HARAMAYA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICES

DEPARTMENT OF ACCOUNTING AND FINANCE

Teaching material and training manual for the course

ACCOUNTING SOFTWARE APPLICATION
(AcFn 3182)

March,2020A
Table of contents
CHAPTER ONE.......................................................................................1
AN OVERVIEW OF THE ACCOUNTING INFORMAION SYSTEM...............1
Advantages of computerized Accounting system..................................................1
Selection of accounting software...........................................................................1
Introduction to peachtree.......................................................................................2
Steps to install peachtree.........................................................................................2
Flow of Accounting data...........................................................................................2
CHAPTER TWO........................................................................................3
CREATE A NEW COMPANY- COMPANY INFORMAION............................3
New company setup.................................................................................................3
set password.............................................................................................................8
Take Backup..............................................................................................................8
Restore(open backup)................................................................................................8
Edit company.............................................................................................................8
 Delete company.........................................................................................................9
CHAPETER THREE......................................................................................10
MAINTAIN ACCOUNTING DATA................................................................10
Chart of Accounts........................................................................................................10
setting value Added Tax(VAT) or Turn Over Tax(TOT)................................................13
Entering Beginning Balances ........................................................................................16
Customers setup...............................................................................................................19
vendors setup.....................................................................................................................21
Inventory Items setup.......................................................................................................22
Importing customers, Vendors and Inventories List from Excel.........................................23
CHAPETER FOUR..........................................................................................................................25
RECORDING BUSINESS TRANSACTIONS........................................................................................25
Steps to Record credit purchase Transaction.............................................................................25
Steps to record credit purchase transaction with Down payment............................................26
Steps to record credit purchase order transactions..................................................................28
Steps to Record Receipts of purchase order Transactions ........................................................29
steps to Record purchase Return Transactions..........................................................................30
CHAPTER ONE
AN OVERVIEW OF THE ACCOUNTING INFORMATION SYSTEM
Accounting Information system is a special filed accounting that concerns with design and
implementation of procedures for accumulation and reporting of financial data.
An Accounting information system summarize financial data about a business organization, and
organizes them into a useful manner for internal and external users; those demand Accounting
Information for different decision making purposes.
As business grow and become more complicated, the role of Accounting system software has
also grown. The need for total information system with Accounting as its base is more pressing.
For this reason, accountants must understand all phases of their company operations as well as
the developments in system design and technology.
Advantages of Computerized Accounting System
• Help the management to cope-up with increasing problem of paper handling.
speed-up the processes by eliminating some of the paper need through storage
of data.
• Reduce costs of producing transaction. This cost reduction results from:-
• Better efficiency over human processing
• Handling large volume of data, and
• Increased efficiency of tasks for both internal and external
auditors.

• Data handling:
• Better data manageability
• Better data storage, and
• Better data computation, retrieval and auditablity.
 • Apart from data manipulation, evaluation and control represent advantage of
computerized. The increased accuracy , efficiency ,time lines of reporting can be
most helpful in improving the decision making procedures of the management.

Selection of Accounting software

Once a users decides to computerized its Accounting system,the next step is to
Application, or the automate Accounting system. There three basic alternative to
accomplish this decision:-
• Turn-Key software packages: these are off-shelf canned software written
by computer manufactures or software development companies, sold on
open market to a broad range of users with similar requirement.
• Vendor supported: this is outsourcing/hiring an outside company to
handle all or part of company's data processing activities.
• Developing in-house: if canned software cannot fit its specific need, an
organization can develop its own unique and best fitting software within
the organization; and this software passes through system development
life cycle (SDLC).

Introduction to peachtree
peachtree is the most complete, powerful and fully integrated accounting system that combines
marketing and personal data to provide necessary information to effectively control business
operation. It is an Accounting Application for small &medium size business, which enable
accountants and mangers to automate and mange numerous accounting tasks, such as:
• Recording cash receipt & payment transaction.
• Recoding credit sales and purchases,
• Tracking payroll transaction,
• Preparing bank reconciliation,
• Preparing financial statements,
• Improving and manipulating spreadsheet files,
• Internal accounting review,
• Audit trail report, etc
Steps to Install peachtree Software
• Insert the peachtree compact disk in your CD ROM drive; the peachtree auto run
 window automatically appears ,Or
open the peachtree folder from your flash disk,
• Click on setup,
• Read the information &instruction on the window, and click Next,
• Accept the license agreement and click Next,
• Click yes, if the Microsoft window detects firewall,
• Click ok,when you have finished with any modification to your firewall,
• Click ok,when you have turned-off your antivirus software,
• Enter serial number found in the peachtree folder,
• stand alone or Network window appears, select No, and click Next,
• Select Yes to the question, will you store peachtree company data on this company?',
and click Yes,
• Click Yes, when the server of installation confirmation window appears, and click Next,
• Click Install, Finish,
• Go to peachree Help menu_peachtree Registration, and enter the serial number and
registration number from peachtree folder, use the serial number for Customer ID, to
use peachtree with no limit _OK
Flow of Accounting Data
Business transaction _ Objective material evidence _ Journal Entry_ Ledger_ Reports

CHAPTER TWO
CREAT A NEW COMPANY -COMPANY INFOMATION
Open 'Pecgtree Quantum 2010_ Accountants 'Edition' from start menu _ All program, or from
desktop shortcut, go to pechtree file menu _ Open company; you will get the following window:
New company setup
Peachtree QUANTUM
Accountants' Edition

Other Tasks:
• Explore a sample company
• Convert from another accounting