* Peachtree Accounting

Software
 Course outline
This course outline has 5 main chapters.
1. The Overviews Of Peachtree Accounting
2. General Ledger
3. Accounts Receivable
4. Account Payable
5. Inventory
 *UNIT-ONE

The Overviews Of Peachtree Accounting

 Peachtree Accounting
Peachtree Accounting:
Is the most complete, powerful and fully integrated
accounting system that one can find among the
different accounting software applications in the
markets. Eg, Peachtree Accounting Software,
QuickBooks and others.
It combines marketing, financial, and personnel
information in order to provide with necessary tools
for the efficient control of business operations.
 Four basic steps in converting a Manual Accounting
system to Peachtree Accounting

STEP 1: Decide on the Conversion Date

Refers to the time you will use as a starting point
STEP 2: Gather all the information you will need
Gather information about the Names and addresses for
customers, vendors, employees, sales representatives as
well as beginning balances for your general ledger
accounts as of the conversion date.
 Cont.…

STEP 3: Create a Company

STEP 4: Enter the Necessary Information

Data and Information

 The term data refers to any and all of the row facts that are
collected, stored, and processed by an information system.
 The term Information is data that has been organized and
processed in to meaningful ways.
 Cont.…

In Peachtree Accounting, your Data takes Two Basic

forms
1. Maintain Data :- Information about your customers,
vendors, employees, inventory items, jobs and charts of
accounts .
2. Task data :- Recording the daily transactions in your
business (invoices, receipts, purchases, payments,
paychecks)
 Starting Peachtree Accounting
After you installing Peachtree Accounting Software, you are ready
to begin. There are several ways to open (begin) Peachtree
Accounting Program.
A. From the Taskbar
B. From My Computer
C. From the Desktop
 Creating a Company

 Peachtree walks you through the process of creating a new

company.
 The minimum amount of information to initially set up your
company includes the chart of accounts, your accounting
method, your posting method, and your accounting periods.
 After you complete New Company Setup, you can set up your
default information, data records, and beginning balances for the
following.
General Ledger, A/P, A/R , Payroll, Inventory Items and
Jobs
 Cont.…

Starting New Company Setup

There are also two procedures for starting New Company Setup:
i. Starting from the startup window
ii. Starting from the menu
 Cont.…

1. Starting from the Peachtree Startup Window- when you

open Peachtree from the Peachtree Startup window, select Set up
a new company.
2. Starting from the Peachtree Menu
From the File menu, select New Company. If you are in
another company, a warning window alerts you that opening a
new company will close the current company.
Select OK. The system displays the New Company Setup
Introduction window.
 Set up Your Company
Steps for Setting up your New company Peachtree
wizard.
Step 1. New Company Set-up
 This wizard will walk you through crating a new company.
You will be ask about your;
 Company name and address
 Business type
 Accounting method ( cash & Accrual)
 Accounting period
 Fiscal year
 Cont.…

STEP 2: FILLING COMPANY INFORMATION

 Here, You have to enter the necessary information
about your company.
1st. Enter the company name, address, phone, and fax
information.
2nd. Select your Business type.
 Cont.…

The following business types are available to choose for

your company.
 Corporation: This is a business that is owned by a few
persons or by thousands of persons and is incorporated under
the laws of one of the country.
 S Corporation: A type of corporation that, for federal tax
purposes, may be taxed as a partnership provided certain
requirements are met.
 Partnership: A business owned by two or more persons
associated as partners.
 Cont.…

 Sole Proprietorship: A business owned by a single

individual and often managed by that same individual.
 Limited Liability Company: An separate association of two
or more persons (partners, corporations, or other business
entities) whose members have limited personal liability for
obligations or debts of the company.
 Cont.…

3rd. Select Next to continue setting up your company

STEP 3: BUILDING CHART OF ACCOUNTS
i. On the first Chart of Accounts window, you choose the
following options :
 Set up a new company based on one of the several sample
companies.
 Copy settings from an existing Peachtree accounting company.
 Convert a company from another accounting program
 Build your own company
STEP 4: CHOOSING THE ACCOUNTING METHOD
Peachtree allows you to choose one of the two accounting methods.
 Accrual Basis of Accounting assumes that revenue is
recorded when it is earned and expense is recorded when it
is incurred. Most companies use this method.
 Cash-Basis Accounting assume that revenue be recorded
when cash is received, and expenses are recorded when paid.
STEP 5: CHOOSING THE POSTING METHOD
Peachtree offers you two options to choose from to post your
transactions:
a. Real time posting– transactions are posted as they are
entered/journalized. This method can save you time and is best for
most business.
b. Batch posting: you wait and post transactions in a group latter.
STEP 6: CHOOSING ACCOUNTING PERIODS
 If you selected 12 monthly accounting periods, Two fiscal
years are created, 24 periods total.
 If you selected Accounting periods that do not match the
calendar months. Two fiscal years are created.
STEP 7: FINISH
 Opening an Existing Company
1. Opening an Existing Company from the Start-up Screen
 Select the name of the desired company from the Company
Name list box, and then select OK.
2. To open a company from the File Menu:
 From the File menu, select Open Company. When the Open
Company window appears, select the name of the company you
want to open, and then select the OK button.
 Deleting a Company
In order to delete a company, You should make a backup of the
company’s data
To delete a company:
1. Open Peachtree and the company you want to eventually
delete.
2. From the Help menu, select File Statistics.
3. Write down the company short name displayed in the title bar
of the File Statistics window.
4. Exit Peachtree.
 Back Up Your Company
To back up your company data files and customized forms using
the Peachtree format, use the following procedure:
1. From the File menu, select Back Up.
2. Select the Reminder check box
3. Select the Include company name check box if you want
4. Select the Include archives in the backup check box
5. Click the Back Up button to enter
6. Save Back Up window
 *UNIT TWO

GENERAL LEDGER
General Ledger:- Is the heart of any accounting system. All
of the transactions you process in your business eventually get
posted or stored in the set of accounts known as your general
ledger. This set of accounts is called the chart of accounts.
SETTING UP GENERAL LEDGER
Before you begin recording your company’s activity, you
must set up general ledger information, including your chart
of accounts.
Selecting Account Types
Account types are important, because:
 They can be selection criteria for reports.
 They set the order in which accounts display on financial
statements.
 They control what happens during fiscal year-end.
Peachtree account types :- you can choose from:
 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
Steps to Create a Chart of Accounts
1. Select the Chart of Accounts option from the Maintain
menu.
2. Enter an account ID and description for the account.
Hint: Enter Account ID 1101
Enter Account Description Cash on Hand
3. Select an account type from the drop-down list.
4. Click the Save icon.
 ENTERING BEGINNING BALANCES
Steps to Enter Beginning Balances
1. From the Maintain menu, select Chart of Accounts.
2. Select the Beginning Balances button.
3. Select the period in which you want to enter beginning balances.
4. Select OK. Peachtree displays the Chart of Accounts Beginning Balances
window.
5. Click or tab to any of the white cells in the grid to add an amount.
6. Enter all the beginning balances for the accounts.
7. For normal balances, you will enter positive numbers. If necessary, you can
enter a negative amount;
8. Select the OK button
 Exercise: Maintain chart of account by using the following information

Account
ID Account Description Active Account Type
1101 Cash on Hand Yes Cash
1102 Cash at Bank/Checking Account Yes Cash
1201 Accounts Receivable Yes Accounts Receivable
1202 Allowance for Doubtful Account Yes Accounts Receivable
1203 Prepaid tax Accounts Receivable
1301 Inventory Yes Inventory
1401 Fixed Assets Yes Fixed Assets
1401-1 Accu. Depreciation- Fixed Assets Accumulated Depreciation
1402 Property and Equipment Yes Fixed Assets
1402-2 Accum. Depreciation - Prop&Eqt Yes Accumulated Depreciation
2101 Accounts Payable Yes Accounts Payable
2102 Sales Tax Payable/VAT Yes Other Current Liabilities
2201 Deductions Payable Yes Other Current Liabilities
Account
ID Account Description Active Account Type
3101 Owner’s Capital Yes Equity Doesn’t Closed
3102 Profit After Tax Yes Equity - Retained Earnings
4101 Sales Income Yes Income
5101 Cost of Goods Sold Yes Cost of Sales
 UNIT THREE
ACCOUNTS RECEIVABLE
 Accounts Receivable
Represents amounts owed by customers for items or
Services sold to them when cash is not received at the
time of sale.
Accounts receivable are used in accrual-based
accounting. Select this account type if you are setting
up accrued income that customers owe.
SETTING UP CUSTOMER DEFAULT INFORMATION
Defaults are information you enter one time that will automatically appear in
windows or is automatically used by the system.
Entering Customer Defaults
 Default information is automatically used for each new customer you enter.
 From the Maintain menu, select Default Information; then choose
Customers.
 Customer defaults are separated by five tabs: Terms and Credit, Account
Aging, Custom Fields, Finance Charges, and Pay Methods.
ADDING A CUSTOMER OR PROSPECT RECORD

Prospect: Select if this record is a potential customer.

From the Maintain menu, select Customers/Prospects
Enter a new customer ID, and complete the necessary customer
information.
select the Save button.
In addition to customer name and ID, other customer information to be
filled
1. General
2. Sales default;
3. Payment default;
4. Custom fields and
5. History
 SETTING UP CUSTOMER SALES TAXES

 When recording sales to customers, you are responsible for

charging them sales tax, which you are in turn responsible for
paying to the appropriate sales tax authorities
1. First, set up a vendor to whom you send sales tax revenue.
2. Set up individual Sales Tax Authorities. state tax/federal tax.
3. Set up Sales Tax Codes, which are made up of sales tax
authorities and indicate the total percentage of tax on a sale. For
example, 15% state tax and federal tax.
4. Enter or select the Sales Tax Payable G/L account
5. Click finished
 *UNIT 4
ACCOUNT PAYABLE
 Accounts Payable

 Accounts Payable:- Represents balances owed to vendors

for goods, supplies, and services purchased on open
account.
 Accounts payable are used in accrual-based accounting,
are generally due in 30 or 60 days, and do not bear
interest.
 SETTING UP VENDOR DEFAULTS

Entering Vendor Defaults

 Select vendor Default Information from the Maintain Menu, and choose
Vendors. The vendor defaults window will appear.
 The following are the options on the folder Tabs in which you can define vendor
default information.
Payment terms
Account Aging
Custom Fields
1099 Settings
Steps to set up vendor
 From the Maintain menu, select Vendors.
 Enter a new vendor ID, and complete the necessary vendor information.
When you're finished filling in the window, select the Save button
 ACCOUNT PAYABLE TASKS

Accounts payable has different tasks to help you manage the

business with your vendors such as:-
 Purchase Orders
 Purchases/Receive Inventory
 Select for Payment
 Payments
 Write Checks
 Vendor Credit Memo
ENTERING A VENDOR PURCHASE ORDER
Purchase order: - is a document containing a list of items or
services you want to buy from a vendor.
Steps to enter a purchase order
To enter a purchase order, do the following:
 From the Tasks menu, select Purchase Orders.
 Enter or select the vendor ID.
 When the vendor is selected, vendor default information
including name, remit address, shipping method, and payment
terms.
RECEIVING INVENTORY ON A PURCHASE ORDER
After you have entered a purchase order for your vendor, the
next step is to receive the inventory for that purchase order as
it arrives. You can receive less than or more than the originally
ordered quantity.
 From the Tasks menu, select Purchases/Receive Inventory.
 Enter or select the vendor ID.
 If you have open purchase orders with this vendor, the Apply
to Purchase Order # tab displays in front.
 Enter the vendor's invoice number in the Invoice # field.
 PAYMENTS

Steps to Enter a Payment to Vendor Invoices

 From the Tasks menu, select Payments.
 Enter or select the vendor ID that you want to pay.
Enter or select the cash account from which you will be writing
the check
 *UNIT 5
Inventory
 Inventory

Inventory represents the quantity (value) of goods

on hand and available for sale at any given time.
Inventory is considered to be an asset that is
purchased, manufactured (or assembled), and sold
to customers for revenue.
Tracking inventory in Peachtree is basically a three-step
process:
 Enter the item information, including sales, inventory, and
cost of sales accounts.
 Use item codes when entering purchases and sales.
 Enter inventory adjustments if necessary.
Peachtree has four different types of cost methods
for inventory:
 Average Cost
 LIFO (last in, first out)
 FIFO (first in, first out)
 Specific Unit (Peachtree Premium only)
Once you select a costing type for an item and select
Save, you cannot change it.
SETTING UP INVENTORY, ENTERING INVENTORY
ITEM DEFAULTS
 
Default information is information that automatically
appears in windows, or is automatically used by the system.
The information on the inventory item default screen is
displayed as tabbed folders (General, ordering, GL
Accts/Costing, Taxes/Shipping, Custom Fields, and Price
Levels) with a label on each tab.
 The General tab has one option on it; select UPC / SKU -
Universal Price Code/Stock Keeping Unit)
The Ordering tab has four subgroup options;
1. Quantity Available
2. Sales Invoice \ Receipt Out of Stock Warning Message:
3. Sales Order Out of Stock Warning Message:
4. Auto Creation of Purchase Orders:
 The GL Accts/ Costing tabs have the following :
 G/L Sales Account (4101):
 G/L Inventory/Wage Expense Account(1301):
 G/L Cost of Sales Account(5101): This is a Cost of Sales type
account.
 Costing: (not in First Accounting): This identifies the default
method (FIFO, LIFO, Average, or Specific Unit Cost).
*The End
Thank you