Peachtree Accounting Training
Manual
Accounting and Finance Department
Bahir Dar University
Compiled by Hunegnaw Abebe Accounting & finance Dept Bahir Dar University Page 1
EXERCISE 1: Data for setting up a new company
Name of Company: AtoZ Trading
Address Line 1: W: 1, K: 14
City: B/dar
Tele: 251-058-22200400
Fax: 251-058-2220600
Type of business: Limited Liability Company
Chart of account: Build your own
Posting Method: Batch
Calendar: 12 month (From January1-December 31)
First Month of Data Entry:January 2023.
First Year to Enter payroll: 2023.
Exercise 2: Chart of accounts as of January 1, 2023
A/C ID Account Description Account Type Beginning Balance
Dr Cr
1110 Cash on Hand Cash 13,000
1115 Cash at Bank Cash 60,000
1120 Accounts Receivable Accounts Receivable 4,850
1121 Allowance for Uncollectible Accounts Receivable (200)
1125 Short Term Investment Other Current Asset 22,500
1130 Goods in Transit Inventory 55,000
1135 inventory Inventory 43,000
1140 Prepaid Insurance Other Current Asset 2,800
1145 Prepaid Rent Other Current Asset 12,000
1150 Equipment Fixed Asset 48,000
1151 Accum. Depr.-Equip. Accum. Depr 8,000
1160 Vehicle Fixed Asset 63,500
1161 Accum. Depr -Vehicle Accum. Depr 10,000
1170 Furniture Fixed Asset 48,600
1171 Accum. Depr -Furniture Accum. Depr 12,000
1180 Building Fixed Asset 120,000
1181 Accum. Depr - Building Accum. Depr 25,000
2110 Account Payable Account Payable 8,960
2100 Sales Tax Payable Other Current Liab 500
2210 Unclaimed Salary Other Current Liab 1,200
2115 Mortgage Payable Long term Liab 130,000
3110 Resisted Capital Equity That Does not Closed 271,890
3115 Withdrawal Equity That Gets Closed
3210 Retained Earnings Equity Retained Earnings 25,500
4110 Sales income
4111 Sales Allowance income
4112 Sales Discount income
5110 Cost of Goods Sold Cost Of Sales
5120 Freight Expense
5227 Allowance Expense Expense
5230 Depreciation Expense-Equip Expense
5231 Depreciation Expense-Vehicle Expense
5233 Depreciation Expense- Furniture Expense
5234 Depreciation Expense- Building Expense
5235 Supplies Expense Expense
Total 493,050.00 493,050.
00
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2.2. Maintaining Subsidiary ledgers
2.2.1. Customers (Account Receivable Subsidiary ledger)
Setting Customer Default information
1. From maintain menu, Select Default
information. G/L sales account: 4110
2. Then Select Customers. Discount Sales account 4112
3. Enter the information for following 4. Select Save
Credit Term: 2/10,n/30 5. Select Close
Maintaining Customer information
1. From maintain menu, Select Customer /Prospects
2. Enter the customer ID 4. Enter the customer Address
3. Enter the customer Name Save
5. Enter the beginning balance
a. Click on beginning balance button.
b. Enter the date, invoice no., and amount.
c. Select save.
d. Select Close icon to return to the maintain menu.
6. Maintain other customers or close the maintain customers window.
Customer Ledger Balance as of January 1, 2023.
ID Customer Name Address Date Invoice# Amount
1120-HL Hirut Lemma 2200554 12/15/2022 001095 700.00
1120-KM Kebede Mamo 2201247 11/25/2022 001096 1000.00
1120-RB Roman Belew 2202557 12/23/2022 001097 400.00
1120-GK Girma Kiros 2200564 11/28/2022 001092 500.00
1120-RA Rahel Abebe 2204747 5/12/2022 001093 800.00
Grand Total 3400.00
Note: A/R beginning balance equals to 3400.00.
Sales Tax maintenance: Your instructor will tell you how to manage this.
2.2.2. Vendors (Account Payable Subsidiary ledger)
Setting Vendor Default information
1. From maintain menu, Select Default information.
2. Then Select Vendors.
3. Enter the information for following
Payment Term: 2/10,n/30
Purchase account: 1135
4. Select Save
5. Select Close icon to the vendors’ window
Maintaining Vendor information
1. From maintain menu, Select Vendor. 4. Enter the Vendor Address
2. Enter the Vendor ID 5. Save
3. Enter the Vendor Name 6. Enter the Vendor beginning balance
a. Click on beginning balance button.
b. On the invoices for tab, the invoice date, invoice no., account, and amount.
c. Select save.
d. Select Close icon to return to the maintain menu.
7. Maintain other customers or close the maintain vendor window.
Vender Ledger Balance as of January 1, 2023.
Date Invoice# Vender Id Name Address G/L A/c Balance
10/23/2022 002001 2110-AA Abera Alemu 2200010 2100 4000.00
11/02/2022 002002 2110-BB Beletu Birhan 2200020 2100 2000.00
12/08/2022 002003 2110-DD Daniel Debebe 2200030 2100 2960.00
Total 8960.00
Compiled by Hunegnaw Abebe Accounting & finance Dept Bahir Dar Page 3
Note: A/P beginning balance equals to 8960.00.
2.2.3. Inventory
I. Setting Inventory Default information
1. From maintain menu, Select Default information.
2. Then Select Inventory Items.
3. Enter the information for following
G/L Sales a/c: 4110
G/L Inventory a/c : 1135
G/L CGS a/c: 5110
Freight account: 5120
4. Select Save
5. Select Close icon.
II. Maintaining Inventory Records
1. From maintain menu, Select inventory items.
2. Enter Item ID and Press enter Key.
3. Enter the Item Description.
4. Choose Item Class.
5. Click on beginning button and Enter Sales Price, Unit Price ,and Cost Price
6. Save and close the window to maintain another item or to exit.
Inventory Ledger Balance as of January 1, 2023.
Item Id Item Name Meas. Cost Price Qty Balance
Per100 Woman Perfume Each 500.00 700.00 30 15,000
Per200 Men Perfume Each 350.00 500.00 35 12,500
Cos300 Cleansing Crame Each 175.00 230.00 40 7,000
Cos400 Souffle Makeup Each 160.00 250.00 25 4,000
Cos500 Powdered Deep Each 95.00 150.00 50 4,750
Total 43,000
CHAPTER THREE: RECORDING TRANSACTIONS
3.1. General Journal Entries/ Transactions
3.1.1. Recording A General Journal Entry
1. From Tasks Menu, Select General Journal Entry.
2. Enter or select the date of transactions you want to enter.
3. Select the Reverse Check box (if applicable) to have the transactions automatically reversed the first day
of the next accounting period.
4. Enter a reference for transactions up to 20 characters.
5. For each line enter or select an account ID. Then, enter an amount in either the debit or the credit
columns.
6. Enter a description of each line you are entering for the transaction.
7. Once the Out of Balance field is zero (0.00), select Save or Post to record the transaction in the General
Journal.
Exercise 3
Enter the following general journal transactions On January 31, 2023.
Purchase of Supplies for cash of br 120.00 (jv-001)
Rent expense ............................. 50.00(jv-002)
Insurance expense .................... 100.00(jv-003)
Depreciation expense –Equipment...150.00(jv-004)
Depreciation expense-Vehicle........ 100.00(jv-005)
Depreciation expense-Furniture........50.00(jv-006)
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3.2. Special Journal Entries/ Transactions
4.2.1. Vendor Transactions
Vendor transactions are related to Account Payables. Peachtree organizes and monitors the money that
the organization pays to its vendors. So, it provides you with the ability to print purchase orders,
vendor’s bills, payments, etc.
Account payable Tasks include
1. Purchase order: - Window used to enter information from a document containing an order to deliver
goods or services to vendors.
2. Purchase/ Receiving Inventory: - Window used to enter information from a source document for
purchases. Enter information here upon purchase or receipt of goods or services.
3. Payments: - Window used to enter information from a source document for payment of money.
To enter a purchase order
1. From Tasks Menu, Select purchase order.
2. Select the Vendor ID.
3. Enter purchase order number.
4. Enter the date of transaction.
5. Enter quantity& unit price of the item sold.
6. Enter the G/L account.
7. Save.
Exercise 4: Purchase order information
Date PO# Item ID description Vendor ID G/L a/c Qty Unit price
2/01/2023 PO-001 Per100 Woman Perfume 2110-AA 1135 100 500.00
3/01/2023 PO-002 Cos300 Cleansing Crame 2110-BB 1135 200 175.00
5/01/2023 PO-003 Cos500 Powdered Deep 2110-AA 1135 300 95.00
Total 600.00
To record Purchases/Receive Inventory
There are two tabs in this window
Apply to Purchase Orders: - Used for a vender with open Purchase Order (PO).
Apply to Purchase: - Used for a vender with no open Purchase Order (PO).
Purchases without a PO.
1. From Tasks Menu, select purchase /Receive Inventory
2. Select the Vendor ID. The Name and Address are filled automatically when you select an existing
Vendor.
3. Enter Vendor’s invoice number.
4. Enter the date of transaction.
5. Select the A/P G/L account for this purchase.
6. If there is open purchase orders, then apply to purchase orders tab is in front.
a. To enter a purchase, Select the apply to Purchase tab.
b. Enter the information for each of the item being purchased on separate line (Qty, Inventory
Id, Description, Vendor Id, G/L a/c, Unit Price )
c. If you have paid a partial or full payment at a time you receive inventory, Select the
Amount Paid button and check mark or enter the amount.
d. When Finished, Select the Save or Post icon to record the transaction.
Exercise 5: Purchase Information
Date PO # Qty Item Id Description Unit Price G/L A/C Invoice # Vendor Id
10/01/2023 PO-001 50 Per100 Woman Perfume 500.00 1135 002004 2110-AA
11/01/2023 PO-002 150 Cos300 Cleansing Crame 175.00 1135 002005 2110-BB
12/01/2023 PO-003 300 Cos500 Powdered Deep 95.00 1135 002006 2110-AA
Compiled by Hunegnaw Abebe Accounting & finance Dept Bahir Dar Page 5
Payments
There are two Tabs at the top of the Payments Window Box.
Apply to Invoices: - Used for a vendor with open invoices.
Apply to Expenses: - Used for a payment to one-time vendor.
Paying Vendor Invoices
1. Select Payments from the Tasks Menu.
2. Select the Vendor to pay.
3. Select the cash account for payment.
4. Select the Pay icon to pay in full, or enter the amount of payment.
5. When you finish, Select Post or save.
Exercise 6: Payment Information
Date Vendor Id Invoice # G/L A/C Cheque # Amount
14/01/2023 2110-AA 002004 2110 EG44316 2,960.00
14/01/2023 2110-BB 002005 2110 EG44317 2,000.00
14/01/2023 2110-AA 002006 2110 EG44318 25,000.00
Total 29,960.00
3.2.2. Customer Transactions
Customer transactions are related to Account Receivables. Peachtree organizes and monitors the money
that comes in to organization from customers. So, it provides you with the ability to print quotes, sales
orders, invoices, and receipts.
Account Receivable Tasks include
1. Quotes: - Window used to enter information from a document containing a proposed list of
goods/services and their prices that a customer may buy.
2. Sales Order: - Window used to enter information from a document containing an order from
customers to deliver goods or services.
3. Sales/Invoicing: - Window used to enter information from a source document for Sales. Enter
information here up on selling/invoicing/billing.
4. Receipts: - Window used to enter information from a source document for collection of money.
3.2.2.1. Entering Quotes
Quotes are estimates. Therefore, they do not affect accounting information or inventory levels.
1. From Tasks Menu, Select Quotes/Sales Order.
2. Then Select Quotes.
3. Enter number Quote.
4. Enter the discount and amount terms.
5. Enter unit price or amount of the items.
6. Save.
Exercise 7: Sales Quote Information
Date Quote # Description Qty Customer Id
5/01/2023 Q-001 Woman Perfume 10 1120-HL
6/01/2023 Q-002 Cleansing Crame 15 1120-KM
Converting Quotes
1. From Tasks Menu, Select Quotes/Sales Order.
2. Then Select Quotes.
3. Open the Sales Quote you want to convert.
4. Then click Convert button.
5. Specify the option you want to convert.
6. Save.
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Entering Sales Orders
1. From Tasks Menu, Select Quotes/Sales Order.
2. Then Select Sales Orders.
3. Enter Customer Id.
4. Enter Sales Order Number.
5. Enter Ship to address (automatically filled With default information).
6. Enter the discount and amount terms.
7. Enter unit price or amount of the items.
8. Enter a job id (for tracing costs in to dep’t).
9. Save
Exercise 8: Sales Order Information
Date Sales Order # Description Qty Customer Id Unit Price
8/01/2023 SO-001 Woman Perfume 10 1120-HL 700.00
10/01/2023 SO-002 Cleansing Cream 15 1120-KM 230.00
11/01/2023 SO-003 Powdered Deep 20 1120-HL 150.00
Entering Credit Sales
1. From Tasks Menu, Select Sales/Invoicing.
2. Enter Customer Id.
The sales /Invoicing Window has two folder tabs:
Apply to Sales Orders:- Displayed when a customer who has open sales orders is selected.
Apply to sales:- Displayed when a customer who has no open sales orders is selected.
3. Enter Invoice Number.
4. Enter the date of transaction.
5. Select the Apply to sales folder tab (if there is no open Sales orders).
6. If there is open Sales orders, the apply to Sales orders tab is in front.
a. Select the apply to sales Order tab and the sales order number.
b. Enter the information for each of the item being sold on separate line(Qty, Inventory Id,
Description, Customer Id ,G/L a/c, Unit Price )
c. Enter the Sales tax to be applied.
d. Amount is calculated by Peachtree as: Qty*Unit Price
e. Select a job.
f. When Finished, Select the Save or Post icon to record the transaction.
Exercise 9: Credit Sales Information
Date Invoice # Description Qty Customer Id Unit Price
15/01/2023 SI-001 Woman Perfume 8 1120-HL 700.00
16/01/2023 SI-002 Cleansing Crame 7 1120-KM 230.00
17/01/2023 SI-003 Powdered Deep 6 1120-RB 150.00
Receipts
This allows entering all checks and cash slips you receive and deposit in your account. You can account receipts
by two ways:
If you sent an invoice to a customer, you apply the receipt to the invoice.
If you made a direct sale that did not require an invoice, you use Receipts and enter it on the apply to
Revenue Tab.
Collection of Receivables
When a customer pays an invoice, enter the amount in the receipts window.
1. From Tasks Menu, Select Receipts.
2. Type a deposit Ticket No. that can easily represent the type and source document.
3. Enter Customer Id.
4. Enter a reference No. that can identify the receipt. (E.g., Customer Cheque No.)
5. Select Payment method (Cash or Cheque).
6. In the cash account list, enter the bank account in which the receipt is deposited.
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7. In the apply to invoices tab, Select the Pay Check Box next to the invoices the customer is paying.
a. If the customer is paying in full, Place a cursor in the Amount column for the invoices and
Check the pay box.
b. If the customer has paid only a partial amount of invoice amount, enter that amount.
8. Select Post or save to record the Receipt.
Exercise 10: Receivables collection Information
Date Customer Id G/L A/C Amount Deposit # Reference Receipt#
18/01/2023 1120-HL 1115 500.00 Tkt-10 DD501220 CR20222
19/01/2023 1120-NA 1115 630.00 Tkt-11 DD501220 CR 20223
Entering A Cash Sale
When a customer pays for an item and there is no invoice, enter a cash sale.
1. From Tasks Menu, Select Receipts.
2. Type a deposit Ticket No. that can easily represent the type and source document.
3. Enter Customer Id or Name(e.g., cash customer)
4. Enter a reference No. that can identify the receipt. (E.g., Customer Cheque No.)
5. Enter transaction date.
6. Select Payment method (Cash or Cheque).
7. In the cash account list, enter the bank account in which the receipt is deposited.
8. Select apply to Revenue.
9. Enter the type of product or service you sold.
10. Select Post or save icon when finished.
CHAPTER FOUR: REPORTS
4.1. Display Reports on a Screen
1. From the Reports menu, select the type of report (Accounts Receivable, Accounts Payable, Financial Statements,
and So on) you want to appear on the Screen.
2. From the reports list, Scroll down to select a report you want to appear on the screen.
3. Double-Click the specific report you want to display (or select the report and then preview button, enter desired
information and then OK).
a. To set print properties, before e printing a report displayed on screen, select the Setup button.
b. To print a report displayed on screen, select the Print button.
c. To design a report displayed on screen, select the Design button.
4. When you finish viewing the report, Select Close to return to select a Report window.
4.2. Closing the Books
1. Select System from the Tasks menu.
2. Then select Year-End Wizard.
3. Next, Follow the Peachtree Year-End Wizard.
4.3. Company Delete, backup and restore.
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