UNDERSTANDING THE SAGE 50 (PEACH TREE) MENUS

LEARNING HOW TO SET UP CHARTS OF ACCOUNTS IN PEACH TREE (SAGE 50)

BELOW IS THE DIAGRAMMATIC REPRESENTATION

THE DIAGRAM ABOVE IS EXPLAINED THUS:

The chart of accounts of an organization is the various ledgers created to capture accounting transactions as it relates to assets, liabilities, incomes, expenses and equity.   It enables easy classification of transactions under accounting heads to help in proper reporting.  An example of setting up a chart of accounts is creating an expense account called Diesel Account for capturing all diesel expenses of a company.

The process is below:                     

1.    CLICK Maintain Menu

2.    CHOOSE Chart of Accounts

3.    TYPE the Account ID (You can use the drop-down list to help create number for your account type: For instance, Account ID for expenses is from 6000-7100)

4.    TYPE the Description of the account (That is the name your ledger account for example Diesel Expenses)

5.    Choose the Account Type { A list of Account Type drop-down list opens){choose expenses if you are creating an expenses account}

6.    Click SAVE  to save the account record OR

7.    Click SAVE and NEW to save the current account and start a new one.

 EXPLANATION OF THE ACCOUNT TYPE AND ALSO THE TYPE OF LEDGER ACCOUNTS THAT CAN BE CREATED

ACCOUNT TYPE	LEDGER ACCOUNT
ACCOUNTS PAYABLE	VENDORS ACCOUNT
ACCOUNTS RECEIVABLE	FOR CUSTOMERS ACCOUNT
ACCUMULATED DEPRECIATION	FOR ACCUMULATED DEPRECIATION
CASH	FOR BANK, PETTY CASH, CASH BOOK ACCOUNTS
COST OF SALES	FOR PURCHASES ACCOUNT
EQUITY-DOESN’T CLOSE	FOR EQUITY CAPITAL
EQUITY-GETS CLOSED	FOR CAPITAL ACCOUNTS OF SOLE TRADERS, PARTNERSHIPS
EQUITY-RETAINED EARNINGS	FOR RETAINED EARNINGS
EXPENSES	FOR GENERAL EXPENSES OF THE COMPANY
FIXED ASSETS	FOR MOTOR VEHICLES, FURNITURE AND FITTINGS, LAND AND BUILDING, PLANT AND MACHINERY, OFFICE EQUIPMENT AND OTHER LONG TERM ASSETS ACCOUNTS
INCOME	FOR SALES AND OTHER INCOMES ACCOUNT
INVENTORY	FOR STOCK ITEM
LONG TERM LIABILITIES	FOR LONG TERM LOANS
OTHER ASSETS	FOR OTHER ASSETS
OTHER CURRENT ASSETS	FOR PREPAYMENT
OTHER CURRENT LIABILITIES	FOR ACCRUALS AND OTHER OUTSTANDINGS

HOW TO ENTER GENERAL LEDGER ACCOUNTS BEGINNING BALANCES

This is the Opening balances of the account from the previous accounting period.  For example, the Opening Balance of debtor at the beginning of an accounting period.

See process below:

1.    Click Maintain menu

2.    Select charts of accounts

3.    Select the Beginning Balances Button

4.    Select the period in which you want to enter the beginning balance

5.    Click  to any of the white cells in the grid to add an amount

6.    Select OK.