit amounts on the first day of the next accounting period. For
example, use a reversing entry to record accrued payroll expenses. The accrued
expenses will be recognized when they are incurred, not when they are paid.
• Out of Balance: Displays the difference between the total debits and total credits for
the transaction. This amount must be zero before the transaction can be posted.

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USING GENERAL LEDGER
Entering General Journal Entries 9
ACTIVITY 25 - ENTERING A GENERAL JOURNAL
TRANSACTION
At the end of January, there was $500.00 in Petty Cash. As of February 12th, there
was $403.58 remaining and receipts totalling $96.42. Follow these steps to enter a
General Journal entry to update the Petty Cash balance:
1 Select Tasks, General Journal Entry.
2 Enter 02/12/08 in the Date field.
3 Enter Petty Cash in the Reference field.
4 In the first GL Account field, enter account 75500.
5 Enter a Description of 2 rolls 35 mm film.
6 Expenses incurred are posted as a debit, so enter 18.00 in the Debit column.
7 Using these steps as a guide, enter the next two lines of the general journal
entry:

GL Account Description Debit

68000 Office carpet cleaning 50.50

70500 Office luncheon 27.92

8 At this point, the Totals and Out of Balance fields should show 96.42, which is
the total amount entered. To complete the entry, we will credit the Petty Cash
account by 96.42
9 On the fourth line, enter GL Account 10000.
10 In Description, type Petty Cash expenses through 2/12.
11 In the Credit column enter the amount of 96.42.
12 Select Save to complete the entry. Click Close.

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9 USING GENERAL LEDGER
Entering General Journal Entries

Recurr ing Jour nal Entri es


To copy journal entries into one or more future periods, click Recur. The transactions
created are called recurring entries. Recurring entries can be edited or deleted for the
current period or for a future period at any time.

ACTIVITY 26 - ENTERING A RECURRING GENERAL JOURNAL


ENTRY
On February 15th, a contract was signed with Direct Copiers for an office copier. The
monthly fee for this copier is $100. Abracadabra has authorized Direct Copiers to
withdraw $100 from the National Bank Checking account each month for the next
year. This withdrawal will be entered as a recurring General Journal entry over the
next 12 months. Follow these steps to enter a recurring General Journal entry:
1 Select Tasks, General Journal Entry.
2 Enter 02/15/08 in the Date field.
3 Enter Copier Withdrawal in the Reference field.
4 In the first GL Account field, enter 71000.
5 Enter a Description of Monthly Copier Contract.
6 Enter 100.00 in the Debit field.
7 On the second line, enter GL Account 10200.
8 The Description field fills automatically.

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Entering General Journal Entries 9
9 Enter 100.00 in the Credit field.

10 Click the Recur button on the toolbar. The Create Recurring Journal Entries
window opens.
11 In the Date Range area, select End After: and enter 12 occurrences.

12 Click OK to create the entries.


13 To see the list of general journal entries, click List on the toolbar.
14 In Date Range, select This Year from the drop-down list.

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9 USING GENERAL LEDGER
Entering General Journal Entries

15 The list will refresh and you will see one entry per month for the copier
transaction.
16 Click Close on each window.

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USING GENERAL LEDGER
General Ledger Reports 9
GENERAL LEDGER REPORTS
........................................
General Ledger reports organize transactions recorded in the
various journals by account number. To preview or print these
reports, select General Ledger from the Reports & Forms menu.

Report Descr iptions


• Account Variance: Provides a comparison of budget and actual figures for each
account, as well as variance information. It is useful for determining the accuracy of
budgets and for forecasting future budgets.
• Account Variance-Dual Budgets: Provides a comparison of budget and actual figures
for each account, as well as variance information, using two budgets instead of one. It
is useful for determining the accuracy of budgets and for forecasting future budgets.
• Budget: Lists period and year-to-date budget amounts for each account.
• Cash Account Register: Lists all transactions in a cash account, along with a running
balance.
• Chart of Accounts: Lists each account number, account description, and account type.
Useful for verifying that all necessary General Ledger accounts have been set up with
the correct account type and for identifying changes or additions that need to be made
to the accounts.
• General Journal: Lists all general journal transactions for the selected date range with
related General Ledger distributions. This journal is used to record transactions that
cannot be entered in one of the subsidiary journals, such as the Sales Journal or the
Purchase Journal. It is useful for verifying General Journal postings, including
beginning balance amounts.
Chart of accounts beginning balance amounts are shown with a reference of BEGBAL in
the General Journal.

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9 USING GENERAL LEDGER
General Ledger Reports

• General Ledger: Shows all transactions in each account for the selected accounting
period(s). Gives vital information about the activity and balance in each General
Ledger account and provides detail for financial statements.

4/30/03 at 11:17:48.96 Page: 1 of 1


Bellwether Garden Supply
General Ledger
For the Period From Mar 1, 2007 to Mar 31, 2007
Filter Criteria includes: 1) IDs from 10000 to 10100. Report order is by ID. Report is printed with Truncated Transaction Descriptions and in Detail
Format.

Account ID Date Reference Jrnl Trans Descriptio Debit Amt Credit Amt Balance
Account Descriptio

10000 3/1/07 Beginning Balance 100.00


Petty Cash 3/10/07 PET001 GEN Petty Cash 100.00
3/10/07 PET001 GEN Petty Cash 100.00
Current Period Ch 200.00 200.00
3/31/07 Ending Balance 300.00

• General Ledger Trial Balance: Lists the current balance for each account. Also,
provides a historical record of account balances for the selected accounting period(s).
• Transaction Detail Report: Shows you the detail for transactions in the system.
• Working Trial Balance: Lists the General Ledger accounts and their debit or credit
balances. This report serves as a test as to whether the General Ledger is in balance. It
can also be used as a worksheet to make adjustments to account balances.

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USING GENERAL LEDGER
Financial Statements 9
FINANCIAL STATEMENTS
........................................
The information stored in the General Ledger is also used to
produce Financial Statements. Financial Statements are used to
examine the financial position of a business and are usually
prepared at the end of an accounting period and at the end of the
fiscal year. You should store these reports in a secure location,
since banks and lenders commonly request these reports for several
years. To preview or print Financial Statements, select Financial
Statements from the Reports & Forms menu.

Report Descr iptions


• Balance Sheet: Shows balances for Assets, Liabilities, and Capital for a given time
period.
• Balance Sheet/Budg: Lists all assets, liabilities, and capital of a business entity as of a
specific date and the corresponding budget balances.
• Cash Flow: Shows increases and decreases in cash for the selected accounting
period(s) and the year-to-date total.
• GL Account Summary: Shows beginning balance, activity, and ending balance for
each account as of the selected accounting period.
• Income - 12/13 Period: Shows you income and expense information for all 12 or 13
periods in your fiscal year.
• Income 2 years: Shows income and expense activity for the selected accounting
period(s) and the year-to-date total for this year and last year.

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9 USING GENERAL LEDGER
Financial Statements

• Income Statement: Shows income and expense activity for the selected accounting
period(s) and the year-to-date total for each account.

Page: 1 of 2
Bellwether Garden Supply
Income Statement
For the Three Months Ending March 31, 2007

Current Month Year to Date


Revenues
Sales $ 5,175.00 7.83 $ 8,250.95 10.16
Sales - Aviary 5,388.13 8.15 6,487.91 7.99
Sales - Books 149.75 0.23 3,654.60 4.50
Sales - Equipment 2,269.77 3.44 7,031.39 8.66
Sales - Food/Fert 367.60 0.56 697.24 0.86
Sales - Furntiture 30,000.00 45.41 30,000.00 36.96
Sales - Hand Tools 199.92 0.30 801.64 0.99
Sales - Landscape Services 2,059.53 3.12 2,939.34 3.62
Sales - Miscellaneous 18,199.98 27.55 18,199.98 22.42
Sales - Nursery 1,182.48 1.79 1,420.34 1.75
Sales - Pots 510.58 0.77 580.53 0.72
Sales - Seeds 223.17 0.34 766.24 0.94
Sales - Soil 351.48 0.53 365.46 0.45
Sales Discounts (5.80) (0.01) (19.52) (0.02)

Total Revenues 66,071.59 100.00 81,176.10 100.00

• Income/2 Budget-per: Compares the income and expense activity for the current
period to two budgets.
• Income/2 Budget-YTD: Compares the year-to-date income and expense amounts to
two budgets.
• Income/Budget: Compares the income and expense activity for the current period and
the year-to-date amounts to the budget figures.
• Income/Budget-Per: Compares the current period income and expense amounts to
budgeted amounts and actual amounts from last year.
• Income/Budget-YTD: Compares the year-to-date income and expense amounts to
budgeted amounts and actual amounts from last year.
• Income/Earnings: Combines the Income Statement and Statement of Retained
Earnings for the selected accounting period(s) and year-to-date.
• Retained Earnings: Shows changes in the Retained Earnings balance as of the
selected accounting period.
• Statement of Changes: Shows changes in financial position as of the selected
accounting period.

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U SING A CCOUNTS P AYABLE
................................... 10
A
ccounts Payable transactions can be entered in a variety of ways.
Purchase Orders can be entered and printed to request products or
services from your vendors. The Purchases/Receive Inventory task
allows you to fill purchase orders or enter bills directly. Purchase
invoices/vendor bills can be paid using the Payments task. You have the option
of paying one vendor at a time or paying a group of vendors. Each transaction
updates the journals, which in turn update the General Ledger. However, the
Purchase Orders Journal does not update the General Ledger.
Accounts Payable reports organize the transactions entered and display the
information in a way that helps you better manage your vendor-related tasks.
Also, the total payments for vendors are tracked in Peachtree so you can print
1099 forms at year-end. The flow of Accounts Payable tasks is illustrated
below:

Purchase Pur ch ase Orde rs


Orders Jo ur na l

Pu rch ase s/
Pu rch ase s General
R ece ive In ven tory
J ou r n al L edg er
Cre dit Mem o

Pa ymen ts Ca sh Disb ur seme nts


Jo ur na l

Vo id Checks

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10 USING ACCOUNTS PAYABLE
Entering Purchase Orders

ENTERING PURCHASE ORDERS


........................................
On the Purchase Orders window you can enter and print
purchase orders for your vendors. Purchase orders can be edited
by adding or removing line items. Peachtree automatically closes
a purchase order when all the items on it have been received, but
also gives the option of manually closing it if necessary. To enter
a purchase order, select Purchase Orders from the Tasks menu.

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Purchase Or ders Window
The Purchase Orders window is used to enter and print purchase orders for inventory
and supplies ordered from vendors. Fields of interest are explained below:

• Good thru: By default, this date is one month past the purchase order date, but you can
enter a different date.
• PO #: If you plan to print the purchase order, leave this field blank. You will enter it
during the print routine. If this PO was manually written, enter the purchase order
number.
• Close PO: Select this check box to close a purchase order.
A purchase order is automatically closed after all items are received.
• Drop Ship: Select this check box to specify a drop shipment from a vendor directly to
a customer.
- Customer ID: Enter the ID of the customer receiving the drop shipment.
- Bill to Address/Ship to Address: When specifying a drop shipment, select the
address where the drop shipment will be sent.
• Unit Price: By default, this is the last purchase cost for the item. New items that have
not been ordered before and do not have beginning balances use the cost assigned to
them in the Last Unit Cost field on the Maintain Inventory Items window. If necessary,
this price can be changed to a different amount.

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Entering Purchase Orders

• Job: Enter a job if the transaction line needs to be applied to a job. The amount will not
be applied to the job until the items are received.
Inventory set up as stock items or assemblies cannot be applied to a job on a purchase
order. These items should be applied to a job when the customer is billed for the items or
when an inventory adjustment is entered to remove the items from stock.

ACTIVITY 27 - ENTERING A PURCHASE ORDER


More printer paper needs to be ordered from Computers R Us. Follow these steps to
enter a purchase order:
1 Select Tasks, Purchase Orders from the menu bar.
2 Select 01comp from the Vendor ID lookup list.
3 Enter a Date of 02/11/08.
4 Since we will not be printing this purchase order, enter a PO # of 1001.
If you plan to print any transaction, leave the reference number blank and allow the
system to assign a reference number when the transaction prints. If you enter a reference
number and print the transaction, the system assumes you manually created the
transaction, and the word “Duplicate” will print on the transaction.
5 Now, enter the information for the item being ordered. Enter 5.00 in the
Quantity field.
6 The item purchased is not tracked in inventory, so skip the Item field.
7 Enter a Description of Laser printer paper, item 101A.
8 Enter GL Account 71000.
9 Enter a Unit Price of 12.50.
10 The Amount is calculated by multiplying the Quantity by the Unit Price. The
Amount should be 62.50.
11 Click Save to complete this transaction.

ACTIVITY 28 - ENTERING A DROP SHIPMENT


A set of books needs to be ordered for a customer. These books will be ordered from
Computers R Us and shipped directly to the customer, Langley Enterprises. Follow
these steps to enter a drop shipment:
1 On the Purchase Orders window, enter a Vendor ID of 01comp.
2 Enter 02/12/08 in the Date field.
3 Enter PO # 1002.

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Entering Purchase Orders 10
4 The Ship To Address currently shows Abracadabra’s address. To ship the items
directly to the customer, select the Drop-Ship check box. The Customer ID
field appears to the right of the Vendor ID field.
5 Select langley from the Customer ID lookup list.
6 Select Bill to Address from the drop-down list on the Ship To field.
7 Enter a Quantity of 5.00 and enter an Item of bintro1.
8 The PO Total should be 110.00.
9 Click Save to complete this purchase order; then click Close.

Editing Transactions
Posted transactions can be fully edited throughout Peachtree if the following conditions
are true:
• The transaction is posted in one of the currently available accounting periods.
• The transaction is a purchase order or sales order not yet filled.
• The transaction is an invoice with no associated payments.
To edit a transaction, select List from any transaction window. The associated list window
opens, listing the transactions.
You can either select the transaction you need to edit and click Open, or simply double-
click the transaction you need to edit. The transaction opens in the window. Make any
changes necessary; then click Print to reprint the transaction or click Save to save
changes and update the General Ledger.

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Purchasing and Receiving Inventory/Entering Bills

PURCHASING AND RECEIVING INVENTORY/ENTERING


BILLS
........................................
The Purchases/Receive Inventory window allows you to
receive items on a purchase order and enter vendor invoices and
bills. To access this window, select Purchases/Receive
Inventory from the Tasks menu.

Purchases/Receive Inventory Window


The Purchases/Receive Inventory window is used to enter bills from vendors and to
receive inventory that arrives from suppliers. The header area contains fields for vendor-
specific information for the transaction. The Apply to Purchases tab is used either to
record vendor invoices that do not have a purchase order on file or to add items when you

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Purchasing and Receiving Inventory/Entering Bills 10
receive more items than were ordered. The Apply to Purchase Order # tab is used to
receive items from a purchase order. Fields of interest are explained below:

HEADER FIELDS
• Drop Ship: Select this check box to specify a drop shipment from a vendor directly to
a customer.
- Customer ID: Enter the ID of the customer receiving the drop shipment.
• Waiting on Bill: Select this check box if a shipment of inventory is received without a
vendor invoice. This allows the receipt to be recorded and inventory to be updated. The
invoice is not available for payment until the transaction is edited by selecting this
check box and saving again.
• Terms: Shows the vendor terms as set up in the vendor record. To change the terms,
click the arrow button to open the Terms Information window. Make any changes and
click OK.

APPLY TO PURCHASES TAB


If you select a vendor with no open purchase orders, the Apply to Purchases tab appears
by default. This tab is used to enter purchases that did not originate on a purchase order. In

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10 USING ACCOUNTS PAYABLE
Purchasing and Receiving Inventory/Entering Bills

addition, if items were received but not included on the original purchase order, you can
add them here. Fields of interest are described below:

• Unit Price: Shows the last purchase cost for the item selected. New items that have not
been ordered before and do not have beginning balances use the cost assigned to them
in the Last Unit Cost field on the Maintain Inventory Items window. If necessary, this
price can be changed to a different amount.
• Job: Enter a job if the transaction line needs to be applied to a job.
Inventory set up as stock items or assemblies cannot be applied to a job on a purchase.
These items should be applied to a job when the customer is billed for the items or when
an inventory adjustment is entered to remove the items from stock.

FOOTER FIELDS
• Amount Paid at Purchase: Enter the payment amount here to make a partial or full
payment to an invoice. Two additional fields appear when an amount is entered in the
Amount Paid field.
- Reference: Enter a reference number for the payment transaction in this field. A
reference number must be entered before the transaction can be posted.
- Cash Account: Select the cash account to which the payment amount will be
posted.

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Purchasing and Receiving Inventory/Entering Bills 10
ACTIVITY 29 - ENTERING A PURCHASE
The monthly bill for work done by Calvert Copyright services has arrived. This bill
will be entered now and paid at a later time. Follow these steps to enter a purchase:
1 Select Tasks, Purchases/Receive Inventory.
2 Enter 01copy for the Vendor ID.
3 Enter 02/12/08 in the Date field.
4 Enter 5342 in the Invoice # field.
5 Now, enter the items on the bill. The items listed are service items billed at a flat
rate. Because the items are not tracked in inventory, the Quantity, Item, and
Unit Price fields will remain blank:

Description GL Account Amount

Copyright research for web site 50000 543.45

Web site name search service 50000 145.00

Legal review of copyright statement 50000 365.71

6 The Invoice Total should be 1054.16.


7 Click Save.
8 Click Close.

ACTIVITY 30 - ENTERING A RECURRING INVOICE


Abracadabra leases office space from Peachtree Leasing. The amount paid is the
same each month, so a recurring purchase invoice will be entered. Each month, when
checks are printed, the monthly lease payment will be available for payment. Follow
these steps to enter a recurring purchase invoice:
1 Select Tasks, Purchases/Receive Inventory.
2 Enter 03lease for the Vendor ID.
3 Enter a date of 02/20/08. Each recurring invoice will be dated the 20th of each
month.
4 Leave the Invoice # field blank. The Invoice # will be assigned when the
invoice is recurred.
5 Skip the Quantity and Item fields. Enter Office space lease in the Description
field.

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Purchasing and Receiving Inventory/Entering Bills

6 Enter 1700.00 in the Amount field.


7 Click the Recur button.
8 The invoice will recur indefinitely. On the Create Recurring Purchases
window, select No end date in the Date Range area.
9 Enter lease-02 in the Begin with number field. The invoice for February will
have an Invoice # of lease-02, the invoice for March will have an Invoice # of
lease-03, and so on.
10 Click OK to have the invoice recur; then click Close.

APPLY TO PURCHASE ORDER # TAB


When you select a vendor who has one or more open purchase orders, the Apply to
Purchase Order # tab appears. Fields of interest are described below:

• Apply to Purchase Order No.: Select a purchase order from the drop-down list. All
open purchase orders for the selected vendor are listed.
• Remaining: Displays the number of items that remain outstanding on the purchase
order. This field cannot be changed on this window.
• Received: Enter the quantity of each item received. The purchase order will remain
open until all items are received or until it is manually closed.

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• Job: Enter a job if the transaction line needs to be applied to a job.
Inventory set up as stock items or assemblies cannot be applied to a job on a purchase.
These items should be applied to a job when the customer is billed for the items or when
an inventory adjustment is entered to remove the items from stock.

ACTIVITY 31 - RECEIVING INVENTORY AGAINST A


PURCHASE ORDER
On February 15th, Abracadabra received invoice #10232 from Computers R Us. The
items from purchase order 1002 were drop-shipped to Langley Enterprises. To enter
this invoice, we need to indicate that the items ordered were received. Follow these
steps to receive inventory against a purchase order:
1 Select Tasks, Purchases/Receive Inventory.
2 Select 01comp from the Vendor ID lookup list. The Apply to Purchase Order
No. tab appears below, indicating that the selected vendor has open purchase
orders.
3 Enter 02/15/08 in the Date field.
4 Enter 10232 in the Invoice # field.
5 Select purchase order 1002 from the Apply to Purchase Order No. drop-down
list. The purchase order items list below.
6 Enter 5.00 in the Received field and press ENTER on the keyboard.
7 The Invoice Total and Net Amount Due should be 110.00.
8 Click Save to complete this transaction. Then, click Close.

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About Making Payments

ABOUT MAKING PAYMENTS


........................................
In Peachtree you have three methods of paying bills:
In Payments, you can apply payments to open invoices or directly to expenses. Use this
method when you need to pay only one vendor.
In Write Checks, you apply payments directly to expenses. Use this method when paying
bills that have no corresponding invoices.
In Select for Payment, the program selects invoices for payment based on specific
criteria such as discount dates, due dates, and selected groupings of vendors. For more
information on this feature, see the Peachtree Quantum 2009 Advanced Self-Study Guide.

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ENTERING PAYMENTS/PAYING BILLS
........................................
Invoices and bills for individual vendors can be selected and
paid using this option. To record payments, select Payments
from the Tasks menu. You can also select Tasks, Bills, Pay
Bills.

Payments Wi ndow
The Payments window can be used to enter cash purchases and disbursements that do not
have associated vendor invoices/bills. It is also used to apply payments to vendor invoices
entered as purchases. When a vendor ID is entered, all unpaid bills for the vendor appear.
You can choose to pay an entire invoice/bill or make partial payments. Credit memos and

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Entering Payments/Paying Bills

prepayments may also be applied to invoices on this window. Each tab is described
below:

HEADER FIELDS
• Vendor ID/Customer ID: Select to enter a payment for a vendor or customer. Then,
enter the ID for the vendor or customer being paid. To pay a vendor who is not in the
vendor list, leave this field blank and enter the name in the Pay to the Order of field.
Choose Customer ID to issue a refund check to a customer.
• Check Number: If you plan to print the check, leave this field blank. You will enter it
during the print routine. If this check was manually written, enter the check number.
• Memo: By default, the account number entered in the Maintain Vendors window will
fill automatically for vendors set up in Peachtree. If necessary, you can enter a different
memo line for the check.
• Cash Account: Enter the account from which funds are withdrawn when the check is
written. This account number will be the last cash account used for a payment, but can
be changed if necessary.
• Cash Account Balance: Displays the balance of the selected account as of the date of
the check. This amount is updated when checks are posted.
If you see the word “Uncalculated” in the balance field, click the recalc button to the right
to display the balance amount.

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A P P L Y T O EX P E N SE S T A B
When you select a vendor without any outstanding invoices/bills, the Apply to Expenses
tab appears. The Apply to Expenses tab is used to enter prepayments and cash purchases.
Fields of interest are described below:

• Prepayment: Select this check box to enter an advance payment/deposit. A


prepayment can be printed as a check or assigned a reference number. After a
prepayment has been saved, it can be applied to one or more of the vendor’s
outstanding invoices on the Apply to Invoices tab.
• Description: Displays the description for the item selected. You can change the
description, or enter a description when receiving items not tracked through inventory.
• GL Account: Displays the account set up for the item selected. When you are ordering
items not tracked through inventory, the account will be the vendor’s purchase account.
If necessary, enter a different account.
• Unit Price: Will be the last purchase cost for the item selected. New items that have
not been ordered before and do not have beginning balances use the cost assigned to
them in the Last Unit Cost field on the Maintain Inventory Items window. If necessary,
this price can be changed to a different amount.

A P P L Y T O I NV O I C E S T A B
The Apply to Invoices tab lists all outstanding invoices for the selected vendor. Select
invoices/bills to pay by selecting the Pay check box next to each one. When all invoices

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Entering Payments/Paying Bills

included on a check are selected, click Print to print the disbursement check immediately,
or click Save to print the check later. Fields of interest are described below:

• Description: Enter a description for each invoice in this field. Text entered in this field
prints on the disbursement check stub. The message “Waiting on Bill From Vendor”
appears in this field when an invoice has a Waiting on Bill status in Purchases/Receive
Inventory.
• Discount: Displays the amount of the discount if the invoice qualifies for a discount. If
necessary, the amount in this field can be changed. A discount amount cannot be
entered for a partially paid invoice.
• Amount Paid: Enter the amount to apply to the invoice. When you enter an amount,
the Pay check box will be checked automatically.
• Pay: Select this check box to pay the invoice in full.

ACTIVITY 32 - PAYING INVOICES


Some of the outstanding invoices need to be paid. One invoice for Computers R Us
will be paid. Also, all invoices due in February for Calvert Copyright Services will be
paid. Follow these steps to pay invoices:
1 Select Tasks, Payments.
2 When prompted to select a cash account, select National Bank Checking and
click OK.

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Entering Payments/Paying Bills 10
The first time you enter a payment, you will be prompted to select a cash account. If you
have already entered a payment, the Payments window appears.
3 Enter a Vendor ID of 01comp. Because there are invoices that need to be paid,
the Apply to Invoices tab appears below.
4 If you do not want to print the check, enter a Check Number of 3285.
5 If you want to print the check, leave the Check Number blank.
6 Enter a Date of 02/24/08.
7 Select the Pay check box for Invoice 9884.
8 If you do not want to print the check, click Save.
9 If you want to print the check, click the Print button. Enter 3285 for the First
Check Number, and click Print. The check will post automatically after it
prints.
10 Using these steps as a guide, pay the following invoices:

Vendor ID 01copy

Check Number 3286

Date 02/24/08

Pay Invoice # 4321, 4359, 4598

11 If you do not want to print the check, click Save, then Close.
12 If you want to print the check, click the Print button. Enter 3286 for the First
Check Number, and click Print. Then click Close.

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Entering Payments/Paying Bills

A P P L Y T O CU S T O M E R A C C O U N T
If you select a customer ID on the Payments window, the Apply to Customer Account
tab appears. This tab can be used to record customer refunds.

Using the Apply to Customer Account tab in conjunction with the Credit Memo
window in Accounts Receivable allows a customer-issued credit memo and a customer-
issued check to be recorded. The two transactions can be reconciled on the Receipts
window. To enter these transactions, follow these steps:
• Enter the credit memo on the Apply to Sales tab on the Credit Memo window. This
creates a credit to Accounts Receivable and a debit to an income account.
• Record the check on the Apply to Customer Account tab in Payments. This creates a
credit to cash and a debit to Accounts Receivable.
• Reconcile these two transactions in Receipts. Select the Pay check box for both the
credit memo and the payment to create a zero dollar receipt. Enter a unique identifier in
the Reference field.

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Writing Checks 10
WRITING CHECKS
........................................
Write Checks allows you to quickly enter a check and apply the
amount to an expense or a series of expenses. If the payment
does not involve invoices or inventory items, this is the easiest
payment method to use. To access this window, select Write
Checks from the Tasks menu.

Write Checks Window


The Write Checks window can be used to pay bills not entered as invoices or to write a
check to a vendor who does not have a Vendor ID. This window is a simplified version of

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Writing Checks

the Payments window that allows you to quickly enter check information without having
to enter line-item distributions. Fields of interest are described below:

• Check Number: If you plan to print the check, leave this field blank. You will enter it
during the print routine. If this check was manually written, enter the check number.
• Memo: By default, the account number entered in the Maintain Vendors window will
fill automatically for vendors set up in Peachtree. If necessary, you can enter a different
memo line for the check.
• Split: Opens the Split Transaction window on which you can distribute the expense to
multiple accounts. Once you click OK, all fields at the bottom of the Write Checks
window will be unavailable. To change the transaction distribution, click Split.

• Description: Enter a description of the payment. This description will print on the
check stub.

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ACTIVITY 33 - WRITING A CHECK
On February 18th lunch was ordered for the employees from Bob’s Sub Shop. Check
3284 was written by hand and given to the delivery person. Follow these steps to
enter a manual check:
1 Select Tasks, Write Checks.
2 Skip the Vendor ID field and enter Bob’s Sub Shop in the Pay to the Order of
field.
3 Enter a Check Number of 3284.
4 Enter a Date of 02/18/08.
5 Enter a Dollar amount of 32.98.
6 Enter Company lunch in the Memo field.
7 Enter an Expense Account of 70500.
8 Click Save; then click Close.

Handli ng Speci fic Types of Payments

E N T E R I N G A M AN U A L C H E C K
A manual check is a check that was handwritten or previously printed and not entered into
Peachtree. To enter a handwritten check, select Payments from the Tasks menu.
A manual check is recorded like a normal payment, with one difference. The check
number is entered in the Check Number field. If a number is not entered in this field,
Peachtree will print a check for this transaction during the next check-printing cycle.
If cash was used to pay for an item, enter a reference number or word in the Check
Number field that identifies the transaction, such as CASH0201. This prevents Peachtree
from printing a check. A reference number can only be used once. When finished, click
Save to complete the task.

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Writing Checks

P R O C E S SI N G A P R E P A YM E N T O R D E P O S I T

When you pay a vendor a prepayment or deposit amount, this amount can be applied to
future invoices. To enter a prepayment, select Payments from the Tasks menu. Select a
vendor from the Vendor ID lookup list, and select the Apply to Expenses tab. Select the
Prepayment check box.
The available fields include Description, GL Account, and Amount. Enter a description
of the prepayment in the Description field. Then, select a General Ledger account from
the GL Account lookup list. Finally, enter the amount of the prepayment in the Amount
fields.
To apply a prepayment to a vendor invoice, select Payments from the Tasks menu. When
a vendor with a prepayment is selected from the Vendor ID lookup list, the Apply to
Invoices tab appears. Prepayments are displayed with a minus sign preceding the dollar
amount in the Amount Due column.

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Writing Checks 10
Select the Pay check boxes next to the prepayment and the invoices being paid. The
payment amount will reflect the total of the selected invoices minus the amount of the
prepayment.

If you need to apply the prepayment to the vendor invoices, change the values in the
Amount Paid column as needed so that the payment total is zero. If the prepayment
amount is larger than the invoices due, apply only a portion of the prepayment. This will
leave a partial prepayment amount available for future invoices.
If you need to pay the vendor and apply the prepayment to vendor invoices, change the
values in the Amount Paid column as needed so that the payment total matches your
desired check amount.

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Accounts Payable Reports

ACCOUNTS PAYABLE REPORTS


........................................
Accounts Payable reports provide information about your vendors
and their associated transactions. To preview or print these reports,
select Accounts Payable from the Reports & Forms menu.

Report Descr iptions


• 1099 Vendor Report: Lists 1099 amounts for vendors that meet the lower limits.
• Aged Payables: Shows open, unpaid invoices and unapplied credits by vendor, listed
in the appropriate aging column as of the selected period(s). This report is useful in
resolving questions about individual vendor activity and balances. In addition, the total
outstanding vendor balances can be reconciled with the General Ledger Accounts
Payable balance and used to identify errors in posting.

4/30/03 at 13:37:26.25 Page: 1 of 1


Bellwether Garden Supply
Aged Payables
As of Mar 31, 2007
Filter Criteria includes: 1) IDs from AARON-01 to CLOWNEY-01. Report order is by ID. Report is printed in Detail Format.

Vendor ID Invoice/CM # 0 - 30 31 - 60 61 - 90 Over 90 days Amount Due


Vendor
Contact
Telephone 1

AARON-01 B1000 75.00 75.00


Aaron and Son Contracto 23423 -100.00 -100.00
Wesley Aaron
770-555-0000

AARON-01 -25.00 -25.00


Aaron and Son Contrac

• Cash Disbursements Journal: Lists cash payments with related General Ledger
distributions for a selected date range. This report is useful for verifying General
Ledger postings and tracking cash payments.
• Cash Requirements: Lists outstanding invoices with invoice dates, due dates, and
possible discount amounts if paid within the discount period. This report is useful in
forecasting cash payments for a given period of time.

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• Check Register: Lists all checks posted for the selected date range. This report is
useful for keeping track of checks.
• Electronic Payment Register: Lists all electronic payments, with information about
transmission.
• Items Purchased from Vendors: Displays items and quantities purchased from
vendors. It is useful in analyzing purchase trends and forecasting cash payments.
• Purchase Journal: Lists purchases made with related General Ledger distributions for
a selected date range. This report is useful for verifying General Ledger postings and
tracking purchase transactions.
• Purchase Order Journal: Shows all purchase orders for the period with related
General Ledger distributions. This report is useful for verifying General Ledger
accounts of purchase orders that will be posted once the items are received.
• Purchase Order Register: A chronological listing of all purchase orders and their
Good Thru dates. It is useful for keeping track of outstanding purchase orders.
• Purchase Order Report: Identifies the status of each item on order. Shows the
quantities ordered, the quantities received, and the quantity remaining to be received on
a specific order.
• Vendor Ledgers: Lists detailed vendor transactions and the outstanding balance for
each vendor for a selected date range. Helps resolve questions regarding individual
vendor activity.
• Vendor List: Lists vendor names, contact name, telephone number, and tax ID number.
This report can be used as a vendor telephone list.
• Vendor Management Detail: Use this report to review and manage your payables.
• Vendor Master File List: Lists names, addresses, telephone numbers, credit terms,
and such for vendors. It is useful for verifying that vendors are set up correctly.
• Vendor Transaction History: Lists purchases by vendor with detail invoice
information.

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Accounts Payable Reports

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U SING I NVENTORY
................................... 11
I
nventory tracks the products and services that your company buys and
sells. As inventory-related transactions are posted to the General
Ledger, the quantities and cost of goods amounts for stock and
assembly items are updated.
Adjustments can be made to inventory levels using the Inventory Adjustments
task. Assembly items can be created and tracked in Peachtree and can be built
or unbuilt as they are needed using the Build/Unbuild Assemblies task. These
transactions affect the quantity on hand of an inventory item and post to the
journals, which in turn update the General Ledger. The flow of Inventory tasks
is illustrated below:

I nv e nt o r y Inve nto ry
Adjustments Adjus t ments
Jou r n al

Ge ner al
Led ge r

Asse mblies
B ui ld / U nb ui l d Adjustment
Asse mblies Jo urn al

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Entering Inventory Adjustments

ENTERING INVENTORY ADJUSTMENTS


........................................
It is sometimes necessary to adjust inventory levels so they
agree with the physical count. Inventory adjustments can also be
used to reduce the stock of items used for a job. To enter an
inventory adjustment, select Inventory Adjustments from the
Tasks menu.

Inventory Adjustments Wi ndow


The quantity on hand of an inventory item can be increased or decreased using the
Inventory Adjustments window. To increase the quantity on hand, enter a positive
number in the Adjust Quantity By field and enter the cost of each item in the Unit Cost
field. To decrease the quantity on hand, enter a negative number in the Adjust Quantity

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Entering Inventory Adjustments 11
By field. Peachtree calculates the cost of a negative adjustment using the costing method
assigned to the item.

• GL Source Acct: Inventory adjustments affect the inventory account and the account
entered in this field. When a negative adjustment is made to inventory, the General
Ledger inventory account is credited and this account is debited. When a positive
adjustment is made to inventory, the General Ledger inventory account is debited and
this account is credited.
• Unit Cost: Enter the cost of the item if the adjustment is increasing the quantity on
hand.
You cannot enter a value in this field if your inventory adjustment is negative. When you
enter a negative adjustment to decrease the quantity on hand of an item, the program
calculates the cost based on the chosen costing method.
• Adjust Quantity By: Enter a positive number to increase the quantity on hand. Enter a
negative number to decrease the quantity on hand.

ACTIVITY 34 - ADJUSTING INVENTORY


On February 15th, it was discovered that one Introduction to the Internet book had
been damaged. This item needs to be adjusted out of inventory. Follow these steps to
enter an inventory adjustment:
1 Select Tasks, Inventory Adjustments.
2 Enter bintro1 for the Item ID.
3 Enter a Reference of DAMAGED.
4 Note the Quantity On-Hand displayed for this inventory item. This number is
as of the currently selected date. Enter a Date of 02/15/08 and press ENTER or
TAB to go to the next field. The Quantity On-Hand is now as of 2/15/08.

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Entering Inventory Adjustments

5 Enter a GL Source Acct of 58000.


6 Enter –1.00 in the Adjust Quantity By field. When you press TAB or ENTER
to move to the next field, the New Quantity will show the new quantity on
hand.
7 Click Save to record the adjustment; then click Close.

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Inventory Reports 11
INVENTORY REPORTS
........................................
Inventory reports provide both historical information and
information about the current status of inventory items. To preview
or print these reports, select Inventory from the Reports & Forms
menu.

Report Descr iptions


• Assemblies Adjustment Journal: This report shows the General Ledger transactions
generated when assemblies were built and unbuilt using the Build/Unbuild Assemblies
window. This report can be used to verify the General Ledger posting accounts used
during assembly adjustments.
• Assembly List: Provides a listing of all inventory items set up with the Assembly Item
Class. This report lists each assembly showing its components and the quantities
required. It is useful in ensuring that assemblies were set up correctly.
• Bill of Materials Report: Lists assemblies and information on components including
the number and cost of each component and the estimated cost to build an assembly.
• Buyer Report: Lists items, their descriptions, the buyer ID, and preferred vendor
information. This report is very useful for determining who is responsible for items that
are low in stock.
• Component Use List: Provides a list of components used in assemblies, the
assemblies they are used in, and the quantity of the components required for the
assembly. You can order the report by either the Component ID or the Assembly ID.
• Cost of Goods Sold Journal: This report lists the total cost for each item sold at the
time of sale and the accounts that were debited or credited. It is used to verify that the
General Ledger postings for cost of goods sold and inventory accounts for sales
transactions are correct.

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Inventory Reports

• Inventory Adjustment Journal: Allows you to reconcile inventory adjustments and


verify General Ledger posting accounts. This report is useful in tracking changes in
inventory quantities.
• Inventory Profitability Report: Displays each stock or assembly item with units sold,
costs, gross profit, and gross profit percentage for the selected accounting period(s).
This report is useful for identifying items that contribute the most to gross profit and
item sales information.

4/30/03 at 13:56:52.14 Page: 1 of 1


Bellwether Garden Supply
Inventory Profitability Report
For the Period From Mar 1, 2007 to Mar 31, 2007
Filter Criteria includes: 1) IDs from ADMN-01000 to AVRY-10050-LG-PYR; 2) Stock/Assembly. Report order is by ID. Report is printed with
Truncated Long Descriptions.

Item ID Units Sold Sales($) Cost($) Gross Profit($) Gross Profit(% % of Total
Item Description

AVRY-10050
Prefabricated Birdhouse

AVRY-10050-LG-CSL 3.00 239.97 51.75 188.22 78.43 25.00


Prefabricated Birdhouse

AVRY-10050-LG-EFL 3.00 239.97 51.75 188.22 78.43 25.00


Prefabricated Birdhouse

AVRY-10050-LG-HTL 6.00 479.94 103.50 376.44 78.43 50.00


Prefabricated Birdhouse

AVRY-10050-LG-PYR
Prefabricated Birdhouse

12.00 959.88 207.00 752.88 100.00

• Inventory Reorder Worksheet: Serves as a guide to determining the number of items


to reorder based on current quantities and back orders and the established minimum
stock level. Only stock and assembly items are listed in this report.
• Inventory Stock Status Report: Serves as a reorder report to identify inventory items
on hand for the current period and identifies balances that are below the minimum
stocking level. Only stock and assembly items are listed in this report.
• Inventory Unit Activity Report: Shows the beginning quantity, purchases, sales, and
other information for stock or assembly inventory items for the selected accounting
period(s). This report is useful in investigating discrepancies about an item's quantity
on hand.
• Inventory Valuation Report: Shows quantity on hand of stock and assembly
inventory items and the item value of what is in stock. Provides detail about the
quantities and inventory value as of the selected accounting period.
• Item Costing Report: Shows cost and quantity information for stock and assembly
inventory items for the selected date range. Shows history for all sales, purchases,
inventory adjustments, assembly activity, and automatic cost adjustments made by

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Inventory Reports 11
Peachtree. Useful for investigating discrepancies related to an item’s quantity on hand
or value.
• Item List: Provides a list of inventory items and assemblies. This report can be used to
track quantities on hand of items and assemblies.
• Item Master List: Shows all information entered concerning the inventory items in the
Maintain Inventory Items window. This report is useful for verifying that items were
set up correctly. This information is also useful if you wish to export Peachtree data for
use in other applications.
• Item Price List: Serves as a company price sheet for inventory items. This report
includes fields such as item ID, description, unit of measure, and sales prices for all
pricing levels.
• Physical Inventory List: This report lists the item ID, description, and unit of
measure. It also includes a space to write the item count. It serves as a worksheet for
counting inventory items.
• Serial Number History Report: Lists the status of serial numbers and their
transaction history, including the cost, type of transaction, transaction reference
number, and transaction date.
• Shipment Register: Lists shipments made within Peachtree, including the shipment
date, shipment status, the ship to name, and the total. This report can be ordered by
shipment number, Shipment date, or Ship to ID.

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U SING A CCOUNTS R ECEIVABLE
................................... 12
A
ccounts Receivable transactions can be entered in a variety of
ways. Quotes can be entered for customers and can be converted to
Sales Orders or Sales Invoices when the customer commits to the
sale. Sales Orders can be entered when customer orders are received.
Sales/Invoicing allows you to fill orders or enter invoices unrelated to orders.
Sales invoices can be paid using the Receipts task. Finance charges can be
applied to outstanding customer balances using the Apply Finance Charges
task. Each transaction updates the journals, which in turn update the General
Ledger. However, Quotes and Sales Orders do not update the General Ledger.
Accounts Receivable reports organize the transactions entered and display the
information in a way that helps you better manage your customer-related
tasks. The flow of Accounts Receivable tasks is illustrated below:

Quot es

Sales Or der s Sales Or de r


Jo urn al

Sale s/ In vo ic in g Gen era l


Sales
Credit Me mos L ed ger
Jou r n al

Apply
F in an ce
Cha rge s R eceip ts C ash Re ceipts
Jo urn al

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ENTERING QUOTES
........................................
Customers or prospects often request pricing
information about goods or services that a company
sells. Since they are not receiving any products or
services, they are provided with a quote.
Quotes do not affect the General Ledger. Quotes can
be converted to sales orders or sales invoices at any
time. To enter a quote, select Quotes/Sales
Orders/Proposals, Quotes from the Tasks menu.

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Quotes Wi ndow
The Quotes window is used to enter and print quotes for customers. Fields of interest are
explained below:

• Good thru: By default, this date is one month past the quote date. If necessary, you can
enter a different date.
• Quote No.: If you plan to print the quote, leave this field blank. You will enter it during
the print routine. If this quote was manually written, enter the quote number.
• Drop Ship: Select this check box if the items on the quote are to be drop-shipped
directly from the vendor to the customer.
• Description: Displays the description for the item selected. You can change the
description or enter a description when entering items not tracked through inventory.
• Unit Price: Displays the sales price of the item selected. If the item ordered is not
tracked through inventory, enter a sales price. If necessary, this price can be changed.
For items tracked through inventory, you can select a different sales price from the
drop-down list.
• Tax: Displays the item tax type for the item selected. If the item ordered is not tracked
through inventory, select an item tax type. If necessary, the item tax type can be
changed.

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ACTIVITY 35 - CREATING A QUOTE


Two customers called for quotes related to their Web sites. Both customers will call
back when they are ready to have the work done. Follow these steps to enter quotes:
1 Select Tasks, Quotes/Sales Orders/Proposals, Quotes.
2 Select bishopk from the Customer ID lookup list.
3 Enter 02/05/08 in the Date field. The Good thru field will be a date thirty days
later than the date you enter. Leave it set to the default date.
4 If you do not want to print the quote, enter a Quote # of 300.
5 If you do want to print the quote, leave the Quote # blank.
6 Enter a Quantity of 3.00 and an Item of htmlprogp. The Description, GL
Account, Unit Price, Tax, and Amount fields will not be changed.
7 If you do not want to print the quote, click Save.
8 If you want to print the quote, click the Print button. Enter 300 for the First
Quote Number, and click Print. The quote will post automatically after it
prints.
9 Using these steps as a guide, enter the next quote:

Customer ID langley

Date 02/08/08

Quote # 301

Line 1 Quantity 25.00

Line 1 Item htmlprogc

10 If you do not want to print the quote, click Save, then Close.
11 If you want to print the quote, click the Print button. Enter 301 for the First
quote number, and click OK. The quote will post automatically after it prints.
Then click Close.

Converting a Quote
After a customer accepts a quote, it can be converted to a sales order or an invoice using
these steps:
• Select Quotes/Sales Orders/Proposals, Quotes from the Tasks menu. The Quotes
window opens.

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• Click List and select the quote to be converted.
• Click the Convert button.

There are various options on the Convert Quote window. Descriptions of these three
options and their associated fields follow:
• Sales/Invoice: Select this option to convert a quote to an invoice. If this option is
selected, you can use the Invoice # field.
- Invoice #: Enter the invoice number--if one exists for this quote and it does not need
to be printed.
• Sales/Invoice and Print Now: Select this option to convert a quote to an invoice and
then print the invoice. You will be given the opportunity to enter the invoice number
prior to printing.
• Sales Order: This option converts a quote to a sales order. When a quote is converted
to a sales order, Peachtree uses the next available sales order. This number is displayed
in the SO # field on the Convert Quotes window and can be changed if necessary.
- SO #: Enter the sales order number--if one exists for this quote and it does not need
to be printed.
• Proposal: Select this option to convert the quote into a proposal, which you can bill in
Sales Invoicing.

ACTIVITY 36 - CONVERTING A QUOTE TO A SALES ORDER


Langley Enterprises called to approve the work ordered for its Web site on quote 301.
For commercial Web site work, Abracadabra creates sales orders that are given to the
programmers. Once the programmers are finished with the order, they return the
orders and the customer is invoiced. Follow these steps to convert a quote to a sales
order:
1 Select Tasks, Quotes/Sales Orders/Proposals, Quotes.

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2 Click the List button to display the List window, which provides a list of quotes
entered.
3 Select quote 301 and click Open or double-click the quote.
4 To convert the quote, click the Convert button.
5 Select the Sales Order option.
6 Enter SO # 200, and click OK. The quote is now a sales order. Click Close on
each window.

ACTIVITY 37 - CONVERTING A QUOTE TO A SALES INVOICE


Kelly Bishop called to approve the work ordered for her Web site. For personal Web
site work, Abracadabra bills the client immediately and gives a copy of the invoice to
the programmers. Once the programmers are finished, they return the sales invoice to
the accounting manager. Follow these steps to convert a quote to a sales invoice:
1 Select Tasks, Quotes/Sales Orders/Proposals, Quotes.
2 Click the List button to display the List window, which provides a list of quotes
entered.
3 Select quote 300 either by clicking once and selecting Open or by double-
clicking.
4 To convert the quote, click the Convert button.
5 If you do not want to print the invoice, select the Sales/Invoice option. Enter
Invoice # 22000 and click OK. The quote is now an invoice. Click Close on
each window.
6 If you want to print the invoice, select the Sales/Invoice and Print Now option
and click OK. Enter 22000 for the First Invoice Number, and click Print. The
invoice will post automatically after it prints. Click Close on each window.

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ENTERING SALES ORDERS
........................................
Sales orders are used when a customer agrees to
purchase items or services that are not shipped
immediately. The Sales Orders window allows
partial orders to be shipped and backorders to be
tracked. Using the Sales Orders window, items can
be shipped from inventory as they become available.
To enter a sales order, select Quotes/Sales
Orders/Proposals, Sales Orders from the Tasks
menu.

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Sales Orders Wi ndow


The Sales Orders window is used to enter and print sales orders for products and services
ordered by customers. Fields of interest are explained below:

• Ship By: Enter a date that the order should be shipped by.
This date cannot be prior to the Order Date.
• SO No.: Displays the sales order number assigned by Peachtree. This number is
increased by one automatically each time a sales order is posted. This number can be
changed, but you cannot post duplicate sales order numbers. This field will be blank for
the first sales order entered.
• Close SO: Select this check box to manually close a sales order. A sales order is
automatically closed after all items are shipped.
• Description: Displays the description for the item selected. You can change the
description or enter a description when ordering items not tracked through inventory.
• Unit Price: Displays the sales price of the item selected. If the item ordered is not
tracked through inventory, enter a sales price. If necessary, this price can be changed.
For items tracked through inventory, you can select a different sales price from the
drop-down list.
• Tax: Displays the item tax type for the item selected. If the item ordered is not tracked
through inventory, select an item tax type. If necessary, the item tax type can be
changed.

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ACTIVITY 38 - ENTERING A SALES ORDER
An order was received from Marriott for copies of Introduction to the Internet. A
sales order will be created, and the books will be shipped at a later time. Follow these
steps to enter a sales order:
1 Select Tasks, Quotes/Sales Orders/Proposals, Sales Orders.
2 Select marriottw from the Customer ID lookup list.
3 Enter 02/08/08 as the Date.
4 Enter 02/08/08 in the Ship By field.
5 Ensure that 201 is in the SO # field. Note that Peachtree automatically enters
201 based on the quote that was converted to a sales order.
6 Enter a Quantity of 5.00 and an Item of bintro1.
7 Enter 12.00 in the Freight Amt field.
8 If you do not want to print the sales order, click Save, then Close.
9 If you want to print the sales order, click the Print button. Click Print again.
The sales order will post automatically after it prints. Then click Close.

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Entering Sales Invoices

ENTERING SALES INVOICES


........................................
Use the Sales/Invoicing window to enter invoices and bills for
customers. Sales/Invoicing is also used to invoice customers
for items that were entered on sales orders. Unlike quotes and
sales orders, invoices update the General Ledger. To enter
invoices, select Sales/Invoicing from the Tasks menu.

Sales/Invoicing Window
The Sales/Invoicing window is used to enter sales to customers. The header area is used
to enter customer-specific information. The Apply to Sales tab is used to record customer

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invoices without a sales order on file. The Apply to Sales Order # tab is used to ship
inventory items from sales orders. Each tab is explained below:

HEADER FIELDS
• Invoice No.: If you plan to print the invoice, leave this field blank. You will enter it
during the print routine. If this invoice was manually written, enter the invoice number.
• Terms: Shows the customer terms as set up in the customer record. To change the
terms, click the arrow button to display the Terms Information window. Make any
changes and click OK.

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A P P L Y T O SA L ES T A B
Direct sales to customers are entered on the Apply to Sales tab. Fields of interest are
described below:

• Description: Displays the description for the item selected. You can change the
description or enter a description when ordering items not tracked through inventory.
• GL Account: Displays the account set up for the item selected. When ordering items
not tracked through inventory, the account displayed is the customer’s sales account. If
necessary, enter a different account.
• Unit Price: Displays the sales price of the item selected. If the item ordered is not
tracked through inventory, enter a sales price. If necessary, this price can be changed.
For items tracked through inventory, you can select a different sales price from the
drop-down list.

FOOTER FIELDS
• Apply Tickets/Expenses: Click the arrow button to open the Apply Tickets/Expenses
window on which you can select which time tickets, expense tickets, and reimbursable
expenses should be applied to the invoice.
• Freight: Enter the shipping amount. You can click on this link and Peachtree will open
the Shipments window, automatically filling in appropriate fields with information
from the current Sales invoice.

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• Amount Paid at Sale: Click this arrow button to open the Receive Payment window
on which you can enter a receipt amount at the time the invoice is entered. You can
enter a partial or full payment to an invoice.

- Deposit Ticket ID: Enter a reference to group this deposit with other deposits in
Account Reconciliation.
- Reference: Enter a reference number for the receipt in this field. A reference
number must be entered before the transaction can be posted.

ACTIVITY 39 - ENTERING A SALES INVOICE


Bob Turner stopped by the office to purchase a copy of Surfing the Net. He wrote
check 4362 for the book and would like a copy of the invoice for his records. An
invoice will be entered and paid for this sale. Follow these steps to enter an invoice:
1 Select Tasks, Sales/Invoicing.
2 Enter turnerb in the Customer ID field.
3 Enter a Date of 02/10/08.
4 If you do not want to print the invoice, enter an Invoice # of 22001.
5 If you want to print the invoice, leave the Invoice # blank.
6 Enter a Quantity of 1.00 and an Item of bsurf1.
7 Click the Amount Paid at Sale arrow button. The Receive Payment window
opens.
8 Enter a Reference of 4362.
9 Enter a Receipt Amount of 35.29 and ensure account 10200 is selected for the
Cash Account.
10 Click OK to record the payment amount.

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11 The Net Due should be 0.00 at the bottom of the window.


12 If you do not want to print the invoice, click Save, then Close.
13 If you want to print the invoice, click the Print button. Enter 22001 for the
First Invoice Number, and click Print. The invoice will post automatically
after it prints. Then click Close.

A P P L Y T O SA L ES O R D E R # T A B
When a customer with one or more open sales orders is selected, the Apply to Sales
Order # tab appears. Fields of interest are described below:

• Apply to Sales Order #: Select the sales order being filled from the drop-down list.
All open sales orders for the selected customer are listed.
• Remaining: Displays the number of items that remain outstanding on the sales order.
This field cannot be changed on this window.
• Shipped: Enter the quantity that will be shipped to the customer. This is also the
number of items for which the customer will be invoiced.
• Amount: Displays the value of the Shipped quantity times the Unit Price. When
shipping an item not tracked in inventory, enter the total price of the item in this field.

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ACTIVITY 40 - FILLING A SALES ORDER
The order for Langley Enterprise’s Web site work is completed. Follow these steps to
fill a sales order:
1 Select Tasks, Sales/Invoicing.
2 Enter langley for the Customer ID. The Apply to Sales Order No. tab appears
below, indicating that the selected customer has open sales orders.
3 Enter 02/09/08 in the Date field.
4 If you do not want to print the invoice, enter an Invoice # of 22002.
5 If you want to print the invoice, leave the Invoice # blank.
6 Select sales order 200 from the Apply to Sales Order No. drop-down list. The
sales order items list below.
7 Enter 5.00 in the Shipped field.
8 If you do not want to print the invoice, click Save, then Close.
If a warning appears stating that posting this invoice will exceed the customer’s credit
limit, click Yes to confirm that you want to post the invoice.
9 If you want to print the invoice, click the Print button. Enter 22002 for the
First Invoice Number, and click Print. Then click Close.

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Entering Receipts/Receive Payments

ENTERING RECEIPTS/RECEIVE PAYMENTS


........................................
When customers pay invoices and bills, the amount they
pay is entered on the Receipts window. Cash sales can be
entered on this window if a customer does not require a
printed invoice. To enter customer payments, select
Receipts from the Tasks menu.

Receipts Window
The Receipts window is used to enter cash sales and deposits without invoices, as well as
to apply payments to customer invoices. When a Customer ID is entered, all unpaid sales
invoices appear. You can enter payments for the entire amount or partial amounts. Credit

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memos and prepayments may also be applied to invoices on this window. Each tab is
described below:

HEADER FIELDS
• Deposit Ticket ID: Enter a reference to group this deposit with other deposits in
Account Reconciliation. Receipts with the same Deposit Ticket ID will be grouped as a
single deposit in Account Reconciliation.
Leave the Deposit Ticket ID field blank if you plan to use Select for Deposit to group your
receipts in Account Reconciliation.
• Customer ID/Vendor ID: Select to enter a receipt for a customer or vendor. Then,
enter the ID for the customer or vendor. To enter a receipt for a customer who is not in
the customer list, leave this field blank and enter the customer name in the Name field.
Choose Vendor ID to deposit a refund received from a vendor.
• Reference: Enter the check number or another reference for tracking this receipt.
• Receipt Number: Enter the number corresponding to the receipt number on your
preprinted form.
• Process Credit Card: Select this button to open a window in which credit card
payment information can be entered. Information entered on the Payment Defaults tab
in the customer file will appear automatically.

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A P P L Y T O RE V E N U ES T A B
Select the Apply to Revenues tab to enter receipts for items that are not associated with
invoices. When a customer without open invoices is selected, this tab automatically
appears. Payments can also be received from customers who are not set up by leaving the
Customer ID field blank and entering the customer’s name in the Name field. Deposits
made in advance are applied to customer records by selecting the Prepayment check box.
Fields of interest are described below:

• Prepayment: Select this check box to enter a deposit from a customer. After a
prepayment has been posted, it can be applied to one or more of the customer’s
outstanding invoices on the Apply to Invoices tab.
• Description: Displays the description for the item selected. You can change the
description or enter a description when ordering items not tracked through inventory.
• GL Account: Displays the account set up for the item selected. When ordering items
not tracked through inventory, the account displayed is the customer’s sales account. If
necessary, enter a different account.
• Unit Price: Displays the sales price of the item selected. If the item ordered is not
tracked through inventory, enter a sales price. If necessary, this price can be changed.
For items tracked through inventory, you can select a different sales price from the
drop-down list.

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A P P L Y T O I NV O I C E S T A B
Select the Apply to Invoices tab to receive payments against customer invoices. Fields of
interest are described below:

• Discount: Displays the amount of the discount if the invoice qualifies for a discount. If
necessary, the amount in this field can be changed. A discount amount cannot be
entered for a partially paid invoice.
• Amount Paid: Enter the amount to apply to the invoice. When you enter an amount,
the Pay check box will be selected automatically.
• Pay: Select this check box to pay the invoice in full.

ACTIVITY 41 - ENTERING CUSTOMER PAYMENTS


A check has been received that is enough to pay outstanding invoices for Langley
Enterprises. Follow these steps to enter a customer payment:
1 Select Tasks, Receipts.
2 Select langley from the Customer ID lookup list. The Apply to Invoices tab
appears below, indicating that the selected customer has outstanding invoices.
3 Enter 304 in the Reference field and 10210 in the Receipt Number field.
4 Enter 02/12/08 in the Date field.
5 On the Apply to Invoices tab, select the Pay check box for invoices 21009,
21056, and 21077.

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6 Click Save, then Close.

APPLY TO VENDOR ACCOUNT TAB


If you select a Vendor ID on a receipt, the Apply to Vendor Account tab appears. This
tab can be used to record vendor refunds.

Using the Apply to Vendor Account tab in conjunction with the Vendor Credit Memo
window allows both the vendor-issued credit memo and the vendor receipt to be recorded.
The two transactions can be reconciled on the Payments window. To enter these
transactions:
• Enter the credit memo on the Apply to Purchases tab in the Vendor Credit Memo
window. This creates a debit to Accounts Payable and a credit to an expense account.
• Record the receipt/refund on the Apply to Vendor Account tab in Receipts. This
creates a debit to cash and a credit to Accounts Payable.
• Reconcile these two transactions in Payments. Select the Pay check box for both the
credit memo and the receipt to create a zero dollar check. Enter a unique identifier in
the Reference field.

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Handli ng Speci fic Types of Recei pts

ENTERING A PREPAYMENT OR DEPOSIT

When a customer pays a prepayment or deposit amount, this amount can be applied to
future invoices. To enter a prepayment, select Receipts from the Tasks menu. Select a
customer from the Customer ID lookup list and select the Apply to Revenue tab. Select
the Prepayment check box.
The available fields include Description, GL Account, and Amount. Enter a description
of the prepayment in the Description field. Then, select a General Ledger account from

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the GL Account lookup list. Finally, enter the amount of the prepayment in the Amount
field.

To apply a prepayment to a customer invoice, select Receipts from the Tasks menu.
When a customer with a prepayment is selected from the Customer ID lookup list, the
Apply to Invoices tab will appear. Prepayments appear with a minus sign preceding the
dollar amount in the Amount Due column.
Select the Pay check boxes next to the prepayment and the invoices being paid. The
receipt amount will reflect the total of the selected invoices minus the amount of the
prepayment.
If you need to apply the prepayment to the customer invoices, change the values in the
Amount Paid column as needed so that the receipt total is zero. If the prepayment amount
is larger than the invoices due, apply only a portion of the prepayment. This will leave a
partial prepayment amount available for future invoices.

ACTIVITY 42 - ENTERING A CUSTOMER PREPAYMENT


Bob Turner made a $200.00 deposit for future work on his Web site. This deposit will
be entered as a prepayment that can be applied to future invoices. Follow these steps
to enter a prepayment:
1 Select Tasks, Receipts.
2 Enter a Customer ID of turnerb.

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3 Bob paid with check 4363. Enter 4363 in the Reference field.
4 Enter Receipt Number 10211.
5 Enter a Date of 02/10/08.
6 Ensure the Cash Account is set to 10200.
7 On the Apply to Revenues tab, select the Prepayment check box.
8 On the Apply to Revenues tab, enter a GL Account of 24400.
9 Enter 200.00 in the Amount field.
10 The Receipt Amount should be 200.00.
11 Click Save; then click Close.

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Accounts Receivable Reports

ACCOUNTS RECEIVABLE REPORTS


........................................
Accounts Receivable reports provide information about your
customers and their associated transactions. To preview or print
these reports, select Accounts Receivable from the Reports &
Forms menu.

Report Descr iptions


• Aged Receivables: Shows open, unpaid invoices or unapplied credits by customer,
listed in the appropriate aging column as of the selected date. Helps resolve questions
regarding individual customer activity and balances. Useful in determining customer
bad debt so that the proper year-end adjustments can be made. The total outstanding
customer balances can be reconciled with the General Ledger Accounts Receivable
balance and used to identify errors in posting.
• Cash Receipts Journal: Lists cash deposits with related General Ledger distributions
for a selected date range. Displays the individual amounts that make up a deposit and
other information the bank statement does not usually provide. Useful for verifying
General Ledger postings and tracking cash deposits.

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• Customer Ledgers: Lists detailed customer transactions and the outstanding balance
for each customer for a selected date range. Helps resolve questions regarding
individual customer activity.

4/30/03 at 15:09:07.78 Page: 1 of 1


Bellwether Garden Supply
Customer Ledgers
For the Period From Mar 1, 2007 to Mar 31, 2007
Filter Criteria includes: 1) IDs from ALIGOOD-01 to COMMON-01. Report order is by ID. Report is printed in Detail Format.

Customer ID Date Trans No Type Debit Amt Credit Amt Balance


Customer

ALIGOOD-01 3/4/07 10332 SJ 129.97 129.97


Aligood Chiropractic 3/15/07 4545 CRJ 129.97 0.00

ARCENEAUX-01 3/4/07 10329 SJ 59.98 59.98


Arceneaux Software 3/17/07 CCM4008 SJ 49.99 9.99
3/18/07 10317 SJ 49.99 59.98

ARMSTRONG-01 3/1/07 Balance Fwd 99.97


Armstrong Consulting 3/2/07 CCM4002 SJ 99.97 0.00
3/17/07 CCM4007 SJ 49.99 -49.99
3/18/07 10314 SJ 49.99 0.00
3/21/07 10336 SJ 63.49 63.49

• Customer List: Lists the name, address, telephone number, and resale number of each
customer. This report can be used as a customer telephone list.
• Customer Management Detail: Use this report to review your receivables.
• Customer Master File List: Shows pertinent customer information. It is useful for
verifying that customers were set up correctly. This information is also useful if you
wish to export Peachtree data for use in other applications.
• Customer Sales History: Shows total sales by customer, including both credit and
cash sales. This report includes transactions entered on the Sales/Invoicing window, as
well as direct sales that are not associated with an invoice.
• Customer Transaction History: Lists invoices by customer and other transactions
associated with that invoice.
• Invoice Register: Chronologically lists all invoices and their amounts for a selected
date range. This report is useful for keeping track of outstanding invoices.
• Items Sold to Customers: Lists quantity, amount, and profit of items sold to
customers. This report is useful in analyzing sales trends and forecasting cash receipts.
• Picklist Report: Once a sales order has been entered in Peachtree, you can use this
report to pull items to fill sales orders.
• Proposal Register: Lists proposals and their status (opened or closed).
• Proposal Report: Lists all open, accepted proposals showing the proposal amount,
previously billed amount and amount remaining to be billed.

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• Prospect List: Shows all prospect names, contacts, and telephone numbers. Can be
used as a sales tool to identify and contact potential customers.
• Quote Register: Identifies open quotes along with their Good Thru date. It can be used
as a sales tool by listing customers with open quotes who need to be contacted.
• Sales Backorder Report: Reflects pending shipments for inventory items on sales
orders and proposals. You can use this report to identify the items that have not been
shipped or items with insufficient quantities on hand.
• Sales Journal: Lists all sales invoices for the selected date range with related General
Ledger distributions. Useful for reconciling sales and for verifying postings.
• Sales Order Journal: Lists all sales orders for the period with related General Ledger
distributions. This report is useful for verifying General Ledger accounts of sales
activities that will be posted once invoiced.
Sales orders do not create actual entries to the General Ledger. Transactions are posted
to the General Ledger once you have invoiced the customer.
• Sales Order Register: A chronological listing of all sales orders and their status. This
report is useful for keeping track of outstanding sales orders.
• Sales Order Report: Identifies the status of each item on an order. It shows quantities
ordered and shipped, and the quantity remaining to be shipped on a specific order.
• Sales Rep Reports: Shows commissioned sales, noncommissioned sales, and total
sales for all sales reps for the time period specified. This report also includes a percent-
of-total column. This column, based on the sales rep's total sales, shows you the
percentage of the company's total sales this rep earned. Useful in identifying sales
productivity by sales rep.
• Sales Taxes: Lists each Sales Tax with all corresponding Sales Tax Agencies, their tax
rate, and payment information. This report can be used to verify additions and changes
to agencies and rates.
• Taxable/Exempt Sales: Provides useful documentation in resolving sales tax report
issues. Use in preparing sales tax reports required by the government before year-end.

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U SING P AYROLL
................................... 13
P
ayroll tasks are relatively simple once payroll setup is complete. In
addition to the basic setup, deductions specific to your company can
be set up in Payroll as needed. These include flat-rate deductions
and calculated deductions.
Payroll Entry allows you to enter and print checks for employees. When a
check is entered, the gross pay and deduction amounts are calculated
automatically based on the employee’s setup. When necessary, checks can be
voided using the Void Checks task. Checks update the Payroll Journal, which
in turn updates the General Ledger.
Payroll Reports organize check information in a variety of formats. In
addition, yearly totals for payroll fields are tracked for each employee
allowing W-2s, 941s, and other forms to be printed. The flow of Payroll tasks
is illustrated below:

Payr oll Pa yro l l General


E n tr y Jo urn al Le dg er

Vo id
Che cks

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Paying an Employee

PAYING AN EMPLOYEE
........................................
The Payroll Entry window is used to pay individual
employees. It is also used to enter handwritten payroll
checks. To pay an individual employee, select Payroll
Entry from the Tasks menu.

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Payroll Entry Window
The Payroll Entry window is used to enter employee paychecks. Fields of interest are
described below:

• Check Number: If you plan to print the check, leave this field blank. You will enter it
during the print routine. If this check was manually written, enter the check number.
• Pay Period End: Enter the pay period ending date for this check.
This date controls which time tickets are used for calculating hours for employees with a
pay method of Hourly--Time Ticket Hours.
• Employee/Employer Fields: This section controls Employee and Employer
deductions, additions, and exceptions.
- Amount: Displays the amount assigned to the field or the amount that Peachtree
calculated for the payroll field. The amounts in these fields can be changed, if
necessary.

ACTIVITY 43 - PAYING INDIVIDUAL EMPLOYEES


Salaried employees are paid bi-weekly and hourly employees are paid weekly. As of
February 11th there are four employees to pay, 2 salary and 2 hourly. Follow these
steps to pay employees:
1 Select Tasks, Payroll Entry.

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Paying an Employee

If you have not registered your Peachtree product or purchased any of Peachtree’s
Payroll Solutions (Peachtree Simple Payroll or Peachtree Select Payroll), you may not be
able to perform this exercise. If you receive a message reminding you to register your tax
service, click OK..
2 When prompted to select a cash account, select Payroll Checking Account and
click OK.
The first time you enter a paycheck, you will be prompted to select a cash account. If you
have already entered a paycheck, the Payroll Entry window appears.
3 Enter bentleyc for the Employee ID. Press ENTER or TAB to move to the next
field. The gross bi-weekly wage amount appears in the Salary Amounts
section, and each payroll field is calculated in the Taxes-Benefits-Liabilities
section.
If your federal and state tax amounts are zero or if you receive multiple messages that a
calculation cannot be found, this indicates that you have not subscribed to Peachtree’s
Payroll Tax Service (Peachtree Simple Payroll or Peachtree Select Payroll). You will not
be able to perform this activity.
4 If you do not want to print the check, enter a Check Number of 1206.
5 If you want to print the check, leave the Check Number field blank.
6 Enter 02/08/08 in the Date field.
7 Ensure the Cash Account selected is 10300.

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8 Enter 02/08/08 in the Pay Period Ends field.

9 If you do not want to print the check, click Save.


10 If you want to print the check, click the Print button. Enter 1206 for the First
Check Number, and click Print. The check will post automatically after it
prints.
11 Using these steps as a guide, enter paychecks for these employees:

Employee #1 Employee #2 Employee#3

Employee ID davisj evank windsorb

Check Number 1207 1208 1209

Date 02/08/08 02/08/08 02/08/08

Cash Account 10300 10300 10300

Pay Period End 02/08/08 02/08/08 02/08/08

12 Click Close when finished.

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13 USING PAYROLL
Payroll Reports

PAYROLL REPORTS
........................................
Payroll reports provide information about each employee and their
earnings history. To preview or print these reports, select Payroll
from the Reports & Forms menu.

Report Descr iptions

• Current Earnings Report: Lists payroll checks for each employee for the selected
accounting period, normally the current month. Totals are provided for all payroll

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Payroll Reports 13
fields and net pay. This report is useful for verifying deduction and addition amounts
on paychecks.

5/1/03 at 13:36:54.96 Page: 1 of 1


Bellwether Garden Supply
Current Earnings Report
For the Period From Mar 1, 2007 to Mar 31, 2007
Filter Criteria includes: 1) Employee IDs from ACHRISTY-01 to ACHRISTY-01. Report order is by Employee ID. Report is printed in Detail Format.

Employee ID Date Amount Gross Fed_Income Soc_Sec Medicare


Employee Reference State K401 VAC_Accrue VAC_Taken
SS No VAC_Remain Sick Medical Dental
Soc_Sec_ER Medicare_ER FUTA_ER SUI_ER
K401_ER

ACHRISTY-01 3/15/07 809.22 1,120.00 -131.86 -69.44 -16.24


Amanda W. Chrisy 2092 -48.44 -44.80 3.08
111-22-1337 3.08
-69.44 -16.24 -8.96 -33.60

809.22 1,120.00 -131.86 -69.44 -16.24


Total 3/1/07 thru 3/3 -48.44 -44.80 3.08
3.08
-69.44 -16.24 -8.96 -33.60

Report Date Total for 809.22 1,120.00 -131.86 -69.44 -16.24


Amanda W. Chrisy -48.44 -44.80 3.08
3.08
-69.44 -16.24 -8.96 -33.60

YTD Total for 809.22 1,120.00 -131.86 -69.44 -16.24


Amanda W. Chrisy -48.44 -44.80 3.08
3.08
-69.44 -16.24 -8.96 -33.60

• Employee Compensation Report: Lists raise dates, amounts, and percentages in


detail (by employee). This report should be printed in landscape mode.
• Employee List: Lists names, addresses, social security numbers, federal filing status,
and pay type of employees. This report is useful in verifying employees were set up
correctly. It can be printed before processing W-2s to verify that employee names,
addresses, and social security numbers are correct. This information is also useful if
you wish to export Peachtree data for use in other applications.
• Exception Report: Identifies incorrect withholding amounts so you can easily prepare
the 941. This report shows each employee's total withholding amount for a quarter, as
well as the taxable gross, the calculated amount of the tax, and the difference between
them. If there is a difference between the calculated and withheld amounts, you have
several options to correct the difference before you file the 941.
• Payroll Check Register: Lists all paychecks for the selected date range. Useful in
tracking payroll checks.
• Payroll Journal: Lists payroll transactions with related General Ledger distributions
for a selected date range. Displays the individual deduction and addition amounts that

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Payroll Reports

make up a paycheck. Useful for verifying General Ledger postings and identifying
incorrect account entries.
• Payroll Register: Chronologically lists paychecks and payroll field information for a
selected date range. This report can be used to check manually entered and printed
paychecks before distributing them to employees.
• Payroll Tax Report: Lists gross wage, taxable gross, and excess gross amounts for
each employee for the selected tax. This report is useful for determining the amount of
tax owed each quarter.
• Quarterly Earnings Report: Lists payroll checks for each employee for the selected
quarter. Totals are provided for all payroll fields and net pay. This report is useful for
verifying deduction and addition amounts on paychecks.
• Tax Liability Report: Lists gross wages, taxable gross wages, taxes withheld, and
liability amounts for each employee and each tax. This report can be used when
completing tax forms.
• Vacation and Sick Time Report: Lists vacation and sick time that is accrued and
used, as well as each employee’s balance.
• Yearly Earnings Report: Lists payroll checks for each employee for the selected year.
Totals are provided for all payroll fields and net pay. This report is useful for verifying
deduction and addition amounts on paychecks.

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U TILITIES AND S PECIAL P ROCESSING
................................... 14
T
his chapter includes topics that are not easily categorized within any
one specific area in Peachtree. Some topics are necessary to use
Peachtree properly, while others can greatly improve your efficiency
when performing daily tasks. Topics include:

• Change a Record ID
• Void Transactions
• Find Transactions
• Account Reconciliation
• Backup and Restore
• Business Dashboard

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14 UTILITIES AND SPECIAL PROCESSING
Change a Record ID

CHANGE A RECORD ID
........................................
You can modify IDs for GL accounts, customers, vendors, inventory items, employees,
jobs, phases, and cost codes, if you want to change the way you identify these data
records. When you change an ID, all data records, historic transactions, and new
transactions associated with the changed record will reflect the new ID.
• The Change ID button is located on the toolbar found on the Maintain Chart of
Accounts, Maintain Customers, Maintain Vendors, Maintain Inventory Items,
Maintain Employees/Sales Reps, Maintain Jobs, Maintain Phases, and Maintain
Cost Codes windows. Select a record in the maintenance window and click this button
to open the Change ID window.

Change ID Window

The Current ID for the selected record appears in the top field. Enter the New ID for the
selected record in the bottom field and click OK to accept the change.

ACTIVITY 44 - CHANGING A VENDOR ID


Levit Utility has changed its name to Southeast Electric and Gas Supply. It has been
decided that along with the name change, the ID will need to be changed.
1 Select Maintain, Vendors.
2 Choose 02levit from the Vendor ID lookup list.
3 Select the Change ID button.
4 In the Enter New Vendor ID field, enter 02southeast.
5 Click OK.
6 In the Name field, enter Southeast Electric and Gas.
7 Click Save, then Close.

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Adding Records on the Fly 14
ADDING RECORDS ON THE FLY
........................................
You can easily create a new record while entering a transaction. When you enter an ID
that is not in the existing database, the field will turn dark blue and flash three times. You
can continue to enter the transaction detail. When the transaction is saved, an Invalid ID
message appears, giving you options for creating the new record.

• Fast Add: Adds the record automatically, using the default settings.
Fast add is available for adding customers but is not available for vendors, inventory
items, employees, general ledger accounts, or jobs.
• Set Up: Opens the appropriate maintenance window to allow you to manually add and
save the record.
Set Up is available for adding customers, vendors, inventory items, employees, general
ledger accounts, or jobs.

ACTIVITY 45 - FAST ADDING A CUSTOMER


An invoice needs to be entered for a new customer, Tom Coleman. The standard
terms will be used for his account. Use the following steps to invoice Tom and Fast
Add his record.
1 Select Tasks, Sales Invoicing.
2 Enter colemant in the Customer ID field. Press Tab or ENTER to move to the
next field. Notice the field blinks blue three times, indicating a non-existing
record ID.
The color of the field when it blinks is determined by the default color settings in your
Windows operating system.
3 In the Bill to area, enter Tom Coleman in the top field.

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Adding Records on the Fly

4 Enter Tom's address as follows:


169 Colson Ave.
Atlanta, GA 30013
5 Enter the Date as 02/15/08 and Invoice 22005.
6 Enter a Quantity of 2.00 and an item of bintro1.
7 In the Sales Tax Code field select Cobb.

8 Click the Save button and choose Fast Add.


9 Click Close.

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Void Transactions 14
VOID TRANSACTIONS
........................................
You can void sales invoices, credit memos, vendor payments, and paychecks. When a
transaction is voided, a new transaction is created using the same reference number plus
the letter V at the end of the reference. This new transaction reverses the entry made by
the original transaction to the General Ledger. To void a transaction, click the Delete
button on the toolbar. Then click Void.

Voiding Checks
Checks can be voided by selecting Tasks, Void Checks or by selecting the Void button on
the toolbar. The Void Existing Checks window is used to void each check.

• Account ID: Enter or select the account used by the check you want to void. Only
checks using the account will display in the list of checks.
• Void Date: Enter the date the check should be voided. This is also the date the void will
post to the General Ledger.
• Number - Date - Source - Amount - Payee: Lists information for each check. The
Source displays AP for Accounts Payable checks and PR for Payroll checks. Click any
column heading to sort by that column.
Click a transaction you want to void; then click Void. A message appears, asking if you
are sure you want to void the transaction. Click Yes to void the transaction or No to return
to the Void Existing Checks window.
When a check is voided, the check is removed from the list of checks that can be voided.
A new transaction is created with a check number consisting of the original check number

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Void Transactions

followed by the letter V. This new transaction reverses the entries made to the General
Ledger by the original check. For example, if check 4020 is voided, a new transaction
with a check number 4020V is created.
Both the original check and void entry appear on reports and on the Account
Reconciliation window. Both transactions need to be cleared on the Account
Reconciliation window when you reconcile the bank statement.
Voiding a check results in the reinstatement of any invoices paid by the check. If the
invoices will never be paid, you must create a credit memo for the invoices and apply the
invoices to the credit memo.

Voiding Sal es Invoices


Sales invoices can be voided in cases where the invoice was entered in error and you want
to have an audit trail for the invoice. To void a sales invoice, select Tasks,
Sales/Invoicing and edit an existing invoice. Choose the Delete drop-down button and
click the Void button.The Void Existing Invoice window opens, allowing you to enter the
void date for the invoice. Click OK to void the invoice.
When an invoice is voided, a new transaction is created with an invoice number
consisting of the original invoice number followed by the letter V. This new transaction
reverses the entries made to the General Ledger by the original invoice. Then, the original
invoice and void transaction are applied to each other as a zero dollar cash receipt with the
same reference as the original invoice.

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Account Reconciliation 14
ACCOUNT RECONCILIATION
........................................
Any account in Peachtree can be reconciled using the
Account Reconciliation window. To access this window,
select Tasks, Account Reconciliation.

Account Reconciliation Window


The Account Reconciliation window shows uncleared transactions that have debited or
credited the selected account through the end of the current accounting period. You can
use this window to reconcile the transactions entered in Peachtree to your bank statement
for the account. As you clear transactions reported on the bank statement, the
Unreconciled Difference will approach zero. Once the Unreconciled Difference equals
zero, the account is reconciled. Additional transactions, such as bank service charges, can

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Account Reconciliation

be added to the General Ledger while you are reconciling the account using either the
Adjust button or the fields on the main window.

You can import an electronic statement from your bank. See the online Help for more
detail. Fields of interest on the Account Reconciliation window are described below:
• Statement Date: Enter the date the bank statement was printed. This date is used for
reference only.
• Status: Select this check box to indicate the transaction listed also appears on your
bank statement. Cleared transactions will be removed from the list after you change to
the next accounting period.
• Interest Income: Enter a single interest income amount, date, and General Ledger
Account. To enter multiple amounts, select the Adjust button.
• Service Charges: Enter a single service charge amount, date, and General Ledger
Account. To enter multiple charges, select the Adjust button.
• Statement Ending Balance: Enter the ending balance of the account as shown on your
bank statement.

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Account Reconciliation 14
• Unreconciled Difference: Displays the difference between the Statement Ending
Balance and the GL (System) Balance, less Outstanding Checks, plus Deposits in
Transit. When all transactions listed on the bank statement are entered and cleared in
Peachtree and outstanding transactions have been accounted for, this value should be
zero.

ACTIVITY 46 - RECONCILING A CASH ACCOUNT


The bank statement for March has arrived and includes a bank charge that is not
posted in Peachtree. The National Bank Checking account will be reconciled using
the statement. Follow these steps to reconcile the account:
1 Select Tasks, Account Reconciliation. Select account 10200 from the Account
to Reconcile lookup list.
2 Enter 02/29/08 in the Statement Date field.
3 Enter 35,382.20 in the Statement Ending Balance field.

4 Clear the following checks:

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14 UTILITIES AND SPECIAL PROCESSING
Account Reconciliation

3284
3285
3286
5 Also clear the Copier Withdrawal dated Feb. 15, 2008.
6 Clear all deposits listed.
7 To enter the bank charge, enter 25.00 in the Service charges field.
8 Enter 02/29/08 in the Date field. Enter 62000 in the Account field.
9 The unreconciled difference should be zero. Click OK to save.

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Backup and Restore 14
BACKUP AND RESTORE
........................................
You can back up and restore your company data in Peachtree. This procedure is easy to do
and can save many hours of rekeying your information in case of events such as fire,
flood, computer theft, or computer hard drive damage. Even minor events like power loss
can damage your company information. You can also back up to a remote server using
Online Backup.

Maki ng a Backup
Backing up creates one file that includes all company
information and customized forms present at the time the
backup was made. To make a backup of your company, select
File, Back Up or Backup from the Company navigation aid.

After you select Backup, the Backup Company window opens, offering a few options:

• Select the reminder check box if you want to be prompted to back up in a specified
number of days. If the specified number of days has elapsed since your last backup was
made, a reminder message will appear when you close the company or exit Peachtree.

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Backup and Restore

• Select the include check box if you want your company name to be part of the backup
file name. The letters BU plus today’s date will be the default file name if you do not
check this box. If you do select this check box, the file will include your company
name as well as today’s date.
Click Back Up to continue, Close to exit the window, or Help for information about
creating a backup.

After you click Back Up, the Save Backup window opens. Select the drive letter and
path where you want to save the backup. The file name listed can be used, or you can
enter your own name. Click Save to create the backup, Cancel to exit the window, or
Help for information on saving a backup.
After you click Save, a message appears, indicating the amount of space the backup file
will require. Click OK to continue or Cancel to exit to Peachtree’s desktop.
After you click OK, a progress window opens showing the files being backed up and the
percent complete. The file will contain all company information and customized forms
present at the time the backup was made.
The backup process will compress the company information to conserve space and will
create a single file with an extension of PTB. If the file is too large for a single disk, more
disks will be needed. In this case, you will be prompted to enter a new disk each time a
disk is full. Label each disk to indicate the sequence of the disks.

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Restor ing a Backup
Restoring a company replaces all information in the open
company with the information in the backup file. You can
restore the company data, customized forms, Web transactions,
or all three. Because all company data files are interrelated, you
cannot restore individual company data files. To restore your
company, select File, Restore or Restore from the Company
navigation aid.

After you select Restore, the Restore Wizard - Select Backup File window opens.

Click Browse to open the Open Backup File window. Specify the drive letter and path
where the backup file is located. Then, click the backup file name. Click Open to
continue, Cancel to exit the window, or Help for information about restoring a backup.

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Backup and Restore

Next, on the Restore Wizard - Select Backup File window, click Next. This will open
the Restore Wizard - Select Company window.

Select An Existing Company to restore to an existing company. If you need to change


the company currently selected, click Browse and navigate to the appropriate company. If
you are creating a new company using the backup, select A New Company.
Click Next. The Restore Options window opens. Select the Customized Forms check
box to restore the custom forms stored in the backup file. Check the Company Data box
to restore the company information stored in the backup file. Check the Web
Transactions box to restore all Web transactions in the Peachtree Web Transaction
Center. You can check all or any of the boxes to restore just what you need. Click Next to
continue, Cancel to exit the window, or Help for information about restore options.
After you click Next, the Confirmation window opens, showing the files and company
being restored. Click Finish to restore the backup. If the backup file is on more than one
disk, you will be prompted to insert each disk. Once you return to the Peachtree desktop,
the company is ready to use.

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Business Status Center 14
BUSINESS STATUS CENTER
........................................
The Peachtree Business Status Center is your window to knowing the state of your
business at all times. From it, you can see the status of your company, your receivables,
payables, employees, inventory, and banking. In addition, each page offers you links for

quickly performing tasks in Peachtree, such as entering payments, searching for and
viewing reports, and navigating throughout the program. Use the menu on the left to
select a particular page. Each page will give you information regarding that part of your
company. Most pages give you a flow diagram for that process, with each icon being a
clickable link to that process. For instance, displayed below is the Banking flow chart. It
shows you the entire process within Peachtree of processing bank related transactions. To

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Business Status Center

Receive Money, simply click the associated icon and Peachtree will open that transaction
window.

The Toolbar
From the toolbar, you can change your accounting period, change the current Peachtree
system date, print the displayed page (for some pages), refresh information, hide
information, and set the currently displayed page as the default.

Using and Customizing the Li st of Shortcuts


You can also select from a number of different shortcuts applicable to that part of your
company. If you want to customize this list of shortcuts, click the Customize link and use

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UTILITIES AND SPECIAL PROCESSING
Business Status Center 14
the window to select different shortcuts. You can add, rename, and delete Shortcuts. In

addition. you can change the order in which they appear. You can use these shortcuts to
provide quick access to those areas of Peachtree that you use most often.

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Business Status Center

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.....
INDEX

I NDEX
......................
B adding customers 95
customer beginning balances 101
defaults 84
overview 83
overview of tasks 189
reports 212
Numerics adding to a list 140
adjustments
401k 112 entering for inventory 182
940-EZ 222 assemblies
Adjustment Journal 185
A
account aging B
customer 85 backup 233
vendors 47 Balance Sheet 153
account register 233 beginning balances
accounting methods chart of accounts 32
choosing 12 customer 101
accounting periods employee 136
custom 16 inventory 81
monthly 15 vendor 58
setup 14 budget
accounts account 37
adding 25
beginning balances 32 C
budgets 37
deleting 25 Cash Disbursements Journal 178
modifying 25 Cash Receipts Journal 212
numbering 26 changing
out-of-balance 33 ID 224
reconciling 229 chart of accounts
types 26, 27 beginning balances 32
accounts payable budgets 37
adding vendors 50 copying 8
defaults 46 modifying 25
overview 45 numbering 26
overview of tasks 155 out-of-balance 33
paying invoices 169 report 151
payments 166 sample 8
reports 178 selecting 7
vendor beginning balances 58 checks
accounts receivable customer 172

241
..... INDEX

disbursement 166 customizing a list 142


employee 216
manual 175 D
vendor 166 deductions
voiding 227 401k 112
writing 173 default information
company accounts payable 46
backup 233 accounts receivable 84
information 6 employees 120
restore 235 finance charges 85
converting a quote 192 inventory 62
Cost of Goods Sold Journal 185 statements and invoices 104
costing methods 66 department masking 27
credit card number deposit
default 99 customer 209
credit memo vendor 176
customer 204 dunning messages 106
vendor 166
credit memos E
customers 203
custom fields editing
customers 85, 99 transactions 159
inventory 67, 75 editing a list 141
vendors 48, 55 employees
customers adding 126
account aging 85 beginning balances 136
adding 95 defaults 120
beginning balances 101 pay levels 128
billing 198 paying 216
credit memos 203 entering credit memo 204
custom fields 85, 99 entering vendor credit memo 166
defaults 84 exempt 66
finance charges 85
history 99 F
invoices 198 finance charges 85
pay methods 87 financial statements 153
payment terms 84 rounding account 22
payment to 172 fiscal year 14
prepayment 209 form delivery options 54, 98
refunds 172 freight account 66
sales defaults 96
statements 104
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INDEX

G taxable 66
General Journal Inventory Adjustment Journal 186
entries 146 invoices
recurring entries 148 applying payment 169
report 151 applying to sales order 202
General Ledger converted from quote 193
beginning balances 32 defaults 104
defaults 22 entering 198
out-of-balance 33 paying 207
overview 21 voiding 228
overview of tasks 145 item classes 64
report 152
report descriptions 151 J
reports 151 Journal
Assemblies Adjustment 185
H Cash Disbursements 178
Help 2 Cash Receipts 212
history Cost of Goods Sold 185
customers 99 General 151
inventory 75, 186 Inventory Adjustment 186
vendors 55 Payroll 221
Purchase 179
I Purchase Order 179
Sales 214
ID Sales Order 214
changing 224
Income Statement 154 L
inventory
adding items 73 list
adjustments 182 adding to 140
beginning balances 81 customizing 142
costing methods 66, 75 editing 141
custom fields 67, 75 printing 141
defaults 62 searching 141
exempt 66 viewing 140
freight account 66 list window 140
history 75, 186 Lists 139
item classes 64
overview 61 M
overview of tasks 181 masking 27
receiving 160 master stock item 64
reports 185
243
..... INDEX

N printing a list 141


New Company Setup purchase orders
accounting method 12 entering 156
accounting periods 14 filling 164
chart of accounts 7 Journal 179
posting method 13 purchases
Wizard 5, 6 applying payment 169
applying to purchase order 164
O entering 160
Journal 179
out-of-balance situation 33
Q
P
quotes
pay levels 128 converting 192
pay methods 87 entering 190
payment defaults tab 99
payment terms R
customer 84
vendors 46 receipts
payments applying to invoices 207
customers 172 entering 204
employees 216 vendor deposits 208
entering 166, 173 receiving inventory 160
manual 175 reconciling accounts 229
vendors 166, 173 recurring 148
payroll refunds
adding employees 126 customer 172
beginning balances 136 vendor 208
defaults 120 reports
Journal 221 accounts payable 178
overview 107 accounts receivable 212
overview of tasks 215 financial statements 153
reports 220 General Ledger 151
Setup Wizard 108 inventory 185
payroll fields payroll 220
employEE 121, 129 restore 233
employER 123, 132 rounding account 22
posting method
choosing 13 S
prepayment Sales Journal 214
customer 209 sales orders
vendor 176 converted from quote 193
244 Peachtree Quantum Basic Self-Study Guide
.....
INDEX

entering 195 U
filling 202 UPC number 75
Journal 214 Using 189
sales taxes
authorities 90 V
exempt 66
setting up 89 vacation time 116
taxable 66 vendors
searching a list 141 account aging 47
selecting adding 50
transactions 160 beginning balances 58
ship custom fields 48, 55
items 202 defaults 46
methods 66 deposits from 208
simplified chart of accounts 8 history 55
Startup Screen 4 invoices 160
statements paying 166, 173
defaults 104 payment terms 46
dunning messages 106 prepayment 176
substock item 64 purchase defaults 52
refunds 208
T voiding
checks 227
task window templates 227 invoices 228
taxable 66 transactions 227
templates 227
transactions W
editing 159
recurring 148 window
selecting 160 List 140
voiding 227 templates 227
write checks 173

245