PAYMENTS TO VENDORS

 Now we are going to make the payments to our venders. We have to do is open you peachtree software and then open an existing company. After all that go to the task menu and select the payments option.

After selection the payment option the payment window will appears. In this window you have to give some necessary option like.

·         Vendor ID

·         Check No.

·         Date

·         Quantity

·         Items

·         Description

·         General Ledger Account

·         Unit & Amount

The 1^st to do is to enter that vendor id to whom the payment will be made and then allot a respective check number to the check. After that enter the date on which the payment is made. If you are making payment with in the 10 days of discount then the discount head will show the respective discount amount that you are getting in this way:

  

If payment is made after the 10 days of discount then discount head will show nothing estimating that you are making full payment. If payment is made within the discount limit days then you need to provide an account head to that discount that is availed. You will make a new chart of account with a new ID, description and account type i.e. 415, payment discount and income. In this way the discount amount will be entered in that particular income head.

Discount account shows the appropriate income head where discount is entered payment is being made to the vendor in this. Last thing is you need to save the transaction occurred.

 INVENTORY ITEM

First open a peach tree and click on maintain button and select the option of inventory item :

Then this window will appear:

In this we fill the information about item :

In item ID :  Enter an ID of up to 20 numerically characters or alphabetically .                                

 description : descriptions of item that can be used in sales or purchase transactions. 

item class according to item .

In general :the following information about item in which we tell thee

price level : we fill the price level of inventory item 

,item tax type ,last unit cost ,

cost method :in this select the cost method from FIFO LIFO and average 

,item type :in this tell about type of item ,

location : in this we fill where the inventory is placed in store room.

 unit/measure ,and select the GL sales account ,GL inventory account , buyer ID etc .

In Custom fields can used to enter extra information about customers and vendors.

History : in this the history and records of transaction. It tells how many things sale and purchase.

How to maintain vendors Account

After maintaining the customer’s account now we have to maintain the venders Account. For this you have to select the option of maintain from the top of this window and then from its sub headings select the option of vendors in order to keep your vendor accounts and info.

After selecting the venders account the window will be open named as a maintain venders.

In this given window you have to fill the basic information of the vendors so in the 1^st column write the vendor id in 2^nd mention its name. At the right side of this window there is the option of inactive is given you can also tick it so that you can active your vendors.

There are the following tabs in the venders account.

1.      General:

In this 1^st step you will mention the contact number of your vendor, account no, and address, city and country.  At the right side of this window there is the option of vendor type in which you will mention the type of your vendor, then the telephone no, fax, email and website.

2.      Purchase Default:

Now you will have to mention your purchase rep that how is your agent or the person involved in purchase. Then write your tax ID, ship via and you can also change your terms as well.  In purchase account you will mention the account which is already made in the company chart of accounts.

As in the purchase account you can see the drop down list of the chart of account. in that you select the inventory account.

Now we select custom fields then following window will be open.

In custom fields we record office manager, account rep, special note etc and in blank box we save extra information about vendor. Now we select history then following window will be open.

In history head we save vendor previous record for example vendor since, last invoice date, last invoice payment, last payment date etc.

Vendors Default:

By using this software you can also maintain the record of the vendors default as when you want to keep the record then click on the option of maintain which is at the top of the window then from the default information select the sub option of vendor.

After selecting the option of vendor the following window will appear on your computer screen:

This window contains different terms listed under “standard terms” and they are explained below:

1.       Payment Terms:

All the terms and conditions regarding the payment from our customers will be mentioned here.

By default the option “Due in number of days” is selected and next to it the related information is provided Net due in (days), Discount in (days), Discount %, Credit limit.
In that the amount of payment is due in 30 days and if the customer pay us the amount within the 10 days then the software will automatically give him a 2% discount as we mention in the software.

Accounting Presentation: “2/10,n/30”.

Now the other options that are available for you to select are C.O.D: in the below image you can see that the 1^st three columns are freeze and only the column of credit limit is active. This shows that we are not giving any discounts to our customer and we are just receiving the Cash on Delivery (C.O.D).

When you will select the option of Prepaid the following windows will appear and in this window again all the columns are freeze except Credit Limit. This option means you will receive the payment from the customers in advance and deliver the goods after that.

If we select the option “Due on day of next month”  this means that we will receive payment from our customer in the coming month e.g if we make sales in March then we will receive the payment from them in April and the information will be provided in the next columns.

And last if we select the option of “Due At end of month” then it means that we will receive the payment at the end of the month during which we have made the sales

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2.       Account Aging:

By selecting this option following window will appear on your computer screen.

In this option we do the forecasting of our bad debts and we can see this tab is further divided into 2 options: “Age Invoice by and Aging Categories”

In age invoices by the invoice date is showing that we will set the date to when the invoice is generated. And by selecting due date we are setting the time when our invoice date will be expired.

The Aging Categories portion is the one where we categorize the time periods.

3.       Custom Fields:

As I've explained before that there was a column in which you can enter extra information about customers and also can edit the questions or explanations that you want to add regarding your customers so for that you use the following tab.