 Note that this cost of goods sold is being recorded on an accrual basis because no cat, we didn't actually pay for the inventory at this point in time. When we paid for the inventory in a full service perpetual inventory system, we put the inventory on the books as an asset, and then we expense it when we consume the asset to generate revenue. That's the issue with inventory because that becomes difficult because if we're trying to automate everything, we're trying to, we're trying to do everything from a cashed based system for the most part because that's the easiest thing to draw in to feed into our system. So we're going to have to deal with this perpetual inventory system possibly in a little bit different way when we go to our Shopify store. All right, if I go to the tab to the left, my voice is going, don't go voice. I need, I need some coffee. Hold on. Okay. So any case. So there's the 9,900 in inventory assets. If I go to my report over here, then and run this, now it's tracking my units of products that I have left. And it's given me the dollar amount of those units. We need to be tracking both of those things. Obviously knowing the quantity of units is quite important to logistically be able to fulfill any orders that might come in in the future. But we also need to know the dollar amount, which usually is going to need some kind of flow assumption, FIFO, LIFO, when we're using a normal kind of inventory system like this with, with products, which we assume to be all similar in nature in order to, to do our financial statements. And we're going to need those possibly for taxes. Now, if I compare that to Shopify, if I look at this whole process and say, well, what, what happens if I'm actually facilitating the sale on the Shopify or EEC or some other, you know, platform, Amazon or whatever we're doing, then obviously this platform is the platform that's going to have the website that facilitates the sale. So instead of someone coming up to us with products in at a cash register, they're going on to the point of our online presence with their goods that they virtually put into their, their shopping cart, right? And then they're going to, and then they're going to check it out on the shopping cart. So that means that the transactions that are taking place in an e-commerce situation are being facilitated by, of course, the third party platform in some way, shape, or form. And that's going to have to track the inventory to some degree. So we're probably going to be putting our inventory units, but remember, that's going to help us. So whenever I sell inventory on a, on a Shopify platform, for example, it would likely reduce the units of inventory for us, which is great for logistical purposes to make sure that we have an appropriate amount of inventory to meet the sales that we expect to happen in the future. But from our financial side, the question is, well, now I've got to pull this into the financial statements and there's an added complexity with that inventory versus cost of goods sold and converting units to dollar amount problem when we go to the finance side. So that's one thing that we're going to have to deal with now. How could we possibly deal with that? Well, I could say every sales transaction that happens on the Shopify level, let's try to mirror that as if it happened in a point of sale system and try to pull each transaction into QuickBooks a entering it into QuickBooks as a sales receipt and then try to try to track the inventory from Shopify into QuickBooks. Most times people don't recommend that, especially for smaller businesses, oftentimes are midsize businesses before a few different reasons. One is that it's time consuming because then you've got you've got to enter the products over here if you're trying to pull in the inventory information with it and the products have to line up perfectly. So you pull in the information, it could line up to a product. The other reason is it's a bit redundant because you already have the sale information took place over here. So if you pull all that information into QuickBooks, it might not, you might overload QuickBooks because again, the Shopify store is usually geared towards quantity. You want to have a lot of sales and if you pull in a whole bunch of sales of small items like $5 items and you have a million sales, it's going to start to slow down over time your QuickBooks system. So generally the idea is that we don't want to pull over the whole information oftentimes, but rather try to try to sum up the information that we're going to be pulling in from Shopify into QuickBooks. And that's why we're going to break it down from instead of a perpetual inventory system, more likely to a periodic inventory system so that we can pull in that information possibly more efficiently. Also on the sale side, the sale side already happened over here and there's also going to be costs related to a Shopify situation that are going to be charged for the service of Shopify and they might handle other stuff like refunds and stuff like that and possibly you can have to handle taxes in some way. So that stuff on the income side, we're going to have to deal with when we pull that information into our QuickBooks system. Not only the stuff in other words that would happen when we facilitate a sale if it was an on-ground situation, but the added fees that we have to deal with for the services being provided by the online platforms and possibly the payment processors. All right, so the other thing that we have to deal with is possibly sales tax and sales tax is a whole nother kind of topic that gets into the weeds in a Shopify thing, but for now let's just think about how sales tax generally works. So I'm just going to turn on a generic sales tax down here. So we're going to go to our taxes down below and we're going to say sales tax and I'm going to use automatic sales tax. Now this is great if you're having on some it's going to be picking my location here. I'm just going to turn this on fairly quickly just to get an idea of it. Tell us more about you. So do you need to collect sales tax outside of California? If it was an on-ground store, I'm going to say no, which obviously simplifies situations when you're in an e-commerce situation and you got to that's a question. Am I subject to sales tax in what states and who's going to be collecting the sales tax and whatnot? But let's just see how the process works here. I'm not going to create an invoice and this is the sales tax that's going to be populated based on my location that I put into the system. I'm going to say frequency, let's say we pay it monthly. Okay, so that's just to turn on the sales tax. We might talk more about sales tax in a future presentation. Right now I just want to see how that fits into a normal sales transaction if you had it running within an on-ground system. So if I go into the plus button again and let's make another sales receipt, but this time we've got the sales tax running. Let's say this is going to go for customer number two, generic customer number two and the date 1216 let's say and down here we're going to say that the item, let's say we had item product number three and let's say we sold three of those and it's subject to sales tax. I'm going to check it off that it's subject to sales tax. I should go into the items and say that it's subject to sales tax but product number one let's say two that are subject and it's subject to sales tax. So now the system is calculating sales tax on it. So what does that do to our sales receipts transaction? Well it's a sales receipt so it's still going to be increasing the payment to deposit the clearing account for the full amount the $1,2004.50 it's going to increase revenue driven by the items for the amount that we charged only $1,100 not including the sales tax. The difference, the sales tax is going to go on to the balance sheet account of sales tax payable which will then pay at a future point in time and then of course the inventory is still going down not by the amounts on the sales receipt but driven by the items which knows that amount.