User Guide

Tutorials
Getting Started Guide
148
3
8 Type 1.39 in the Sales Price #1 box, and then select OK to set the sales price
per ring to $1.39.
9 In the Unit/Measure field type Packet and press e. The cursor moves to
the Item Type field.
The Item Type is a way of classifying similar inventory items for sorting
and printing in reports.
All type fields are case sensitive. The program reads Supply, SUPPLY, and
supply as being different types.
10 Type SUPPLY to classify the violet seeds as a supply item.
Inventory Default Accounts
When you purchase inventory stock-type items, you credit accounts payable
and debit the inventory account. When you sell inventory stock-type items,
two sets of disbursements take place:
• Debit accounts receivable, credit revenue
• Debit cost of goods sold, credit inventory
You must tell Peachtree Accounting which revenue account and cost of
goods sold account to update for sales and which inventory account to
update for both purchases and sales.
11 Being a retail and service company, Bellwether Garden Supply defaults the
following accounts for stock items:
• G/L Sales Account: 40000 Sales
• G/L Inventory Account: 12000 Inventory
• G/L Cost of Sales Account: 50000 Product Cost
These accounts are set up in Inventory Item Defaults window. (From the
Maintain menu, select Default Information then Inventory Items to
display the Inventory Item Defaults window.) Each time you enter an
item these accounts are already established for you. If an item is an
exception, you can change the account information for this item on the
Maintain Inventory Items window.
In our sample company we created some accounts specifically for seeds.
Use the lookup list in the G/L Sales Acct field to enter account number
40000-SE (Sales - Seeds). Keep the default account (12000) in the G/L
Inventory Acct field. In the G/L Sales Acct field, enter 50000-SE (Product
Cost - Seeds).
Note