Setting Up Accounts Payable

Accounts Payable monitors the products received from vendors and the money paid to vendors. You can set up payment terms, aging guidelines, and more for each vendor. Information about your vendors is entered through the Maintain Vendors window. Purchases entered in Accounts Payable can update the quantities on hand in Inventory and the costs tracked in Job Cost. Purchase expenses applied to a job are available in Accounts Receivable as reimbursable expenses that can be billed on a sales invoice. When transactions are posted in Accounts Payable, the journals are updated. The journals in turn update the General Ledger. The interaction between Accounts Payable and the other sections in Peachtree is illustrated below:


To access the default information window for vendors, select Default Information, Vendors from the Maintain menu.

Vendor Defaults Window

The Vendor Defaults window is used to enter basic information that applies to most of your vendors and purchase transactions. Each tab is described below:





When you open the Vendor Defaults window, the Payment Terms tab appears. On this tab are the Standard Terms section and the GL Link Accounts section. You can set up standard payment terms that apply to the majority of the invoices that you receive from your vendors. You also assign the General Ledger purchases discount account number, any discount allowances, and a standard credit limit for all vendors. When you change the payment terms on this tab, the default terms for vendors that use standard terms change automatically. Fields of interest are described below:


In the Standard Terms section, you select the terms method most often assigned to you by your vendors. You will specify the following: the number of days extended to you for paying your invoices, any discounts, and the amount of your standard credit limit. Standard Terms are the default terms that apply to vendors. You can change standard terms for each vendor when you set up the vendor in the Maintain Vendors window.


Select the Account Aging tab to enter account aging information. You select whether your purchase invoices/vendor bills should be aged by invoice date or due date, and you can specify the frequency that your payables age. This information is reflected on the Aged Payables report and in the Payment Manager.



Each invoice/bill and vendor balance appears on your aging report with the number of days past due.


The information in this section determines the aging of your invoices on the Aged Payables report.


Peachtree allows you to customize up to five additional fields for maintaining information on your vendors. Enter any field labels here.


The settings on the 1099 Settings tab allow you to define the way Peachtree tracks and reports payments made to 1099 vendors. For instance, the payments you make to an independent contractor for services rendered should be reported as 1099 earnings. If you make a payment to the same contractor to reimburse for materials, the payment should not be reported as 1099 earnings. Fields of interest are described below:

• 1099 Settings: Choose the appropriate option for each account from the list below. Check with your accountant for the appropriate option, which depends on the type of 1099 you need to produce.

• Reset Default: Click this button to return all accounts to the default setting of Box 1 or Box 7.
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