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PEACHTREE

ACCOUNTING

STEP BY STEP

EDITED BY

PATRICIA A CARSON, CQA

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To use this manual:

Please read all sections FIRST to Computer Practice sections. Then

perform Computer Practice and print all requested forms and reports. This

manual is not intended to completely cover all aspects of the Peachtree

Accounting Program, but to provide an introduction to the software.

COMPANY BACKUP

Manual Backup and Restore

Backing up creates one file that includes all company information and

customized forms present at the time the backup was made, as well as all

transactions. To make a backup of your company, select Backup on the

Company pane.

Select the option to include the company name as part of the backup file

name. The letter BU plus today’s date are the default file name if you do not
check this box.

After you click Back Up, the Save Backup window opens. Select the

computer drive and location where you want to save your backup. Click

Save to create the backup. A message will appear, indicating the amount of

space needed for the backup file. Click OK to continue. The extension for

the backup will be PTB.

To restore a backup in Peachtree, you will want to first create a folder, as

there are several files that will be created when you restore. Select the

Restore option on the Company pane. Click Browse to choose the location

of your backup. In the next window, if you are NOT replacing an existing

file, you will choose the option New Company. If you are replacing an

existing company, click the Browse button to navigate to the location of

you’re the company you are replacing. Click Next. Choose Restore Options

– Company Data, and you can also select Customized Forms and Web

Transactions. Click Next. Verify the information is correct, and click on

Finish.

COMPUTER PRACTICE:

1. Create a new folder on your desktop labeled Stone Arbor

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2. Open Peachtree. Choose to open Stone Arbor Construction.

3. Following the instructions above, Backup and Restore Stone Arbor

Construction.

COMPANY SET UP – CREATE A NEW

COMPANY

Create a New Company - Company Information

You use the company information window to enter basic information about

your company such as

 name and address information

 telephone and fax numbers

 Web site address (for example, www.company.com) and primary e- mail address (for example,
sales@company.com or

service@company.com)

Note: Do enter the "http://" prefix in the Web site address field.

 federal and state employer identification numbers

 state unemployment ID

 type of business

You can change company information at any time.

When you're finished entering information, select the Next button.

Select Method to Create

You need to establish how your new company will be set up:

 Use a sample business type that closely matches your type of

company: Select this option to copy basic setup information,

particularly a chart of accounts, from a sample company. You can

select either a simplified chart of accounts that contains only the basic
accounts you need to get started; or you can choose a detailed chart.

Depending on which version of Peachtree you are using your

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selections will vary. You can modify the accounts later, according to

your needs. For more information, click .

 Copy settings from an existing Peachtree company: Select this

option if you want to copy setup information from another Peachtree

company or you are rebuilding a Peachtree company.

 Convert a company from another accounting program: Select this

option if you want to import company data from Peachtree Complete

Accounting for DOS or Peachtree Classic (PCA), Quicken, or some

other program. For more information, click . The version you have

will not convert the version of QuickBooks on your computer.

 Build your own company: Select this option if you want to create a

company from scratch. This option is only recommended for

experienced users who are comfortable setting up accounting

information. For users coming from a paper ledger, we recommend

that they select a business type (see above) that most closely matches

their existing chart of accounts and then modify it as they have need.

If you select this option, make sure you set up your chart of accounts prior to

setting up any other part of the company. Do this immediately after finishing
the Create a New Company wizard.

 Consolidate existing Peachtree Accounting companies: (Peachtree

Premium Accounting and above only) Select this option to combine

the charts of accounts of a number of existing Peachtree companies to

create a new consolidated chart of accounts. This will let you see

consolidated financial statements for multiple businesses operating

under an umbrella organization

Create a New Company - Business Type

Your company's business type is a complete list of all account names that

will be used in the general ledger, including a set of Equity accounts tailor- made for the
business. Each account is associated with an account ID to help

locate it when recording data. Charts of accounts can vary depending on the

type of business. Peachtree provides sample companies from which you can

copy the chart of accounts. This is a useful shortcut to set your company.

Later, you can modify the chart of accounts to meet the specific needs of

your business.

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1. Start Create a New Company and make sure the Use a sample

business type that closely matches your company option is selected.

2. Select the chart of accounts that matches your type from the list.

Depending on the version of Peachtree that you are using the list of
simplified and detailed business types will vary. To the right, you can

see the chart of accounts that will be created if you select a particular

business type.

3. To view more information about an industry, select the View details

about a business type link.

4. To continue setup of your company, select the Next button. Peachtree

displays the Create a New Company – Accounting Method window.

Create a New Company - Posting Method

The posting method determines how Peachtree processes transactions to

journals and the general ledger.

1. Start Create a New Company, and make sure the Posting Method

window is displayed.

2. Choose the posting method you want to use when processing

transactions:

Real-Time Posting: Transactions are posted to the journals and the

general ledger as they are entered and saved. This method can save

you time and is best for most business and network environments.

Most companies use this method.

Batch Posting: Transactions are saved by the program and then

posted in a group. When you use batch posting, you can print registers

and check the batch of transactions before posting them to the

journals.

You can switch posting methods at any time.

3. To continue setting up your company, select the Next button.

Peachtree displays the Create a New Company - Accounting Periods

window.

Create a New Company - Accounting Method

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The accounting method determines how Peachtree handles General Ledger,

Accounts Receivable, and Accounts Payable transactions.

1. Start Create a New Company, and make sure the Accounting Method

window is displayed.

2. Choose the accounting method to run your business:

Accrual Accounting: Income is recorded as you invoice customers,

and expenses are recorded when you receive bills from vendors,

regardless of when cash is actually exchanged. This presents a truer

picture of income and expenses. Most companies use this method.

Cash-Basis Accounting: Income is recorded when cash (checks,

money orders, or currency) is received, and expenses are recorded

when paid. However, unpaid credit sales and purchases do not show

on ledgers, which can present a misleading picture of income and

expenses.

If you use cash-basis accounting, you may discover that the inventory

valuation report does not agree with the general ledger account for
inventory. This is because inventory uses the accrual method, while

the general ledger is cash basis. This means that the inventory records

will be updated to reflect unpaid purchases and sales, while the

general ledger will not be updated until actual money changes hands.

Create a New Company - Accounting Period Structure

Accounting periods are units of time that divide your fiscal year for

reporting purposes. In Peachtree you can set up to 13 accounting periods per

fiscal year.

1. Start Create a New Company, and make sure the first Accounting

Periods window is displayed.

2. Choose the accounting period structure you want your company to

follow:

12 monthly accounting periods: Each accounting period's starting

and ending dates match those of the 12 calendar months. You can

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choose to start your fiscal year in January or any other month of the

year. Most companies follow this fiscal year structure.

Accounting periods that do not match the calendar months:

Choose this option if you want to set up a custom fiscal year structure.

For example, you may want four accounting periods per year or

possibly 13 four-week accounting periods per year.

3. To continue setting up your company, select the Next button.

Peachtree displays the next Create a New Company window

corresponding to your setup option.

Create a New Company - Fiscal Year

Starting dates need to be established for setting up your company and

entering data. Once you establish a starting date, Peachtree will

automatically set up monthly accounting periods for your first two fiscal

years.

1. Start Create a New Company, and make sure the 12 monthly

accounting periods setup option is selected.

2. Enter the first month of your first fiscal year, or select it from the

drop-down list. Then, enter the year.

Usually, a company's fiscal year starts in January and ends in

December. However, some companies start their fiscal year in July

and end in June.

Note: If you are creating a consolidated company (Peachtree Premium

Accounting and above), this field will be disabled (gray) and will

display the first month and year of the consolidated company's first

fiscal year, based on information taken from the subsidiary

companies.

3. To continue setting up your company, select the Next button.

Peachtree displays the Create a New Company - Finish window.

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Create a New Company - Finish

Use this procedure to complete the new company setup process.

1. Start Create a New Company, and read the information in the window

and follow the prompts.

2. Complete each window that follows until Peachtree displays the New

Company Setup – Finish window.

3. Read the information on the window.

4. Select the Finish button to save your company settings.

Set Up Your Chart of Accounts

Select the Chart of Accounts option from the Maintain menu.

Peachtree displays the Maintain Chart of Accounts window.

1. Enter an account ID and description for the account.

The account ID determines how the account is identified and sorted in

the chart of accounts list. Most charts of accounts are set up with

specific account types grouped together.

2. Select an account type from the drop-down list.

3. Select Save.

4. Repeat step 1 to 3 till all chart of accounts are created

5. Select Close.

Entering of Opening Balances

Method One:
1. From the Tasks menu, select General Journal Entry. Peachtree

displays the General Journal Entry window.

2. Enter or select the date of the transactions you want to enter.

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Peachtree defaults this date to the Peachtree system date. If you are in

an accounting period that is different from the system date, then

Peachtree displays the first day of that period.

3. Enter a reference for the transaction up to 20 characters.

If you enter a number reference, Peachtree will increase future

General Journal entries by one while this window is open.

4. For each line enter or select an account ID. To display a list of

existing accounts, type ? in the G/L Account ID field, or select the

Lookup button.

For each line enter an amount in either the Debit or Credit columns.

5. For each line enter a description for the transaction.

The description will appear in General Ledger and various reports.

6. Once the Out of Balance field is zero (0.00), select Save to record the

transaction in the General Journal.

Method Two:

Go to Charts of Accounts, available on the Company Tab, or on the Drop-Down Menu

Lists
1. Click on New Account

2. Click on Account Beginning Balances

3. Chose 12/31/10 as the date to enter balances

4. Enter balances for accounts as listed in Computer Practice

5. Be sure that debits and credits balance

Set Up a Customer

Use this procedure to set up a new customer record.

1. From the Maintain menu, select Customers/Prospects.

2. Enter a new customer ID, and complete the necessary information.

3. click sales default tab

4. click GL sales account button

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5. Click New Button from the window that appear at the bottom side of

the window

6. Create two chart of accounts for the customer. Note: Account Type

should be Income and Account Receivable

7. Close the chart of account window

8. Clock GL sales Account button again

9. Select Chart of Account for the Customer just created. It is of the

account type Income.

10.When you're finished filling in the window, select the Save button.
11. On the General tab, select the Beginning Balances button. Peachtree

displays the Customer Beginning Balances window.

12. On the Invoices for tab, enter the invoice number, invoice date,

purchase order number (if applicable), amount, and the appropriate A/R

account (if necessary) for each unpaid invoice for this customer that

needs to be recorded when starting Peachtree.

13. These transactions can be adjusted at any time unless a receipt has

been applied to the invoice. If a receipt has been made, the invoice will have

a gray background. To edit it, you must delete the receipt first.

If you need to enter more than one line on this tab, press ENTER and

continue adding invoices.

1. To enter beginning balances for additional customers, select the

Customer Balances tab. Double-click the customer name, or

highlight the name and select the Invoices for tab.

Set Up a Vendor

Use this procedure to set up a new customer record.

11.From the Maintain menu, select vendor.

12.Enter a new vendor ID, and complete the necessary information.

13.click purchase default tab

14.click GL expenses account button

15.Click New Button from the window that appear at the bottom side of

the window
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16.Create two chart of accounts for the customer. Note: Account Type

should be expenses and Account payable

17.Close the chart of account window

18.Click GL expense Account button again

19.Select Chart of Account for the vendor just created. It is of the

account type Expense.

20.When you're finished filling in the window, select the Save button.

2. On the General tab, select the Beginning Balances button. Peachtree

displays the Customer Beginning Balances window.

3. On the Invoices for tab, enter the invoice number, invoice date,

purchase order number (if applicable), amount, and the appropriate

A/P account (if necessary) for each unpaid invoice for this customer

that needs to be recorded when starting Peachtree.

These transactions can be adjusted at any time unless a receipt has

been applied to the invoice. If a receipt has been made, the invoice

will have a gray background. To edit it, you must delete the receipt

first.

If you need to enter more than one line on this tab, press ENTER and

continue adding invoices.

4. To enter beginning balances for additional vendors, select the Vendor

Balances tab. Double-click the customer name, or highlight the name

and select the Invoices for tab.

Set Up an Inventory Item

Use this procedure to set up a new inventory item record.

1. From the Maintain menu, select Inventory Items.

2. Enter a new item ID, and complete the necessary item information.

3. Create GL Sales Account, GL Inventory Account, GL Cost of Sales

Account for each inventory.

4. When you're finished filling in the window, select the Save button.

5. On the General tab, select the Beginning Balances button. Peachtree

displays the Inventory Beginning Balances window.

From the item list, enter or select an item ID that you want to record a

beginning balance.

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4. For each item, enter two of the three fields: quantity (on hand), unit

cost, and total cost. Peachtree will calculate the third or remaining

field.

5. When finished entering beginning balances for all your inventory

items, select OK.

COMPUTER PRACTICE:

1. Create a new company, using the instructions above, with the

following information:
a. Name of Company: Your Name Consulting

b. Address: 1275 E. Moorpark, San Jose, CA 95128

c. Phone Number 408-555-1111

d. Fax Number 408-555-1112

e. Federal ID – 77-123456

f. State ID 555-25-1234

g. Choose a Sample Company, Type is Service

h. Method of Accounting: Accrual

i. Posting: Real Time

j. 12 Month Period

k. First Period Entering information: January 2011

l. Add the expense account: Licenses and Permits

m. Add Account Beginning Balances for January 2011:

i. Checking: $44,385.60

ii. Accounts Receivable: $62,480.00

iii. Inventory: $2,450.00

iv. Accounts Payable: $12,225.00

v. Retained Earnings: $97,090.60

n. ADD the following customers:

i. Quality Construction, 1448 Stevey Reynolds Blvd.

Fremont, CA 94538, 510-657-1234,

bob@qualityconstruction.biz,

www.qualityconstruction.biz Customer ID: QC1000

ii. Teesdale Real Estate, 4555 Indian Lake Lane, Campbell,

CA 95008, 408-562-4562, ryan@teesdale.com,

www.teesdale.info Customer ID: TR1002

o. ADD the following vendors:

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i. AAA Office Supply, 125 Airport Way, San Jose, CA

95126, 408-555-8000, info@aaos.net, www.aaos.net

Vendor ID: AA100

ii. First National Bank, P.O. Box 4568, Memphis, TN

12366, 888-458-3145, www.fnb.bnk Vendor ID:

FN106

p. ADD the following inventory items

i. ID: IN151, Instruction Manual, noninventory, Sales Price

and account numbers: $125, 4050, 1200, 5000

ii. ID: TST125, Test, noninventory, Sales Price and account

numbers: $50, 4050, 1200, 5000

q. Print the following: (See Appendix A for Report Creation)

i. Balance Sheet for January 31, 2011

ii. Customer List

iii. Vendor List

iv. Item List

PLEASE CLOSE THIS COMPANY.

RESTROE BELLWEATHER GARDEN SUPPLY. THE BALANCE OF THE

PEACTREE MANUAL WILL BE DONE IN THIS FILE.

TRANSACTIONS POSTING

Enter A Sales Invoice

From the Tasks menu, select Sales/Invoicing. Peachtree displays the

Sales/Invoicing window.

1. Enter or select the customer ID. To display a list of existing

customers, type ? in this field, or select the Lookup button. To add a

new customer, type + or double-click the field, which displays the

Maintain Customers/Prospects window.

When the customer is selected, Peachtree supplies the customer

default information, including billing and shipping addresses, sales

account, shipping method, payment terms, and sales tax code.

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2. If this customer has open sales orders, the Apply to Sales Order tab

appears in front. To enter new items on the invoice, select the Apply

to Sales tab.

3. Leave the Invoice # field blank if you want Peachtree to print an

invoice. Peachtree will increase the invoice number by one when it is

printed. Otherwise, enter an invoice number or other reference

number. (If you print the invoice with an invoice number assigned or

print it again later, the invoice will have the word DUPLICATE on it.)

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

date.

5. If you have entered a default shipping address in the customer's

record, the first shipping address will appear on the invoice. You can

select another shipping address from the choices available in the Ship

To drop-down list, or manually enter another address in the Ship To

fields.

6. If you have entered a default P.O.# in the customer's record, it will

appear on the invoice. If not, you can enter the customer's purchase

order number now or change the default to any other piece of

information that will identify this invoice to the customer.

7. If you have entered a default shipping method in the customer's

record, it will appear. You can select the Ship Via button if you want

to select a different shipping method. You can also enter a ship date.

8. Peachtree uses the default terms you have entered for the customer,

but you may want to select the Terms button to change the default

discount dates or amounts for this invoice. When a receipt that

qualifies for an early-payment discount is applied against the invoice,

Peachtree will calculate the discount.

9. If you entered a default Sales Rep in the customer's record, it will

appear. Otherwise, select the code of the sales representative, if

applicable.

10.Enter the information for each item included on the invoice on a

separate line, including the item's quantity, item ID, description, unit

price (the number of decimal places is selected in Global Options),

sales tax status, and job information.

 If the line item contains serialized inventory, you will need to

select serial numbers for the item(s). Select the line item with

the serialized inventory item, then select the Serial No button to

enter or select serial numbers. The Serial Number Selection

window appears. Select the serial numbers you need and select

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OK when you're finished to return to the Sales/Invoicing

window. However, if the invoice has more than one line item

that contains serialized inventory, you can select the OK/Next

button to save the current entry and move to the next serialized

item.

13.The default G/L sales account that appears for each line item is based

on the customer sales account default or the item ID selected. To

change the account ID, type ? in this field, or select the Lookup

button. To add a new account, type + or double-click the field, which

displays the Maintain Chart of Accounts window.

14.Continue entering line items until you have entered them all.

15.If you have received a partial or full payment for this invoice at the

time of the sale, select the Amount Paid at Sale button. Peachtree

displays the Receive Payment window, where you can enter receipt

information.

The Net Amount Due displays what the customer currently owes for

the sale.

16.At the bottom left corner of the window, the selected customer's

balance, credit limit, and credit status is displayed. You can click the

arrow button to the right of the customer balance to display the current

Customer Ledgers report for this customer.

17.Select the Print button if you want to print and save the invoice.

Otherwise, click the Save button.

Apply a Payment to an Invoice

When a customer pays an invoice, enter the amount in the Receipts window.

To enter customer payment on an invoice

1. From the Tasks menu, select Receipts. Peachtree displays the

Receipts window.

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2. Enter a deposit ticket ID that can easily represent the type and source

of payment. This will make account reconciliation easier to manage.

3. Enter or select the customer ID. To display a list of existing

customers, type ? in this field, or select the Lookup button.

If there are unpaid invoices for this customer, Peachtree lists them on

the Apply to Invoices tab. If there are no unpaid invoices, Peachtree

displays the Apply to Revenue tab.

4. Enter a reference number that will help identify the receipt (for

example, the customer's check number).

5. Select a payment method (for example, Cash or Check). Payment

methods are set up in Customer Defaults; these are quite useful in

reports when managing receipts.

6. In the Cash Account list, enter or select the bank account in which

the receipt is deposited.

7. On the Apply to Invoices tab, select the Pay check box next to each

invoice that the customer is paying.

o If the customer has paid the invoice in full, place the cursor in

the Amount column for the invoice, and select the Pay check

box. Peachtree will fill in the Amount Paid field.

o If the customer has only paid a partial amount on the invoice,

enter that amount. Peachtree will automatically select the Pay

check box.

Note: If your customer overpays the amount, a credit is made to the

customer's ledger; for underpayments, the payment amount is applied

to the invoice balance. You will need a reference number in order to

post or save the record.

8. Select the Print button if you want to print and save the receipt.

Otherwise, click the Save button.

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Enter Customer Returns

1. From the Tasks menu, select Credit Memos. Peachtree displays the

Credit Memos window.

2. Enter or select the customer ID. To display a list of existing

customers, type ? in this field, or select the Lookup button.

3. In the Credit # field, enter the ID that you want to apply to the credit

memo.

4. If the transaction date is different from the one displayed, enter or

select a new date.

5. Do one of the following:

 If the credit memo is to be applied to an existing invoice for the

customer, on the Apply to Invoice # tab, use the drop-down list

to select the appropriate invoice. When line-item information

for the invoice appears, find the item or items to be returned,

and in the Returned column enter the quantity. Peachtree will

automatically restore this quantity to inventory.

 If the credit memo is to be applied to a sale for which there is

no existing invoice, on the Apply to Sales tab, enter line-item

information for the item or items to be returned or credited,

including quantity. Peachtree will automatically restore this

quantity to inventory.

6. If you want to print the credit memo, we recommend that you print it

at this time and not from Reports. To print the credit memo, select the

Print button.

7. When finished, select Save.

Enter a Vendor Bill

From the Tasks menu, select Purchases/Receive Inventory.

Peachtree displays the Sales/Invoicing window.

11.Enter or select the Vendor ID. To display a list of existing vendor,

type ? in this field, or select the Lookup button. To add a new vendor,

type + or double-click the field, which displays the Maintain vendor

window.

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When the vendor is selected, Peachtree supplies the vendor default

information, including billing and shipping addresses, purchase

account, shipping method, payment terms.

12.If this vendor has open purchase orders, the Apply to purchase

Order tab appears in front. To enter new items on the invoice, select
the Apply to Purchase tab.

13.Leave the Invoice # field blank if you want Peachtree to print an

invoice. Peachtree will increase the invoice number by one when it is

printed. Otherwise, enter an invoice number or other reference

number. (If you print the invoice with an invoice number assigned or

print it again later, the invoice will have the word DUPLICATE on it.)

14.Enter the date of the transaction if it is different from the displayed

date.

15.If you have entered a default shipping address in the vendor's record,

the first shipping address will appear on the invoice. You can select

another shipping address from the choices available in the Ship To

drop-down list, or manually enter another address in the Ship To

fields.

16.If you have entered a default P.O.# in the vendor's record, it will

appear on the invoice. If not, you can enter the vedor's purchase order

number now or change the default to any other piece of information

that will identify this invoice to the vendor.

17.If you have entered a default shipping method in the vendor's record,

it will appear. You can select the Ship Via button if you want to select

a different shipping method. You can also enter a ship date.

18.Peachtree uses the default terms you have entered for the vendor, but

you may want to select the Terms button to change the default

discount dates or amounts for this invoice. When a receipt that

qualifies for an early-payment discount is applied against the invoice,

Peachtree will calculate the discount.

 If the line item contains serialized inventory, you will need to

select serial numbers for the item(s). Select the line item with

the serialized inventory item, then select the Serial No button to

enter or select serial numbers. The Serial Number Selection

window appears. Select the serial numbers you need and select

OK when you're finished to return to purchase/receive

inventory window. However, if the invoice has more than one

line item that contains serialized inventory, you can select the

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OK/Next button to save the current entry and move to the next

serialized item.

18.The default G/L sales account that appears for each line item is based

on the vendor sales account default or the item ID selected. To change

the account ID, type ? in this field, or select the Lookup button. To

add a new account, type + or double-click the field, which displays the

Maintain Chart of Accounts window.

19.Continue entering line items until you have entered them all.

20.Select the Print button if you want to print and save the invoice.

Otherwise, click the Save button.

Apply Payment to Vendors.

To select a range of vendors whose invoices you want to pay:

1. From the Tasks menu, choose Select for Payment.

2. Enter the check date. This is the date that will be printed on the

checks.

3. Next, you can filter invoices based on the due date or the discounts

lost by date.

For example, if it is March 18th and you want to see all invoices due

before March 31st, enter March 31st in the Invoices Due Before field.

If, instead, you want to see invoices whose discounts will be lost by

March 30th, enter March 30th in the Discounts Lost By field.

4. Select which invoices you want to include. You can include all

invoices or specific ones based on the number of days overdue and the

balance amount. For example, you may want to view invoices 15 days

past the due date that have balances over $25.

Enter either a range of vendors, or enter the starting vendor if you

want to print a check for a single vendor.

5. Select the Always take discounts regardless of due date check box

if you want discounts calculated even if the discount date has passed.

6. When all selections are correct, click OK.

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Enter Vendor Returns

6. From the Tasks menu, select Vendor Credit Memos. Peachtree

displays the Credit Memos window.

7. Enter or select the Vendor ID. To display a list of existing Vendors,

type ? in this field, or select the Lookup button.

8. In the Credit # field, enter the ID that you want to apply to the credit

memo.

9. If the transaction date is different from the one displayed, enter or

select a new date.

10.Do one of the following:

 If the credit memo is to be applied to an existing invoice for the

Vendor, on the Apply to Invoice # tab, use the drop-down list

to select the appropriate invoice. When line-item information

for the invoice appears, find the item or items to be returned,

and in the Returned column enter the quantity. Peachtree will

automatically restore this quantity to inventory.

 If the Vendor credit memo is to be applied to a Purchase for

which there is no existing invoice, on the Apply to Sales tab,

enter line-item information for the item or items to be returned

or credited, including quantity. Peachtree will automatically

restore this quantity to inventory.

8. If you want to print the Vendor credit memo, we recommend that you

print it at this time and not from Reports. To print the Vendor credit
memo, select the Print button.

9. When finished, select Save.

Write Checks

1. From the Tasks menu, select Write Checks.

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

o To display a list of existing vendors, type ? in this field, or

select the Lookup button.

1. To add a new vendor, type + or double-click the field, which

displays the Maintain Vendors window.

If you are entering a handwritten check, enter the check number in

the Check Number field. If you want Peachtree to print the check,

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leave this field blank. If this is an electronic payment, the Check

Number field will read "Electronic."

2. Enter or select the date of the disbursement, not necessarily today's

date.

3. Enter the total amount of the check.

4. If desired, enter a memo up to 30 characters long.

5. Enter or select the cash account from which you will be writing

the check.

6. Enter or select the expense account you want to use to distribute

the payment.

7. If you want to distribute this payment to multiple individual line

items, select the Split button. The Split Transaction window

appears, allowing you to make additional distributions. For more

information, click .

8. In the Description field, Peachtree offers a default description for

the distribution. If needed, change it.

COMPUTER PRACTICE:

Enter the following transactions:

1. Sales Invoice #DBS102 to: Dash Business Systems on

3/10/2011

a. 1 EQFF-13110

b. 1 EQWT-15120

2. Sales Invoice to: Golden Gardens GG103 on 3/11/2011

a. 3 AVRY-10050-SM-HTL

b. 12 AVRY-10140

3. Receive a payment on 3/15/2011 from Archer Scapes and

Ponds for $7,374.69, Reference 17850

4. Issue a Credit Memo to Armstrong Landscaping for 1

EQLW-1411 returned on 3/18/2011

5. Enter Bill from Southern Garden Wholesale for PO Number

10201, all remaining items on PO. Add Freight, GL account

57500-00 of $25.00 on 3/19/2011

6. Pay Vendors Caldwell Tools Company Bill #C1280 and

C1450, and Akerson Distribution Bill #A-7811 3/25/2011

7. Enter Vendor Return to Clooney Chemical Supply for 1

EQFF-13100 for damaged Fertilizer Pump Sprayer on

3/26/2011

8. Write check for balance of rent ($600.00) on 3/26/2011 to

Mills Leasing Corp.

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9. Create the following reports: Income Statement, Balance

Sheet, Aged Accounts Receivable and Aged Accounts

Payable for March, 2011

General Journal Entry

The General Journal is used to enter those types of transactions that are not

readily categorized in the Tasks menu. Typical General Journal entries

include chart of account beginning balances, depreciation, and account

transfers.

Here, you also enter adjustments you need to make during Account

Reconciliation. Such adjustments are necessary to account for errors, service

charges, check charges, or unrecorded withdrawals or deposits. When you

select Adjust in Account Reconciliation, the General Journal Entry window

opens.
Unlike other screens in Peachtree, you provide all the accounting

distributions in the General Journal. At other times, Peachtree automatically

distributes certain amounts, based on guidelines you set in Maintain menus.

1. From the Tasks menu, select General Journal Entry. Peachtree

displays the General Journal Entry window.

2. Enter or select the date of the transactions you want to enter.

Peachtree defaults this date to the Peachtree system date. If you are in

an accounting period that is different from the system date, then

Peachtree displays the first day of that period.

3. Select the Reverse check box to have the transaction automatically

reversed the first day of the next accounting period.

Reversing means that debits become credits and credits become

debits.

4. Enter a reference for the transaction up to 20 characters.

If you enter a number reference, Peachtree will increase future

General Journal entries by one while this window is open.

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For each line enter or select an account ID. To display a list of

existing accounts, type ? in the G/L Account ID field, or select the

Lookup button.

5. For each line enter a description for the transaction.

The description will appear in General Ledger and various reports.

6. If the transaction is associated with a job, enter or select a job ID. You

can later apply the General Journal entry to a customer invoice, if

needed.

7. Once the Out of Balance field is zero (0.00), select Save to record the

transaction in the General Journal.

To record an inventory adjustment

1. From the Tasks menu, select Inventory Adjustments. Peachtree

displays the Inventory Adjustment window.

2. Enter or select the item ID you want to adjust. To display a list of

existing items, type ? in this field, or select the Lookup button. To add

a new item, type + or double-click the field, which displays the

Maintain Inventory Items window.

This can only be an item classified as a stock item, serialized stock

item, assembly item, or serialized assembly item. If the item is

serialized, the Serial No button will become available when you

select the item ID. You will need to enter or select serial numbers

after you have entered an adjustment quantity in Step 7.

3. Enter anything you like in the Reference field up to 20 alphanumeric

characters.

For example, you could enter your initials or the date in this field.

4. Enter or select the date the change in inventory occurred or the date of

the physical inventory count.

The date is automatically filled in as the current system date.

5. If you are tracking jobs, enter or select a job to attach this adjustment

to.

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6. Enter or select a G/L account to take this adjustment out of, and enter

a unit cost for the inventory item (for positive adjustments only).

The default G/L source account is the Cost of Goods Sold Account.

The other account affected by adjustments is the inventory account.

To change the account ID, type ? in this field, or select the Lookup

button.

The Unit Cost default is the current cost of the item and must be

positive.

7. Enter the amount to adjust the quantity by.

The Quantity on Hand is already filled in, and Peachtree calculates

the New Quantity after you enter the adjustment.

If this adjustment is being made to a serialized inventory item, select

the Serial No button. Depending upon whether you enter a positive or

negative quantity, either the Serial Number Entry or the Serial Number

Selection window will appear. To find out which window will appear, click

here . After you have entered or selected serial numbers, click OK to return

to the Inventory Adjustments window.

8. If you know the reason for the adjustment, enter it.

For example, Found in warehouse or Theft.

9. Save the adjustment. The Cost of Goods Sold, Inventory Total Value,

and Inventory G/L accounts are all updated.

COMPUTER PRACTICE:

1. Enter Journal Entry for Depreciation of Equipment for $442.31

dated March 31, 2011. Accounts: 64000-00 Depreciation Expense,

17100-00 Accum. Depreciation-Equipment

2. One Stone Bird Bath Broken, Adjust Inventory for one less

AVRY-10150 on March 31, 2011

3. Print General Journal Report and Inventory Adjustment Journal for

Period March 1-31, 2011

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ACCOUNT RECONCILIATION

1. From the Tasks menu, select Account Reconciliation. Peachtree

displays the Account Reconciliation window.

2. Enter or select the account you want to reconcile. To display a list of

existing accounts, type ? in the Account to Reconcile field, or select

the Lookup button.

3. Enter the closing date from the bank or credit card statement as the

Statement Date
The statement date you select must be within the current accounting

period.

4. Enter the Statement Ending Balance (the ending balance amount

included on the bank statement) in the lower-right section of the

window.

Transactions that are available to be cleared are listed at the center of

the window; you can use the Show drop-down arrow button to select

which transactions you would like to appear. For each transaction,

reference information such as check numbers, amounts, dates, and

vendor/payees or descriptions are listed. By default, checks are sorted

by check number. You can change the sort order by clicking the

heading of the column you want to sort by.

5. Check to see if these amounts are correct. Select the arrow button next

to the field; the Imported Interest / Charges window will list

information about the imported item(s). If any items represent

duplicate entries or bank errors, you can delete them in this window.

6. Select the Clear check box next to each item that is included on the

bank statement. You can also use the right-click menu buttons that

appear when you select a row; both give you additional options.

In addition, you can select the All button to select all transactions as

cleared. Or you can select the Range button to choose a range of

checks or deposits to clear.

Peachtree keeps track of how many transactions recorded in the

general ledger are cleared, how many are not, and the associated

totals.

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When all transactions listed on the bank statement are entered and

cleared in Peachtree and outstanding transactions have been accounted

for, the unreconciled difference should be zero (0.00). If not, check

the bank statement to make sure that each transaction listed is also

entered in Peachtree. For example, a service charge listed on the

statement may need to be entered in Peachtree.

7. Peachtree Complete Accounting and higher only: If the list of

transactions includes bank records imported electronically, some may

not have been autocleared by Peachtree. These transactions will need

to be manually matched to existing Peachtree records and cleared. For

information, click .

If any unmatched bank records represent duplicate entries or bank

errors, delete them using the Banking toolbar button, right-click menu,

buttons.

8. If this is the first reconciliation for the selected account, you might

have outstanding transactions not listed on the bank statement that

also do not appear in the Account Reconciliation window because

these amounts were entered as a lump-sum beginning balance in the

general ledger. This may cause you to have an unreconciled

difference. Select the Beginning Transactions button to enter these

outstanding transactions so that they can be reconciled.

9. Select the Adjust button to enter adjusting journal entries the bank

statement included but which are not included in Peachtree's general

ledger. For example, you may have a small discrepancy between the

amount noted on a customer check and what the bank reports to you

as credit on this transaction; say the bank rounds off to $10 a check

for $10.10. Rather than contact the bank to make the change, losing

more time and money than the discrepancy is worth, you'll probably

want to make the adjustment manually instead. Adjustments are made

in the General Journal Entry window. Once the adjustment is entered

and saved, you can close the General Journal Entry window and return

to Account Reconciliation.

10.If you entered adjusting entries, select the Clear check box next to

each of these items.

11.When you have successfully reconciled the account (the unreconciled

difference is zero), select OK to close the window.

COMPUTER PRACTICE:

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Reconcile the Payroll Checking Account, with the following information:

1. Statement Ending Balance: $12,868.14

2. Checks not in Bank Statement:

a. 1275 for $1101.61

b. 1277 for $985.43

c. 1278 for $985.43

d. 1281 for $681.40

e. 1283 for $787.54

f. 1284 for $740.47

g. 1285 for $770.44

h. 1290 for $1380.01

i. 1292 for $965.72

j. 1293 for $759.00

Payroll

Payroll will not be covered in this basic course.

Appendix A

CREATING REPORTS

Balance Sheet

1. Click the report menu

2. click the Financial Statement from Report Area List

3. Double Click Balance Sheet From Report List

Income Statement or P&L Statement

1. Click the report menu

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2. click the Financial Statement from Report Area List

3. Double Click Income Statement From Report List

General Ledger

4. Click the Report menu

5. click the General Ledger from Report Area List

6. Double Click General Ledger From Report List

Trial Balance

1. Click the Report menu

2. click the General Ledger from Report Area List

3. Double Click General Ledger Trial Balance From Report List

Other Reports

1. Click the Report menu

2. Follow the same procedure as above for other reports

Appendix B

Keyboard Shortcuts

CTRL X Cut

CTRL C Copy

CTRL V Paste

CTRL E Delete Record

CTRL F Find

CTRL D Find Next

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CTRL N New Company

CTRL O Open Company

CTRL B Back Up Company

CTRL R Restore Company

CTRL P Print Displayed Report

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Displaying PeachtreeManual-Spring-2011.pdf.