I am working on setting up peachtree complete 2010. We sell both services and products. Initially when setting up the chart of accounts I set up 4 income accounts for sales: one account for product sales, "sales product", and three accounts for sales of services: "sales assessment," "sales training," "sales support." I wanted to be sure that we could track sales for the types of services we sell.
However, when I went into inventory to set the item defaults, I realized that I could only select one default account for services. Is this a case where I should have an account called sales services and then segment it into assessment, training and support?
Does this question reflect a correct understanding of segmenting? Also being so new to peachtree, I could not find the starting point for creating segments on an existing account.
Thanks in advance for your help.
Account segments are typically used for departmental or location reporting. It doesn't apply to your situation.
The default account, is just that, a default. You'll want to set up 3 service items for your assessement, training and support and each can be tied to the appropriate income account.
I could only select one default account for services.
A "Default" account number is the one you will use most often. It does not mean it is the only account number you can chose, but if you forget to enter one, Peachtree will use this number. This is entered in the Master default area for ALL inventory items. You may also set up a specific inventory item GL account number for each individual item.
Go to Maintain > inventory items. Set up you Item called "Sales Training". This would be an activity type account. Give it the GL account number you have created for Income training. Every time you use this item, it will default to your sales training income account.
Account segmentation "WIZARD" is not available in Peachtree Complete, but is a built in feature of the Premium and higher. You will have to build the segments yourself.
Building your Peachtree company is like building a house. If you DO NOT do it right from the start, it will crumble around you. I would strongly suggest that you find someone KNOWS Peachtree to help you. Accountants are great at accounting, but they do not know the program. This is what Certified Consultants do for a living. We know the program inside and out. The few dollars you pay now will pay you back as long as you are using the program. I would strongly suggest that you seek help at this time to make sure you are off to a GREAT start.
Okay, I created all the sales accounts that I wanted and then also created the items, choosing the correct GL sales account that corresponds to each item. Great!!
What concerns me is the accounting piece and what accounts are being posted to throughout the workflow. I think peachtree must do a lot of that behind the scenes (???) and if I don't know where things are going, I'm going to be in trouble when I'm problem solving or looking at reports.
So here's a workflow for product that we purchase: 1 for our office demo, one for a particular job and 5 to place in inventory, one of which we sell a week later to a customer.
Rarely will I create a purchase order. I will know that product was ordered when I get a vendor bill. So when I receive that bill I am going to post the cost of 1 item to our "advertsing" expense acct, 1 item that was purchased for a particular consumer to our "cost of goods sold" expense acct and allocate it to the specific job, and 5 items to our "inventory" account.
I don't think I will do anything further for the demo product.
The product sold to the consumer needs to be invoiced and payment received. On both the sales invoice page and the receive money page I see where I can specify the job this product is allocated to but on neither page do I see where this sale gets posted to my "product sales" account. Is this being done transparently and, if so, how do I get to see that?
Later when we sell an item that was received into inventory I would use the sales receipt page to record that sale but I do not see at all the process of that item coming out of "inventory" and going into "product sales." I assume that's what is happening but how do I see it?
I am also concerned about the difference between the enter bills and receive into inventory pages. Perhaps I cannot use the enter bills page as i suggested above at all so.....:--))
Yes - Peachtree does the accounting behind the scenes, using the accounts that are assigned in Maintain inventory items.
Your first post talked about service items, now you're talking about inventory which is a little different.
A stock item has 3 accounts - inventory which is where it goes at time of purchase, sales which is hit when the item is sold and cost of goods sold which is also hit when the item is sold and then inventory is relieved.
To echo Shirley - you may want to invest in a little time with a certified consultant. A cc can talk through exactly what you're trying to accomplish and recommend the best way to do it within Peachtree.
My understanding from reading is that peachtree considers everything we sell an item, both services and products. Am I misunderstanding this because when I open manage inventory items, services are an item type. So now I am really confused!
Yes, whatever you sell, whether service, stock item or non-stock item is maintained in Maintain Inventory.
The G/L accounts assigned in item maintenance drives the "accounting behind the scenes"
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