Consolidating Existing Peachtree Accounting Companies
To specify the companies that will be consolidated in this company, select each company from the list in the left hand box and click Add. If the company does not appear in the list, you can use the Browse button to search for it.
There are a number of rules for consolidating companies:
1. All companies to be consolidated must have the same fiscal year setup, as well as the same accounting method (Accrual or Cash).
2. Each General Ledger account must be of the same type (for example, account 10001 must be Petty Cash in all companies).
3. General Journal descriptions will include the company name of the subsidiary company in which a transaction was created.
4. All transactions created in the consolidated company will have the reference “Consolidated Trans.” Later, you can change which companies are consolidated by opening the consolidated company and selecting File, Reconsolidate Company.
CHOOSING AN ACCOUNTING METHOD
Peachtree allows you to choose one of two accounting methods, Accrual or Cash. The cash method records income when cash is received and expenses when they are paid. The accrual method records income when it is earned and expenses when they are incurred. If you are not sure which accounting method your company should use, consult your accountant before selecting an accounting method.
You cannot change Accounting Methods once New Company Setup is complete. Ensure that the correct accounting method is selected before continuing.
CHOOSING A POSTING METHOD
Peachtree allows you to choose one of two posting methods, Real Time or Batch. When you use real-time posting, transactions update the General Ledger when they are saved. If you choose batch posting, you must post the journals before the General Ledger will be updated.
Real-time posting updates the General Ledger each time a transaction is entered, which means your reports in Peachtree always reflect your current financial standing. For this reason, Peachtree recommends using real-time posting.
The posting method can be changed at any time by selecting Company Information from the Maintain menu.
SETTING UP ACCOUNTING PERIODS
On the Accounting Periods Structure window you can choose to use 12 monthly accounting periods per year, or Accounting periods that do not match the calendar months. An example of the latter would be a business that needs 13 periods with four weeks in each period.
Peachtree allows two fiscal years to be open at a time. Each fiscal year is made up of accounting periods. At the end of the second fiscal year, you close the first fiscal year to make the next fiscal year available. Your accounting period setup should reflect the beginning of your fiscal year, even if you start entering transactions in the middle of the year. Some examples of common situations are below:
â€¢ The fiscal year starts January 2008 and matches the calendar year. Transactions will be entered in Peachtree starting in June 2008. The accounting periods should be set up so that January 2008 is period 1. That means that June 2008 will be period six, and transactions can be entered for any month between January 2008 and December 2009.
â€¢ The fiscal year starts in July 2008 and ends in June 2009. Transactions will be entered in Peachtree starting July 2008. The accounting periods should be set up so that July 2008 is the first period. This accounting period setup would allow transactions to be entered in any month between July 2008 and June 2010.
If you chose the option 12 monthly accounting periods, you will next specify when you want your fiscal year to begin.
You cannot change Accounting Periods once New Company Setup is complete. Ensure that the correct accounting periods are selected before continuing.
You can use the Setup Guide to walk you through setting up all of your customers, jobs, vendors, inventory items, employees, chart of accounts, and users.