 The next method of course would be the perpetual inventory system. In a perpetual inventory system, on the vendor side, I'd like to use the form, which would be an expense form or a bill form to actually record not only the dollar amount, but also count the items, which means I can't wait till it clears the bank feeds. I have to actually enter a check or expense or bill form, which has the capacity to add the item. And then when I sell the item, I can't use a deposit form, but have to use an invoice or sales receipt in order for QuickBooks to track the decrease of inventory and cost to goods sold at the point of sale, as opposed to us having to do that adjusting entry periodically at the end of the week, day or month. All right, so to see this, let's set up an item. So I'm going to go, I'm going to go to that. We could set up the item like as we do a data input for like an, like when we make the purchase with an expense form or possibly a purchase order. But I'm going to, I'm going to go to where the items are located at and that's under the sales area because it's kind of part of the sales cycle or you can think of it as kind of part of the sales cycle. It kind of fits in both, but that's where they house it over here. And then the products and services are on the right. If you're in the other view, the business view, they're in the get paid and pay area and then they get paid and paid area and then they're in the get paid products and services. And then I don't have any items yet set up. So I'm going to close this out and I can add an item that I'm going to be selling. I'm going to say it's an inventory item because that's going to be the one that we're going to have the tracking of inventory. If it was inventory that I'm not tracking in the system, I might call it a non, you know, a non inventory item. If it's a service item, no inventory related and it's a service service item. And then you can create bundles of them. We're going to go to the inventory, the most complex kind of item. And I'm just going to call it inventory item one. I'm going to copy it, SKU is like a shorthand kind of number for the inventory. You can add a picture of the inventory, which can be useful if you have multiple people recording the transactions. As they happen, a category. So if you were to categories like guitars versus drums that we sell, you know, if we had band equipment that we're selling. So I'm not going to add a category quantity on hand. Usually it'll start at zero because you're going to be purchasing the inventory starting at this point. But it's a required field, so I have to add the zero. I'm just going to start it like at the beginning of the period, the beginning of last year in my practice problem to make sure it's before the date. Another required field, which is kind of annoying reorder point. I'm just going to say zero, meaning it's going to give us a little warning when we get low on the inventory to buy more of them. Inventory asset account, that's going to be the asset account that will go up when we make a purchase, which we do with a bill form, expense form or check form. The description is what's going to be showing on that form. And then the sales price, this is what we sell them for, not what we purchase them for. So therefore that amount will be populated when we create an invoice or sales receipt, the sales documents, the sale of product. That's the income account that will be impacted when we make the sale, that'll be a sales receipt or invoice. The purchase information, that's going to be the description showing in a bill check or expense form. The cost, what we buy it for as opposed to what we sell them for, 30, and we're going to sell them for 60. Cost of goods sold is the expense account that will be impacted when we make the sale. Decreasing inventory, other side going to cost of goods sold. That'll happen with the sales forms, invoices, sales receipts and then preferred vendor. We could add a preferred vendor if we so choose down below. I'm not going to do that here, save it and close it. Notice if you have sales tax set up, then you can also use your items to kind of set up the sales tax per item as well. So if you have sales tax involved and you're doing a full service accounting system, you can turn on sales tax and then QuickBooks will help you to calculate the sales tax per item.