Application of Accounting Software Main Module Nov 02 PDF

Chapter 1- Computerized Accounting
Chapter 1: Computerized Accounting System

Dear Student,
Welcome to Study the basics of Peachtree Accounting in this module called Application of
Accounting Software. In this course, we will cover the basic skills required to effectively
manage your company‘s financial information using the Peachtree program. After
completion of this course, you should understand the way Peachtree tracks and manages your
company‘s basic financial information. You should also have the required skills to do the most
commonly performed and necessary tasks within Peachtree.
For example when you start your own business, you are responsible for doing much more than
simply generating revenue for your company. Depending upon your business type, you may also
need to produce invoices and statements, record customer payments, and manage multiple types
of accounts. Peachtree Complete Accounting allows you to accomplish these tasks and more.
Computerized or automated accounting is the most popular method of handling a company‘s
accounting records. Only very small businesses with a few transactions perform the accounting
functions using a manual or handwritten system. This is because of the time-saving features of
an integrated, computerized system. This chapter presents the basic information that applies to
all computerized accounting programs.
The first step to automating accounting records is to select an accounting software program.
Every accounting software program has unique characteristics that set it apart from other
accounting programs. The user should become familiar with these characteristics to speed the
entry of data.
Before purchasing an accounting program the user should always know the level of the
accounting program [high-end, basic (mid-level), or personal (entry-level). The user should
evaluate many programs before purchasing one.
After completing this chapter the student will be able to understand the following in an
introductory level:
1. List the two data entry modes: batch and real time processing.
Copyright  November 2018 Seamless College Page 1

2. Discuss how each module integrates to the General Ledger and relates to other
modules.
3. Discuss end of period processing.
4. Discuss the basics of creating, using, and changing a password.
5. Make a backup and archival copy of the data.
6. Compare a manual accounting system to an automated or computerized accounting
system.
7. Give the advantages and disadvantages of automating the accounting books.
8. List the steps to convert from a manual accounting system to an automated accounting
system.
9. Restore and Back-up Data.
1.1. Introduction
In this chapter you are learning the very basics of accounting. Accounting software packages are
designed so that the user does not have to fully understand accounting to use them successfully.
An accounting cycle is the process of entering transactions from source documents into a system
and producing a variety of reports for management. The steps in the accounting cycle are listed
below.
1. Analyze transactions from source documents.

2. Record transactions in assorted journals.
3. Post all the journals to General Ledger.
4. Prove the General Ledger with the Trial Balance.
5. Prepare Reports/ Journals:
A. General Ledger (G/L):
 Chart of Accounts
 General Journal
 Special Journals
 Cash Receipts Journal
 Cash Disbursements Journal

 Sales Journal
 Purchases Journal
B. Accounts Receivable (A/R):
 Customer List
 Aged Accounts Receivable
 Sales Journal
 Cash Receipts Journal (Customer‘s) Payments
C. Account Payable (A/P)
 Vendor List
 Aged Accounts Payable
 Purchase Journal
 Cash Disbursement Journal
 Check Register
D. Payroll (P/R)
 Employees Earnings Record
 Payroll Registers
 Paychecks
 Monthly Report
 Quarter-to date Wage Reports
E. Inventory (INV)
 Master List
 Price List
 Activity Report
 Inventory Status Report

 Reorder List
 On-Hand Report
 Physical vs. Perpetual
Every company and corporation follows the accounting cycle. The method of performing these
steps and producing the reports may vary widely from company to company. However, all the
steps must occur either in the actual company or the corporation‘s home office.
A computerized accounting system is structured to include modules, commands, and field and
records (Fig.1.1). A module is a separate accounting activity such as the General Ledger or
Accounts Receivable. A command is sub-activity that changes the data in the module, such as
―Enter new customer‖ or ―Enter cash receipt.‖ A field is a one-line piece of information, such as
Customer Name or Customer Type. A group of fields make up a record. For example, every
journal entry includes the fields: date, name of the debit account and the credit account, plus the
dollar amount. This journal entry is now a record. There is a difference between records and ―to
record.‖ ―To record‖ is the process of entering a transaction into Peachtree accounting system.

____________
Accounting Program
Program
FIGURE 1.1 ____________
Computerized Accounting
System Structure _________ ____________ ___________
General Accounts Accounts Module
Ledger Receivable Payable
-------------- ------------------- ------------------
__________
Enter New Command
Customer
-----------------
Number
Name Fields
Record Address
Type
Balance
A computerized accounting system consists of many modules. The basic modules are:
1. General Ledger / Financial Analysis
2. Accounts Receivable
3. Accounts Payable
4. Payroll
5. Inventory
FIVE MAIN MODULES AND THEIR MAIN FILE
MODULE MAIN FILE

General Ledger Chart of Accounts
Accounts Receivable Customer File
Accounts Payable Vendor File
TABLE 1.1 Payroll Employee File
Module Main Files Inventory Part # (Item File)
Others:
Sales Invoicing Customers/Item File
(Order Entry/Invoicing)
Budgeting/Forecasting Chart of Accountings/Balance
Financial Analysis Chart of Accountings/Balance
Points of Sale Inventory Items/Price List
(Cash Sales)

Purchasing Vendors/Item File
Add-On Module: Address Labels, Database Reports, invoice , organization.
Each module is organized into five basic activities:
MODULE ACTIVITIES 1. Setup

2. Main File
3. Maintenance
4. Data Entry
5. Report Generation/Printing
A System Manager Module is included in any accounting system. Commands that would affect
the entire company would be included in this module. For example, the company name,
addresses, terms and back-up and restore data disks.
Table 12.1 Difference between Manual accounting and Computerized accounting
No. Point of Difference Manual Accounting Computerized Accounting

1 Recording Recording of financial Data content of these
transactions is through transactions is stored in well-
books of original entry. designed data base.
2 Classification Transactions recorded in No such data duplications is
the books of original made. In order to produce
entry are ledger accounts the stored
further classified by transaction data is processed
posting them into ledger to appear as classified so that
accounts. This results in same is presented in the form
transaction data of report.
duplicity.
3 Summarizing Transactions are The generation of ledger
summarized to produce accounts is not necessary
trial balance by condition for trial balance.
ascertaining the balances
of various accounts
4 Adjusting Adjusting entries are There is nothing like making
entries made to adhere to the adjusting entries for errors
principle of and matching rectifications..
5 The preparation of The preparation of financial
Financial financial statements statements is independent of
statements assumes the availability producing the trial balance.
of trial balance.
1.2. Manual Vs. Computerized Systems

The manual system uses handwritten ledgers and journal sheets. The user enters the information
in the journal and then transfers this information to the General Ledger. With a computerized
system, the user needs only to enter the information in the journals. The information is
automatically entered into the ledgers. Accuracy becomes the utmost concern at this point.
What Are Differences Between Manual & Computerized Accounting?
Manual accounting requires that all journal entries, invoices and other financial documents be
created by hand. Computerized accounting allows users to input information into accounting
software programs.
Figure depicts a Manual Accounting System model
Figure depicts a Computerized Accounting System model

A comparison of manual and computerized accounting systems shows that the procedures for
setting up a company, new or existing are the same. The chart in Table 1.4 illustrates this fact.
Both methods also must enter the daily transactions. The main difference between the two
methods occurs with the end of the month posting and the report writing. The posting is a
cumbersome job in the manual system. With the computerized system it is fast and automatic,
requiring the user to simply select the proper command.
Speed
Computerized accounting produces information much faster than manual accounting.

Accounting software packages, such as QuickBooks and Peachtree, come with built-in databases
that allow users to input data.
Accuracy
Manual accounting systems are prone to mathematical errors and misplaced numbers. With a
computerized accounting system, your company data is automatically calculated based on
numbers you input.
Financial Statements
In a manual accounting system, you have to prepare your company's income statement, balance
sheet and statement of owner's equity by hand. Information from your journal entries helps
formulate your company's financial statements. Computerized accounting systems allow
financial statements to be created from information stored in the database.
Cost
The cost of computerized accounting systems can range from hundreds to thousands of dollars
for large businesses. A computerized accounting system may save on man hours used for
creating financial statements and other reports. For this reason, many small and mid-sized
businesses use computerized accounting software than manual.
Reports
Reports are created in a timely manner when using a computerized accounting system. Reports
generated from computerized accounting software allow managers to run the company in a more

efficient manner. Creating reports in a manual accounting system may lead to more staff
frustration and result in having to work with outdated information.
Safety
Accounting records kept on the manual system can be lost or damaged easily, such as by coffee
spills. On the other hand, records kept by a computer are likely to be safer because many systems
are backed up often. If you lose pages in a paper pad, you may have to recreate the transactions
by conducting research and writing them in again. In a computerized system, you simply restore
the latest backup and add a few transactions that were not saved. In this area, accounting
software is obviously superior to manual systems.
Organization
Data processed through software is organized and easy to find. That's not the case with manual
systems, where you may have to review several pages to find what you need. Accounting
programs organize the information in one place, classified by type. For instance, if you want to
find certain data about a vendor, you can go to the accounts payable section of the software,
usually by clicking a link or tab, and conduct a search for the vendor. If you conduct the same
process on a manual system, you may have to go through several pages and take your time to
find what you're looking for.
Significance
Information technology plays an important role in accounting processes because it improves

financial reporting procedures and prevents errors in financial statements.
Time Frame
Computerized accounting activities help an accountant perform month-end closing procedures.

These activities also help company report profit information over a period, such as a month or
quarter.
1.3. Benefits of Using Computerized Accounting System

A list of the advantages and disadvantages of computerized accounting follows. The advantages
far outweigh any disadvantages. However, it is up to the individual user to utilize these
advantages.

1.3.1. Computerized Accounting Advantages

1. Account balances are always current because the user constantly posts the transactions.
2. The computer performs the posting process (writing the transaction in the account on the
debit or credit side and adding the print balances in the current transactions to achieve a new
end of month balance) automatically.
3. The modules use information from each other (integration). Integration requires only one
entry to update all the other related modules. For example, when the user records a sale in
the A/R module, the inventory will automatically show a reduction in the items sold. When
the user records a purchase in the A/P module, the inventory will be automatically increased.
4. The computer system automatically prepares financial statements.
5. A manager can use the accounting reports for forecasting and budgeting purposes.
6. The computer performs all calculations at super speed with accuracy as long as the initial
entries are accurate. For example, the computer calculates the total amount of the invoice by
multiplying the selling price by the number of items sold. Added to this amount is the
calculation of the sales tax due. The numerous payroll calculations are another example.
7. Fast manipulation of data makes management decision making easier, leading to

profitability, possible reduction in the sales price, or purchase of more items at a better rate.
8. Neater and more accurate reports are produced with no crossed out figures and white out on
reports.

1.3.2. Computerized Accounting Disadvantages

1. It is harder to locate and correct errors until the user learns the particular characteristics
of the program.
2. If the user enters incorrect information, all automatic calculations will be incorrect. For
example, if the sales tax percentage is incorrect all the invoices will be incorrect. A first-
time user might assume the computer calculations are correct and not check the total of
the invoices before sending them out.
3. Many computer programs do not leave an adequate audit trail to follow. This feature
must be built into a program.
4. Management gets caught up in the need for the most current revision or the fastest
program. The user wastes many hours and dollars reentering all the data. If the current
program serves the company‘s purpose, changing the program is unnecessary.
5. Software manufactures do not always write manuals that present clear and concise
instructions. Learning the program may require more time in the initial months. Better
analysis of the program at the time of purchase could minimize this disadvantage.
6. The cost for initial purchase of hardware and software may cause a short-term cash flow
problem.
7. Training on the particular computer and software is necessary. The cost of training could
be written into the purchase agreement of the software.
The user should consider several factors when deciding to computerize or automate the business
computer system. First, ask, ―How many transactions are completed during the accounting
period?‖ The break-even point between using the manual method and computerizing the
accounting records is twenty-five transactions.

The cost of buying the computer system and the accounting program, plus paying an individual
to learn the program, is very high. If the owner of a small business is not computer literate, it
might be better to contract out the bookkeeping function or the write-up work (entering
transactions in the books). The short-term costs of the computer system must be weighed against
its long term benefits.
The user should make sure that the accounting records are reconciled and in good shape before
converting to an automated accounting system. If incorrect information is entered into the setup
data it is very difficult to correct. Remember, ―garbage in, garbage out‖ (GIGO).
The first step in buying an accounting program is to ask "What do I want the program to do for
me?" Once that question is answered it will be easier to select the program.
When selecting the accounting program system though a software vendor, the user should locate
a person knowledgeable in computerized accounting programs, not just any salesperson. The
user should bring to the software store:
1. A sample of each type of source document.
2. A copy of the month-end reports.
3. An idea of how the company will grow in the future.
The user should be able to enter a few transactions and print a few reports before purchasing any
programs.
Once the system has been selected, both manual and computerized systems should be run in
parallel to make sure that all the information is recorded, printed out, and agrees with the original
system‘s output (Figure 1.13). This is called ‗‗parallel processing.‖ Parallel processing of the
transactions also provides a dollar amount to compare the reports of each system. If there are
errors, this procedure will allow time to set up error-checking procedures that will ensure
accuracy and correct any "bugs the software may have. The user should perform parallel
processing until computer data can be relied on. This can take from one to several accounting
periods.

Key Terms Introduced in the Chapter

• Computerized Accounting System • Manual Accounting System
• Generally Accepted Accounting Principles • Operating Environment
• Accounting Software • Accounting Packages

Summary with Reference to Learning Objectives

In this chapter the activities in the accounting cycle were discussed to help the student
understand why certain commands were used. The structure of parts of a computerized
accounting system structure was given as modules, commands, and fields.
The six main modules and their primary files were presented. These were General Ledger—
Chart of Accounts, Accounts Receivable—Customer File, Accounts Payable—Vendor File,
Payroll—Employee File, Inventory—Item File, and Job Costing—
Employees/vendors/inventory. Other auxiliary modules were given.
The four main commands in any maintenance file were given as ADD, CHANGE, DELETE,
and DISPLAY or VIEW.
Analyzing source documents and using input forms were presented as ways of handling the data
input. The two input modes that were discussed are batch and on line/real-time processing.
Passwords were discussed and changing them frequently was advised. The need for backup
copies of the data was stressed.
Activities in the manual accounting system were compared to computerized accounting system
activities. How to convert from manual to automated accounting was discussed. The advice to
convert one module at a time was given.
Four types of accounting programs were identified. How to evaluate the accounting programs
was also presented. The Business Works program was introduced, giving the hardware
configuration that can be used with this program. A Chart of Commands of the Business Works
program is provided on the back inside cover of the text, helping the student see what options
are available. A user‘s manual was also included for the student‘ use.
Direction to install the trial version of the program and the data disks were provided in step-by-
step format.
Steps to log-on and exit the program were given.
In this chapter the student has learned about the various accounting programs and the Business
Works program in particular.
1 Computerized Accounting System: A computerized accounting system is an

accounting information system that processes the financial transactions and

events to produce reports as per user requirements. It is based on the concept
of database and has two basic requirements:
(a) Accounting framework and
(b) Operating Procedure.
2 Advantages of Computerized Accounting System :
• Speed • Accuracy
• Reliability • Up-to-date
• Scalability • Legibility
• Efficiency • Quality Report
• MIS Reports • Real time user interface
• Storage and Retrieval • Motivation and Employees interest
• Automated document production
3 Limitations of Computerized Accounting System :
• Cost of training • Staff Opposition
• Disruption • System failure
• Breach of security • Ill-effects on health
• Inability to check
unanticipated errors
4 Categories of Accounting Software Packages :
• Ready-to-Use or off the shelf • Customized
• Tailored

Questions for Practice
Short Answers
1. State the four basic requirements of database applications.
2. Name the various categories of accounting package.
3. Give examples of two types of operating systems.
4. List the various advantages of computerized accounting systems.
5. Give two examples each of the organizations where ‗ready-to-use‘,

‗customized‘, and ‗tailored‘ accounting packages respectively suitable
to perform the accounting activity.
6. Distinguish between ‗ready-to-use‘ and ‗tailored‘ accounting

software.
Long Answers
1. Define a computerized accounting system. Distinguish between a
manual and computerized accounting system.
2. Discuss the advantages of computerized accounting system over the

manual accounting system.
3. Describe the various types of accounting software along with their

advantages and limitations in selected business organization in
Addis Ababa as guided by the tutor.
4. ‗Accounting software is an integral part of the computerized accounting

system‘ Explain. Briefly list the generic considerations before sourcing
accounting software.
5. ‗Computerized Accounting Systems are best form of accounting

system‘. Do you agree? Comment.
Checklist to Test Your Understanding

1. Operating environment 2. DBMS 3. Data Processing 4. Ready to use

Key Terms
A list of terms appears below. Find these terms in the reference text and review them to
understand the section.
Command Parallel Processing
Converting Password
Dates Real Time Processing
System Record
Entry Reference
Account Name Current Reports
Accounting Number Delete Screen Saver
Accounting Cycle End of Period Processing Soft Copy
Accounting Programs End of Year Processing Source Documents
Tutorial Fields Templates
High-End Field Editing Transaction
Basic Function Keys User‘s Guide
Personal Hard Copy View
Add Input Form Write-up Work
Backup Copy Insert Mode
Batch Entry Main Menu Change

Maintenance Check Register Module
Coding Narrative Transaction

1. List the six standard computerized accounting modules
2. What are the four option that can be performed on any maintenance file?
3. Give an example of a source document.
4. In order to do write up work what must the client provide?
5. What should be done with the source documents when doing write-up work?
6. What are the two data entry modes?
7. All modules are integrated to the ___________________________.
8. What activity does the computer perform at end of month? At end of year?
9. Once you have set the password, what do you need to know in order to change
the password?
10. What two activities must be performed by both the manual and computerized
methods?
11. With what activity is the computer the most help?
12. List three advantages of automating the accounting books.
13. List two disadvantages of maintaining the company‘s books on the computer.
14. When converting from manual to automated a company should not ________
15. List the four types of accounting programs.
16. What is the entry date?
17. The current date is obtained from _____________________________.
18. What is the system date?
SELF-EXAMINATION QUESTIONS
1. Give an example of an automatic command. _____________________

2. Match the type of accounting program with its definition.
1. Personal accounting (entry level)

2. Basic accounting (mid-level)
3. High-end accounting
4. Tutorial accounting
__________ Used in an educational environment and generally has limitations.
__________ Complex accounting program that can handle large amount of

transactions. Each module is purchase separately.
__________ Include the five basic modules with integration. Good for a mid-size
company.
__________ Includes only the General Ledger module and can be used for the
home as well as a small business.
3. Match the module where the following reports would appear:
___________ Purchases Journal
___________ Cash Receipts Journal
___________ Vendor List
___________ General Journal
___________ Price List
___________ Aged Accounts Payable
___________ Sales Journal
___________ Physical vs Perpetual Report
___________ Chart of Accounts
___________ Check Register
___________ Customer List
___________ Cash Disbursement Journal
A=G/L B=A/R C=A/P D=Inventory

Chapter 2-Starting and Quitting Peachtree Accounting
Chapter 2: Starting and Quitting Peachtree

Accounting
Dear Students,
In This Chapter Starting Peachtree Navigating the Peachtree screen Getting help!
If you have been keeping your financial records using manual methods, you know how time
consuming it can be as discussed in Chapter 1. Plus, keeping books manually provides too many
opportunities for human error. Using Peachtree saves you both time and money; in addition, you
can know at any moment in time your complete financial status. We know you are eager to get
started. Operating a business is a nonstop process, but to computerize your accounting, you have
to put first things first.
To work effectively, take some time to get comfortable with some of the features unique to
Peachtree. In this chapter, you find out how to navigate in the software as well as open and close
companies as needed. We also show you where you can turn for additional assistance. If you‘re
ready, dig in.
Academically yours,
Seamless Team
2.1. Peachtree Accounting Environment and Features
In the course outline it has clearly stated that the general purpose of this module is about using a
computerized accounting application to maintain records of business transactions including sales
and purchases, receipts and payments, and to prepare reports using Peachtree accounting system.
The module requires skills needed to record accounting transactions with credit customers and
credit suppliers as well as recording transactions involving the bank, petty cash and other
nominal ledger accounts.
Peachtree allows you to easily access all of the available commands that you use to create and
edit your company‘s data file through the Menu Bar. You can also use the convenient navigators
located at the bottom of the screen to bring up visual aids in the ―Peachtree Today‖ window. You
can then click on the pictures in the ―Peachtree Today‖ window to launch windows which allow
you to then perform some of the most common tasks in Peachtree. When you select a Menu Bar
command or click an icon in the ―Peachtree Today‖ window, you will most likely open a new

window into which you will have to enter information. These windows will appear in separate
windows from the ―Peachtree Today‖ window.
In this overview, we‘ll walk you through the most common processes in Peachtree, using
Bellwether Garden Supply, a sample company provided in Peachtree. Because we are doing a
walkthrough in a Peachtree sample company, you can open Peachtree and follow along by
actually entering information in Peachtree as you read this chapter.
To open the Bellwether sample company, start Peachtree, select Explore a Sample Company, and
select Bellwether Garden Supply.
The Menu
Icons
Main Application
Toolbar
Navigator Bar
Peachtree gives you control over your business. It keeps track of the money you earn through
selling products and services to customers and the money you spend buying what you need from
other companies (vendors). It keeps track of the inventory that you sell, reordering items as they
are sold. It makes it easier to pay your employees and track their benefits and taxes. Through
reports, it also provides you with data for making important decisions about your business.
2.2. Peachtree Menus

All versions of Peachtree contain a Menu Bar that you can use to access the various windows
where you perform business related tasks such as invoicing customers, writing checks, and
entering bills. To use the Menu Bar, just click on one of the command groupings shown within

the Menu Bar to view the subcommands under each main command category. The different
main categories of commands on the Menu Bar shown in Peachtree Complete Accounting are:
―File,‖ ―Edit,‖ ―Lists,‖ ―Maintain,‖ ―Tasks,‖ ―Analysis,‖ ―Options,‖ ―Reports‖ (―Reports &
Forms‖ in Peachtree 2008:2012), ―Services,‖ ―Window,‖ and ―Help.‖ From the displayed listing
of subcommands, click on the specific subcommand which you wish to select. Note that
subcommands which are followed by an ellipses mark (…) will be the ones to launch new
windows into which you will have to enter information. Subcommands followed by a right-
pointing arrow indicate that you will need to select from another side-menu of choices that will
appear when you hold your mouse pointer over those subcommands. Other subcommands, like
―Exit,‖ simply need to be selected in order to be executed.
Basic Windows Instructions
_ Minimize - Do not use to exit from a command. The program will say that
other operations are opened and you will not be able to exit the
program.
+ Maximize or enlarge - If you minimize you will need to enlarge to close it.
X Close - Use to exit from each command
Peachtree Action Buttons and Menus

(See Descriptions below)
(from Screen Display)
Install the Peachtree Accounting Software

1. Run D:\Setup.exe. After a couple of screens just click on OK or next.
2. Select Setup Type:

Click on Standard
Select Location: Program C:\Peachtree
Data: C:\Peachtree
Click next
3. Accounting folder: Peachtree Accounting, Click Next
4. Thank you screen on top, Copying program files on bottom.
5. Set-up Complete Screen. Put a check b ―Yes I would like to start Peachtree Acctg.‖
6. Click on finish. Register Later. You have 10 times to finish before registering. Click on
OK.
Set-up System Information
1. General Ledger Defaults- Rounding is Account 999.
2. Customers Payment terms, integration accounts

3. Other defaults that may be used in other companies would be the Aging periods, finance
charges and pay methods.
4. A/P defaults: Payment terms, integration accounts. Also enter aging under the Account
aging tab.
5. Under Statement defaults you can check the default values and change it to whatever you
would like.
Enter General Journals
1. Select Tasks--General Journal Entry

2. Enter the journal entry using the tab key to move from each field. You can change any field
by moving the mouse and clicking on the field to change. Once the journal entry is correct
select "Post".
3. You can add an account "on the fly" while in the General Journal entry mode. Click on the
magnifying glass to bring the "Add" mode. Select New and add the data for this new
account.
New
Magnifying Glass

Correcting a Journal Entry

1. Select Edit. Select the field to change. Make the necessary changes. Select Post.
Delete- deletes the entire journal entry.
Removes - deletes a highlighted line. There is no control here. You can add and delete as
you want and use the same reference number.
Record the $10,000 to the cash account before writing checks. Select Task--select
Reconcile accounts. Complete the form as can be seen from the example below.
Set up A/P
Enter Vendors
1. Select Maintain---Vendors
2. Enter Vendors
3. When there is beginning balances in other companies, select the icon on the screen
labeled "Beginning Balances" in the General tab.

4. Select Save, then new for the remaining vendors.
Set up A/R
Enter Customers
1. Select Maintain then Customer/Prospects
2. Enter the data for each customer.
3. Enter Sales Defaults

Set-up Inventory Items
1 Select Maintain--Inventory Items
2 Enter inventory items data.
Print A/P and A/R list and Inventory List.

1. A/P List, Select the screen icon first then the print icon.
2. A/R List
3. Inventory List
ACCOUNTS PAYABLE
Enter Purchase Orders

1. Select Tasks Pull Down menu--- Enter Purchase Order
2. Complete the form with the correct data. Use Purchase Orders number starting at 1. Once
complete post the purchase order. To correct, select the "edit" icon. Use the Add icon to
add lines after posting, "remove" icon to delete a line or the "delete" icon to delete the
entire P.O.
3. Select "Reports- A/P-Purchase Journal" to check what you have entered.
Record the receipt of the inventory from the vendor

1. Select Tasks-- Purchases/Receive Inventory

2. Enter the fields of the form. Use the invoice number given in the generic data in the
"Apply to P.O. #" field.
3. This will put the items into inventory.
4. Be sure to post. You cannot change the P.O. once it has been received. FINALLY some
control.
Print Purchase Journal

1. Select Reports
2. Select A/P- Purchase Journal.
3. You can select screen first to check it then print once it looks good. Select the printer icon
to print.
2.2.1. USING THE MENU BAR:

 Click on a command grouping (―File,‖ ―Edit,‖ etc…) to view the subcommands listed in a
drop-down menu.
 Click on the subcommand that you want to execute.
When you first open a sample company, the Peachtree Today window appears. (See Bonus
Chapter 2 on this book‘s Web site for more information about the Peachtree Today window.) For
now, click the Close box to close the Peachtree Today window.
Although the main menu window of Peachtree looks pretty plain, don‘t skip too lightly through
it. The window actually displays several pieces of information. At the bottom of the screen, the

Windows-style status bar (see Figure 1-2) displays information about the field, window, or menu
choice that you happen to be using, as well as the current date, a toolbar, and the current
accounting period. We think that the toolbar Calculator tool is especially helpful!
However your mouse over each tool on the main application toolbar to see a Tool Tip description
of its function.
Figure 1-2: The current accounting period appears on the status bar
2.2.2. Choosing menu commands

The pull-down menus should be a familiar sight from your other Windows programs. Even
though the other menu choices are important, you are likely to spend the majority of your time in
Peachtree using the following three main menu choices:
1. Maintain: This menu offers choices for working with data records. For example, you can
store vendor, customer, inventory, and employee information, including names, addresses,
and phone numbers.
A record is all the information about one person, product, event, and so on. Every record in a
database contains the same fields. A field is one item of information in a record, such as an ID,
name, or transaction number. To explore the parts of the information that you store in Peachtree,
see the ―Exploring fields and records‖ section, later in this chapter.
2. Tasks: This menu is where you do your normal day-to-day work. You can bill your
customers, buy materials, and pay your workers by using the Tasks menu.
3. Reports: This menu is where it all comes together and where you can see the results of all
your hard work.
2.2.3. Opening a Company

Maybe you need to keep numbers for more than one business. Peachtree enables you to
account for the financial information of more than one company. Although you can open
only one company at a time, you can switch back and forth between companies very easily.
 Opening a Peachtree company from within Peachtree

The steps to open a company differ, depending on whether you‘re opening a company while
already in a Peachtree company or whether you‘re opening a company from the Peachtree
Start Screen. If you‘re already in a Peachtree company and want to open a different one,
follow these steps:
1. Choose File➪Open Company (or press Ctrl+O).
2. You get an annoying little message telling you that you‘re closing the current
company. Peachtree allows only one open company at a time.
3. Click the Do not display this message again check box to permanently disable the
message box.
4. Click OK to acknowledge the message. The Open dialog box appears.
5. From the Open dialog box, click the company name and then click OK.
The newly opened company name appears at the top of the screen. No matter which company
you open, the menu choices remain the same.
 Opening a recently used Peachtree company

If you find yourself frequently switching back and forth between several companies, Peachtree
provides an easier method; the Open Previous Company option. This option lists up to ten
previously opened Peachtree company names from which you can select. Follow these steps to
open a previously open company:
1. Choose File➪Open Previous Company.

2. A list of previously open Peachtree company names appears.
3. Click the company name that you want to open.
4. The annoying little message that we mention in the previous section appears unless
you turned it off.
5. Click OK to acknowledge the message. The selected company opens on the screen.
 Opening a company from the Peachtree Start Screen

If you‘re opening a company from the Peachtree Start Screen, a different dialog box
appears. To open a company from the Peachtree Start Screen, follow these steps:
1. Click Open an existing company to display the Open an Existing Company dialog box.
This dialog box lists the companies that you recently opened in Peachtree. If the
company name that you want to open doesn‘t appear, click the Browse button and
make your selection from the Open dialog box.
2. Click the company name that you want to open and then click OK. The selected
company opens.
 Exploring Peachtree’s Windows

Most windows in Peachtree are similar. They have places for you to fill in information and
buttons that you use to take actions in that particular window. The Maintain Customers/Prospects
window is typical of many other windows that you use in Peachtree.
For an example, open Bellwether Garden Supply and choose Maintain ➪

Customers/Prospects. Take a stroll around this window.
 Managing window sizes and placement

Depending on your screen size and resolution, you might not see enough of a window to suit
your needs. Some windows, such as the Sales/Invoice window, display more lines when made
larger. If you resize the window manually, Peachtree remembers that setting and uses it each
time. You can also maximize the window, and Peachtree remembers that you like it maximized.
Place your mouse pointer around the border of any window until the pointer displays as a
double-headed arrow. Click and drag the border until the window is the appropriate size.
 Exploring fields and records

The main part of a Peachtree window consists of fields. Stop for a moment and ponder these
components. When we refer to fields, we‘re not talking about the place corn grows. Fields are
pieces of information that fit into a record, which is a type of electronic 3 x 5 index card. A
record is all the information about one customer, vendor, employee, or inventory part, but a field
is one piece of the record such as the ID, name, or phone number. In Figure 1-3, the record is all
of the information about Archer Escapes and Ponds, and Nancy Archer is in the Contact field.

Figure 1-3: Each record has many different fields.

 Looking up information
Some fields, such as Customer ID, have a magnifying glass next to them. These fields contain
lookup lists that display a list of your customers (or vendors, accounts, employees, inventory
items, and so on). You can choose a record from a lookup list. Depending on the global options
that you set, a lookup list may automatically appear as you type any character in the field, or you
can click the lookup list indicator (the magnifying glass) to display the list that‘s relevant to the
current field. (See Figure 1-2.)
Optionally, to display the lookup list, either click the right mouse button in a lookup box or press
the Shift key along with the question mark (?).
You can do any of the following while in a lookup list:
Select a customer (vendor, item, and so on) and then click OK. Peachtree selects the highlighted
record and closes the lookup list.
Click Cancel to close the lookup list without selecting a record.

Use the Find feature to search for a string of characters. The search covers any text that you can
see in the displayed list. The Find feature is not case sensitive. Press Enter after you type the
lookup text in the entry box. Peachtree highlights the first item that matches your request.
Click Find Next to find the next instance of the previously entered Find text. If no next instance
exists, the Find feature skips to the first instance in the lookup list. If no instance exists at all, the
Find Next feature does nothing.
Click Sort to sort the displayed list either alphabetically by the ID or name. (Numbers come
before letters.)
Use the Help option if you need it.
Some lookup lists, particularly the ones in the Task menu selections, have two additional
buttons.
Use the New button to add customers, vendors, employees, or inventory items on-the-fly, which
means Peachtree adds the record right in the middle of entering a transaction.
Click the Edit button to edit the record of a customer, vendor, employee, or inventory item.
 Just browsing
Similar to buttons you use with a Web browser, Peachtree includes browse but-tons to quickly
scan the next record or the previous record. If you‘re in a maintenance window, such as Maintain
Customers/Prospects or Maintain Inventory Items, the browse buttons move between the records
in the order of customer ID or inventory item ID.
If you‘re in a Task window, the browse buttons move between the previous transaction and the
next transaction.
 Making a date
Many Peachtree windows have date fields where you need to enter data based on the calendar. If
you‘re a keyboard-type person, you can simply type the date. Dates need to be typed as numbers.
If you want, you can type the date by using the / (slash) key, but the slash isn‘t necessary. For
example, to enter September 16, 2004, type 091604 or 09/16/04. Be aware that Peachtree doesn‘t
allow you to use a dash (-) in a date.

In most Peachtree date fields, you can get away with entering just the first four digits of a date.
Peachtree then enters the year. The year is based on the system date displayed on the Peachtree
status bar.
Now if you‘re like us, we need a calendar in front of us to select dates. Fortunately, Peachtree
fields that require you to select a date also include a calendar, shown in Figure 1-4, so you can
click that to select a date. To select a date from the calendar, follow these steps:
1. Click the calendar icon next to a date field to display the current month.
2. Click the left-pointing arrow next to the month name to display a previous month or click
the right-pointing arrow to display a future month.
3. Click the date that you want for the date field.
The small calendar closes, and the date appears in the field.
Figure 1-4: Click a date to insert it into a Peachtree date field.

 Using the window toolbar

Earlier in this chapter, we mention the Peachtree toolbar, which appears on the status bar at the
bottom of your screen. Most Peachtree windows include their own toolbars located across the top
of the window. You use the Peachtree tool-bar across the top of the window to complete the
various tasks involved with the selected window.
The exact buttons vary slightly from window to window, but most of them have a Close button.
To get out of a Peachtree window, you can use the Close button or the Windows Close button
(X).
If you position the mouse pointer over any button on the toolbar, a small yellow box called a
Tool Tip appears to explain the use of the button. Tool Tips are great for those CRS moments
when you look at a button and cannot remember its function. CRS (Can‘t Remember Stuff) is a
widespread disease that affects people of all ages, races, religions, and hair colors.
You also use the Save button frequently. The Save button appears on the tool-bar if you‘re
modifying data records, such as customers, from the Maintenance menu or if you‘re using a
transaction entry window under the Tasks menu, such as Payroll Entry or Inventory
Adjustments. You click the Save button to save the displayed transaction, and if you‘re using the
real-time posting method, Peachtree also posts the transaction to the General Ledger (G/L). (See
Chapter 2 for an explanation of posting methods.)
Post is one of those words with many different meanings. It can be a noun like the place you tie
your horse, or it can be a verb and mean to send. Of course, the latter is how the word post is
used in accounting, and it means to save and send. In Peachtree, you‘re sending transactions to
the general ledger (G/L); then, when you want to find out whether you‘ve made any money this
month, Peachtree is able to show you.
 Getting a Helping Hand

We really hope that you get most of the answers you need from this book. However . . .
sometimes you need additional assistance.
 What’s this all about?

If you‘re in a Peachtree window and don‘t quite know what a particular field represents or what
you‘re supposed to enter in that field, you can use the What‘s This feature, which is similar to
features that you‘ve probably used in other Windows applications. In Peachtree, right-click the
field where you need a hint. Then choose What‘s This from the menu that appears. A summary
definition of the field appears. To close a What‘s This text box, click inside it.
 For our next demonstration . . .

Peachtree includes a series of demonstrative movies to help you with some key practices. The
demos include topics such as how to make backups, change accounting periods, drill down in
reports, and a variety of other subjects.
1. Choose Help ➪ Show Me How To to display a list of demo topics.
2. Select the demo that you want to see.
A demonstration window appears. Sit back, relax, and enjoy the show. Be nice
and share the popcorn!
 Using the Help Contents

The Peachtree Help system works in an HTML format, which simply means that it looks and
works similar to a Web page. For easy navigation, the help windows have Back and Forward
buttons as well as a Home button. To open the Help Contents, follow these steps:
1. Choose Help➪Contents and Index to open the Peachtree Help window.
The Contents tab appears on top. The Help Contents feature presents help
information in a book-like format, making browsing available topics easy. If
you‘ve used the Help Contents tab in other Windows programs, you already know
how to use the Help Contents in Peachtree.
2. If they aren’t already displayed, click the Contents tab to display a

list of topics available in Peachtree Help.
3. Double-click a book to open that topic.
4. Continue opening books until you find the topic that you want to read.

5. Click the page icon to display the topic.
The help information is displayed on the right side of the screen. From this point,
you can click the underlined hyperlinks to jump to related topics or print a topic.
 Using the Help Index

Use the Help Index to look up a keyword or phrase in the extensive online index. The Peachtree
Help Index feature works the same as the Help Index in other Windows applications. To use the
Help Index, follow these steps:
1. Choose Help ➪Contents and Index to open the Peachtree Help window.
2. Click the Index tab.
3. Scroll through the index to locate the term that you’re looking for. Peachtree lists the
index in alphabetical order.
4. Double-click a keyword.
Peachtree displays a list of topics relevant to the keyword you selected.
5. Double-click the topic you want.
Peachtree displays the topical information on the Help window‘s right panel.
If all else fails, you can also access the Peachtree manuals from the Help menu.

Chapter 3-What Information Gets Setup
CHAPTER 3: WHAT INFORMATION GETS

SETUP
Dear Learner,
In this Chapter . . .
Every project has a beginning point. If you are just getting acquainted
with Peachtree, this part is the place to start. In this part, you find out
how to navigate through the Peachtree screens and how to set up your
existing company records in Peachtree. If you‘ve been using Peachtree
for a while, you might want to review this part and jump to the next
parts because they talk about designing the Chart of Accounts and
setting up defaults to make using Peachtree easier.
Sincerely,
Seamless Team
3.1. New Company Setup Procedures

When you want to set up a company in Peachtree, you can use the ―New Company‖ wizard to
quickly and easily create your new business and enter the information into Peachtree. You can
start the ―New Company‖ wizard by selecting ―File| New Company…‖ from the Menu Bar. The
―New Company‖ wizard displays different windows into which you will input your company‘s
information before using Peachtree. The information collected during this process includes your
basic company information, what accounts you will need to have in your company‘s chart of
accounts, your accounting method, the posting method used for transactions, your default
accounting periods, and your company file‘s default values.
For each screen of the ―New Company‖ wizard, you will enter information and answer the
questions that are posed to you. When you have answered all of the questions and input all
necessary information on a particular screen, you click the ―Next>‖ button to continue. You can
always click the ―<Back‖ button to return to a previous screen of information, if necessary. If

you need assistance in any screen, you can also click the ―Help‖ button to open a supplemental
help window which can further explain what is required for each screen.
When you are finished with all of the screens and click the ―Finish‖ button, Peachtree will then
create your company‘s data file. Below is a listing of the major sections of the wizard,
and what you will be expected to provide to Peachtree in each section.
Description of Function:
1. Company Information Allows you to enter company information. This includes the
company‘s name and address, as well as federal and state identification numbers.
2. Chart of Accounts Allows you to create a chart of accounts for your new company.
You can import settings from another file, or create new list from a list of several sample
company templates. You can also convert from other accounting programs here as well.
3. Accounting Method Here is where you decide whether your company will use Cash or
Accrual Accounting. If you are unsure as to what accounting method your company uses,
check with your accountant.
4. Posting Method Allows you to select between ―Real Time‖ or ―Batch‖ posting.
With ―Real Time," your transactions are immediately posted to the General Ledger, and
Peachtree will always reflect your most current financial information.
5. Accounting Periods Here you decide which accounting period structure you want for
your company. You can specify the number of accounting periods, and when they start
and end.
6. Defaults The defaults window will only appear if you chose to setup your chart of
accounts using one of the sample companies. It will display the detail for Vendor,
Customer, and Inventory defaults. Note any changes you wish to make here to change
later.
7. Finish This screen reminds you that you can use the ―Setup Guide‖ to customize the
defaults used in the company file and enter new data records.
Peachtree walks you through the process of creating a new company. This makes it easier to get
your new company started.

You need only enter a minimum of information to initially set up your company. This
information includes the chart of accounts, your accounting method, your posting method, and
your accounting period structure. After you complete Create a New Company, Peachtree offers a
Setup Guide so you can set up default information, data records, and beginning balances for
1. Chart of Accounts
2. Employees
3. Vendors
4. Inventory
5. Customers
6. Jobs
7. Users
But before you set up a company in Peachtree, you may want to make some initial decisions
based on how you work and the legal regulations that apply to your business.
Accounting Methods
One up-front decision is the type of accounting method used. The two different accounting
methods reflect the way you record income and
Dear Student,
In order to be successful in your study and tutorial please carefully go through the following
general introduction. As a result, this will help you to be successful in completing the application
of computerized accounting software. In this module, your previous Introduction to Computers
and Basic Accounting Principles courses will help you to gain those basic skills.
Peachtree Accounting:
For some of the chapters you will learn how to set up your own company, simply follow the
steps in the chapter problem provided. However, some chapters require that you load a data file
(Peachtree Back up file) that has some of the needed data already completed.

To load the data file you will open the Peachtree software and open an existing company (a
sample company may be opened).
Once the company files opens select File from the Menu bar and then select Restore from the
submenu. You will need to determine where your data files are stored (on a hard drive or disk)
then select the correct file. You may restore this file as an Existing Company or as a New
Company.

Peachtree makes use of periods to keep users from changing data in previous periods. It will be
necessary for you to verify that you are working in the correct accounting period. At the bottom
of the screen you will see a Peachtree Today button, the Current Date button and then the Period
button select that button to change accounting periods. You will be asked if you want to run
reports and complete an audit – answer no to both questions.
Any other miscellaneous requests not specifically addressed in the instructions should be answer
with No.
Peachtree:
This software program is a little more difficult to set up a new company, for this reason all
chapter problems will require a data file. The Peachtree data files are also company files – this
means that you will only need to double click on the data file to open the file. You should
already have the Peachtree software loaded onto the computer for the file to open successfully.
It is suggested that you not open more than a few windows in Peachtree at a time. It can become
confusing if you have many windows open. Windows open on top of each other and the screen
can appear as if only one window is open.
If the Class Tracking notification comes on go to Edit in the Menu bar then select Preferences.
On the left of the screen select Accounting and then the Company Preferences tab. Deselect Use
Class Tracking and the select OK.
Any other miscellaneous requests not specifically addressed in the instructions should be answer
with No

3.1.1. CREATING A NEW COMPANY FILE:

 Click on ―Set up New Company‖
 Introduction Screen: You will need

1. Company Name and address
2. Chart of Accounts- See Generic Data
3. Accounting Method- Accrual
4. Posting Method – Real Time
5. Accounting Periods - 12
Click Next
 Federal ID # 95-123456
State ID # 235-123456
State Unemploy # 235-123456
Business Type: Corporation

Click Next
 Chart of Accounts – Click on radio dial ―Build your Own Company‖, Click next
 Accounting Method: Accrual, Next

 Posting Method: Real Time, Next
 Accounting Periods: 12 monthly accounting periods, Next
 Monthly Accounting Periods: Beginning 1st Fiscal Year? July

1st month? July
Payroll: 2000

 Follow the Set-up Checklist, Click Finish: Creating Data Files
 Checklist appears. Click on box in front of Main File to check it. Click on the words to
go to that Main File Maintenance.

1. Start Peachtree.
2. Select ―File| New Company…‖ from the Menu Bar.
3. In the ―New Company Setup Wizard," click the ―Next>>‖ button at the bottom of
the window.
4. For each of the following screens, answer any questions posed and continue
clicking the ―Next>>‖ button to proceed from screen to screen.
5. On the final screen you can click the ―Finish‖ button to create your company file.
Enter the company name, address, phone, and fax information.
From the list in the Business Type field, select your business type.
The business type defines the kind of business you run and determines the makeup
of the Equity section of your chart of accounts. You can change the business type at
any time. You can choose from the following:
1. Corporation
2. S Corporation
3. Partnership
4. Sole Proprietorship

5. Limited Liability Company
Enter your Federal, State Employer ID, and State Unemployment ID.
Enter your company’s Web site and e-mail address, if applicable.
3.2. Setting up Default Information

If you set up preferences in Peachtree before you dive into the day-to-day stuff of managing your
company‘s books, you save time because Peachtree uses the default information as a model for
the tasks you do daily. You know, stuff like creating vendors, customers, employees, and
inventory items, and entering transactions (purchase orders, purchases, invoices, payroll checks,
and so on). You can alter this global information when a particular person or item requires
something other than the default.
1. } Setting purchasing preferences

2. } Determining sales preferences
3. } Setting up payroll preferences
4. } Choosing inventory preferences
Terminology alert: Peachtree switches back and forth between two terms when referring to bills
that vendors send you: a purchase and an invoice. For the sake of clarity, we call a vendor bill a
purchase; invoices are the things you send to customers so that you can get paid.
3.2.1. Setting Purchasing Preferences

―What kind of information do I need to supply for vendors?‖ you ask. Well, you set up standard
terms. Terms describe how long the vendor gives you to hold a bill before you need to pay it and
how you want Peachtree to respond if vendors offer you a discount for paying early. You also
identify the default account to assign to most vendor bills and vendor discounts. And you specify
how you want Peachtree to age bills that you enter. Lastly, you can set up custom fields for
vendors so you can track information that you specify about the people from whom you buy
goods or services.
Aging refers to how long you hold an invoice from the date it was issued.

Peachtree applies these preferences to all vendors you create and all purchases you enter. If a
vendor or a transaction is unusual in some way, you make a change to the specific vendor or
transaction. Using standardized information in this way saves you time because you need to
change the standard information only for exceptions to the rule. And face it — we all like to save
time. See Chapter 5 for information on setting up vendors.
Establishing default payment terms and accounts

Efficient bill paying is an art. You don‘t want to pay your bills too early or too late. For example,
if your bank account earns interest, you don‘t want to pay a vendor‘s bill too soon, because you
lose interest from the bank. On the other hand, if your vendor assesses late fees or finance
charges for bills that you don‘t pay on time, you don‘t want to pay a bill too late.
Using the Peachtree Vendor Defaults dialog box, you can establish a typical set of terms to use
for most vendors. Chapter 5 shows you how to create vendors and how Peachtree automatically
assigns these default terms to each vendor. You need to change terms for only those vendors who
don’t use the typical terms.
To set default payment terms and accounts that most vendors use, follow these steps:
1. Choose Maintain ➪Default Information ➪Vendors.
Peachtree displays the Vendor Defaults dialog box (see Figure 4-1).
You can also choose Options➪Default Information➪Vendors to reach the same screen and set
the same options.
2. From among the Standard Terms option buttons, select the option that best describes
the terms most of your vendors offer you.
The terms shown in Figure 4-1 are 2% 10 Net 30, which means you can discount the bill by 2
percent if you pay it within 10 days; otherwise, the entire amount of the bill is due in 30 days.
3. Fill in the appropriate fields to the right of the terms you select in Step 2.
As you select an option button on the left, the fields on the right change. For example, if you
select C.O.D. (cash on delivery) or Prepaid, only the Credit Limit field on the right remains
available, because none of the other fields apply.
4. At the bottom of the Payment Terms tab, click the magnifying glass to select the
account that you use most often when you post purchases from vendors.
If you don‘t select an account, Peachtree prompts you for an account each time you create a new
vendor. If you do select an account, Peachtree fills it in automatically when you create a new
vendor.
5. In the Discount GL Account field, select the account to which you want Peachtree to
post discounts that vendors give you for paying in the specified time.
To select the account, type its account number or click the lookup list button (the magnifying
glass) to the right of the account number to display a list. In the list, highlight the account
number and then click OK.
6. Click OK to close the dialog box or leave it open to review additional defaults in the
sections that follow.
Keep two points in mind: First, you may never receive discounts from your vendors, but
Peachtree expects you to set up the account anyhow. Second, you may want to increase the credit
limit while you‘re setting other vendor defaults. If you exceed the credit limit when buying from
a vendor, you can still buy from the vendor, but you see an annoying message telling you that
you‘ve exceeded the credit limit.
Aging vendor bills
When you age a bill, you hold onto it for a specified period of time before you pay it. You can
age purchases (that is, you can tell Peachtree to count the number of days you hold the bill) from
either the billing date or the due date.

To set account aging defaults, choose Maintain ➪Default Information ➪Vendors. On the
Account Aging tab, select a method to age bills: Invoice Date or Due Date. Optionally, you can
change the number of days in each of the four columns on the Aged Payables report.
You may find the difference between the two aging methods easier to understand if you take a
look at two Aged Payables reports, each prepared by using one of the aging methods. In Figure
4-2, we set the Aging option to Due Date and then prepared a customized Accounts Payable
Aging report for only one vendor, Akerson Distribution, as of March 31, 2007. In Figure 4-3, we
switched the Aging Option to Invoice Date and printed the same report for the same vendor and
time frame. (Note that invoice here refers to bills your vendors send you — what we call
purchases.)
Both reports show four outstanding bills for Akerson Distribution. Each bill, along with its date
and due date, is listed on a separate line.
Notice the third bill — the one for $5,962.50. It was posted as of February 1, 2007, with terms of
Net 30; that is, the bill is due 30 days from the bill date of February 1 — on March 3. On the first
report, the bill appears to be somewhere between 0 and 30 days old, whereas on the second
report, it appears to be somewhere between 31 and 60 days old. In actuality, according to the first
report, on March 31, 2007, the bill is somewhere between 0 and 30 days past the due date of the
bill. According to the second report, on March 31, 2007, the bill is somewhere between 31 and
60 days past the invoice date of the bill.
Figure 4-3: An Aging report showing bills aged by invoice date.

This report is not showing you what is overdue; it‘s showing you the bill‘s age based on the
number of days past either the due date or the invoice date.
Many people choose to age vendor bills by due date because the bills look ―less overdue‖ on the
aging report.
1099 Settings
On the 1099 Settings tab of the Vendor Defaults dialog box, you can (if necessary) change the
way that Peachtree calculates 1099 payments. For each account on the Chart of Accounts, you
can identify whether and how Peachtree should calculate 1099 income. By default, Peachtree
assumes that you will establish the correct 1099 type for each vendor when you create the
vendor, so each account is set up to look at the vendor‘s record. You can, however, specify that a
particular account should be used to calculate 1099 miscellaneous income or 1099 interest
income, or you can specify that the account should not be used when calculating 1099 income. In
most cases, you don‘t need to change the default settings.
Setting Sales Preferences
―What kind of information do I supply for customers?‖ you ask. Well, you set up standard terms
for customers like you do for vendors. This time, though, you‘re the one establishing when
payment is due and whether you offer customers a discount for paying early. Customer terms
also tell Peachtree how to respond if customers pay early. You also identify the default sales
account and discount account where you want Peachtree to assign most customer invoices. You
specify how you want Peachtree to age invoices that you prepare. Like with vendors, you can

set up custom fields for customers to track specific information that may help you increase sales
or offer perks. You also can decide whether to apply finance charges to overdue invoices, and
you can set customers‘ Pay Methods — cash, check, or credit card.
The concept of aging applies also to invoices you send to your customers. In this instance, aging
refers to the specified period of time the customer waits before paying your invoice. You set
payment terms that tell your customers how long you expect them to wait before paying an
invoice — and potentially charge the customer finance charges for late payment.
Like with vendors, Peachtree applies these preferences to all customers you create and all
invoices you enter. If a customer or a transaction is unusual in some way, you can make a change
to the specific customer or transaction.
Establishing default payment terms and accounts
When customers don‘t pay you in a timely fashion, you may experience cash flow problems.
That is, you have money going out of your business for expenses but not enough money coming
in to cover those expenses. To encourage your customers to pay on time, you establish payment
terms similar to the ones your vendors set for you.
From the Peachtree Customer Defaults dialog box, you can establish a typical set of terms to use
for most customers. Peachtree automatically assigns these terms when you create customers (see
Chapter 7). When you create customers, you can change preferences for those customers who
don‘t use the typical terms.
To set default payment terms and accounts for most customers, follow these steps:
Choose Maintain➪Default Information➪Customers.
Peachtree displays the Customer Defaults dialog box (see Figure 4-4).

Figure 4-4: Use the Customer Defaults dialog box to define typical settings for customers.
1. From among the Standard Terms option buttons, select the option that best describes the
terms that you offer most of your customers.
The terms shown in Figure 4-4 are 2% 10 Net EOM, which means your customers can discount
the invoice by 2 percent if they pay it within ten days; otherwise, the entire amount of the invoice
is due at the end of the month. (EOM stands for end of month.) These terms are appropriate if
you typically invoice at the beginning of each month.
2. Fill in the appropriate fields to the right of the terms you selected in Step 2.
The options for customer terms work like the options for vendor terms. As you select an option
button on the left, the fields on the right change. For example, if you select C.O.D. or Prepaid,
only the Credit Limit field on the right remains available because none of the other fields apply.
You can use the Credit Status list to control Peachtree‘s behavior in rela- tion to the customer‘s
credit limit when you enter an invoice. The list contains five choices. On one end of the
spectrum, you can record invoices without seeing any messages, regardless of the relationship
between the customer‘s balance and credit limit. On the other end of the spectrum, Peachtree will
not allow you to enter an invoice for a customer regardless of the relationship between the
customer‘s balance and credit limit. In between these choices, you can have Peachtree display a
warning or an error message when a transaction will cause a customer‘s balance to exceed the
credit limit. And you can have Peachtree display a warning whenever you record a transaction
even if the customer‘s balance doesn‘t exceed his or her credit limit.
3. Select the GL Sales Account that you use most often when you sell goods or services to
customers.
To select the account, type the account number or click the lookup list identifier (the magnifying
glass) to the right of the account number to display and select from a lookup list. If you don‘t
select an account, Peachtree prompts you for an account each time you create a new customer.
4. Select the Discount GL Account you use to track discounts taken by customers.
5. After you finish setting payment preferences, click OK to save those preferences.

Even if you never offer discounts to your customers, Peachtree expects you to set up the
account anyhow. (If you haven‘t set up a Discount General Ledger account, see Chapter 3 for
information on creating accounts.)
Aging customer invoices
We talk about aging a lot in our society, and now you‘re getting a whole new picture of wrinkled
bills and invoices. Just as you can control the aging process for vendor bills, you can age
customer invoices from either the invoice date or the due date. Unfortunately, you can‘t control
the wrinkles from the other kind of aging. . . .
Accounts receivable aging works the same as accounts payable aging — that is, you can choose
to age by due date or by invoice date. Suppose that you post an invoice as of February 20, 2007,
with terms of 2% 10 Net 30.
If you set up accounts receivable aging to age by due date, the invoice is due 30 days from the
invoice date of February 20, which is March 22. On the Accounts Receivable Aging report, the
invoice appears to be somewhere between 0 and 30 days old — that is, on March 31, 2007, the
invoice is somewhere between 0 and 30 days past the due date of the invoice.
Alternatively, if you set up accounts receivable aging to age by invoice date, the same invoice
appears on the Accounts Receivable Aging report to be somewhere between 31 and 60 days old.
That is, on March 31, 2007, the invoice is somewhere between 31 and 60 days past the invoice
date of the invoice.
This report shows you all invoices, including those not yet due as well as those that are overdue.
Although most people use this report to identify overdue invoices, the report‘s actual purpose is
to show you the age of invoices based on the number of days past either the due date or the
invoice date.
Many people choose to age customer invoices by invoice date because the aging report then
reflects how old the invoice is. Others prefer to age invoices by due date so that they can see how
many days the invoice is overdue.
Creating custom fields for customers

On the Custom Fields tab of the Customer Defaults dialog box, you can enter labels for up to
five fields for each customer. Use these fields to store extra information about customers, such as
noting new customers who found your business on the Web. In the Enabled column, select the
check box next to each custom field that you want to use and then type the name of the custom
field in the Field Labels text box. When you set up customers, you can fill in this information for
each customer. On some reports in Peachtree, you can print this information.
Suppose that you‘ve established a label and filled in information for customers. If you reopen the
Customer Defaults dialog box and change the label, you won’t affect the information you stored
for each customer; you must edit each customer‘s record and make a change to match the new
label you‘ve established. If you simply don‘t want to show the information you‘ve already
entered, you can hide the stored information by deselecting the Enabled check box in the
Customer Defaults dialog box. However, the information reappears if you enable the custom
field once again
Setting up finance charges

Finance charges are fees that you charge customers who pay late. Many businesses don‘t charge
finance charges; others believe that finance charges encourage customers to pay on time and
therefore improve cash flow. Still others believe that charging these fees is necessary if
customers continuously ignore payment terms.
If you want to be able to charge finance charges, follow these steps:
1. Choose Maintain ➪Default Information ➪Customers and click the Finance Charges
tab of the Customer Defaults dialog box.
2. Select the Charge Finance Charges check box.
3. Complete the remaining information to tell Peachtree how to calculate finance charges.
Peachtree charges an interest rate that you specify on invoices that are overdue by the number of
days you indicate. You can charge a higher rate on balances that exceed an amount you stipulate,
or you can specify a minimum finance charge amount.
4. (Optional) Select the Charge Interest on Finance Charges check box.

Selecting the Charge Interest on Finance Charges check box tells Peachtree to calculate interest
on any unpaid balance as well as unpaid finance charges. Check with your accountant before you
select this check box; in some states, it is illegal to charge interest on interest.
5. Use the lookup list button to select a GL account for finance charges.
6. From the Appears on Invoices and Statements As list, select the description for the
finance charge (either Late Charge or Finance Charge).
7. (Optional) Provide a warning message that Peachtree can print on invoices.
8. Click OK.
This information becomes part of your standard terms.
Enabling finance charges does not make Peachtree automatically assess finance charges. And
you don‘t need to assign finance charges to all your customers. See Chapter 8 for information on
assessing finance charges.
Establishing payment methods
Payment methods are exactly what they sound like — the various methods of payment that your
company accepts. You establish these default settings on the Pay Methods tab of the Customer
Defaults dialog box. Choose Maintain➪Default Information➪Customers and click the Pay
Methods tab. Then, in the fields provided, type the names of the payment methods your
company accepts.
These payment methods are available when you record payments you receive from customers.
You can include the Payment Method field on reports. For example, you can add this field to the
Cash Receipts journal and filter the journal to see transactions of only one particular payment
method.
Adding a new payment method after you already recorded transactions in Peachtree doesn‘t
affect previously recorded transactions. The new payment method is simply available for new
transactions.
On the Pay Methods tab, you also can tell Peachtree to automatically assign deposit ticket IDs in
either the Receipts window or the Select for Deposit window. Deposit ticket IDs help you group
payments you receive from customers. To help you reconcile your bank statement, you

typically use the same deposit ticket ID for all customer payments that you plan to deposit in the
bank at the same time. See Chapter 8 for more information on recording receipts and using
deposit ticket IDs.
Setting Payroll Preferences
You have three ways to handle payroll preparation in Peachtree. For a fee, you can use the
Peachtree Payroll Service and let Peachtree do everything for you, or you can do your payroll in-
house. If you choose to do payroll in- house, you can (again, for a fee) subscribe to the Peachtree
Payroll Tax Update Service (which we recommend) or you can manually update payroll tax
tables yourself.
Peachtree does not come with tax tables that calculate federal taxes. To subscribe to the
Peachtree Payroll Tax Update Service, visit the Peachtree Web site at www.peachtree.com.
Because the service sends you updates whenever laws change that affect payroll taxes, we
suggest that you subscribe to this service to ensure that you‘re always using the most up-to-
date tax tables. In addition, if you subscribe to the service, you‘ll be able to use the Print &
Sign payroll tax forms to prepare 941 Quarterly Reports and W-2s. You can read more about
these forms in Chapter 17.
For an additional fee, you can let Peachtree file federal and state payroll tax returns, make
payroll tax deposits, and produce and mail W-2s for you. Also, with any in-house payroll
solution, you can subscribe to Peachtree‘s Direct Deposit service.
If you decide to use the Peachtree Payroll Service and let Peachtree do payroll for you, you
can skip this entire section. If you decide to use Peachtree features to prepare payroll, you need
to identify some basic information, such as the state where your company operates.
Understanding payroll is difficult even when you aren‘t worried about setting up payroll in an
accounting program. On the Good News front, though, Peachtree uses a wizard to walk you
through establishing the defaults for preparing payroll checks and tax- related forms (W-2s,
Federal Form 940, and Federal Form 941).
You can use the Payroll Setup Wizard to help you set up payroll when you first create a
company or later, after you‘ve been using Peachtree for a while. No problem take your choice.
We suggest that you use the Payroll Setup Wizard after you subscribe to the Payroll Tax Update

Service. In the paragraphs that follow, we show you how to use the wizard to set up basic payroll
information.
Using the Payroll Setup Wizard
The Payroll Setup Wizard helps you set up basic information about payroll, including payroll
fields that Peachtree then uses to calculate payroll checks. Payroll fields are things such as gross
wages and federal income tax (FIT) — one of those many mysterious abbreviations that appear
on your payroll check stub. Chapter 19 describes how to set up a payroll field for some common
payroll deductions (or additions, for those lucky enough to get a bonus) that you want to include
on a paycheck.
The Payroll Setup Wizard can be useful after you‘ve set up payroll as well. For example,
suppose that your company didn‘t have a 401(k) plan when you originally set up payroll but later
decided to add one. The Payroll Setup Wizard makes implementing this change easy.
Similarly, you can set up payroll and then decide to track vacation and sick leave. See Chapter
19 for information on setting up a 401(k) plan; you use the same basic technique to set up
vacation and sick leave that you use to establish a 401(k) plan.
The Payroll Setup Wizard asks you for the General Ledger account numbers that you intend to
use for payroll. If you base your Chart of Accounts on one of the standard companies when you
create your company, the Payroll Setup Wizard suggests payroll accounts. If you haven‘t defined
payroll accounts when the wizard asks for them, you can define them on the fly. Refer to Chapter
3 for details on setting up accounts.
Some people create separate payroll liability accounts for each payroll tax liability. To make
your life easier when using Peachtree, we recommend that you create payroll liability accounts
that correspond to the taxing authorities you pay. For example, you pay FIT, FICA, and
Medicare to the same taxing authority, so set up only one payroll liability account for all three
taxes. If you pay state and local taxes to the same taxing authority, set up only one liability
account for state and local taxes. Check with your accountant if you‘re unsure. We recommend
this approach because it makes writing your payroll tax liability checks easier.
Setting Inventory Preferences

Before you start filling your virtual shelves in Peachtree, you need to set up the preferences that
help track all those wonderful items as they come and go. Inventory items, in Peachtree terms,
are typically things that you buy from vendors or sell to customers. It‘s important to understand
that Peachtree inventory items don‘t necessarily have to be things that you keep on hand or that
add value to the balance sheet. The item class of the inventory item determines whether it adds
value to your balance sheet. In the ―Inventory items and General Ledger accounts‖ section later
in this chapter, you can read about item classes.
You can set preferences for inventory items by using the Inventory Item Defaults dialog box,
which you open by choosing Maintain➪Default Information➪Inventory Items. The dialog box
contains six tabs. On the General tab, you can specify whether to permit duplicate values in the
UPC/SKU field and in the Part Number field of inventory items. Read on to find out about the
other defaults you can set.
Inventory items and ordering defaults
The Ordering tab of the Inventory Item Defaults dialog box, as shown in Figure 4-7, helps you
control issues related to, well, ordering inventory items. For example, you can choose to have
Peachtree include items on purchase orders when it calculates the quantity available.
Figure 4-7: Use the Ordering tab to set ordering defaults.
You can have Peachtree display an Out of Stock warning when you‘re entering a sales order, an
invoice, or a receipt for an inventory item that is out of stock based on either the quantity on
hand or the quantity available.

In the last section of the Ordering tab, you can enable the auto-creation of purchase orders for
drop-ship transactions and non–drop-ship transactions. If you enable real-time posting and assign
a preferred vendor to each inventory item, Peachtree automatically creates purchase orders for
you when you convert a drop-ship quote to a sales order or to an invoice. Peachtree also creates
purchase orders when you enter a drop-ship sales order or a drop- ship invoice containing
inventory items.
If your transactions are not drop-ship transactions, you can have Peachtree automatically create
purchase orders for you when the quantity of an item you specify causes the quantity available as
of the transaction date to fall below the minimum stock levels you set for the item. Again, for
this feature to work, you must enable real-time posting and assign a preferred vendor to each
inventory item.
See Chapter 5 for details on automatically creating purchase orders and Chapter 7 for details on
drop shipments.
3.3. Changing System Dates and Accounting Periods

Figure shows Selecting options by using the navigation bar
At the top of the open center you see the Button Control Bar that displays, among other things,
the current system date and the current accounting period. (See Figure 1-3.)
Figure 1-3: The current accounting period appears on the Navigation Bar toolbar
Like many applications today, Peachtree provides a variety of ways to use the software. You can
perform your Peachtree duties by using the Button Control Bar, the Shortcuts section, or – a
more traditional method -menu commands.
In most Peachtree date fields, you can get away with entering just the first four digits of a date.
Peachtree then enters the year. The year is based on the system date displayed on the Button
Control Bar.
Now if you‘re like us, we need a calendar in front of us to select dates. Fortunately, Peachtree
fields that require you to select a date also include a calendar, as shown in Figure 1-7, so you can
click that to select a date. To select a date from the calendar, follow these steps:
Figure 1-7: Click a date to insert it into a Peachtree date field
1 Click the calendar icon next to a date field to display the current month.

2 Click the left-pointing arrow next to the month name to display a previous month or
click the right-pointing arrow to display a future month.
3 Click the date that you want for the date field.
The small calendar closes, and the date appears in the field.
Changing Accounting Periods

When you open Peachtree, note the date that appears in the middle of the Button Control Bar,
next to the current accounting period. The date matches the system date on your computer, and
Peachtree uses that date as the default date for every transaction you enter.
This is true except when the accounting period changes. Look at an easy example: You use
standard months in the calendar year for accounting periods, and your fiscal year matches the
calendar year.
Fiscal year refers to the year your business uses. The fiscal year can be the same as the calendar
year, running from January 1 to December 31. Or the fiscal year might run from April 1 to
March 31 or from July 1 to June 30. You and your accountant establish your fiscal year with the
IRS.
So, assume that the current accounting period is January. All through the month, Peachtree
defaults transaction dates to the current day of the month in January. On February 1, Peachtree
will correctly report the date in the Button Control Bar, but the default date for transactions will
not be February 1 because you haven‘t changed the accounting period. The default date on
transactions will be January 1 — and will remain January 1 for all subsequent days — until you
change the accounting period.
So, what‘s the big deal? Well, you might be sitting around posting February transactions in the
accounting period that runs from January 1 through January 31. That, of course, will misstate the
financial condition of your business for both January and February. You need to change the
accounting period on the first day of each new period.
―Is this a difficult thing?‖ you ask. Nope. ―Don‘t you need to wait to change the accounting
period until you‘ve posted everything in the current period?‖ Nope. You can switch back to any
open period at any time. ―You mean that changing the accounting period doesn‘t close it?‖ Yes,

that‘s what we mean. In fact, in Peachtree, you can‘t close a single accounting period; you can
close only a fiscal year, a subject we talk about later in this chapter.
Although you can change to a prior accounting period, we don‘t recommend that you make
changes to transactions in a prior period after giving your data to your accountant. Such actions
tend to strain relationships.
If you enable security in Peachtree Complete or higher, a padlock symbol appears in the Change
Accounting Periods dialog box next to prior periods. You can allow users to view prior period
transactions but prevent them from editing those transactions using Peachtree‘s security settings.
In the User Security window, click the Company tab. Then, under Tasks, open the Transactions
in Prior Periods list box and choose Read. For more information on Peachtree and security, see
Chapter 18.
When you move forward to a new accounting period and operate on an accrual basis, Peachtree
asks you whether you want to print invoices, checks, and reports before changing the period.
(If you operate on a cash basis and have printed all checks and invoices, Peachtree asks only
about reports.) If you haven‘t finished entering transactions for the period, you don‘t need to
print anything. However, we suggest that you simply answer no to these questions, even if
you‘ve entered all transactions. Then when you‘ve finished entering everything for a period, use
the Reports menu to print all the reports for the period — the journals discussed at the end of
the chapters in Part II and the financial reports discussed in Chapter 14.
To make the report-printing process easier, create a report group that contains all the reports
you want to print at the end of a period. Then you won‘t need to select and set up each report. To
find out how to make a report group, see Chapter 14.
So, why do we suggest that you print reports using the Reports menu before you change the
accounting period? Well, the window you see when you‘re selecting reports to print while
changing the accounting period doesn‘t include a few reports that you might find useful, such as
the Balance Sheet, Income Statement, and Trial Balance reports. And although you can print
these reports at any time for any period, printing them for an accounting period while you‘re
working in that accounting period is easiest.

Second (for reasons we don‘t understand), when you print reports while changing the period,
Peachtree displays reports from prior periods as well as reports from the current period. You
might think the reports appear because you‘ve changed a transaction in a prior period, but we
can‘t prove that.
We‘ve found that printing reports using a report group is faster and easier.
Follow these steps to change the accounting period if you operate on an accrual basis:
1. Click the Period button (as shown here) on the Button Control
Bar or choose Tasks➪System➪Change Accounting Period.
The Change Accounting Period dialog box appears (see Figure 17-1).

Figure 17-1: Use this dialog box to switch to a different period
2. Click the new period you want to use and then click OK.
Peachtree might display a dialog box asking whether you want to print invoices or checks. If the
dialog box appears, we suggest that you click No and print invoices or checks using the batch
printing method described in Chapter 13.
When you select No, Peachtree displays another dialog box asking whether you want to print
reports. Again, we suggest that you click No and create a report group to print reports as
described in Chapter 14.
Peachtree changes the accounting period; you‘ll see the new period reflected at the top of the
screen.
If you operate on a cash basis and have no unprinted invoices or checks, Peachtree doesn‘t ask
whether you want to print invoices and checks, but it does ask whether you want to print reports.
Again, we advise that you not print reports at this time. Instead, see Chapter 14 to learn how to
create a report group to print the necessary end-of-period reports.

Chapter 4- Overview of General Ledger
Chapter 4: Overview of General Ledger

The General Ledger records all financial information for your company. Every transaction that
occurs is eventually posted to the set of accounts that make up the General Ledger. This set of
accounts is called the Chart of Accounts. Here we will look at setting the defaults for the General
Ledger
When you want to set the defaults for the General Ledger, you select ―Maintain| Default
Information| General Ledger…‖ from the Menu Bar to bring up the ―General Ledger Defaults‖
window.
There isn‘t much to set in this window. You simply select the rounding account 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. When you are done selecting a rounding account, click ―OK‖ to set it.

4.1. Maintaining/Customizing the Chart of Accounts

The Maintain Chart of Accounts window is used to add new accounts, including your
bank accounts. You can modify the description of an existing account, delete an existing
account, make an account inactive, or change the account type for an account.
If you have an accountant, you should consult him or her before setting up your chart of
accounts.
➥ From the Maintain menu, select Chart of Accounts.
 Add Chart of Accounts
1 Add Account ID = Account Number

2 Add Description = Account Name
3 Account Type = Account Classification (Use the down arrow button to find the
various classification)

1. Click on Save
2. For next account click on New and follow steps 1-4. Use the Magnifying Glass to see the
list of what you have entered. Click OK to get out.
Print Chart of Accounts

1. Select Reports – General Ledger
2. Select Chart of Account
3. Select screen to view the report first., OK
4. Select the printer icon if the report looks OK.

To Correct Chart of Account

1. Select the ―Maintain‖ pull down menu, then the Chart of Accounts.
2. Enter the account number.
3. Change any field to change except the account number.
4. Select Save.

4.1.1. Adding Accounts:

If you selected to create your chart of accounts using one of the business types listed in the ―New
Company Setup Wizard,‖ then you likely have a full chart of accounts which will give you all of
the accounts necessary to run a business. However, you may want to add, delete, or rename
specific accounts in the default chart of accounts. You will also need to enter ―opening balances‖
for your accounts, as well. This can be done using the ―Maintain Chart of Accounts‖ window.
You can open this window by selecting ―Maintain| Chart of Accounts…‖ from the Menu Bar.
In the ―Maintain Chart of Accounts‖ window you add, rename, and delete accounts. You also use
it to enter opening balances for accounts and prepare account budgets.
Notice the toolbar at the top of the window. It contains buttons that allow you to add, edit, and
remove accounts from your company file‘s chart of accounts. Use the ―Close,‖ ―New,‖ ―Save,‖
―Delete,‖ and ―Change ID,‖ buttons to make modifications to the listed accounts. Below that
toolbar, you can use the ―Account ID‖ drop-down to identify the account by ID. The account ID
can be up to fifteen characters in length and alphabetic and/or numeric. Starting in Peachtree
2004, you can use the ―Change ID‖ button to change account IDs. The ―Description‖ field shows
a description for the account. You can also use the ―Inactive‖ check box to make any active
account ID inactive.
Notice all of the accounts that appear when you click the ―Account ID:‖ drop-down. Double-
click on any ID to select it from the list. If you want a listing of all of the accounts created in
your chart of accounts, select ―Reports & Forms (―Reports‖ in 2003:2008)| General Ledger…‖
from the Menu Bar. This will launch the ―Select a Report or Form‖ window. Here you can select
the ―Chart of Accounts‖ in the Report List, and click the ―Display‖ button (―Preview‖ in
2003:2008) to preview the list. Then if you want to print it, just click the ―Print‖ button in the
report‘s preview window. Starting in Peachtree 2008, you can also access a listing of accounts by
simply clicking the ―List‖ button in the window‘s toolbar to open up a separate account list in a
new window.

Starting in Peachtree 2011, you will see a small window appear at the right side of all of the
―maintain‖ windows, such as this one. This side window is the ―Setup Advisor‖ panel. This
panel shows you information about the purpose and possible uses of whichever field you
currently have selected within the ―maintain‖ window. You can collapse the panel by clicking
the ―X‖ in the upper-right corner. You can click the collapsed panel to expand it again and show
the field information.
When you go to create new accounts in the Chart of Accounts, you will need to fill in the
Account ID that you want to give to the account, the description of the account, and then set the
account type. Let‘s look at the information that we must provide Peachtree in order to add
accounts to the chart of accounts.
The first thing that you must provide Peachtree with is an account number. Peachtree allows the
use of both alphabetic and numeric characters in its account numbers. You should set up an
account numbering system that is systematic and coherent. It should be easy for others to use and
understand. In a traditional General Ledger, individual accounts are numbered and placed into
numeric ranges similar to the following table. This can be a helpful guide in establishing account
numbers.
Account Range: Account Types:
10000 Cash, Accounts Receivable, Assets

20000 Accounts Payable Liabilities.
30000 Equity Accounts 30000 Equity Accounts
40000 Income Accounts 40000 Income Accounts
50000- 70000 Cost of Sales, Expenses Expenses
80000 Other Income 80000 Other Income 80000 Other Income
90000 Other Expenses
Peachtree‘s sample companies use numbering schemes similar to the ones illustrated in this
table.
As you add more accounts, keep in mind a few rules about the ID Codes:
1. You can use up to 15 characters.
2. Beginning in Peachtree 2004, you can modify account IDs after they have been created.
3. You can modify account descriptions at any time.
4. Spaces between characters are allowed.
5. Account numbers are sorted alphabetically: numbers first, then letters.
6. Accounts numbers are case-sensitive in Peachtree versions prior to Peachtree 2006.
7. There can only be one Retained Earnings account.
Once you have entered an account ID, type a description of the account into the ―Description‖
field. Descriptions can be changed at any time. After that, assign the account to one of
Peachtree‘s account types using the ―Account Type:‖ drop-down. They are: ―Accounts Payable,‖
―Accounts Receivable,‖ ―Accumulated Depreciation,‖ ―Cash,‖ ―Cost of Sales,‖ ―Equity- Doesn‘t
Close,‖ ―Equity- Gets Closed,‖ ―Equity- Retained Earnings,‖ ―Expenses,‖ ―Fixed Assets,‖
―Income,‖ ―Inventory,‖ ―Long Term Liabilities,‖ ―Other Assets,‖ ―Other Current Assets,‖ and
―Other Current Liabilities.‖

Remember to click the ―New‖ button each time before you add a new account in the ―Maintain
Chart of Accounts‖ window, and to also click the ―Save‖ button after each new account that you
create to save it into the list. Starting in Peachtree 2008, note that you can save a step in this
process by simply clicking the ―Save & New‖ button, instead.
4.1.2. Deleting Accounts:

As long as there are no transactions in an account and it is not set as a default account for any
items, vendors or customers you can delete it from the Chart of Accounts Just select the account
to delete and click the ―Delete‖ button in the ―Maintain Chart of Accounts‖ window. Then click
―Yes‖ to confirm that you want to delete the selected account.
4.1.3. SETTING THE DEFAULTS FOR THE GENERAL

LEDGER:
1. Select ―Maintain| General Ledger…‖ from the Menu Bar.
2. Select the rounding account for the general ledger by clicking the magnifying glass button
and selecting the name of the account (usually ―Retained Earnings‖) from the list by
double-clicking it.
3. Click ―OK‖ when you are finished selecting the rounding account.
4.1.4. VIEWING THE “MAINTAIN CHART OF

ACCOUNTS” WINDOW:
1. Select ―Maintain| Chart of Accounts…‖ from the Menu Bar.
4.1.5. MAKING AN ACCOUNT IN THE CHART OF

ACCOUNTS INACTIVE:
2. Select the ―Account ID:‖ of the account that you want to make inactive.
3. Click the ―Inactive‖ checkbox, and be sure to save your changes to the account.
4.1.6. RUNNING THE CHART OF ACCOUNTS

REPORT:
1. Select ―Reports & Forms (―Reports‖ in Peachtree 2003:2007) | General Ledger…‖ from the
Menu Bar.
2. Click on the ―Chart of Accounts‖ in the Report List at the right side of the window.
3. Click the ―Display‖ (―Preview‖ in Peachtree 2003:2007) button in the window‘s toolbar to
preview the list of accounts.
4. Click the ―Print‖ button in the preview window to print the report.
4.1.7. ADDING ACCOUNTS TO THE CHART OF

ACCOUNTS:
2. Type an account id in the ―Account ID:‖ text box.
3. Type a description of the account in the ―Description:‖ text box.
4. Select a type of account from the drop-down arrow at the right end of the ―Account Type:‖
box.
5. Click ―Save‖ on the window‘s toolbar to save your changes.
6. Click the ―New‖ button on the window‘s toolbar to bring up another blank account, and go
back to step 2 above. Then repeat until you are finished entering all of your accounts. Note
that starting in Peachtree 2008, you can now simply click the ―Save & New‖ button to
consolidate steps 5 and 6 in this process.
7. Click the ―Close‖ button on the window‘s toolbar to close the ―Maintain Chart of
Accounts‖ window.
4.2. Entering Beginning Balances

Peachtree can record account beginning balances in any period for companies that have no
posted transactions. After one or more transactions have been posted, Peachtree records
beginning balances as prior period adjustments instead. To enter beginning balances for
accounts, you must click the ―Beginning Balances‖ arrow button in the ―Maintain Chart of
Accounts‖ window if using a version of Peachtree prior to 2008. In Peachtree 2008:2012, simply
click the ―Account Beginning Balances‖ button, instead.

Next, select the period for which you want to enter or adjust the account balances in the ―Select
Period‖ window. Usually, account beginning balances are entered in the period previous to the
first period for which detailed transactions will be entered.
The ―Chart of Accounts Beginning Balances‖ window lists each account. Depending on the type
of account, entries are entered into either the ―Assets, Expenses‖ column, or the ―Liabilities,
Equity, Income‖ column. Peachtree indicates which column you should use by making the other
column unavailable (grayed-out). You then enter the beginning balances for your company into
the appropriate accounts under the correct column. Ensure that you enter in all of the information
necessary. If the ―Trial Balance‖ shown at the bottom of the ―Chart of Accounts Beginning
Balances‖ window is not zero, then your books are out-of- balance. If you click ―OK‖ to set the
balances when they are out of balance, an error message will appear telling you that if you click
―OK‖ on the error message that the difference will be posted to the ―Beginning Balance Equity‖
to keep your books in balance. This will allow you to enter and post transactions, but the amount
will appear on General Ledger Reports and on the Balance Sheet until it is allocated to another
account.
A better idea would be to click the ―Cancel‖ button on the error message to return to the ―Chart
of Accounts Beginning Balances‖ window. Then correct the accounting discrepancy. When the
―Trial Balance‖ is zero, you can then click ―OK‖ to continue.
4.2.1. ADDING OPENING BALANCES TO ACCOUNTS

IN THE CHART OF ACCOUNTS:
2. If using a version of Peachtree prior to 2008, click the gray arrow button for ―Beginning
Balances:‖ to bring up the ―Select Period‖ window. If using Peachtree 2008 or later, click
the ―Account Beginning Balances‖ button, instead, to open the same ―Select Period‖
window.
3. Select the period for which you would like to enter in the beginning balances This is
usually the previous period from the period in which the first transactions will be entered.
Then click the ―OK‖ button.
4. Enter any beginning balances for the accounts that had balances at the end of that period

into either the ―Assets, Expenses‖ column, or the ―Liabilities, Equity, Income‖ column.
5. If the ―Trial Balance‖ shown at the bottom is not zero, then your books are out-of-balance.
If you click ―OK‖ in the upper right corner, you will get an error message telling you this.
Although not recommended, if you click ―OK‖ on the error message Peachtree will making
an adjustment to the ―Opening Balance Equity‖ account to keep your books in balance.
Instead, click ―Cancel‖ to the error message and scroll through the values you just entered,
looking for the error which you can then fix.
6. Click ―OK‖ when your ―Trial Balance‖ is zero.
4.3. Recording General Journal Entries

In this chapter you are learning to journalize and post. You have already put this to practice in
Peachtree and Peachtree in Chapters 1 and 2.
Recording entries into the General Journal module of either program is journalizing. Both
programs automatically post to the General Ledger when you select save in the General Journal
module.
Even though both programs do not let you save until your transaction is in balance you should
always prepare a Trial Balance to review that you have journalized and posted to the correct
accounts. Remember the Trial Balance only tells you if your debits and credits equal.
You can post transactions to the General Journal to record transactions that are not recorded by
other journals. You can also use it to enter and edit account reconciliation adjustments. You enter
both debits and credits in the ―General Journal Entry‖ window to post a balanced transaction.
You must perform ―double-entry‖ and ensure that the credit and debit amounts are equal for the
entire entry before you can post the transaction. This then affects the account balances in the
General Ledger. To view the ―General Journal Entry Window," select ―Tasks| General Journal
Entry…‖ from the Menu Bar.
In the ―General Journal Entry‖ window, you enter the ―Date‖ of the adjustment, assign it a
―Reference‖ code which uniquely identifies the transaction on reports, enter the ―Account No.‖
used for each line of the transaction (and you can enter either the debit or the credit first), and
then enter a line ―Description.‖ Once the transaction is in balance, you can click the ―Save‖
button to save the transaction.

In addition to the standard buttons that are located at the top of the window which you can use to
―Open‖ old journal entries, ―Save‖ entries and so forth; you also have the ―Previous‖ and ―Next‖
buttons at the upper right corner of this (and several other) screen(s) beginning in Peachtree
2004- which you can click to cycle through the previous and next record entries.
4.3.1. ADDING GENERAL JOURNAL ENTRIES:
1. Select ―Tasks| General Journal Entry…‖ from the Menu Bar.
2. Fill-in the ―Date:‖ and the ―Reference‖ code, and then enter in the debits and credits for the
transaction entry into separate lines of the journal by typing in the ―Account No.,"
Description, and the ―Debit‖ or ―Credit‖ amount.
3. Make sure your transactions balance or it will not post.
4. Click the ―Save‖ button on the window‘s toolbar to post the transaction.
4.4. Print/View the Chart of Accounts and the Beginning

Trial Balance

Chapter 5- Create and Modify Vendor Records
Chapter 5: Create and Modify Vendor Records

Before entering new vendors into your company file, you should ensure that you have the
―Vendor Defaults‖ set as desired to prevent having to enter repetitive data values into each new
vendor record. You can access this information by selecting ―Maintain| Default Information|
Vendors…‖ from the Menu Bar.
The ―Vendor Defaults‖ window is where you store information that is common to most of your
vendors and purchase transactions. These are the default settings applied to each new vendor
record created. Therefore, you will want to set these to the most common settings given to new
vendors. You can always override your default settings on a per-vendor basis when you create
the actual vendor records, if necessary.
In the ―Vendor Defaults‖ window, you can click the ―Payment Terms‖ tab to setup the standard
terms for payment applied to the majority of invoices that you receive from your vendors. Here
is where you also set the default General Ledger purchase account number, discount purchase
account number, any discount allowances, and set a standard credit limit to use by default for all
vendors. Specifying these terms allows you to set what are then referred to as the ―Standard
Terms‖ given to you by your vendors.
On the ―Account Aging‖ tab, you set the default aging settings used for the bills received from
your vendors. You select whether your purchase invoices should be aged by invoice date or due
date, by default, and also set the brackets used for aging payables.
You can set up to five additional fields for maintaining custom information on your vendors on
the ―Custom Fields‖ tab. You define what data to record here, and then ―fill-in‖ the desired

values for each new vendor record when you create it.
On the ―1099 Settings‖ tab, you define the way that Peachtree reports and tracks payments made
to 1099 vendors. For any accounts used for vendor 1099 payments, you can specify which
calculation setting to use from the drop-down available.
1. Select ―Maintain| Default Information| Vendors…‖ from the Menu Bar.
2. Click the ―Payment Terms‖ tab and set the ―Standard Terms‖ that you tend to receive
from the majority of your vendors by default in the topmost section of this tab.
3. In the ―GL Link Accounts‖ section, enter in the general ledger account that you use by
default when you make purchases and the general ledger account that you use for
discounts taken on vendor invoices.
4. Click the ―Account Aging‖ tab.
5. In the ―Age Invoices by:‖ section, select either by ―Invoice Date‖ or by ―Due Date‖ to set
how your payables age by default.
6. In the ―Aging Categories‖ section, create the aging brackets to use for your aged payables
and also the column headings you want to appear for each in the ―Aged Payables‖ report.
7. Click the ―Custom Fields‖ tab.
8. Enter up to five custom fields you want to use to track data for your vendors by typing
names for the custom fields into the ―Field Labels‖ boxes. Then click the ―Enabled‖
checkbox to enable these fields in the vendor records, where you specify the individual
settings for each vendor.
9. Click the ―1099 Settings‖ tab.
10. For contactor payments made, select the choice you would like for each listed general
ledger account used in the ―1099 Settings‖ column.
11. Click ―OK‖ when your vendor defaults are set.
5.1. Entering Purchase Orders

5.1.1. Setting Up the Accounts Payable Defaults:
Setting your defaults for your vendors allows you to monitors the goods and services that you‘ve

received from your vendors and the money you‘ve paid to your vendors. You can set payment
terms, aging, guidelines, and more for each vendor. When you post to the Accounts Payable, it
updates the journal and posts it to the General Ledger. The first part of setting the defaults for the
Accounts Payables was done when the Vendor Defaults were set up- since that is done, we can
now look at adding vendors.
5.1.2. Adding New Vendors:

1. Select ―Maintain| Vendors…‖ from the Menu Bar to launch the ―Maintain Vendors‖
window.
2. If needed, click the ―New‖ button in the toolbar at the top of the window.
3. Type a new vendor id code into the ―Vendor ID:‖ field, and press ―Enter‖ on your
keyboard.
4. Click into the ―Name:‖ field and type a name for this new vendor.
5. Click the ―General‖ tab, if needed.
6. In the ―General‖ tab, enter the contact name into the ―Contact:‖ field.
7. You can enter an account number assigned to this vendor into the ―Account Number:‖ box,
if needed.
8. Enter the primary mailing address into the ―Mailing Address‖ fields available.
9. Fill in the ―City, ST, Zip:‖ and ―Country:‖ fields for the mailing address.
10. To copy the mailing address information that you have just entered into the ―Remit to
Address 1‖ fields that appear on the ―Addresses‖ tab, simply click the ―Copy to Remit To
Address 1‖ button in the ―General‖ tab.
11. You can enter a vendor type into the ―Vendor Type:‖ field.
12. If necessary, select the ―1099 Type:‖ from the drop-down list of choices.
13. Enter the default ―Expense Acct:‖ number for the vendor, which is the General Ledger
account you‘ll use most often for transactions with this vendor.
14. Type the main phone number in the ―Telephone 1:‖ field, and the secondary number in the

―Telephone 2:‖ field.
15. Type the fax number into the ―Fax:‖ field.
16. Type the email address for the vendor into the ―E-mail:‖ field.
17. Type the web site address for the vendor into the ―Web Site:‖ text box, if desired.
18. In the ―Customizable Fields‖ section, enter data into the custom fields that you defined
when you set up the ―Vendor Defaults‖ for the company file.
19. Click the ―Addresses‖ tab.
20. If desired, you can copy the information from the vendor‟s mailing address into any
selected ―Remit To‖ address on this tab. To do this, use the ―Copy Mailing Address to‖
drop-down to select the desired ―Remit To‖ address to copy the data into. Then click the
adjacent ―Copy‖ button to actually copy it.
21. You can also click into the fields shown next to any ―Remit To‖ address row, and then
manually enter the new address information.
22. In the ―Address Defaults‖ section, you can use the drop-downs to select a default ―Remit
To‖ address for your vendor ―Payments,‖ ―Purchase Orders,‖ and ―Shipments,‖ if desired.
23. Click the ―History‖ tab.
24. If the vendor has historical transactions not recorded in Peachtree, you can enter them here.
Peachtree will update this tab automatically.
25. Click the ―Purchase Info‖ tab.
26. If needed, you can enter the name of the default purchasing rep to assign to this vendor
from the ―Purchase Rep:‖ drop-down.
27. If needed, you can enter the vendor‘s tax id number into the ―Tax ID Number:‖ field.
28. Select the vendor‘s default method of shipping from the ―Ship Via:‖ field.
29. In the ―Form Options‖ section, you can indicate whether to batch e-mail or print this
vendor‘s forms.
32. If you need to override your accounts payable defaults for this specific vendor, use the
―Terms and Credit‖ drop-down to select the ―Customize terms for this vendor‖ option. You
will then be able to set the specific default terms for this vendor‟s bills by changing the
options that will then appear.
33. Click the ―Save‖ button at the top of this window to save the vendor information, but leave
the same record displayed. You can click the ―Save & New‖ button to save the record and
then start a new record.
When you add new vendors, they will have their default information set to match the settings
specified by your ―Vendor Defaults.‖ You can change this information, if necessary. Then all
you will have to enter is information that is unique to each vendor. You add new vendors through
the ―Maintain Vendors‖ window in Peachtree. You can access this window by selecting
―Maintain| Vendors…‖ from the Menu Bar.
The top of the ―Maintain Vendors‖ window has two text fields and one checkbox. The first text
field is the ―Vendor ID,‖ which is the code that you enter to uniquely identify your vendors.
There is also the ―Name‖ of the vendor. This is the name that you want to show on reports and
bills received from the vendor. The checkbox, called ―Inactive,‖ is the box that you check to
make a vendor inactive.
On the ―General‖ tab, you input the vendor‘s contact and primary mailing address information
into the fields provided. In Peachtree 2006:2007, you can select an address from the address
drop-down and then click the ―Copy to Remit to Address 1‖ button or the ―Copy from Mail to
Address‖ button to save yourself some data entry work. Also in Peachtree 2006:2007, you can
click the ―Defaults‖ button to set the default addresses to be used for payments, purchase orders,
and shipments by selecting the desired addresses from their respective drop-downs in the
―Address Defaults‖ window. When you are finished, click the ―OK‖ button to return to the
―Maintain Vendors‖ window.
In Peachtree 2008:2012, that information is now found in the new ―Addresses‖ tab. This new tab,
like the one found in the ―Maintain Customers‖ window, is also used to copy the vendor‘s
mailing address to any one of the selected ―Remit to:‖ address lines shown. You can do this by
selecting the desired ―Remit to‖ address from the ―Copy Mailing Address to:‖ drop-down, and
then clicking the adjacent ―Copy‖ button. You can also manually add or edit the information
recorded for the different ―Remit to‖ addresses listed at the bottom of the ―Addresses‖ tab.

Back on the ―General‖ tab in the ―Maintain Vendors‖ window, you can enter a ―Vendor Type,‖
which can be used to filter vendors for reporting purposes. You can set the ―1099 Type:‖ for
vendors that need a 1099, such as sub-contractors. In Peachtree 2008:2012, the ―Expense
Account‖ field shown is the default general ledger account used for transactions with this
vendor. You can change this on a per-transaction level, as needed. You then enter any additional
contact information for the vendor into the boxes provided.
In Peachtree 2003:2007, you can click the gray arrow for ―Beginning Balances‖ on the
―General‖ tab to enter beginning balances for this vendor, if needed. You do this if you had one
or more outstanding bills from this vendor which you owed as of the ―start date‖ of the Peachtree
company file. In Peachtree 2008:2012, you can access the ―Beginning Balances‖ window for
your vendors by clicking the ―Vendor Beginning Balances‖ button that appears at the bottom of
the ―History‖ tab. In this window, you can enter the dates and amounts of bills that you received,
but have not yet paid to your vendors as of the date that you started your Peachtree company file.
Just click the ―Save‖ button to finish recording these bills when you are done.
In Peachtree 2008:2012, you then enter the data that you wish to record for this specific vendor
into the ―Customizable Fields‖ section. These fields are the ones that you created for your
vendors when you set your ―Vendor Defaults.‖
The ―History‖ tab tracks and shows your purchases, payments, and last payment information for
the selected vendor. This is updated every time you enter a transaction for a vendor. You can
enter historical information when creating a new vendor. After that Peachtree will track and
show information about your recent transactions with this vendor on this tab.
On the ―Purchase Info‖ tab (―Purchase Defaults‖ tab in Peachtree 2003:2007), you enter
purchase information about the vendor. If using Peachtree 2003:2007, you use this tab to assign
the general ledger account used by default when making purchases from this vendor from the
―Expense Account‖ (―Purchase Account‖ in Peachtree 2003:2006) drop-down.
In all versions of Peachtree you also assign the vendor‘s tax id number (if you have to send
out 1099‟s), your preferred method of shipping from them, and your terms with the
vendor. The ―Tax ID Number:‖ field is used for vendors that have a tax number you must input
if you plan on sending them a 1099-MISC or 1099-INT form. The ―Ship Via‖ field is used to
select the default shipping method used by this vendor to send you products. This is a field that

you can always change at the time of purchase, as well.
In Peachtree 2008:2012, you can then set specific terms with this vendor, if they differ from your
vendor defaults, by selecting the ―Customize terms for this vendor‖ choice from the ―Terms and
Credit‖ drop-down. You can then set your specific terms from this vendor into the area below the
drop-down.
In Peachtree 2003:2007, you can set specific terms with this vendor, if they differ from your
vendor defaults, by clicking the gray arrow button to change the terms via the ―Terms‖ dialog
box. Starting in Peachtree 2004, you can also select how the vendor prefers forms sent to them.
You can select either ―Paper Form,‖ or ―Email.‖ When you print items such as ―Purchase
Orders‖ from the ―Select a Report‖ window, this choice determines whether the form will be
displayed for printing or automatically e-mailed.
In Peachtree 2003:2007, the ―Custom Fields‖ tab contains the custom fields set up through the
―Vendor Defaults‖ window. You can then enter the specific information for the vendor record on
that tab.
5.1.3. Adding Beginning Balances for Vendors:

1. Select ―Maintain| Vendors…‖ from the Menu Bar.
2. If using Peachtree 2008:2012, click the ―History‖ tab and then click the ―Vendor Beginning
Balances‖ button on that tab. If using Peachtree 2003:2007, click the ―General‖ tab and
then click the gray arrow button next to ―Beginning Balances:‖ on this tab.
3. In the ―Vendor Beginning Balances‖ window, double-click on the vendor name in the
―Vendor Balances:‖ tab for which you want to enter the outstanding bills as of your
Peachtree company file‘s ―start date.‖
4. This will take you to the ―Purchases From: (vendor name)‖ tab.
5. Here you will type in the ―Invoice Number:‖ of the first outstanding invoice for the selected
vendor.
6. Then enter the date of the invoice in the ―Date:‖ field.
7. Enter the purchase order number for the invoice in the ―Purchase Order Number:‖ field, if
necessary.

8. Type the amount of the invoice in the ―Amount:‖ field.
9. Enter the ―A/P Account:‖ number in this field to enter the account that this invoice‟s value
is tracked in. This will not be available for ―Cash‖ basis accounting companies.
10. Repeat steps 6 through 10 for all the remaining invoices for this vendor.
11. Click ―Save‖ to save the information.
The ―Beginning Balances‖ are the vendor bills that were outstanding as of the ―start date‖ that
you entered for the company file when it was created. The balance of the Accounts Payable
account in the general ledger should equal the total amount of all vendor beginning balances- as
long as no other transactions have been made. To access the vendor‘s beginning balances in
Peachtree 2008:2012, you click the ―History‖ tab for the selected vendor within the ―Maintain
Vendors‖ window and then click the ―Vendor Beginning Balances‖ button to bring up the
―Vendor Beginning Balances‖ window. To access the vendor‘s beginning balances if using
Peachtree 2003:2007, you click the ―General‖ tab for the selected vendor within the
―Maintain Vendors‖ window and then click the gray arrow for ―Beginning Balances:‖ to bring
up the ―Vendor Beginning Balances‖ window.
On the ―Vendor Balances‖ tab, you will find your list of vendors. To adjust the balance of a
vendor, just double-click on their name in this list. This will take you to the ―Purchases from:
(vendor name)‖ tab to the left of the ―Vendor Balances‖ tab. On this tab, you enter information
for each bill from the selected vendor which was unpaid as of the ―start date‖ for the company.
You input the bill number, the date of the bill, the purchase order number you gave them (if
applicable), the amount of the bill, and the ―A/P Account‖ to which the bill‘s amount was posted.
This field will not be available if you are using ―Cash‖ accounting. At the bottom of this window
you can see the ―Account Balance,‖ the ―Number of Transactions,‖ and the ―Current Accounts
Payable Balance.‖
5.1.4. The Purchase Orders Window:

CREATING A PURCHASE ORDER:
1. Select ―Tasks| Purchase Orders…‖ from the Menu Bar.
2. Select the vendor id for the purchase from in the ―Vendor ID:‖ field.

3. Enter the purchase order number for this purchase in the ―PO #:‖ field.
4. Enter the date that the order was created in the ―Date:‖ field.
5. The ―Good thru:‖ date is automatically set for one month past the ―Date:,‖ but you can
change that if you want.
6. The ―Ship To:‖ address is the address to which you want the product shipped. It is your
address by default, but you can select a different address or a drop shipment by clicking the
gray arrow next to the ―Ship To:‖ label and entering in a different address. Click ―OK‖ if
you do to return to the ―Purchase Order‖ window.
7. Enter the shipping method in the ―Ship Via:‖ field.
8. The ―Discount Amount:‖ will display according to the vendor‟s terms with you, but
you can enter a different amount if needed.
9. Enter the Accounts Payable account that this purchase order will credit when it is filled into
the ―A/P Account:‖ field.
10. Enter the number of the first type of item that you want to purchase under the ―Quantity:‖
column.
11. Enter the Item ID of the goods that you want to purchase into the ―Item:‖ field, if it is set up
in inventory.
12. The ―Description‖ field shows the description of the item. You can change this description,
if necessary.
13. The ―GL Account‖ field shows the General Ledger account set up for the item. You can
change this account, if necessary.
14. The ―Amount‖ field shows the value of the Quantity times the Unit Price. You can
manually enter in an amount for items not tracked in inventory. You can change this
amount, if necessary.
15. Repeat steps 10 through 14 for all of the other items that you want to purchase from this
vendor on this purchase order.
16. Click the ―Save‖ button at the top of the window to save the purchase order.

The ―Purchase Orders‖ window is shown below. Use this form to order inventory items from
vendors. You can then receive the items as they are shipped in the ―Purchases/Receive
Inventory‖ window. Purchase orders can be edited by adding or removing line items and do not
actually affect the amount in the ―accounts payable‖ account until you receive the items ordered.
You open this window by selecting ―Tasks| Purchase Orders…‖ from the Menu Bar.
Select the ―Vendor ID‖ of the vendor for whom you are creating the purchase order from the
drop- down of the same name. If you create purchase orders in an external application, enter the
purchase order number into the ―PO No.‖ box. If you plan on printing the purchase order in
Peachtree, then leave this field blank, as it will be assigned during the print routine. Enter the
―Date:‖ the purchase order was created and set the ―Good Thru:‖ date, too. Your address
information should appear in the ―Ship To:‖ field. If your billing address is different from your
shipping address, you can enter the shipping address here. You may also notice a small check
box for ―Close Purchase Order.‖ Note that you can check this box to manually close a purchase
order you created if you later learn that you won‘t be receiving all of the items ordered.
It will automatically check itself when all items from a purchase order are received.
Below that are the ―Customer SO Number,‖ ―Customer Invoice No.,‖ ―Discount Amount,‖
―Terms,‖ ―Ship Via,‖ and ―A/P Account‖ fields. After you have checked and changed that
information if needed, enter the goods and/or service you want to purchase into the line item
area. Starting in Peachtree 2005, if you are entering a PO for a vendor marked as a ―preferred
vendor‖ for a particular item you can use the ―Auto Fill‖ button to automatically add line items
to the displayed purchase order for any low-stock items that you routinely order from the
currently selected vendor. The ―Received‖ field indicates how many were shipped on previous

bills. The ―Item‖ field shows the Item ID of the items, if used. The ―Description‖ shows the
description of the selected item. The ―GL Account‖ field shows the items inventory account.
When ordering items not in inventory, it will default to the vendor‘s purchase account. This can
be changed, if needed. You also need to enter the ―Unit Price‖ and ―Amount.‖ Starting in
Peachtree 2005, you can view the current ―Vendor Balance‖ in the lower left corner. Clicking the
right-pointing arrow here will show you to a report on the selected vendor.
5.1.5. Creating and Entering a Drop Shipment:

1. Select ―Tasks| Sales/Invoicing…‖ from the Menu Bar.
2. In the ―Sales/Invoicing‖ window, click the ―Drop Ship‖ checkbox.
3. Complete the invoice.
4. Save the invoice and make note of the sales invoice number.
6. In the ―Purchase Order‖ window, click the ―Drop Ship‖ checkbox.
7. Select the customer to receive the drop shipment from the ―Customer ID:‖ drop-down
which appears at the top of the window.
8. If you have already invoiced the customer, type the invoice number in the ―Customer
Invoice No.‖ field.
9. Select the appropriate shipping address for the customer.
10. Complete the purchase order screen.
11. Save the purchase order.
In a drop shipment, your vendor ships the items directly to your customer. You still ―receive‖ the
bill, but simply indicate that this is a drop-shipment. Starting in Peachtree 2004, you can click
the ―Drop Ship‖ checkbox in the upper right corner of the purchase order. Note that doing that
makes the ―Customer ID:‖ field appears at the top of the purchase order form. Use it to select to
which customer you want to ship the items ordered. Their address will then appear in the ―Ship
To:‖ area. You can then enter the customer invoice number into the ―Customer Invoice No.‖
field within the purchase order.

5.1.6. Select for Purchase Orders:

1. Select ―Tasks| Select for Purchase Orders…‖ from the Menu Bar to launch the ―Select For
Purchase Orders – Filter Selection‖ window.
2. In the ―Select items with‖ section, you can choose to filter by either ―Item ID:,‖ ―Item
Type:,‖ or ―Item Class.‖ For the ―Item ID:‖ and ―Item Type:‖ options, you can select either
―All‖ or ―Select.‖ If you choose ―Select‖ for the ―Item ID:,‖ then use the drop-down to
select which items to order. If you select the ―Select‖ option for the ―Item Type,‖ then
select the first and last range of item types for which to filter. You can check whichever
checkboxes you need to in order to filter by ―Item Class:‖ in this section.
3. In the ―And items with‖ section, you can further refine and restrict the items ordered by
choosing either ―All‖ or ―Select‖ for the ―Vendor ID:‖ or the ―Buyer ID:‖ options. If you
choose ―Select,‖ then you must use the drop-downs to the right to select which vendors or
buyers you wish to choose as the filtering criteria. In the list drop-downs within this
window you may hold down the ―Ctrl‖ key on your keyboard and then click on each entry
in the drop-down list which you would like to select to choose non-adjacent options.
4. In the ―Display a list of items‖ section, choose the option buttons you wish to enforce as
filtering criteria under the ―Based on:,‖ ―And stock status:,‖ and ―And set order quantity
to:‖ sections. If you choose to filter by either the ―Quantity Available‖ or the ―Quantity On
Hand‖ under the ―Based on:‖ section, then specify the date by which you want to measure
the quantity selected from the ―As of:‖ calendar drop- down.
5. Once you have set the filtering options to select the items you would like to order, click
―OK‖ to launch the ―Select For Purchase Orders‖ window.
6. In this window, you can uncheck any individual items that you do not wish to order.
7. You can also click on any white field (like ―Order Qty,‖ for example) to edit the value
contained within it, if needed.
8. Once the desired items are selected, click the ―Print‖ button to print the individual purchase
orders for the items from the selected vendors.
Starting in Peachtree Complete and Premium Accounting 2005 is the ―Select for Purchase

Orders‖ feature. While the ―Purchase Orders‖ task is geared to creating orders from vendors one
at a time, the ―Select for Purchase Orders‖ feature allows you to order inventory from multiple
vendors at the same time.
To open this screen chooses ―Tasks| Select for Purchase Orders…‖ from the Menu Bar. First, on
the ―Select for Purchase Orders – Filter Selection‖ window, enter the desired criteria by which
you want to filter the items to be purchased. If you want to pick only certain selected items to
order, you can filter more precisely within this selection window than you can within many of
the other windows in Peachtree. You can choose the ―Select‖ option for any of the drop-downs
and then choose only certain selections from the drop- down by holding down the ―Ctrl‖ key on
your keyboard while clicking on only the entries you wish to select in the drop-down list. When
you have selected the items to purchase, click ―OK‖ to open the ―Select for Purchase Orders‖
window.
In case the filter you specified includes items you don't really want to order now, the ―Select for
Purchase Orders‖ window lets you choose the exact items you want to turn into purchase orders.
You can check or uncheck the specific items you wish to order displayed in this window. You
can also click into any of the values shown in the white columns, such as ―Order Qty‖ or ―Unit
Price‖ to change those settings, as needed. When you are ready, you can then print or preview
the purchase orders which will be created from your selections by clicking either the ―Print‖
button or the ―Preview‖ button (available from the drop-down menu of choices on the ―Print‖
button) to view the selected purchase orders.
5.2. The Purchases/Receive Inventory Window:
USING THE PURCHASES/RECEIVE INVENTORY WINDOW:

1. Select ―Tasks| Purchases/Receive Inventory…‖ from the Menu Bar.
2. Enter the vendor id for the transaction into the ―Vendor ID:‖ field.
3. Enter the invoice number from the vendor‘s invoice into the ―Invoice No.‖ field.
4. Enter the date on the vendor‘s invoice into the ―Date:‖ field.
5. If you are waiting on a bill from this vendor, click the ―Waiting on Bill‖ checkbox.
6. Enter the Accounts Payable account that this purchase will credit in the ―A/P Account:‖
field.
7. If you select a vendor with no open purchase orders, you will see the ―Apply to Purchases‖
tab appear. You will fill in the information that follows next on this tab. If not, you can skip
down to step 14.
8. Enter the number of the first type of item that you purchased into the ―Quantity:‖ field in
the first row.
9. Enter the Item ID of the item that you purchased, if it is set up in your inventory, in the
―Item:‖ column in the first row.
10. The description of the selected item will appear in the ―Description:‖ field if it is in your
inventory. If not, you can enter a description here.
11. If the item is in your item list, then the general ledger account set up for the selected item
will display in the ―GL Account:‖ field. If not, you can enter a different account, if
necessary.
12. The last purchase cost of the item entered will display in the ―Unit Price:‖ field, if your
item is in your inventory. If it isn‘t correct, you can change it to a different amount.
13. The Quantity times the Unit Price will display in the ―Amount:‖ field if the item is in
your inventory. If it isn‘t, enter the total cost of the item(s) in this field. Now skip to step
20.
14. If you selected a vendor with an open purchase order, you will see the ―Apply to
Purchase Order #:‖ tab appears automatically.
15. Click the drop-down arrow to the right of the label on this tab to select a purchase order

from the vendor to receive against.
16. Enter the quantity of each item that you received in the ―Received:‖ field.
17. The description of the selected item will appear in the ―Description:‖ field. If not, you
can enter a description here.
18. The general ledger account set up for the selected item will display in the ―GL Account:‖
field. If not, you can enter a different account if necessary.
19. The cost of the item entered in the purchase order will display in the ―Unit Price:‖ field.
If it isn‘t correct, you can change it to a different amount.
20. Click the ―Save‖ button when you are done to save the information.
The ―Purchases/Receive Inventory‖ window is used to enter purchases from vendors and also
enter inventory received from purchase orders you have placed. Just as in the ―Sales/Invoicing‖
screen, you have two tabs into which you can input information: the ―Apply to Purchase Order
No.‖ tab and the ―Apply to Purchases‖ tab. To access the ―Purchases/Receive Inventory‖
window, select ―Tasks| Purchases/Receive Inventory…‖ from the Menu Bar.
Select the vendor‘s ID from the ―Vendor ID:‖ field at the top of the form to show open
purchase orders you have entered for the vendor on the ―Apply to Purchase Order No.‖ tab
below. If the vendor has no open purchase orders, then the ―Apply to Purchases‖ tab will come
forward instead.
At the top of this window is the ―Invoice No.:‖ field where you enter in the invoice number for

the vendor‘s bill. This can be left blank if the invoice wasn‘t received with the items. Just make
sure that the ―Waiting on Bill‖ check box is selected, instead. Enter the date of the vendor‘s bill
into the ―Date:‖ text box. You should also see the vendor‘s name and address and your name and
address at the top as well. If this shipment you are receiving is fulfilling a purchase order and
you are using the form to indicate that you received inventory, the account will be assigned on
the purchase order. For all other purchases, it defaults to the last A/P account used on a purchase
transaction.
You select the ―Apply to Purchases‖ tab to enter items purchased that are not associated with a
purchase order. You can also place items that you received, but didn‘t order in the purchase
order, on this tab as well. When a vendor without open purchase orders is selected, this tab
automatically appears. Here you enter the ―Quantity,‖ ―Item,‖ ―Description,‖ ―GL Account,‖
―Unit Price,‖ and ―Amount‖ for the items that you purchased or received in addition to items
shipped from a purchase order.
You would select the ―Apply to Purchase Order No.:‖ tab to receive items against open purchase
orders. This tab will automatically appear when you select vendors that have one or more open
purchase orders. The first thing you do here is select which purchase order to receive against by
using the drop-down after the ―Apply to Purchase Order:‖ label to select a purchase order from
the drop-down list. All open purchase orders for the selected vendor are listed. On this tab you
will see the items that were ordered in the selected purchase order, the number remaining to be
shipped, the number received, the description, the general ledger account, the unit price, and the
line item amount.
At the bottom of this window are fields that affect the balance. The ―Other Payments and
Credits:‖ displays the sum of all payments that have been applied to this invoice. This doesn‘t
include any payments entered in the ―Amount Paid at Purchase Field.‖ The ―Amount Paid at
Purchase‖ field allows you to make a full or partial payment when you receive the items. You
then enter a ―Reference‖ and ―GL Account‖ that you will use to pay the bill. The ―Invoice Total‖
shows the sum of all lines on the purchase invoice, and the ―Net Amount Due‖ shows the
calculated value based on ―Invoice Total‖ minus ―Amount Paid at Purchase.‖
5.3. The Payments to the Vendor Window:

USING THE PAYMENTS WINDOW:
1. Select ―Tasks| Payments…‖ from the Menu Bar.
2. From the drop-down box in the upper right, select either ―Vendor ID:‖ or ―Customer ID:.‖
If you selected a ―Customer ID:‖ for a refund check, skip to step 19.
3. Enter the vendor id of the vendor to pay in the ―Vendor ID:‖ text box.
4. If you plan on printing checks, do not place anything into the ―Check Number:‖ field. If
you already wrote the check, enter the number of the check you used into this field.
5. Enter the date the check was created in the ―Date:‖ field.
6. Enter the cash account from which fund will be withdrawn to pay this vendor in the ―Cash
Account:‖ field.
7. If you selected a vendor with no outstanding invoices, you will see the ―Apply to
Expenses‖ tab appear. If you selected a vendor with outstanding invoices, you can jump to
step 15.
8. If you are making a prepayment on an invoice to come later, click the ―Prepayment‖ check
box.
9. Enter the number of the first type of item that you purchased into the ―Quantity:‖ field in
the first row.
10. Enter the Item ID of the item that you purchased, if it is set up in your inventory, in the
―Item:‖ column in the first row.
11. The description of the selected item will appear in the ―Description:‖ field if it is in your
inventory. If not, you can enter a description here.
12. The General Ledger Account set up for the selected item will display in the ―GL Account:‖
field, if it is in your inventory. If not, you can enter a different account if necessary.
13. The last purchase cost of the item entered will display in the ―Unit Price:‖ field, if your
item is in your inventory. If it isn‘t correct, you can change it to a different amount.
14. The Quantity times the Unit Price will display in the ―Amount:‖ field if the item is in your
inventory. If it isn‘t, enter the total cost of the item(s) in this field. Now skip to step 23.

15. If you selected a vendor with outstanding invoices, the ―Apply to Invoices‖ tab appears.
16. You can enter a description for each invoice in the ―Description:‖ field.
17. If you are making a partial payment, type the partial amount to pay in the ―Amount Paid:‖
field.
18. To pay the invoice, click the ―Pay‖ check box to the right of the invoice that you want to
pay.
19. If you selected a Customer ID in the second step, enter the Customer ID of the customer to
issue the refund to in the ―Customer ID:‖ field.
20. Enter a description for the payment in the ―Description:‖ field.
21. Enter the GL account for the payment in the ―GL Account:‖ field. It will default to
Accounts Receivable.
22. Enter the amount of the payment in the ―Amount:‖ field.
23. To save the information and not print any checks, click the ―Save‖ button, and close the
window.
24. To print checks, click the ―Print‖ button.
The ―Payments‖ window is used to select and pay individual vendors. To access the ―Payments‖
window, you select ―Tasks| Payments…‖ from the Menu Bar. You can use this window to enter
purchases which have been made from vendors that do not have an associated bill or you can use
it to apply payments to vendor bills entered through the ―Purchases/Receive Inventory‖ screen.
When a ―Vendor ID‖ is selected in the ―Payments‖ window, all unpaid bills associated with that
vendor appear on the ―Apply to Invoices‖ tab. For unpaid vendor bills, you can choose to pay the
entire amount of the vendor bill or make a partial payment on any vendor bill. You can also
apply prepayments and credit memos in this window, as well.
First, select either ―Vendor ID‖ or ―Customer ID:‖ from the drop-down field of the same name
and then select the vendor ID of the vendor (or customer) to whom you are issuing the check
from the drop- down list next to it. To enter a payment to a vendor who is not in your vendor list,
leave this field blank and instead type the vendor‘s name into the ―Pay to the Order of:‖ field.
You would only choose a Customer ID to issue a customer refund check. Next, enter the ―Check

Number:‖ used to pay this vendor or vendor bill into the text box of the same name, if the check
has already been issued. Leave it blank if you plan to print the payment checks through
Peachtree, as it will be assigned during the print routine.
Also note the ―Recur‖ button in the toolbar at the top of the window. You can click this button
and set any payments which you make to recur in this and in future time periods by selecting the
frequency with which to automatically have this payment recur in the ―Create Recurring Journal
Entries‖ dialog box. Once you have set the payment frequency, click ―OK‖ to create the future
payments in Peachtree. This can be a handy time saver for bills which you have to pay on a set
schedule with the same amount to the same vendor!
Enter the date that the payment check was created in the ―Date:‖ field. The total cash balance
after you pay the selected invoices or payments will display in the ―Cash Account Balance:‖
field. If it says ―Uncalculated‖ in the ―Cash Account Balance‖ field, click the recalculate ($)
button to the right to display the correct total balance. You can also enter in the general ledger
account from which the check will be written in the ―Cash Account‖ field.
You would then select the ―Apply to Expenses‖ tab to enter payments to vendors that are not
associated with any outstanding invoices or purchases. Use this to enter payments that do not
involve bills and cash purchases. When a vendor without any invoices is selected, this tab
automatically appears. You can check the ―Prepayment‖ box to create a prepayment, which can
then later be applied to one or more invoices for the selected vendor on the ―Apply to Invoices‖
tab. You can also enter the number of items being purchased in the ―Items:‖ field. This should
bring up the ―Description and ―GL Account‖ if the item is in our inventory. If not, you can
change both. You may need to do the same with the ―Unit Price:‖ field if it is incorrect as well. If
you are purchasing an item not tracked in inventory, enter the total price of the item in the
―Amount:‖ field.
You would select the ―Apply to Invoices‖ tab to make payments against open vendor invoices.
This tab will automatically appear when you select vendors with whom you have one or more
outstanding invoices. On this tab you will see the invoice, the date due, and the amount due. You
can enter a description for each invoice in the ―Description‖ field, if desired. If you qualify for a
discount, the amount will display here as well. You cannot take a discount on a partial payment,
however. You can also enter in the ―Amount Paid:‖ to the invoice in this field, or you can check

the checkbox for ―Pay:‖ to pay the selected invoices in full. When all invoices included on a
check are selected, click the ―Print‖ button on the toolbar at the top of this window to print up the
disbursement check, or click ―Save‖ to print the check later.
If you had selected a Customer ID instead of a Vendor ID when you entered this window, the
―Apply to Customer Account‖ tab appears at the bottom instead. You can use this tab to record
customer refunds. Click the ―Save‖ button when you are finished data entry within the
―Payments‖ window.
5.4. Writing Checks/The Select for Payment

Window:
USING THE SELECT FOR PAYMENT WINDOW:
1. Select ―Tasks| Select for Payment| Paper Checks…‖ from the Menu Bar (―Tasks| Select for
Payment…‖ in 2003:2005).
2. Enter the date that should print on the checks in the ―Check Date:‖ field in the ―Select for
Payment- Filter Selection‖ window.
3. If you wish, you can enter a date in the ―Invoices Due Before:‖ to view only invoices due

before the date you enter.
4. If you wish, you can enter a date in the ―or Discounts Lost By:‖ to view only invoices that
lose their discounts before the date you enter.
5. You could also select either the ―All Invoices‖ or ―Only Invoices (blank) days past Due
Date with balances over (blank)‖ to filter invoices by. If you select the second option, be
sure to fill-in the blanks.
6. You could also select either the ―All Vendors‖ or ―From: (blank) To: (blank)‖ to filter
vendor ID‟s by. If you select the second option, be sure to fill-in the blanks.
7. You could also select a type of vendor if you are tracking that information by typing the
―type‖ in the ―Type Mask:‖ field.
8. You could also click the ―Always Take Discounts regardless of due date‖ to calculate
discounts even if the date has passed.
9. Click ―OK‖ when you are ready to continue.
10. If needed, you can change the cash account to pay these invoice with in the ―Cash Acct:‖
field at the top of the ―Select for Payment‖ window that appears.
11. To make partial payments on an invoice, enter the partial amount in the ―Pay Amount:‖
column for the invoice you want to pay a part of.
12. If you do not want to pay an invoice in this window, click the ―Pay‖ check box for the
invoice that you do not want to pay to clear it.
13. To print checks, click the ―Print‖ button.
NOTE: Starting in Peachtree 2006, you can also send payments electronically with the new
Peachtree Bill Pay Service. This service allows you to instantly send payments directly to your
vendors without the need to use paper checks, envelopes or stamps. To set up this feature, or to
access it if it is already set up, select ―Tasks| Select for Payment| Electronic Payments…‖ from
the Menu Bar.

After you have entered purchases through the ―Purchases/Receive Inventory‖ window, you can
select ―Tasks| Select for Payment| Paper Checks…‖ (―Tasks| Select for Payment…‖ in
2003:2006) from the Menu Bar to use the ―Select for Payment‖ window to pay multiple vendor
bills. When you select this option, the ―Select for Payment- Filter Selection‖ window appears
first. You can use this window to select the invoice and vendor filter criteria used to select
invoices to pay.
In the ―Select for Payment- Filter Selection‖ window, you enter the date for the check in the
―Check Date:‖ field. You can then choose to filter for invoices due before a certain date by
typing that date into the ―Invoices Due Before:‖ field, or you could choose to filter for invoices
by entering a discount date into the ―or Discounts Lost By:‖ field.
You can set additional filter criteria in the ―Include Invoices‖ section. You can set it to include
―All Invoices,‖ or ―Only Invoices.‖ If you select ―Only Invoices,‖ you will need to type in the
number of ―days past Due Date with balances over‖ whatever dollar amount you then enter.
You could also filter by vendor and either select ―All Vendors,‖ or vendors that are ―From:‖ a
point in the Vendor list ―To:‖ another point in the vendor list. You would just have to fill in the
vendor IDs in the ―From:‖ and ―To:‖ fields. You could also select only vendors that match a
specific vendor type if you type the vendor type in the ―Type Mask:‖ field.
You can also check the check box for ―Always Take Discounts regardless of due date‖ to always
calculate and take the discount for the invoice even if the due date has passed.

When you are done, click ―OK.‖ This will bring up the ―Select For Payment‖ window, which
shows the bills you have entered that match the selection criteria you have input.
Once you have entered your criteria in the ―Select for Payment – Filter Selection‖ window and
clicked ―OK,‖ the ―Select for Payment‖ window appears. It shows all outstanding invoices,
credit memos, and prepayments that match the filtering criteria. It also automatically selects all
entries for payment. Click the ―Pay‖ checkbox for any that you don’t want to pay, as each bill is
set to be marked as paid by default. You can mark all the entries shown to be paid or unpaid by
clicking the ―Check All‖ or ―Clear All‖ buttons in the toolbar at the top of the window, if that is
easier.
Also, each vendor will be issued a single check no matter how many invoices are being paid.
Once you have selected the invoices to pay, make sure that the information at the top of this
window is correct. When you are ready to print the checks, just click the ―Print‖ button to print
the checks to the selected vendors.
Starting in Peachtree 2006, you can also send payments electronically with the new Peachtree
Bill Pay Service. This service allows you to instantly send payments directly to your vendors
without the need to use paper checks, envelopes or stamps. To set up this feature, or to access it
if it is already set up, select ―Tasks| Select for Payment| Electronic Payments…‖ from the Menu
Bar.
MAKING A VENDOR INACTIVE:

2. Select the ID of the vendor which you would like to make inactive from the ―Vendor ID:‖
field.
3. With the vendor record displayed, click the ―Inactive:‖ check box.
4. Click ―Save‖ on the toolbar at the top of the window to save it.
With this chapter you will begin using ―modules‖ or ―special journals‖. The first will be the
check writing module. When using a module or special journals you will only need to record
half of the transaction. For example, with the check writing module both Peachtree and
Peachtree will automatically reduce cash (credit) you will only need to select the correct account
to debit.
Modules and/or special journals also are more user friendly because they normally appear on the
screen like the actually document. The user simply tabs to or clicks in the appropriate boxes and
types in or selects the correct data.
When using an accounting software package generally the petty cash expenses are not recorded
into the books until the petty cash fund is replenished.
5.5. Account Payable Reports

Chapter 6-Create and Modify Customer Records
Chapter 6 Create and Modify Customer Records

If you selected one of the charts of accounts available from one of the many sample companies
in order to create your company file‘s chart of accounts, then your customer defaults may already
be set for you. If you didn‘t use this method of creating your chart of accounts or if you would
simply like to verify that these are the settings you would like to use, you can verify the default
customer settings in the ―Customer Defaults‖ window by selecting ―Maintain| Default
Information| Customers…‖ from the Menu Bar.
The ―Customer Defaults‖ window is where you set the values which you wish to appear by
default for new customers as you create them in Peachtree. Setting the most frequently assigned
customer options here means that you won‘t typically have to enter as much data as would
otherwise be needed when you create a new customer record in the future.
Setting Up the Accounts Receivable Defaults:
Your Accounts Receivable monitors the amounts of goods and services you‘ve sold to
customers. When you post to Accounts Receivable, it updates the journal and posts it to the
General Ledger. The first part of setting up your company‘s Accounts Receivables was
done when the ―Customer Defaults‖ were created. In the customer defaults, you have set
standard customer terms, invoice aging, and more. Once that is done, you can then turn to adding
customers to your customer list.
4.2- Adding Customers:

When you add new customer records, they have their default information set up to match the
settings in your ―Customer Defaults.‖ You can change this information in the specific record, if
needed. Then you enter the information that is unique to each customer. When you add new
customers, it is through the ―Maintain Customers/Prospects‖ window. You can access this
window by choosing ―Maintain| Customers/Prospects…‖ from the Menu Bar.
The top of the ―Maintain Customers/Prospects‖ window has two text fields and two checkboxes.
The first text field is the ―Customer ID.‖ This is the code that you use to uniquely identify your
customers. There is also the ―Name‖ of the customer. This is the name that you want to show on
reports and invoices.
The two checkboxes are ―Prospect‖ and ―Inactive.‖ ―Prospect‖ is the checkbox that you check if
the customer is a prospective customer. You might check this for a customer for whom you have
created an estimate, but have not yet performed any actual work or invoicing. You cannot
invoice a ―prospect,‖ so be aware of that if you use this feature. They become regular customers
when you clear this box. ―Inactive‖ is the check box that you check to make a customer inactive.
The ―General‖ tab contains basic customer billing and contact information. In Peachtree 2006-
2007, if the billing and primary shipping addresses are the same, you can simply click the ―Copy
to Ship to Address 1‖ button to save yourself the work of entering the same data twice. In
versions of Peachtree prior to Peachtree 2008, you could also select a shipping address number
from the address drop-down and click the ―Copy from Bill to Address‖ button to save yourself
work.
In Peachtree 2008:2010, you click the ―Addresses‖ tab and then use the ―Copy Billing Address
to:‖ drop-down to select which shipping address to copy the billing information into. Then click
the ―Copy‖ button to copy the data. You can also enter multiple shipping addresses into the
shipping address lines provided in the ―Addresses‖ tab, as well.
The ―Addresses‖ tab is replaced by the ―Contacts‖ tab starting in Peachtree 2011, which allows
you to record this same type of information for multiple contacts at a single company. To create
a new contact, click the ―New Contact‖ button. You can then enter the contact information into
the fields that are shown. If you wish to enter a new address for the selected contact, click the
―Edit Addresses‖ button to open the ―Contact Addresses‖ window. Here you can enter the
various addresses used by the company. When you are finished, click the ―OK‖ button. You can

then select an address for the current contact from the ―Addresses:‖ drop-down on the ―Contacts‖
tab. When you have finished editing the contact's information, click the ―Save Contact‖ button to
save the contact‘s information. Also, you can select a contact from the ―Select a contact:‖ drop-
down and click the ―Delete Contact‖ button to delete a contact that you will no longer need. Note
that some contacts are needed by Peachtree and cannot be deleted, such as the primary billing
contact.
Returning to the ―General‖ tab- note that this tab is also where you assign customers their tax
codes using the ―Sales Tax‖ drop-down. You will need to assign one tax code for each ―Ship
To:‖ address you enter. Note that you will investigate creating tax codes in the later chapter on
sales tax. You can type your own custom ―Customer Type‖ into the text box of the same name.
This is then used as a filter for reporting and finance charge purposes. You also enter contact
information such as the phone number, email address, and fax number. If available, enter the
customer‘s web site address into the ―Web Site‖ box.
If using Peachtree 2003:2007, you can also click the gray arrow for ―Beginning Balances‖ to
enter the outstanding invoices and amounts that they owed you as of the company file‘s ―start
date.‖ Starting in Peachtree 2008, you can perform this task by clicking the ―History‖ tab and
then clicking the ―Customer Beginning Balances‖ button.
Back on the ―General‖ tab, notice that once you have created a customer and have invoiced them
for goods or services, you can view the current amount of their receivables balance. To see the
list of invoices which make up the current balance, click the arrow button next to the ―Current
Balance‖ displayed if using Peachtree 2003:2007. If you are using Peachtree 2008 or later, just
click the actual balance amount shown in this tab order to retrieve the same information.
On the ―Sales Info‖ tab (―Sales Defaults‖ in Peachtree 2003:2007), you enter sales information
for the customer record. This tab shows sales reps, shipping methods, pricing levels, and the
General Ledger sales account used by the customer. The ―Sales Rep‖ field is the sales
representative for that customer. The ―GL Sales Account‖ is the default General Ledger income
account which most transactions for this customer will fall under. This, of course, can also be set
on a per-transaction level, if needed. The ―Open
P.O. #‖ field is used for customers that have an open purchase order with your company. The
―Ship Via‖ field is used to select the default shipper used for this customer. This is a field that

you can always change at the time of sale as well. The ―Resale Number‖ field is used to record
the tax id number of customers that purchase items for resale. The ―Pricing Level‖ field is used
to indicate the pricing level for the customer. This can always be changed during invoicing as
well. Starting in Peachtree 2004, you can select how the customer prefers forms sent to them by
choosing either the ―Paper Form‖ or ―Email‖ option buttons in the ―Form Delivery Options‖
section. When you print bulk forms, like ―Statements,‖ from the ―Select a Report‖ window this
choice determines whether the form will be displayed for printing or automatically e-mailed.
In Peachtree 2005:2007 you have the ―Terms and Credit" tab, which lets you set specific terms
for this customer that override the standard terms set in the ―Customer Defaults‖ window. In
Peachtree 2004, these options were found on the ―Sales Default‖ tab. They were changed by
clicking the gray arrow button to set specific terms via the ―Customer Terms‖ dialog box. If the
customer will not be using the ―standard terms,‖ you can uncheck the ―Use Standard Terms and
Credit‖ checkbox. You can then set the specific terms for the customer using the options
available.
Starting in Peachtree 2008, you now set specific terms for the customer that override your
standard terms by clicking the ―Payment & Credit‖ tab, first. Then, in the ―Terms and Credit‖
section, use the drop- down to select the ―Customize terms for this customer‖ choice. You can
then specify the specific terms for this customer only in the section below.
The ―Payment & Credit‖ tab in Peachtree 2008 and later also contains the same options found on
the ―Payment Defaults‖ tab in Peachtree 2003:2007. This tab lets you store payment information
used for customer receipts. If they pay most frequently by credit card, you can fill-in the
―Cardholder‘s Name‖ field with the name on their credit card used for purchases. You can also
type in the ―Address,‖ which will fill-in the ―Billing Address‖ information automatically. You
can also enter in the ―Credit Card Number‖ used for purchases along with the ―Expiration
Date:.‖

In the ―Receipt Settings‖ section you can specify the default payment settings for the selected
customer. If the checkbox for ―Use payment method and cash account from last saved receipt‖
(―Use receipt window settings‖ in Peachtree 2003:2007) is checked, the ―Payment Method‖ and
―Cash Account‖ fields in the ―Receipts‖ windows default to the values of the last saved receipt.
Clear this checkbox to set up a default ―Payment Method‖ and ―Cash Account‖ used for the
customer‘s payments. In Peachtree 2003:2007, the ―Custom Fields‖ tab contains the custom
fields set up in the customer defaults window. You can enter the specific information for the
customer record here. In Peachtree 2008:2012, these fields are located on the ―General‖ tab,
instead. The ―History‖ tab shows you sales, receipts, last invoice, and payment information. This
is updated every time you enter a transaction for a customer. You can enter historical information
when creating a new customer. This information will then be automatically updated by
Peachtree. Note that this information could also not be changed once the record had been saved
in versions of Peachtree prior to 2008.
6.1. Entering Beginning Balances

The customer‘s ―Beginning Balances‖ are the invoices that were outstanding as of the date that
you began using Peachtree. The total balance of the ―Accounts Receivable‖ account in the

General Ledger should equal the total amount of all customer beginning balances- as long as no
other transactions have been made.
To enter customer beginning balances in Peachtree 2008 and later, click the ―History‖ tab and
then click the ―Customer Beginning Balances‖ button to launch the ―Customer Beginning
Balances‖ window.
If you are using Peachtree 2003:2007 to enter customer beginning balances, click the ―General‖
tab and then click the gray ―Beginning Balances:‖ arrow to launch the ―Customer Beginning
Balances‖ window.
On the ―Customer Balances‖ tab, you will view your list of customers already entered. To adjust
the balance of a customer, double-click on their name in this list. This will take you to the
―Invoices for: (customer name)‖ tab to the left of the ―Customer Balances‖ tab. On the ―Invoices
for: (customer name)‖ tab, you enter the information for each outstanding invoice as of the start
date of the company file. You input the invoice number, the invoice date, the purchase order
number (if applicable), the invoice amount, and the ―A/R Account‖ to which the invoice‘s
amount was posted. This field will be unavailable if you are using ―Cash‖ accounting. At the
bottom of this window you can see the ―Account Balance,‖ the ―Number of Transactions,‖ and
the ―Current Accounts Receivable Balance.‖
Click the ―Save‖ button when you have finished entering your customer beginning balances to
return to the ―Maintain Customers/Prospects‖ window.
6.2. Enter Sales Quotes and Sales Order

4.4- Setting Statement and Invoice Defaults:
You should set the defaults used for your customer statements and invoices. You can access this
information by choosing ―Maintain| Default Information| Statement/Invoices…‖ from the Menu
Bar. This will bring up the ―Statement/Invoices Defaults‖ window where you can change these
settings before sending customer invoices and statements. In this window, there are two tabs:
―Statement Print Options‖ and ―Dunning Messages.‖
On the ―Statement Print Options‖ tab, select the options that must be met for a customer to
receive a statement. You can also decide if the company information will print on the statements
and invoices.

On the ―Dunning Messages‖ tab, you can enter dunning messages to print on statements and
invoices. You can enter one dunning message for each category listed. If a customer has multiple
overdue invoices, Peachtree prints the dunning message applicable to the oldest overdue invoice.
4.5- Sales Orders and Invoicing:
Sales Orders are forms used when a customer agrees to buy goods or services that aren‘t shipped
immediately. The ―Sales Orders‖ window allows for partial orders to be shipped and backorders
to be tracked. Using this window, items can be shipped from inventory as they become available.
To bring up this window, select ―Tasks| Quotes/Sales Orders| Sales Orders…‖ from the Menu
Bar.
The ―Sales/Invoicing‖ form, however, is used to enter invoices and/or ship items entered into
sales orders. Unlike the sales orders, invoices actually affect the ―accounts receivable.‖ To view
your customer invoices, select ―Tasks| Sales/Invoicing…‖ from the Menu Bar.
4.6- The Sales Orders Window:
The ―Sales Orders‖ window is used to enter amounts of goods or services that the customer
agrees to buy, but which are not shipped and invoiced immediately. Remember, entering sales
orders does not impact the amounts in the ―accounts receivable‖ general ledger account.
Start by selecting the ―Customer ID‖ of the customer for whom you are creating the sales order.

Then enter the ―SO No.,‖ which is the sales order number assigned to the transaction. You will
also enter the sales order ―Date:‖ and the ―Ship By:‖ date. You will also see the billing address
of the customer appear in the form. If the billing address is different from the shipping address,
you can enter the shipping address here, as well. You may also notice a small check box for
―Close SO.‖ You can check this box to manually close a sales order, if needed. Otherwise, it will
automatically check itself when all items from a sales order are shipped and invoiced. Below
that, the ―Customer PO,‖ ―Ship Via,‖ ―Terms,‖ and ―Sales Rep ID‖ assigned to the customer
record should all appear. You can use the ―A/R Account‖ drop-down, if displayed, to select
which account the sales order will debit when the items are shipped.
Next, fill-in the line item area below with the information about your items sold. The ―Quantity‖
field indicates how many are ordered. The ―Shipped‖ field indicates how many were shipped on
previous invoices. The ―Item‖ field shows the ―Item ID‖ of inventory items, if used. The
―Description‖ shows the associated description for the selected item or you can also type a line
item description, if needed. The ―GL Account‖ field, if displayed, shows the associated income
account affected by the sale of that line item. When ordering items not in inventory, it will be the
customer‘s default ―sales‖ account. It can be changed, if needed.
You also need to check and/or set the ―Unit Price,‖ ―Tax,‖ and ―Amount‖ for each line item. You
also enter the amount freight and set the tax amount. The sales order‘s total will appear as the
―Sales Order Total‖ field. Starting in 2005, the Customer Account information appears in the
lower left corner. This box will show the selected customer‘s balance, credit limit, and credit
status as of the current date.
4.7- The Sales/Invoicing Window:

`The ―Sales/Invoicing‖ window is used to create customer invoices for items which you have
shipped or services you have provided. Remember that invoices do impact the amount in
―accounts receivable.‖
The invoice window is very similar in appearance to the sales order window. But there are two
tabs here which do not appear in the ―Sales Orders‖ window: the ―Apply to Sales Order‖ tab and
the ―Apply to Sales‖ tab. The ―Apply to Sales‖ tab is where you place items and services that
you are selling directly to the customers, without using the ―Sales Orders‖ window. It is similar
to the ―Sales Orders‖ window‘s line- item area. You just enter the items that you are selling and
the amounts. The ―Apply to Sales Order #‖ tab allows you to ship selected items from a chosen
sales order to the customer. Use the drop-down on this tab to select from which sales order you
want to ship items. Those items will then appear in the tab‘s line item area. You simply input
how many of each of the listed items you will be shipping and billing.
At the bottom of the window, you can check the tax code of the customer to make sure that it is
set correctly, and you can change it if it isn‟t. You can also enter in the ―Freight:‖ amount, if
needed. Remember that the amounts that you input into this box are associated with the expense

account that you set for ―freight‖ in the ―Item Defaults‖ window. You can also use ―Freight‖ as a
individual line item within the line item area of the invoice if having only one freight account is
inadequate for your business needs.
Starting in Peachtree 2005 is the ―Customer Account‖ information in the lower left corner. Once
a customer is selected, this area shows their receivable balance, credit limit, and credit status as
of the current date. Clicking the right-pointing arrow in this area will show you a report on the
selected customer.
When you are done creating your invoice, click the ―Save‖ on the toolbar at the top of the
―Sales/Invoicing‖ window to save the transaction.
4.7- The Sales/Invoicing Window (cont.):
There are a few ways in which you can print the invoices which you have entered in the
―Sales/Invoicing‖ window. If you do not intend to print the invoices in Peachtree, but simply
enter them for accounting purposes, then you can type the actual invoice number assigned to the
invoice into the ―Invoice No.:‖ text box in the upper right corner of the sales form and simply
save the form. You will then be able to receive payments against the invoice in the ―Receipts‖
window at a later point in time.
If you do wish to print invoices entered into Peachtree, then you will not enter an invoice
number into the form. Instead, you must first decide if you want to print just one invoice or if
you wish to print a batch of invoices. If you want to print just one invoice at a time, you can
display the invoice which you wish to print in the ―Sales/Invoicing‖ window, and then click the
―Print‖ button in the toolbar at the top of the window. You can then print the selected invoice
using the form you select, and also assign the invoice number while printing the invoice.
However, if you wish to print a batch of invoices, you should first create and save the invoices
without assigning them an invoice number. The procedure then changes, depending upon the
version of Peachtree that you are using. If using Peachtree 2008:2012, then select ―Reports &
Forms| Accounts Receivable…‖ from the Menu Bar to open the ―Select a Report or Form‖
window. Here you will click the ―Forms‖ tab in the upper left corner of the window to display
the forms associated with the ―Accounts Receivable‖ category. Ensure that the ―Invoices and
Packing Slips‖ choice is selected from the ―Form Types‖ scrollable list in the upper left corner of
the window. Then select the desired type of invoice to use from the choices shown in the
―Forms:‖ list below that. You can then click the ―Preview and Print‖ button at the right side of

the window, below the preview of the form displayed, in order to open a separate dialog box
where you can set the criteria that will be used to decide which invoices to print. Note that after
changing any criteria that appear at the left side of this window, you may need to click the
―Refresh List‖ button to refresh the listing of invoices to print- which should appear at the right
side of this window. Once you see the desired batch of invoices to print in this list, you can then
click the ―Print/E-mail‖ button to print them.
If you are using Peachtree 2003:2007 to print a batch of invoices, then choose ―Reports|
Accounts Receivable…‖ from the Menu Bar to launch the ―Select a Report‖ window. Scroll
down through the entries in the ―Report List:‖ until you find the ―Invoices/Pkg. Slips‖ folder.
Click on this folder once to display a listing of the available printed invoice formats. Click on the
name of the invoice form which you would like to print from this list, and then click the ―Print‖
button in the toolbar at the top of the ―Select a Report‖ window to launch a dialog box where you
can set the desired printing options for the invoice. Select the ―Unprinted Invoices‖ option in the
upper left corner of the dialog box and then type the number of the first invoice to be printed into
the ―First Invoice Number:‖ text box. You can also select the final date for which you would like
any unprinted invoices to be printed from the ―Last date for which invoices will print:‖ date
drop-down. Use the available filters in the ―Filter Range:‖ section to apply any additional filters
which you would like to use for printing the invoices. When you are ready, click ―OK‖ to print
the selected batch of invoices.
4.8- The Receipts Window:
The ―Receipts‖ window is used to enter cash sales and deposits without invoices. It is also used
to apply payments to customer invoices. When you select a ―Customer ID‖ in the ―Receipts‖
window, all unpaid invoices for the chosen customer appear. You can enter payments for the
entire amount due, or partial payments. You can also apply credit memos and prepayments to
invoices in this window as well.

To access the ―Receipts‖ window, you select ―Tasks| Receipts…‖ from the Menu Bar. This will
bring up a smaller window the first time you do this which prompts you to select a cash account
to use for these receipts. Select the account you wish to use from the drop-down of cash account
choices, and then click ―OK‖ to view the ―Receipts‖ window.
If you elected to assign the ―Deposit Ticket ID‖ in the ―Receipts‖ window when you set the
―Customer Defaults,‖ then at the top of this screen is the ―Deposit Ticket ID:‖ field. Whatever
code you enter here (which is the date, by default) groups the amount of the receipt with any
other receipts that share the same code when you select deposits in the ―Account Reconciliation‖
screen. If you elected to use the ―Select for Deposit‖ window to assign ―Deposit Ticket ID‖
values, then this field will not be available to you in the ―Receipts‖ window.
Next, select either ―Customer ID‖ or ―Vendor ID:‖ from the drop-down field of the same name
and then select the specific customer ID (or possibly vendor ID) from the drop-down box to the
right of the first drop-down. To enter a receipt for a customer who is not in your customer list,
leave this field blank and instead type the customer‟s name as you would like it to appear on the
receipt into the ―Name:‖ field. One reason you are able to choose a ―Vendor ID‖ in the
―Receipts‖ window is to deposit a vendor refund into your selected cash account.
You can enter a reference code for the transaction into the ―Reference:‖ text box. This is
typically where you will enter the check number used, if the customer is making a payment by
check. You can, however, type any code which you would like into this text box. You enter the
receipt number into the ―Receipt Number:‖ text box, if you will not be printing the form.

Otherwise, leave it blank to assign the receipt number while printing. You can then enter the date
that the payment was received into the ―Date:‖ text box, or assign the date using the calendar
drop-down in that text box, if you prefer. You can then set the method of payment used by the
receipt in the ―Payment Method:‖ drop-down.
Notice that there is also a ―Process Credit Card‖ button. You can click on this button to open up
a window into which you can enter the customer‘s credit card information. You can use this to
process credit cards through Peachtree if you sign up for their credit card processing service.
Starting in Peachtree 2006, you can also select the ―Use credit card swipe‖ checkbox if you are
using a compatible credit card swiping terminal with your point-of-sales equipment. The balance
of the selected cash account will display in the ―Cash Account Balance:‖ field. If it says
―Uncalculated‖ in the ―Cash Account Balance‖ field, click the recalculate button ($) to the right
of that field to display the correct total balance.
At the bottom of the ―Receipts‖ window, you would select the ―Apply to Revenues‖ tab to enter
items purchased that are not associated with any outstanding invoices. When a customer without
open invoices is selected, this tab automatically comes forward over the other tab. Customer
deposits made in advance (prepayments) can be taken on this tab by checking the ―Prepayment‖
check box.
You would select the ―Apply to Invoices‖ tab to receive payments against open customer
invoices. This tab will automatically appear with customers that have one or more open invoices.
On this tab you will see the invoice, the due date, and the amount due. You can enter a
description for each invoice in the ―description‖ field, if desired. If the customer qualifies for a
discount, the amount will display here as well. You can change it, if needed. You also enter in
the ―Amount Paid:‖ on the invoice for partial payments or you can just check the ―Pay:‖
checkbox to take the full amount due.
If you had selected a ―Vendor ID‖ on a receipt, the ―Apply to Vendor Account‖ tab appears. You
can use this to record vendor refund amounts. When you are finished, you can click ―Save‖ to
save the receipt.
4.9- Statements and Finance Charges:
You may want to assess finance charges on accounts with overdue balances. To apply finance
charges, select ―Tasks| Finance Charge…‖ from the Menu Bar. This will bring up the ―Calculate
Finance Charges‖ window to select the customer or range of customers for whom the finance

charges should be calculated. You should also enter the date the finance charges will be applied.
If you only want to charge finance charges to a single customer, select them from the ―Starting
Customer:‖ drop-down box and then click the ―Starting Customer Only‖ button. If you specify
more than a single customer, then click the ―OK‖ button when you are done.
When you click either button, the ―Apply Finance Charges‖ window will appear. Here is where
we can set options for assessing finance charges and also setting up our reporting options. Under
the ―Apply Finance Charges‖ section, click the ―Yes‖ option to apply the finance charges
immediately. To preview a listing of the customers who will receive finance charges without
applying them, click the ―No‖ option.
Under the ―Print Calculation Sheet‖ section, select the ―Yes‖ option to print a ―Finance Charges‖
report listing finance charge amounts and invoice fees used in calculating charges. Select the
―No‖ option if you do not want to print this report. If you want to print the report, then in the
―Report Destination‖ section, select whether the report should be viewed in a preview ―Screen,‖
or sent directly to the ―Printer.‖ Click ―OK‖ when you have set the options that you want.
Next, the ―Finance Charge Report Selection‖ window opens. It presents additional reporting
options. Under the ―Report Style‖ section, select either ―Summary‖ which shows customer
balances, or ―Detail‖ which shows invoices for each customer balance. You can then select the
sorting order under the ―Report Order‖ section for the report. Click ―OK‖ when you are done
here to view the report. If you also chose to apply finance charges, those charges are created as
well. Each one is an invoice. These invoices have a Reference Number with the prefix ―FC‖ and
can be edited or deleted by selecting ―Tasks| Sales/Invoicing…‖ from the Menu Bar.
To print statements in Peachtree 2008 through 2009, select ―Reports & Forms| Accounts
Receivable…‖ from the Menu Bar in order to open the ―Select a Report or Form‖ window. Click
the ―Forms‖ tab, and then select the ―Customer Statements‖ choice from the ―Form Types:‖
scrollable list. Next, select either the ―Statement,‖ ―Statement Continuous‖ or ―Statement
Preprinted‖ statement type. Then click the ―Preview and Print‖ button to preview the selected
statement. Doing this will launch the ―Preview and Print Customer Statements‖ window. The
settings here will coincide with the statement defaults that you set, although you can change
them, if needed. When you are ready print the selected statements, click the ―Print/E-mail‖
button.
When you are ready to run the actual statements in Peachtree 2004:2007, you must select

―Reports| Accounts Receivable…‖ from the Menu Bar. In the ―Select a Report‖ window, select
the ―Accounts Receivable‖ icon in the list to the left. You must then scroll using the list box at
the right of this screen until you reach the ―Customer Statements‖ folder. Click on this folder to
select it. There should be three types of statements that you can run: ―STATEMENT No
Graphic,‖ ―STATEMENT Plain,‖ and ―STATEMENT Preprinted.‖ In Peachtree 2006:2007
these are ―Statement,‖ ―Statement Continuous‖ and ―Statement Preprinted.‖ Select the one that
you wish to print, and click the ―Preview‖ button to preview the statement. Doing this will
launch the ―STATEMENT‖ preview options window. The settings here will coincide with your
statement defaults that you set, although you can change them, if needed. When you are ready to
print, click the ―Print‖ button on the toolbar to print the statements.
4.10- Selecting Deposits:
If you elected to use the ―Select for Deposit‖ window to assign ―Deposit Ticket ID‖ values, then
in the ―Select for Deposit‖ screen you can combine the amounts of the various customer receipts
which you have received into a single deposit amount with a single deposit ticket ID. This can
greatly reduce the stress of reconciling your bank statement with the multiple receipt amounts
individually posted in Peachtree.
To access the ―Select for Deposit‖ screen, select ―Tasks| ―Select for Deposit…‖ from the Menu
Bar. Use the ―Account ID:‖ drop-down to select the cash account within which you want to
group the amounts received from the ―Receipts‖ window. Use the ―Deposit Ticket Date:‖
calendar drop-down to set the date of the deposit. In the ―Deposit Ticket ID:‖ text box enter the
desired deposit ticket ID which you would like to use for the total amount of the deposit when
you are reconciling the selected account in the future. Then just click the ―Deposit‖ checkbox at
the right end of each line item amount which you received to mark it as being a member of the
deposit. The total will display at the bottom of the screen. When you are ready to save the
deposit with the selected ticket ID, click the ―Save‖ button in the toolbar at the top of the
window.
4.11- Changing a Record ID:
You can modify the record IDs that you assigned to various records in Peachtree, such as the
―Customer,‖ ―Vendor,‖ and ―Employee‖ records to change the reference codes assigned to them.
Starting in Peachtree 2004, you can also use this same feature to change the IDs assigned to
general ledger accounts, as well.

To change a record‘s ID assignment, open the ―Maintain‖ window for the selected record type
(like ―Maintain Chart of Accounts‖) and display the record whose ID you wish to change. Then
just click the ―Change ID‖ button to assign the item a new ID code in the window that appears.
Click ―OK‖ after entering the new ID code. Note that if you do this, all transactions associated
with the old code will change to reflect the new code- both old and new transactions.
ADDING A NEW CUSTOMER- 2008:2012:
1. Select ―Maintain| Customers/Prospects…‖ from the Menu Bar to launch the ―Maintain
Customers/Prospects‖ window.
2. If needed, click the ―New‖ button in the toolbar at the top of the window.
3. Type a new customer id code into the ―Customer ID:‖ field, and press ―Enter‖ on your
keyboard.
4. Click into the ―Name:‖ field and type a name for this new customer.
5. If the customer is a prospective customer who hasn‘t yet made purchases, you can click the
―Prospective‖ check box.
6. Click the ―General‖ tab, if needed.
7. In the ―General‖ tab, enter the contact name into the ―Contact:‖ field.
8. You can enter an account number assigned to this customer into the ―Account Number:‖
box, if needed.
9. Enter the billing address in the ―Billing Address‖ fields available.
10. Fill in the ―City, ST, Zip:‖ and ―Country:‖ fields for the billing address.
11. Select a default sales tax code to apply to this customer‘s sales from the ―Sales Tax:‖ drop-
down, if needed.
12. To copy the billing information that you have just entered into the ―Ship Address 1‖ fields
that appear on the ―Contacts‖ tab (―Addresses‖ tab in Peachtree 2008:2010), simply click
the ―Copy to Ship Address 1‖ button in the ―General‖ tab.
13. You can enter a customer type in the ―Customer Type:‖ field.
14. Type the main and secondary phone numbers into the ―Telephone 1:‖ and ―Telephone 2:‖
fields.
15. Type the fax number in the ―Fax:‖ field.
16. Type the email address for the customer into the ―E-mail:‖ field.
17. Type the web site address for the company into the ―Web Site:‖ text box, if desired.

18. In the ―Customizable Fields‖ section, enter data into the custom fields that you defined
when you set up the ―Customer Defaults‖ for the company file.
19. Click the ―Contacts‖ tab (―Addresses‖ tab in Peachtree 2008:2010).
20. Starting in Peachtree 2011, you can create a new contact on the ―Contacts‖ tab, if desired,
by clicking the ―New Contact‖ button at the bottom of the tab. You can then enter the name
and address information for the new contact. Then click the ―Save Contact‖ button when
you are finished. You can also select a contact to delete from the ―Select a contact:‖ drop-
down and then click the ―Delete Contact‖ button to delete the selected contact. Note that
some contacts, such as the billing contact, cannot be deleted.
21. Starting in Peachtree 2011, you can also enter multiple addresses for a selected contact by
clicking the ―Edit Addresses‖ button to open the ―Edit Addresses‖ window. Here you can
enter as many addresses as needed for the selected contact. Then click the ―OK‖ button
when you are finished.
22. If using Peachtree 2008:2010, you can copy the information from the customer‘s billing
address into any selected shipping address on the ―Addresses‖ tab. To do this, use the
―Copy Billing Address to‖ drop- down to select the desired shipping address to copy the
data into. Then click the ―Copy‖ button to copy it. You can also click into the fields shown
next to any shipping address row, and then manually enter the new shipping information.
23. Click the ―History‖ tab.
24. If the customer has historical transactions not recorded in Peachtree, you can enter them
here. Peachtree will update this tab automatically.
25. Click the ―Sales Info‖ tab.
26. If needed, you can enter the name of the default sales rep to assign to this customer from
the ―Sales Rep:‖ drop-down.
27. Select the default general ledger Income account number to associate with sales to this
customer from the ―GL Sales Account:‖ field‘s drop-down.
28. If your customer provides you with an open purchase order number, you can type it into the
―Open P.O. Number:‖ field.
29. Select the customer‘s default method of shipping from the ―Ship Via:‖ field.
30. If needed, you can enter the resale number of this customer into the ―Resale Number:‖
field.

31. If needed, you can select a default pricing level for this customer from the ―Pricing Level:‖
drop-down.
32. In the ―Form Options‖ section, you can indicate whether to batch e-mail or print this
customer‘s forms.
33. Click the ―Payment & Credit‖ tab. Here you can set the default payment and default
customer terms that this customer will receive.
34. For customers who pay regularly by credit card you can enter in the ―Cardholder‟s Name:,‖
―Address:,‖ (which is usually the same as the ―Bill to Address‖ field) ―City, State, Zip:,‖
―Country:,‖ ―Credit Card Number:,‖ and ―Expiration Date:‖ into the fields available in the
―Credit Card Information‖ section.
35. In the ―Receipt Settings‖ section, check the ―Use payment method and cash account from
last saved receipt‖ check box to use the previous settings of the customer‘s last receipt for
their next receipt. If you want to permanently set this information, click this checkbox to
clear it, and then set a default ―Payment Method:‖ and ―Cash Account:‖ to use for this
customer‘s receipts.
36. If you need to override your accounts receivable defaults for this specific customer, use the
―Terms and Credit‖ drop-down to select the ―Customize terms for this customer‖ option.
You will then be able to set the specific default terms for this customer by changing the
options that will then appear.
37. Click the ―Save‖ button at the top of this window to save the customer‟s information, but
leave the same record displayed. You can click the ―Save & New‖ button to save the record
and then start a new record.
MAKING A CUSTOMER INACTIVE:
1. Select ―Maintain| Customers/Prospects…‖ from the Menu Bar to launch the ―Maintain
Customers/Prospects‖ window.
2. Select the name of the customer that you want to make inactive from the ―Customer ID:‖
drop-down box.
3. Check the ―Inactive‖ check box.
4. Click the ―Save‖ button on the toolbar at the top of the window.

ADDING BEGINNING BALANCES FOR CUSTOMERS- 2008:2012:

1. Add all of your prior customers that had outstanding invoices at the time that you created
your Peachtree company file, first.
2. Select ―Maintain| Customers/Prospects…‖ from the Menu Bar, and then click the ―History‖
tab.
3. Click the ―Customer Beginning Balances‖ button to open the ―Customer Beginning
Balances‖ window.
4. Click the ―Customer Balances:‖ tab to view the list of customers in your company file.
5. Double-click on the name of the customer for whom you want to enter opening balances.
6. This will take you to the ―Invoices for (customer name)‖ tab where you will enter all of the
open invoices that you had with this customer as of your Peachtree start date.
7. Click into the ―Invoice Number‖ column, and enter the number of the first open invoice for
the customer.
8. Enter the date of the invoice into the ―Date‖ column in the same row.
9. Enter the purchase order number for the invoice, if used, under the ―Purchase Order
Number‖ column in the same row.
10. Enter the amount of the invoice under the ―Amount:‖ column in the same row.
11. Enter the accounts receivable account number for the invoice in the ―A/R Account‖
column. This field won‟t be available if you are using the ―Cash‖ basis accounting.
12. Repeat steps 9 through 13 for the next invoice, if one exists, on the next row until you are
finished entering opening invoices.
13. Click the ―Save‖ button to save your changes when you are finished.
SETTING DEFAULTS FOR STATEMENTS:
1. Select ―Maintain| Default Information| Statement/ Invoices…‖ from the Menu Bar.
2. Click the ―Statement Print Options‖ tab in the ―Statement/Invoices Defaults‖ window.
3. Set up the default options that you want to set for selecting which customers will receive
statements.
4. Click the ―Dunning Messages‖ tab.
5. Set the number of days overdue that you want to use each dunning message for, and then
enter in the dunning message that you want to display for that range of days overdue.
6. Click ―OK‖ when you have set up the default options that you want.

CREATING A SALES ORDER:

1. Select ―Tasks| Quotes/Sales Orders| Sales Orders…‖ from the Menu Bar.
2. The ―Sales Orders‖ window will appear.
3. Enter the customer id for the customer that placed the sales order in the ―Customer ID:‖
field.
4. Enter in the sales order number (if needed) in the ―SO No.:‖ field.
5. Enter the date that the sales order was created in the ―Date:‖ field.
6. Enter the date to ship the goods by in the ―Ship By:‖ date field.
7. If you want to specify a different shipping address, click the gray arrow button next to
―Ship To:‖ to specify a different shipping address, or to select a drop ship and then click
―OK.‖
8. If applicable, enter in the Purchase Order Number that your customer gave to you in the
―Customer PO‖ field.
9. Select a shipping method by using the drop-down ―Ship Via:‖ field.
10. If applicable, select the ―Sales Rep ID:‖ from the drop-down text box.
11. Enter the quantity of the first item ordered in the top row of the sales order under the
―Quantity‖ column.
12. Enter the item identification code into the ―Item‖ column in the same row.
13. If necessary, you can change the information displayed in the ―Description,‖ ―GL
Account,‖ ―Unit Price,‖ ―Tax Type,‖ and ―Amount‖ fields.
14. Enter the Accounts Receivable account that this sales order will debit when the items are
shipped in the ―A/R Account‖ field, if needed. This account is the last account used on a
sales transaction.
15. Enter in the ―Sales Tax Code‖ for the selected customer, if it is not displayed correctly.
16. Enter in any freight amounts in the ―Freight Amt:‖ field that are applicable to this
transaction.
17. The total of the sales order will appear in the ―SO Total‖ field.
18. Click the ―Save‖ button at the top of this window to save this sales order.
MANUALLY CLOSING A SALES ORDER:
1. Select ―Tasks| Quotes/Sales Orders| Sales Orders…‖ from the Menu Bar.
2. The ―Sales Orders‖ window will appear.

3. Click the ―Open‖ button in the toolbar at the top of the ―Sales Order‖ window.
4. In the ―Select Sales Order‖ dialog box, double-click on the sales order which you want to
open to display it in the ―Sales Orders‖ window.
5. Click the ―Close SO‖ check box to close the displayed sales order.
6. Click the ―Save‖ button to save it.
CREATING AN INVOICE:
1. Select ―Tasks| Sales/Invoicing…‖ form the Menu Bar.
2. Select the ―Customer ID:‖ of the customer for whom you are creating the invoice from the
―Customer ID:‖ drop-down field.
3. If you plan on printing the invoice, leave the ―Invoice #:‖ field blank, as the number will be
assigned when it is printed. If the invoice was created externally from Peachtree, enter in
the invoice number here.
4. Enter the date that the invoice was created into the ―Date:‖ text box.
5. If you want to specify a different shipping address, click the gray arrow button next to
―Ship To:‖ to specify a different shipping address, or to select a drop ship and then click
―OK.‖
6. If needed, enter the purchase order from your customer into the ―Customer PO:‖ text box.
7. Select a shipping method by using the drop-down ―Ship Via:‖ field.
8. Enter the date to ship the goods by into the ―Ship Date‖ field.
9. If applicable, select the ―Sales Rep ID:‖ from the drop-down text box.
10. If you are making a direct sale to a customer, click the ―Apply to Sales Tab,‖ if you are
applying the invoice to a customer with one or more open sales orders, click the ―Apply to
Sales Order #‖ tab and skip to step 19.
11. Enter a quantity for the first item purchased into the first row under the ―Quantity‖ field.
12. Enter the item identification code into the same row under the ―Item‖ column.
Account,‖ ―Unit Price,‖ ―Tax,‖ and ―Amount‖ fields.
14. Enter the Accounts Receivable account that this invoice will debit when the items are
shipped into the ―A/R Account‖ field, if needed. This account is the last account used on a
sales transaction.
15. Enter the ―Sales Tax Code‖ for the selected customer, if it is not displayed correctly.

16. Enter any freight amounts into the ―Freight Amt:‖ field that are applicable to this
transaction.
17. The total of the invoice will appear in the ―Invoice Total‖ field.
18. Click the ―Save‖ button at the top of this window to save this invoice, you are now done.
19. If you selected the ―Apply to Sales Order #‖ tab, then enter the number of the sales order in
the text box at the right of the label ―Apply to Sales Order #,‖ or use the drop-down arrow
to select a sales order from the list.
20. The items from the sales order will appear below.
21. Enter in the number of each item that is being shipped in the ―Shipped‖ column next to the
appropriate item.
Account,‖ ―Unit Price,‖ ―Tax,‖ and ―Amount‖ fields.
24. Enter in any freight amounts in the ―Freight Amt:‖ field that are applicable to this
transaction.
25. The total of the invoice will appear in the ―Invoice Total‖ field.
26. Click the ―Save‖ button at the top of this window to save this invoice.
PRINTING A SINGLE INVOICE:
1. Select ―Tasks| Sales/Invoicing…‖ form the Menu Bar and then display the invoice which
you saved but have not yet printed in the ―Sales/Invoicing‖ window.
2. Click the ―Print‖ button in the toolbar at the top of the window to launch the ―Print Forms:
Invoices‖ window.
3. Enter the invoice number to assign to the displayed invoice into the ―First Invoice
Number:‖ text box. If you have already printed this invoice or if you entered the invoice
number by hand, then this information will appear ―grayed-out‖ and not editable.
4. If needed, you can click the ―Change Form‖ button in this dialog box to open the ―Print
Forms: Invoices/Pkg. Slips‖ dialog box. You can select the name of the invoice to use from
this dialog box, and then click ―OK‖ to return to the ―Print Forms: Invoices‖ dialog box.
5. Enter the number of copies to print into the ―Number of Copies:‖ text box.
6. Click the ―Print‖ button to print the displayed invoice.
PRINTING MULTIPLE INVOICES AS A BATCH- 2008:2012:

1. Select ―Reports & Forms| Forms| Invoices and Packing Slips…‖ from the Menu Bar.
2. Click on the name of the invoice format which you would like to use from the listing shown
in the ―Forms:‖ section in order to select it.
3. Click the ―Preview & Print‖ button at the right side of the window, below the preview of
the invoice.
4. In the ―Preview and Print Invoices and Packing Slips‖ dialog box which appears, click the
―Print/E-mail‖ tab. Then enter the section criteria that you wish to use to print the batch of
invoices.
5. Type the first invoice number to use into the ―Number the first invoice:‖ text box.
6. If needed, you can click the ―Refresh List‖ button to review the listing of invoices to print s
a batch in the listing that appears at the right side of this window.
7. Once the desired invoices appear in this list, and you have reviewed your printing options
for accuracy, just click the ―Print/E-mail‖ button to print the selected invoices.
ENTERING RECEIPTS:
1. Select ―Tasks| Receipts…‖ from the Menu Bar. The ―Receipts‖ window will appear.
2. Leave the ―Deposit Ticket ID:‖ field blank if you plan to use ―Select for Deposit‖ to group
your receipts in Account Reconciliation. If not, enter a ―Deposit Ticket ID:‖ to group this
deposit with other deposits in Account Reconciliation. Receipts with the same ―Deposit
Ticket ID‖ will be grouped as a single deposit amount when reconciling this cash account
in the future.
3. Select whether to enter a receipt for a customer or a vendor by selecting either ―Customer
ID:‖ or ―Vendor ID:‖ from the drop-down underneath the ―Deposit Ticket ID:‖ label. If you
select ―Vendor ID:," you can skip to step 21.
4. Assuming you selected a ―Customer ID:,‖ you should next select the specific ―Customer
ID:‖ of the customer you are creating the receipt for from the drop-down box to the right of
the ―Customer ID:‖ drop- down choice.
5. If the customer is paying by credit card, click the ― Process Credit Card‖ button. If
necessary, enter in the name, card number and expiration date, and click ―OK‖ to return to
the receipt. Starting in Peachtree 2006, you can also select the ―Use credit card swipe‖
checkbox if you are using a compatible credit card swiping terminal with your point-of-
sales equipment.

6. Enter the date the money was received in the ―Date:‖ field.
7. Select the method of payment received from the ―Payment Method:‖ drop-down field.
8. Select the General Ledger cash account to which the receipt will be posted from the ―Cash
Account:‖ field.
9. If the customer you selected has no open invoices, you will be sent to the ―Apply to
Revenue‖ tab. If you are collecting a sale from a customer who isn‘t in your customer list,
then you will also need to fill in the ―Name:‖ field above. If the customer has open
invoices, you will be automatically sent to the ―Apply to Invoices‖ tab. If this is the case,
you can skip down to step 17.
10. If the amount being paid is for a prepayment or down payment, then click the
―Prepayment‖ check box. You can match this prepayment up later with an invoice for the
customer after you have created one.
11. Enter the quantity of the first item ordered in the top row of the sales receipt under the
―Quantity‖ column.
12. Enter the item identification code into the ―Item‖ column in the same row.
Account,‖ ―Unit Price,‖ ―Tax Type,‖ and ―Amount‖ fields.
14. If applicable, select the ―Sales Rep:‖ from the drop-down text box.
16. Click the ―Save‖ button to save the sales receipt. You are now done.
17. If there are open invoices, you will be sent to the ―Apply to Invoices‖ tab automatically.
The open invoices for the selected customer will appear in this tab.
18. If you are entering a partial payment on an invoice, you can enter the amount on the
―Amount Paid:‖ tab.
19. To pay the invoice in full, click the ―Pay‖ checkbox column to the right of the invoice that
is being paid.
20. Click the ―Save‖ button to save your changes. You are now done.
21. If you selected ―Vendor ID:‖ at the top, then you must use the drop-down box to the right
of that to select the vendor id of the vendor that you received a refund from.
22. Enter in a ―Description,‖ and assign the refund to the appropriate ―GL Account.‖ Enter the
amount of the refund in the ―Amount‖ column for that same row.

23. Click the ―Save‖ button to save the refund.

APPLYING FINANCE CHARGES:
1. Select ―Tasks| Finance Charge…‖ from the Menu Bar.
2. The ―Calculate Finance Charges‖ window will appear. Enter a ―Starting Customer‖ and an
―Ending Customer‖ from the window to create statements for multiple customers, or just
enter in a ―Starting Customer‖ if you want to create a single invoice for a single customer.
3. You can also enter in a customer type in the ―Type Mask:‖ field that will filter for just
customers of that specific customer type.
4. Enter the date that the finance charges will be assessed in the ―Date:‖ text box.
5. To send statements to multiple customers between the ―Starting Customer:‖ and the
―Ending Customer:,‖ click the ―OK‖ button. To send a single statement to the customer in
the ―Starting Customer:‖ field, click the ―Starting Customer Only‖ button.
6. The ―Apply Finance Charges Window‖ will appear.
7. Under the ―Apply Finance Charges‖ section, select either ―Yes‖ or ―No.‖
8. Under the ―Print Calculation Sheet‖ section, select either ―Yes‖ or ―No.‖
9. Under the ―Report Destination‖ section, select either ―Printer,‖ ―Screen,‖ or ―Do not print
report.‖
10. Click ―OK.‖
11. If you selected to print a report, the ―Finance Charge Report Selection‖ window appears.
12. Under the ―Report Style‖ section, select the option button for either ―Summary‖ or
―Detail.‖
13. Under the ―Report Order‖ section, select to sort the report either ―By Id‖ or ―By Name.‖
14. Click ―OK‖ when you are done.
15. The finance charges that either were or would be assessed will appear in a report. If you
chose to assess finance charges, they appear as invoices with the prefix ―FC.‖
CREATING STATEMENTS- 2008:2012:
1. Select ―Reports & Forms| Forms| Customer Statements…‖ from the Menu Bar.
2. Choose the type of statement to create by selecting it from the choices shown in the
―Forms:‖ list.
3. Click the ―Preview & Print‖ button at the right side of this window, below the preview of
the statement, to bring up the ―Preview and Print Customer Statements‖ window.

4. On the ―Print/E-mail‖ tab (which should be set according to the Statement/Invoice

defaults), select either ―Balance Forward,‖ or ―Open Item‖ from the ―Statement Type‖
section.
5. If desired, select either checkbox for ―Sales/Credit Memos‖ or ―Receipts‖ under the ―Print
detail for:‖ section.
6. Use the ―Include items:‖ drop-down to select the items to include in the statement selecting
a choice, and then entering any necessary date ranges from the adjacent date selector, if
needed.
7. You can further refine the recipient list, if needed, by setting any additional filtering option
in the ―Filter customers by:‖ section.
8. If needed, click the ―Refresh List‖ button to display the listing of statement recipients at the
right side of this window.
9. To print the selected customer statements, click the ―Print/E-mail‖ button.
SELECTING AMOUNTS TO DEPOSIT:
1. Select ―Tasks| Select for Deposit…‖ from the Menu Bar.
2. Use the ―Account ID:‖ drop-down to select the account to which the receipts were
deposited.
3. Use the ―Deposit Ticket Date‖ calendar drop-down to pick the deposit date.
4. Use the ―Deposit Ticket ID:‖ text box to give the deposited amount an ID code.
5. Click the ―Deposit‖ check box next to any amounts that you want to include in the deposit
ticket.
6. Click ―Save‖ to save the deposit amount.
CHANGING A RECORD ID:
1. Select the ―Maintain‖ window for either the customer, vendor, inventory item, or general
ledger account (if using Peachtree 2004 or later).
2. Use the drop-down at the top of the window to select the item for which you‘d like to
change the record id.
3. Click the ―Change ID‖ button.
4. Type a new ID into the box provided.
5. Click ―Save‖ to save the change.

10.1- Entering Quotes
10.2- Converting Quotes

10.1- Entering Quotes:
When you have a customer request for pricing for a prospective job, you can create a quote. In the
quote, you can enter pricing information about your goods and services for the customer‟s request. Since
they haven‟t agreed to purchase anything yet, they are only provided with a quote. Quotes do not affect
the General Ledger. They also are very useful, as quotes that the customer accepts can easily be
converted into sales orders or sales invoices later.
You can enter a quote for a customer in the ―Quotes‖ window. To access this window, just select
―Tasks| Quotes/Sales Orders| Quotes…‖ from the Menu Bar. This will bring up the ―Quotes‖ window,
where we can make up a quote to send to a customer that requests one.
In the ―Quotes‖ window, you begin by entering the ID of the customer or prospect that will be receiving
the quote using the ―Customer ID:‖ field. You must have the customer in your customer list to create a
quote for them. If you plan on printing the quote, leave the ―Quote #:‖ field blank. If you manually
created a quote, and are simply recording it into Peachtree, then enter the quote number you gave to the
customer in the ―Quote No.‖ field. Enter the date that the quote was created in the ―Date:‖ field. The
―Name:‖ and ―Bill To:‖ fields will display the information for the selected customer. You can change
the ―Ship To:‖ field by clicking the gray arrow next to that field, and selecting a different shipping
address for the customer. You can also specify a drop shipment. The ―Good thru:‖ field will display a

date that is one month away from the ―Date:‖ field‘s value, by default. You can change this, if necessary.
In the ―Customer PO‖ field, enter the customer‘s purchase order number, if applicable. Select the
Shipping method from the ―Ship Via‖ field‘s drop-down of choices. You can also select the Sales Rep
ID from the ―Sales Rep ID‖ field. You can also enter the Accounts Receivable account that the quote will
debit when it is converted into an invoice into the ―A/R Account:‖ field. This field will default to the last
account used in a sales transaction. Change it, if necessary.
Then enter the quantity of the first item ordered in the ―Quantity‖ field. Select the item that they are
ordering from the ―Item‖ field's drop-down of item choices. The description of the selected item will
display in the ―Description‖ field. You can enter in a description for items that you don‘t track through
inventory. The ―GL Account‖ field will display the account set up for the selected item. When ordering
items not in inventory, the customer‘s sales account will display here. You can change this, if
necessary. It is also important to remember that this will not affect the General Ledger until you
convert the quote to a sales order or sales invoice. In the ―Unit Price‖ field, you will see the sales price
of the selected item. If it is an item that you don‟t track as inventory, then you will need to enter in the
price in this field. The ―Tax‖ field will display the tax type of the selected item. If it isn‟t an inventory
item, then you will need to select a tax type in this field. The ―Amount‖ field will display the ―Quantity‖
times the ―Unit Price.‖ If you are entering a non- inventory item, enter the total price of the item order
in this field. If the quote is for a specific job, you can also enter the job in the ―Job‖ field. It will not
actually be applied to the job, however, until the quote is converted into an invoice.
In the ―Sales Tax Code:‖ field, you will see the sales tax code for the selected customer. If you need to
change their sales tax code, select one from the list. Finally, enter in any freight charges applicable to
this transaction into the ―Freight Amt:‖ field.
When you are done, you can ―Print‖ or ―Save‖ the quote using the buttons on the toolbar at the top of
this window.
10.2- Converting Quotes:
After a customer accepts a quote, you can convert it into a sales order or a sales invoice easily. Just
select ―Tasks| Quotes/Sales Orders| Quotes…‖ from the Menu Bar. In the ―Quote‖ window, display the
quote that you want to convert. Then click the ―Convert‖ button in the toolbar of the ―Quotes‖ window.
This will bring up the ―Convert Quote‖ window. Here you have three options for converting a quote
under the ―Convert this Quote to a:‖ section: ―Sale/Invoice,‖ ―Sale/Invoice and Print Now,‖ or ―Sales
Order.‖ If you select the first option, then you can use the ―Invoice #‖ field that appears to enter the
invoice number for this quote if one exists and the invoice doesn‟t need to be printed. If you select the
last option, you will see the ―SO #:‖ field become active. Here you can enter in the sales order number
for this quote if one exists and it doesn‟t need to be printed. Click ―OK‖ when you have selected the
options that you want.
ENTERING QUOTES:
1. Select ―Tasks| Quotes/Sales Orders| Quotes…‖ from the Menu Bar.

2. In the ―Quotes‖ window, you begin by entering the customer id of the customer or prospective
customer that will be receiving the quote in the ―Customer ID:‖ field.
3. Next, if you plan on printing the quote, leave the ―Quote #:‖ field blank. If you created a manual
quote, and you are simply recording it into Peachtree, then enter in the quote number you gave to
the customer in the ―Quote No.‖ field.
4. Enter the date that the quote was created in the ―Date:‖ field.
5. You can change the ―Ship To:‖ field by clicking the gray arrow next to that field, and selecting a

different address for the customer. You can also specify a drop shipment.
6. The ―Good thru:‖ field will display a date that is one month away from the ―Date:‖ field‘s value, by
default. You can change this, if necessary.
7. In the ―Customer PO‖ field, enter the customer‘s purchase order number, if applicable.
8. Select the shipping method from the ―Ship Via‖ field‘s drop-down of choices.
9. You can also select the sales rep id from the ―Sales Rep ID‖ field.
10. Then enter the quantity of the first item ordered in the ―Quantity‖ field. Select the item that they are
ordering from the ―Item‖ field's drop-down of item choices.
11. The description of the selected item will display in the ―Description‖ field. You can enter in a
description for items that you don‘t track through inventory.
12. The ―GL Account‖ field will display the account set up for the selected item. When ordering
items not in inventory, the customer‘s sales account will display here. You can change this, if
necessary.
13. In the ―Unit Price‖ field, you will see the sales price of the selected item. If it is an item that
you don‟t track as inventory, then you will need to enter in the price in this field.
14. The ―Tax‖ field will display the tax type of the selected item. If it isn‟t an inventory item, then
you will need to select a tax type in this field.
15. The ―Amount‖ field will display the ―Quantity‖ times the ―Unit Price.‖ If you are entering a non-
inventory
item, enter the total price of the item order in this field.
16. If the quote is for a specific job, you can also enter the job in the ―Job‖ field. It will not actually be
applied to the job, however, until the quote is converted into an invoice.
17. You can enter the Accounts Receivable account that the quote will debit when it is converted into
an invoice into the ―A/R Account:‖ field. This field will default to the last account used in a sales
transaction. Change it, if necessary.
18. In the ―Sales Tax Code:‖ field, you will see the sales tax code for the selected customer. If you
need to change their sales tax code, select one from the list.
19. Enter in any freight charges applicable to this transaction into the ―Freight Amt:‖ field.
20. When you are done, you can ―Print‖ or ―Save‖ the quote using the buttons on the toolbar at the top
of this window.
CONVERTING QUOTES:

2. In the ―Quote‖ window, display the quote that you want to convert.
3. Click the ―Convert‖ button in the toolbar of the ―Quotes‖ window. This will bring up the
―Convert Quote‖ window.
4. Here you have three options for converting a quote under the ―Convert this Quote to a:‖
section: ―Sale/Invoice,‖ ―Sale/Invoice and Print Now,‖ or ―Sales Order.‖ Select the one
that you want.
5. If you select the first option, then you can use the ―Invoice #‖ field that appears to enter
the invoice number for this quote if one exists and the invoice doesn‘t need to be printed.
6. If you select the last option, you will see the ―SO #:‖ field become active. Here you can enter in
the sales order number for this quote if one exists and it doesn‘t need to be printed.
7. Click ―OK‖ when you have selected the options that you want to convert the quote.
6.3. Recording Sales Transactions

6.4. Converting Sales Quotes into Sales Invoices

6.5. Recording Receipts from Sales Invoices
6.5. Employee Tasks Record Default Information
6.6. Maintain Employee Records
2.5- The Payroll Setup Wizard:
To set up payroll and employee defaults, select ―Maintain| Default Information| Payroll Setup
Wizard…‖ from the Menu Bar. You must set up your payroll item defaults before you can set up
your employee defaults. Peachtree understands this, and even if you selected ―Maintain| Default
Information| Employees…‖ from the Menu Bar to set up your employee defaults first, it would
instead launch the ―Payroll Setup Wizard‖ to make you set up your payroll items first.
In Peachtree 2006:2008, if you will be performing payroll ―in-house,‖ then you must first click
the ―Payroll Setup Wizard‖ link in the window that opens. This window shows you the options
for payroll that you have in Peachtree. In addition to doing it yourself, you can also enroll in a
full-service payroll service through Peachtree. Starting in Peachtree 2009, the option to perform
payroll activities ―in-house‖ or to use the Peachtree ―Full Service Payroll‖ is built into the
Payroll Setup Wizard as you click the ―Next‖ button to continue through the screens.
If you are performing payroll ―in-house,‖ then first you must specify if you want Peachtree to
automatically update your payroll tax tables, or if you will update them manually. If you want
Peachtree to update your tax tables for you, you must either click the ―Order Online Now‖
button, or select the checkbox to specify that you have already enrolled in the service.

You then use the ―Next>‖ and <Back‖ buttons to navigate through a series of questions
presented in different panes that collect standard payroll information for your company file. It is
like the wizard used to set up the Peachtree company file. The ―Payroll Setup Wizard‖ guides
you through the process of setting up default payroll General Ledger accounts, standard payroll
fields, and optional payroll fields such as 401(k), vacation time and sick time. When you have
finished setting up the default payroll items for your company file, you may then set up the
employee defaults for your company file, if needed.
2.6- Setting Employee Defaults- 2009:2012:
You can make changes to many payroll item fields directly within the ―Employee Defaults‖
window. You can select ―Maintain| Default Information| Employees…‖ to view the information
in the ―Employee Defaults‖ window after you have completed the ―Payroll Setup Wizard‖ in
Peachtree.
The ―General‖ tab contains the field for ―Locality,‖ if used in payroll, as well as custom fields
that allow you to store ―custom‖ employee data of your choosing. You can also select the desired
option button to specify your choice for employee payroll name display on this tab.

On the ―Employee Fields‖ tab, you can view and edit payroll fields which affect the employee
pay- such as deductions, additions, and exceptions. Once these fields have been created in the
―Employee Defaults‖ window, they are then available for use by all employees. You can then
customize these individual fields for each employee‟s record later on, as needed.
The ―Company Fields‖ tab allows you to view and edit payroll fields used to track the
employer‘s payroll information- such as company-paid payroll taxes, for example.
Starting in Peachtree 2010, you also have the ―Review Ratings‖ and ―Employment Status‖ tabs.
You can enter default employee ratings into the ―Review Ratings‖ tab. You can enter up to ten
statuses used to measure employee performance, such as a numeric performance rating for
example, on this tab.
You can enter up to ten employment statuses into the ―Employment Status‖ tab. There are some
provided by default and you can choose to keep them and add more if needed, or recreate them
all, as you prefer.
Once you have made any changes that you wish within this screen, you can click the ―OK‖
button to apply your changes to the company file.

2.7- Setting Employee Defaults- 2003:2008:
After you have setup your initial payroll items, you can return to modify the default setup at any
time within the first payroll year by selecting ―Maintain| Default Information| Payroll Setup
Wizard…‖ from the Menu Bar. After your first year, you will need to make any payroll item
changes directly in the ―Employee Defaults‖ window. You can select ―Maintain| Default
Information| Employees…‖ to view the information in the ―Employee Defaults‖ window.
The ―General‖ tab contains the local and state information for your company‘s payroll, custom
fields that allow you to store ―custom‖ employee data of your choosing, your choice for
employee payroll name display, as well as access to payroll field assignment for W-2s and
employee/employer taxes.
The ―Pay Levels‖ tab allows you to create payroll fields with different descriptions for both
hourly and salary pay types. You can create payroll fields for ―overtime,‖ ―bonuses,‖ ―foreman
hours,‖ or any other type of pay. You must then assign each pay type to a payroll GL account.
Note that the amount of pay is actually specified when you create the actual employee record,
and as such doesn‘t pertain to the establishment of the pay type defaults.
On the ―EmployEE Fields‖ tab you create payroll fields which affect the employee pay, such as
deductions, additions, and exceptions. In order for a payroll field to be used on any employee‘s
paycheck, it must first be created here in the employee defaults. You can then customize these
items for each individual employee‘s record later on, if necessary.
The ―EmployER Fields‖ tab allows you to create payroll fields to track employer payroll
information, such as company-paid payroll taxes, for example.

6.6. Maintain Customer Records

In the ―Customer Defaults‖ window you can click the ―Terms and Credit‖ tab to set what will be
considered the ―standard terms‖ for customer payments. Remember that you are setting the
―default‖ values here, so you want to set the most common terms, so you won‘t have to change
them for each customer record created in the future. You must also set the General Ledger
account number used for customer discounts. You can then set the discount percentages, as
needed. You can set a default credit limit that will apply to all customers. Credit Status, which
started in Peachtree 2005, determines how Peachtree will handle transactions that place the
customer over their credit limit, by default.
On the ―Account Aging‖ tab you set the default aging definition and brackets for customer
invoices.
The ―Custom Fields‖ tab allows you to create up to five additional data storage fields which you
can use to assist you in tracking custom customer data. You define the fields (what they will
store) within in this window, and then ―fill-in‖ the values when you create each new customer
record.

On the ―Finance Charges‖ tab you can set up the default parameters under which you apply
finance charges to your 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.
The ―Pay Methods‖ tab allows you to set up to ten methods of payment that your business
accepts.
These should be entered from top to bottom, starting with the most frequently used.
1. Select ―Maintain| Default Information| Customers…‖ from the Menu Bar.
2. Click the ―Terms and Credit‖ tab.
3. Set the ―Standard Terms‖ used by default for new customers in the top section of this
tab.
4. Set the ―GL Sales Account,‖ which is the income account typically used when entering
invoices.
5. Set the ―Discount GL Account,‖ which is the GL account typically used when sales
discounts are given.
7. Choose the option button under the ―Age Invoices by:‖ section that corresponds to how
you want to age your invoices.
8. Under ―Aging Categories," select the columns used with the ―Aged Receivables‖
report. You set the number of days for the first three aging categories and Peachtree
supplies the final entry based on the third selection.
9. Click the ‖Custom Fields‖ tab.
10. Type the field labels that you want to track your custom information, and check the box
to enable the fields in the ―Customer‖ file.
11. Click the ―Finance Charges‖ tab.
12. Check the ―Charge Finance Charges‖ text box if you intend to do so.
13. Specify the rest of the finance charge information needed to charge overdue invoices
with a finance charge, if desired.

14. Click the ―Pay Methods‖ tab.
15. Enter up to ten payment methods that you accept, starting with the most frequently
accepted.
16. Click ―OK‖ when you are done.
6.7. Journalize and Record Payroll

6.8. Accounts Receivable Reports

Chapter 7- Setup and Modify Inventory Items Records
Chapter 7: Setup and Modify Inventory Item Records

Setting the ―Inventory Defaults‖ allows you to specify the default settings used when you create
new items that will be used in your invoices, bills, and purchase orders. You can access this
information by selecting ―Maintain| Default Information| Inventory Items…‖ from the Menu
Bar.
On the ―General‖ tab, here you can decide whether or not to allow duplicate UPC/SKU codes.
The ―Ordering‖ tab was new to Peachtree 2005- many of the functions previously found on the
―General‖ tab in Peachtree 2004 were placed here. Here you can set whether or not to include
quantities placed into purchase orders when calculating the ―quantity available‖ of a product.
You can also set the ―out of stock‖ warning used in the ―Sales Invoice‖ and ―Receipt‖ windows.
You can set the ―Sales Order‖ window‟s ―out of stock‖ warning message, as well. If you have
Peachtree 2005 or later, you can also see a new section: the ―Auto Creation of Purchase Orders.‖
Here you can specify to automatically create purchase orders for both ―drop ship‖ and ―non-drop
ship‖ transactions in Peachtree, if desired.
On the ―GL Accts/Costing‖ tab, you specify which General Ledger (GL) accounts to use by
default when you create items of the various ―item types‖ listed. You also select the default
freight GL account here.
On the ―Taxes/Shipping‖ tab, you define the default tax assignments used for items. You give
each a name, and indicate whether or not each is taxable or tax exempt. In the ―Ship Methods‖
list, enter up to ten shipping methods from which you will select when you enter customer and
vendor transactions. These should be entered from top to bottom from most frequently used to
least frequently used.
On the ―Custom Fields‖ tab, you can create up to five additional fields which you would like to
use to track additional, custom data about your transaction items. You define what fields you
want to track here. Then, when you create the new items, you fill in the specific values for each
field.
On the ―Price Levels‖ tab, you can create up to ten price levels which allow you to vary the
pricing of an item based on a calculation which you specify. These allow you to charge different
prices for the same item to different customers.

1. Select ―Maintain| Default Information| Inventory Items…‖ from the Menu Bar.
2. If you want to allow duplicate values in the UPC/SKU field, then check the checkbox on
the ―General‖ tab.
3. Click the ―Ordering‖ tab.
4. If you want to include quantities entered into purchase orders when calculating the
quantity available, then check the checkbox for that option in the ―Quantity Available‖
section.
5. Select the option you want regarding the notice given when items are ―out of stock‖ when
you select them in the ―Sales Invoicing‖ or ―Receipts‖ window by selecting the desired
option button under the ―Sales Invoice/Receipt Out of Stock Warning Message‖ section.
6. Select the option you want regarding the notice given when items are ―out of stock‖ when
you select them in the ―Sales Order‖ window by selecting the desired option button under
the ―Sales Order Out of Stock Warning Message‖ section.
7. In the ―Auto Creation of Purchase Orders‖ section, choose which types of transactions
will trigger the auto-creation of purchase orders.
8. Click the ―GL Accts/Costing‖ tab, and for each item class listed select the most common
general ledger accounts used for the sale and purchase of those ―type‖ of items. Some
general ledger accounts are dimmed for certain types of items to which they would be
inapplicable.

9. In the ―GL Sales/Inc‖ column, enter the default general ledger income account to be
credited for the sales price amount when an item of that type is sold.
10. In the ―GL Invtry/Wage‖ column, enter the inventory account to be debited for the
purchase cost when you purchase stock items or build assembly items. The account will
be credited for the compound cost when the item is sold. For non-stock, service, and
labor items, enters 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.
11. Enter the cost of goods sold account that will be debited for the cost when the item is sold
in the ―GL Cost Sales‖ field.
12. Enter the costing method for stock, master stock, and assembly items into the ―Costing‖
field.
13. Enter the account to which customer freight charges will be posted into the ―GL Freight
Account‖ field.
14. Click the ―Taxes/Shipping‖ tab, and under the ―Item Tax Type‖ section and enter an
identifier for your first tax type into the ―Description‖ field. Then click the ―Tax‖ check
box to allow Peachtree to calculate sales tax on items assigned to this tax type, if it is a
taxable type. The default tax type is number 1.
15. In the ―Ship Methods‖ section, enter up to ten possible shipping methods available. By
default, new inventory is assigned shipping method 1.
16. On the ―Custom Fields‖ tab, enter up to five fields to hold custom information on your
items in the five text boxes available on this tab and click the ―Enabled‖ check box to
enable the fields that you create.
17. On the ―Price Levels‖ tab, under the ―Price Levels‖ section, you can set up to ten possible
price levels.
18. If you want to set up a price level, enter the name for the price level into the first
available ―Level Name‖ field.

19. Click the ―Edit‖ gray arrow to open the ―Default Price Level Calculation‖ window for the
pricing level. Here you can set up a price level calculation and click ―OK‖ when you are
done setting the price level. It will then display its calculation in the ―Default
Calculation‖ field.
20. Click the ―OK‖ button when you are done setting up the inventory defaults.
7.1. Entering Inventory Beginning Balances

6.1- Adding Inventory:
Peachtree‘s inventory features track the goods and services that your company purchases and
sells to others. As you make inventory-related transactions, Peachtree posts the information to
the General Ledger and adjusts the quantities and costs of goods accordingly.
The first step in the process is to add the items that you will need to track into Peachtree. As you
add items, you can change the default information that you set up in the ―Inventory Item
Defaults‖ as needed. To add inventory items, just select ―Maintain| Inventory Items…‖ from the
Menu Bar to view the ―Maintain Inventory Items‖ screen. Notice that there are five tabs into
which you enter information in this window: ―General,‖ ―Custom Fields,‖ ―History,‖ ―Bill of
Materials,‖ and ―Item Attributes.‖
You begin by assigning the item an ―Item ID:.‖ Then enter a short description for the item into
the ―Description:‖ field. Next, select an item class from the drop-down list. Every item will fall
under one of the classes defined.

Item classes define the type of item that you are creating. Item classes determine how an item‘s
costing information is recorded. Once you save an item as a class of item, you cannot change the
item class. The different classes of items that we can set in the ―Maintain Inventory Items‖
screen are shown below.
Class: Description:
Stock Item Use this class to track our traditional ―inventory‖ items. Tracks the quantity,
average cost, vendors, stock reorder point, and quantity on hand.
Master Stock Item A special class of stock item that contains attribute information about
several types of sub stock items contained within it. You can go here to maintain the sub stock,
as you cannot directly change sub stock items.
Non-Stock Item Use this for items you sell but don‘t place into inventory. Doesn‘t track
―quantity on hand‖ for these items. There is no costing method.

Description Only Used for line item comments in an invoice. Nothing is tracked.
Service Use this class to represent services you apply to your salary and wages account.
Useful for services provided by your employees, and you can enter a cost for the service.
Labor Use this class to represent labor that you apply to your salary and wages account. Useful
for labor provided by subcontractors, and you can enter a cost for the labor.
Assembly Use this to represent items in your inventory that can be assembled or
disassembled from the stock items in your inventory.
Activity Item
(Peachtree Complete only) Use this item class to indicate how time is spent when performing
services for a customer. Used in employee or vendor time tickets when you plan on billing
customers for activities performed by employees or vendors (sub-contactors).
Charge Item
(Peachtree Complete only) Use this item class to identify reimbursable charges incurred when
performing services for a customer. Used in employee or vendor time tickets when you plan on
billing customers for reimbursable expenses.
On the ―General‖ tab, you enter in the specific information for each item. Depending on the class
of inventory item, some fields may not be available on the ―General‖ tab. You also enter in the
beginning balances on this tab. In the ―Description‖ field, you select either ―for Sales‖ or ―for
Purchases.‖ You can enter two descriptions per item, one which appears in the ―sales‖ forms and
one which appears in the ―purchase‖ forms. Enter the sales price into the ―Price:‖ field. For your
stock and assembly items, enter in 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 your non-
stock, service, and labor items, enter the ―Cost of Sales‖ amount that should be posted when the
item is sold. Next, select one of the three available costing methods from the drop-down list of
choices: ―FIFO,‖ ―LIFO,‖ and ―Average.‖ This cannot be changed after the item has been saved.
It will only be available, however, for stock and assembly items.
Continue by entering in the ―UPC/SKU‖ code for the item. Then select an ―Item Type:‖ of your
choosing. This is used for filtering reports. You can enter in a description of the item‟s physical
location in the ―Location:‖ field. Then, enter in how the item is sold in the ―Stocking U/M:‖
field. This is optional, as it is never used in calculations. You can also enter in a ―Weight:‖ for
the item. Weight totals can actually be printed on reports, providing you use the same unit of
measurement for each item.

Next, enter in the income account that will be credited when the item is sold in the ―GL Sales
Acct:‖ field. Enter the inventory account that will be debited when the item is bought and
credited when it is sold into the ―GL Inventory Acct:‖ field. You then enter the expense account
that will be credited when a non- stock item is sold in the ―GL Salary/Wages Acct:‖ field. This
account will be reduced and the cost of sales account will be increased when a non-stock item is
sold. Enter the cost of goods account that will be debited when the item is sold in the ―GL Cost
of Sales Acct:‖ field. Assign the item an ―Item Tax Code.‖
Finally, enter in the ―Minimum Stock:‖ number in the field of the same name. This is the
quantity at which you reorder stock. It‘s used for stock and assembly items only. Also enter in
the ―Reorder Quantity:,‖ which is the number of item usually purchased when the minimum
stock level is reached. Also, specify the preferred vendors for this item in the ―Preferred Vendor
ID:‖ box. If you have a buyer, you can specify the employee id of the buyer in the ―Buyer:‖ field.
When you are ready to enter beginning balances for your items (assuming you are setting up
your company), you will click the ―Beginning Balances:‖ arrow. We will discuss this later. For
now, congratulations on getting through the ―General‖ tab!
Click the ―Custom Fields‖ tab. Here you will enter in any information for this item into the fields
that you decided to set up when you set the values in the ―Inventory Item Defaults‖ window.
Click the ―History‖ tab. You can‘t make changes to this window, but it does show useful
information. It will display the period history date and for that date the number of units sold,
dollar sales, number of units received, and the total cost for the item.
Click the ―Bill of Materials‖ tab. Here you enter information about your ―assembly‖ class items.
If the item you are entering information for is not of the ―assembly‖ class, then you can skip this
tab. An ―assembly‖ is a group of products which you sell as a unit. To create an assembly item,
you must select the required component items, and enter the quantities needed of each on the
―Bill of Materials‖ tab. If you want the items that make up an assembly to print as separate line
items in invoices, then click the ―Print Components on Invoice‖ check box. Then, select the
―Item ID:‖ of the first item used in the assembly. You can use any stock, non-stock, description,
assembly, labor or service item. Next, enter a short description for the item for reference in the
―Description:‖ field. Next, type in the ―Quantity Needed:‖ of the item in order to build the
assembly. You can also use the ―Add‖ and ―Remove‖ button on the right of this tab to add and
remove item components for an assembly. Make sure that you enter in all of the items needed for
the assembly.

Click the ―Item Attributes‖ tab only if you set up the item as a ―Master Item‖ in the ―Item Class‖
drop- down. On this tab, you set the ―Primary attributes‖ and ―Secondary Attributes‖ for the
master stock item. These attributes could include things like size, style, and color, for instance.
As you set the attributes, Peachtree will create ―sub-stock‖ items of every possible combination
between your ―Primary‖ and ―Secondary‖ attributes.
Under the ―Primary Attributes:‖ section, enter the name of the primary attribute you have set.
Then give the first specific instance of the set an ID code by typing it into the ―ID:‖ field. Type
the description for the specific instance into the ―Description:‖ field and click the ―Add‖ button
to add the attribute to the list of primary attributes. You can also select an attribute in this list,
and click the ―Remove‖ button to remove it.
Under the ―Secondary Attributes:‖ section, enter the name of the secondary attribute set. Then
give the first specific instance of the set an ID code in the ―ID:‖ field. Type the description for
the specific instance in the ―Description:‖ field. Click the ―Add‖ button to add the attribute to the
list of secondary attributes. You can also select an attribute in this list, and click the ―Remove‖
button to remove it.
Once you save a ―Master Stock‖ item, it will generate every possible combination of primary and
secondary attributes as separate stock items called ―sub-stock.‖ These will display in the
―Created Substock Items:‖ list. The ―Item ID:‖ of substock is the combination of the ID code for
the master item, plus the ID codes of their primary and secondary attributes. You cannot delete a
substock item without removing its attribute ID, but you can check the ―inactive‖ checkbox for
any created substock item to inactivate it. Make sure that you click ―Save‖ when you are done
entering any new item information to save it.
6.2- Removing Inventory:
To remove inventory you don‟t use (with the exception of the substock as noted above), you just
open up the ―Maintain Inventory Items‖ list, and select the inventory item that you want to
remove. Click the ―Delete‖ button to permanently delete it. If you‘ve used it in transactions,
though, you must not delete it. You have to make it inactive instead by selecting the check box
for ―Inactive‖ at the top of the window, and then clicking the ―Save‖ button on the toolbar at the
top of the window.
6.3- Entering Inventory Beginning Balances:
When you are ready to enter the beginning balances for your inventory items into Peachtree, you
will need to open up an item in the ―Maintain Inventory Items‖ window, and click the

―Beginning Balances:‖ arrow on the ―General‖ tab to open the ―Inventory Beginning Balances‖
window.
Here you select the items that you had in stock as of the date you started using Peachtree. Select
the first item that you have in stock and enter in the ―Quantity:‖ and ―Unit Cost:‖ of each item.
The total beginning balances amount should equal the amount entered as the beginning balance
in the General Ledger inventory account. Click the ―OK‖ button when you are done.
6.4- Building and Unbuilding Assemblies:
After you enter assembly items into your inventory and have created the bill of materials for
them, you can then use the ―Build/Unbuild Assemblies‖ window to build or unbuild the
assembly items. When you build an assembly, the quantities of the component items are
decreased and the quantity on hand of the assembly item is increased. When you unbuild an
assembly, the opposite occurs. Once you unbuild an assembly, you can then sell the individual
components.
To build an assembly, select ―Tasks| Assemblies…‖ from the Menu Bar. This will bring up the
―Build/Unbuild Assemblies‖ window, where you can build and unbuild the assembly items.

First off, to build or unbuild assembly items, select the item ID of the assembly item which you
would like to build or unbuild from the ―Item ID:‖ drop-down. Then enter in a unique reference
code for the assembly adjustment into the ―Reference:‖ field. Enter the date of the adjustment
into the ―Date:‖ text box.
In Peachtree 2004, you then entered the quantity to build as a positive number into the box
displayed. If you were unbuilding an item, you simply entered the number as a negative number.
Starting in Peachtree 2005, enter the number of items to either build or unbuild into the ―Qty:‖
field and then select the ―Action:‖ you wish to perform by choosing the correct option button-
either ―Build‖ or ―Unbuild.‖ You can also enter in a reason to either build or unbuild assemblies
into the ―Reason:‖ field. When you are done, just remember to click the ―Save‖ button in this
window to save your record and update the inventory amounts.
6.5- Making Inventory Adjustments:
Sometimes, you have to make inventory adjustments so that the amount shown in Peachtree
agrees with your physical count. To enter an inventory adjustment, select ―Tasks| Inventory
Adjustments…‖ from the Menu Bar. You can increase or decrease inventory using this same
window.

If you want to increase the quantity on hand, enter in a positive number into the ―Adjust Quantity
By:‖ field. To record a decrease in the quantity on hand, enter a negative number into the
―Adjust Quantity By:‖ field. Inventory adjustments affect the account assigned in the ―GL
Source Acct:‖ field. If the adjustment you are making in an increase, you can enter in the cost of
the item in the ―Unit Cost:‖ field.
6.6- Changing Item Prices:

If you are using Peachtree Complete or Premium Accounting, you can re-calculate item prices
for a range of selected items at once. To do this, select ―Maintain| Item Prices…‖ from the Menu
Bar. In the ―Maintain Item Prices – Filter Selection‖ screen that appears, set the desired filters to
select the items or range of items for which you want to adjust the prices. Once you have used
the drop-downs available to choose for which range of items you wish to adjust pricing, click
―OK‖ to continue to the ―Maintain Item Prices‖ window. Here you select the price levels for
which you wish to recalculate pricing by checking the levels to adjust and unchecking the levels
to not adjust in the ―Select which price levels to adjust‖ list in the upper left corner of the screen.
Note that if you uncheck a level, all item pricing shown for that level (column) in the pricing
section below will become ―grayed-out.‖ This exempts those prices from changing. You can also
manually check or uncheck any box in the ―Select‖ column to exempt an item in the list from
having its price changed. Note that this ―grays-out‖ the item‘s row in the pricing grid.
Next, select one of the options to set the new pricing from the methods of adjustment displayed

and enter a new calculation, if necessary. Once you have done this, you can click the
―Recalculate‖ button in the toolbar at the top of the window to set the new pricing. You can also
manually enter prices into the ―New Price‖ field, if that is easier. Just click the ―Save‖ button
when you are finished to set the new item prices.
ADDING INVENTORY:
1. Select ―Maintain| Inventory Items…‖ from the Menu Bar to view the ―Maintain
Inventory Items‖ screen.
2. Enter an ―Item ID:‖ into the field of the same name.
3. Enter a short description for the item into the ―Description:‖ field.
4. Select an item class from the drop-down list.
5. In the ―Description‖ field, you select either ―for Sales‖ or ―for Purchases.‖ You can
enter two descriptions per item, one for sales and one for purchases.
6. Then enter the sales price in the ―Price:‖ field.
7. For your stock and assembly items, enter in the last purchase price paid for the item in
the ―Last Unit Cost:‖ field. Once a beginning balance or transaction is entered using
this item, this field is updated by Peachtree. For your non-stock, service, and labor
items, enter the ―Cost of Sales‖ amount that should be posted when the item is sold.
8. Next, select one of the three available costing methods from the drop-down list of
choices: ―FIFO,‖ ―LIFO,‖ and ―Average.‖ This cannot be changed after the item has
been saved. It will only be available, however, for stock and assembly items.
9. Continue by entering in the ―UPC/SKU‖ code for the item.
10. Select an ―Item Type:‖ of your choosing.
11. You can enter in a description of the item‟s physical location in the ―Location:‖ field.
12. Enter in how the item is sold in the ―Unit/Measure:‖ field. This is optional, as it is
never used in calculations.
13. You can also enter in a ―Weight:‖ for the item. Weight totals can actually be printed
on reports, providing you use the same unit of measurement for each item.
14. Next, enter in the income account that will be credited when the item is sold in the
―GL Sales Acct:‖ field.
15. Enter the inventory account that will be debited when the item is bought and credited
when it is sold into the ―GL Inventory Acct:‖ field.
16. You then enter the expense account that will be credited when a non-stock item is sold

in the ―GL Salary/Wages Acct:‖ field. This account will be reduced and the cost of
sales account will be increased when a non-stock item is sold.
17. Enter the cost of goods account that will be debited when the item is sold in the ―GL
Cost of Sales Acct:‖ field.
18. Assign the item an ―Item Tax Code:.‖
19. Enter in the ―Minimum Stock:‟ number in the field of the same name. This is the
quantity at which you normally order more stock. It‟s used for stock and assembly
items only.
20. Also enter in the ―Reorder Quantity:,‖ which is the number usually purchased when
the minimum stock level is reached.
21. Also, specify the preferred vendor for this item in the ―Preferred Vendor ID:‖ box.
22. If you have a buyer, you can specify the employee id of the buyer in the ―Buyer:‖
field.
23. Click the ―Custom Fields‖ tab. Here you will enter in any information for this item
into the fields that you decided to set up when you created the Inventory Defaults.
24. Click the ―History‖ tab. You can‟t make changes to this window, but it does show
useful information. It will display the period history date and for that date the number
of units sold, dollar sales, number of units received, and the total cost for the item.
25. Click the ―Bill of Materials‖ tab. Here you enter in information about your assemblies.
If the item you are entering information for is not an assembly, then you can skip this
tab.
26. To create an assembly item, you must select the required component items, and enter
the quantities needed of each on the ―Bill of Materials‖ tab.
27. If you want the items that make up an assembly to print as separate line items in
invoices, then click the ―Print Components on Invoice‖ check box.
28. Select the ―Item ID:‖ of the first item used in the assembly. You can use any stock,
non- stock,description, assembly, labor or service item.
29. Enter a short description for the item for reference in the ―Description:‖ field.
30. Type in the ―Quantity Needed:‖ of the item in order to build the assembly.
31. You can also use the ―Add‖ and ―Remove‖ button on the right of this tab to add and
remove item components for an assembly. Make sure that you enter in all of the items
needed for the assembly.

32. Click the ―Item Attributes‖ tab if you set up the item as a ―Master Item‖ in the ―Item
Class‖ drop-down.
33. On this tab, you set the ―Primary attributes‖ and ―Secondary Attributes‖ for the Master
item. These attributes could include things like size, style, and color, for instance. As
you set the attributes, Peachtree will create ―sub-stock‖ items of every possible
combination between your ―Primary‖ and ―Secondary‖ attributes.
34. Under the ―Primary Attributes:‖ section, enter the name of the primary attribute set.
35. Then give the first specific instance of the set an id code in the ―ID:‖ field.
36. Type the description for the specific instance in the ―Description:‖ field.
37. Click the ―Add‖ button to add the attribute to the list of primary attributes.
38. You can also select an attribute in this list, and click the ―Remove‖ button to remove
it.
39. Under the ―Secondary Attributes:‖ section, enter the name of the secondary attribute
set.
40. Then give the first specific instance of the set an id code in the ―ID:‖ field.
41. Type the description for the specific instance in the ―Description:‖ field.
42. Click the ―Add‖ button to add the attribute to the list of secondary attributes.
43. You can also select an attribute in this list, and click the ―Remove‖ button to remove
it.
44. Click ―Save‖ when you are done entering any new item to save it.
REMOVING INVENTORY :
2. Select an ―Item ID:‖ from the field of the same name.
3. Click the ―Delete‖ button to permanently delete it. If you‟ve used it in transactions,
though, you will not be allowed to delete it.
4. You can inactivate it instead by selecting the check box for ―Inactive‖ at the top of the
window.
5. Click the ―Save‖ button on the toolbar at the top of the window.
ADDING INVENTORY BEGINNING BALANCES:

2. Click the ―Beginning Balances:‖ arrow in the lower right corner of the ―General‖ tab.
3. Select the first item that you had in stock on your start date and enter in the ―Quantity:‖
and ―Unit Cost:.‖
4. Repeat step 4 for all of your inventory that you had as of your Peachtree start date.
5. Click ―OK‖ when you are done entering information.
BUILDING AND UNBUILDING ASSEMBLIES:
1. To build or unbuild an assembly item, select ―Tasks| Assemblies…‖ from the Menu Bar.
2. Select the item ID of the assembly item to build or unbuild from the ―Item ID:‖ drop-down.
3. Enter a unique reference code for the build/unbuild into the ―Reference:‖ field.
4. Enter the date of the build/unbuild into the ―Date:‖ text box.
5. In the ―Qty:‖ field, enter in the number of assembly item to either build or unbuild if using
Peachtree 2005. If using Peachtree 2004, enter the number to build as a positive number or
the number to unbuild as a negative number.
6. Starting in Peachtree 2005, select whether or not you are going to ―Build‖ or ―Unbuild‖ the
selected item by choosing the desired option from the ―Action:‖ section.
7. You can also enter in a reason to either build or unbuild assemblies into the ―Reason:‖
field.
8. When you are done, just remember to click the ―Save‖ button in this window to save your
record.
MAKING INVENTORY ADJUSTMENTS:
1. Select ―Tasks| Inventory Adjustments…‖ from the Menu Bar.

2. If you want to increase the quantity on hand, enter in a positive number in the ―Adjust
Quantity By:‖ field.
3. To record a decrease in the quantity on hand, enter a negative number into the ―Adjust
Quantity By:‖ field.
4. Inventory adjustments affect the account displayed in the ―GL Source Acct:‖ field. Make
sure that you have the correct account entered in here.
5. If the adjustment you are making in an increase, you can enter in the cost of the item in the
―Unit Cost:‖ field.
6. Click ―Save‖ when you are done.

CALCULATING NEW ITEM PRICES:
1. Select ―Maintain| Item Prices…‖ from the Menu Bar.

2. In the ―Maintain Item Prices – Filter Selection‖ screen that appears, set the desired filters to
select the items or range of items for which you want to adjust the prices.
3. Once you have used the drop-downs available to choose for which range of items you wish
to adjust pricing, click ―OK‖ to continue to the ―Maintain Item Prices‖ window.
4. Select the price levels for which you wish to recalculate pricing by checking the levels to
adjust and unchecking the levels to not adjust in the ―Select which price levels to adjust‖
list in the upper left corner of the screen.
5. You can manually check or uncheck any box in the ―Select‖ column to exempt an item in
the list from having its price changed.
6. Select one of the options to set the new pricing from the methods of adjustment displayed
and enter a new calculation, if necessary.
7. Once you have done this, you can click the ―Recalculate‖ button in the toolbar at the top of
the window to set the new pricing.
8. You can also manually enter prices into the ―New Price‖ field, if that is easier. Click the
―Save‖ button when you are finished to set the new item prices.
7.2. Recording Purchases and Items Sold

7.3. Adjustment for Inventory Shortage and Overages
7.4. View/Print Inventory Reports

Chapter 8- Preparing a Bank Reconciliation
Chapter 8 Preparing Bank Reconciliation

8.1. Adjusting the Bank Account
8.1- Writing Checks:
You can use the ―Write Checks‖ window to quickly write checks and then apply the amount
to one or more expense accounts. If the payment that you are making doesn‘t involve invoices
or inventory items, then this is simply the easiest payment method to use. You can access this
window by selecting ―Tasks| Write Checks…‖ from the Menu Bar.
You can use this window to pay non-invoice bills, or to write checks to vendors that don‘t
have Vendor IDs. It is basically a simplified version of the ―Payments‖ window that allows
you to enter check information without having to enter line items distributions.
Enter the Vendor ID of the vendor that is being paid into the ―Vendor ID:‖ field. If you are
paying a vendor without an ID, then leave this field blank and just type the name of the
vendor into the ―Pay to the Order of:‖ field. You can enter in the address information for the
vendor (if they aren‘t in your vendors list) under the ―Pay to the Order of:‖ field, as well.
If you plan on printing this check, then leave the ―Check Number:‖ field blank.
Otherwise, fill-in the check number of the check that you wrote to the vendor. Enter the date
the check was created in the ―Date:‖ field. Then, enter the amount of the check into the

―Dollars:‖ field. Enter the account number from which the check will draw its funds in the
―Cash Account:‖ field.
Enter the account that you will expense the payment to in the ―Expense Account:‖ field. If
you need to split the expense between multiple accounts, click the ―Split‖ button. This will
open up the ―Split Transaction‖ window. In this window, you can split the value of the check
between multiple expense accounts. Click ―OK‖ in this window to return to the check. You
can finish by entering a description of the payment into the ―Description:‖ field.
Starting in Peachtree 2006, you can make payments electronically by selecting the
―Electronic Payment‖ checkbox in the upper-left corner of the window. You will notice when
you do this, that the ―Check Number:‖ changes to say ―Electronic‖ and is grayed-out. When
you click the ―Save‖ button, if you have not yet enrolled in the Peachtree Bill Pay service,
you will be prompted to do so by clicking the ―Enroll‖ button. If you have already enrolled
but have not yet activated the service, click the ―Activate‖ button and follow the steps
presented to you.
8.2- Voiding Checks:
You can easily void checks in Peachtree. When you void a check, a new transaction is created
with a check number consisting of the original check number, followed by the letter ―V.‖ This
new entry will reverse the entries made to the General Ledger by the original check. Both will
still appear in reports and the ―Account Reconciliation‖ window when you reconcile your
accounts.
To void a check, just open the ―Void Existing Checks‖ window by selecting ―Tasks| Void
Checks…‖ from the Menu Bar. In the ―Void Existing Checks‖ window, select the check that
you wish to void in the list of checks that appears. Click the ―Void‖ button. This will then
prompt you to decide if you really want to void the check, click ―Yes‖ if you do or click ―No‖
if you don‘t. Click the ―Close‖ button when you are done.

8.3- Reconciling Bank Accounts:
You can reconcile any account in Peachtree using the ―Account Reconciliation‖ window.
This window shows your uncleared transactions that have affected the account balance
through the end of the current accounting period. You can use this information to then
reconcile the transactions in Peachtree with your bank account statements. As you clear the
Peachtree transactions, the ―Unreconciled Difference‖ will approach zero. Once you have
marked all of your cleared transactions, the difference should be zero. Additional
transactions, such as bank service charges can be added while you are reconciling the account
using the ―Adjust‖ button in the toolbar. Starting in Peachtree 2004, you can input bank
service fees and interest earned directly into the reconciliation window, if desired. You can
also use the ―Adjust‖ button, if you prefer that method. Starting in Peachtree 2004, clicking
the ―Adjust‖ button brings up the ―General Journal Entry‖ screen where you can enter the
necessary entries. To bring up the ―Account Reconciliation‖ window, select ―Tasks| Account
Reconciliation…‖ from the Menu Bar.
First, select the ID of the account that you want to reconcile from the ―Account to Reconcile:‖
drop- down. Next, enter the statement date in the ―Statement date:‖ field. Then, if using
Peachtree 2003:2007, look in the ―Checks‖ and ―Deposits‖ lists to find your entered
transactions to compare them to your bank statement. Starting in Peachtree 2007, all the bank

account transactions are displayed in a single list.
Check the checkbox at the left of any transaction to clear it. After a successful
reconciliation, these cleared transactions will be removed from your list when you move to
the next accounting period.
You also have some unique buttons on the toolbar in the ―Account Reconciliation‖ window.
If you click the ―OK‖ button, you will save your changes and close the ―Account
Reconciliation‖ window. You can return at any time within the accounting period to finish the
reconciliation, if needed. You can click the ―Range‖ button to enter in a range of check
numbers to clear. You can also click the ―Row‖ drop-down to select either ―All (checked),‖
which will check every transaction listed, or ―All (unchecked),‖ which will clear every
transaction listed. The most important button is the ―Adjust‖ button. If you click this button in
Peachtree 2003, it will display the ―Additional Transactions‖ window where you can enter
transactions listed on your bank statement that aren‟t in Peachtree. This is used for things like
―Interest Earned‖ from the Bank Statement. Entries that you make in this window do affect
the General Ledger. Starting in Peachtree 2004, clicking the ―Adjust‖ button simply launches
the ―General Journal Entry‖ screen where you can also enter these types of additional
unrecorded transactions in a true journal entry format.

At the bottom of this window, in the ―Statement Ending Balance:‖ field, enter the ending
balance for this account as shown in your bank statement. This will be the figure used to
calculate the unreconciled difference. Also enter any bank service fees or interest earned on
the account into the field provided. If you are just beginning to use Peachtree, you may need
to click the ―Beginning Transactions‖ gray arrow button to bring up the ―Beginning
Transactions‖ window. In this window, you can enter in transactions that occurred before the
Peachtree start date. These transactions will not affect the General Ledger and they will only
be used for account reconciliation.
8.4- Changing the Accounting Period:
When you have entered all of the transactions for the current accounting period, you can
advance to the next accounting period. The ―Change Accounting Period‖ window is used to
switch between accounting periods within the two open fiscal years. To display this window,
select ―Tasks| System| Change Accounting Period‖ from the Menu Bar. Sometimes when
performing an account reconciliation, if you have stepped forward to perform data entry,
you‟ll have to step backward into the previous accounting period to reconcile the transactions

in that period.
In the ―Change Accounting Period‖ window, you just click on the accounting period that you
want to go to in the list of available accounting periods to the left side of the window, and
then click the ―OK‖ button in the toolbar at the top of the window to jump to the selected
accounting period. As you move forward it asks if you want to print any unprinted reports and
items. Usually this is a good idea. Note that Peachtree will not ask this of you when you are
stepping backwards through periods.
WRITING CHECKS:
1. Select ―Tasks| Write Checks…‖ from the Menu Bar.

2. Enter the vendor id of the vendor that is being paid into the ―Vendor ID:‖ field.
3. If you are paying a vendor without an id, then leave this field blank and just type the
name of the vendor into the ―Pay to the Order of:‖ field. You can enter in the address
information for the vendor (if they aren‟t in your vendors list) under the ―Pay to the Order
of:‖ field, as well.

4. If you plan on printing this check, then leave the ―Check Number:‖ field blank. Otherwise,
fill-in the check number of the check that you wrote to the vendor. If you plan to send the
payment electronically, select the ―Electronic Payment‖ checkbox.
5. Enter the date the check was created in the ―Date:‖ field.
6. Then, enter the amount of the check into the ―Dollars:‖ field.
7. Enter the account number from which the check will draw its funds in the ―Cash Account:‖
field.
8. Enter the account that you will expense the payment to in the ―Expense Account:‖ field.
9. If you need to split the expense between multiple accounts, click the ―Split‖ button. This
will open up the ―Split Transaction‖ window. In this window, you can split the value of
the check between multiple expense accounts. Click ―OK‖ in this window to return to the
check.
10. You can finish by entering a description of the payment into the ―Description:‖ field.
NOTE: If you are making an electronic payment and you have not yet enrolled in the
Peachtree Bill Pay service, you will be prompted to do so by clicking the ―Enroll‖ button.
If you have already enrolled but have not yet activated the service, click the ―Activate‖
button and follow the steps presented to you. You MUST enroll in the Bill Pay service to
send electronic payments through Peachtree.
VOIDING CHECKS:
1. To void a check, just open the ―Void Existing Checks‖ window by selecting ―Tasks| Void
Checks…‖ from the Menu Bar.
2. In the ―Void Existing Checks‖ window, select the check that you wish to void in the list
of checks that
appears.
3. Click the ―Void‖ button.
4. This will then prompt you to decide if you really want to void the check, click ―Yes‖ if
you do, and click ―No‖ if you don‟t.
5. Click the ―Close‖ button when you are done.
RECONCILING BANK ACCOUNTS- 2003:2005:
1. Select ―Tasks| Account Reconciliation…‖ from the Menu Bar.

2. First, select the ID of the account that you want to reconcile from the ―Account to
Reconcile:‖ drop-down.
3. Next, enter the statement date in the ―Statement date:‖ field.
4. In the ―Statement Ending Balance:‖ field at the bottom of the ―Account Reconciliation‖
window, enter in the ending balance for this account as shown in your bank statement.
This will then be used to figure out the unreconciled difference.
5. Check the ―Clear‖ check box to clear a transaction marked as ―cleared‖ in your bank
statement using the ―Checks‖ or ―Deposits‖ list windows. These items will be removed
from your list after you change to the next accounting period. The ―Reference,‖
―Amount,‖ ―Date,‖ and ―Vendor/Payee‖ fields show that information for the transaction.

6. If you are just beginning to use Peachtree, you may need to click the ―Beginning
Transactions‖ button to bring up the ―Beginning Transactions‖ window. In this window,
you can enter in transactions that occurred before the Peachtree start date. These
transactions will not affect the General Ledger, they will only be used for account
reconciliation.
7. If using Peachtree 2003, to enter transactions not recorded in Peachtree click the ―Adjust‖
button. If you click this button, it will display the ―Additional Transactions‖ window
where you can enter transactions listed on your bank statement that aren‟t recorded in
Peachtree. This is used for things like ―Bank Service Fees‖ or ―Interest Earned‖ from
the bank statement. Entries that you make in this window do affect the General Ledger.
8. If using Peachtree 2004, you can enter the ―Service charges:‖ and ―Interest income:‖ into
the text boxes provided below the ―Checks‖ and ―Deposits‖ windows. If you need to enter
in multiple additional transactions, click the ―Adjust‖ button and enter the transactions as
General Journal Entries.
9. Once the ―Unreconciled Difference‖ is zero, click ―OK‖ when you are done.
RECONCILING BANK ACCOUNTS- 2006:2012:
1. Select ―Tasks| Account Reconciliation…‖ from the Menu Bar.

2. Select the ID of the account that you want to reconcile from the ―Account to Reconcile:‖
drop-down.
3. Enter the statement date in the ―Statement Date:‖ field.
4. In the ―Statement Ending Balance:‖ field, enter in the ending balance for this account as
shown on your
bank statement. You can also enter any interest earned or bank service fees into the fields
shown.
5. You can select what types of transactions you want to see by selecting an option from the
―Show:‖ drop- down.
6. Check each of the transactions as ―Cleared‖ that appear both on your paper statement
from the bank and on your screen. You may notice that when you click a transaction line
that a box with an option for what action to take appears. This is a ―Quick Action‖ button.
You can click the ―Banking‖ button at the top of the window and select ―Quick Action
Buttons‖ to turn this feature on or off.
7. If you are just beginning to use Peachtree, you may need to click the ―Beginning
Transactions‖ gray arrow button to bring up the ―Beginning Transactions‖ window. In
this window, you can enter in transactions that occurred before the Peachtree start date.
8. You can also click the ―Row‖ drop-down to select either ―All (checked),‖ which will
check every transaction listed, or ―All (unchecked),‖ which will clear every transaction
listed.
RECONCILING BANK ACCOUNTS- 2006:2012 (CONT.):
9. You can click the ―Range‖ button to enter in a range of check numbers to clear.
10. Click the ―Adjust‖ button to launch the ―General Journal Entry‖ screen where you can
enter additional credits and debits to your account such as bank charges and interest

earned, if desired or necessary.

11. Click the ―OK‖ button to save your changes and close the ―Account Reconciliation‖
window.
CHANGING THE ACCOUNTING PERIOD:
1. Select ―Tasks| System| Change Accounting Period…‖ from the Menu Bar, or just click
the ―Current Period‖ button in the Status Bar (―Change Accounting Period‖ in Peachtree
2006).
2. In the ―Change Accounting Period‖ window, you just click on the accounting period that
you want to go to in the list of available accounting periods to the left side of the window.
3. Click the ―OK‖ button in the toolbar at the top of the window to jump to the selected
accounting period.

Chapter 9 – Overview of Financial Statements
Chapter 9 Overview of Financial Statements

1.1. Printing/Viewing Financial Reports
Basic General Ledger Reports:
General Ledger Reports show the detail of transactions recorded by various journals by
account number. To view the basic General Ledger reports, you select ―Reports & Forms|
General Ledger…‖ from the Menu Bar. Note that in prior versions of Peachtree, the
―Reports & Forms‖ command was simply called ―Reports.‖
In the ―Select a Report‖ window that appears, click on the type of General Ledger report
that you want to view from the list at the right. To preview the selected report, just click
the ―Display‖ (―Preview‖ in Peachtree 2003-2007) button in the toolbar of the window.
Note that Peachtree Complete Accounting 2007:2012 has added a few new reports to this
report category.
Report Name: Shows:
Account Variance (2007:2012) Displays the actual amount, budget amount,

variance amount and variance
percent for the accounts and periods you select.
Budget (2007:2012) Shows period and year to date budget amounts.

Cash Account Register Lists all transactions affecting a selected cash account,
along with a running
balance.
Chart of Accounts Lists all account numbers, descriptions, and account types.
General Journal Lists all general journal transactions for the selected date range.
General Ledger Lists transactions in each account for the selected accounting
period. Shows activity and balance in each account.
General Ledger Trial Balance Lists the current balance in each account, and also
shows history for the
selected accounting period.
Transaction Detail (2008:2012) Shows all transactions that match your specified
search criteria.
Working Trial Balance Lists the accounts and their debit or credit balances.
RUNNING BASIC GENERAL LEDGER REPORTS:
1. Select ―Reports & Forms (―Reports‖ in Peachtree 2003:2007)| General Ledger…‖ from the
Menu Bar.
2. In the ―Select a Report or Form‖ window, click on the icon for the type of report that you
want to run.
3. Click the ―Display‖ (―Preview‖ in Peachtree 2003:2007) button to preview the report.
4. Click the ―Print‖ button to print the report shown in the preview window.
9.2. Designing Financial Statements

The financial statement wizard walks you through customizing financial statements. In this
example, the Balance Sheet‘s heading was changed.

Analysis Questions,
1.What is a Peachtree form?
A form in Peachtree is a document that you exchange with customers, vendors, or

employees. The forms that come with PCA include checks, tax forms, invoices,
statements, mailing labels, quotes, and collection letters. Forms are usually tied to a
transaction, such as an invoice or check.
2.What is a predefined or standard form?
Predefined reports are those that came with the software; for example, the <Standard>
Balance Sheet. You cannot overwrite predefined reports.

Chapter 10 – Setting up System Accounts and Passwords
Chapter 10: Setting up System Accounts and Passwords

10.1 Security Measures – Backup and Restore Procedures
2.9- Making a Backup
You must backup your Peachtree company data to prevent having to re-enter many hours of data
in the event of data file loss or corruption of the company data file. Even minor events like a
power outage can damage a company data file, so it is recommended that you back up your data
frequently. Backing up your data creates a single file which includes all of your company
information and customized forms created at the time the backup is made. To create a backup of
your company file, select ―File| Back Up…‖ from the Menu Bar. This will launch the „Back Up
Company‖ window, where you can check the available checkboxes to have Peachtree remind
you to back up your company file every seven days and whether or not it should include the
company name in the backup file name. When you are ready, click the ―Back Up‖ button to call
up a ―Save Backup‖ window where you can select the drive to which you want to save your data.
Type a file name and click ―Save‖ when you are done to back up your data to the selected
directory.
2.10- Restoring from a Backup File:
Restoring a company file replaces all information in a selected company file with information
saved to a backup file which you choose. This is a critical feature that you must learn to perform
in the case of company data file corruption or loss. You can choose to restore the company data
only, the customized forms only, the web transactions only, or all three things at once. However,
because all company data is interrelated and stored in a single data file, you cannot restore
individual components of a company file, like a single invoice. To restore a company file, select
―File| Restore…‖ from the Menu Bar.
After selecting ―File| Restore…‖ from the Menu Bar, you will be presented with the ―Restore
Wizard.‖ In the first screen, click the ―Browse…‖ button to select your backup file from the
―Open Backup File‖ dialog box, if necessary. After selecting your saved backup file, click ―Next
>‖ to continue to the next screen. On the next screen, select which company file to overwrite.

You can select to create a new company, if desired, which will change the folder into which you
store the copy company. You can click the ―Browse…‖ button to set the name and location of
the new company file. Click ―Next >‖ when you are ready to continue. The next screen allows
you to check or uncheck what it is you want to restore to the selected company file from the
chosen backup file. Then click ―Next >‖ to continue to the last screen where you confirm your
choices. When you are ready to restore the file, click the ―Finish‖ button.
BACKING UP A COMPANY FILE:
1. To create a backup of your company file, select ―File| Back Up…‖ from the Menu Bar.
2. This will launch the „Back Up Company‖ window, where you can check the available
checkboxes to have Peachtree remind you to back up your company file every seven days
and whether or not it should include the company name in the backup file name.
3. When you are ready, click the ―Back Up‖ button to call up a ―Save Backup‖ window where
you can select the drive to which you want to save your data.
4. Type a file name and click ―Save‖ when you are done to back up your data to the selected
directory.
RESTORING A COMPANY FROM A BACKUP FILE:
2. Select ―File| Restore…‖ from the Menu Bar.
3. If you need to select the backup file to use, click the ―Browse…‖ button to launch the
―Open Backup File‖ dialog box where you can select the backup file you wish to use. Then
click ―Next >‖ to continue.
4. Next, select which company file to overwrite or create. The choice you make from the
option buttons available will change into which folder you store the company. You may
also click the ―Browse…‖ button here and select the name and location of the new
company file, if you would like.
5. Click ―Next >‖ when you are ready to continue.
6. The next screen allows you to check or uncheck what it is you want to restore from the
backup file.
7. Click ―Next >‖ to continue.

8. When you are ready to restore the file, click the ―Finish‖ button.

CHAPTER 4 QUIZ
TRUE/FALSE – MULTIPLE CHOICE QUESTIONS:

1. The total of the balances of the individual accounts in the subsidiary ledger must equal
their controlling account in the general ledger.
a. True
b. False
2. Which option from the Menu bar would you use to record information about a
customer‘s name, address, telephone number, and so on?
a. Tasks
b. Customer Information
c. Records
d. Maintain
3. Recording a sale to a customer on account would include

a. debiting Revenue and crediting Accounts Receivable.
b. debiting Accounts Receivable and crediting Revenue.
c. debiting Cash and crediting Accounts Receivable.
d. debiting Cash and crediting Revenue.
4. Which option would you choose from the Maintain menu to create subsidiary ledger
accounts for customers?
a. Sales/Invoicing
b. Purchases/Receipts
c. Customers/Prospects
d. Create Customer
5. Which of the following occurs in Peachtree when recording a sale that exceeds a
customer‘s limit?
a. Peachtree will not let you record the entire sale.
b. Peachtree displays a warning message.
c. Peachtree requires the customer to immediately pay the amount over the credit
limit before the sale can be recorded.
d. Peachtree does nothing.
6. Using the direct write-off method for uncollectible expenses results in which of the
following entries?
a. debit to Uncollectible Accounts Expense; credit to Cash
b. debit to Accounts Receivable; credit to Uncollectible Accounts
c. debit to Uncollectible Accounts Expense; credit to Accounts Receivable
d. debit to Uncollectible Accounts Expense; credit to Allowance for Doubtful
Accounts

MATCHING QUESTIONS:
A. accounts receivable ledger
B. alert
C. contra account
D. Customer Ledgers report
E. allowance method
F. uncollectible
1. A subsidiary ledger that contains detailed information regarding the transactions of

credit customers
2. The accounts receivable report that shows the transactions for credit customers and the
balances they owe
3. Displayed whenever a customer‘s balance exceeds his or her credit limit
4. An account with a balance that is the opposite of the normal balance of that account
type
5. A sale made on account for which the money cannot be obtained
6. The method used when uncollectible accounts expense is estimated at the end of each
accounting period and recorded by means of an adjusting entry

Purpose:
To be able to create a sample Peachtree company file.
Exercises:
1. Start the Peachtree application.
2. If the Peachtree Accounting window appears, you can create a new company by clicking
the ―Create a new company‖ button (―Set up a new company‖- 2003:2004). If you
already have a company file open, you can select ―File| New Company…‖ from the
Menu Bar. If you have another company file open, Peachtree will close that company
file before creating a new company file.
3. Read the information in the introduction screen, and click the ―Next >‖ button to
continue.
4. Fill-in the information for your company file as shown in the screen shot below:

5. Click the ―Next >‖ button to continue.
6. Select the ―Use a sample business type…‖ option, if using Peachtree 2007:2012. If using
Peachtree 2004 through 2006, select the ―Set up a new company using an extensive chart
of accounts from one of many sample companies‖ option.
8. Select the ―Sales & Service Company‖ option from the scrollable list of company
choices.
10. Select ―Accrual‖ as the accounting method, and then click ―Next >‖ to continue.
11. Select ―Real Time‖ as your posting method.
13. Select the ―12 monthly accounting periods‖ option, and click ―Next >‖ to continue.

Exercises (cont.):
14. For the next screen, select the answers using the drop-downs as given below. For Peachtree 2007:2012,
you will only need to answer the first question shown:
When do you want your first fiscal year to start? January 2011 What is the first month you will be
entering data? February 2011 What is the first year you will be entering payroll? 2011
16. If using Peachtree 2008:2012, then click the ―Finish‖ button. If using Peachtree 2004:2006, review the
defaults that Peachtree set up for your company file and then click ―Next >‖ to continue. You can then
click the ―Finish‖ button.

Purpose:
To be able to effectively use the chart of accounts, and to be able to create General Journal Entries.
Exercises:
2. Open the ―Fakeco, Inc.‖ company file from the previous exercise.
3. Select ―Maintain| Default Information| General Ledger…‖ from the Menu Bar.
4. Check to ensure that the ―Rounding Account‖ is set to ―39005,‖ the ―Retained Earnings‖ account.
5. Click ―OK‖ in the ―General Ledger Defaults‖ window to close it.
6. Select ―Reports & Forms (―Reports‖ in 2003:2007)| General Ledger…‖ from the Menu Bar.
7. Click the ―Chart of Accounts‖ report to make sure it is selected, and then click the ―Display‖ (―Preview‖
in 2003:2007) button at the top of the ―Select a Report or Form‖ (―Select a Report‖ in 2003:2007)
window. In 2003:2007, you will need to click the ―OK‖ button within in the ―Chart of Accounts‖ dialog
box that appears.
8. Click the ―Close‖ button within the report when you are finished reviewing the report data.
9. Click the ―Close‖ button in the ―Select a Report or Form‖ (―Select a Report‖ in 2003:2007) window.
11. Select account ―10200‖ from the ―Account ID‖ lookup list.
12. Change the description to ―Master Checking Account.‖
13. Click the ―Save‖ button.
15. Change the description to ―Cost of Services Sold.‖

18. Change the description to ―Photostat Expense.‖
21. Change the description to ―Printing and Copying Expense.‖
24. Click the ―Delete‖ button, and click ―Yes‖ to delete the record.
31. Click the ―New‖ button.
32. Enter the ―Account ID‖ of ―40200-C.‖
33. Enter a ―Description‖ of ―Consultation- Commercial.‖
34. Use the ―Account Type‖ drop-down to select ―Income.‖
37. Enter the ―Account ID‖ of ―40200-P.‖
38. Enter a ―Description‖ of ―Consultation- Personal.‖

43. Enter a ―Description‖ of ―Design- Commercial.‖
48. Enter a ―Description‖ of ―Design- Personal.‖
53. Enter a ―Description‖ of ―Product Sales- Commercial.‖
58. Enter a ―Description‖ of ―Product Sales- Personal.‖

61. Click the ―Account Beginning Balances‖ button (The ―Beginning Balances‖ button on the ―General‖ tab
in 2003:2007) to bring up the ―Select Period‖ window.
62. Scroll through the list and select ―From 1/1/11 through 1/31/11.‖
63. Click ―OK.‖
64. Use the chart below to enter the amounts listed for the selected accounts under the appropriate column.
Liabilities,
Assets, Equity,
Expenses Income
Account ID Description Account Type
10000 Petty Cash Cash 500.00
10200 Master Checking Account 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
Continued…

Liabilities,
Assets, Equity,
Expenses Income
Account ID Description Account Type
17000 Accumulated Depreciation- Accumulated Depreciation 200.00

Furniture

Equipment

Automobiles
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 Consultation- Commercial Income 4890.92
40400-C Design- Commercial Income 2553.68
50000 Cost of Services Sold Cost of Sales 1877.52
65000 Employee Benefits Program Expenses 30.54

Expense
72000 Payroll Tax Expense Expenses 1581.00

77500 Wages Expense Expenses 5529.04
65. When you have finished, the ―Trial Balance‖ should be zero.
66. Click the ―OK‖ button within the ―Chart of Accounts Beginning Balances‖ window.
67. Click the ―Close‖ button to close the ―Maintain Chart of Accounts‖ window.
68. Select ―Tasks| General Journal Entry…‖ from the Menu Bar.
69. Enter ―02/12/11‖ in the ―Date‖ field.
70. Enter ―Petty Cash‖ in the ―Reference‖ field.
71. In the first ―Account No.‖ field, type ―71000.‖
72. Enter a ―Description‖ of ―Bought paper.‖
73. Under the ―Debit‖ column, type ―18.00.‖
74. In the next line, under the ―Account No.‖ column, type ―68000.‖
75. Enter a ―Description‖ of ―Steam cleaning of office carpet.‖
76. Under the ―Debit‖ column, type ―50.00.‖
77. In the next line, under the ―Account No.‖ column, type ―10000.‖
78. Enter a ―Description‖ of ―Petty Cash expenses through 2/12/11.‖
79. Under the ―Credit‖ column, type ―68.00.‖
80. Click ―Save‖ to save the entry, and click ―Yes,‖ if needed.
81. Click ―Close‖ to close the ―General Journal Entry‖ window.

Purpose:
To be able to effectively set up our companies to use the vendor and payable features.
Exercises:
3. Select ―Maintain| Default Information| Vendors…‖ from the Menu Bar.
4. Change the ―Credit Limit‖ to ―3000.00.‖
5. Enter an ―Expense Account‖ (―Purchase Acct.‖ in Peachtree 2003:2006) of ―60000.‖
7. Select the ―Invoice date‖ option under the ―Age Invoices by‖ section.
8. Click ―OK.‖
10. Type ―03mitrea‖ in the ―Vendor ID‖ field.
11. Type ―State of Michigan‖ in the ―Name‖ field.
12. Enter the following mailing address: 550 Michigan Ave.
Lansing, MI 48901
13. If using Peachtree 2009:2012, enter ―23100‖ into the ―Expense Account:‖ field on the ―General‖ tab. If
using 2003:2008, instead click the ―Purchase Defaults‖ tab, and then enter an ―Expense Account‖
(―Purchase Acct‖ in Peachtree 2003:2006) of ―23100.‖
14. If using Peachtree 2009:2012, click the ―Purchase Info‖ tab, and then use the drop-down in the ―Terms
and Credit‖ section to select ―Customize terms for this vendor.‖ If using 2003:2008, first click the

―Terms‖ button, and then click the ―Use Standard Terms‖ check box to remove the check from the
checkbox.
15. Select the ―Due on day of next month‖ (―Due on Day of Month‖ in 2003:2008) option button.
16. Enter ―20‖ in the ―Due on the next month.‖
17. Enter ―0‖ on the ―Discount in days.‖
18. Enter ―0.0‖ in the ―Discount %‖ field.
19. Enter a ―Credit Limit‖ of ―0.‖
20. If using Peachtree 2003:2008, click ―OK‖ to close the ―Vendor Terms‖ window.
21. Click the ―Save‖ button at the top of the ―Maintain Vendors‖ window, and then click the ―New‖
button.
22. Enter these vendors using the steps above. Remember to click ―Save‖ and then ―New‖ between each!
Vendor 1 Vendor 2 Vendor 3
Vendor ID 02bnl 01comp 01paper
Name Board of Water & Light Computers N‘ More Paper Image
Address 450 Water Way 160 Pine St. 345 Cedar St.
Lansing, MI 48910 Lansing, MI 48910 Holt, MI 48842
Expense 78000 60000 76000
Acct.
Terms Net due in 15 days. No discount or Standard Terms Standard Terms

credit.

Exercises (cont.):
23. Continue to enter these vendors using the steps on the previous page. Remember to click ―Save‖ and
then ―New‖ between each!
Vendor 4 Vendor 5 Vendor 6
Vendor ID 03bank 01rent 01things
Name Bank of Michigan Smith Properties Marketing Designs
Address 450 Michigan Ave. 1234 Shadyside St. Grand 647 Larch St.
Rapids, MI 48867
Lansing, MI 48910 Lansing, MI 48912
Purchase 62000 74000 12000
Acct.
Terms Net 30. No discounts or credits. Due at end of month. No Standard Terms
discounts or credits.
24. If using Peachtree 2009:2012, click the ―History‖ tab and then click the ―Vendor Beginning Balances‖
button. If using 2003:2008, click the ―General‖ tab and then click the ―Beginning Balances‖ arrow
button.
25. In the ―Vendor Beginning Balances‖ window, click the ―Vendor Balances‖ tab.
26. Double-click on ―Paper Image‖ to view the ―Purchases from: 01paper Paper Image‖ tab.
27. In the first row under the ―Invoice Number‖ column, type ―1000.‖
28. Under the ―Date‖ column, type ―1/17/11.‖
29. Under the ―Amount‖ column, type ―30.00.‖
30. Under the ―A/P Account,‖ type ―20000.‖
31. Now enter the following invoices into the following rows:

Invoice Number Date Amount A/P Account
1110 1/17/11 30.00 20000
1950 1/27/11 30.00 20000
32. Click ―Save‖ within the ―Vendor Beginning Balances‖ window.
33. Click the ―Vendor Balances‖ tab.
34. Double-click on the ―Computers N‟ More‖ entry, and the enter the following vendor bills:
Invoice Number Date Amount A/P Account
9876 12/6/10 8917.00 20000
35. Click ―Save‖ in the ―Vendor Beginning Balances‖ window.
36. Click ―Close‖ in the ―Vendor Beginning Balances‖ window.
37. Click ―Close‖ within the ―Maintain Vendors‖ window.

Purpose:
To be able to effectively set up inventory and set beginning balances for our
inventory.
Exercises:
3. Select ―Maintain| Default Information| Inventory Items…‖ from the Menu

Bar.
4. Click the ―Ordering‖ tab.
5. For the ―Sales Invoice/Receipt Out of Stock Warning Message,‖ select

―Warn if inventory item is out of stock based on quantity on hand.‖
6. For the ―Sales Order Out of Stock Warning Message,‖ select ―Warn if
inventory item is out of stock based on quantity on hand.‖
7. Click the ―GL Accts/Costing‖ tab.
8. Enter the following GL accounts for the inventory items:
Item Class GL Sales/ Inc GL Invtry/Wage GL Cost Sales Costing
Stock Item 40600-C 12000 50500 FIFO
Master Stock Item 40600-C 12000 50500 FIFO
Non-stock Item 40600-C 60000 51000
Copyright  November 2018 Seamless College

Page 188
Service 40000 77500 50000
Labor 40000 77500 57000
Assembly 40000 12000 50000 FIFO
Activity 40000
Charge Item 41000
9. Click the ―Taxes/Shipping‖ tab.
10. Enter the following for the first four lines of the ―Item Tax Type‖ tab:
Field Description Tax
1 Taxable Checked
2 Non-taxable Sales Not checked
3 Non-taxable Labor Not checked
4 Out-of-State Sales Not checked
11. Click the ―Price Levels‖ tab.
12. For the ―Level Name‖ of ―Price Level 1,‖ type ―List Price.‖
13. For the ―Level Name‖ of ―Price Level 2,‖ type ―Residential.‖
14. For the ―Level Name‖ of ―Price Level 3,‖ type ―Commercial.‖
Copyright  November 2018 Seamless College

Page 189
15. Click the ―Edit‖ button for ―List Price.‖
16. In the ―Default Price Level Calculation‖ dialog box, type ―Use Last Cost and Increase by Percent,
50%, Round Price Specific Cent, .99.‖
17. Click ―OK.‖
18. Click the ―Edit‖ button for ―Residential.‖
19. In the ―Default Price Level Calculation‖ dialog box, type ―Use List Price and Decrease by Percent,
10%, Round Price No Rounding.‖
20. Click ―OK.‖
21. Click the ―Edit‖ button for ―Commercial.‖
22. In the ―Default Price Level Calculation‖ dialog box, type ―Use List Price and Decrease by Percent,
25%, Round Price No Rounding.‖
23. Click ―OK.‖
24. Click ―OK‖ in the ―Inventory Item Defaults‖ window.
25. Select ―Maintain| Inventory Items…‖ from the Menu Bar.
26. Enter an ―Item ID‖ of ―01netfun.‖
27. Enter a ―Description‖ of ―Networking Fundamentals.‖
28. Select ―Stock Item‖ from the ―Item Class‖ drop-down.
29. Click the ―Subject to Commission‖ check box.
30. Use the ―Description:‖ drop-down to select ―for Sales.‖
31. In the box to the right, type ―Networking Fundamentals: An Introduction to Computer Networks.‖
32. Use the ―Description:‖ drop-down to select ―for Purchases.‖
33. In the box to the right, type ―Networking Fundamentals, ISBN 0012345678.‖
34. Use the GL account lookup lists to select ―40600-C‖ for the ―GL Sales Account.‖

35. Use the GL account lookup lists to select ―12000‖ for the ―GL Inventory Acct.‖
36. Use the GL account lookup lists to select ―50500‖ for the ―GL Cost of Sales Acct.‖
37. Enter ―Each‖ in the ―Stocking U/M‖ field.
38. Type ―5‖ for both the ―Minimum Stock‖ and ―Reorder Quantity.‖
39. Select ―01comp‖ from the ―Preferred Vendor ID‖ lookup list.
40. Click ―Save.‖
41. Click ―New.‖
42. Enter the following ―Stock Item‖ to your inventory, using the steps above and the information below:
Field Value Field Value
Item ID 01netsec Description Network Security
Item Class Stock Item Subject to Commission Checked
Description for Sales Network Security Description for Purchases Network Security,
ISBN 0987654320
Item Tax Type 1 Costing Method FIFO
GL Sales Acct 40600-C GL Inventory Acct 12000
GL Cost of Sales Acct 50500 Stocking U/M Each
Minimum Stock &5 Preferred Vendor 01comp

Reorder Number

45. Now set up a new service item by typing ―02consult‖ as the ―Item ID.‖
46. Type ―Consultation‖ as the ―Description.‖
47. Select ―Service‖ from the ―Item Class‖ drop-down.
48. Do not select the ―Subject to Commission‖ check box.
49. Use the ―Description:‖ drop-down to select ―for Sales.‖
50. In the box to the right, type ―Computer Consulting Services.‖
51. Type ―35‖ as the ―List Price.‖
52. Click the gray arrow next to the ―List Price‖ to open up the ―Multiple Price Levels‖ dialog box. Click
the ―Recalc‖ button in this screen to recalculate the price levels for this service. Click ―OK‖ to return to
the ―Maintain Inventory Items‖ screen.
53. Select an ―Item Tax Type‖ of ―Non-taxable Labor.‖
54. Change the ―GL Sales Account‖ to ―40200-C.‖
55. Change the ―GL Salary/Wages Account‖ to ―77500.‖
56. Change the ―GL Cost of Sales Acct‖ to ―50000.‖
57. For the ―Stocking U/M:,‖ type ―Hour.‖
60. Enter these service items, using the steps above:
Field Service Item #1 Service Item #2

Item ID 02network 02train
Description Networking Computer Training
Item Class Service Service
Description for Sales Network Installation and Training on Network Maintenance

Server Setup
List Price 45.00 60.00
Item Tax Type Non-taxable Labor Non-taxable Labor
GL Sales Account 40400-C 40200-C
GL Salary/Wages Acct 77500 77500
GL Cost of Sales Acct 50000 50000
Unit/Measure Hour Hour
61. Click ―New‖ to set up an assembly item.
62. Type ―03persnet‖ as the ―Item ID.‖
63. The ―Description‖ is ―Home Based Business Networking.‖
64. Select ―Assembly‖ from the ―Item Class‖ drop-down.
65. Select the ―Subject to Commission‖ check box.
66. In the ―Description for Sales,‖ type ―Home Based Business Networking Package: Includes one free copy
of „Networking Fundamentals,‟ 8 hours of network setup, and 8 hours of network training.‖
67. For the ―List Price,‖ type ―800,‖ and recalculate the prices for the other price levels.

68. Select ―Non-taxable Labor‖ from the ―Item Tax Type‖ lookup list.
69. Select ―40000‖ for the ―GL Sales Account.‖
70. Type ―12000‖ as the ―GL Inventory Acct.‖
71. Type ―50000‖ as the ―GL Cost of Sales Act.‖
72. Type ―Each‖ in the ―Unit/Measure‖ field.
73. Click the ―Bill of Materials‖ tab.
74. In the first row, under the ―Item ID‖ column, select ―01netfun.‖
75. For the ―Quantity Needed,‖ type ―1.‖
76. For the next row, under the ―Item ID‖ column, select ―02network.‖
78. For the next row, under the ―Item ID‖ column, select ―02train.‖
81. Click ―New‖ to set up a ―Master Stock Item.‖
82. Type ―04discs,‖ as the ―Item ID.‖
83. Enter ―Software Training Disc‖ as the ―Description.‖
84. For the ―Item Class,‖ select ―Master Stock item.‖
85. Click the ―Subject to Commission‖ check box.
86. In the ―Description for Sales,‖ type ―Software Training Disc.‖
87. In the ―Description for Purchases,‖ type ―Software Training Disc.‖
88. Enter ―200‖ in the ―List Price,‖ and recalculate the prices for the price levels.
89. For the ―Stocking U/M,‖ type ―Each.‖

90. For the ―Preferred Vendor,‖ select ―01comp.‖
91. Click the ―Item Attributes‖ tab.
92. In the ―Primary Attributes‖ section, click into the ―Name:‖ text box and type ―Program.‖
93. In the ―ID‖ field below it type ―acc,‖ and then type ―Access‖ in the ―Description‖ field.
94. Click the ―Add‖ button.
95. In the ―ID‖ field type ―word,‖ and then type ―Word‖ in the ―Description‖ field.
97. In the ―ID‖ field type ―xl,‖ and then type ―Excel‖ in the ―Description‖ field.
99. In the ―Secondary Attributes‖ section, click into the ―Name:‖ text box and type ―Version.‖
100. In the ―ID‖ field type ―2000,‖ and then type ―‟2000‖ in the ―Description‖ field.
102. In the ―ID‖ field type ―XP,‖ and then type ―XP‖ in the ―Description‖ field.
104. In the ―ID‖ field type ―2003,‖ and then type ―2003‖ in the ―Description‖ field.
108. Enter inventory beginning balances. To do this, click the ―General‖ tab. Then click the ―Beginning
Balances‖ arrow button.
(cont.)

109. Select ―01netfun‖ from the list of inventory items.
110. Enter ―10.00‖ for the ―Quantity.‖
111. Enter ―22.00‖ for the ―Unit Cost.‖
112. Click ―01netsec‖ from the list of inventory items.
113. Enter ―12‖ for the ―Quantity.‖
114. Enter ―24.00‖ for the ―Unit Cost.‖
115. Click ―OK.‖
116. Click ―Close.‖

Purpose:
To be able to effectively set up defaults for the receivables and to add new customers.
Exercises:
3. Select ―Maintain| Default Information| Customers…‖ from the Menu Bar.
4. Enter ―0‖ for the discount ―days‖ and the discount ―percentage‖ field.
5. In the ―GL Sales Account,‖ type ―40200-C.‖
6. Click the ―Finance Charges‖ tab.
7. Click the ―Charge finance charges‖ check box.
8. Enter the following:
It says: You type:
On invoices 30
Days overdue, up to 1.00
Annual interest rate 0
On balances above that 0
Minimum Finance Charge 5.00
9. Click the ―Print finance change warning message as‖ check box.
10. Click the ―Pay Methods‖ tab.

11. Enter the following pay methods in order from most frequently used to least:
Field: Payment Method:
1 Check
2 VISA
3 Cash
4 AMEX
5 MasterCard
6 Discover
12. Click ―OK‖ to set the customer defaults.
13. Next you will set up sales taxes for the company. If using Peachtree 2008:2012, follow steps 14 through
17, and then skip to step 33. If using Peachtree 2003:2007, skip to step 18, and then continue.
14. If using Peachtree 2008:2012, select ―Maintain| Sales Taxes…‖ from the Menu Bar. In the ―Set Up Sales
Taxes‖ window, select the option button for ―Set up a new sales tax.‖ Then click the ―Next >‖ button.
15. In the next screen, enter ―6‖ into the ―What is the total rate that you will charge?‖ text box. Then click the
―Next >‖ button to continue.

16. In the next screen, enter ―MITAX‖ as the ―Sales tax agency ID.‖ Enter ―State of Michigan‖ into the ―Sales
tax agency name:‖ text box. Select ―03mitrea‖ from the ―Which vendor do you send the taxes you‟ve
collected to?‖ drop-down. Then enter ―6‖ into the ―Rate:‖ text box. Then select account ―23100‖ from the
―Select an account to track sales taxes:‖ drop-down. Click the ―Next >‖ button to continue.
17. In the next screen, enter ―TAXCODE‖ into the ―Sales tax ID:‖ text box. Then enter ―Michigan Sales Tax‖
into the ―Sales tax name:‖ text box. Select ―Yes‖ from the ―Do you charge sales tax on freight?‖ drop-
down. Then click the ―Finish‖ button to complete the sales tax setup. You may then close the window by
clicking the ―Cancel‖ button.
18. If using Peachtree 2003:2007, select ―Maintain| Sales Taxes| Sales Tax Authorities…‖ from the Menu Bar.
19. Type ―MITAX‖ in the ―ID:‖ field.
20. In the ―Description‖ fields, type ―Sales Tax.‖
21. Select ―03mitrea‖ from the ―Tax Payable To:‖ field.
22. Select account ―23100‖ from the ―Sales Tax Payable GL Account‖ lookup list.
23. Click the ―Single Tax Rate‖ option button, and type ―6.0‖ in the ―%‖ text box.
24. Click ―Save‖ to save the tax authority.
26. Select ―Maintain| Sales Taxes| Sales Tax Codes…‖ from the Menu Bar.
27. Type ―TAXCODE‖ in the ―Sales Tax Code‖ field.
28. Check the ―Tax Freight‖ check box.
29. For the ―Description‖ type ―Michigan Sales Tax.‖
30. Right-click in the first row under ―ID,‖ and select ―MITAX‖ from the list.
31. Click ―Save‖ to save the code.
32. Click ―Close‖ to close the window.
33. Select ―Maintain| Customers/Prospects…‖ from the Menu Bar.

34. Enter ―shaws‖ in the ―Customer ID‖ field.
35. Enter ―Sally Shaw‖ in the ―Name‖ field.
36. Enter ―Sally Shaw‖ in the ―Contact‖ field, if available. In 2012, enter this into the ―Contacts‖ tab.
37. If using Peachtree 2003:2007, make sure that the drop-down says ―Bill to Address.‖ If using Peachtree
2008:2012, enter this address info into the billing address fields:
150 Grand Ave. Apt 4B
Lansing, MI 48843
38. Select the ―TAXCODE‖ tax from the ―Sales Tax‖ field‟s drop-down.
39. In the ―Customer Type‖ field, type ―pers.‖
40. If using Peachtree 2008:2012, click the ―Sales Info‖ tab. If using Peachtree 203:2007, click the ―Sales
Defaults‖ tab.
41. Enter ―40200-P‖ as the ―GL Sales Acct‖ field‟s value.
42. Select ―UPS Ground‖ from the ―Ship Via:‖ drop-down.
43. For the ―Pricing Level,‖ select ―Residential.‖
44. Click ―Save‖ to save the record.
45. Click ―New‖ to create a new customer.
46. Create the customers below, using the steps above, and the information that is shown on the following
page:
(cont.)

Customer #1 Customer #2 Customer #3
Customer ID sheldon holiday smithb
Name Sheldon Securities Holiday Hotel Bob Smith
Contact Sam Sheldon Brian Cook Bob Smith
Address 100 Michigan Ave. 350 Abbott Road 150 Shiawassee St.
Lansing, MI 48912 East Lansing, MI 48823 Lansing, MI 48910
Sales Tax TAXCODE TAXCODE TAXCODE
Customer Type comm comm pers
GL Sales Account 40400-C 40200-C 40200-P
Ship Via UPS Ground UPS Ground UPS Ground
Pricing Level Commercial Commercial Residential
Terms Standard Standard Standard
48. If using Peachtree 2008:2012, click the ―History‖ tab. If using Peachtree 2003:2007, click the ―General‖
tab.
49. If using Peachtree 2008:2012, click the ―Customer Beginning Balances‖ button. If using Peachtree
2003:2007, click the ―Beginning Balances‖ arrow button in the lower right corner of the ―General‖ tab.
50. On the ―Customer Balances‖ tab, double-click on ―Sheldon Securities.‖
51. On the ―Invoice for: sheldon Sheldon Securities‖ tab, click into the first row under the ―Invoice Number‖
column, and type ―21009.‖
52. Enter the ―Date‖ as ―10/8/10.‖
53. Enter the ―Amount‖ as ―12705.44.‖

54. Click into the second row and enter these two other invoices for sheldon:
Invoice Number Date Amount A/R Account
21056 11/18/10 1950.00 11000
21077 12/18/10 1892.00 11000
55. Click ―Save‖ when you are done.

Purpose:
To be able to effectively set up the payroll information, employee defaults, and employees.
Exercises:
3. Select ―Maintain| Default Information| Payroll Setup Wizard…‖ from the Menu Bar.
4. Click ―Next >>‖ to continue. If using Peachtree 2004:2005, click ―Next>>‖ once again. If using
Peachtree 2006:2008, click the ―Payroll Setup Wizard‖ hyperlink. Select the ―‖Check this box if you have
already ordered the service‖ checkbox and then click ―Next >‖ to continue. If using Peachtree
2009:2012, select the ―Do It Yourself In-House‖ option, and then click the ―Next >‖ button. In the next
screen, select the ―Tax Update Service‖ option, and check the ―I have already ordered…‖ checkbox. Then
click ―Next >‖ to continue. Click ―No‖ in the warning message box that appears, as this is only a sample
company and you do not need to register the sample company. Then click the ―Next >‖ button to continue.
5. For the ―State:‖ select ―MI.‖
6. For Peachtree 2003:2008, for the ―Locality,‖ leave it blank. Do not fill in the ―Enter the Locality Tax
Rate‖
field either.
7. For the unemployment percent, type ―3.‖
8. Select the ―No‖ option for the ―Do you want to record employee meals and tips?‖ question.
10. If using Peachtree 2005 or older, leave the settings as they are, and click ―Next >‖ to continue.
11. In all versions of Peachtree, click ―Next >‖ once to continue. If using Peachtree 2009:2012, check the
checkboxes for ―Vacation‖ and ―Sick Time,‖ and then click the ―Next >‖ button to continue.
12. In Peachtree 2003:2008, select ―401(k) plan not offered.‖ and then click ―Next>>‖ to continue.
13. In Peachtree 2009:2012, enter ―160‖ for the hours of vacation given. Then select the ―Accrued over each
pay period‖ option. In Peachtree 2003:2005, select ―Vacation time accrues each payroll period‖
(―Accrues‖ in Peachtree 2006:2008). Then enter ―160‖ in the ―Number of hours to be accrued each year‖
field.
14. In Peachtree 2009:2012, select the ―Yes‖ option to allow vacation time to carry over. Then click the ―Next
>‖ button to continue. In Peachtree 2003:2008, check the ―Balance of vacation hours carries forward to the
new year‖ checkbox (―Remaining vacation hours carry over to the new year‖ in 2006:2008).
15. In Peachtree 2005 and older, click ―Next>>‖ to continue.
16. In Peachtree 2009:2012, enter ―40‖ for the hours of sick time given. Then select the ―Accrued over each
pay period‖ option. In Peachtree 2003:2005, select ―Sick time accrues each payroll period‖ (―Accrues‖ in
2006:2012). Then type ―40‖ in the ―Number of hours to be accrued each year‖ field.
17. If using Peachtree 2009:2012, click ―Next >‖ twice more, and then click the ―Finish‖ button. If using
Peachtree 2003:2008, click ―Next >‖ to continue, and then click ―Finish.‖
18. If using Peachtree 2003:2008, close the help file that appears.
19. Select ―Maintain| Employees/Sales Reps…‖ from the Menu Bar.
20. Type ―brownellc‖ in the ―Employee ID‖ field.
21. Enter ―Cathy Brownell‖ in the ―Name‖ field, using the ―First‖ and ―Last‖ name fields.
(cont.)
22. Click the ―Employee‖ option button that appears next to the employee‟s name.
23. Enter the employee‟s address as follows: 111 Cedar St.
Holt, MI 48842
24. Enter a ―Social Security #‖ of ―123456789.‖
25. Enter date ―Hired‖ of ―04/02/01.‖
26. Click the ―Withholding Info‖ tab and then enter the following information:
Payroll Field Filing Status Allow Additional Withholding State/Locality
Federal Married 1 0.00
State Married/Jointly 1 0.00 MI
Local Not Required 0 0.00
27. Click the ―Pay Info‖ tab.
28. Select ―Salary‖ from the ―Pay Method‖ drop-down.
29. Select ―Bi-weekly‖ from the ―Frequency‖ drop-down.
30. Enter ―1500.00‖ in the first ―Salary Pay Rate‖ field.
31. Click ―Save‖ to save her information.
32. Click ―New‖ and click the ―General‖ tab to bring up a new employee screen.
33. Using the steps above as a guide, enter the following three employee records:
Employee #1 Employee #2 Employee #3
Employee ID johnsond blackb whitew
Name David Johnson Betty Black William White
112
Employee/Sales Both Both Both
Rep/Both
Address 500 Larch St. 678 Grand River Ave. 240 Pinecrest Dr.
Lansing, MI 48912 Okemos, MI 48853 Mason, MI 48934
Social Security # 111-11-1111 222-22-2222 333-33-3333
Hired Date 8/2/98 9/1/99 11/7/00
Federal Filing Status Married Single Single
Federal Allow 2 1 0
State Filing Status Married/Jointly Single Single
State Allow 0 0 0
State/Locality MI MI MI
Local Filing Status Not Required Not Required Not Required
Pay Method Salary Hourly- Hours per Pay Hourly- Hours per Pay
Period Period
Frequency Bi-weekly Weekly Weekly
Salary Rate 1200.00
Regular Hourly Rate 15.00 15.00
Overtime Hourly Rate 22.50 22.50
34. After saving the new employee records, select ―brownellc‖ from the ―Employee ID‖ list.
113
35. Click the ―General‖ tab. If using Peachtree 2009:2012, click the ―Employee Beginning Balances‖ button.
If using Peachtree 2003:2008, click the ―Beginning Balances‖ arrow button in the lower right corner.
36. In Column ―1,‖ type ―1/31/11.‖
37. Enter the following numbers underneath the column labeled ―1/31/11‖:
Field Amount
Gross 3000.00
Fed_Income -320.76
Soc_Sec -186.00
Medicare -43.50
State -124.70
38. Click ―Save‖ in the ―Employee Beginning Balances‖ window.
39. Select ―johnsond‖ from the ―Employee ID‖ drop-down, and enter a date of ―1/31/11‖ for column ―1.‖
40. Enter the numbers below under column 1.
Field Amount
Gross 2400
Fed_Income -184.96
Soc_Sec -148.80
Medicare -34.80
State -95.76
41. Click ―Save‖ when you are finished.
114
42. Select ―blackb‖ from the ―Employee ID‖ drop-down, and enter in a date of ―1/31/11‖ for column ―1.‖
Field Amount
Gross 1200
Fed_Income -139.56
Soc_Sec -74.40
Medicare -17.40
State -55.78
45. Select ―whitew‖ from the ―Employee ID‖ drop-down, and enter in a date of ―1/31/11‖ for column ―1.‖
Field Amount
Gross 1200
Fed_Income -130.56
Soc_Sec -74.40
Medicare -17.40
State -52.18
115
48. Click ―Close‖ to return to the ―Maintain Employees/Sales Reps‖ screen.
49. We have just hired two new employees who will work with time ticket hours. We will create the new
records now. Click the ―New‖ button to start. Remember to click the ―Save‖ button, and then click the
―New‖ between each record.
Employee #1 Employee #2
Employee ID close jimenezc
Name Emily Clos Christine Jimenez
Employee/Sales Both Both

Rep/Both
Address 333 Edgewood Blvd. 655 Willoughby Rd.
Lansing, MI 48842 Holt, MI 48842
Social Security # 444-44-4444 555-55-5555
Hired Date 2/1/11 2/1/11
Federal Filing Status Married Single
Federal Allow 2 1
State Filing Status Married/Jointly Single
State Allow 0 0
State/Locality MI MI
Local Filing Status Not Required Not Required
Pay Method Hourly- Time Ticket Hours Hourly- Time Ticket

Hours
114
Hourly Billing Rate 50.00 45.00
Frequency Weekly Weekly
Regular Hourly Rate 16.00 13.00
Overtime Hourly Rate 24.00 20.50
50. Click ―Close‖ when you are finished entering the two new time ticket employees.
115
Purpose:
To be able to effectively set up the items needed for time and billing activities.
Exercises:
3. Select ―Maintain| Inventory Items…‖ from the Menu Bar.
4. Enter the following ―Activity Items.‖ Remember to click ―Save‖ and click ―New‖ between each record.
Also, you will not automatically recalculate each price level, but will instead enter them by hand. Click the
gray arrow next to the ―Billing Rate #1‖ box to bring up that screen for entry when needed.
Activity Item #1 Activity Item #2 Activity Item #3
Item ID 05trainc 05trainp 05admin
Description Computer Training- Computer Training- Administrative Tasks

Commercial Residential
Item Class Activity Item Activity Item Activity Item
Description for Sales Computer Training for Computer Training for Administrative Tasks
Commercial Clients Residential Clients
List Price 45 45 0
Residential 0 43.50 0
Commercial 42.25 0 0
GL Income Acct. 40200-C 40200-P 40000
116
Item Tax Type Non-Taxable Labor Non-Taxable Labor Non-Taxable Labor
Stocking U/M Hour Hour Hour
5. Click ―New.‖ Now enter the following ―Charge Items.‖ You will not set any pricing levels for these items.
They will be only set at the list price. Remember to click ―Save‖ and click ―New‖ between each. You can
click ―Close‖ when you are finished.
Charge Item #1 Charge Item #2 Charge Item #3
Item ID 06copy 06fax 06park
Description Photocopies Faxes Parking
Item Class Charge Item Charge Item Charge Item
Description for Sales Photocopies Faxes Parking
List Price .13 5.00 10.00
GL Income Acct 41000 41000 41000
Item Tax Type Taxable Taxable Non-taxable Sales
Stocking U/M Each Each Each
117
Purpose:
To create purchase orders, take payments, take vendor credits, and write checks.
Exercises:
4. Select ―01comp‖ from the ―Vendor ID‖ lookup list.
5. Enter a ―Date‖ of ―2/11/11.‖
6. Enter a ―PO No.‖ of ―1001.‖
7. In the line item area, type ―5‖ under quantity in the first row.
8. In the ―Description‖ field, type ―Mouse Pads.‖
9. Enter a ―GL Account‖ of ―71000.‖
10. Enter a ―Unit Price‖ of ―12.50.‖
11. Click ―Save‖ to save the purchase order. Then click the ―New‖ button.
12. Now we will enter a drop-shipment in the same window. Select ―01comp‖ as the ―Vendor ID.‖
13. Enter ―2/12/11‖ as the ―Date.‖
14. Leave ―PO#‖ 1002.
15. Click the ―Drop Ship‖ checkbox to display the ―Customer ID:‖ drop-down.
16. If using Peachtree 2003, click the ―Drop Ship‖ checkbox in the ―Ship to Address‖ window.
17. Select ―sheldon‖ from the ―Customer ID‖ lookup list.
18. Select the ―Bill To‖ address from the drop-down that appears by the ―Ship To:‖ field.
118
19. In the line item area, enter a ―Quantity‖ of ―5‖ in the first row.
20. Select an ―Item‖ of ―01netfun‖ from the item lookup list.
21. Click ―Save‖ to save the drop shipment.
22. Click ―Close‖ to close the ―Purchase Orders‖ window.
23. Select ―Tasks| Purchases/Receive Inventory…‖ from the Menu Bar.
24. Select ―01paper‖ from the ―Vendor ID‖ drop-down.
26. Type ―5342‖ in the ―Invoice No.‖ field.
27. Enter the following items in the line items area of the form:
Description Amount
Printing of Manuals 543.45
Binding 145.00
Setup and Press 365.71
28. Click ―Save‖ to save the bill.
29. Select ―01rent‖ from the ―Vendor ID‖ drop-down
30. Enter a ―Date‖ of ―2/20/11.‖
31. In the first line item, type ―Rent‖ in the ―Description‖ column, and ―1700.00‖ in the ―Amount‖ column.
32. Click the ―Recur‖ button at the top of the screen.
33. Type ―11‖ in the ―Number of Times‖ (―End after‖ in 2009:2012) field, and click the ―Monthly‖ recurrence
option.
(cont.)
119
Exercises (cont.):
34. Type ―rent-02‖ in the ―Begin with #‖ field.
35. Click ―OK‖ to save this bill and automatically generate another in the future every month for 11 months.
36. Now we will ―receive‖ the drop shipment. Let‟s pretend we were sent the invoice number ―#10232‖ from
―Computers N‟ More.‖ Click the ―New‖ button to continue and clear the screen, if needed.
39. Enter ―10232‖ in the ―Invoice #‖ field.
40. Select purchase order # 1002 from the ―Apply to Purchase Order #‖ drop-down.
41. Enter ―5‖ in the ―Received‖ column.
42. Click ―Save‖ to save the transaction.
43. Click ―Close‖ to close the ―Purchases/Receive Inventory‖ screen.
44. Select ―Tasks| Vendor Credit Memos…‖ from the Menu Bar.
46. Type ―2/22/11‖ as the ―Date.‖
47. Type ―CM101‖ in the ―Credit No.‖ field.
48. Select the ―Apply to Purchases‖ tab.
49. Enter ―1‖ for the ―Quantity.‖
50. Select ―01netfun‖ from the ―Item‖ lookup list.
51. Click the ―Terms‖ gray arrow button (at the right end of the ―Terms‖ above the list item area).
52. Enter a ―0.0‖ for the ―Discount Amount.‖
53. Click ―OK.‖
54. Back in the ―Vendor Credit Memo‖ window, click ―Save.‖
120
56. Pay bills by selecting ―Tasks| Payments…‖ from the Menu Bar.
57. Select ―Master Checking Account‖ as the cash account to use for this transaction.
58. Enter a ―Vendor ID‖ of ―01comp.‖
59. Assuming that we already wrote the check, enter a ―Check Number‖ of ―3285.‖
60. Enter a ―Date‖ of ―2/24/11‖
61. Click the ―Pay‖ checkbox for invoices ―9876‖ and ―10232.‖
63. Enter a ―Vendor ID‖ of ―01paper.‖
64. Assuming that we already wrote the check, enter a ―Check Number‖ of ―3286.‖
65. Enter a ―Date‖ of ―2/24/11‖
66. Click the ―Pay‖ checkbox for invoices ―1000‖ and ―1110‖ and ―1950.‖
68. Click ―Close‖ to leave the ―Payments‖ window.
69. To enter a check written by hand, select ―Tasks| Write Checks…‖ from the Menu Bar.
70. In the ―Pay to the Order of‖ field, type ―Holt Pizzeria.‖
71. Enter a ―Check Number‖ of ―3284.‖
72. Enter a ―Date‖ of ―2/18/11.‖
73. Enter a ―$‖ amount of ―32.98.‖
74. Use the ―Expense Account‖ lookup list to select account ―70500.‖
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EXERCISES-
Working with Inventory
Purpose:
To make inventory adjustments and change item prices.
Exercises:
3. Select ―Tasks| Inventory Adjustments…‖ from the Menu Bar.
4. Select ―01netfun‖ for the ―Item ID.‖
5. Enter a ―Reference‖ of ―Water Damage.‖
6. Enter ―2/15/11‖ for the ―Date.‖
7. Enter ―50500‖ as the ―GL Source Acct.‖
8. Enter ―-1.00‖ in the ―Adjust Quantity By‖ field.
11. Create assembled items by selecting ―Tasks| Assemblies…‖ from the Menu Bar.
12. Select ―03persnet‖ from the ―Item ID‖ drop-down.
13. Type ―2/15/11‖ for the ―Date.‖
14. Enter ―Build- 02/15/11‖ for the ―Reference.‖
15. Select ―Build‖ for the ―Action,‖ and enter ―2‖ in the ―Qty‖ field.
18. Select ―Maintain| Item Prices…‖ from the Menu Bar.
19. For the ―Item ID‖ row, under the ―Type‖ column, select ―Range‖ from the drop-down.
©TeachUcomp, Inc. Advanced Peachtree 118

20. For the ―From‖ drop-down, select ―01netfun.‖
21. For the ―To‖ drop-down, select ―01netsec.‖
22. Click ―OK.‖
23. Clear the check boxes from the price levels displayed in the upper left corner, EXCEPT for ―List Price.‖
24. Select the ―Calculation selected below‖ option button.
25. Set the calculation to read: ―Use Last Cost and Increase by Percent 65.00 %.‖
26. Click the ―Recalc‖ button in the toolbar.
27. Clear the check mark from the ―List Price‖ check box, and place a check mark in front of the ―Residential‖
price level‟s check box.
28. Change the percentage to ―20.00‖ in your calculation, and click the ―Recalc‖ button.
29. Clear the check mark from the ―Residential‖ check box, and place a check mark in front of the
―Commercial‖ price level‟s check box.
30. Change the percentage to ―15.00‖ in your calculation, and click the ―Recalc‖ button.

Purpose:
To make quotes, sales orders, sales invoices, issue credit memos, enter receipts, take prepayments, and make
deposits.
Exercises:
4. Select ―shaws‖ from the ―Customer ID‖ lookup list.
5. Type ―2/5/11‖ in the ―Date‖ field.
6. Enter a ―Quote No.‖ of ―300.‖
7. In the line item area, type ―3.00‖ for the ―Quantity.‖
8. Select ―02consult‖ from the ―Item‖ lookup list.
11. Type ―2/8/11‖ in the ―Date‖ field.
12. Enter a ―Quote No.‖ of ―301.‖
13. In the line item area, type ―25.00‖ for the ―Quantity.‖
14. Select ―02consult‖ from the ―Item‖ lookup list.
16. Click the ―List‖ button (―Open‖ in 2003:2007) to open a quote, which we will now convert into an
invoice.
17. If needed, select ―All transaction‖ from the ―Date Range:‖ drop-down, and double-click on quote #300.
18. Click the ―Convert‖ button in the middle of the toolbar at the top of the screen.
19. Select the ―Sales/Invoice‖ option. Enter ―Invoice #‖ ―100.‖
20. Click ―OK‖ to convert the quote into an invoice.
21. Click the ―List‖ button (―Open‖ in 2003:2007).
22. Double-click on quote #301.
23. Click the ―Convert‖ button in the middle of the toolbar at the top of the screen.
24. Select the ―Sales Order‖ option. Enter ―SO #‖ ―200.‖
25. Click ―OK‖ to convert the quote into a sales order.
27. Select ―Tasks| Quotes/Sales Orders| Sales Orders…‖ from the Menu Bar to create a sales order.
28. Select ―holiday‖ from the ―Customer ID‖ lookup list.
29. Enter the ―Date‖ as ―2/8/11.‖
30. Enter ―2/8/11‖ as the ―Ship By‖ date.
31. Enter ―201‖ in the ―SO No.‖ field.
32. Type a ―Quantity‖ of ―5.‖
33. Select ―01netfun‖ as the ―Item.‖
36. Select ―Tasks| Sales/Invoicing…‖ from the Menu Bar.
37. Select ―smithb‖ from the ―Customer ID‖ lookup list.
(cont.)

Exercises (cont.):
39. Enter an ―Invoice No.‖ of ―101.‖
40. Enter a ―Quantity‖ of ―1.00‖ and and ―Item‖ of ―01netsec.‖
41. Click the ―Amount Paid at Sale‖ button. This opens the ―Receive Payment‖ window.
42. Enter ―4362‖ as the ―Reference.‖
43. Enter ―27.98‖ as the ―Receipt Amount.‖
44. Make sure that the cash account is set to ―10200.‖
45. Click ―OK‖ to record the payment at the time of sale.
47. Select ―sheldon‖ from the ―Customer ID‖ drop-down.
49. Enter ―Invoice No.‖ ―102.‖
50. Select sales order ―200‖ from the drop-down list on the ―Apply to Sales Order #‖ tab.
51. Enter ―5‖ in the ―Shipped‖ field.
53. Click ―Yes‖ to let sheldon go over their credit limit. Click ―Close‖ to exit the ―Sales/Invoicing‖ window.
54. Select ―Tasks| Credit Memos…‖ from the Menu Bar.
55. Select ―shaws‖ from the ―Customer ID‖ lookup list.
56. Enter a ―Date‖ of ―2/21/11.‖
57. Enter ―CM101‖ in the ―Credit No.‖ field.
58. Click the ―Apply to Sales‖ tab below to bring that tab forward.
59. Enter a ―Quantity‖ of ―1.00‖ and select ―04discs-word-2000‖ from the ―Item‖ lookup list.
Advanced Peachtree 120

62. Select
Exercises ―Tasks| Receipts…‖ from the Menu Bar to collect payments.
(cont.):
64. Enter ―Reference‖ ―304.‖
65. Enter ―Receipt Number‖ ―10210.‖
67. Click the ―Pay‖ check box on the ―Apply to Invoices‖ tab for all of the invoices.
69. Next, we will take a prepayment from ―smithb‖ by selecting that ID from the ―Customer ID‖ drop-down.
70. Enter the check number ―4363‖ into the ―Reference‖ field.
71. Enter ―Receipt Number‖ ―10211.‖
72. Enter ―2/10/11‖ as the date.
73. Set the ―Cash Account‖ to ―10200.‖
74. On the ―Apply to Revenues‖ tab, click the ―Prepayment‖ check box.
75. If needed, enter a GL Account of ―24400.‖
76. Enter ―200.00‖ in the ―Amount‖ field.
79. To deposit funds, select ―Tasks| Select for Deposit…‖ from the Menu Bar.
80. Select ―10200‖ as the ―Account ID.‖
81. Set ―2/12/11‖ as the ―Deposit Ticket Date.‖
82. Enter ―0212‖ as the ―Deposit Ticket ID.‖
(cont.)

Exercises (cont.):
83. Click the ―Deposit‖ check box for all of the amounts listed.

Purpose:
To be able to pay employees and create payroll fields.
Exercises:
3. Select ―Tasks| Payroll Entry…‖ from the Menu Bar.
4. Select ―Payroll Checking Account‖ from the ―Select a Cash Account‖ drop-down, and then click ―OK.‖
5. Enter ―brownellc‖ as the ―Employee ID.‖ Click ―OK‖ through the message box errors that appear. This is
only happening because we are using an unregistered tax table formula in a sample file, and Peachtree
cannot find the correct calculations.
6. Enter a ―Check Number‖ of ―1206.‖
7. Enter ―2/2/11‖ as the ―Date.‖ Click ―OK‖ through the message box errors that appear. This is only
happening because we are using an unregistered tax table formula in a sample file, and Peachtree cannot
find the correct calculations.
8. Enter ―2/2/11‖ as the ―Pay Period End.‖
9. Click ―Save‖ then ―Close.‖
10. Now we will set up a flat rate deduction for dental that deducts $15 from employee paychecks.
11. Select ―Maintain| Default Information| Employees…‖ from the Menu Bar.
12. Click on the ―Employee Fields‖ tab, and scroll down and find the first available line. Type ―Dental‖ into
the ―Field Name‖ column.
13. Select ―G/L Account‖ ―24100.‖
14. For the ―Amount,‖ type ―-15.00‖ and then click ―OK.‖
15. Now we will set up a calculated garnishment for one of our employees.
16. Select ―File| Payroll Formulas (―Payroll Tax Tables‖ in 2003:2008)| User-Maintained…‖ from the Menu
Bar.
17. Enter a ―Formula ID:‖ (―Tax ID‖ in 2003:2008) of ―GARNISH11.‖
18. Enter a ―Name:‖ (―Tax Name‖ in 2003:2008) of ―GARNISH 11.‖
19. In Peachtree 2009:2012, select ―Deduction‖ from the ―How do you classify this formula?‖ drop-down.
20. If using 2003:2008, in the box ―Government,‖ select ―Local.‖ For the ―Type,‖ select ―Deduction.‖
21. If using Peachtree 2009:2012, type the following into the ―Formula‖ text box. You can use ―Ctrl‖+―Enter‖
on your keyboard to create the necessary line breaks.
LIMIT =350; PERCENT=20;
A=ADJUSTED_GROSS+Fed_Income+Soc_Sec+MEDICARE+St_Income; B=A*PERCENT%;
ANSWER=-MAX_LIMIT(LIMIT,B)
22. If using Peachtree 2003:2008, type the following into the ―Formula‖ text box. You can use ―Ctrl‖+―Enter‖
on your keyboard to create the necessary line breaks.
LIMIT =350; PERCENT=20;
A=ADJUSTED_GROSS+Fed_Income+Soc_Sec+Medicare+State; B=A*PERCENT%;
ANSWER=-MAX_LIMIT(LIMIT,B)
(cont.)

Exercises (cont.):
25. Select ―Maintain| Default Information| Employees…‖ from the Menu Bar.
26. Select the ―Employee Fields‖ tab.
27. Scroll down to the next available line, and type ―Garnish‖ as the ―Field Name.‖
28. Select the ―G/L Account‖ lookup list, and click the ―New‖ button on the drop-down
29. In the ―Maintain Chart of Accounts‖ window that appears, set up an new account with the following
information:
Account ID: ―23950‖
Account Description: ―Garnishment Payable‖ Account Type: ―Other Current Liabilities.‖
30. Click ―Save‖ in the ―Maintain Chart of Accounts‖ window.
31. Click ―Close‖ in the ―Maintain Chart of Accounts‖ window.
32. Select ―23950‖ as the new ―G/L Account.‖
33. Click ―OK.‖
34. Select ―Maintain| Employee/Sales Reps…‖ from the Menu Bar.
35. Select ―whitew‖ from the ―Employee ID‖ drop-down
36. Select the ―Employee Fields‖ tab.
37. Scroll down to the ―Garnish‖ line, and click the ―Use Defaults‖ (―Std‖ in 2003:2008) check box to clear it.
38. Click the ―Calculated‖ (―Calc‖ in 2003:2008) check box.
39. Select ―23950‖ as the ―Account,‖ if needed.
40. Use the ―Formula‖ (―Tax Name‖ in 2003:2008) drop-down to select ―GARNISH.‖
41. Click the ―Adjust‖ gray arrow button at the end of that row.

42. Click the ―Use‖ check box for ―Gross.‖
43. Click ―OK.‖
46. Select ―Tasks| Payroll Entry…‖ from the Menu Bar.
47. Select ―whitew‖ from the ―Employee ID‖ drop-down, and then click ―OK‖ until the warning message
boxes finish displaying.
48. In the ―Taxes-Benefits-Liabilities‖ list, scroll down through the deductions shown and note that the
―Garnish‖ field is functional.
50. Click ―No‖ to saving the transaction.

Computerized Accounting With PEACHTREE COMPLETE ACCOUNTING 2010
Note:
The ―Ctrl‖ keyboard shortcuts will behave differently than listed when the ―Peachtree
Today‖ window
is displayed. In this case, it will translate the shortcuts as if you were using Internet
Explorer.
CTRL Functions Key Function Keys Key

Cut Ctrl + X Displays online help topic F1
Copy Ctrl + C Changes mouse pointer to Shift + F1
“What’s This?” help selector
Paste Ctrl + V
Saves records and posts (or F5
Delete record Ctrl + E
saves) transactions in
Clear Del certain windows
Check Spelling F7 Toggles between open F10
window & menu bar
Find Ctrl + F
Closes current document Ctrl + F4
Find next Ctrl + D
window
Previous Record Ctrl + Alt + P Closes the application Alt + F4
Next Record Ctrl + Alt + N window
Moves to next window Ctrl + F6
New Company Ctrl + N
Moves to the previous Shift + Ctrl
Open Company Ctrl + O
window + F6
Backup Company Ctrl + B
Restore Company Ctrl + R
Print Ctrl + P
Print Preview Ctrl + W
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Chapter 1- Computerized Accounting

Chapter 1: Computerized Accounting System

Copyright  November 2018 Seamless College Page 1

1. Analyze transactions from source documents.

5. Prepare Reports/ Journals:

A. General Ledger (G/L):

 Cash Receipts Journal

 Cash Disbursements Journal

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B. Accounts Receivable (A/R):

 Aged Accounts Receivable

 Cash Receipts Journal (Customer‘s) Payments

C. Account Payable (A/P)

 Aged Accounts Payable

 Cash Disbursement Journal

 Employees Earnings Record

 Quarter-to date Wage Reports

 Inventory Status Report

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 Physical vs. Perpetual

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1. General Ledger / Financial Analysis

FIVE MAIN MODULES AND THEIR MAIN FILE

MODULE MAIN FILE

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Purchasing Vendors/Item File

Add-On Module: Address Labels, Database Reports, invoice , organization.

Each module is organized into five basic activities:

MODULE ACTIVITIES 1. Setup

Table 12.1 Difference between Manual accounting and Computerized accounting

No. Point of Difference Manual Accounting Computerized Accounting

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What Are Differences Between Manual & Computerized Accounting?

Figure depicts a Manual Accounting System model

Figure depicts a Computerized Accounting System model

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Computerized accounting produces information much faster than manual accounting.

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Information technology plays an important role in accounting processes because it improves

Computerized accounting activities help an accountant perform month-end closing procedures.

1.3. Benefits of Using Computerized Accounting System

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1.3.1. Computerized Accounting Advantages

4. The computer system automatically prepares financial statements.

7. Fast manipulation of data makes management decision making easier, leading to

Copyright  November 2018 Seamless College Page 10

1.3.2. Computerized Accounting Disadvantages

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1. A sample of each type of source document.

2. A copy of the month-end reports.

3. An idea of how the company will grow in the future.

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Key Terms Introduced in the Chapter

• Generally Accepted Accounting Principles • Operating Environment

• Accounting Software • Accounting Packages

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Summary with Reference to Learning Objectives

Steps to log-on and exit the program were given.

1 Computerized Accounting System: A computerized accounting system is an

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accounting information system that processes the financial transactions and

(a) Accounting framework and

(b) Operating Procedure.