U SING A CCOUNTS P AYABLE
ccounts Payable transactions can be entered in a variety of ways.
Purchase Orders can be entered and printed to request products or services from your vendors. The Purchases/Receive Inventory task allows you to fill purchase orders or enter bills directly. Purchase invoices/vendor bills can be paid using the Payments task. You have the option of paying one vendor at a time or paying a group of vendors. Each transaction updates the journals, which in turn update the General Ledger. However, the Purchase Orders Journal does not update the General Ledger.
Accounts Payable reports organize the transactions entered and display the information in a way that helps you better manage your vendor-related tasks.
Also, the total payments for vendors are tracked in Peachtree so you can print 1099 forms at year-end. The flow of Accounts Payable tasks is illustrated below:
U S I N G A C C O U N T S P A Y A B L E Entering Purchase Orders
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. . . . . . . . . E N T E R I N G P U R C H A S E O R D E R S
On the Purchase Orders window you can enter and print purchase orders for your vendors. Purchase orders can be edited by adding or removing line items. Peachtree automatically closes a purchase order when all the items on it have been received, but also gives the option of manually closing it if necessary. To enter a purchase order, select Purchase Orders from the Tasks menu.
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P u r c h a s e O r d e r s W i n d o w
The Purchase Orders window is used to enter and print purchase orders for inventory and supplies ordered from vendors. Fields of interest are explained below:
• Good thru: By default, this date is one month past the purchase order date, but you can enter a different date.
• PO #: If you plan to print the purchase order, leave this field blank. You will enter it during the print routine. If this PO was manually written, enter the purchase order number.
• Close PO: Select this check box to close a purchase order.
A purchase order is automatically closed after all items are received.
• Drop Ship: Select this check box to specify a drop shipment from a vendor directly to a customer.
- Customer ID: Enter the ID of the customer receiving the drop shipment.
- Bill to Address/Ship to Address: When specifying a drop shipment, select the address where the drop shipment will be sent.
• Unit Price: By default, this is the last purchase cost for the item. New items that have not been ordered before and do not have beginning balances use the cost assigned to them in the Last Unit Cost field on the Maintain Inventory Items window. If necessary, this price can be changed to a different amount.
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• Job: Enter a job if the transaction line needs to be applied to a job. The amount will notbe applied to the job until the items are received.
Inventory set up as stock items or assemblies cannot be applied to a job on a purchase order. These items should be applied to a job when the customer is billed for the items or when an inventory adjustment is entered to remove the items from stock.
A C T I V I T Y 2 7 - E N T E R I N G A P U R C H A S E O R D E R
More printer paper needs to be ordered from Computers R Us. Follow these steps to enter a purchase order:
1 Select Tasks, Purchase Orders from the menu bar.
2 Select 01comp from the Vendor ID lookup list.
3 Enter a Date of 02/11/08.
4 Since we will not be printing this purchase order, enter a PO # of 1001.
If you plan to print any transaction, leave the reference number blank and allow the system to assign a reference number when the transaction prints. If you enter a reference number and print the transaction, the system assumes you manually created the
transaction, and the word “Duplicate” will print on the transaction.
5 Now, enter the information for the item being ordered. Enter 5.00 in the Quantity field.
6 The item purchased is not tracked in inventory, so skip the Item field.
7 Enter a Description of Laser printer paper, item 101A.
8 Enter GL Account 71000.
9 Enter a Unit Price of 12.50.
10The Amount is calculated by multiplying the Quantity by the Unit Price. The Amount should be 62.50.
11Click Save to complete this transaction.
A C T I V I T Y 2 8 - E N T E R I N G A D R O P S H I P M E N T
A set of books needs to be ordered for a customer. These books will be ordered from Computers R Us and shipped directly to the customer, Langley Enterprises. Follow these steps to enter a drop shipment:
1 On the Purchase Orders window, enter a Vendor ID of 01comp.
2 Enter 02/12/08 in the Date field.
3 Enter PO # 1002.
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4 The Ship To Address currently shows Abracadabra’s address. To ship the items directly to the customer, select the Drop-Ship check box. The Customer ID field appears to the right of the Vendor ID field.
5 Select langley from the Customer ID lookup list.
6 Select Bill to Address from the drop-down list on the Ship To field.
7 Enter a Quantity of 5.00 and enter an Item of bintro1.
8 The PO Total should be 110.00.
9 Click Save to complete this purchase order; then click Close.
E d i t i n g T r a n s a c t i o n s
Posted transactions can be fully edited throughout Peachtree if the following conditions are true:
• The transaction is posted in one of the currently available accounting periods.
• The transaction is a purchase order or sales order not yet filled.
• The transaction is an invoice with no associated payments.
To edit a transaction, select List from any transaction window. The associated list window opens, listing the transactions.
You can either select the transaction you need to edit and click Open, or simply double-click the transaction you need to edit. The transaction opens in the window. Make any changes necessary; then click Print to reprint the transaction or click Save to save changes and update the General Ledger.
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Purchasing and Receiving Inventory/Entering Bills
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. . . . . P U R C H A S I N G A N D R E C E I V I N G I N V E N T O R Y / E N T E R I N G
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B I L L S
The Purchases/Receive Inventory window allows you to receive items on a purchase order and enter vendor invoices and bills. To access this window, select Purchases/Receive
Inventory from the Tasks menu.
P u r c h a s e s / R e c e i v e I n v e n t o r y W i n d o w
The Purchases/Receive Inventory window is used to enter bills from vendors and to receive inventory that arrives from suppliers. The header area contains fields for vendor-specific information for the transaction. The Apply to Purchases tab is used either to record vendor invoices that do not have a purchase order on file or to add items when you
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receive more items than were ordered. The Apply to Purchase Order # tab is used to receive items from a purchase order. Fields of interest are explained below:
H E A D E R F I E L D S
• Drop Ship: Select this check box to specify a drop shipment from a vendor directly to a customer.
- Customer ID: Enter the ID of the customer receiving the drop shipment.
• Waiting on Bill: Select this check box if a shipment of inventory is received without a vendor invoice. This allows the receipt to be recorded and inventory to be updated. The invoice is not available for payment until the transaction is edited by selecting this check box and saving again.
• Terms: Shows the vendor terms as set up in the vendor record. To change the terms, click the arrow button to open the Terms Information window. Make any changes and click OK.
A P P L Y T O P U R C H A S E S T A B
If you select a vendor with no open purchase orders, the Apply to Purchases tab appears by default. This tab is used to enter purchases that did not originate on a purchase order. In
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addition, if items were received but not included on the original purchase order, you canadd them here. Fields of interest are described below:
• Unit Price: Shows the last purchase cost for the item selected. New items that have not been ordered before and do not have beginning balances use the cost assigned to them in the Last Unit Cost field on the Maintain Inventory Items window. If necessary, this price can be changed to a different amount.
• Job: Enter a job if the transaction line needs to be applied to a job.
Inventory set up as stock items or assemblies cannot be applied to a job on a purchase.
These items should be applied to a job when the customer is billed for the items or when an inventory adjustment is entered to remove the items from stock.
F O O T E R F I E L D S
• Amount Paid at Purchase: Enter the payment amount here to make a partial or full payment to an invoice. Two additional fields appear when an amount is entered in the Amount Paid field.
- Reference: Enter a reference number for the payment transaction in this field. A reference number must be entered before the transaction can be posted.
- Cash Account: Select the cash account to which the payment amount will be posted.
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A C T I V I T Y 2 9 - E N T E R I N G A P U R C H A S E
The monthly bill for work done by Calvert Copyright services has arrived. This bill will be entered now and paid at a later time. Follow these steps to enter a purchase:
1 Select Tasks, Purchases/Receive Inventory.
2 Enter 01copy for the Vendor ID.
3 Enter 02/12/08 in the Date field.
4 Enter 5342 in the Invoice # field.
5 Now, enter the items on the bill. The items listed are service items billed at a flat rate. Because the items are not tracked in inventory, the Quantity, Item, and Unit Price fields will remain blank:
6 The Invoice Total should be 1054.16.
7 Click Save.
8 Click Close.
A C T I V I T Y 3 0 - E N T E R I N G A R E C U R R I N G I N V O I C E
Abracadabra leases office space from Peachtree Leasing. The amount paid is the same each month, so a recurring purchase invoice will be entered. Each month, when checks are printed, the monthly lease payment will be available for payment. Follow these steps to enter a recurring purchase invoice:
1 Select Tasks, Purchases/Receive Inventory.
2 Enter 03lease for the Vendor ID.
3 Enter a date of 02/20/08. Each recurring invoice will be dated the 20th of each month.
4 Leave the Invoice # field blank. The Invoice # will be assigned when the invoice is recurred.
5 Skip the Quantity and Item fields. Enter Office space lease in the Description field.
Description GL Account Amount
Copyright research for web site 50000 543.45
Web site name search service 50000 145.00
Legal review of copyright statement 50000 365.71
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6 Enter 1700.00 in the Amount field.7 Click the Recur button.
8 The invoice will recur indefinitely. On the Create Recurring Purchases window, select No end date in the Date Range area.
9 Enter lease-02 in the Begin with number field. The invoice for February will have an Invoice # of lease-02, the invoice for March will have an Invoice # of lease-03, and so on.
10Click OK to have the invoice recur; then click Close.
A P P L Y T O P U R C H A S E O R D E R # T A B
When you select a vendor who has one or more open purchase orders, the Apply to Purchase Order # tab appears. Fields of interest are described below:
• Apply to Purchase Order No.: Select a purchase order from the drop-down list. All open purchase orders for the selected vendor are listed.
• Remaining: Displays the number of items that remain outstanding on the purchase order. This field cannot be changed on this window.
• Received: Enter the quantity of each item received. The purchase order will remain open until all items are received or until it is manually closed.
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• Job: Enter a job if the transaction line needs to be applied to a job.
Inventory set up as stock items or assemblies cannot be applied to a job on a purchase.
These items should be applied to a job when the customer is billed for the items or when an inventory adjustment is entered to remove the items from stock.
A C T I V I T Y 3 1 - R E C E I V I N G I N V E N T O R Y A G A I N S T A P U R C H A S E O R D E R
On February 15th, Abracadabra received invoice #10232 from Computers R Us. The items from purchase order 1002 were drop-shipped to Langley Enterprises. To enter this invoice, we need to indicate that the items ordered were received. Follow these steps to receive inventory against a purchase order:
1 Select Tasks, Purchases/Receive Inventory.
2 Select 01comp from the Vendor ID lookup list. The Apply to Purchase Order No. tab appears below, indicating that the selected vendor has open purchase orders.
3 Enter 02/15/08 in the Date field.
4 Enter 10232 in the Invoice # field.
5 Select purchase order 1002 from the Apply to Purchase Order No. drop-down list. The purchase order items list below.
6 Enter 5.00 in the Received field and press ENTER on the keyboard.
7 The Invoice Total and Net Amount Due should be 110.00.
8 Click Save to complete this transaction. Then, click Close.
U S I N G A C C O U N T S P A Y A B L E About Making Payments
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. . . . . . . . . A B O U T M A K I N G P A Y M E N T S
In Peachtree you have three methods of paying bills:
In Payments, you can apply payments to open invoices or directly to expenses. Use this method when you need to pay only one vendor.
In Write Checks, you apply payments directly to expenses. Use this method when paying bills that have no corresponding invoices.
In Select for Payment, the program selects invoices for payment based on specific criteria such as discount dates, due dates, and selected groupings of vendors. For more information on this feature, see the Peachtree Quantum 2009 Advanced Self-Study Guide.
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E N T E R I N G P A Y M E N T S / P A Y I N G B I L L S
Invoices and bills for individual vendors can be selected and paid using this option. To record payments, select Payments from the Tasks menu. You can also select Tasks, Bills, Pay Bills.
P a y m e n t s Wi n d o w
The Payments window can be used to enter cash purchases and disbursements that do not have associated vendor invoices/bills. It is also used to apply payments to vendor invoices entered as purchases. When a vendor ID is entered, all unpaid bills for the vendor appear.
You can choose to pay an entire invoice/bill or make partial payments. Credit memos and
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prepayments may also be applied to invoices on this window. Each tab is describedbelow:
H E A D E R F I E L D S
• Vendor ID/Customer ID: Select to enter a payment for a vendor or customer. Then, enter the ID for the vendor or customer being paid. To pay a vendor who is not in the vendor list, leave this field blank and enter the name in the Pay to the Order of field.
Choose Customer ID to issue a refund check to a customer.
• Check Number: If you plan to print the check, leave this field blank. You will enter it during the print routine. If this check was manually written, enter the check number.
• Memo: By default, the account number entered in the Maintain Vendors window will fill automatically for vendors set up in Peachtree. If necessary, you can enter a different memo line for the check.
• Cash Account: Enter the account from which funds are withdrawn when the check is written. This account number will be the last cash account used for a payment, but can be changed if necessary.
• Cash Account Balance: Displays the balance of the selected account as of the date of the check. This amount is updated when checks are posted.
If you see the word “Uncalculated” in the balance field, click the recalc button to the right to display the balance amount.
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A P P L Y T O E X P E N S E S T A B
When you select a vendor without any outstanding invoices/bills, the Apply to Expenses tab appears. The Apply to Expenses tab is used to enter prepayments and cash purchases.
Fields of interest are described below:
• Prepayment: Select this check box to enter an advance payment/deposit. A prepayment can be printed as a check or assigned a reference number. After a prepayment has been saved, it can be applied to one or more of the vendor’s outstanding invoices on the Apply to Invoices tab.
• Description: Displays the description for the item selected. You can change the description, or enter a description when receiving items not tracked through inventory.
• GL Account: Displays the account set up for the item selected. When you are ordering items not tracked through inventory, the account will be the vendor’s purchase account.
If necessary, enter a different account.
• Unit Price: Will be the last purchase cost for the item selected. New items that have not been ordered before and do not have beginning balances use the cost assigned to them in the Last Unit Cost field on the Maintain Inventory Items window. If necessary, this price can be changed to a different amount.
A P P L Y T O I N V O I C E S T A B
The Apply to Invoices tab lists all outstanding invoices for the selected vendor. Select invoices/bills to pay by selecting the Pay check box next to each one. When all invoices
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included on a check are selected, click Print to print the disbursement check immediately,or click Save to print the check later. Fields of interest are described below:
• Description: Enter a description for each invoice in this field. Text entered in this field prints on the disbursement check stub. The message “Waiting on Bill From Vendor”
appears in this field when an invoice has a Waiting on Bill status in Purchases/Receive Inventory.
• Discount: Displays the amount of the discount if the invoice qualifies for a discount. If necessary, the amount in this field can be changed. A discount amount cannot be entered for a partially paid invoice.
• Amount Paid: Enter the amount to apply to the invoice. When you enter an amount, the Pay check box will be checked automatically.
• Pay: Select this check box to pay the invoice in full.
A C T I V I T Y 3 2 - P A Y I N G I N V O I C E S
Some of the outstanding invoices need to be paid. One invoice for Computers R Us will be paid. Also, all invoices due in February for Calvert Copyright Services will be paid. Follow these steps to pay invoices:
1 Select Tasks, Payments.
2 When prompted to select a cash account, select National Bank Checking and click OK.
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The first time you enter a payment, you will be prompted to select a cash account. If you have already entered a payment, the Payments window appears.
3 Enter a Vendor ID of 01comp. Because there are invoices that need to be paid, the Apply to Invoices tab appears below.
4 If you do not want to print the check, enter a Check Number of 3285.
5 If you want to print the check, leave the Check Number blank.
6 Enter a Date of 02/24/08.
7 Select the Pay check box for Invoice 9884.
8 If you do not want to print the check, click Save.
9 If you want to print the check, click the Print button. Enter 3285 for the First Check Number, and click Print. The check will post automatically after it prints.
10Using these steps as a guide, pay the following invoices:
11If you do not want to print the check, click Save, then Close.
12If you want to print the check, click the Print button. Enter 3286 for the First Check Number, and click Print. Then click Close.
Vendor ID 01copy Check Number 3286
Date 02/24/08
Pay Invoice # 4321, 4359, 4598
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A P P L Y T O C U S T O M E R A C C O U N TIf you select a customer ID on the Payments window, the Apply to Customer Account tab appears. This tab can be used to record customer refunds.
Using the Apply to Customer Account tab in conjunction with the Credit Memo window in Accounts Receivable allows a issued credit memo and a
Using the Apply to Customer Account tab in conjunction with the Credit Memo window in Accounts Receivable allows a issued credit memo and a