SALES / INVOICING

            When we deliver the goods to our customers, we make a sale transaction and issue an invoice and correspond that invoice to our customer. An invoice includes all the necessary information about the sales transaction; for example the invoice number, quantity of goods sold, the type of goods sold, their per unit and the total price, sales tax amount, and the address of the customer at which the goods are going to be delivered.

In order to know that how to make an invoice in Peachtree software, click on the Tasks menu and then select the option of Sales/Invoicing; as shown below

Then the following screen will appear

This is the screen of Sales/ invoicing.

In this screen, we can have to make an invoice. Either we can make the invoice of a sale order or can directly make a sales invoice.

For making a sales invoice, at first we have to give our customer ID to whom; we are selling the goods. To give a customer ID, click on the magnifying glass or press shift+? , the list of all our customers will open, as we can see in the window below

Select the required customer from the customer list by pressing Enter or by double clicking on that.

Note:

(We can also make a new customer, which is not present in the list of customers. By pressing + or by clicking twice; the software will open the window of Customers/ prospects where we can create a new customer account and use it in the window of Sales/invoicing)

After selecting the customer, we can see the change in the above screen, in the window below

We can see that by entering the customer ID, the tab of Apply to sales has been shifted to the tab of Apply to sales order no.

Now we have to enter the invoice number in Invoice No. and then select

·        The address at which the goods are going to be delivered from the Ship To

·        The date of invoice from the calendar in the Date

·        The method of delivering the goods from the Ship Via

·        The date of shipping the goods from Ship Date

·        Any terms applicable to the payment from Terms

·        The ID of our sales representative, in Sales Rep

Then the window will look like as follows

If the sales order of that customer exists already then select the sales order no. from the drop down button of Apply to Sales Order No.;

As we select the sales order number, the screen will look like as follows

The software is giving us the details of our selected sales order.

We just have to enter the quantity of goods which are going to be shipped in Shipped, and the software will automatically made the total of sales of the shipping items. As we can see in the window below

If the sale order of customer does not exists already or wants to purchase additional goods, then we can directly make the sales invoice by clicking on the tab of Apply to Sales, under the same invoice number

Note:

But if we had once closed the invoice, then we have to make a new invoice to directly purchase additional goods in addition to the shipment of the goods of sales order.

After making a sales invoice, press Save in the header to save that invoice or press Alt+s

Once we made an invoice, we can view that by clicking on the Open button in the header, a select invoice screen will appear; as we can see below

When we select the invoice which we want to see; by double clicking on that, the software will open that invoice, as we can below

CONVERTING A QUOTE INTO AN INVOICE:

          We can convert a quotation into a sales invoice directly (without making a sales order).

For this purpose, click on the Task menu, and select the option of Quotes/Sales orders and then select Quotes, as we can see in the screen below

Then the window of Quotes will open

Here click on the Open button, present in the header, then the following screen will appear

Here all the quotations are given. We select the quote that we want to convert into a sales invoice. Double click on the required quote will open that quote, as we can see below

After opening the quotation, press the Convert button present in the header.

The following short screen will appear

Here select the option of Sales/invoice and enter the invoice number that you want to give to new invoice, as shown below

Then press the Ok button

We will see that that quote will disappear from the screen as we can see below

Moreover the converted quote will also not appear  now in the Select quote window

As we have converted the quote of Umer electronics into Invoice, we cannot see here now the quote of Umer electronics here.

But it will appear in the Sales/Invoicing window, in Select Invoice, as we can see below

Maintain inventory items and its default information

If you want to maintain the inventory, click on the maintain menu and go to inventory items

as we can see in the window below

Here a new screen will appear

Here we have to write the item ID and its description, item ID’s are maintained to give every item a unique identity so that we  can trace that item by that, it also makes the recording of items easy. And have to choose the item class(as shown in the screen below) according to the description of item . We can also view the item IDs we had made through the magnifying mirror in the screen. Moreover we can change, delete, any ID that we had made.

In this screen, we can see the list of different item class according to the different nature of products.

In this screen, we can also see that here are fve different tabs

• General
• Custom fields
• History
• Bill of materials
• Item attributes

General:

In the general tab, we have to write that either we are dealing with the selling of item or its purchase. Moreover, the cost method applied by the company,

1.      FIFO(first in, first out method)

2.      LIFO(last in, first out method)

3.      AVERAGE

The price level for our different customers, the cost of the last unit made, parameter to measure every item, and the general ledger sales account, general ledger inventory account, and the general ledger cost of sales account. We cannot save any ID, unless we give the reference of these accounts. So,  after maintaing every ID,  give the reference of these accounts and then press Alt+s to save that ID.

In this general tab, we can also view the quantity of stock in hand, the quantity of stock available, minimum stock and the reorder quantity.  Here is also a button of beginning balances. If we have maintained the item accounts, then by pressing this button a screen will appear in which we can enter the beginning balances of the accounts we have maintained.

Custom fields:

            In the tab of custom fields, we write the additional information about our stock, for example our alternate vender to purchase the stock, substitute of our stock, and any other information about the stock.

We can also change or unable these field labels in the default information of inventory items.

History:

            In the history tab, we can view the history of number of units received, number of units sold, sales, and the cost of these units.

           

Bill of materials:

            This tab is applicable, in case of item class (assembly). After maintaining the assembly item, then in this tab we can enter the detail of that item, the materials required to manufacture that item and their IDs, in order to keep the record of stock in hand and stock available.

If we want to print the detail of the assembly items, then we have to check here the box of print components on invoice.

DEFAULT INFORMATION (inventory items)

            If we want to make any change in the default information of the inventory items, then click on the Maintain menu and then on the Default information and go to the Inventory items as we can see in the screen below:

Then the following screen will appear

In this screen of inventory item defaults, here are four tabs

• General
• GL Accts/ costing
• Taxes/ shipping
• Custom fields
• Price levels

General:

            In this tab, the software is asking to give the warning messages when the stock is not in hand or not available, and asking about the total quantity of stock either in hand or available.

GL accounts/costing

            In this tab, we can set the default information of our stock so that we can do not have to write that information again and again, for example the costing method of the company etc.

We can also give here the general freight account for freight charges.

Taxes /shipping:

            In this tab, we can see that here are two lists, one for the tax type of items and other for the shipping methods. So we can describe there the item’s tax type and the method through which we send the goods.

           

Custom fields:

            In this tab, we can edit, enable/disable any field label. A disabled field label will not appear in the maintain inventory items window.

Price levels:

            Here we can set different price levels for our different type of customers. Price levels are used in sale transactions.

For customizing a price level, click on the edit button, then a short screen will appear, as we can see below;

If we click on the drop down button of use, and choose the option of last calculation, then three subsidiary field labels will appear as we can see in the screen below

In the field label of and, there are also different options and we can choose the option of our choice, as we can see in the screen below

In the percentage box, we can also set the percentage by which we want to increase the price.

Moreover in the field label of round price, we can also round of the price.

Maintain customers/prospects and its default information

In order to know how to maintain customers, we will click on the option of Maintain menu and select the option of Customers/Prospects, as shown below;

Then the following screen will appear

Here we have to write the customer ID (to maintain separate record of every single customer) and his/her name.

We can also make an ID inactive or prospect (that are our potential customers); which will not appear in beginning balances list later. And we can activate those later at any time.

Five different tabs are also given here;

·         General

·         Sales defaults

·         Payment defaults

·         Custom fields

·         History

General

In the general tab, wehave to write the name of the person to which we will contact and the correspondence address and the contact numbers, e-mail address etc. and also the type of the customer (which will help us in dealing with that customer) ,as we can see in the screen below:

In this screen, we can also see the beginning balance button. By pressing this button, a new screen will appear in which we can enter the beginning balances of our customers.

Sales defaults

In the sales defaults tab, we have to write ID of our sales representative (that who is selling our specific customer), which will help us in seeing the progress of our sales representative and the general ledger sales account. But if we do not write the general ledger sales account, then the data will not be saved by the software.

We also have to write the purchase order # (number of that order on which the order for purchase is made by our customer), and the mode of delivery of order. And also have to set the price level for our customer and the terms of order.

Payment defaults

If the customer is making the payment through the credit card, then we have to write the relevant information here, for example the credit card holders’ name, his address, city or state, the number of the credit card and the expiry date of the credit card.

Customfields

In custom fields tab, we write the secondary information about the customer. We can also customize these field labels by editing the default setting of customers (in default information of customer).

History

We can see the past information of our customer through this tab, as the starting time period of our customer, the date of last transaction with him, the amount of last transaction,the date of last payment which was due and its amount. This all history will help us to know more about our customers and have good business relations with them.

DEFAULT INFORMATION(customer)

For customer’s default information, we will click on the Maintain menu, and then select the option of Default Informationand from that select Customers;as we can see below

Then the following window will appear;

Here five tabs are given

·         Payment terms

·         Account aging

·         Custom fields

·         Finance charges

·         Pay methods

Payment terms

In this tab, we set the standard terms of sale, and the maximum limit of credit for our customer.We can see in this screen the option of credit limit, if the customer will exceed this credit limit(the amount given by the customer as security earlier) then we will deal with that customer only on cash basis.

Here we are also required to give the reference of general ledger sales account and the discount general ledger account on which the discount will be charged.

The different standard terms of sales are as follows:

¢  C.O.D

It means cash on delivery, that the customer will pay the cash when we deliver the goods or the services

¢  Prepaid

It means that the customer had already paid the cash.

¢  Due in number of days

It means that the amount will be due after the specific number of days, the discount percentage if the payment is made within the specific number of days before the due date.

¢  Due in day of next month

It means that the amount will be due after the fixed date of the next month and discount percentage if the payment is made within the specific number of days before the due date.

¢  Due at the end of month

That the amount will be due at the end of the month and a discount will be given if the payment is made within the specified number of days

Account aging

This tab is related to the aging of debtors. So that we can record our debtors at their net realizable value according to the due date or the invoice date of the contract.

Custom fields

We can make our own field labels here in this tab, and can also change them,and enable/disable them.

Pay Methods

In this tab, we set the payment method of our customers. For example cash, check, VISA card etc.