Chapter 1 Company Set up

Create new company

 Steps to create a new company

 Click file menu-----New company
 Next ---------------------- Next

 You will get Create New Company -

Company Information dialog box.
 You use the company information window
to enter basic information about your
company such as

 name and address information

 telephone and fax numbers

 Web site address (for example,)

 federal and state employer identification numbers

 state unemployment ID

 type of business

 You can change company information at any time.

for example

 company name -------- ABC PLC

 Address 1 yeka sub city
 Address 2 p.o box 125345
 City: Addis Ababa
 Country : Ethiopia
 Tel: 011567899
 Business type: Limited Liability company

 When you're finished entering information, select the Next button.

 Peachtree displays the Create a New Company – setup dialog box .

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 Select Method to create your company.

 Use a sample business:- type that closely matches your type of company: Select this option to copy
basic setup information, particularly a chart of accounts, from a sample company. You can select either
a simplified chart of accounts that contains only the basic accounts you need to get started; or you can
choose a detailed chart . (most companies choose this)

 Copy settings from an existing Peachtree company: Select this option if you want to copy setup
information from another Peachtree company.

 Convert a company from another accounting program: Select this option if you want to import
company data from some other program.

 Build your own company: Select this option if you want to create a company. This option is only
recommended for experienced users who are comfortable setting up accounting information. For users
coming from a paper ledger, we recommend that they select a business type (see above) that most
closely matches their existing chart of accounts and then modify it as they have need. (build your own
chart of Account Designed for account and advanced users only)

 Consolidate existing Peachtree Accounting companies: (Peachtree Premium Accounting and above
only) Select this option to combine the charts of accounts of a number of existing Peachtree companies
to create a new consolidated chart of accounts. This will let you see
 Consolidated financial statements for multiple businesses operating under an umbrella organization.

 Next
 You will get Create a new company – Business Type dialog box.

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  Select a business type. For example Service company.
 Next:-come choose An accounting Method
After select chart or Build your own company edit chart any time

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  Create a New Company - Accounting Method dialog box will be appearing.

 Choose an accounting method.

o Accrual Accounting:-income is recorded when sale occur. Expense are recorded when you receive
goods or service.
o Cash-Basis Accounting: Income is recorded when you receive the money Expense is recorded when
you pay the bills.

Important: Once you choose the accounting method and complete the New Company Setup wizard, you
cannot change it for this company.
 Select Accrual.
 Next
 You will get Create new company – Posting Method dialog box.

 The posting method determines how Peachtree processes transactions to journals and the general ledger.

o Real-Time Posting: Transactions are posted to the journals and the general ledger as they are
entered and saved. This method can save you time and is best for most business and network
environments. Most companies use this method.
o Batch Posting: Transactions are saved second step by the program and then posted in a group.
When you use batch posting, you can print registers and check the batch of transactions before
posting them to the journals.

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 You can change posting methods at any time.

 Next.
 You will get Create new company – Accounting Periods dialog box.

 Choose the accounting period structure as you want your company to follow.

( For example 12 monthly accounting periods )

 Each accounting period's starting and ending dates match those of the 12 calendar months. You can
choose to start your fiscal year in January or any other month of the year. Most companies follow this
fiscal year structure.

 Click Next.
 You will get Create new company – Fiscal Year dialog box.

Choose the first period of your fiscal year.

( example July )

 Next
 Finish.

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 Chapter 2 Maintaining
 Click Maintain on menu bar
 Select Chart of Account
 You will get Maintain chart of accounts dialog box.
Account ID --- 11000
Description Cash at Abyssinia Bank

Account Type cash

Save
Close

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 Account ID Description Account Type
1. Asset
11000 Cash at Abyssinia Bank Cash
11010 Petty cash Cash
11500 Account Receivable Account Receivable
11510 Allowance for uncollectible Account Receivable
11300 Note Receivable Account Receivable
11700 Vat Receivable Other current Asset
11800 Advance Profit Tax Other current Asset
11900 Employee Advance Other current Asset
11950 Suspense Account Other current Asset
12000-010 Inventory of computer Inventory
12000-020 Inventory of Printer Inventory
12000-030 Inventory of Scanner Inventory
12000-040 Inventory of Photo copy Inventory
13010 Office Supplies Other Current Asset
13020 Store Supplies Other Current Asset
13030 Prepared Insurance Other Current Asset
14000 Office Equipment Fixed Asset
14000-010 Accum.Dep. Office Equip Acc.Dep
15000 Computer Fixed Asset
15000-010 Accumulated Dep-Comp Acc.Dep
2. Liability
21000 Account payable Account payable
22000 Mortgage payable Long Term Liability
23000 Vat payable Other Current Liability
24000 Income tax payable Other Current Liability
25000 Pension fund payable Other Current Liability
26000 Credit union payable Other Current Liability
27000 Withholding Tax Payable Other Current Liability
28000 Profit Tax Payable Other Current Liability
3. Capital
31000 Capital Equity Does not Closed
32000 Retained Earning Equity Retained Earning
33000 Divided Equity Gets Closed
4. Income
41000-010 Sales of computer Income
41000-020 Sales of Printer Income
41000-030 Sales of Scanner Income
41000-040 Sales of Photocopier Income
42000 Interest Income Income
43000 Sales Discount Income
44000 Other Income Income
45000 Gain on Disposal Income
5. Cost of Sales
51000-010 Cost of computer Cost of Sales
51000-020 Cost of Printer Cost of Sales 8
51000-030 Cost of Scanner Cost of Sales
51000-040 Cost of Photocopier Cost of Sales
52000 Sales of computer Cost of Sales
53000 Fright Account Cost of Sales
6. Expence
61000 Advertising Expense Expense
62000 Pension Fund Expense Expense
63000 Office Supplies Expense Expense
64000 Store Supplies Expense Expense
65000 Salary Expense Expense
66000 Insurance Expense Expense
67000 Dep.Expense Office Computer Expense
68000 Dep.Expense Office Equipment Expense
69000 Transportation Expense Expense
69000-010 OT Expense Expense
69000-020 Rent Expense Expense
69000-030 Loss on Disposal Expense
69000-040 Bank Service Charge Expense
69010 Telephone Expense Expense
69020 Miscellaneous Expense Expense
69030 Loading and Unloading Expense
Expense

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 Maintain customers
In most businesses, customers pay for products and services only after they receive them. To
notify them that their goods have been shipped and that they owe you money, a bill, or invoice, is created
and sent, sometimes with the goods or sometimes separately. Sales Invoices show the goods that were
shipped and how much the customer is being billed for them. They are usually used for customers who are
given a certain number of days to pay, that is, customers who buy on credit. Invoices show the customer
name, shipping address, invoice number, payment terms, and items that were shipped, including a total and
any sales tax. Businesses that sell services rather than goods can create and use “Service”type inventory
items on Sales Invoices. Peachtree also has a library of service business forms, such as a service invoice
form, that you can use to print your invoices just the way you want.

 Click maintain menu bar

 Customers / Prospects.
 You will get Maintain Customers /
Prospects dialog box.

 Example customer Id 001

Name Abebe (Name of coustemer )

 Sales infomation select Gl sales Account (4000-01 Account Id)these Account is Income
select is mandatory

 Payment And credit:- these is payment meted customers terms of credit determined due date And
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 Discount for select :-

Maintain venders

Vendor Maintenance
The Maintain Vendors window stores information about the businesses you purchase goods and services
from. It’s also where you set up government agencies you pay taxes to. Once you’ve set up vendor
defaults, you can use some of the information there to help streamline the process of adding vendor
records.

Click Maintain vendor Id 005

Neme ---------

Click General (6000-01 select expense part) full it is purchase part

Vendor Credit Memos window to enter credit memos for returns to and credits from a vendor; you can
apply credit memos to any existing vendor invoices that have not been paid. All entries made on this
window are posted to General Ledger, vendor records, and when applicable, inventory and job records.
You have the choice of applying memos to jobs through the distribution list box.

Purchasing Goods and Services Every business needs to make purchases and spend money, whether it is
buying items for inventory, purchasing equipment and supplies for internal use, or just paying utility bills
and taxes. These purchases are made from other businesses and individuals who are called vendors in
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Peachtree. Each vendor has its own record that tracks addresses, phone numbers, payment terms, and so on.
In accounting and in Peachtree, tasks and reports that pertain to vendors are categorized as “Accounts
Payable.” Accounts Payable (AP) includes business tools such as Purchase Orders, Purchase/Receive
Inventory, and Payments.
Maintain Inventory item
Maintain inventory

Item Id 0006

Description cotton

Item class Stock item

GENERAL CUSTOMS HISTORY BILLOFMATERIALS ITEM

FIELDS ATTRIBUTES SERIAL
NUMBERS

GENERAL IS MANDATORY

GL SALES ACC. 4000-01 SALES

GL INVENTORY 1200-00 INVENTORY

GI COST OF SALES ACC.PRODUCT 5000.00 PRODUCT COST

Cost method select FIFO,LIFO AVARAGE,SPECIFIC

Assets :-debits side increase credits side decrease

Expense:- debits side increase credits side decrease

Income :- debits side Decrease credits side increase

Liability :- debits side Decrease credits side increase

Capital:- debits side Decrease credits side increase

Cost of Sales: If you import sales transactions that use inventory, the cost of sales amounts get regenerated
during the import process. If you are importing from another Peachtree company, the cost of sales in the
first company may be different than in the second company. That's because the order in which you import
may not match the order in which you entered the transactions.

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Stapes to create Sales Tax
Maintain ------- Sales tax --------- Next-------you will get set up sales tax dialog box.

Click Next

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.

Step adjust company information

 Maintain ----------- Company Information

 Fill the correct information in the dialog box. ----------------- Ok.

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How to Adjust global option before entering data’s to our peach tree
Step 1 :- From the menu bar open option then click global.

Step -2 From the accounting tab Adjust the following :

 In Decimal Entry we select Manual.

 If we select Automatic for example when we enter 100 it read as 1.00

 If we select Manual for example when we enter 100 it read as 100.00

 In Hide General Ledger Accounts we take the default .

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 In other option we thick on warn it a record was changed but not saved and Hide inactive
records.

 For example if we select the Warn if record was changed but not saved we get the
warranty dialog box.

 If we select on Hide inactive records we see only active

e customer, venders or Inventories in our reports.

 If we select on Recalculate cash balance….. we shows the total cash balance Automaticaly in our
window.

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 Chapter 3
Transactions
A/P Account (Purchases)

Enter or select a valid general ledger account to which you want to apply the amount due. This only applies
if your company uses the accrual method of accounting. If your company uses the cash-basis method, then
you can't enter an A/P account. The default for the field will be the last account entered. If no account has
been entered, this field will be blank.

If you apply a purchase order to an invoice, this information comes from the purchase order.

Note: If you have the Hide General Ledger Accounts global option activated, Peachtree will not display

 From the menu bar click on Task ------------ Receipt ------- Fill the correct information on
the dialog box.

Sales/Invoicing

Use the Sales/Invoicing window

to enter invoices for customers. All
entries made here are posted to
General Ledger, customer records.

 If you sent an invoice to a

customer, you apply the
receipt to the invoice.
Invoices entered in the
Sales/Invoicing. You use
Receipts and enter it on the
Apply to Revenues.

In Peachtree, Receipts you make to customer are recorded using Receipts s. A Receipts t is any amount of
money receive to a customer for goods or service Receipts. It could be made in cash, by check, or with a
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credit card.

 From the menu bar click on Task ------------ Payment.

 Fill the correct payment information in payments dialog box.

Payments: Use Write Checks to create individual payments.

Click Transaction task Receipts

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➥ To enter a Receipts t in Peachtree, select Tasks from the menu bar, and than Receipts
Eg ;- ABC company give service to xxxx company birr 5,000.00 the transaction :-

Cash-----------------------------------------5,650

Withholding A/r---------------------------100

Income------------------------------------------------5,000

Vat--------------------------------------------------------750

-When sale on credit

A/R ---------------------------------------5,650

Withholding A/r---------------------------100

Income------------------------------------------------5,000

Vat--------------------------------------------------------750

Cash----------------------------------------------------5650

A/r-------------------------------------------------------------5650

Making a Payment

In Peachtree, payments you make to vendors are recorded using Payments. A Payment is any amount of
money sent to a vendor for goods or service purchased. It could be made in cash, by check, or with a
credit
➥ To enter a Payment in Peachtree, select Tasks from the menu bar, and than payment

Paper Expense ------------------11,000.00

Vat----------------------------------1650

Withholding------220

Cash--------------12430

Eg ;- ABC company purchased paper from xxx company birr 11,000.00 on Account( On credit)
transaction :-

At the time of payment DR CR

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A/p----------------------------------------------------12.430.00
Cash ------------------------------------------------------------------ 12.430.00

Settlement for credit sale

-Kebede company in the date of 14/02/18 10,000 Quantity of cher ,unit price is
30.00 birr plus 15% vat ,withholding tax 2% reference no 12236 sale Aster plc
on credit

- Aster plc paid 200,000 in the date 30/28/2018 ck.no 122222 recored the
transaction.
- Aster plc paid 100,000 in the date 01/03/2018 ck.no
12224 recored the transaction.
- Aster plc paid 6,000 in the date 13/03/2018 ck.no 22222 recored the
transaction.
- Settlement for credit purchase

Purchase of 1 of Dell computer at 10,000 plus 15% vat From Jupiter

trading ,withholding tax 2% reference no 124569

- recored the transaction on credit

- recored the transaction. on cash

How to take Backup ( Save/ Save as )

 There are two data storage device;
1. External Device: Flash, Floppy, CD etc…
2. Internal Device: Internal hard disc, Local disk C, Local Disk D, My document, Desk top,
etc…

- File—backup---sellect from save in box then select flash or other

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 - File -------Restore

Steps to take

 File ---------- Restore

 Browse your name and select
 Next ( × 3)
 Finish.

How to delete company

1. My computer ------ C/drive ------- program file --------- sage software -------- peach tree ------
company --------- select the company name that you want to delete.

Chapter 4

Monthly / Yearly Procedures

General Journal Entries
In the General Journal, you enter both debits and credits to balance the transaction. making sure debits
equal credits.

You use the General Journal to enter those types of transactions that are not readily categorized in the
Tasks menu. Depreciation would be an example of something that would be entered into the General
Journal.

In General Journal Entry, you can also enter withdrawal and deposit adjustments you need to make during
account reconciliation. Sometimes adjustments must be made to account for errors, service charges, check
charges, or unrecorded withdrawals or deposits; such adjustments are necessary to help keep your bank
account balanced. When you select the Adjust button in Account Reconciliation, the General Journal Entry
window opens to receive this adjustment data.

Bank Reconciliation
 Task ------- Account reconciliation

From the Tasks menu, select Account Reconciliation.

Task system change Accounting period

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 Chapter 5
Report and closing
 Peachtree comes with many reports and forms that enable you to quickly and easily see the state of
your business and process your business needs. Each area of the program provides reports designed
to give you the insight behind your numbers. Peachtree comes with many reports and forms that
enable you to quickly and easily see the state of your business and process your business needs.
 Stapes to create report
1. From the menu bar select Report and forms
2. Click on Financial Statement
3. Duble Click on
4. Ok
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 5. You can save your report in the form of PDF or Excel.

Year-End Wizard
Finishing your company’s fiscal and payroll yearsis a very important process. There are many steps
involved, with one of the final steps being theprocess of actually closing out the fiscal and payroll years in
Peachtree. Once a year has beenclosed, you will not be able to make any changesto the data for that year.
 Select Tasks --------- System -------- Year-End Wizard -------- next (×4 ) ------ Backup ----Next---
- next ------- Finish.

As you walk through the steps of the Wizard, you will have opportunity to make a backup, guaranteeing
that your current data is preserved should you need to restore it for some reason. You can select whether or
not you want to close either the Fiscal year or Payroll year or both. Peachtree will stop you from closing
under certain circumstances. For instance, you will not be able to close the year if there are Purchase
Invoices that are marked “Waiting on Bill.” You must change these settings before you can continue.
Peachtree will also warn you if there are unprinted forms and give you a chance to print certain reports
before you close. Once all of the conditions are met, click Begin Close. You should not interrupt
this process and it could be quite lengthy. We recommend that you use the Year-End Wizard at the end of
the business day when you or other users will not need access to your company’s data.You can create an
archive—a read-only copy—of your files.

Peachtree reconciles the selected G/L account against your monthly statement.
You can reconcile any General Ledger account in Peachtree. Typically you would reconcile bank accounts,
cash accounts (such as petty cash),and credit card accounts. You should systematically reconcile accounts
each period so that you can quickly detect bank errors, match real-world data
with Peachtree data, and identify possible fraudulent activity.You can apply (or clear) transactions in three
different categories:
❖ deposits in transit
❖ outstanding checks
❖ other outstanding items (such as General Journal entries)
To avoid fraud and quickly detect errors, strive to have your bank send statements toward the end of a
period or month. Always reconcile your account as soon as it arrives. This ensures that your Peachtree data
is accurate and secure.

Reports ✪
Peachtree comes with many reports and forms that enable you to quickly and easily see the state of
your business and process your business needs. Each area of the program provides reports designed to give
you the insight behind your numbers. Peachtree comes with many reports and forms that enable you to
quickly and easily see the state of your business and process your business needs. Each area of the
program provides reports designed to give
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