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You return to the Purchases/Receive Inventory window.


Note: You cannot print purchase invoices, only purchase orders.
18 Close the Purchases/Receive Inventory window by pressing q.




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Lesson IV”Accounts Payable
Payments


Payments
Typically, you would enter purchase invoices throughout the month so that
you would have a record of what you owed. Then, at some later date, you pay
the invoices. We are going to enter a payment for this purchase invoice.
1 From the Tasks menu, select Payments.




You have the option of writing a disbursement check to a vendor or a
customer. Usually payments are made to vendors. However, you might
write a check to a customer when issuing a refund.
2 Select Vendor ID as the payment type, type ARBOR-01 (the vendor ID for
Arbor Wholesale Suppliers) in the Vendor ID field, and press e. The
cursor moves to the Pay to the Order of field.
Notice the Apply to Invoices tab now displays the purchase invoice
15777 we just entered. Other outstanding invoices for this vendor are
also listed here.
With the cursor in the Pay to the Order of field, you could change the
vendor address by selecting the arrow button.
If you wanted to enter a cash purchase (for example, food for an office
lunch) without creating a vendor ID or purchase invoice, you could skip
the Vendor ID field and enter the name of the one-time payee in the Pay
to the Order of field.




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Press e to accept the vendor name and address. The cursor moves to
3
the Check Number field.
We are leaving the check number blank. When we print the check,
Peachtree Accounting will then assign the next check number in
sequence. If you enter a check number, Peachtree Accounting assumes
you are entering a manual check or a previously-printed check, and will
print the word “DUPLICATE” on the check if you choose to print it.
Press e to leave the Check Number field blank. In the Date field, type
4
29 and press e. The date formats to Mar 29, 2003. The cursor moves to
the Memo field.
Peachtree Accounting automatically fills this field with the vendor
account number (set up in the Maintain Vendors window). You could
enter other information in this field.
Press e to accept the Memo field. The cursor moves to the Cash
5
Account field.

The Cash Account field should display Regular Checking. Below is the
current balance (as of the check date 3/29/03). If question marks display,
select the Recalculate (Recalc) button to temporarily display the cash
balance. This displayed balance will not change until you press the
Recalculate button again.


Peachtree Accounting offers you the option of automatically displaying the
current Cash Account balance on the Payments, Receipts, and Payroll Entry
windows. From the Options menu, select Global and turn on the Automatic
Note
Recalculate cash balance automatically in Receipts and Payments option.
Each time you enter Receipts, Payments, or Payroll Entry windows and enter
a transaction, the displayed cash account balance is updated.
At this point, you can select invoices to pay. Optionally, you can make a
payment against an expense account. When you select the Apply to
Expenses tab, the outstanding invoices for this vendor will temporarily
disappear, and the columns in the distribution area will be different
(similar to the purchase invoice). We are going to apply this
disbursement against the invoice we just entered.
6 Click the Description column beside invoice 15777. You could enter a brief
description to appear on the check stub if necessary. For the tutorial, we
won™t enter a description. So all you have to do now is select the Pay check
box in the far right column.




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Lesson IV”Accounts Payable
Payments




Notice the amount box on the check form now displays $8.55. This is
$9.00 minus the 5% discount we established earlier for Arbor Wholesale
Suppliers.
The amount box keeps a running total of the vendor invoice(s) you pay.
You can only adjust the amount it shows indirectly, by entering
payments in the Amount Paid field.
In addition to Purchase Invoice 15777, you may see other outstanding
invoices due for this vendor. You can elect to pay them as well or make a
partial payment on a single invoice. You may also note that these
invoices may or may not qualify for purchase discounts based on the
check date entered.

7 Select the Journal button to display the Accounting Behind the Screens
window.
The Accounting Behind the Screens window appears. This window
shows all transaction distributions.
8 Select OK to return to the Payments window.

9 Select the Post button to record and post this payment.
You could also select the Print button here to both print the check and
post the disbursement. However, we will print the check in the next
section.
10 Press q to close the Payments window.

Disbursement Transactions
When you post this payment (in an accrual-based company), the Accounts
Payable account is debited for the full invoice amount, which balances the
credit when we entered the invoice. The cash account is decreased by the
amount of the check, and the Discounts Taken account is decreased by any
discount that might apply. (You establish the account for discounts taken
from the Maintain menu by selecting Default Information, and then
Vendors.)




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Printing Checks
You can print a batch of checks, or print checks individually, as you enter
them (using the Print button on the Payments window). Because Peachtree
Accounting prints a form for checks, you cannot choose to display the check.
You can, however, print a check register prior to printing a batch of checks to
ensure accuracy.
1 From the Reports menu, select Accounts Payable.

2 Scroll down the report list and open the Disbursement Checks forms folder
by double-clicking it.

3 Scroll down and single-click any of the forms.
If you purchased preprinted forms, you might select the AP Preprint 1
Stub form.

4 Select the Print button. The print forms (AP Preprint 1 Stub) window
appears.
From here you can filter the checks that print. We™ll set the Filter options
to print only checks for Arbor Wholesale Suppliers.
The first check number may display 10211 (or possibly a different
number depending on whether you started this tutorial with a “fresh”
copy of Bellwether Garden Supply). This is the next check number in
sequence, tracked and assigned by Peachtree Accounting. Normally, you
would check your blank preprinted form to verify the next available
check number and enter it here if it is different. For right now, accept the
default since we are only printing a practice check on plain paper.
5 The Cash Account displays 10200” Regular Checking. In the Last date for
which checks will print field, type 3/29/03 and press e.

6 In the Filter Range list, click in the From column, beside Vendor ID.

Type ARBOR-01, the code for Arbor Wholesale Suppliers. Press e. In
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the To column type the same code.
Now only outstanding checks for Arbor Wholesale Suppliers dated
3/29/03 or earlier will print.
8 Select OK to accept the filter options.




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Lesson IV”Accounts Payable
Printing Checks


9 The Print window appears. Confirm the print setup and select OK to print
checks.
After the disbursement check is printed, a message box displays asking if
it printed properly. In real life, this is a very important question. When
you answer Yes, Peachtree Accounting updates the check number and
flags the check as printed, so it will not print again.
10 Select Yes.

11 Press q to close the Select a Report window.

Reprinting a Check
After printing checks, they are assigned check numbers. If you wanted to
reprint a check, it would print with the word “duplicate” on it. However, in
the instance that you need to reprint an original check, you could follow these
steps:
1 From the Tasks menu, select Payments.
Peachtree displays the Payments window.

2 Select the Edit button from the toolbar.
The Select Payment window appears.
3 Select the payment we just entered for Arbor Wholesale Suppliers and then
select OK.
The payment appears.
4 Delete the check number.

5 Select the Print button.
This will use the next check number in the sequence and print the check.


If you wanted to enter and print checks for several vendors at one time, you
can save data entry time by using the Select for Payment option from the
Tasks menu.
Note




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Display the Vendor Ledger
Let™s display this vendor™s ledger to review the journal entries that we just
made.
1 From the Reports menu, select Accounts Payable.

2 Select Vendor Ledgers, and then select the Screen button.
This vendor uses a type code of SUPPLY. We will use this as a mask,
limiting the report to only vendors with this type code.
3 Beside the Vendor Type in the Filter list, select Range in the Type column.

4 Type SUPPLY in the From and To columns.
Similar to ID codes, type codes are case sensitive. Be sure to type
SUPPLY in capital letters.
5 Select OK to display the report.
The Vendor Ledgers report for all SUPPLY type vendors displays.




The accounts payable subsidiary account for Arbor Wholesale Suppliers
was credited for $9.00 (the amount of their invoice #15777). When we
posted the payment, the program debited this vendor™s account for our
check #10211, clearing the transaction to zero.
Select the Close button, to close the report window. Press q to close the
6
Select a Report window.




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Lesson IV”Accounts Payable
Display or Hide General ledger Accounts


Display or Hide General ledger Accounts
To simplify data entry, you have the option to hide General Ledger accounts
on various task windows. When the General Ledger accounts fields are not
visible, it is assumed that the default accounts you have set up will be used
when recording the transaction. However, you can still change G/L accounts,

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