• Practice sets
• Sage 50 Learning
• Peachtree Learning
• Support

• Learning Center
• Software>
• Getting Started>
• Customers & Sales>
• Vendors & Purchases
  • Vendor setup
  • Add vendor
  • Purchase orders
  • Purchase transactions
  • Settle Payable
  • Purchase returns
• Inventory>
• Employees & Payroll>
• Banking>
• Company>
• Troubleshooting>
• Quick Reference>
• Videos
• Attribution
• Site map

Purchase transactions

Entering details of purchase transactions is a common activity you will perform in Peachtree. All purchases of inventory are to be recorded using the Purchases/Receive Inventory window, while cash purchases of non-inventory items or services are to be recorded using the Write Checks window. Once the transactions are saved, Peachtree records the details of the transactions in the purchase journal and/or cash disbursements journal, and posts the journal entries into the relevant general ledger accounts. The appropriate vendor balances are also automatically updated.

This topic shows you how to enter the following types of purchase transactions:

• Opening the Purchases/Receive Inventory window
• Entering common details into a purchase invoice
• Applying a credit purchase to a purchase order
• Recording credit purchases
• Recording part cash part credit purchase
• Recording cash purchases of inventory with an invoice
• Recording cash payments of non-inventory items or services

Opening the Purchases/Receive Inventory window

To open the Purchases/Receive Inventory window in Peachtree, ensure you are in the Vendors & Purchases Navigation Center in Peachtree. Click the Enter Bills icon and select New Bill from the list of options available.

The Purchases/Receive Inventory window then appears, where you are able to enter information about the purchase. This topic will first explain how to enter common details into the Purchases/Receive Inventory window. Then, to find out the specific steps for each type of purchase, read the instructions under the appropriate heading below.

Entering common details into a purchase invoice

The following screenshot and reference table show step-by-step instructions on how to record information for a purchase into the top part of the Purchases/Receive Inventory window. These steps are common to all inventory purchases recorded using the Purchases/Receive Inventory window. Note that each step is assigned a reference number to help you identify the appropriate field or icon in the screenshot provided.

The Purchases/Receive Inventory window with reference numbers - common steps

Step	Peachtree field or icon	Action
	Vendor ID	Select the name of the vendor.
	Remit To, Ship To	These fields are automatically populated when you select the vendor. You can accept these default addresses or change the Ship To details if required.
	Date	Click the calendar icon to select the date of the purchase invoice.
	Invoice No.	Enter the vendor's invoice number into the Invoice No. field. However, if the vendor has not yet billed you for the purchase, just select the Waiting on Bill check box instead of entering an invoice number. Once you have received the invoice, enter the invoice number and clear the Waiting on Bill check box. If you are completing the Peachtree Practice Set, you are advised of the invoice number to use, so you should enter that number into the Invoice No. field.
	Various	Sometimes a purchase transaction is made to fulfill a particular order of items from a customer. In this case you may want to match the purchase to the sales order or invoice created specifically for that customer's particular order. You can enter the corresponding sales order or invoice number into the relevant fields if known. The other fields are automatically populated when you select the vendor. You can accept these default terms or alter the details if required.

top

Applying a credit purchase to a purchase order

The following screenshot and reference table show step-by-step instructions on how to record a credit purchase made by your business that is based on a previous purchase order.

The Purchases/Receive Inventory window - generated from a purchase order

Step	Peachtree field or icon	Action
	Purchases/Receive Inventory window	Open the Purchases/Receive Inventory window and enter common details into the purchase invoice by following the five steps in the topic above, Entering common details into a purchase invoice.
	Apply to Purchase Order No.	If your business has a purchase order with the selected vendor that is open (that is, the merchandise has not yet been delivered by the vendor) then the window displays the Apply to Purchase Order No. tab rather than the Apply to Purchases tab. Here, in the drop down box next to Apply to Purchase Order No., select the purchase order number applicable to the purchase. The inventory items ordered will then appear in the rows below.
	Received	For each item ordered, enter the number of that item received from the vendor.
	Amount	Peachtree automatically calculates the total amount of each type of item received from the vendor.
	Invoice Total	Peachtree automatically calculates the total value of the invoice.
	Once you have entered the information in the Purchases/Receive Inventory window, remember to click the Save icon to save the purchase invoice, journalize the transaction and post it to the applicable accounts.

top

Recording credit purchases

The following screenshot and reference table show step-by-step instructions on how to record a new credit purchase of inventory your are purchasing.

The Purchases/Receive Inventory window - enter a credit purchase

Step	Peachtree field or icon	Action
	Purchases/Receive Inventory window	Open the Purchases/Receive Inventory window and enter common details into the purchase invoice by following the five steps in the topic above, Entering common details into a purchase invoice.
	Apply to Purchases	Select the Apply to Purchases tab to create a new invoice for a credit purchase. Note that if your business has a purchase order with the selected vendor that is open (that is, the merchandise has not yet been delivered by the vendor) then the window displays the Apply to Purchase Order No. tab rather than the Apply to Purchases tab. If this is the case you will need to click on the Apply to Purchases tab to record information for a new credit purchase.
	Quantity	Enter the number of units of the first inventory item purchased.
	Item	Type in the Item ID of the item of inventory purchased.
	Description	When you select the item of inventory using the Item field, Peachtree automatically populates the Description field with the longer description of the item of inventory. Read this description to check that you have selected the correct item.
	GL Account, Unit Price, Amount,	Peachtree automatically populates these fields with the default information specified when that item of inventory was set up. You can either accept the default information or enter any changes directly into the appropriate field. Note that if you change the unit price, Peachtree automatically calculates the new Amount of the item. Alternatively, if you change the total amount, Peachtree will calculate and update the Unit Price.
	New inventory row	You can enter additional items of inventory by repeating steps 3 to 6. If you need to add more rows than is displayed, click the Row icon near the top of the window and select Add from the drop down list provided.
	Invoice Total	Peachtree automatically calculates the total value of the purchase invoice.
	Once you have entered the information in the Purchases/Receive Inventory window, remember to click the Save icon to save the purchase invoice, journalize the transaction and post it to the applicable accounts.

top

Recording part cash part credit purchases

The following screenshot and reference table show step-by-step instructions on how to record a new purchase of merchandise that was only partly paid with cash.

The Purchases/Receive Inventory window - recording a partial cash payment

Step	Peachtree field or icon	Action
	Purchases/Receive Inventory window	Open the Purchases/Receive Inventory window and enter common details into the purchase invoice by following the five steps in the first topic above, Entering common details into a purchase invoice. Next, follow steps 2 to 8 from the previous topic, Recording credit purchases. Just make sure you do not save the purchase invoice yet!
	Amount Paid at Purchase	Enter the amount of money paid to the vendor and press either <Tab> or <Enter> on your keyboard to display the Reference field and the Cash Account field.
	Reference	Enter the reference number for the cash payment. For example, if your business paid by check, then the reference is the check number of your check.
	Cash Account	If the business has more than one type of cash account, select the cash account from which the payment of cash is made.
	Once you have reviewed the information in the Purchases/Receive Inventory window, remember to click the Save icon to save the purchase invoice, journalize the transaction and post it to the applicable accounts.

top

Recording cash purchases of inventory with an invoice

To record a cash purchase of merchandise with a purchase invoice, follow the process to record a part cash and part credit purchase. The only difference is that you enter the total value of the invoice in the Purchases/Receive Inventory window rather than a partial cash payment.

Recording cash purchases of non-inventory items or services

Businesses sometimes purchase items that are not for resale or services from vendors they do not deal with regularly. In this situation you can use the Write Checks window to quickly enter payment details and write checks to vendors. Once the check payment information is saved in the Write Check window, Peachtree then automatically journalizes the payment into the cash disbursements journal and updates the applicable general ledger accounts.

To use the Peachtree's write check functionality, if you are in the Vendors & Purchases Navigation Center, click the Pay Bills icon and select the Write Check option from the drop down list provided. From the same Navigation Center you can also access the same Write Checks window by clicking the Write Checks icon and selecting New Check from the drop down list provided. Alternatively, through the Banking Navigation Center you can also access the same Write Checks window by clicking the Pay Bills icon and selecting Write Check from the drop down list provided.

This opens the Write Checks window where you can enter information about the checks issued by your business. The following screenshot and reference table show step-by-step instructions on how to record a check into the Write Checks window in Peachtree. Note that each step is assigned a reference number to help you identify the appropriate field or icon in the screenshot provided.

The Write Checks window with reference numbers

Step	Peachtree field or icon	Action
	Vendor ID	Select the appropriate vendor ID if you have set up that vendor’s records in Peachtree. If you are completing the Peachtree Practice Set, you are asked to set up records for inventory suppliers but not vendors that your business transacts with less often. If the vendor is not set up in Peachtree, leave this field blank and complete the appropriate fields below.
	Pay to the Order of	Note that if you select an existing vendor in the Vendor ID field, Peachtree automatically displays the name and address of the vendor. However, if you are completing the Peachtree Practice Set, you may be provided with the name of the vendor to whom the payment is made but not their address. In this case, just type the vendor's name in the Name line of the Pay to the Order of field.
	Check Number	Enter the reference number of the check issued to the vendor.
	Date	Click the calendar icon to select the date of the check payment.
	The dollar value of the check	Enter the amount of the check payment.
	Cash Account	If your business has more than one type of cash account, select the cash account from which the payment of cash is made.
	Expense Account	Select the general ledger account that is debited. Note that if the payment involves more than one account, you can click the Split button to allocate the payment to multiple accounts.
	Description	Notice that in the Description field Peachtree automatically displays the name of the account selected in the Expense Account field.
	Once you have entered the information in the Write Checks window, remember to review your entries and click the Save icon to record the check payment, journalize the transaction and post it to the applicable accounts.

Return to the top