PEACHTREE COMPLETE 2009 WORKSHOP 5: PART A...

PEACHTREE COMPLETE 2009

WORKSHOP 5: PART A – MARS COMPANY

Recording Transactions in the Sales, Receipts, Purchases, and Payments Journals

This workshop adds to Peachtree skills learned in Workshops 1 through 4, so complete those workshops before beginning this one.

In this workshop you learn to use the Customer and Vendor modules of Peachtree. You will first learn to record customer sales and cash receipt transactions before moving on to vendor bill and payment transactions. You will also learn to print aged receivables and aged payables reports.

You will need to download the Mars Company data file for Peachtree 2009 from the MyAccountingLab website before beginning this workshop. Refer to the Installing Peachtree Complete Accounting and Student Data Files document for instructions on downloading this file.

We next provide information on using the Customer and Vendor modules of Peachtree.

The Customer module is used to manage customer accounts and to record sales invoice, sales return, and cash receipt transactions. The Customer & Sales Center for this module is activated by clicking this

button on the navigation bar. This center contains icons that access customer transactions windows. Use this center whenever you are asked to complete a customer task.

Customer Module

You will be recording customer sales invoices, sales returns, and cash receipts in this workshop. Sales invoices are posted through the Sales/Invoicing window; sales returns through the Credit Memos window; and cash receipts through the Receipts window. We will show you how to open these windows later.

The customer module of Peachtree handles all the tedious posting steps involving accounts receivables. This means that posting transactions in the Sales/Invoicing and Credit Memos windows automatically posts transactions to the sales journal and accounts receivable subsidiary

Peachtree Complete 2009 Workshop 5: Part A – Mars Company

ledger. Posting transactions in the Receipts window automatically posts transactions to the cash receipts journal and accounts receivable subsidiary ledger. Finally, posting transactions in either window automatically integrates those transactions with general ledger accounts managed by the general ledger module.

Because the software automatically updates a customer’s accounts receivable subsidiary ledger, you can easily print an Aged Receivables report (i.e., a computerized version of the schedule of accounts receivable). We will show you how to do this later.

Computerized Aged Receivable Report

Mars Company’s Aged Receivables report at February 29, 2008 appears next. The company offers all its customers the payment terms of 2/10, n/30.

The Vendor module is used to manage vendor accounts and to record vendor bill, return, and payment transactions. The center is activated by

clicking this button on the navigation bar. This center contains icons for opening transactions windows that form the

Vendor Module


vendor module of the software. Use this center whenever you are asked to complete a vendor task.

You will record vendor bills, returns, and payments in this workshop. Vendor bills are posted through the Purchases/Receive Inventory window; vendor returns through the Vendor Credit Memos window; and payments through the Payments window. We will show you how to open these windows later.

Like the customer module, the vendor module handles all the tedious posting steps involving accounts payable transactions. This means that posting transactions in the Purchases/Receive Inventory and Vendor Credit Memos windows automatically posts transactions to the purchases journal and accounts payable subsidiary ledger. Posting transactions in the Payments window automatically posts transactions to the cash disbursements journal and accounts payable subsidiary ledger. Finally, posting transactions in either window automatically integrates those transactions with general ledger accounts managed by the general ledger module.

Because the software automatically updates a vendor’s accounts receivable subsidiary ledger, you can easily print an Aged Payables report (i.e., a computerized version of the schedule of accounts payable). We will show you how to do this later.

Computerized Aged Payables Report

Mars Company’s Aged Payables report at February 29, 2008 appears next.


You are now ready to begin the tasks of this workshop.

1. Open Peachtree Complete and then open the company named Mars Company.

Open the Company Data File

2. Click Maintain on the main menu and choose Company Information. Add your name or initials to the end of the company name and click OK to save your changes.

Add Your Name to the Company Name

3. On March 1, 2008, Mars sold merchandise to Kevin Tucker on account. This sale was on invoice number 913 and totaled $800 for the following items. The payment terms are 2/10, n/30.

Stock # Description Quantity

001 Space Age Lamp 2

002 Solar Clock 5

005 Space Shuttle Model 1

Recording Customer Sales on Account


4. You will now record this invoice. Activate the Customers & Sales center.

5. Click the Sales Invoices icon and select New Sales Invoice to open the Sales/Invoicing window. Click the lookup icon on Customer ID and then click to select Kevin Tucker as illustrated next.

6. TAB to the Date field, which should already read Mar 1, 2008. If not, then type in this date.

7. Tab to the Invoice No. field and type in "913".

8. Either place your cursor into the Quantity field or tab to this field. Type in "2.00".

9. TAB to the Item field and click the lookup to select item 001 Space Age Lamp.

10. You are now in the Description field, which defaults from information on the item stored in the Inventory module.


Furthermore, you can see that this item sells for $50.00 each and the sale will credit GL Account 4110 for $100.00.

11. TAB to Quantity on the next row and enter the next item listed in the previous table. TAB to the third row and enter the last item.

12. The completed invoice is illustrated next.

Reviewing the Sales Journal 13. Before posting this transaction, you may wish to view general

ledger accounts to be affected when posting. Click the Journal icon on the window’s toolbar to open the window illustrated next.


14. The Accounting Behind the Screens window shows that the first item on the invoice will post a credit of $100.00 to general ledger account 4110 Sales. When you scroll to the bottom of the window you will see that the entire invoice will post a debit of $800.00 to general ledger account 1120 Accounts Receivable.

You also see that the transaction will post an entry to be calculated to accounts 5050 Cost of Goods Sold and 1130 Inventory. This is because Peachtree uses a perpetual inventory system and will look to the Inventory module when posting this transaction to determine the cost of the inventory sold. This amount will then be debited to costs of goods sold and credited to inventory.

15. Click OK to close the Accounting Behind the Screens window and return to the Sales/Invoicing window.

Correcting a Sale invoice Prior to Posting

16. Review your invoice one last time. It is easy to make changes at this point. If you find an error, simply click the field containing the error and correct it.

17. After verifying that the invoice is correct, click the Print icon to open the Print Forms: Invoices window illustrated next.

Printing a Sales Invoice


18. Verify the printer. You can click the Printer Setup icon to change the printer.

19. Click Print to send the invoice to the printer. (Note: You can click Print Preview to display the invoice on the screen and then print it from the display window.)

Posting Sales Invoices

20. After printing, you are returned to the Sales/Invoicing window. Printing the invoice caused Peachtree to also post it so a blank invoice is now displayed for you to record the next transaction. If you are entering multiple invoices before printing then clicking the Save icon on the window’s toolbar will post an invoice.

21. You do not need to print invoices unless instructed to do so by your professor because the reports you print at the end of the workshop will document your work. However, if you need to print invoices then you can record multiple invoices and print them altogether by clicking the dropdown list on the Print icon and choosing Select Invoices to Print. In the window illustrated next, you can set options for printing unprinted or previously printed invoices. You can also mark individual invoices for printing.

Printing Multiple Sales Invoices


22. You have finished recording sales invoices so click Close on the window’s toolbar.

Recording Customer Returns

23. You will now learn to record a return of merchandise by the customer.

24. On March 5, 2008, Kevin Tucker returned one of the lamps he purchased on invoice 913. Click the Credits and Returns icon and select New Credit Memo to open the Credit Memos window illustrated next.


25. For Customer ID, lookup and select Kevin Tucker.

26. TAB to Date and enter “3/5/2008”.

27. TAB to Credit No. and enter “CM913”.

28. Use the dropdown on Apply to Invoice No.

to lookup and select invoice 913 and the line items for that invoice display at the bottom.

29. Place your cursor in the Returned field for the first item and type in “1.00”. The completed return is illustrated next. Notice that this transaction will debit the sales account (i.e., GL Acct 4110). If you need to debit the sales return and allowances account then simply place your cursor in the field and use the lookup to select that account. Keep the GL Acct illustrated.


30. Click Journal so you can view how this item will post.

Reviewing the Sales Journal


31. First, notice a debit to the sales account and a credit to the accounts receivable account.

32. Next, Peachtree assumes that this item can be resold so it is returned to inventory. As a result, the transaction will debit inventory and credit cost of goods sold for the original cost of the item. If a returned item cannot be resold then you must record an inventory adjustment to expense it. Inventory adjustments are illustrated in Workshop 7.

33. Close the Accounting Behind the Screens window.

34. Click the Print icon and send the credit memo to the printer. When finished, Peachtree has posted the transaction. Close the Credit Memos window.

Printing and Posting Credit Memos

35. On March 6, 2008, Mars received check number 1623 from Kevin Tucker in the amount of $539 representing payment in full of invoice 912. This check amount reflects a payment discount of $11.00. You will now record the receipt.

Recording Cash Receipts

36. Click the Receive Money icon and select Receive Money from Customer to open the Receipts window illustrated next. Delete


the data in the Deposit Ticket ID field by highlighting it and clicking Delete on the keyboard.

37. For Customer ID, lookup and select Kevin Tucker.

38. TAB to Reference and enter his check number of “1623”.


40. At the bottom, click the Pay field for invoice 912. Notice that this invoice carries an $11.00 discount. The completed receipt is illustrated next. Notice that discounts post to the Discount Account listed at the bottom of the window (i.e., 4140).


41. Click Journal to review the Cash Receipts Journal illustrated next. Notice that debits will post to 1110 Cash and 4140 Sales Discounts and a credit to 1120 Accounts Receivable.

Reviewing the Cash Receipts Journal


42. Close the Accounting Behind the Screens window.

43. Click Save so you can post this transaction and record the next. Posting Cash Receipts

44. On March 7, 2008, Mars received check number 1634 from Kevin Tucker in the amount of $735 representing payment in full for invoice 913. This invoice was originally $800.00. You then recorded a $50 credit memo, adjusting the balance to $750.00. The payment discount on this invoice should now be $15.00 (i.e., $750 x .02).

45. Select Kevin Tucker for the Customer ID.

46. Enter his check number 1634 as the Reference.

47. Enter “3/7/08” as the Date.

48. Mark the Pay box for invoice 913. Notice that the Discount still reads $16, which is the discount amount on the original invoice (i.e., $800 x .02). Place your cursor in the Discount field and type in “15.00” to adjust the discount. The completed entry is illustrated next.


49. Click Save and then Close.

Printing Deposit Tickets

50. You will now print the deposit ticket for these transactions. On March 7, 2008, the company took the checks to the bank. Click Bank Deposits and select New Bank Deposit.

51. Enter “3/7/2008” as the Date.

52. Keep the Deposit Ticket ID of “1”.

53. Mark the Deposit box for both checks. The completed deposit is illustrated next.


54. Click Print and send the deposit ticket to the printer. Return to the Select for Deposit window and click Close.

55. You are now ready to work on vendor transactions. Activate the Vendors and Purchases center.

RVPA

ecording endor urchases on ccount
56. On March 15, 2008, Mars purchased the following inventory from
Young's Space Simulations on account. The vendor billed Mars on invoice 7960 for a total of $165.50. Mars Company’s payment terms are 2/10, n/30.

Stock # Description Quantity

001 Space Age Lamp 5

004 Simulated Moon Rock 9

57. You will now record this bill. Click the Enter Bills icon and select New Bill to open the Purchases/Receive Inventory window illustrated next.


58. For Vendor ID, lookup and select “Young’s Space Simulations”.


60. TAB to Invoice No. and enter “7960”.

61. Either place your cursor in the Quantity field for the first line item or TAB to this field and enter “5.00”.

62. TAB to Item and lookup “001 Space Age Lamp”. Notice that data for the Description, GL Account, and Unit Price fields has defaulted from the item selected.

63. TAB to the Quantity field on the second line item and enter the information listed in the previous table. The completed transaction is illustrated next.


64. Click the Journal icon to view the entries that will post. These entries are illustrated next and show that account 1130 Inventory will be debited and account 2110 Accounts Payable will be credited.

Reviewing the Purchases Journal


65. Close the Accounting Behind the Screens window. Remember, if you find an error then simply click in the field containing the error and correct it.

66. After verifying that the transaction is correct, click Save to post it. A blank window is displayed. You are finished posting vendor bills so Close the window.

Posting a Vendor Bill

67. On March 17, 2008, Mars returned two of the Space Age Lamps costing $50 each to Young's Space Simulations. You will now post this transaction.

Recording Returns to the Vendor

68. Click Credits and Returns and select New Vendor Credit Memo to open the window illustrated next.


69. For Vendor ID, lookup and select Young’s Space Simulations.


71. TAB to Credit No. and enter “CM27”.

72. Use the Apply to Invoice No lookup to select invoice “7960”.

73. Enter “2.00” into the Returned field for the Space Age Lamp. The completed transaction is illustrated next.


74. Notice that these items will be placed back into inventory because GL Account 1130 (i.e., inventory account) will be debited. If you need to debit the purchase returns and allowances account because all returns are tracked in this account then simply place your cursor in the GL Account field and use the lookup to change the account. Keep the GL Account illustrated.

75. If an item cannot be resold and should not be returned to inventory then you would need to record an inventory adjustment.

76. Click the Journal icon to view how this entry will post. Notice the debit to account 1130 Inventory and the Credit to account 2110 Accounts Payable. Close this window.

Reviewing the Purchases Journal


77. After verifying that the transaction is correct, click Save to post it. Close the Vendor Credit Memos window.

Posting Vendor Credit Memos

78. On March 25, 2008, Mars issued check #437 to Young's Space Simulations in the amount of $363.19 as payment in full of invoices 790 and 7960.

Paying Vendor Bills

79. Click Pay Bills and select Pay Bill to open the Payments window illustrated next.


80. For Vendor ID, lookup to select “Young’s Space Simulations”.


82. Notice that invoice 790 carries an amount due of $250 and invoice 7960 an amount due of $115.50. Invoice 7960 was originally $165.50 but you previously recorded a credit memo of $50.00. This means that you now need to adjust the discount amount to $2.31 (i.e., $115.50 x .02).

83. Place your cursor in the Discount field for invoice 7960 and type in “2.31”.

84. Mark the Pay box for both invoices and the check now totals $363.19 as illustrated next.


85. Click the Journal icon to view the entries that will post. The window, illustrated next, shows that the transaction will post two debits to 2110 Accounts Payable, a credit to 5055 Purchases Discounts, and a credit to 1110 Cash.

Review the Cash Disbursements Journal


86. Close the Accounting Behind the Screens window. If you find an error, simply click the field containing the error and correct it.

87. After verifying that the check is correct, click the Print icon to print this check. The Print Forms: Disbursement Checks window opens. Change the First check number to “437” as illustrated next.

Printing a Check to the Vendor


88. Click Print. Return to the Payments window and click Close.

89. Click Reports & Forms on the main menu and select Accounts Receivable or click the Reports icon on the center to open the reporting window. Double click the Aged Receivables report to display it as illustrated next.

Displaying and Printing the Aged Receivables Report


90. Click Print to send it to the printer and then Close the report.

91. Return to the reporting window and select Accounts Payable on the left. Double click the Aged Payables report to view it as illustrated next.

Displaying and Printing the Aged Payables Report

92. Click Print to send it to the printer and then Close the report.

93. Now print the following reports under the General Ledger reporting area.

Printing Other Reports

a. General Ledger Trial Balance (Total = $16,953.81)

b. General Ledger (Cash = $11,413.81)

94. You may wish to experiment viewing other reports such as the Sales Journal, Purchases Journal, Cash Receipts Journal, and Cash Disbursements Journal.

95. You have now completed Part A of the workshop. Back up your work to a file that includes the company name.

96. Exit the software.

Backup and Ext

PEACHTREE COMPLETE 2009 WORKSHOP 5: PART A...

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