Now we will learn how to make a purchase order:

1^st step is as usual you will execute the peachtree software and following window will appear on your computer screen.

When you’re making the purchase order you’ve to be sure that your charts of accounts, customers, vendors and inventory items are maintained. If you don’t know how to maintain charts of accounts, customers, vendors or inventory items you can visit my following blog links, they will guide you in maintaining these processes:

1.       Charts of accounts: http://studytree.blogspot.com/2013/03/how-we-can-maintain-charts-of-accounts.html.

2.       Customers: http://studytree.blogspot.com/2013/04/how-to-maintain-customers-prospects.html.

3.       Vendors: http://studytree.blogspot.com/2013/04/how-to-maintain-enter-edit-or-amend.html.

4.       Inventory Items: http://studytree.blogspot.com/2013/04/how-to-maintain-inventory-items-in.html.

After you’re done with the necessary steps mentioned above now you can make the purchase order.

You can go to the purchase order window by different methods:

1.       By clicking on the task button:

2.       By clicking on the navigation aid button and from the 2^nd column you can click on the purchase order option:

When you will click on the option of the purchase order you will see the following window on your computer screen:

Now this window contains different boxes whose explanation is very important to describe if you are making a purchase order:

1.       Vendor ID: in this you will enter the id of your desired vendor to whom you’re writing this purchase order.

2.       Date: this is the date on which you’re making this purchase order.

3.       Good Thru: This is the date by which you want the goods delivered to you.

4.       PO No: It is very important that you write Purchase Order Number so the software had a record of your purchase order that it has been made.

The other boxes can be explained with the help of following image:

Here an example of purchase order is given. You can see that:

5.       Terms: This column contains statement “2% 10.Net 30 Days” this means that if you will pay the amount to your vendors within 10 days you will avail 2% discount.

6.       Discount Amount: This is the total amount of discount that you will avail.

7.       Ship Via: N/A.

8.       A/P Account: Accounts payable account is selected automatically because you are purchasing something on credit.

9.       Quantity: How much amount of unites you want to purchase.

10.   Receive: The amount that you’ve already received from your vendor.

11.   Item: The code that you’ve given to your item.

12.   Description: The nature of the product.

13.   GL Account: The inventory account is already selected.

14.   Unit Price: The Price of 1 Mobile Phone.

15.   Amount: The total amount of mobile phones.

After this you can save the purchase order by clicking on the save button on the top of this window or by clicking “Alt+S”.

The next step is “Purchase Received Inventory”. You can open it by clicking on the task button and clicking on it:

By clicking on it the following window will appear on your computer screen:

From here you will click on the “look up” button and you will click on the desired vendor eg:

You will see that the tab will be changed from “Apply to Purchases” To “Apply to Purchase Order No:”

And from the drop down button you will select the purchase order number:

From here you can see how much good are delivered to you and how much are not. You’re also required to write the invoice number on the top.

You can also look at the journal entry relating to this purchase order just by clicking on the “Journal” button that is avail able on the top of the window.