APPLY TO REVENUES (tab)

(Receipts Window continued)

Figure 14-1 - Choose Apply to Revenues "tab" above. If the "Apply to Invoices" tab is
dark type and "Apply to Revenues" is light-gray then click on "Apply to Revenues"
to activate it.

Quantity

Quantity is used with the "Item" text box or with the Unit Price. When we sell an
inventory "item" we have to tell how many (quantity) and the Unit Price. We use
this when we sell t-shirt art. An inventory item exists for each t-shirt size a
design is sold in. Mark the number of t-shirts of the same size and design in the
quantity box. Each size t-shirt requires its own line, even if it is of the same
design.

Quantity textbox - Receipts window

Figure 14-2 The art available on t-shirts is listed on the Item look-up list.
An ID for each size from small to 4xLarge is listed so we can track inventory
for each size for designs stocked as we log sales. Occasionally we will need
to add new inventory items.

Item

Clicking on this text box provides a look-up box icon (see fig. 4 above). Clicking
on the icon opens a look-up box with all our inventory items - t-shirt designs
with each size we sell. You may select the design and size sold from this list.
Selecting an inventory "Item" will fill in all the other needed information on
the Apply to Revenues line for this item. You may need to select the correct
Unit Price.

Description

Enter a short phrase or sentence describing the item or service sold. If it is a
grant or donation mention that and tell us if it is restricted and for what purpose.

GL Account

This account keeps track of the types of income we receive. The income account
selected from the Chart of Accounts depends on what we sold the customer or the
income category this income represents. For example, if we sell a t-shirt with
art on it the account this sale should be posted to is Sales/T-shirts/aot
(4010M01). If we print t-shirts for a customer the income from this activity
is posted to Sales/Printing (4020M03).

GL account - Receipts window

Figure 14-3 Clicking on the Look-Up Button of the "GL Account" text box opens
up the Chart of Accounts allowing you to select an "income account" that the
receipt should be posted to.

If it is a donation of cash from an individual it belongs in
Contributions/Unrestricted (4500M00). If it is from a funder's grant
check for a funded program it most likely belongs to Contributions/Restricted
(4510M00). Sales/T-shirts (4010M00) records the sales of blank t-shirts to
artists. Usually selecting the customer will fill in the correct number here
but occasionally, as for example, when the American Indian Center, which
usually buy screen printing from us (4020M03), buys a t-shirt with art on
it for a promotional give away (4010M01). What a customer usually does is
reflected in their set-up information. If they do something different you
must make the adjustment in the account to reflect that here.

Unit Price

Figure 14-4 The "Unit Price" list is entered when you add an inventory item. Each price applies to a different
situation. Two obvious examples are the retail and wholesale price for an item.

This entry is multiplied by the number you put in "Quantity" to arrive
at the total cost which it adds to the "Amount" field. We usually only use
it when we are entering an inventory item - for us that means t-shirt art.
We will use it more when we start entering screen printing orders by invoices
into Peachtree using the other tab, "Apply to Invoices", of this "Receipts"
window. When entering a t-shirt sale you should select a unit price that
allows for the correct retail total once the sales taxes (if any) and the
artist fee are added. In our example above the price of 11.79 plus $1.21
sales tax plus $2.00 artist fee equals our selling price of $15. Without
sales tax the Unit Price would be $13.

Tax (Sales Tax)

Figure 14-5 Tax refers to sales tax as we use this field.
It is set up in the add "Inventory Item" window
("Maintain" menu and click on "Inventory Items").

Figure 14-6 Pictured above, this sale of screen printing
to an exempt business shows no tax code in the "Sales Tax
Code" look-up box. As a result - there is no sales tax
charged on the $345 payment as shown in the Sales Tax text
box. This is so, even though the "Tax" column above is
tax enabled. The "Tax" column is only used to exempt a
single line item from sales tax or to apply a different
sales tax to a differently taxed item. We rarely need this.

It is the "Sales Tax Code" text box

in the lower part of the Receipts window that determines the sales tax status.

sales tax code lookup box

Figure 14-7 Clicking on the small square with
the eyeglass icon next to the "Sales Tax Code"
box opens the list of Sales Tax rates you
can apply to a sale. We have only one.

Peachtree Accounting tips

Figure 14-8 Here a sale of a t-shirt is recorded with the tax code entered in the "Sales Tax Code" box. Notice $2.41 is displayed in the "Sales Tax" amount box.

Use this "Sales Tax Code" look-up box to change the default sales
tax status for a customer on a receipt entry. To eliminate the sales tax
simply delete the sales tax code from the "Sale Tax Code" box leaving it empty.
When you next click on another active text box in the form the tax amount will
disappear from the "Sales Tax" amount text box.

The sale of blank t-shirts to artists requires the collection of state sales
tax unless the Artist has a state wholesalers license. Sales Tax is collected
from Printing sales to individuals and agencies without a State Sales Tax
Exemption (unless they are going to sell them again and pay the sales taxes
and have a retailers tax number). All T-shirt Art sold to individuals in
Illinois requires Illinois sales taxes be paid. If the sale of t-shirt art is over
the Internet and is from outside Illinois - we do not have to collect sales tax.
The customer information will usually fill in this entry correctly. For
those who are taxed a "1" (without the quotes) should appear in
the "Tax" field and an ILTC1 should appear in the "Sales Tax Code" box.
To add a different tax statis - click on the text box and select an option.

Amount

The "Amount" text box can be filled in manually with the total for an item.
This is the way we use it frequently for screen printing, grants and incomes
from non-inventoried items or services.
Financial Policy

This is an example of a non-inventoried sale of printing. The Description, GL Account of
the category of income and the amount is all that is needed when we are not counting inventory.

Job

We are not presently using the "Job" function of Peachtree. We are studying
how to use it to track foundation grants that are restricted.

Save

Figure 14-10 Post your input to Peachtree Accounting
ledgers by clicking save.

Once the cash receipt has been entered correctly, Press the "Save" button on
the top tool bar. Your receipt will be saved and a new form will appear to
allow you to enter additional cash receipt transactions.

Manual Contents Page

Uptown Multi-Cultural Art Center (UM-CAC). Click here for contact Info or to E-mail UM-CAC at umcac@art-teez.org click here. Ph.773/561-7676

SPW Art

T-shirts Sold