How to Purchases/Receive

 Inventory  

1)      Some inventory is received after issuance of the purchase order and some is received without issuance of purchase order to the vendor the inventory can be received by the customer. First open an existing company from the Peachtree software.  

2)      After open the existing company from the Peachtree software there are several methods using which we can “Purchase or Receive Inventory”. One method of receiving inventory is that we first have to go to the “Task Menu” and select the 8^th option that is “Purchase/Receive Inventory” and the second method of receiving inventory is that we have to go to the “Options” and then select the 2^nd last option that is “Navigation Aid” the following screen will be appear.    

  

                                                                                      

Without issuance of purchase order

3)      Now we have to select the “Vendor” from the vendor ID field to show that from which vendor we have received the inventory. Here we can see two tabs the first is “Apply to Purchase Order” and “Apply to Purchases” means if we are receiving the goods against the purchase order then the tab will be shifted to apply to purchase order from apply to purchases. So first we take a glance that what we do in Apply to Purchases tab. So first we select the vendor ID from the vendors. If we have already made the vendor then just click on the “Magnifying Glass” and select the vendor. But if we have no vendor and want to make it then do one of the following:-

  

 i. Go to the “Maintain Menu” and select the vendor option and make the vendor.
ii. Type “+” or “Double Click” inside the vendor ID field and enter a new vendor ID and also complete the necessary information of the vendor after giving all the information just click on the “Save” button. 

Now we can see that the tab is remain on the Apply to Purchases means we are purchasing without the purchase order.

4)      First we have to give the “Date” this date represents that on this date we have received the inventory. Then we have to give the “Invoice No” that means against this invoice we have received or purchased the inventory.   

5)      “Drop Ship” the goods which are not received yet will be cancelled and “Waiting on Bill” means if we are not received the invoice against the inventory received then we click on this option.

  

  

6)       In the “Quantity” column we have to mention that how much quantity of inventory has been received. And then in the “Item” column we have to select the item ID and then the name of the item is appear in the description automatically. In the “GL Account” we select the inventory account from our chart of accounts. Then we have to mention the “Per Unit” which means that at how much price we purchase each unit of that item. And after that the total amount will be automatically calculated or shown in the software. We can see that the total amount of purchase is automatically appears in  front of the “Apply to Purchase Tab”

7)      After all this we have to save the information for that purpose we click on the “Save” button. 

               

 

With the Issuance of Purchase

Order   

8)      We can see that the tab is shift to “Apply to Purchase Order No” from “Apply to purchases” the following window will appear.   

  

9)      So as we shift to the tab Apply to Purchases Order No we have to select the “PO” No from the PO selection area as shown in the window which is given below.

10)   After selecting the PO No we have to enter the inventory received by us. And all the calculations will be made automatically.

  

11)  After entering all the necessary information we have to click on the “Save” button. 

                                          ii.            Type “+” or “Double Click” inside the vendor ID field and enter a new vendor ID and also complete the necessary information of the vendor after giving all the information just click on the “Save” button.      

Make Purchase Order

1)   This task is used basically when customer gave an order to a vendor, that they want to purchase the goods from him and for that purpose they make an order to purchase goods.

   

2)   There are several methods using which we can make “Purchase Order”. One method of making purchase order is that we first have to go to the “Task Menu” and select the 7^th option that is “Purchase Order” and the second method of making purchase order is that we have to go to the “Options” and then select the 2^nd last option that is “Navigation Aid” the above screen will be appear.  

       

      

3)   In the above purchase order window something mentions to be mandatory according to the requirement of customer.  First we select the “Vendor” in the Vendor ID field because we making an order to vendor or supplier that we want to purchase the following goods at what price and when and which item we want to purchase. Now first we select the vendor from whom we want to purchase or whom we are sending order for purchasing. If we have already made the vendor then just click on the “Magnifying Glass” and select the vendor. but if we have no vendor and want to make it then do one of the following:-

       

      4) In “Ship To” customer have to write the address where the vendor sent goods to him.

i.     Go to the “Maintain Menu” and select the vendor option and make the vendor.

ii.    Type “+” or “Double Click” inside the vendor ID field and enter a new vendor ID and also complete the necessary information of the vendor after giving all the information just click on the “Save” button.   

   

      

  

5)   The next step is to specify the date and on the right side of the purchase order there are two dates displayed. “Date” this is the date at which we are making the purchase order and the 2^nd is “Good Thru” this is the date at which we want to receive the goods or the goods are sent to us.  Now the most important thing is to give the “Purchase Order No” and this is the compulsory part of this purchase order. “Close PO” option is used to close the purchase order. By selecting this, purchase order is closed. For instance out of 200 goods we just received 160 goods then by clicking on this “Close PO” we mean that we will not receive the remaining 40 items. “Drop Ship” the goods which are not received yet will be cancelled.   

6)   Now we have to specify the quantity needed, item, unit price of that item, GL inventory account in the following window.

  

 

7)   First we have to give the “Quantity” in the quantity column. That how much quantity customer need. And after that we have to select the “Item” from our item list. Means what we want to purchase from our supplier or vendor. When we select the item the name, description and GL inventory account of that item automatically display in the following window.

     

8)    After that we have to give the “Unit Price” which means that at the mention price we purchase that item from our vendor or supplier. The per unit price will be shown in the above window.

9)    When our requirement is been specified then we have to select the “Account Payables” account in the A/P option which is shown at the right top of amount column. It means that we are making purchase order at credit basis.

                                  
                                       

    

                                     

10)  After filling all the required information we have to save the given information and for that matter we have to press the “Save” button or press “Alt + S”.        

  

Maintain Inventory Item

As we are starting business for making transaction before we make transactions we have to set up our inventory. Means we are baking company and produce cakes.
   

1)   First open the Peachtree software click on the “Maintain Menu” then select the 5^th option that is “Inventory Item”. 

2)   When we click on the inventory item following window will appear with five different   tabs.  And to record the inventory data the under mentioned 5 fields should be filled in  

a.      Item ID

b.      Description

c.       Item Class

d.      GL Sales Account

e.       GL Inventory Account

f.       GL Cost of Sales Account

3)   As we are manufacturer and produce “Cake” so we have to enter all the necessary ingredients from raw material to finish goods which are included in baking process of cake. For this purpose something to be mention is mandatory which are given below:-

Item ID	Description	Item Class
100	Baking oil	Stock Item
102	Baking powder	Stock Item
104	Sugar	Stock Item
118	Chocolate cake	Assembly

After entering the necessary accounts we will click on the “Save” button or press “ALT + S” to save that Inventory items in our records.

4)   To view the recently made ingredients of cake we click on the “Magnifying Glass” and view all the items from raw material to finish goods. In the above window we have to mention 3 other important things that are different in case of raw materials and finish good. Which are given below:-

  

Item Class vary with the items explain with example as under:-

Items	Item Class
a.       Raw material use in any manufacturing work e.g. in manufacturing computer the raw material which is use in it is steel sheets, mother board, processor, ram, LCD etc.	Stock Item
b.      In every manufacturing process Labor is used.	Labor
c.       When good is manufactured means Finish Goods	Assembly

 

Maintain Assembly Item

5)   As for assembling a “Cake” we need baking oil, baking powder, sugar, egg, chocolate powder etc. Chocolate Cake will be considered as “Assembly Item” and the components of it will be saved as the “Stock Item”. In the above window we can see that when the Finish Product is selected that is “Chocolate Cake” the item class is fixed or can not change.

6)   In order to maintain assembly item first give item ID and then description after that select the  item class as assembly in maintain inventory item than the Bill of Material Tab field will appear we just enter account IDs and after saving it we will be enable to enter the “Beginning Balnces” in  it.

7)   As we successfully created the inventory items we click on the “Beginning Balance” button the above screen will appear.

8)   As we enter item id we will be able to enter Quantity, Unit Cost and Total Cost. After entering all the balances for saving them we have to click on “Ok” for save them.

9) To check the inventory available with us we will click on the “Report” button and select the 6^th option that is “Inventory” the following window will appears.

10) Then we select the 9^th option that is “Inventory Stock Status Report” this shows that how much inventory is now in our hand.