 QuickBooks Desktop 2023. Purchase order adding new items. Let's do it within 2-its QuickBooks Desktop 2023. Support Accounting Instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course. Each course then organized in a logical reasonable fashion making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again click the link below for a free month membership to our website and all the content on it. Here we are in QuickBooks Desktop. Get great guitars, practice file. We started up in a prior presentation going through the setup process. We do every time maximize in the home page to the gray area noting in the view dropdown. We got the hide icon bar and open windows list checked off open windows open on the left hand side. We're not going to be opening up the reports because this time we're going to be entering a purchase order which as we saw in the first month of data input has no impact on the financial statements. So quick recap of the purchase order we're dealing with inventory here. Remember that when dealing with inventory you might have a periodic inventory system or a perpetual inventory system. If you have a periodic inventory system you might be tracking inventory outside of QuickBooks on something like Excel and then adjusting it periodically at the end of the night, week or month. If you have a perpetual inventory system return on the inventory in QuickBooks which will be indicated by this line item up top. It's found in the edit dropdown preferences. We turned on the inventory by going to the inventory items here items in inventory and then turning on inventory which will show us this top line item. And then also note that the purchase order might not always be used if you're in a situation for example which is similar to a situation when you buy stuff personally online from like Amazon. Then you pay for the stuff before you get the stuff. In that case you would have a financial transaction but if you're able to have more influence and able to request the stuff with a purchase order without paying for it. They ship it to you and then you enter the bill once received. That's when you would be using the purchase order. That's what we are imagining here. We're going to enter the purchase order. We're going to add a new item, a new vendor and new customer all as we do the purchase order. So we'll go into it here. The new vendor is going to be Fender. So we're imagining that a customer comes into us and says I want this Fender guitar. We're going to say we've never dealt with Fender before. Maybe we can add them as a new vendor. So we're going to go through that request process. So we got a customer that came in and we're going to go to the new vendor for them to get the guitar they want. So Fender is the new vendor. I'm just going to keep saying that because it sounds cool. Fender is the new vendor. We're going to do a quick add with them. Do a quick add with the new vendor and then we'll tap through this. We don't have any. Let's go with the date. What's the date? The date's going to be let's say it's 2 9 23 0 2 0 9 23 on the date. Number looks good. Vendor shipping to OK. Now we need a new item down here because we never bought a guitar from the new vendor Fender. You'll recall that we normally set up our items in the lists and items here. But we're not going to do it that way. We're just going to do it as on the fly as we go as they say hit the drop down. We're going to say new item. It's going to be an inventory item. So that's what we want. I'm just going to call it an SG tab tab tab and I'm going to call it a squire. That's a kind of a guitar. I think I don't know. So squire we're going to say we bought it. We're just making this up 168. You can I'm not saying this is the actual price or anything of these guitars. And this is the preferred vendor is going to be Fender. And then when we sell it this is what's going to be populating on the sales forms. Notice we are on the purchase side. Therefore we're going to be having the cost being used to populate when we get to the sales side with an invoice or sales receipt. That's when this side will populate at the 244 we're going to say it is subject to tax. That means sales tax. And the account we want is to go to the sales account an income account when we create an invoice or sales receipt. The inventory account will also be impacted on the purchasing side when we buy it not with a purchase order but with the bill or check. And then it'll go down when we sell it with an invoice or sales receipt. We don't have anything on hand at this point. I'll just keep the current date that this is as of the date that we're entering. And I'll just keep that there. So we'll say OK. And there's our squire guitar. So how many do we want. We're going to say let's say 20. I'm going to say 20 of them. So and then I bought them specifically for the customer of new music stuff. So I'm going to add the customer once again as we go on the fly as we're doing the data input tab quick add I'm just going to do a quick add for new music stuff. So the scenario new music stuff a customer came to us asking for 20 squire guitars which are usually given or provided by the the vendor the vendor. We didn't have Fender the vendor before we set them up. So we then went to the vendor Fender asking them with this purchase order. That's what this is doing for these 20 guitars note that Fender the new vendor doesn't need to know about the customer here. But we want to add the customer to the purchase order so that when we go through the process when we get the guitars we can turn around and make an invoice and build the client and customer for it. Now what's this going to do when we record it. Nothing because we didn't pay for the guitars and we didn't receive the guitars yet. But we do want to track it so that when we do get the guitars we could tie it out to the purchase order. So let's say save it and close it. And then we expect in the future notice in this list in the items list we now got the squire here set up. If I go to the homepage in the future we're going to receive. Imagine we're going to receive the guitars and then there's going to be a bill in the guitars in the box of the guitars. Remember that the bill that we get in the box of guitars might say invoice because if they're using QuickBooks if Fender our vendor is using QuickBooks they would have created an invoice. In order to give us the bill. So note that the forms within the accounting system are a little bit different than the actual terms that you might use in real life. Meaning if they sent us the guitars with a bill in it it doesn't necessarily mean that I'm going to enter that into the system with a bill form. Because as we saw in week one or month one we could just write a check for it right we could take their bill and just pay it off when we get it. So the bill the bill that we get from them this time however we will enter as an invoice or bill when we get it and will populate that bill with the purchase order. So we can see that here if I was to type in Fender the new vendor I've got this connection to the purchase order we can create the purchase order in essence or create the bill in essence from the purchase order. I'm going to say no not yet we'll do that later close this out and if we wanted to track the purchase order we could do that by going to the vendor center here or we can go to the vendor center up draw up top which is what I typically like to do. And then I could go into my vendor side of things we're looking for the new vendor Fender. And if I look at all transactions and all transactions here there's the purchase order. And then I could also sort my purchase orders by going to the transactions tab purchase order. And then I could see all purchase orders or possibly just the open purchase orders. There's the open purchase order if I go into that there's our purchase order. So in future presentations will hopefully receive the guitars and again no change to the reports so we're not going to go to the reports and kind of review it. We're just going to be tracking that purchase order which will come into play in the future.