DESSU ICT/PEACHTREE ACCOUNTING 2020

Over view of Peachtree Accounting Tasks

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PART ONE
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Set Up New Company

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The following procedures are to implement a new company.

1st step: Click on “Set up New Company” from Peachtree accounting start screen or “New Company” from file menu

2nd step: Enter any information in company information window

e.g.:- company name, address, telephone, city, country, e-mail etc

Task View
3rd step: Select Business type is choosing from:
area

e.g.:- Corporation, sole proprietorship, limited liability company & partnership

4th step: Select chart of accounts

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There are five options of chart of account for new company choose from them the fourth one i.e. Build your own chart of account

5th step: Select accounting method. There are two types of accounting methods Accrual and Cash basis of accounting based on the timing of income
(revenue) and expense recognition periods. Most company chooses Accrual basis accounting.

6th step: Select Posting method. There are two methods of posting method Real-time & Batch method. If select real-time your transaction saved and
post to general ledger or to select batch method your transaction post to ledger at the second step.

7th step: Select accounting method. There are two options the 1st option 12 monthly accounting periods & the 2nd option 12 monthly, quarterly & semi-
annual accounting periods choose one of them. Each accounting period’s starting and ending dates match those your company use calendar i.e. E.C or
G.C. After create your company it can’t change accounting method and accounting period.

8th step: Click finish button to finalize the new company setup process.

How open new company information

1st step: From menu bar click maintain

2nd step: Click company information.

3rd step: After Display Company information window change posting method, business type and add any information about your company

4th step: Click ok button/icon

How to post your transaction from journal to ledger

1st step: Click task from menu bar

2nd step: Click system. If you’re posting method is batch method

3rd step: Click post button than click Ok icon but you’re posting method is real-time don’t use post the

transaction you’re transaction must be posted.

Set up Chart of Account

Chart of account is to coding the accounting elements.

1st step: Click maintain from menu bar

2nd step: Select chart of account option

Peachtree displays the maintain Chart of Account window

3rd step: Enter an account ID, description for the account

4th step: Select account type from the drop-down list.

E.g.: Account number 11000, description Cash on Hand & account type Cash

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CHART OF ACCOUNTS

Account ID Account Description Account Type

10000 Petty Cash Cash

10100 Cash on Hand Cash

10200 Regular Checking Account Cash

10300 Payroll Checking Account Cash

10400 Savings Account Cash

10500 Special Account Cash

10600 Investments-Money Market Cash

10700 Investments-Cert. of Deposit Cash

11000 Accounts Receivable Accounts Receivable

11100 Commissions Receivable Accounts Receivable

11400 Other Receivables Accounts Receivable

11500 Allowance for Doubtful Account Accounts Receivable

12000 Inventory Inventory

14000 Prepaid Expenses Other Current Assets

14100 Employee Advances Other Current Assets

14200 Notes Receivable-Current Other Current Assets

14700 Other Current Assets Other Current Assets

15000 Furniture and Fixtures Fixed Assets

15100 Equipment Fixed Assets

15200 Automobiles Fixed Assets

15300 Other Depreciable Property Fixed Assets

15400 Leasehold Improvements Fixed Assets

15500 Building Fixed Assets

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15600 Building Improvements Fixed Assets

16900 Land Fixed Assets

17000 Accum. Depreciation – Furniture Accumulated Depreciation

17100 Accum. Depreciation – Equipment Accumulated Depreciation

17200 Accum. Depreciation – Automobile Accumulated Depreciation

17300 Accum. Depreciation – Other Accumulated Depreciation

17400 Accum. Depreciation – Leasehold Accumulated Depreciation

17500 Accum. Depreciation – Building Accumulated Depreciation

17600 Accum. Depreciation - Bldg Imp Accumulated Depreciation

19000 Deposits Other Assets

19100 Organization Costs Other Assets

19150 Accum. Amortiz. - Org. Costs Other Assets

19200 Note Receivable-Noncurrent Other Assets

19900 Other Noncurrent Assets Other Assets

20000 Accounts Payable Accounts Payable

23000 Accrued Expenses Other Current Liabilities

23100 Sales Tax Payable Other Current Liabilities

23200 Wages Payable Other Current Liabilities

23300 Deductions Payable Other Current Liabilities

23400 Federal Payroll Taxes Payable Other Current Liabilities

23500 FUTA Tax Payable Other Current Liabilities

23600 State Payroll Taxes Payable Other Current Liabilities

23700 SUTA Payable Other Current Liabilities

23800 Local Payroll Taxes Payable Other Current Liabilities

23900 Income Taxes Payable Other Current Liabilities

24000 Other Taxes Payable Other Current Liabilities

24100 Employee Benefits Payable Other Current Liabilities

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24200 Current Portion Long-Term Debt Other Current Liabilities

24400 Deposits from Customers Other Current Liabilities

24500 Commissions Payable Other Current Liabilities

24800 Other Current Liabilities Other Current Liabilities

24900 Suspense-Clearing Account Other Current Liabilities

27000 Notes Payable-Noncurrent Long Term Liabilities

27100 Deferred Revenue Long Term Liabilities

27400 Other Long-Term Liabilities Long Term Liabilities

39003 Common Stock Equity-doesn't close

39004 Paid-in Capital Equity-doesn't close

39005 Retained Earnings Equity-Retained Earnings

39007 Dividends Paid Equity-gets closed

40000 Commissions Earned Income

40200 Brokerage Fees Earned Income

40400 Interest Income Income

40600 Other Income Income

45400 Finance Charge Income Income

45500 Shipping Charges Reimbursed Income

48000 Fee Refunds Income

49000 Fee Discounts Income

50000 Cost of Sales Cost of Sales

57000 Cost of Sales-Salaries and Wag Cost of Sales

60000 Default Purchase Expense Expenses

60100 Advertising Expense Expenses

60500 Amortization Expense Expenses

61000 Auto Expenses Expenses

61500 Bad Debt Expense Expenses

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62000 Bank Charges Expenses

62500 Cash Over and Short Expenses

63000 Charitable Contributions Exp Expenses

63500 Commissions and Fees Exp Expenses

64000 Depreciation Expense Expenses

64500 Dues and Subscriptions Exp Expenses

65000 Employee Benefit Programs Exp Expenses

65500 Freight Expense Expenses

66000 Gifts Expense Expenses

66500 Income Tax Expense Expenses

67000 Insurance Expense Expenses

67500 Interest Expense Expenses

68000 Laundry and Cleaning Exp Expenses

68500 Legal and Professional Expense Expenses

69000 Licenses Expense Expenses

69500 Loss on NSF Checks Expenses

70000 Maintenance Expense Expenses

70500 Meals and Entertainment Exp Expenses

71000 Office Expense Expenses

72000 Payroll Tax Expense Expenses

72500 Penalties and Fines Exp Expenses

73000 Other Taxes Expenses

73500 Postage Expense Expenses

74000 Rent or Lease Expense Expenses

74500 Repairs Expense Expenses

75500 Supplies Expense Expenses

76000 Telephone Expense Expenses

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76500 Travel Expense Expenses

77000 Salaries Expense Expenses

77500 Wages Expense Expenses

78000 Utilities Expense Expenses

89000 Other Expense Expenses

89500 Purchase Disc-Expense Items Expenses

90000 Gain/Loss on Sale of Assets Expenses

     

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From the list of Accounting type select one of them depend on natures of account description:
1) Cash 9) Other current liabilities
2) Account Receivable 10) Long-term liabilities
3) Inventory 11) Equity doesn’t close
4) Other Current Asset 12) Equity get close
5) Fixed Asset 13) Equity Retainer Earning
6) Other Asset 14) Income
7) Accumulation Deprecation 15) Cost of Sales
8) Account Payable 16) Expense

5th step: After entry the transaction click save button

6th step: To Add new Account/transaction to follow step 3, 4 and 5.

Set up Beginning Balance

1st step: After create chart of account click Beginning Balance icon from window of chart of account
2nd step: Select accounting period
E.g: select March, 20XX
3 step: Record each of accounting transaction on debit and credit side in-figurative trail balance must be zero (0) balance
rd

4th step: Click ok button/icon

Student Activities
Use the following information to complete a new company set up

Activity 1

Company name and information

DH GEDA Trading Company

 Nekemte Ethiopia P.O.Box 7384

 Business type- partnership
 Chart of account- Build your own
 Methods of accounting- Accrual
 Methods of posting- Batch
 Accounting period- No of period 12
 Fiscal year start- JULY 1ST, 2017

Activity 2

Set up the following chart account as of January 31, 2016

Account Id Account description Account type Debit Credit Budget

11100 Cash in Bank Cash 75000

12100 Account Receivable A/R 20000

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12110 Allow for Uncollectible A/R 5500

12200 VAT Receivable A/R

13100 Merchandise Inventory Inventory 150000

18100 Building Fixed Asset 665000

18110 Accumulated dep. Building Acc. Depreciation 115000

21100 Account Payable A/P 42000

21200 VAT Payable Other current liabilities 25000

31100 Common Stock Equity doesn’t close 250000

31200 Retained Earning Equity Retained Earning 472500

41100 Sales Income 40000

51100 Cost of Goods Sold Cost of sales 50000

Activity 3

Maintain the following user Id and password with their user limitation

User Id Pass word Data Access

001 ONE Administrator

002 TWO Full access to sales and purchase only

003 THREE Full access to Inventory and employees only

Activity 4

1. Customer defaults:- The standard credit term and credit limit are 2/10, n/30 br 200,000 respectively

Customer Id Customer Name Address Sales Term Beginning Balance

default
Invoice Date Balance A/R

00-01 Bikila Comp. Center Bord 41100 2/10,n/30 SI-01 01/01/2004 3250 12100

2/10,n/30 SI-02 01/02/2004 4250 12100

00-02 NG Shop Derge 41100 2/10,n/30 SI-03 01/01/2004 12500 12100

2. Vendor defaults:- The standard credit term and credit limit are 2/10, n/30 br 200,000 respectively

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Vendor Id Vendor Name Address Purchase Term Beginning Balance
default
Invoice Date Balance A/P

VO-01 LH Trading Bake Jama 51100 2/10,n/30 PI-01 01/01/2004 22000 21100

VO-02 Sol. Electronics Arada 51100 3/15,n/30 PI_02 01/02/2004 20000 21100

VO-03 FIRA Lideta

3. Inventory defaults:- G/L sales (41100), G/L Inventory (13100), G/L cost of sales (51100) and G/L Freight (61600)

Id Description Selling Location Unit Min stock Reorder Qty Beginning balance
measure
Qty Unit cost

001 Radio 750 Shelf-1 Each 50 60 100 500

002 Stereo 50 Shelf-2 Each 1000 1500 2000 37.50

003 Transistor 50 Shelf-3 Each 250 300 500 35

004 Paper 2 Shalf-4 Sheet 2500 3000 5000 1.50

Project work for Computerized Accounting / Peachtree Accounting

1. Set up a new Company using the given below information

 Company Name ……………………….. Kenbon Computer Center
 Address line 1…………………………… Qeso sub city, Kebele 05
 Address line 2 …………………………. House No. 2892/05
 Telephone ………………………………. Give its any number
 Business type ………………………….. Corporation
 Chart of Account …………………….. Build your own company
 Accounting method ………………… Accrual
 Posting method ……………………… Real time
 No of Accounting period ……………… Quarter
 Fiscal year to start ………………… January 1, 2016
2. Enter your own beginning balance for each account of Dec. 31st , 2016

Account ID Account Name Debit Credit

101 Cash In Bank 111,930

102 Supplies 13,500

103 Account Receivable 42,100

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104 Prepaid Insurance 16,500

105 Inventory 7,000

106 Office Equipment 10,000

107 Accumulated Depn. Equipment 750

108 Office Furniture 15,000

109 Accumulated Depn. Furniture 1,000

110 Building 100,000

111 Accumulated Depn. Building 467

201 Account Payable 22,000

202 Interest Payable 8,000

203 Notes Payable 18,000

301 Common Stock 150,000

302 Retained Earning 115,813

Set up User Id and Password

Step 1. From menu bar click Maintain icon

Step 2. Click on User Security

Step 3. Click OK

Step 4. Click on New User

Step 5. Enter on create administrator User Id and Password

Step 6. Click Save button than enter the next User Id and Password than Save

Setting up Customers Defaults

Step 1. From menu bar click Maintain icon

Step 2. Click on Default information

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Step 3. Click Customers than enter Customers Defaults information

Step 4. Click OK

To Set Up a Customer using the menu

Step 1. Select Customers/prospects from the maintain menu

Maintain Customers/prospects window displays

Step 2. When you’re finished filling in the window, select the Save icon

Step 3. Entering Customer’s Beginning Balance

Under this two tab: - Invoices and Customer Balance

Step 4. Select the Save icon to return to the Customers window

Setting up Vendor Defaults

Step 1. From menu bar click Maintain icon

Step 2. Click on Default information

Step 3. Click Vendor than enter Vendor Defaults information

Step 4. Click OK

To Set Up a Vendor using the menu

step 1. From the Maintain menu, select Vendors

step 2. Enter an ID for the New Vendor at the new vendor field and press ENTER

step 3. Enter the Vendor Information

step 4. When you’re finished filling in the window, select the Save icon

step 5. Select the Beginning Balance button on the General tab

step 6. Enter the Beginning invoice or invoices for this Vendor

step 7. When you’re finished entering the invoice, select the Save icon

step 8. Select the Close icon to return to the Vendor window

Setting up Inventory Defaults

Step 1. From menu bar click Maintain icon

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Step 2. Click on Default information

Step 3. Click Inventory Item than enter Inventory Defaults Item information

Step 4. Click OK

To Set Up a Inventory Item using the menu

Step 1. Select Inventory Items from the Maintain menu.

The Maintain Inventory Items windows displays

Step 2. Select the type of description (for Purchases or for Sales) and

enter a detailed description for each

step 3. Enter the five Sales levels, Unit of Measure, Item Type, and Location for the item

step 4. You can make change to the three G/L accounts that are displayed with their default value.

If they are not correct, make your modifications

Step 5. Select the Costing Method (Average Cost, FIFO, OR LIFO).

All Stock items and Assemble need to use the same Costing Method.

Step 6. Select the Item tax Type Code (determines whether it is exempt from taxes or not)

Step 7. Enter the Minimum Stock level (for reordering purposes) and Reorder Quantity (Cases or bulk ordering limit)

Step 8. Select the Custom Fields tab and enter your field information (if applicable) than Select the save icon

step 9 . When ready (if needed), select the Beginning Balances icon on the General tab.

Enter Quantity and Cost of the items prior to beginning Peachtree.

Step 10. Select OK and the Save icon

How setup Allocating Budgets for the Current Fiscal Year

Budgeting is one of the fundamental tasks that any business. In the absence of budget one cannot measure efficiency, effectiveness and
economy of operations.
1st step: Select maintain chart of account from maintain menu
2nd step: Select Budgets from the Maintain chart of accounts
3rd step: In the Account ID field, enter or select the account ID of the account you want to create a budget for
4th step: Enter budget amount for the current year
5th step: Click save button
6th step: Repeat step 2 through 5 for each G/L account you want to create a budget for.

Set up maintaining sales Tax Authorities

Sales tax authorities are components of sales Tax Codes, which calculate taxes on sales to customers.
1st step: Set up a vendor to whom you send sales tax revenue.
2nd step: Select Sales Taxes from the maintain menu, then select sales Tax Authorities from the submenu

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3rd step: Enter an identifying code (ID)
4th step: Enter a description of this taxing authority
5th step: Select the vendor who is the taxing authority governing this tax
6th step: Enter or select the sales tax payable G/L accounting to be updated by sales entered and posted with tax code,
7th step: Enter a Tax Rate, select single tax rate
Eg: to enter one percent, type 1.00 not 1%. If you type 1% in the field, the system doesn’t accept such an entry.
8 step: select Save to record your entry when you have completed taxing authority.
th

Activity of sales tax authority

Sales Tax Tax description Tax Authority (sales tax payable to) Sales Tax Tax Rate
Authority ID GL account

RTA VAT Oromia Revenue Authority VAT payable 15%

Set Up Sales Tax Codes

1st step: Select sales taxes from the maintain menu, and then select Sales Tax Codes from submenu.

2nd step: Select an existing sales tax code, or type a new one

3rd step: Enter a description of Sales Tax Code

4th step: Select the Tax Freight check box if you are required to add sales tax to any freight charges that your customers must pay for shipping
services. If this step to applicable country’s tax structure treats freight charges as tax able item.

5th step: From sales tax authority list, enter each sales tax authority that is to be including when computing the rate for this sales tax code.

6th step: Select Save to record your entries;

7th step: Select Close to exit this window.

8th step: Repeat step 2 to 7 if your business collects different sales tax and pay for different tax authorities.

Activity of sales tax code

Sales Tax Code Description

ORO-VAT Oromia Regional State Tax

How to open Microsoft Excel

 Click start button
 Click All Program then Microsoft office
 Click from Microsoft office on Microsoft Excel then Open

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Income Tax table

Schedule “A”

No Taxable monthly income Rates of tax (%) Deductable amount (Birr)

(Birr)

1 0-150 0% 0

2 151-650 10% 15.00

3 651-1400 15% 47.50

4 1401-2350 20% 117.50

5 2351-3550 25% 235.00

6 3551-5000 30% 412.50

7 Over 5000 35% 662.50

Gross earning = Basic salary + Allowances + Over time earnings

Total deductions = Income taxes + Pension contribution + other deduction

Pension = Basic salary X Pension Rate (6%)

Net Pay = Gross earning – Total deductions

How to create formula on Excel

How to create Income Tax formula (Form gross earning)

Let C11 is gross earning

=if(C11<=150,0,if(C11<=650,C11*10%-15.00,if(C11<=1400,C11*15%-47.50,if(C11<=2350,C11*20%-117.50,if(C11<=3550,C11*25%-
235.00,if(C11<=5000,C11*30%-412.50,C11*35%-662.50)))))) then click enter

How to create Pension formula (From Basic salary)

Let B11 is basic salary

=B11*7% then click enter or Basic salary X Rate of pension

How to create Total deduction (Income tax + Pension contribution)

Let E11 is Income tax and F11 is Pension contribution

=sum (E11:F11) then click enter or =E11+F11 then click enter

How create Net Pay (Gross earning – Total deduction)

Let C11 is gross earning and G11 is Total deductable

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=C11-G11 then click enters

PART TWO
How to Set Up product Sales Quote
Quote is a document containing a proposed list of item or services and their price amount that a customer might buy, if the customer agrees
to buy quote sales to convert to sales order or invoice is issued.
Quotes are not posted to general ledger. When you convert the quote to an invoice, the sale can be posted to the general ledger.
1st step: From the Tasks menu
2nd step: Select Quotes/Sales orders; then select Quote from the submenu
3rd step: Enter or select the customer ID
4th step: Leave the Quote number field blank if you want Peachtree to print the quote, enter the date of the quote
5th step: Enter any information for each item included the item ID, description, unit price.
6th step: Select the print button if you want to print and save the quote. Otherwise, click the Save button.
ACTIVITY of Sales Quote

How entry sales quote information data on Peachtree

No Customer ID Quantity Item Date Price Sales tax Quote number

& Name

1 AA-1 15 DM-1 Jan 30 8000 VAT 1

2 BB-1 20 AM-1 Feb 10 8000 VAT 2

3 DD 25 TM-1 Feb 25 10000 VAT 3

4 GG-1 5 DM-1 Mar 6 8000 VAT 4

5 YL-1 10 TM-1 Apr 14 10000 VAT 5

6 BB-1 15 DM-1 Aug 20 8000 VAT 6

How to Covert a Quote to an Invoice or Sales Order

When our customer has agreed to the sale, instead of re-entering the sales information in the window of sales order, we can save time and convert
the quote directly to a sales order or sales invoice.

1st step: From the Tasks menu, select Quote/Sales Orders; then select Quote from the submenu

2nd step: In the Quote window, select the open toolbar button, and select the quote you want to convert to an invoice or sales order.

3rd step: When the quote is displayed, select the convert button. Peachtree displays the convert quotes window.

4th step: Choose what you want to convert the quote to among the three choices (i.e. sales/invoice, sales/invoice and print know, sales order)

5th step: After you select the option you want to use, select OK, and the quote is converted and the accounting information is updated.

ACTIVITY of Convert Quotes

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The Quote information is given here not to entry them as quotes again but for conversion purpose.

No Customer ID Quantity Item Date Price (Birr) Sales tax Quote no

& Name

1 AA-1 15 DM-1 Jan 30 8,000.00 VAT 1

2 BB-1 20 AM-1 Feb 10 8,000.00 VAT 2

3 DD 25 TM-1 Feb 25 10,000.00 VAT 3

4 GG-1 5 DM-1 Mar 6 8,000.00 VAT 4

5 YL-1 10 TM-1 Apr 14 10,000.00 VAT 5

6 BB-1 15 DM-1 Aug 20 8,000.00 VAT 6

Instruction

Convert the above quote information as follows:

No Quote number Convert to Invoice number Sales order number

1 1 Sales/invoicing OR-45

2 4 Sales order TY-555

3 5 Sales order TY-556

4 6 Sales/invoicing OR-46

How to set up Sales order of Inventory

Sales orders are not posted to general ledger. When sales order apply to a customer invoice, the sales order data is transferred to the sales
invoice. Then, the sales can be posted to the general ledger.
1 step: From menu bar click Tasks button
st

2nd step: Click Quotes/Sales orders/Proposes and then Sales Orders

3rd step: From sales order window select Customer ID
4th step: Entry sales order number (SO No) and select inventory item ID, Description, price
5th step: Click “Save” button then for another transaction follow step 3 and 4

ACTIVITY of sales order

Set up sales order information data

No Customer ID & Quantity Item Date Sales order no. Price Sales tax
Name

1 AA-1 40 AM-1 Sep 5 & ship by sep 30 TY-557 8,000.00 VAT

2 BB-1 30 DM-1 Sep 25 & ship by Oct 20 TY-558 8,000.00 VAT

3 DD-1 20 TM-1 Oct 8 & ship by Nov 15 TY-559 10,000.00 VAT

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4 GG-1 10 TM-1 Nov 7 & ship by Nov 25 TY-600 10,000.00 VAT

Set up Sales/Invoicing
1 step: From the Tasks menu, select Sales/Invoicing. Peachtree display sales/invoicing window.
st

2nd step: Enter or select the Customer ID

3rd step: If this customer has open sales orders, the Apply to Sales Order tab appears in front than select sales order number. To enter new
item on the invoice, select the Apply to Sales tab.
4th step: Entry the Invoice number field blank
5th step: If you have received a partial or full payment for this invoice at the time of the sale, select the amount Paid at sales button. Peachtree
display the Receive Payment window, where you can enter receipt information.
6th step: Select the Print button if you want to print and save the invoice. Otherwise, click the Save button.
7th step: Close sales/Invoicing window
ACTIVITY of Sales Invoice
The following data regarding sales/Invoicing transaction as given bellow:
Instruction: Enter sales information

No Customer ID & Quantity Item Price Sales tax Applicable tab Date Invoice no.
Name Id

1 AA-1 10 AM-1 8,000.00 VAT Sales Jan 30 TT-120

2 BB-1 5 DM-1 8,000.00 VAT Sales Feb 20 TT-121

3 DD 15 TM-1 10,000.00 VAT Sales Mar 24 TT-122

4 GG-1 20 AM-1 8,000.00 VAT Sales Apr 16 TT-123

5 TL-1 40 TM-1 10,000.00 VAT Sales May 10 TT-124

6 BB-1 10 AM-1 8,000.00 VAT Sales July 5 TT-125

7 AA-1 30 AM-1 8,000.00 VAT SO Sep 30 TT-126

8 BB-1 30 DM-1 8,000.00 VAT SO Oct 20 TT-127

9 DD 10 TM-1 10,000.00 VAT SO Nov 15 TT-128

10 GG-1 10 TM-1 10,000.00 VAT SO Nov 25 TT-129

Additional information:

Bonsa Biya (BB-1) has paid 5,000.00 birr as down payment at the time of sales.
Payment method: check
Cash account: checking account
Reference number: JT 1560
Deposit ticket: 123

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Set up purchase order
1st step: Click tasks menu from menu bar
2nd step: click purchase order
3rd step: After display purchase order window record purchase order information
Eg:- select vendor id, record purchase order number, quantity, item, price and so on
4th step: Click save icon

ACTIVITY of Purchase Order

No Vendor ID & Quantity Item Unit Price Date Good PO no.

Name Id thru.

1 CC-1 18 AM-1 7,000.00 Jan 30 Feb 29 PO-0020

2 GG-2 19 DM-1 7,000.00 Feb 20 Mar 21 PO-0021

3 DD 25 TM-1 9,000.00 Mar 24 Apr 23 PO-0022

4 KK-1 25 AM-1 7,000.00 Apr 16 May 16 PO-0023

5 TM-1 48 TM-1 9,000.00 May 10 Jun 9 PO-0024

6 FF-1 20 AM-1 7,000.00 July 5 Aug 4 PO-0025

Set up purchase/Received Inventory

1st step: Click Tasks menu form menu bar
2nd step: click purchase/Received Inventory
3rd step: After display purchase/Received Inventory window record any information on this window
Eg :- select vendor ID, entry purchase invoice number, quantity, item, price and so on
4 step: If pay cash on purchase date use amount to be paid box then entry reference number, or if purchase on credit don’t use paid box
th

5th step: click save/post icon from menu bar of purchase/received Inventory window

ACTIVITY of Purchase/Received Inventory Apply to purchase order

No Vendor ID & Quantity Item Unit Date Applicable Select Invoice Payment
Name Id Price tab. PO no. no. method

1 CC-1 18 AM-1 7,000.00 Feb 10 Purchase order PO-0020 CRV-001 FULL

2 GG-2 19 DM-1 7,000.00 Feb 27 Purchase order PO-0021 CRV-002 PARTIAL

3 DD 25 TM-1 9,000.00 Mar 29 Purchase order PO-0022 CRV-003 FULL

4 KK-1 25 AM-1 7,000.00 Apr 26 Purchase order PO-0023 CRV-004 FULL

5 TM-1 48 TM-1 9,000.00 Jun 4 Purchase order PO-0024 CRRV-001 CREDIT

6 FF-1 20 AM-1 7,000.00 July 25 Purchase order PO-0025 CRRV-002 CREDIT

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ACTIVITY of Purchase/Received Inventory Apply to purchase

No Vendor ID & Quantity Item Unit Date Applicable Invoice Payment

Name Id Price tab. no. method

1 GG-1 28 AM-1 7,900.00 Feb 15 Purchase CRV-005 FULL

2 CC-2 39 DM-1 7,900.00 Feb 28 Purchase CRV-006 PARTIAL

3 DD 15 TM-1 9,900.00 Mar 29 Purchaser CRV-007 FULL

4 KK-1 15 AM-1 7,800.00 Apr 25 Purchase CRV-008 FULL

5 MM-1 58 TM-1 9,900.00 Jun 12 Purchase CRRV-003 CREDIT

6 FC-1 60 AM-1 7,700.00 July 27 Purchase CRRV-004 CREDIT

Let: on payment box

Full means paid full amount or total amount at purchase date or purchase order convert to purchased/received inventor date
Partial means paid same amount from total purchase amount on purchase date or after purchase date
Credit means purchase on account or on credit not pay at purchase date

Set up Inventory Adjustment

1st step: Click task menu from menu bar

2nd step: Click Inventory adjustment
3rd step: After display inventory adjustment window on your desktop select inventory item to be adjusted, if out our inventory to
use – ve sign before amount, if In inventory to use + ve sign and write the reason on the box
4th step: Click save icon from menu bar of inventory adjustment window

ACTIVITY of Inventory Adjustment

Select Item Adjust quantity by Date Reference no Invoice

Id no.

AM-1 -5 Feb 25 GRN-0001 Damage

DM-1 7 Mar 29 GRN-0002 Additional by count

TM-1 -10 Apr 25 GRN-0003 Burn by fare

AM-1 15 Jun 12 GRN BRANCH -0004 Received from main

AM-1 -15 Jun 12 GRN MAIN -0004 Transfer to branch

TM-1 10 Jun 12 GNR-0005 Additional by count

AM-1 -3 July 27 GRN-0006 Expired

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Set up on cash or checking account payment

1st step: click tasks menu form menu bar
2nd step: click payment
3rd step: After display payment window record any transaction
Eg:- select vendor ID, from this window there are two tab 1) Apply to Invoice 2) Apply to Expense from both of tab select account
to be affect on your transaction to run then record on cash or checking account to be pay full or partial amount in figer
4th step: Click save or post icon from menu bar of payment window
Set up write checks
1st step: click tasks menu from menu bar
2nd step: Click writes check
3rd step: after display write checks window record any information on this window
Eg:- select vendor ID, write check number, select date, entry amount in figer and select account to be affect this write check
4th step: click save or post icon from this menu bar window

How to void write check

1st step: click tasks menu from menu bar
2nd step: click void checks
3rd step: After display these window selects the transaction to be void
4th step: click void icon from this window
How to Set Up Payroll Wizard

Step 1:- To complete payroll set up wizard

 Maintain menu  Default information


Payroll set up wizard

2 times click on Next

Specify or select such as:-
i. State e g:-
ii. Default GL Account as shown below:
 Gross pay e.g. Salary expense
 Tax liability e.g. Income tax payable
 Tax expense e.g. Payroll tax expense

Next …….. Finish

Step 2:- To maintain payroll tax formula

 File menu  Payroll tax table  User Maintained

Step 2:- To maintain payroll tax formula

 File menu  Payroll tax table  User Maintained

 From the coming window, delete the existing tax formula and enter the given below tax formulas

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a) For Income tax
- Tax Id = 001 N.B:  Consider these points:
- Tax name = Income tax 16 - Don’t forget to add the last two digit current
- Type = Deduction fiscal year on each tax name and
Formula - To give a single space on each tax name
Answer = -table (Adjusted-gross)
Existing and New employment income tax schedule

Existing personal income tax New personal income tax (amendment)

Schedule A Schedule A

Employment income Employment income

per month per month

Tax rate (%)

Tax rate (%)

Deductible

Deductible
Over Birr To Birr Over To Birr

amount

amount
Birr

0 150 0 Exempt 0 600 0 Exempt

151 650 10 15 601 1650 10 60

651 1400 15 47.50 1651 3200 15 142.50

1401 2350 20 117.50 3201 5250 20 302.50

2351 3550 25 235 5251 7800 25 565

3551 5000 30 412.50 7801 10900 30 955

Over 5000 35 662.50 Over 10900 35 1500

- Click on table Icon () and fill in the given below in it

Gross more Withhold Plus Gross more Withhol Plus

than than d

150 0 10 600 0 10

650 50 15 1650 105 15

1400 162.50 20 3200 337.50 20

2350 352.50 25 5250 747.50 25

3550 652.50 30 7800 1385 30

5000 1087.50 35 10900 2315 35

- Click on OK and then Save

b) For Pension contribution to employee e) For Total Deduction

- Tax Id = 002 Tax Id = 005
- Tax name = Pen EE 16 Tax name = Tot Deduc 16
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- Type = Deduction Type = Deduction
Formula Formula
Answer = -7 %*( Adjusted-gross)  Save Answer = (Adjusted-gross)  Save
c) For Pension contribution to employer f) For Gross salary
- Tax Id = 003 Tax Id = 006
- Tax name = Pen ER 16 Tax name = Gr Salary 16
- Type = Deduction Type = Addition
Formula Formula
Answer = -11 %*( Adjusted-gross)  Save Answer = (Adjusted-gross)  Save
d) For Bonus g) For Net pay
- Tax Id = 004 Tax Id = 007
- Tax name = Bonus 16 Tax name = Net pay 16
- Type =Addition Type = Addition
Formula Formula
Answer = 10 %*( Adjusted-gross)  Save Answer = (Adjusted-gross)  Save  Close

Step 3:- To maintain Employee Default Information

 Maintain menu  Default Information  Employee …

 From the coming window, do the following:

A. In the general tab
- Enable the customer field check box and enter the following field names: Position & Sex in the space provided
B. In the Pay level tab
- Leave the “Hourly pay level” column without doing nothing to it but in the “Salary pay level” column type the
field names such as Basic salary, Overtime, Allowance Transportation and Allowance Position

Field name GL Acc

B.salary 61500 (salary expense)

O.T 61500

All. T 61500

All. P 61500

C. In the EmployEE tab :

Fill in the given below information as it is.

Field name GL/Acc Calc Tax name Memo Adjust

B. salary  

O.T  

All. T  

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All. P  

Bonus 61500  Bonus  Use

(salary expense) B. salary Ok

Gr salary  Gr salary (Use look up  Use

list to select) B. salary
Bonus
O. T  Ok
All. T
All. P

Income tax 21300  Income tax (Use look up  Use

(Income tax liability) list to select) B. salary
Bonus  Ok
O. T
All. T

Pension 21400  Pen EE  Use

(Employee provident payable) B. salary  Ok

Total Deduc  Tot Deduc  Use

Income tax  Ok
Pen EE

Net pay  Net pay  Use

Tot Deduc  Ok
Gr salary

Signature  

D. In the EmployER tab

Field Liability Expense Calc Tax Adjust

name name

Pen ER 21500 61400  Pen ER Use

(Employer provident payable) (payroll tax expense) B. salary  Ok

- Click on Ok

Step 4:- To maintain Employee information

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- Maintain Menu  Employee/Sales representative …

- From the coming window, fill in such as

Emp Id. eg. 001
emp name e.g. Chala Lemessa
his basic salary Birr 9500.00, position allowance birr 4000.00, transportation allowance birr 2000.00
a. In the General tab
- Fill in the address & other related information
b. In the Custom field
- Fill in the Custom field as follows:
Position GgG. G. Mgr
Sex
GgG. Male

c. In the Pay Info tab

- Do the following
i. Select the pay method to salary & frequency to monthly
ii. Enter the amount of Basic salary, Overtime, All. T & All. P in the salary rate box

d. In the EmployEE tab

- Remove the check marks from “std” column from the field names such as; B. salary, Overtime, All. T & All. P
- Enter again the amount of; B. salary, Overtime, All. T & All. P in the Amount Box
- Click on Save and repeat the above all steps until you finish

Step 5:- To Pay each Employee

- Click on Task menu  Payroll Entry  Ok

- From the coming window, fill or specify such as:

Emp Id
Check  Date
Pay period end and the appropriate cash account
- Click on Save  Repeat the above step

Step 6:- To Modify and to preview payroll register

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- Click on Report menu  Payroll and double click on Payroll Register (From report list)  Click on Option button 
Field tab  Show None and click on the show check box only for the field names as shows below.

Show Fields Column

Break

 Emp Id 

 Employee Name 

 Transaction Date

 B. salary

 Bonus

 Overtime

Don’t touch the rest check box

 All. T

 All. P

 Gr salary

 Income tax

 Pen EE

 Tot Deduction

 Net pay

 Signature

- Click on Ok  Save  Give a name the space provided  Save  Close

-
To Reconcile Bank Account
 Click on Task Menu  Account reconciliation
 From the coming window, do the following:
 select the appropriate cash account from account reconcile look up list e.g. Cash in Bank
 Specify the appropriate Date
 Enter the amount which you get from the Bank statement in the “statement Ending Balance”
 Clear the Outstanding check and outstanding deposits according to the Bank statement by clicking on Check box ()
 Click on Ok
CHANGE ACCOUNTING PERIOD

Accounting period define segments of your fiscal year. Peachtree permits you to operate within two open fiscal

years. 1st, it informs you of your company’s current fiscal year and payroll tax year setup.

2nd , this window permits you to move to an alternate account period.

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To open the Change Account Period window

1st step: From the Tasks menu, select System, then Change Accounting Period or click the Accounting period button on the Peachtree main
application toolbar.

2nd step: Select the period from the drop-down list box

3rd step: Select “OK” to begin changing accounting periods.

Peachtree determines that you have checks or invoices that need printing (checks or invoices that are dated in the current accounting period
exist without a reference number), you will be prompted to print them before changing the existing the accounting period.

You are also, prompted to print reports prior to changing an accounting period, which is recommended.

After posting is complete, Peachtree checks for unposted transactions, and then adjusts the accounting period date on the main application
toolbar.

 Open Fiscal Years: are in to two open fiscal years. The first fiscal year is typically referred to as the Current year; the second is
referred to as the next fiscal year.
 Open Payroll Tax Years: identifies the two open payroll (calendar) tax years used in payroll transaction and reports.
Both Open Fiscal Years and Payroll Tax years are to change the dates; you must close a fiscal year using the Year-end wizard.

If you are using the batch posting method, you must post all your transactions before Peachtree will be you continue.

Closing Fiscal Year

It is recommended that to close the fiscal when you get reach the accounting period is 13

Step to Close Fiscal Year

 Tasks menu  System  Year End – Wizard  Select Fiscal and Payroll tax year (From Year to Close)  Next  Remove all
Check marks from print check box  Next  Back Up (Save it somewhere you like)  Next  select “Next Fiscal Year” from
Display  2 times click Next  Begin Close  Finish

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