How To Default the Settings of Inventory in Peach tree

Making Inventory Adjustments

Inventory stores information for various types of items, services, and activities that we buy and sell. Inventory defaults are used as the initial settings for new inventory items. Therefore, these settings should match the most common settings for our inventory items. We can set up both default and specific inventory information. Default information is good for all of the items we set up, but each item will need special treatment too. Inventory Default Information the Inventory Defaults window lets us tell Peachtree if we want to allow duplicate values for a couple of fields, how we want to be warned regarding low stock situations, what default account numbers will be used for different types of inventory items, what default costing method Peachtree will use for items, what shipping methods we use and how we tax items, and what price levels and pricing structures we want to use. Finally, if there are special terms we use to identify our items, we can set them up as custom fields. When inventory items are set up, we can overwrite the default settings if necessary. Shipping methods used in Accounts Receivable and Accounts Payable transactions, as well as the freight account used for customer invoices, are also entered as part of inventory defaults.

To maintain Inventory Defaults we first open an existing company on Peachtree software, after opening an existing company the following screen is shown in our peach tree software

After opening an existing company we then click on the Maintain menu bar which is on the above screen of the peach tree and after clicking on the Maintain menu the dropdown list will be opened. We click on the Default Information Tab as shown below

After moving the cursor in the Default Information options another dropdown list appears from which we click on the Inventory Items option so that the following Inventory Default screen will be appeared in the peach tree software screen

  

The Inventory Item Defaults window is used to enter basic information that applies to most of your inventory items. As we can see there are main five options in which we can enter the Inventory Item Default information. These options include:

·        General Tab

·        GL Accounts/Costing Tab

·        Taxes/Shipping Tab

·        Custom Fields Tab

·        Price Levels Tab

Each tab is described below:

GENERAL TAB

When we select the Inventory Item Defaults window, the General tab appears as shown below.

·        UPC/SKU

On this window, we can specify to allow duplicate numbers for UPC/SKU and Part Numbers.

·        Quantity Available

Include purchase orders when calculating the quantity available: Select this check box to include items on purchase orders when calculating quantity available.

·        SALES INVOICE/RECEIPT OUT OF STOCK WARNING MESSAGE

Choose one of the three options regarding a notice about items that are out of stock when we select them in Sales Invoicing or Receipts.

·        SALES ORDER/PROPOSAL OUT OF STOCK WARNING MESSAGE

Choose one of the three options regarding a notice about items that are out of stock when we select them in Sales Order and Proposal entry.

GL ACCOUNTS/COSTING TAB

On the GL Accts/Costing tab we specify several GL accounts for various types of inventory items. The default freight account is also selected on this window. We can change information for individual items when they are added through Maintain Inventory Items.

  

Each field on this tab is described below:

• Item Class: Each inventory item is assigned to an item class that defines the way the inventory item is used in Peachtree. Quantity on hand and cost are tracked for stock and assembly items only. There are a variety of item classes available to encompass the needs of many different kinds of businesses. Each item class is described below:

Ø  Stock item: The traditional inventory item that is bought and sold. Quantities, costs, vendors, minimum stock levels, and other values are tracked for stock items.

Ø  Master Stock item: A special item that does not represent inventory we stock but rather contains information shared with a number of sub stock items generated from it. Once we generate a master item and specify its primary and secondary attributes, Peachtree will create the sub stock items automatically.

Ø  Serialized Stock Item: An item that must have a serial number associated with it and the serial number must be specified whenever the item is purchased, sold, or adjusted into or out of inventory. Costing for this type of item is specific to the individual item.

Ø  Non-stock item: This is an item that is not normally stocked. Quantities, descriptions, and unit prices are printed on invoices, but quantities on hand are not tracked.

Ø  Description only: This item class is used when we want to print text on the invoice. For example, a warranty disclaimer could be entered with this item class; and when an invoice is created, we would enter the warranty Item ID to print it on the invoice.

Ø  Service: This item class is used to simplify entry of services paid for by our company or sold to a customer.

Ø  Labor: This item class is used to simplify entry of labor paid for by our company or sold to a customer. This class can also be used to track labor cost associated with assemblies.

Ø  Assembly: This item class consists of two or more inventory items that are grouped together and sold as one unit. The components of the assembly are entered on the Bill of Materials tab. Quantities, costs, and other values are tracked for assembly items.

Ø  Serialized Assembly: Items assigned this item class are assembly items in that they are built from other inventory items, but they are also assigned a serial number at the time of assembly, and this number must be specified when the item is sold.

Ø  Activity Item: Items assigned this item class are used on employee or vendor time tickets when recording time spent performing services for a customer, for a job, or for internal administrative work. Use activity items when we plan to bill customers for reimbursable payroll expenses in sales/invoicing.

Ø  Charge Item: This item class is used for expenses recorded by an employee or vendor on expense tickets when expenses are incurred for a customer or job. Charge Items are also used to record administrative tasks within the company and employee out-of-pocket reimbursable expenses. Use charge items when we plan to bill customers for reimbursable expenses recorded on expense tickets in Sales/Invoicing. For each Item Class, select the most common General Ledger accounts to be used in the sale and purchase of inventory items. Some fields are dimmed and inaccessible for certain item classes. For example, we cannot enter General Ledger accounts for Description only items because no accounting is tracked for this item class.

• GL Sales/Inc: Enter the income account to be credited for the sales price amount when the item is sold.

• GL Invtry/Wage: Enter the inventory account to be debited for the purchase cost when we purchase stock items or build assembly items. This account will be credited for the compound cost when the item is sold. For non-stock, service and labor items, enter the salary or wage expense account or other expense account to be debited when the item is purchased. This account will be credited for the expenses when the item is sold. The sale of non-stock, service, and labor items will then reclassify the expense associated with the item from the original GL Salary/Wage or other expense account to the GL Cost of Sales account.

• GL Cost Sales: Enter the cost of goods sold account that will be debited for the cost when the item is sold.

• Costing: Enter the costing method for stock and assembly items. Peachtree tracks the cost of goods sold based on the costing method chosen for stock and assembly items only.

GL FREIGHT ACCOUNT:

Enter the account to which customer freight charges will be posted. We can select Freight Account usually for this GL Freight Account. When we click on this GL Freight tab the magnifying glass will appears, we click on the magnifier glass button and select the GL Freight account as shown in the following screen

  

TAXES/SHIPPING TAB

We use this tab to create up to ten ship methods that can be specified on customer and vendor records, as well as on most customer and vendor transactions. Also, we can create up to 25 different tax categories for items. We use these tax types for classifying items for sales taxes. We enter the descriptions, and indicate whether or not they are taxable. When we create an item, we will specify which tax type the item will receive. Then, when we sell that item, Peachtree will use this information to determine the sales tax on the quote, order, or invoice. We can also filter certain reports by tax type. We also type the Ship Methods here. We can then assign a ship method to each customer and vendor. That information will be transferred automatically to sale or purchase transactions associated with the customer or vendor. In the Ship Methods list, we enter the different shipping methods that we will select from when we enter transactions for our customers and vendors.

CUSTOM FIELDS TAB

Peach tree allows us to customize up to five additional fields for maintaining information about our inventory items. As with customers and vendors, we can create up to five labels for custom fields, additional information on our items that is specific to our business. We create the field labels here, and then enter specific information for each item on the Custom Fields tab of the Maintain Inventory Items window.

PRICE LEVELS TAB

On the Price Levels tab we may set up price levels according to our needs. Price levels provide a way for us to charge different prices to different customers. For instance, we can assign a price level to each customer to ensure accurate pricing. There are ten price levels that can be set up with any description we need. For Price level 1, we can choose to have the program calculate the price based on the last cost recorded. In addition, for Price Levels 2 through 10, we can base the calculation on Price Level 1.

Level Name: Enter a description of up to 14 characters that describes the pricing; for example, Distributor, Warehouse, and Retail.

Default Calculation: The text shown in this box is the result of what has been chosen in the Edit option.

Edit: Click the Edit button to open the Default Price Level Calculation window. Here, you can set up the options for calculating sales prices. This calculation will be applied by default to all inventory items, but can be customized or overwritten by a non-calculated price, if necessary, for individual items. The following screen will appeared when we click on the Edit button which is in front of any Price Level

Select the base price for the calculation. For Price Level 1, we can select Last Cost only. For other price levels, we can also select Price Level 1 as the basis. We select it according to the settings we want to adjust for the price. If we want to have Peachtree automatically round the price, select the basis for rounding and enter a value, if necessary. As shown above in the Default Price Level Calculations screen

  

1) Use: The options found in this field will differ based on which Price Level

     i.        Price Level 1: It is not available when calculating Price Level 1, this option can be chosen for Price Level 2 through Price Level 10. We can use it when we want to base the calculation on the price used for Price Level 1.

   ii.        Last Cost: We can use this for any level, choose this option to base the calculation on the last cost for the item.

  iii.        No Calculation: We can select this option if we prefer to enter a specific price rather than use a calculation. When we chose this option, the next three fields become unavailable for use.

2) And: Select to increase or decrease the amount by either a percent or an amount. Then, indicate the amount or percent in the following field.

3) Round Price: We have three options for rounding the sales price.

     i.        No Rounding: If we choose this option, the prices will be set exactly as calculated.

   ii.        Specific Cent: Choose this option to indicate the exact cent we want the price to round up to. Another field appears that allows us to enter the cent amount.

  iii.        Next Dollar: Select this option and the program will round the price up to the next dollar.

When we set up our customer records in Maintain Customers, we can specify the price level that each customer will receive. Hence, the price level feature allows us to create multiple levels for handling customers who may buy large quantities of items in contrast to those who buy fewer items. If we base the item prices on Last Cost, Peachtree will not update the price of an item automatically if the Last Cost should change. We must either use the Multiple Price Levels window in Maintain Inventory or click Recalc, or we must use the Maintain Prices routine. For instance, if the Last Cost of an item was $10 and our sales price is calculated as Last Cost*1.5, the sales price will be $15. If we purchase the item at $20, making the Last Cost $20, our sales price will remain $15 until we click Recalc in the Multiple Price Levels window in Maintain Inventory or until we use Maintain Prices to update the prices of items. We select how we want to adjust the price and what to adjust it by. If we want to have Peachtree automatically round the price, select the basis for rounding and enter a value, if necessary.

After saving all the information about inventory default the final step is to save it we when done with the Inventory Default click on the OK button hence the default Inventory information will be saved in our peachtree accounting software.