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end-of-year adjustments. In the General Journal you distribute the debits and
the credits. In other journals, Peachtree Accounting automatically distributes
the entry for you.


General Journal Entry
Our sample company, Bellwether Garden Supply, has two checking accounts.
One is used for disbursements (accounts payable) and the other is used for
payroll. Let™s transfer $5000.00 from the Regular Checking account to the
Payroll Checking account to cover an upcoming payroll run.
1 From the Tasks menu, select General Journal Entry.




Press e to accept the displayed date in the Date field.
2
The cursor moves to the Reference field. You could type anything here to
identify the journal entry.
Type Transfer101 and press e. The cursor moves to the first Account
3
No. field.

4 Type the account number for the Regular Checking Account”1˜2˜˜ and
press e.




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Lesson III”General Ledger
Accounting Periods


5 Enter the following description: Transfer from Regular Checking to
Payroll Checking and press e twice to move to the Credit field.

6 We are decreasing this account by $5000.00, so type 5˜˜˜.˜˜ and press
e twice.
We could have entered the debit for the payroll account first. However, it
makes no difference.
Notice that the Totals field in the lower right corner now displays
5000.00 beneath the Credit column of the table. The Out of Balance field
totals 5000.00. To complete the entry and remain in balance, this total
must equal zero (debits equal credits).
Once you pressed e twice, the cursor moved to the Account No. field
on the second line to begin the new line item entry. Now we are going to
enter the offsetting debit ($5000.00 to the Payroll Checking Account).
Type 1˜3˜˜ and press e. The Payroll Checking Account appears in the
7
account description area.

8 Accept the Transfer from Regular Checking to Payroll Checking
description by pressing e and move to the Debit field.

9 We are increasing the balance of the account by $5000.00, so type a debit
amount of 5˜˜˜.˜˜ and press e twice.
Notice the Totals field now displays 5,000.00 in the Debits column. The
Out of Balance field now displays ˜. This means the journal entry is in
balance and can be posted.
10 Select Post to record this journal entry.

11 Press q to close the window.


Accounting Periods
Accounting periods are set up when you create your company during New
Company Setup. Once you have defined your accounting periods, you cannot
change the structure of the periods. You can only change the current
accounting period, moving forwards or backwards within the structure
already established.
Peachtree Accounting allows up to 26 open periods. This allows you to have
last year™s history available for editing or adjusting throughout the current
fiscal year. You can work in the second year without closing the first year.
® To view the current accounting period, look at the status bar.




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If you do not see the status bar, turn on the option by selecting View Status
Bar from the Options menu.
Note
Bellwether Garden Supply is set up with 12 accounting periods per fiscal year.
The current accounting period is Period 3”3/1/03 to 3/31/03. If the current
accounting period was February 2004, then the status bar would read Period
14”2/1/04 to 2/28/04.
The date to the left of the current accounting period is the system date.
Normally this represents today™s date or the current date of your computer™s
clock. However, in our sample company, we have set this date to always be
3/15/03 for tutorial purposes.


Changing Accounting Periods
At the end of each accounting period you should change to the next
accounting period. Peachtree Accounting does not actually close accounting
periods. You change accounting periods at will, moving back and forth
through the fiscal year. When you post a transaction, Peachtree Accounting
selects the correct period based on the transaction date.
This brings up an interesting point. You cannot post a new transaction to a
previous accounting period. This feature ensures that a new entry will not be
inadvertently posted to a period for which financial statements have been
reported. However, you can post future transactions while remaining in the
current accounting period.
For example, the current accounting period in our sample company is Period
3”3/1/03-3/31/03. You can post new transactions dated 3/2/03 or 5/4/03.
However, you cannot post a new transaction dated 2/6/03 because it™s in the
past. The only way you can add this old transaction is to change accounting
periods back to Period 2”2/1/03-2/29/03”then enter it.
Entering future transactions is a powerful feature and can save you time. This
is especially true if you are approaching the end of a current accounting
period and are not quite ready to change. It also allows you to post recurring
transactions.




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Lesson III”General Ledger
Accounting Periods


There are a couple of additional rules to consider when changing accounting
periods.
All transactions currently entered in the General Ledger must be

posted before you can change accounting periods. If you are using
real-time posting, this is already done for you. If you are using batch
posting, then you must post all journals before moving forward.
(Our sample company uses real-time posting, so this rule does not
affect us.)
If you are using a network, all other Peachtree Accounting users

must exit the company data before you can change accounting
periods. Basically this means only one user can be working in the
company when changing accounting periods.
Let™s pretend it™s the end of the month. We are ready to change accounting
periods to move ahead.
1 From the Tasks menu, choose System, and then select Change Accounting
Period.

This drop-down list
box displays the
current accounting
period.
The Current Calendar year
field refers to the current
payroll year of the
company.


2 Select Period 4”Apr 1, 2003 to Apr 30, 2003 from the drop-down list, and
then select OK.

3 Peachtree Accounting asks if you would like to print reports before
continuing. Select Yes.
Generally it is a good idea to print and file reports before you change
accounting periods. This maintains an audit trail for your records. You
can select which reports you want to print. You should also print open
invoices and checks.
4 To save time and paper, let™s not print any reports at this time. Select
Cancel. You will return to the Change Accounting Period window.

5 Select Period 4”Apr 1, 2003 to Apr 30, 2003”again from the drop-down
list, and then select OK.




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6 Select No when given the option to print reports.
Peachtree Accounting checks for unposted entries and changes your
accounting period. Notice the status bar now displays the current
accounting period as Period 4”4/1/03 to 4/30/03. You can begin
entering transactions for period 4 or later. You cannot enter new
transactions dated prior to 4/1/03.
For tutorial purposes, let™s change back to period 3 to prepare for the
next lesson.
7 From the Tasks menu, choose System, and then select Change Accounting
Period. The Change Accounting Period window appears.

8 Select Period 3”Mar 1,2003 to Mar 31,2003”from the drop-down list
and then select OK.
When changing to previous periods, Peachtree Accounting does not ask
if you want to print reports. (This only occurs when you move forward.)

Review of Lesson III
Let™s review some of the things we learned in this lesson.
• You can create your own chart of accounts from scratch. However we
recommend you use a chart of accounts from one of the sample
companies as a template”keeping the basic structure, but editing
and adding individual accounts to suit your needs.
• You can only enter chart of account beginning balances in the
current fiscal year if no transactions have been posted to the General
Ledger. If transactions are posted, you must enter prior-year
adjustments.
• Peachtree Accounting operates on a forced-balance trial balance. The
trial balance must always balance or equal zero (˜.˜˜). This means
the sum of assets and expenses must equal the sum of liabilities,
equity, and income.
• When entering budget amounts for an account, enter the yearly
total, and then select the Allocate button to have Peachtree
Accounting subdivide and distribute budget amounts for individual
accounting periods throughout the year.
• Peachtree Accounting offers two methods for recording transactions
to the General Ledger”real-time posting and batch posting. You can
change posting methods at any time.
• The General Ledger contains all journal transactions posted using
the chart of accounts and keeps track of account balances.



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Lesson III”General Ledger
Review of Lesson III


• The General Journal contains transactions that establish and adjust
the chart of account balances. It is also used to transfer funds from
one account to another or make correcting entries. In the General
Journal you distribute the debits and the credits. In other journals,
Peachtree Accounting automatically distributes the entry for you.
Make sure the Out of Balance amount equals zero (˜), or you can™t
post the General Journal entry.
• At the end of each accounting period you should change to the next.
Peachtree Accounting does not actually close accounting periods.
You change accounting periods as needed, moving back and forth
through the fiscal year.
• You cannot post a new transaction to a previous accounting period.
However, you can post future transactions while remaining in the
current accounting period.
• All transactions currently entered in the General Ledger must be
posted before you can change accounting periods.
Now that you have been introduced to the General Ledger area of Peachtree
Accounting, you are ready to proceed to Lesson IV”Accounts Payable.
If you would like to quit Peachtree Accounting, follow these steps.

Quit Peachtree Accounting
® From the File menu, select Exit.
For a keyboard shortcut, you could select a+4 to exit Peachtree
Accounting as well.
This closes the current company and exits Peachtree Accounting.




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Lesson IV”Accounts Payable

Tu In this lesson you will learn about entering vendors and using the accounts
payable functions of Peachtree Accounting.

You will learn how to:
• Update a vendor record
• Enter a purchase order
• Receive inventory and record the purchase invoice

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