 Then the next step is that we're going to have to set up our items to calculate the sales tax, because now if I hit the plus button, when I make an invoice or a sales receipt, invoice a cruel method, sales receipt, if we're on a cash based method, then the system can only apply the tax by the item. So all we have now are these generic items that were imposed or created by QuickBooks. Let's make up our own items. So where are those liquidated? I'm going to say no, don't save that. QuickBooks, if you would, open up the handbookie and those are under the sales on the left hand side. All the way to the right, you got your product, you got your services. If you're on the sample company, it's in the get paid pay area. And then you're down in the products and services. And so then in here, I'm going to close up the handbookie. So there's our items, the generic ones they set up to set up a new item. We can go to new on the upper right. I'm going to set up an inventory item because it's the most complex one and the one most likely subject to sales tax, but you could have a non inventory item. That means you're not tracking the inventory in the system. So it's an inventory thing, but you're tracking it not in the system, possibly tracking it using a periodic system. Service would indicate that it's a service item. No inventory involved. Let's go with inventory because it's the most complex. I'm just going to call this inventory and inventory sales tax. What is this inventory sales tax? For my example, I'm not going to do an SKU. You can do a picture of it. I'm not going to put it into a category. Initial quantity on hand zero. And then, well, let's let's put a quantity on hand. Let's actually put five on hand. That's going to make a journal entry, putting some of them on hand, which will increase inventory. The other side going to like opening balance equity, most likely. And let's put this back in 2022 and January of it, let's say, and reorder point at zero. Okay, so then inventory. That's good description. Okay, the sales price. Let's say we sell them for 125 sale of product. That's going to be the revenue account when we sell it looks good. Here's the taxable item. So it says here it's taxable. You've got a couple ways that it can determine whether it's taxable based on what you're selling or you can go down here and it just says it's taxable based on location. It's kind of a generic taxable item. So I'll pick that. That's just going to subject it to the sales tax purchase information. Boom. I'm going to say then we buy them for let's say $50 cost of goods sold is the expense account, expense when we sell it. I'm not going to have any preferred vendor. Let's save it and close it. Okay, so there's one other thing we got to think about and that's going to be the customer. If there's any exceptions, but before we do, this will be the enough to get us generally going. So if I go on over and I say, let's just make an invoice and say that it's going to be for customer. Let's make it customer to I'll just make up another customer very creatively named customer. If I do say so myself, my creativity is astounding astounding. So let's make this let's make this as of 06 1522, let's say, and then I'm going to say my inventory item is inventory sales tax boom. So there it is. So now the tax has been applied. And then down here it applies the tax based on the location I got I got to click off on it so then it does it based on the location. Now we can also then I can apply my generic 5% that I set up here generic five just to make it a generic problem. And you can also change the math down here if you needed to, like if you wanted to make it a generic problem or the math isn't right for whatever reasons you can override it by going into here and then change it. You just have to give it a reason and it'll do that. So that's cool. And so that is that now before I record it, there's one other thing that could throw off the whole system. And that would be if the customer for whatever reason is not subject to sales tax. So the item would indicate it's subject to sales tax, but the customer is not or possibly the customer subject to a different location kind of sales tax. And so then you can set that up when you set the customer up. So let's check that out. I'm going to close this and go back into the sales center sales center. Let's go into the customers. And there's customer number two that we set up customer number two. And let's go ahead and edit customer numero dose and down below we've got the taxing information. So right here it says this customer's tax exempt. So you can make a tax exempt or the sales tax rate. Again, you can assign one of the two, you know, I've got these two rates that we assigned. So we could make this customer always be picking up the 5% instead of it being based on location here, or we can say that they're not subject to sales tax possibly for one of the reasons listed below. Let's say they're a charitable organization, for example, and then say save it. And then I can go back into making an invoice for customer number two customer number two. And then I can say that this is going to be inventory sales tax item. It's still subject to tax over here, but no tax is being calculated. So if you see that happening, you're like what in the world, man, I've got the tax up here. Nothing's calculated down here. Why possibly your customer is exempt from taxes, even though the item says it's taxable. Okay, so let's go back to what it was before closing that back out closing that back out. And then I'm going to say edit this and say you're not special customer to you're not special. You're charities a scam. I'm taxing you like everyone else. We're going to say they're subject to tax, just like everyone else spent all that money, that turtle money on your vacation. I saw that.