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.