General Ledger Accounts/Costing


On the GL Accts/Costing tab you specify several GL accounts for various types of inventory items. The default freight account is also selected on this window. You can change information for individual items when they are added through Maintain Inventory Items. Each field on this tab is described below:


Item Class: Each inventory item is assigned to an item class that defines the way the inventory item is used in Peachtree. Quantity on hand and cost are tracked for stock and assembly items only. There are a variety of item classes available to encompass the needs of many different kinds of businesses. Each item class is described below:

Stock item: The traditional inventory item that is bought and sold. Quantities, costs, vendors, minimum stock levels, and other values are tracked for stock items.

Master Stock item: A special item that does not represent inventory you stock but rather contains information shared with a number of substock items generated from it. Once you generate a master item and specify its primary and secondary attributes, Peachtree will create the substock items automatically.

Serialized Stock Item: An item that must have a serial number associated with it and the serial number must be specified whenever the item is purchased, sold, or adjusted into or out of inventory. Costing for this type of item is specific to the individual item.

– Non-stock item: This is an item that is not normally stocked. Quantities, descriptions, and unit prices are printed on invoices, but quantities on hand are not tracked.

– Description only: This item class is used when you want to print text on the invoice. For example, a warranty disclaimer could be entered with this item class; and when an invoice is created, you would enter the warranty Item ID to print it onthe invoice.

– Service: This item class is used to simplify entry of services paid for by your company or sold to a customer.

– Labor: This item class is used to simplify entry of labor paid for by your company or sold to a customer. This class can also be used to track labor cost associated withassemblies.

– Assembly: This item class consists of two or more inventory items that are grouped together and sold as one unit. The components of the assembly are entered on the Bill of Materials tab. Quantities, costs, and other values are tracked for assembly items.

– Serialized Assembly: Items assigned this item class are assembly items in that they are built from other inventory items, but they are also assigned a serial number at the time of assembly, and this number must be specified when the item is sold.

– Activity Item: Items assigned this item class are used on employee or vendor time tickets when recording time spent performing services for a customer, for a job, or for internal administrative work. Use activity items when you plan to bill customers for reimbursable payroll expenses in sales/invoicing.

– Charge Item: This item class is used for expenses recorded by an employee or vendor on expense tickets when expenses are incurred for a customer or job. Charge Items are also used to record administrative tasks within the company and employee out-of-pocket reimbursable expenses. Use charge items when you plan to bill customers for reimbursable expenses recorded on expense tickets in

Sales /Invoicing

For each Item Class, select the most common General Ledger accounts to be used in the sale and purchase of inventory items. Some fields are dimmed and inaccessible for certain item classes. For example, you cannot enter General Ledger accounts for Description only items because no accounting is tracked for this item class.

GL Sales/Inc: Enter the income account to be credited for the sales price amount when the item is sold.

GL Invtry/Wage: Enter the inventory account to be debited for the purchase cost when you purchase stock items or build assembly items. This account will be credited for the compound cost when the item is sold.

For non-stock, service and labor items, enter the salary or wage expense account or other expense account to be debited when the item is purchased. This account will be credited for the expenses when the item is sold. The sale of non-stock, service, and labor items will then reclassify the expense associated with the item from the original  GL Salary/Wage or other expense account to the GL Cost of Sales account.

GL Cost Sales: Enter the cost of goods sold account that will be debited for the cost when the item is sold.

Costing: Enter the costing method for stock and assembly items. Peachtree tracks the cost of goods sold based on the costing method chosen for stock and assembly items only.


Enter the account to which customer freight charges will be posted.


On the Taxes/Shipping tab, define whether your tax types are taxable or tax exempt. In the Ship Methods list, enter the different shipping methods that you will select from when you enter transactions for your customers and vendors.


Peachtree allows you to customize up to five additional fields for maintaining information about your inventory items.


On the Price Levels tab you may set up price levels according to your needs. Price levels provide a way for you to charge different prices to different customers. For instance, you can assign a price level to each customer to ensure accurate pricing. There are ten price levels that can be set up with any description you need. For Price level 1, you can choose to have the program calculate the price based on the last cost recorded. In addition, for Price Levels 2 through 10, you can base the calculation on Price Level 1.

Level Name: Enter a description of up to 14 characters that describes the pricing; for example, Distributor, Warehouse, Retail.

Default Calculation: The text shown in this box is the result of what has been chosen in the Edit option.

Edit: Click the Edit button to open the Default Price Level Calculation window. Here, you can set up the options for calculating sales prices.

Use: The options found in this field will differ based on which Price Level you are editing.

Price Level 1: Not available when calculating Price Level 1, this option can be chosen for Price Level 2 through Price Level 10. Use it when you want to base the calculation on the price used for Price Level 1.

– Last Cost: Used for any level, choose this option to base the calculation on the last cost for the item.

– No Calculation: Select this option if you prefer to enter a specific price rather than use a calculation. When chosen, the next three fields become unavailable for use.

– And: Select to increase or decrease the amount by either a percent or an amount. Then, indicate the amount or percent in the following field.

– Round Price: You have three options for rounding the sales price.

No Rounding: If you choose this option, the prices will be set exactly as calculated.

– Specific Cent: Choose this option to indicate the exact cent you want the price to round up to. Another field appears that allows you to enter the cent amount.

– Next Dollar: Select this option and the program will round the price up to the next dollar.
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