Peachtree Complete Accounting

For Accounting Information Systems

PROFESSOR

DeVry University

1/25/2015
Table of Contents
Section 1: Peachtree Overview .................................................................................................................... 2
Section 2: Transactional Processing and Data Management........................................................................ 4
Revenue Cycle ........................................................................................................................................... 4
How can you create and Maintain Customers...................................................................................... 4
How can you create Customer Invoices ................................................................................................ 4
How can you apply Customer Payments .............................................................................................. 5
What Reports can you run to provide you with information regarding your Customers and their
orders .................................................................................................................................................... 5
What reports can you run in order to provide you with information regarding key revenue cycle
information- sales, accounts receivable, cash ...................................................................................... 5
Expenditure Cycle ..................................................................................................................................... 6
How can you create and Maintain Vendors ......................................................................................... 6
How can you create and Maintain Inventory ....................................................................................... 6
How can you generate Payments to Vendors....................................................................................... 6
What Reports can you run to provide you with information regarding your Vendors and your
Accounts Payable .................................................................................................................................. 7
What Reports can you run to provide you with information regarding key expenditure cycle
information- purchases, inventory, cash .............................................................................................. 8
References .................................................................................................................................................... 9

1|Page
Section 1: Peachtree Overview

Peachtree complete accounting system is an accounting information system for small to

medium sized businesses. This software produces records that are very similar to those found in
manual accounting systems. Peachtree Complete Accounting easy to learn because it is presented
in a logical workflow path for streamlined learning and processing of routine transactions.
Peachtree offers a business the ability to create a customizable dashboard that helps you
process large quantities of information about a single inventory item or service at a glance. It
enables quick research, comparisons, and decision making. That is excellent for understanding
quantities, usage, and complex assemblies’ relationships. Peachtree uses the double-entry
system. Use of this accounting principle helps reduce errors and prevent fraud with automatic
accounting checks and module-level security.
Peachtree allows business owners to automate invoices and checks, record customer
payments, track sales and inventory and manage employees. Peachtree allows you to manage a
wide range of accounts, even for multiple companies. In Peachtree, you always have access to
how your transactions are posted to your General Ledger accounts. Features like ‘Accounting
Behind the Screens’ allow you to view the journal entries associated with transactions while you
are in transaction screens, such as sales invoices, receipts and purchases. This gives you visibility
into how a transaction is being posted on both sides of the General Ledger, and allows you the
ability to change any of the General Ledger accounts that the transaction is posting to.
Peachtree allows its user to have multiple journals; you can set up special journals for
sales, purchases, cash receipts, cash disbursements along with a general journal. In addition to
the standard accounting for inventory tracking, reports and analysis, Peachtree provides customer
contact records and transaction histories. The transaction history function can show you all of the
details related to a single purchase, and all its related payments. Peachtree has the ability to
handle advanced inventory requirements as well as complicated job costing.
Peachtree offers a customer and sales navigation center that holds all the revenue cycle
accounts. This is where you enter sales transactions into the Sales and invoicing window, which
is just like filling out a sales invoice. Peachtree then uses this information to record the journal
entry to the sales journal or the cash receipts journal, and post the transaction to the appropriate
general ledger accounts. The balance of the customer's account will be automatically updated.
This is where you will also enter the payments from customers. There is also an icon for sales
returns and credits for creation of credit memos when things go wrong with an order.
Peachtree offers a vendors and purchases navigation center that holds all the purchase
cycle accounts. This is where vendor records are recorded and were you prepare a purchase
orders for your business. You will be able to record various types of purchases and record the
payments to your vendors. This section also has a place to record and track purchase returns.

2|Page
 Peachtree has many pre-programmed reports that can be displayed and customized for
your reporting needs, in every aspect, such as column width, font type, and more. It contains
over 118 reports you can customize to your specifications, plus, financial statements and
comparative budgeting, enabling business owners the opportunity to gain additional insights into
their operations. Peachtree has the most comprehensive suite of inventory reports.
Peachtree has an Employees and Payroll Navigation Center that records the key steps in
the payroll cycle. Before you are able to process payroll transactions using Peachtree, you first
need to complete the Payroll Setup wizard in Peachtree. This wizard will help you with all the
payroll setup needed to run payroll. You can run payroll yourself instead of using Peachtree's full
service payroll solution that requires an additional cost. Peachtree allows you to track the time
employees spend on individual tasks. You can also add on features such as W-2 form delivery
and electronically filed tax forms.

Peachtree has special computer requirements and pricing for their different types of
products and services. Peachtree requires a monthly or annual support subscription for
telephone, email, and chat support and access to its online support library. Peachtree has set
minimum system requirements that include at least a 1 GHz processor and 512 MB of RAM for
a single user installation of Peachtree. 1.8 GHz processor and 1 GB of RAM is recommended for
multiple users.
Peachtree offers many different stages and styles of its account software, even though we
are giving a review on Peachtree complete account I will be listing the different stages and prices
for Peachtree.
Peachtree prices are as follows, Peachtree First Accounting lists for $99.99, Peachtree
Pro Accounting sells for $199.99, Peachtree Complete Accounting costs $299.99 and bumping
up to Peachtree Premium Accounting sets you back $499.99.
Peachtree Complete Accounting is available in a Multi-User Value Pack (five seat license) for
$699.99. A Multi-User Value Pack (five seat license) for Peachtree Premium Accounting 2009
sells for $1,199.99.
Peachtree by Sage Quantum starts at $3,975 current customer upgrades. New customers pay
$4,450. It’s available in 10, 15, 20, 30, and 40 seat licenses.

3|Page
Section 2: Transactional Processing and Data Management
Revenue Cycle
The revenue cycle involves the customers that can be individuals or other businesses that
pay you money for goods or services. In accounting and in Peachtree, tasks and reports that
pertain to customers are categorized as accounts receivable. Accounts receivable includes
business tools such as quotes, sales orders, invoices, receipts, and deposits for banking purposes.

How can you create and Maintain Customers

To create customers in Peachtree, open the customers and sales navigation center in
Peachtree. Click the customer’s icon and select new customer from the drop down list provided.
This will open a new window, the maintain customers and prospects, this window has five tabs
along the top. From left to right where you enter information about the customers these tabs are
the general tab - records basic information about the customer, the contacts tab - records contact
information for the customer, the history tab - displays key details about the customer's
purchasing history, the sales information tab - records sales default information for the customer,
and the payment and credit tab - records the credit card details and any credit terms for the
customer. After you have entered the required information, you should save the new customer's
record by clicking the save icon or the save and new button if you have more customers to input.
To maintain or modify a customer record you simply open the maintain customers and prospects
window for that customer, make the required changes, and click save.

How can you create Customer Invoices

Creating customer invoices look to the left side of your company’s home screen and
select the customers and sales tab. Click the sales invoices icon and select new sales invoice
from the drop down list provided. This will open a sales and invoicing window, where you are
able to enter the details of the sale. In the customer Id box you will select the customer you are
creating the invoice, for from the drop down menu. The customer information will show in the
invoice box, than you will select your date from the calendar. You will need to assign an invoice
number, than you can move along to adding the order information. When you are done entering
all the order information, click the save button.

If the selected customer has a sales order that is open, that is, the merchandise has not
been delivered to the customer yet then the window displays the Apply to Sales Order No. tab
rather than the Apply to Sales tab. Here, in the drop down box next to Apply to Sales Order No.,
select the sales order number applicable to the sale. The inventory items ordered will then appear
in the rows. Once you have entered the information in the Sales and invoicing window,
remember to click the Save icon to save the invoice, journalize the transaction and post it to the
applicable accounts.

4|Page
How can you apply Customer Payments
Appling payments from customers you will need to look to the left side of your
company’s home screen and select the customers and sales tab. In this screen you will click on
the receive money icon, and select receive money from customer from the drop down list
provided. This opens the receipts window where you can enter the details of the receipt into
Peachtree. In this screen you need to select the customer from the drop down list in the customer
Id box, than select the invoice number under that customer that is being paid. If the customer is
paying by check you would put the check number in the reference box. The amount paid column
is where you put the amount paid; if the amount paid is the full balance you can check the box in
the pay column. Once you have reviewed the information in the receipts window, remember to
click the Save icon to record the cash receipt.

What Reports can you run to provide you with information regarding your Customers and
their orders
In Peachtree's menu bar, simply click Reports and Forms icon and then select the
appropriate reporting category. In this case we are working with customers so we will pick the
accounts receivable. Than pick from the list under accounts receivable, they include, Customer
List, the customer list will show you all your customers by their customer Id number listing their
contact information including their address, and phone number, Customer Ledgers will show
detailed transactions information and outstanding balances, Customers Sales History shows sales
history for each customer including cash sales, Customer Transaction History shows the invoices
and related transaction by customers, Items Sold to Customers shows quantity, amount, cost of
sales, gross profit, and gross margin of items sold to customers, Invoice Register shows the
invoice list showing date, quote number, customer name and invoice amount, and more. Each of
these reports can be customized to fit you specific needs.

What reports can you run in order to provide you with information regarding key revenue
cycle information- sales, accounts receivable, cash
In Peachtree's menu bar, simply click Reports and Forms icon and then select the
appropriate reporting category in this case we are working with the revenue cycle so we will pick
the from the accounts receivable list that includes the Cash Receipts journal shows money
received from customers shown in journal format, the Aged Receivables shows customers with
outstanding balances sorted by age category, the Sales Journal shows sales transactions in journal
format, the Sales Orders shows orders in journal format with debit and credits, and more.

5|Page
Expenditure Cycle
This section will take you through the purchases cycle. You will be able to set up vendor
records in Peachtree and how to prepare a purchase order for your business. Next, you will
discover ways to record various types of purchases and how to record the payments to your
vendors. Finally, you will also be able to record a purchase return just in case you want to return
items of inventory to your suppliers.

How can you create and Maintain Vendors

To set up vendors in Peachtree, open the Vendors and Purchases Navigation Center in
Peachtree. Click on the Vendors icon and select New Vendor from the drop down list provided.
This opens the Maintain Vendors window where you enter information about the vendor in
Peachtree. There are four tabs on this window, in the General tab you will set up the Vendor Id,
add the name of the vendor, mailing address, contact person and the type of expense account and
if they require a 1099. In the Addresses tab; in this tab you will record alternate addresses for the
vendor. In the History tab, you can specify key details about your company's purchasing history
with the vendor. Entering the beginning balances for venders happens in the history tab. In the
Purchase Info tab, this tab is used to record purchase default information for the vendor. The
payment terms that are offered by a particular vendor may be different to the vendor default
terms you will customize then in this tab.

How can you create and Maintain Inventory

To create an item of inventory into Peachtree, open the Inventory and Services
Navigation Center. Click the Inventory Items icon and select New Inventory Item from the drop
down list provided. This will open the Maintain Inventory Items window where you can enter the
details of the inventory item. You will start by giving the inventory item an Item ID, a short
identification code for the item of inventory. Enter a short description of the item of inventory.
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. Click the Beginning Balances arrow down the
bottom right hand corner of the Maintain Inventory Items window. This will open the Inventory
Beginning Balances window. Select the item of inventory from the list by clicking on it. Enter
the number of units of that inventory item on hand in the Quantity field. Enter the purchase price
(unit cost) of one unit of that item of inventory. Peachtree automatically calculates the total cost
of that many items of that type of inventory. In order to modify the inventory record you simply
open the Maintain Inventory Items window for that item of inventory, make the required
changes, and click Save.

How can you generate Payments to Vendors

To generate payments to vendors you must first enter the bills when received or purchase
orders. In the Vendors and Purchases Navigation Center in Peachtree, click the Enter Bills icon
and select New Bill from the list of options available when dealing with a bill received.
Purchases and Receive Inventory window then appears, where you are able to enter information

6|Page
about the purchase. First select the name of the vendor from the drop down vendor Id. The Remit
to, Ship to will auto fill after you enter the vendor Id. Click the calendar icon to select the date of
the purchase invoice. Enter the vendor's invoice number into the Invoice No. field. For each item
ordered, enter the number of that item received from the vendor. Peachtree automatically
calculates the total amount of each type of item received from the vendor. Peachtree
automatically calculates the total value of the invoice. Once you have entered the information in
the Purchases and Receive Inventory window, remember to click the Save icon to save the
purchase invoice, journalize the transaction and post it to the applicable accounts. From a
purchase order with a vendor that is open (that is, the merchandise has not yet been delivered by
the vendor) then the window displays the Apply to Purchase Order No. tab rather than the Apply
to Purchases tab. Here, in the drop down box next to Apply to Purchase Order No., select the
purchase order number applicable to the purchase. The inventory items ordered will then appear
in the rows below. For each item ordered, enter the number of that item received from the
vendor. Peachtree automatically calculates the total amount of each type of item received from
the vendor. Peachtree automatically calculates the total value of the invoice. Once you have
entered the information in the Purchases and Receive Inventory window, remember to click the
Save icon to save the purchase invoice, journalize the transaction and post it to the applicable
accounts.

To record the payment to a vendor, open up the Vendors and Purchases Navigation
Center. Click on the Pay Bills icon and select Pay Bill from the list of options presented. If a
check is used to pay for the outstanding purchase invoices, enter the reference number of the
check in the Check Number field. Click the calendar icon to select the date of the payment. If the
business has more than one type of cash account, select the cash account from which the
payment of cash is made. If your business has paid the full amount of the invoice, then click the
box in the Pay column for that invoice to enter a check mark in that column. Peachtree
automatically fills in the Amount Paid column with the total amount due for that invoice. Once
you have reviewed the information in the Payments window, remember to click the Save icon to
record the cash payment, journalize the transaction and post it to the applicable accounts.

What Reports can you run to provide you with information regarding your Vendors and your
Accounts Payable
Reports that will help your business with vendors and accounts payable are, Vendor list
report shows vendors contact information and their tax Id number. A vendor ledger report shows
each vendor and the transactions and amounts for a period of time. The purchase journal report
shows purchase made in journal format listing debits and credits. Aged payables report shows
vendors with outstanding invoices sorted by aging category. A 1099 vendor report list the vendor
information with transaction amount. Any of these reports can be customized for more detail.

7|Page
What Reports can you run to provide you with information regarding key expenditure cycle
information- purchases, inventory, cash
I think my favorite is Item purchased from vendor’s report this report gives you a list of
quantity and amount of item purchased from each vendor. Cash Requirements report shows the
bills you need to pay as of a date you select, it includes discounts and ageing information. The
purchase order report give us a list of all purchase orders information including the quantity
ordered, quantity received, and quantity remaining. Keep in mind that all these reports can be
customized to show other details.

8|Page
References
Jim Mazza, G. C. (2012). Peachtree 2011. In G. C. Jim Mazza, Peachtree 2011 (pp. 1-587). St. Paul,
Minnesota: Paradigm Publishing, Inc.

Sage Software, I. (2015). Sage 50 Accounting – Small Business Accounting Software. Retrieved from Sage
50 Accounting – Small Business Accounting Software: http://na.sage.com/us/sage-50-
accounting

9|Page