DEFAULT INFORMATION OF INVENTORY

To maintain the default information of inventory, we go to set the requirements of our inventory as we did in the rules and regulations of the default information of our customers and vendors. So in this same way we will now see that what is the procedure of setting the rules of our inventory in Peachtree software. This will help us to maintain the proper record of our inventory. We will now maintain the price level so for that we select “maintain” in the tool bar and then click on “item price” as shown below:

                                

After opening the item price, the below window will open in front of you, now this window will provide you the information that you can set the price level of your all inventory according to your will and requirements, you can adjust the sales price in this window easily. Here you can see the range where you will adjust the items of your account.

Now after adjustments you will press “OK”, and when you press it the below window will open in front of you. In this firstly you will unselect all the price levels, and then after this you will select the one price level which you want to choose. Here you can also select the cost or mode of profit which you want to make on your cost like in the amount of percentage.

MAINTAINING OF INVENTORY ACCOUNT

STEP: 1

When you are running your company then you are engaged in different activities whether your operations concerned with services, manufacturing, wholesale purchasing etc. It depends upon the type of business that you have to purchase inventory or you are just concerned to sale it out by buying it from any other source, but in such a case you can see that you are involved in both activities, first you buy the inventory and then you sale it.

Sale and Purchase both occur in this case, so now we will see that how we will maintain our inventory account in Peachtree. The first step is to open your company which is already made by you in Peachtree software, after opening it the below window will open in front of you.

STEP: 2

After opening your company you will see the below window from where you start making your inventory account, first you will go to the toolbar in which you click on “maintain” when you click on it you will see different options in this tab.

As you are going to make your inventory account so you will choose “inventory items” from this window.

                                                            

STEP: 3

When you click on inventory items then the below window will open, you can see different options here which are concerned with the inventory or products which you buy or sell. It is compulsory to fill the requirements which are necessary to keep records in this software, if you did not mention then it may be possible that an error will be occur or may be your financial statements are not correct because of not providing the correct information which are required to be fill in this software, so one mistake can create many problems and to overcome it you should provide the exact and real information about your inventory.

STEP: 4

As you already know that for every account, customer and vendor we assigned different and unique ID which is not repeated again, so same is the case here when you make your inventory account you will assign a unique id which is different for every product, whether it is related to purchase or sale. This will help you because you can easily check your inventory accounts that which inventories are left with you or which are sold.

STEP: 5

After giving a ID to your inventory, the second step is to write a name of your inventory in the next option which is of “description” here you will mention the name of your product which you are going to purchase or which you are going to sale.

At the right side you can see the first option is of “item class” this option is concerned with the class of your inventory which means that whether your item is of stock item, non stock item, related to service, assembly, labor etc. It means if you are just concerned with the sale purchase activities like you are not a manufacturing or a service company then you select “stock item” because you are just running a shop in which you just purchase the inventory then sale it.

Now you have to fill the below requirements in which the first one is of “GENERAL”, in this you can see different options related to your inventory, at left side the first option is of “description” in which you have to select that whether you are going to purchase the inventory or sale the inventory, suppose if you have to sale your product then you will select “for sales” in this option.

STEP: 6

Now you mill move forward and will see the other options, the first one is “price level 1” this option ask from you that at which price you will go to sale your inventory or at which price you will purchase the inventory or may be already purchased it, once you select the price for any specific item then it will automatically set for all other inventories which are related to this specific item so in this way you do not have to mention the price of same product again and again. But here it is important to know that you can change your price at any time when you want to change it, the process through which you can change it will also be discuss but in some other requirements. After this “price level” the next option which you have to fill is the “last unit cost” in this you will mention your one unit cost means you have to tell how much is the cost of your one unit which you are going to sale or purchase, when you mention this for at once then automatically this software will save this cost for other inventories also but only those inventories which are related to this specific inventory and comes under this specific type. Now the next option which you can see is the “cost method” in which you have to tell your method of cost that whether you want LIFO method, FIFO method or AVERAGE method for your cost. As you know that LIFO method is used for “last in first out” means that the inventory which is purchased by you at the last will be sale out first, and the second method FIFO means that the inventory which you purchased first will be first sale out, and average means that both above discussed methods will be applied at average rate. 

STEP: 7

Now you have some other options in which the first one is “item type” here you will tell the type of your inventory means whether it is portable or not, durable and some other types. The next option now you have is “location” in which you have to tell the place at which you keep this inventory whom account you are maintaining, like if you are running a shop then obviously your all inventory will occupy some space or position there so the place of every inventory is also mention with it in maintaining its account. For example you keep your one product in your shelf 1 then when you maintain its account you will mention shelf 1 in the “location”.

The next option after above is “Unit/measure” in this you have to tell the unit of your product, like if the product is of fabrics then the unit is may be of meter, inches etc.

STEP: 8

In the below window you can see that at the right side there are three accounts options which you have to mention for each of your account which you maintain for your inventory, the first one is of “GL sales account” here you will enter the sales account which you already made in your chart of accounts and for this you have to click on the magnifying glass of this option and after opening it, the below window will be open which you can see by the arrow from where you will select your sales account. In the same way you have next option which is “GL inventory account” here you will the inventory account which is already made in your chart of accounts and for this you have to click on the magnifying glass of this option and after opening it, the below window will be open which you can see by the arrow from where you will select your inventory account. You have one more option here which is “GL cost of sales account” here you will enter the account of your cost of goods sold which is already present in your chart of accounts and for this you have to click on the magnifying glass of this option and after opening it, the below window will be open which you can see by the arrow from where you will select your cost of goods sold account.

  

STEP: 9

After this at the end of this window you have two more options the first one is “preferred vendor ID” which means that if you are maintaining your inventory at the time when you purchased it then obviously you purchased it from any vendor which is already present in your vendors account or if not then you can add this new vendor and it automatically will be add in your vendors list, here you will enter only the ID of that vendor and for this you will click on magnifying glass and if this vendor already exists in your list then it will be shown in a new window. The second one is “buyer  ID” which means that if you are maintaining your inventory at the time when you sale it then obviously you sale it to any buyer which is already present in your buyers account or if not then you can add this new buyer and it automatically will be add in your buyers list, here you will enter only the ID of that buyer and for this you will click on magnifying glass and if this buyer already exists in your list then it will be shown in a new window. After doing all this above procedure now it’s time to save this inventory account and for this you will go to the top of this window and click on “save”.

RECORD OF JOURNAL ENTRY

HOW TO RECORD A JOURNAL ENTRY IN PEACHTREE

Here we will see that what is the procedure to record a general entry in Peachtree software, so for this we will open the software and then click on “TASK” when the window of task is open then from that we will select “General Journal Entry” in order to pass a journal entry in the software. The window of this will be shown below:

After choosing above option we will see a window which is shown below, this is the simple format of a general journal which is used to pass journal entries. Here we will enter the date of the transaction in the “Date” area. We can also give any reference ID to the recorded transaction by mentioning that ID in “Reference” area. By mentioning this ID, searching transactions in the general journal will become easy. In “GL Account” we enter the ID of the account which is involved in the transaction. It can be any account like salaries expense account, wages account, commission account, discount account or any account according to the situation. The first line is for debit while the second line is for credit. If there are two items in debit then first two lines can be used for debit items while in contrary if there are two items of credit then two lines beneath the debit line or lines can be used to record the credit items in the general journal. In “Description” we can enter any description related to the journal entry. In “Debit” we enter the debit amount while in “Credit” we enter the credit amount of the transaction. Like this the journal entry is passed and then saved by clicking on “Save” button at the top bar.

MAINTENANCE OF SECURITY

MAINTENANCE OF SECURITY IN PEACHTREE

The security which you use for users is to keep your personal data with you, and it is held for internal users like the persons which are engaged inside your company. You can maintain all type of security level here and it can be change from person to person according to your will or your requirements. Through this software you can set up Users IDs and associate passwords with each other, this will enable every user to use your company information from this software within limits which are prescribed by you for that user. Security maintainance will help you in many things like you can hide your data with anyone whom you do not want to share or with anyone whom you think that he/she will missused your data, and so on. If you want to remove all the security levels which you made than for this you remove security from your company, erase all established user IDs. So now we will see that how all of this will be done and what is the procedure behind this, firstly we will go to “maintain” and select “users” from it where you have to make security levels for users.

After selecting “users” the window which will open in front of you is shown below, here you can see the all options where you will apply security levels and where security will be easily accessible. On the top of this window you can see two columns of user ID & password, these columns is used to make security for each user individually and then give any unique ID to that user and password, and then you will give it to that person so that he/she can use this ID to open your software. That person can use your software but the securities which you made for that person can not be accessible to a person. Here one more rthing that when you click on “users” then first of all a page will be open in which you have to click on “ok” so that it will open a page of security for you. Both windows will be shown below:

This below window is telling you each corner where you can apply security levels easily, first you will entre the ID and password for your user on which you are going to make security and this will be a unique for everyone so that those persons can easily access this by their own ID’s and passwords. The first requirement is comprises the rest of the options as aswell, you will now firsly fill the first requirement which is of “ summary” here you have to mention that you want this specific user to check your sales accounts or not, or he can access your purchases or not or if yes then the limits of access can be mentioned that he can only read that information but can not edit that or erase that without the consent of the owner. In the same way you select the security of the ledgers, payroll, and inventory. Now we will see that what other options says about system so for that we will select the next requirement which is of “system”.

In the below window we select the next option which is of “systems” here we see that if we want that the selected person cannot reach to our system so for that we want to give no access to that user to System then we will click on “No Access” in the control option in front of System and we can then further edit the control for other program areas as per our requirements. We can further edit the description portion for any program by clicking on their respective tabs above. For example, to change the description of Inventory we will click on the tab of Inventory.

Now from below window we can change the security criteria to this person that either he access the area of inventory or not, or either he only read it or cannot edit this and so on.  we click on Control option in front of required portion like if we want to make any then on clicking it the  following window will appear on the desktop screen. From here we can select the control as per our requirements and restrictions. Then after editing the control we need to save these control made by clicking on “save” so that this security will be saved for that person.

MAINTENANCE OF GLOBAL OPTION IN PEACHTREE

PEACHTREE GLOBAL OPTION

In Peachtree this option is consider to be the most important option in the software. As we studied in this software about vendors and customers information with their default information so in the same way this is the global option of this which is the important option. These options will be explained further in this topic. To open a global options window we will click on “Options” and the below window will be open in front of you from which you select the first one which is “global”

The below window is of global options window and we can maintain the default settings of the rest of the options of Peachtree software from here. The first tab we have is of “Accounting” so we click on it and will see that what this requirement says, so after clicking we will see the first option of this window which is of “decimal entry” this option is basically used for the number of decimals after the zero. It’s our choice to choose the decimals according to our requirements by changing it from “number of decimal places”. The maximum number which we can select from this option is up to 5 decimal places, we can select the automatic option as well. But before this first of all you have to select the number of decimal places first and then we select the “automatic” option. Then the next option we have is the “hide general ledger accounts” from where the option is available to hide your account receivables and accounts payable. The next we have is the “other options” we are able to select different options to change in Peachtree software. This is all which we have in this first option of global window, now we will move forward to the second option.

The second option which we have is the “general” which is shown below in the window. The first requirement in this option is of “Improve performance” which means to print the total number of pages in the report or statements and number of quantity in hand display. Next to It, is the “Line item entry display”. If we select “1 Line” from here then it means that if we are entering a journal entry in the general journal then we have one spare line beneath each debit line to enter the other item and if we select “2 Line” then we have two spare lines beneath each debit line to enter the other two items. And from here we can select any color which we want to apply on our software.

Now after above the third requirement is of “Peachtree partners “. From here we can select the security level for our software. It’s our choice so we can keep it Low, Medium or High as per our requirement.

The last requirement from this global option is “spelling” from here we can select the dictionary according to which we want our spellings to be checked and this dictionary will we selected from “Main Dictionary Language” option. Then we have many different option related to spell check and words in “Running Options”. So in this way we can maintain the best level of our spellings so that there will be less chance of errors or any inconvenience.

MAINTAINING OF ASSEMBLIES ITEM

HOW TO MAINTAIN INVENTORY (INGREDIENTS) OF A CAKE

As we already studied about the maintenance of inventory account, so in the same way now we are going to maintain the inventory of a cake which we want to make. The ingredients which we use in the preparation of this cake are as follows:

·         Flour

·         Baking powder

·         Eggs

·         Sugar

·         Coca powder

·         Vanilla essence

·         Cream

·         Chocolate sauce

·         Chocolate chips

·         Nuts

·         Oil

Now the first step is to maintain the inventory account of these ingredients, and for this purpose you will first open your company in Peachtree.

From the above window you will choose “maintain” from the toolbar and in this option you will find the “inventory items” which is basically the place where you have to do all the process or making of your cake, by maintaining each of the account of your ingredients. In this way you are able to maintain your inventory account by which you will be aware of your inventory that which inventory is using in how much amount in which in every product and how much the quantity lefts behind. It will be easier for you to maintain check and balance of your inventory.

A below window will be open in front of you when you will click on “inventory items” now what you have to do is to maintain your ingredients accounts here from whom you are going to make a cake. As we already know that how to enter all of the information so go ahead and maintain all the accounts, like if we want to maintain the account of flour first then we will give a unique Id to this account suppose we gave 002 then in the next column we write the name of our account which is “flour”. As we are going to make cake for sale purpose so we select “for sales” in description, next we have on our right side is the item class in which we select “stock item” after this you will enter all three accounts which are sales, inventory and cost of sales account. You will also mention the unit of this ingredient like for flour we have KG or we can also write “pack”. In this way your one ingredient account will be maintained.

As you already made your first ingredient account so now you will move ahead to make all other ingredients account which you are using in the making of cake. Now the second account which you have to maintain is the baking powder and for this you will again give this account a unique id then write its unit in which we enter “pack” in this way you will maintain all other ingredients like vanilla essence, chocolate sauce, eggs, coca powder, nuts, cream, chocolate chips, oil etc. All ingredients are maintained with a unique id, you can see in the below window that all accounts are maintained with the same process which we used for making the flour account.

After completing this we will move on towards “Assembly”. From “Item class” we will select “Assembly”. On selecting this following screen will appear on the desktop screen.

Now we will enter all the information or all the products which is required for making a assembly item which is in this case is CAKE. Assembly refers to a complete finished product. As we are making cake so our finished products will be CAKE. We will enter the ID, Description for that account, GL sales Account, GL Inventory Account and GL Cost of sales account. After entering the ID and description we will associate the GL sales Account, GL Inventory Account and GL Cost of sales account with the accounts created in chart of accounts with its ID. We can also use “unit/Measure” option where we can enter the unit in which we measure that certain raw material or assembly. Here after completing this information we will click on “Bill of materials” and the below window will be open in front of you.

In the above window we have to mention the ID, Description and Quantity needed to make one finished product which is a CAKE in this case. We will enter the ID in “Item ID” and automatically “Description” will be entered by the software. We will add the quantity needed as per our production requirements. After completing this all process we will press on “Save” button to save the assembly.

ENTERING THE BALANCES OF INVENTORY

In Peachtree we can mention the beginning balances of our inventor or products easily. We can do this by clicking on “Maintain”. By clicking on “Maintain” following window will appear on the desktop screen. From here we click on “Inventory items” in order to enter our beginning balances of the inventory items in the software. Now from here this window we will click on “Beginning Balances” option and on doing such following window appears on the desktop screen.

Here we will enter the balances of the inventory items one by one by selecting them. We will enter a specific inventory item to enter the balance and enter the number of units in hand in “Quantity”, Per unit cost in “Unit Cost” and remaining “Total Cost “will be automatically calculated by the software. After entering the beginning balances for the inventory items as per our requirements, we press on “OK” in order to save the data entered in the software.

                                       

Now click on “ok” to save the balances which you entered in Peachtree.

How to create customer records

                     HOW TO CREATE CUSTOMER RECORDS

STEP :1

First of all you will open your company in Peachtree:

                     

STEP :2

Now you click on “maintain” from above toolbar, and after opening it the below window will open in front of you from which you select the first option “customers/prospects”

                                                                     

STEP :3

After opening ‘customers/prospect” you will see the below window in which you can create your customers account easily by filling all the information which is required in this page.

                              

STEP :4

Here you can see the first column is of “customer ID” as we know that every customer has its unique id which is always different from another, and the same thing we done in making chart of account’s ID in which every account has its own ID, same case is here now. You will first enter the ID of your customer like we gave 200 as its ID,and then the next option is of “NAME” in which you enter the name of the organization whom you are dealing with, suppose its ABC COMPANY.

Now you have six options ahead to fill, the first one is of “GENRAL” in which the first contact in which you write the contact of that organization means that you have to enter the name of the person whom you are dealing in ABC COMPANY, it can be the person of any field related to that organization or company. The next you have “address” of that company, the “city”, then “customer type” means which type of that customer is, then “telephone” and so on. After filling all portions you will move forward and click on the second requirement which is “SALES DEFAULTS”

                          

STEP :5

Now if you have to make the invoice of your customer, you will click on the “beginning balance” which is shown below in blue area.

              

STEP :6

After clicking on “beginning balance” the below page will open in which you first write the invoice number of your customer, then date, purchase order number and the amount at which you contract with your customer.

     

STEP :7

The date which you will write in the above window to make your customer invoice, that date must be between the period which is shown in the below window with the blue shaded area. This is the period of your company which is from 1^st February 2012 to 29the February 2012:

             

                       

STEP :8

After clicking on “Sales defaults” you have to enter the “GL sales account” which is the sales revenue account, in this blank area the account which you enter must be exist in your chart of accounts with the name of revenue, if this account does not exists in your chart of accounts which you made previously then this blank area starts blinking. So you have to make sure that you have already sales revenue account under which you are dealing with your customers. After complete this requirement you go ahead to “Terms and credit”

                         

STEP :9

Now you have “terms and credit” in this requirement you have to fill all the things under which you made credit sales, like the date at which you are going to recover your payment, the discount period, the days in which your customer can avail discount, the limit of your credit, and so on. After this you will move forward and click on the next requirement which is of “Payment defaults”

                           

STEP :10

Here you enter all the data regarding the payments of the customer like the name of the person, address, city, country, credit card number and so on. Then you click on the next requirement which is “Custom fields”

                         

STEP :11

In this window you will enter the second contact of your customer if it is required, refrence, and other portions which are required here to fill.

            

STEP :12

In this last requirement you will enter the history of your customer and after filling all the portions here, you will click on the above “save” button. Now your first customer account data which you entered here is now saved in this software, after making first customer account you will now make all the other customers account here by doing all this procedure again and again.