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• Display a journal entry using Accounting Behind the Screens
• Make a payment for the purchase invoice
• Print a disbursement check
• Analyze payments to vendors
• Hide and display G/L accounts in task windows
Estimated Lesson Time: 30 Minutes

Beginning the Lesson
If you are continuing from Lesson III, follow the steps below before
proceeding with the lesson.
1 From the Options menu, select Global.

2 In the Hide General Ledger Accounts section of the Accounting tab, select
Accounts Payable. Make sure the Accounts Receivable and Payroll Entry
check boxes are clear (not checked).

The rest of the global options are set up properly from the previous lesson, so
you can now proceed with the lesson.
If you are just starting the lesson, do the following:
1 Start Peachtree Accounting and open up the sample company, Bellwether
Garden Supply.

2 If the Action Items window appears, close it for right now.

3 From the Options menu, select Global. The Maintain Global Options
window appears.
You need to make sure that the tutorial global options are set up

Lesson IV”Accounts Payable
Accounts Payable Tasks

4 In the Accounting tab, do the following:
Select Manual Decimal Entry and enter 2 as the number of decimal

• In the Hide General Ledger Accounts section, select Accounts
Payable. Make sure the Accounts Receivable and Payroll Entry check
boxes are clear (not checked).
• Select the “Warn if inventory item is out of stock” option.
• Select the “Recalculate cash balance automatically in Receipts and
Payments” option.
5 In the General tab, do the following:
• Make sure the Line Item Entry Display option is set to two lines.
• Select both Smart Data Entry options by putting check marks in the
“Automatic field completion” and “Drop-down list displays
automatically” check boxes.
You could have other global options selected as well. However, the above
options are the only ones that directly affect this tutorial.
6 When finished, select OK to close the Maintain Global Options window.

Accounts Payable Tasks
Processing vendor transactions in Peachtree Accounting is, at most, a five-
step process. The number of steps may vary depending on your needs.

Tasks Procedure
Maintain Vendors Set up a vendor

Purchase Orders Order items from your vendor

Purchase Invoices Receive inventory or services and/or
apply purchase order to purchase

Payments Apply a disbursement payment against
the purchase invoice or record a cash

Print Checks Print the disbursement check

You may use all five steps or, in some cases, only one step. For example, if you
make a cash purchase, you can enter this directly in the Payments window
(without even creating a vendor).

3 Tutorials
Getting Started Guide

Maintain Vendors
First we are going to select the vendor from whom we are going to order items.
Then we will change one item of information”the discount percentage
offered for timely payment.
1 From the Maintain menu, select Vendors.

The cursor is in the Vendor ID field. The magnifying glass indicates a
lookup box, which is a field with a lookup list attached.
2 With the cursor in the Vendor ID field, type a question mark.
Alternatively, you could select the magnifying glass button to display the
vendor lookup list.
The vendor we will use for this tutorial is Arbor Wholesale Suppliers.
3 Double-click on ARBOR-01”Arbor Wholesale Suppliers to select it from the
You could also select ARBOR-01 and press e.

Lesson IV”Accounts Payable
Maintain Vendors

Entering a Discount
This vendor is offering our company a 5% discount for paying bills within 15
days of the purchase invoice date. This exceeds our standard vendor terms of
payment for Bellwether Garden Supply, which is 2% in 10 days. However, we
have been given this incentive because we are a good customer to them.
1 Select the Purchase Defaults tab.
Notice that most of the information in the window changes, but some
remains the same”the Vendor ID, Name, and the Inactive check box.

2 Select the Terms arrow button at the bottom of the window.
An arrow button indicates additional information can be accessed
related to the subject.

Clearing the Use
Standard Terms
check box allows
you to enter
unique conditions.

3 Click the Use Standards Terms check box to clear this option. There should
be no mark in the box.
When the Use Standard Terms check box is selected, the other term
options are dimmed. Clearing the check box allows us to make changes
to this vendor™s terms.
Move the cursor to the Discount in # of days field. Type 15 and press e.
The cursor moves to the Discount % field.

Type 5.0 and press e.

6 Select OK to save these entries. Next, select the Save button to update the
vendor record.

Press q to close the Maintain Vendors window.

3 Tutorials
Getting Started Guide

Entering a Purchase Order
Purchase orders are used to place an order for items you intend to purchase
from a vendor. When you post a purchase order, you do not actually update
accounting information. In an accrual-based company, the accounting
information is updated only when you receive the items on the purchase
order through the Purchases/Receive Inventory window.
1 From the Tasks menu, select Purchase Orders.

The cursor is in the Vendor ID field. Do you remember the Vendor ID
for Arbor Wholesale Suppliers? Don™t worry if you don™t” the program
does. The Vendor ID field is also a lookup box.
Type A (capital A) and press e.
If you have the Automatic field completion (a Smart Data Entry option)
set up in Global Options window, the Vendor ID ARBOR-01”Arbor
Wholesale Suppliers appears. (For more information, refer to Lesson
II” “Using Smart Data Entry” on page 68.)
If the Smart Data option is turned off, select the magnifying glass icon or
type ? to access the lookup list for vendors. Select ARBOR-01”Arbor
Wholesale Suppliers and press e.
The cursor moves to the PO # field. Peachtree Accounting supplies PO
numbers for purchase orders it prints. You would enter a number here
only when recording a previously entered purchase order that you don™t
want to print.

Lesson IV”Accounts Payable
Entering a Purchase Order

We want to print the PO, so press e to move to the Date field.

The Date field defaults to the System Date. This date will print on the
purchase order as the date you want to issue the purchase order. It does not
represent the purchase invoice date or the date you may have entered the
purchase order in the computer.
Peachtree Accounting permits flexibility when entering dates. For example, to
enter January 1, 2003, type 10103 and Peachtree Accounting will format the
date correctly. You can even enter the day portion of the date and the program
formats the date based on the current accounting period. For example, if you
are operating in December 2003, type 4 with the date field selected and press
e, Peachtree Accounting would format the date as Dec 4, 2003. This can
save time during data entry.
We™ll pretend it™s March 27, 2003.
In the date field type 27 and press e. The cursor moves to the Good
Thru date field. Accept the 30 day expiration and press e. The cursor
moves to the Ship To address field.
The shipping information and terms are correct. We are going to skip
these items.

Entering Transaction Lines
There are two ways to enter transaction lines for purchase orders and invoices:
By Inventory Item: You can set up inventory items through

Maintain Inventory Items, making it easy to track items or services
purchased or sold. Setting up these items also allows Peachtree
Accounting to complete distribution entries for you, saving you
By Account Number: If there is no line item set up for a particular

item you intend to purchase (or sell), or if you do not intend to use
the Inventory module, you can type a description and distribute it
directly to the proper General Ledger account.
We are going to use the first method to purchase some inventory items.
You might use the second method when purchasing items like office
supplies or recording a telephone bill.
5 With your mouse, select the Quantity field.
Our stock levels are low for a couple of items”Cilantro Seeds and Pansy

3 Tutorials
Getting Started Guide

In the first line, Type 12 in the Quantity field and press e. The cursor
moves to the Item field.

7 Select the magnifying glass button to open the lookup list for inventory
You can set up a list like this for your own products or services in the
Maintain menu. See “Lesson VII”Inventory” on page 145.
8 As an exercise, select the Sort button from the inventory lookup list.
Notice this changes the order of the list from being listed by ID to being
listed by item name. This feature is available for all lookup lists.
9 Double-click SEHB-32120”Cilantro Seeds.
The item description appears in the Description field. Notice that the
description changes to read, “Catalog #:102030: Cilantro Seeds.” When
setting up inventory items, you can enter two types of descriptions for
the same item”one for purchases and one for sales. In this example, we
need to refer to the vendor™s catalog number when ordering the item.
However, when we sell the item it is described as “Bell-Gro Basil Cilantro
Seeds (Long Standing)”.
10 Press e twice to accept the description and unit price and the cursor


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