Sunday, 29 January 2012

Final Project


Project Report on
Peachtree Accounting Software


Submitted to
Prof. Bilal Sarwar

Submitted by
Rana Munir Ahmed
(L3f08bcom2370)
Section no.
B
Submission Date
29/01/2012










After we start the peach tree we have this window on the screen.





As we want to setup a new company we will go for the option on the screen “Setup a new company”
The following screen will appear after clicking the option “Setup a new company”

This will tell you the required information for your new company.
·         Your company name and the address
·         Companies charts of accounts
·         Accounting method
·         Accounting periods
Then click “Next” button to proceed.
This screen will appear on your window.



Fill the required information as showing in the screen
·         Company Name
·         Addresses line 1, line 2
·         City, state, Zip or postal code
·         Country name
·         Telephone and fax number
·         Business type of your company (Retailing , services or manufacturing)
·         Website and email address of your company
Note: Federal Employer ID, State Employer ID and St. Unemployment ID are for U.S.A system
Set up of company – l3f08bcom2370
Email bilalsarwar @hotmail.com
After filling the following information.
Press “Next” button to proceed.
This screen will appear on your windows.


“Charts of Accounts”
These options provide you almost all the accounts name their type and also provide you a code for every account.
You will see the five options appearing on your window as above picture showing
·         Setup a new Retail, Services, Construction, Manufacturing or Distribution company, using simplified chart of accounts.
You will see several accounts name their code and their types of accounts will appear.
You can also modify the accounts name or the code as per your requirement.
·         Setup a new company using an extensive chart of accounts from one of many sample companies.
These options give you other several chats of accounts with five digits code and have many range of accounts name which are used extensively in now a days by the companies.
You can modify charts of accounts as per your requirement.
·         Copy setting of an existing Peachtree Accounting company.
This option gives you a complete setup of existing Peachtree Accounting Company.
·         Convert a company from another accounting program.
This option will convert software of accounting company to a Peachtree
·         Build your own company.
This option will get you build your own company charts of accounts their name and other specifications.
As we starting a new company so we go to the option of “builds your own company”
And press “Next”

This window you will see on your screen

Choose the method you are going to use in your company
·         Accrual
·         Cash
Click the option you are going to use in your company
Then press “Next” button for proceeds to the next window.


This window will display on your screen.
You have to select a method for your company’s transaction posting in general ledgers.

·         Real time
·         Batch
In real time you record and post your transaction as it occurs but in batch time you record and post the transactions in all at end of the period.
Then you will press “Next” button.
You will see this screen

Select accounting period
This is 12 month most of the time.
After selecting accounting period we click “Next” to proceed.


You will see the following window.

Select the date in which your company’s financial year starts and then also select the month in which your company’s entering the data.
And select the fiscal year in which you are entering the payroll.
Then click “Next” you will see following window.

You have successfully finished the setup of your New Company.












Charts of Accounts
Here is the process that you can create your own charts of accounts
When you complete your new company settings you will see this window.

Here you can get the option how to create your own company’s charts of accounts

At the top bar you can see the option “Maintain” click the option you will see at number four option will be the charts of accounts.
This window will appear on your screen. After clicking charts of accounts.

You will see the all required information about your charts of accounts .
·         Account ID
·         Description
·         Account type
This is required information you have provide correctly to the software.
To save the information press “Alt + s”
Note: if you have not save the Account ID you can’t  proceed this will shown on your window screen.

Sample of entering the chats of accounts is as follows you have to write the account id, description and type also selected in the this process. For entering the types of account
When you enter the all the charts of accounts now you insert the beginning balances.

How to enter the beginning balances on Peachtree

First the process starts when we enter all the charts of accounts correctly with their IDs and their types.
Note: while recording the beginning balances we ensure that Retained Earning account is saved in charts of accounts because if we did not enter or save the retained earning account Peachtree will note save our other accounts balances so the whole process will repeats. So we have to save the account of Retained earnings should be saved first.
When we record the all the charts of accounts and then we have to enter the opening balances of all charts of accounts and here are some important points in recording the opening balance.
After recording the charts of accounts we click the button which is visible on our screen “Beginning balances”
It will show the different date that are for recording your accounts balances and select the date while selecting the date read the following
·         Date of recording on the when we have to enter the all charts of accounts.
Date of recording is very important in recording the beginning balances so if we are given the data of 1st of January 2009 so we have the opening balances of January 1st
When we select the date we select December 1st to December 31st 2008 because data is recorded from December 1st to December 31st 2008. It is very important while selecting the date.
When we select the date we enter all the balances of all accounts. It should be balance both side after enter all the balances and press “OK” option to save data. If sides are not equal then you have to repeat this process and check your figures again.
If we did not save retained earning account you will not able to save your data and you have to repeat all the process again for saving your data.


When we completely enter the charts of accounts and their opening balances we will proceed further to next step about learning Peachtree.










  Customer Account:
Now we will learn about the next step which is “Maintain Customer/ Prospects”
For this purpose we will go to “Maintain Menu” and click the “Customer/ Prospects”.
Window below showing that how to reach the option?

After clicking on this window we will learn how to maintain your customer records.
After clicking on this option you will see following screen will display on your monitors

In this window you have to fill the data of your proud customers.

·         Customer ID
·         Customer Name
After filling this you are going to fill the first tab below the ID and name of customer.
·         Customer contact #
·         What is customer type (specified by your own companies)
·         Telephone , fax , email address and website URL address
Then fill the information about “Bill to Address”
·         Customer Address
·         City and Zip code
·         Country
·         Sales tax ( as rate of sales tax apply in the country)
If you are entering about an existing customer you will have its opening balance. Button of opening balance is also there
After filling all the information click the next tab “Sales Defaults”
This window you will see on your screen

You will see these options
·         Sales  Rep
Its mean who is the sales person’s ID dealing with this customer.
·         GL Sales Account ( select your companies revenue account)
·         P.O #
·         Resale #
·         Price level
If any term related with discount then mention it also.
Then move on to the next tab “Payment Default”
In this tab define the method of payment by your customer if it is on credit card then fill the following information
·         Cardholder’s Name
·         Address
·         City, State, Zip
·         Country
·         Credit card Number
·         Date of Expiry

After completing this information go to the next tab
“Customer Fields”

It is required the further information about your customer like their second contact, references, mailing list and other sites address.
Then click on the next tab
“History”
In this window you will check the history of your customer’s transactions
·         Customer since
·         Last invoice date
·         Last invoice amount
·         Last payment date
·         Last payment amount
And other info about your customer history




Default Information of Customer
Click on “Maintain” in Menu bar and select the “Default Information” and in it go on “Customer”

When you click this window you will see the following screen.
“Payment Terms”

This tab tells us about terms and conditions pf payments and your company’s policy about receiving payments. Following heading is there
·         C.O.D ( cash on delivery)
Means your company receives cash when it delivers the goods to the customer. Limits is there that you can make a delivery on up to that amount in shape of “Credit Limit”
·         Prepaid
You received always in advance while making a delivery of goods. Limits is there that you can make a delivery on up to that amount in shape of “Credit Limit”
·         Due  in number of days
Its mean if due date in days  you are going to specify the date and count the number of days. And if any discount term there also give the percentage and discount period. Limits is there that you can make a delivery on up to that amount in shape of “Credit Limit”
·         Due in day of next month
In this we specify the date of the next month when it is due. And if any discount term there also give the percentage and discount period. Limits is there that you can make a delivery on up to that amount in shape of “Credit Limit”
·         Due at end of month
It means what is the due date after one month after sale. And if any discount term there also give the percentage and discount period. Limits is there that you can make a delivery on up to that amount in shape of “Credit Limit”
The select the sales general account id for correct recording and if sales discount is avail then also give the id of discount general account.
After filling this information click the next tab
“Account Aging”
You will see the following window after clicking next tab

In this window select your company’s policy according to the aging of your debtors while you are aging your customer from Invoice date or after Due date.
Then do their aging according the time after due date or from invoice date
Just like
30 days                                  0-30
60 days                                  31-60


After completing your aging process click to the next tab.
Customer Fields


Its required the further information about your customer like their second contact, references, mailing list and other sites address.
After completing this information go for next tab “Finance Charges”
In this tab you will find out the financing charges you are taking from your debtors
You will see the days over due and amount up to in $
·         Take the interest on the due amount
·         And if there is a balance above due then charge another rate on the balance amount
·         Specify the minimum limit of interest which is charge

When we complete the financing charges tab we move to the next tab



“Payment Method”

In this window you will see the method of payment by the customer to pay for our company
·         Cash
·         Check
·         Visa
·         Master card
·         Amex
·         Discover


















Maintain Vender Account:
In Peachtree we also maintain our vender’s data. For this purpose we go on the “Menu” bar and click on “Maintain”
And in “Maintain” click on “Venders”  as it is showing in the following picture.

After clicking this Venders option you will find following window on your screen.
Following buttons you will find on the top of this window.
In this option you can add, delete, or change the information about your venders.

In this window you will find four tabs, Vendor ID and Name.
                General                 Purchase Default                                Custom Fields                     History
General
In this tab you are required to fill the following information for your vendor and you can change you will this information if it required.
·         Contact
·         Account #
Ledger # or other number specify by the company
·         Address, telephone, Fax, E-mail ID, Web address
·         Venders type, 1099 type
It is a standard used by the companies in the U.S.A. for their venders.
·         Country, City, St Zip
·         Beginning balance of the vendor account
Purchase Defaults
When we click on the next tab “Purchase Default” following window will appear.

This window includes  Vender ID, Name and following information.
·         Purchase Rep ID
The person who is dealing with purchasing the inventory or services on the behalf of your company.
·         Purchase Account
In this you will have to give the inventory Account ID.
·         Tax ID, Delivery Method
·         Credit Terms
After filling this tab we will proceed further to the next tab.
Following screen will appear.
Custom Fields
 In this tab you will find about office manager of your venders company who is our account representative in venders company.

After completing custom fields tab move further to the next tab
History


In this window you will check the history of transactions with your vender
·         vender since
·         Last invoice date
·         Last invoice amount
·         Last payment date
·         Last payment amount

Inventory Items
 Inventory items helps us to record our selling or buying of inventory and update the quantities after every posted transaction. For this purpose Peachtree helps us to maintain the proper record of our inventory items.
Process of maintaining “Inventory Item”
Click of “Maintain” in the menu bar and then click on “Inventory items” tab.

After clicking the Inventory item you will see the following window on your screen.
The toolbar at the top of the window contains the following buttons: Close, Save, Delete, Change ID, New, Detail, Note, and Help


 Enter a short identification code for the item of inventory.
Enter a short description of the item of inventory.
Item Class:
         Select the class of the item from the drop down list provided. For items of inventory to be resold you should select 'Stock item.
General Tab:
         Enter the relevant information about that item. Note that for stock items you do not need to enter information into the Last Unit Cost field. Peachtree will automatically update this field when you enter the beginning balances of inventory items into Peachtree. Notice that there are three general ledger account fields on the MAINTAIN INVENTORY ITEMS window: GL SALES ACCT, GL INVENTORY ACCT, and GL COST OF SALES ACCT. For a STOCK ITEM, none of these fields can be left blank.
Other tabs:
         Enter the required information in the other tabs. Note that if the Item Class selected is Stock item, you are unable to enter any information into the Bill of Materials tab or the Item Attributes tab. This is because the Bill of Materials tab is used only if the Item Class selected is Assembly, while the Item Attributes tab is only used if the Item Class selected is Master Stock item.
Once you have entered the information in the Maintain Inventory Items window, remember to review your entries and save the item of inventory by clicking the Save icon






Assembling the Inventory Items
If you want to create assembly items in the inventory then Assemblies option is used.
For this, follow the following steps:
Click on MAINTAIN option. A drop list will open and select the option of INVENTORY ITEMS.



Give the ID No. of your choice and name of the inventory e.g. Processor.
Then provide the GL sales account, GL Inventory account, GL Cost of sales account. 
 Select the “STOCK ITEM” option from item class.
Provide the unit of the item in which it has to measure.
Click the “Save” option.
In this way, save the all other items which are used to build Central Processing Unit e.g. RAMS MOTHERBOARD, ROM, POWER SUPPLY, HARD DISK, and CASING.
After saving all the items details, click on the beginning balance option at the right end.
It will contain all items you have saved. Provide the beginning balance of the respected items.

Now, in inventory item create a new ID No. and a name of your choice e.g. CPU. Provide the GL sales account, GL Inventory account, GL Cost of sales account.  But this time select the “ASSEMBLY” option from item class
Click on the “BILL OF MATERIAL” tab.
Provide the inventory item ID’s and description to make a Central Processing Unit. Also enter the quantity of the items that will be inserted in the CPU that will make it a complete unit.










Process of preparing quotations and Salas order in Peachtree
In Peachtree we can prepare the quotation for our sales and also sales order.
For this purpose when we open an existing company we see a menu of “Task”  on top menu bar  following screen showing the process you will see in task menu top menu option “Quotes/sales orders”

After clicking on quotes/ sales orders  you will find the quotes and sales orders submenu on the screen.
Select quotes on the submenu.
Maintaining Quotes for sales
Following window will appears on your screen it help you to maintain quotes for sales. Quotes are the written estimates of sales. it also contain the expiry of quotes and the it is convertible into the sales order so it is also help you to save your time.
This screen have the option of Customer ID
it includes the customer you have maintain in your record means previous customer prospects and newly made customer in if you want to create new customer. You just press “+” button or double left click on customer ID option and you can approach directly to “Maintain customer/ Prospects”
But if the customer’s data is maintain you just click on magnifier glass and select from the list.


In this screen we just put the quantity, item, description, unit price the software automatically the total amount.



How to prepare sales invoices on Peachtree
In Peachtree we can create sales invoices for our customers. It helps us to record data for ledger, in maintaining customer records and for inventory account also.
For this purpose we click on “Task” on the top menu bar and select the option of “Sales Invoice’.
Following picture helps you to get on sales invoice.

When you click on the sales invoice we you will see the following window will display on your screen.

Above window contains following information.

·         Customer ID
In this window you will find the customer you maintain in the your company and for this purpose you select the customer you are going to sale.
·         Date
Date on which you are preparing the invoice
·         Invoice #
Invoice # given on the serial maintain by the company.
·         Term if any related to the discount
·         Quantity
Quantity to the item you are selling on sale order  is provided in this window
·         Item ID
In this tab we insert the item id that we are selling in this window
·         Description
The Item name or description of the item is automatically written in this column.
We can also convert our quotes in to sales invoice. The process is as follows

When we prepare a quotes and its is converted into the sales invoice.
We click on Sales/invoicing

Convert Quote into Sales order:
After you complete quotation and if it is approved by customer then you have to convert your quotation into sales order or sale invoice. To convert the quotations in to sales order click on Convert button and then click on the radio button sales order. Here sale order number will automatically be displayed, click ok to done.
Below is the screenshot for quote conversion.

If you want to check your sales order then click on task in the menu and then Sales order (Sub menu). Here you can check it by clicking on OPEN button and then selecting the sales order.


Process of preparing Receipts in Peachtree.
To open Receipts, click Tasks and then click Receipts.

Following window will open after you click ok.

You have to give Deposit Ticket ID that is required if you want to give it to bank, and also reference number that is mostly written on customer check and Receipt number. Give Customer Id of which you want to make receipt. After you have selected the customer id details of address would be displayed automatically.

The invoice number and amount due for that customer would also be displayed in Apply to Invoices field. Here the most important thing to remember is about date that you have to select for making receipt.
If you have selected the date within the due date then discount would be calculated on terms and would include in the receipt. You can change discount in Customer information. After selecting date, click on the Pay check box so that it would add amount of receipt in the (Amount Paid). Save it after you are done.

The above window is showing there is one more option in regarding receipts which is “Vendor ID” this option only used when we pay advanced payment to our vendors so we can also prepare receipts.
















                                                Purchase Order
Click on the TASK option which is shown on the menu bar.

In the second category, select the option for the PURCHASE ORDER.

Click on this next window is open. In next window we mentioned the following things.
We put the vendor ID
Mentioned the dates when we purchase are made.
Also mentioned the expired date
Put the purchase order no.
We also mentioned the quantity item description and per unit price Peachtree automatically calculate is total amount.
When you provide all the required data choose the SAVE button to save the all this data.




Purchases/Receive Inventory

To open purchase receive inventory click tasks and then click purchase receive inventory.
Why it is used?
When you have made purchase order and you have received items against that order you make purchase receive inventory. You have received items of which you have made purchase order.

First of all you have to select vendor that has sent you inventory. On selecting that vendor his information would automatically be recorded and all other information like discount term would be selected in relevant fields.
Enter date for the purchase receive and also customer invoice number. Enter it from the invoice.
When you will select the vendor if some purchase order is made for that vendor the window will select Apply to Purchase order number and you have to select the purchase order number and it would open all items of which purchase order was made. Enter items that have been received in received tab. Click Save and close it.





Receipts
To open Receipts, click Tasks and then click Receipts.

After you have selected Receipts then it would ask for cash account to record. Simply select cash on hand from drop down menu and click ok.



Following window will open after you click ok.

You have to give Deposit Ticket ID that is required if you want to give it to bank, and also reference number that is mostly written on customer check and Receipt number. Give Customer Id of which you want to make receipt. After you have selected the customer id details of address would be displayed automatically.

The invoice number and amount due for that customer would also be displayed in Apply to Invoices field. Here the most important thing to remember is about date that you have to select for making receipt.
If you have selected the date within the due date then discount would be calculated on terms and would include in the receipt. You can change discount in Customer information. After selecting date, click on the Pay check box so that it would add amount of receipt in the (Amount Paid). Save it after you are done.


Payments:
When you have made purchase order and you want to make payment to that vendor or anyother kind of payment likes salaries etc. then payments is used.

Select Vendor or customer of which you have to make payment.

Enter the vendor and all information realting that would be entered. Insert check number. Date for making payment.

When you have selected the vendor all payments due from that vendor would be shown and you have to select the payment which you want to make. Like one is selected with the red tick. In cash Account the relevant cash account must be selected.
If your salaries are accrued from previous month, then select no vendor and in credit memo write salaries payable and also write ther same in description. Enter amount and General ledger account as salaries payable and select the payment that shows tick mark in red. Once selected click save.
Returned Goods:
Vendor Credit Memo:
Why Vendor Credit Memo is used?
When we want to return goods to someone like vendor we use vendor credit memo.
Click Tasks and then click Vendor Credit Memo , Select vendor which we have to return items. On selecting  the vendor all items would be selected that we have recieved. Now enter items in returned tab which we have returned to vendor and save it.
Credit Memo:
Why Credit Memo is used?
Credit memo is used when some customer has returned goods due to some fault or all other possible reason. The procedure is same as of vendor credit memo. Select date item in description that have been returned. Save it.

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