How To Default Vendors Account in Peach tree Accounting Software

How To Default Vendors

We can maintain the default settings of a Vendor Account in Peach tree software by clicking on the Maintain Menu the following screen will be appeared after clicking on the Maintain menu which is on the top screen of the Peachtree software.

After that we then move on wards to the Default Information option and click on it the following options which are given in the below screen will be shown in front of Default Information.

               

By selecting the Vendors option the following screen will be appeared in the Peachtree Software.

Vendor Default option shows four main options which includes Payment Terms, Account Aging, Custom Fields and 1099 Settings.

In Payment Terms first we have to select the Standard Terms. Terms describe how long the vendor gives us to hold a bill before we need to pay it and how we want Peachtree to respond if Vendors offer us a discount for paying early. We choose from these 5 standard terms the best that describes the terms most of our vendors offer to us.

These five terms includes

1) Cash on Delivery (C.O.D.): Paid when goods are being delivered 

2) Prepaid

3) Due in number of Days

4) Due on day of next month

5) Due at end of month

We select the Standard Terms according to our Vendors. We then Sets Default Terms for purchases, or Default for Credit Limit As we select an option button on the left, the boxes on the right side change . For example, if we choose C.O.D, or Prepaid, only the Credit Limit box on the right remains available, because none of the other boxes apply. 2/10 n/30 is the standard term which Is used when we gives or have been given a discount, if we pay the amount with in 10 days we can get 2 percent discount otherwise we have to pay the full amount in 30 days. We can change the Term according to our requirement.

We then select the Purchase Account, in Purchase Account tab we mainly use Inventory Account so we by clicking o the magnifying glass choose the Account from the list, as shown in the below screen

We do the same for the Discount General edger Sales Account as we are receiving the discount so the discount is our income so we record Discount Received in front of Discount GL Account. If we don not create an account of Discount in the Maintain Chart of Accounts Menu we can make an Account by clicking on the New button which is shown when we open a magnifying glass we then save the discount and by closing the Maintain charts screen we will be back in the below screen and then we select the Discount Received option.

After filling all the information the word used in front of Purchase Account and Discount GL Account that is Undefined Account is removed and is changed with the new Accounts as shown below

After selecting the payment terms we then move onwards to our next step which is Account Aging. Accounts receivable aging works the same as accounts payable aging — that is, you can choose to age by due date or by invoice date. Suppose that you post an invoice as of February 20, 2007, with terms of 2% 10, Net 30 Days. If you set up accounts receivable aging to age by due date, the invoice is due 30 days from the invoice date of February 20, which is March 22. On the Accounts Receivable Aging report, the invoice appears to be somewhere between 0 and 30 days old — that is, on March 31, 2007, the invoice is somewhere between 0 and 30 days past the due date of the invoice. Alternatively, if you set up accounts receivable aging to age by invoice date, the same invoice appears on the Accounts Receivable Aging report to be somewhere between 31 and 60 days old. That is, on March 31, 2007, the invoice is somewhere between 31 and 60 days past the invoice date of the invoice. This report is not showing you what is past due; it is showing you the age of invoices based on the number of days past either the due date or the invoice date. Many people choose to age customer invoices by invoice date because the aging report then reflects how old the invoice is. Others prefer to age invoices by due date so that they can see how many days the invoice is overdue.

After completing the Account Aging we then move towards the Custom Fields as shown in the below screen;

We in this Custom Fields option select the most important information about Vendors e.g. Custom fields are a great way to store information about the vendors that doesn’t fit elsewhere in Peachtree, such as details specific to your business or industry. For example, many businesses track a workers compensation certificate number for subcontractors to justify not covering the subcontractor on the company’s workers compensation insurance. On the Custom Fields tab of the Vendor Defaults dialog box, you can create up to five fields for each vendor. Check a box and, in the Field Labels boxes, type identifying labels for the information you want to store. After completing the step of Custom Fields we then move on to the Last step which is 1099 settings. The screen shown in the 1099 Settings is given below.

As this is not used in Pakistan so we do not use this step, So that is how we at the end by clicking on the Ok button can get the default settings which we want to save in default Vendors