How to enter Credit Memo in Peachtree Software

Credit Memo

We use Credit Memo because sometimes we want to return the products, or we need to make an adjustment to a customer invoice. In these situations, we need to create a credit memo to reduce the amount of money our customer owes. If we owe money to a customer for overpayment or because we applied a credit memo to an invoice, we can write a check to the customer for the refund amount we owe. We can create a credit memo that refers to an unpaid original invoice, or we can create an open credit. Additionally, we can create credit memos for inventoried items or other goods or services. The following steps show how to use the Peachtree Credit Memo:

We first open an existing company which we have made and the following screen will be appeared in the Peach tree software after opening an existing company.

We use Credit Memo in Peach tree software by clicking on the Tasks Menu, the following screen will be appeared after clicking on the Tasks menu, the task menu is on the top screen of the Peachtree software as shown below

We after clicking on the Task menu choose the Credit Memo which is the 6th number option in the Tasks Menu and by clicking the Credit Memo the following screen will appear in our screen.

After the Credit Memo screen open we then enter or select the customer ID. After we select a customer, Peachtree fills in the customer name and address. In the lower-left corner of the window, we can see the customer’s current balance as of the system date. We can click the arrow button next to the balance to display a Customer Ledger report of the invoices and receipts that make up the balance. The customer ID is being selected from the drop down list as shown in the following screen

After entering the Customer ID we then select a date as shown below

  

After entering the Date we then select the Credit No, For the Credit No., we use the original invoice number preceded or followed by CM to indicate credit memo. This numbering scheme helps us to tie the credit memo to a particular sale. We then enter the Return Authorization Tab and the Customer Purchase Order tab. There is a tab of Sales Representative tab and then the discount tab is also there and we can amend the discount tab according to our requirement the following screen shows the four tabs and these tabs are not compulsory to fill out.

There are two tabs after the Return Authorization tab one is Apply to Invoice No. and the other is Apply to Sales tab. As we choose the ID the tap changed from Apply to Sales to Apply to Invoice No. tab. If the credit memo is for an unpaid customer invoice, click the arrow to open the drop-down list on the Apply to Invoice No. tab. Then select the invoice number to which we want to apply the credit memo. We select the Invoice No. of a Customer by clicking on the drop down list arrow and the following screen will be appeared in our peach tree software

Peachtree fills in the lines that appear on the original invoice. If we’re creating a credit memo for which there’s no existing invoice, click the Apply to Sales tab and enter the information for the items to be credited, including quantity, item, price, and (if applicable) job. In the Returned field on each line of the Apply to Invoice No. tab, type the quantity the customer returned. Enter the returned quantity as a positive number. Peachtree understands that this is a return. To quickly fill in the original transaction quantities, click the Return button and then select All. If the customer is returning inventory items, Peachtree automatically restores the item quantities to inventory. If the inventory items are damaged, the customer is probably not returning them. Go ahead and record the credit memo, but don’t enter any item IDs. This gives the customer a credit for the damaged goods, but does not bring them back into your inventory. If a line item was originally assigned to a job, Peachtree also assigns the credit to the same job. If the customer is returning serialized inventory items, click the Serial Number button, as shown here in the margin, and then select the serial numbers being returned. If you charge the customer a restocking fee, click the Apply to Sales tab and enter it as a negative dollar amount. In the Apply to Invoice No. tab the returned item is taken as 5 and the following screen will be appeared in the screen in which the Total amount has been already calculated by the software.

Click the Save button to save the transaction, or click the Print button to print and save the credit memo.

How to enter Vendor Credit Memo in Peachtree Software

Vendor Credit Memo

We use the Vendor Credit Memo window to enter credit memos for returns to and credits from a vendor. We can enter a credit memo as an open credit, or we can apply it to an existing invoice. Suppose that we have a purchase transaction that we no longer need. Should we just erase it? If we want to practice good accounting, the answer is a definite no. Deleting purchases removes the audit trail that thing accountants mean when they talk about the list of transactions we enter because our business does business. When accountants can trace transactions from beginning to end, they’re really happy campers. We need to understand that Peachtree allows us to delete any unpaid purchase, even though our accountant won’t like it. Display the purchase in the Purchases/Receive Inventory window and then click the Delete button. However, Peachtree won’t allow us to delete a purchase if we’ve applied any transactions to it. Suppose, for example, that we accidentally paid a purchase that we later determined we should not have paid. If we try to delete the purchase, the Delete button in the Purchase window is unavailable. In this case, we need to void the check we wrote that paid the purchase, and then we need to enter a vendor credit memo in Peachtree to cancel the effects of the purchase. After we void the check, follow the steps in this section to finish canceling the purchase. Besides fixing errors in purchases, don’t forget about the times when a vendor issues a credit memo to us for merchandise we return. To reduce the balance we owe the vendor, we need to enter the vendor credit memo into Peachtree and match it to the original purchase. Although we can enter a vendor credit memo without having previously entered a purchase, typically we enter vendor credit memos for existing purchases. In the following steps, we assume that we’re returning any merchandise for which we receive a credit.

We first open an existing company which we have made and the following screen will be appeared in the Peach tree software after opening an existing company.

We use Credit Memo in Peach tree software by clicking on the Tasks Menu, the following screen will be appeared after clicking on the Tasks menu, and the task menu is on the top screen of the Peachtree software as shown below

We after clicking on the Task menu choose the Vendor Credit Memo which is the 12th number option in the Tasks Menu and by clicking the Vendor Credit Memo the following screen will appear in our screen.

After opening the window of Vendor Credit Memo we then enter the vendor ID in the Vendor ID field. We can use the lookup list button to select the vendor from our list of vendors. The tap of Vendor ID is given below after opening the lookup list.

After we select a vendor, we enter a date in the Date field as shown below

After entering the Data we then enter a credit number in the Credit No. field the Credit No. tab is shown in the following picture.

After entering the date we then enter the Return Authorization Tab and the A/P Account tab . A/P Account tab has been set with the account type of A/P if we want to change it then we can change the account according to our desire the. There is a discount tab also there and we can amend the discount tab according to our requirement the following screen shows the three tabs and these three tabs are not compulsory to fill out but A/P Account is important.

There are two tabs after the A/P Account one is Apply to Invoice No. and the other is Apply to Purchases tab. As we choose the ID the tap changed from Apply to Purchases to Apply to Invoice No. tab. On the Apply to Invoice No. tab, click the Apply to Invoice No. drop down list and select the invoice number of the purchase for which we’re recording a credit memo as shown below

Peach tree fills in the lines that appear on the purchase. On each line of the Apply to Invoice No. tab, in the Returned field, we type the quantity which we want to return. For example in this we take 5 quantities returned. If we plan to return everything, we can click the drop-down list arrow on the Return button, and select all to have Peachtree fill in all the amounts for us. If we are using Automatic Decimal Entry, remember that we have to put the decimal-zero after the whole number, or Peachtree adds the leading decimal: To get nine, type 9.0. Peachtree fills in the amount (unit price times quantity). The filled information about this tab is given below

If we’re returning a serialized item, click the Serial No. button to display the Serial Number Selection dialog box and identify the serial numbers of the items we are returning. Select the check box next to the numbers we’re returning and then click OK. At the end we then click the Save button to save the transaction.

How to record Payments in Peachtree

How to enter Payments in the Peachtree

We use the Payments window when we need to write one or two checks. From the Payments window, we can pay vendors that we set up, or we can write a check to someone we have not set up in Peachtree. We also can use this window to issue an employee loan or (heaven forbid) write a refund check to a customer. Invoices and bills for individual vendors can be selected and paid using Payments option. To record payments, select Payments from the Tasks menu. The Payments window can be used to enter cash purchases and disbursements that do not have associated vendor invoices/bills. It is also used to apply payments to vendor invoices entered as purchases. When a vendor ID is entered, all unpaid bills for the vendor appear. We can choose to pay an entire invoice/bill or make partial payments. Typically, we would enter purchase invoices throughout the month so that we would have a record of what we owed. Then, at some later date, we pay the invoices. We are going to enter a payment for this purchase invoice. We also have the option of writing a disbursement check to a vendor or a customer. Usually payments are made to vendors. However, we might write a check to a customer when issuing a refund.

To enter the Payments we first open an existing company, after opening an existing company the following window will appear in the peach tree software

We then click on the Tasks menu and the following tab will be appear in the peach tree software

We then select Payments from the Tasks menu which is in the 10th option in the Tasks Menu. After clicking on the Payments option the following screen will be appeared sometimes in the peach tree software

  

We choose the Cash Account use in the Payments and then by clicking okay the following screen will be appeared in our peach tree software

The Payments section is divided in the following sections and is given below with name and detail:

We first select to enter a payment for a vendor or customer. We select Vendor ID or Customer ID from the first tab which is shown as following

Then, enter the ID for the vendor or customer being paid. To pay a vendor who is not in the vendor list, leave this field blank and enter the name in the Pay to the Order of field. Choose Customer ID to issue a refund check to a customer.

We after choosing customer or vendor we then Enter the information in the Pay of the Order of Tab as shown below.

If we plan to print the check, leave this field blank. We will enter it during the print routine. If this check was manually written, enter the check number as shown below.

After entering the Check Number we then enter Date from the Calendar which is shown when we click on the Calendar button the following screen shows the view of the date setting.

After that we then enter Memo. By default, the account number entered in the Maintain Vendors window will fill automatically for vendors set up in Peachtree. If necessary, we can enter a different memo line for the check.

We then enter the account from which funds are withdrawn when the check is written. This account number will be the last cash account used for a payment, but can be changed if necessary. The account is shown below.

And when we click on the magnifying button the following screen will be appeared

After the Cash Account tab the we record the cash account balance tab. Cash Account Balance displays the balance of the selected account as of the date of the check. This amount is updated when checks are posted. If we see the word “Uncalculated” in the balance field, click the recalc button to the right to display the balance amount as shown below

We after entering all the information in other tabs then enter the Apply to expenses and Apply to invoices tab in Vendor and we use Apply to Customer Account and Apply to invoices tab for the Customer. The details of each are given below.

APPLY TO EXPENSES TAB

When we select a vendor without any outstanding invoices/bills, the Apply to Expenses tab appears as shown below

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The Apply to Expenses tab is used to enter prepayments and cash purchases. Fields of interest. In the prepayment we select this check box to enter an advance payment/deposit. A prepayment can be printed as a check or assigned a reference number. After a prepayment has been saved, it can be applied to one or more of the vendor’s outstanding invoices on the Apply to Invoices tab. In the description we enter the description for the item selected. We can change the description, or enter a description when receiving items not tracked through inventory the example of description is given in the following screen

In the GL Account we can displays the account set up for the item selected. When we are ordering items not tracked through inventory, the account will be the vendor’s purchase account. If necessary, enter a different account. We can change the different ID by clicking the magnifying glass which is in front of the GL Account option by clicking it all the accounts will appeared as a dropdown list as shown in the following screen

In the unit Price we enter the last purchase cost for the item selected. New items that have not been ordered before and do not have beginning balances use the cost assigned to them in the Last Unit Cost field on the Maintain Inventory Items window. If necessary, this price can be changed to a different amount. But in the case we are entering payments for the Unpaid Salaries we do not use the Unit price and enter total amount in this case this is shown in the below mentioned screen

APPLY TO INVOICES TAB

The Apply to Invoices tab lists all outstanding invoices for the selected vendor. Select invoices/bills to pay by selecting the Pay check box next to each one. It includes the main terms like Invoice, Date Due, Amount Due these all tabs are already field but other than that there are the Description, Discount, Amount Paid and Pay tabs. The Apply to Invoices tab is shown below

In the Description tab we enter a description for each invoice in this field. In the discount tab we display the amount of the discount if the invoice qualifies for a discount. If necessary, the amount in this field can be changed. A discount amount cannot be entered for a partially paid invoice. In the amount Paid we enter the amount to apply to the invoice. When we enter an amount, the Pay check box will be checked automatically. If we select the Pay box it shows that we pay the invoice in full. After entering all the data we then save the data by clicking on the save button and that is how we can enter a Payments in peach tree.

How To Enter Purchases/Receives Inventory in Peach tree Software

                  How to Enter Purchases/Receives Inventory

A vendor with whom we do business on a regular basis sends us a bill. (Peachtree uses the terms purchase and invoice interchangeably to represent a vendor bill.) We don’t want to pay the bill immediately, but we do want to pay the bill in a timely manner. So, enter the bill into Peachtree as a purchase, and Peachtree tracks the bill’s age so that we pay it when it’s still eligible for a discount and before the vendor charges a late fee.

Unlike purchase orders, purchases update company’s accounts. Whenever any transaction updates company’s books, at least two accounts are affected because of the double-entry bookkeeping concept. Every purchase we enter automatically updates Accounts Payable. The other account Peachtree updates depends on whether we record a bill for an inventory item. If we select inventory items in the Purchases/Receive Inventory window, we tell Peachtree to update inventory for the other side of the transaction. If we don’t select an inventory item, then we probably select an expense account, such as telephone expense account. In that case, Peachtree updates Accounts Payable and the expense account.

Peachtree assumes that we wouldn’t face difficulty to enter a bill from a vendor we use only occasionally; instead, we’d just pay that bill. Therefore, we can’t enter purchases in Peachtree unless we have set up a vendor. For one-time or occasional purchases from vendors we don’t expect to use often, use the Payments window to pay the bill directly. To enter a purchase (a vendor’s bill) that doesn’t reference a purchase order we use the Apply to Purchase Tab. Where as if we ordered merchandise using a purchase order, and the merchandise arrives. Maybe the bill comes with the merchandise, and maybe it doesn’t. Either way, we need to update our company’s accounts to reflect the receipt of the merchandise so that we know they’re available to sell.  We use the Purchases/Receive Inventory window to receive goods against a purchase order and hence use the Apply to Purchase Order Tab.

In order to record the Purchases/Receive Inventory of a company open the company information in Peachtree software, as the company is opened the following screen appears in the software

We then click on the Tasks button which is in the above Bar of the software and click on the Task bar menu the following dropdown list will appear after doing so

From the Tasks menu we click on the 8th option of the drop down list and that is Purchases/Receive Inventory as shown in the below mentioned screen

By opening the Purchases/Receive Inventory window the following Sales invoice screen will be appeared in the Peachtree software

The top part of the Purchases/Receive Inventory window contains header Information such as customer name, address, invoice number, date and other information.

1) The first step in creating the Purchases/Receive Inventory is we Type or selects the Vendor ID. We are not able to enter the Purchases/Receive Inventory in peach tree unless we have maintained the Vendors. Peach Tree displays the Customer’s current balance and credit limit in the lower-left corner as shown in the following screen.

We then select the Vendor from our Vendors which will be shown by clicking on the Vendor ID magnifyingButton list or by pressing the plus (+) key while the insertion cursor is In the Vendor ID box or we can also open the Vendor ID drop down list by double-clicking inside the Vendor ID field so that all the Vendor will be appeared in the drop down as shown in the above screen. After we select a vendor, Peach tree fills in the vendor’s name and Remit To address. The company’s name also appears in the Ship To address box. We can see the vendor’s current balance as of the system date, and we can click the button next to the balance to display a Vendor Ledger report of the purchases and payment that comprise the balance. If we have previously entered purchase orders for this vendor, Peach tree displays the Apply to Purchase Order tab which is shown below

As shown in the above screen if we already record the Purchase Order and select that vendor then the screen will automatically transfer to Apply to Purchase Order No. Tab from Apply to Purchases Tab.

2) We after selecting the Vendor ID moves towards the next step which is for entering the Date. If necessary we can change the Date according to the requirement. We can select the date through the calendar as shown below

3) In the Invoice No. text box, type a number for the vendor’s bill. We can’t use an invoice number more than once for a particular vendor. We can reuse an invoice number as long as we assign it to a different vendor. If only the merchandise arrived but we have no bill from the vendor, select the Waiting on Bill check box. If we received both goods and a bill, leave the box deselected.

4) We then record the Customer Invoice Number.

5) We then select the Discount terms in which Discount rate we are allowing the vendors in which we gets discount. The peach tree allows us the standard discount of 2/10, n/30 we can change the discount rate according to our desire.

6) We then after filling the Customer Invoice Number then move on the Shipping Method and select the shipping method from the Ship Via list drop down box as shown in the following screen.

7) We can also change the A/P account, according to the requirement but we don’t change the account type

8)  After that there are main two tables available in the Purchases/Receive Inventory the first is Apply to Purchase Order and the second is Apply to Purchases. In the Purchases/Receive Inventory task, we apply purchase orders to purchases or enter direct purchases (invoices we receive from our vendor without a PO). We have just received a shipment from the Suppliers for the purchase order we previously entered.

From the Tasks menu, select Purchases/Receive Inventory. Notice the similarities with the Purchase Order window. The only major difference is the presence of the Apply to Purchase Order tab and Apply to Purchases tab.

• Apply to Purchase Order: When you select a vendor who has open purchase orders, this tab appears, allowing you to select which purchase order to receive items against.

• Apply to Purchases: If you select a vendor with no open purchase orders, this tab appears. You can enter a vendor invoice that did not originate on a purchase order. In addition, even if you have selected a purchase order and received items against it on the Apply to Purchase Order tab, you can also select the Apply to Purchases tab to enter purchases not included in any open purchase orders.

9) In the last step if we select the Apply to Purchase Order the following screen will be appeared

                  

From here we choose the Apply to Purchase Order number in which we select the item which we are going to receive or which we are receiving and enter it as shown below

After selecting the Apply to PO No. we then enter the units which we are receiving or which we received and the rate at which the units are given to us.

10) We have two options for entering items to Apply to Purchases that appear on the bill:

• If we are recording a bill for an item that we haven’t set up as an inventory item, skip the Item text box and just fill in the Description, a GL Account, and Unit Price boxes.

• If we are recording a bill for an inventory item, select the item in the Item list box. Peachtree fills in the Description, GL Account, the Unit Price, and the Amount (unit price time’s quantity) boxes.

By selecting Apply to Purchases the following screen will be appeared

We first enter the Quantity after that we then select the Inventory Item from the dropdown list and GL A/c, Unit Price, Amount and Job.

11) Click the Save button to save the transaction