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