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.