 QuickBooks Online 2023. Record receipt of inventory with bill linked to purchase order or PO form. Get ready to start moving on up with QuickBooks Online 2023. Here we are in our Get Great Guitars practice file. We started up in a prior presentation using the 30 day free trial. We also have opened the Free QuickBooks Online Sample Company. If you want the two open at the same time we suggest using the incognito window or another browser. 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. You can open the incognito window if using Google Chrome by selecting the three dots in the browser and incognito window. Then type into the search engine QuickBooks Online Test Drive. We're going to use the sample company to compare the accounting view the view that get great guitars is in and the business view the view that the sample company is in. You can toggle between the two by selecting the cog up top and the change of the view down below. We're going to now open some tabs to put reports in right click it on the tab to duplicate it right click it on the tab to duplicate it and then go back to the tab to the middle and we're going to go down to the reports on the left. Op up one of the favorites that's open up open up the balance sheet noting that if you're in the business view by the way the reports are in the business overview on the left and then the reports. And then we're going to go to the tab to the right up top and go down to the reports again. This time opening the profit and loss the P and the L the income statement. Let's close the hand boogie and change that range. 0 1 0 1 2 3 2 let's go to 0 2 28 2 3. I'm going to do a month by month comparison on the income statement to see the two months inside by side run it. There's Jan there's Feb there's the tote for Jan and Feb back to the middle tab and close the boogie scrolling up change that range from 0 1 0 1 2 3 tab 0 2 28 2 3 and run it to refresh it. That's the setup process that we do every time. So last time or in a prior presentation that we entered purchase orders now we're going to be going in and receiving the inventory from the purchase order the request form quick recap on the process. Looking at a flow chart the purchase order is part of the vendor cycle or expense or purchasing cycle where at the end of the day we expect money to come out of the checking account for the purchase of goods and services in this case specifically for the purchase of inventory. So we've got inventory turned on we're tracking inventory on a perpetual method. The purchase order is a request for inventory no impact on the actual financial statements from it because we have not actually received the inventory and we have not paid for it which is a little bit different than you might expect if you've never dealt with a purchase order and you just make payments for stuff online for example from Amazon where you pay at the point that you make the request here. No payment has been made no financial transaction but we need to track it so that when we do pay it we can then record the information from the purchase order on either a bill type of form or a check or expense type of form. So we are imagining now that the guitars the inventory that we purchased is now getting shipped to us we're gonna open up the box that has our inventory the guitars in it along with a bill. Note that the bill that we open might say invoice on it because the person that we purchased from the vendor to us if they're using QuickBooks would be invoicing us. So we can use bill invoice interchangeably outside of QuickBooks inside of QuickBooks. We have to think about how we're gonna deal with that bill or invoice. Are we gonna enter it into the system with a bill or we can just pay the bill or invoice with a check form. We paid the bill or invoice with a check form in the prior month. Now we're gonna enter the bill as a bill into the system. Remember those things are really different. The physical bill is not the same does not mean necessarily that we're gonna enter a bill form into the system because we could just pay it with a check form or an expense form. But this time we're all gonna do the bill and we're gonna enter the bill into the system which will increase the inventory dollar amount and units increase accounts payable. So let's do it. Let's just go to the first tab and just a quick recap on where the purchase orders are at if we were then to try to pay them. We could say, okay, purchase orders are gonna be in the expenses area. We can look at it by vendor. So if I go to the vendors they've got this nice little thing up top where it has the purchase order. So if I select that one then it gives us the item or the vendor which is vendor that has the purchase order. So then over here we can send it or we can copy it to a bill. So that's gonna be basically the next step is we can basically copy it to a bill here. So if you were in the other view by the way the business view then it would be in the get paid and paid area and that's gonna be in the vendors that's where we're at. You also can look for the purchase orders by looking at if I open, let's open the little burger the little book burger back to the vendors. Let's open the big burger and expenses and then I can go to the expenses tab is what I'm trying to get to. And then I can sort by the filter drop down here possibly by just the purchase orders and then maybe the open purchase orders and boom. So there we have it here. If you were in the business view by the way it would be a little different. It would be on the bookkeeping and then transactions up top and expenses. So there it is there. Okay, so then I or I so now I can hit this drop down and create a bill because now we're imagining that we're gonna make the bill entering it into the system or I can hit the plus button up top and just make a bill this way. And if I type in the vendor, which is vendor that was the new vendor, vendor, I can type that in. So there it is over here. So then I can add it and say add that poor five or and then we could say, okay, we could say lots of stuff but I'll say, okay. And then I'm gonna say 0223 and so 30 day net 30 for when the bill is gonna be due so I'll just keep that. And then down here, we don't have a category because we're not just assigning it to an expense but the item pulled over and it pulls over properly because this now if I was to type in like the SQ you'll recall when we had the billable items I had that kind of issue with it having the cost versus the sales price. This is the cost. So it links over beautifully from the purchase order which also has the cost to the bill which has the cost, not the sales price. You've got this nice little link that shows that it is a link, it is indeed linked. And so we can add a memo, we can add the attachments, we can cancel, we can clear, we can make recurring and what's this gonna do? It's a bill, that means it's gonna increase the accounts payable. The other side's gonna go to not just an expense category but driven by the item to the inventory category and the units of inventory are going to be increasing at this point by the 20 units that we're purchasing. Let's check it out, let's save it and close it and see if that is indeed what happens or if I'm lying or if I'm just not right cause I'm just, I'm just wrong. Sometimes that happens, it's quite rare, it's quite rare but whatever and then we'll go into the inventory. And so then if I scroll down on the inventory there's the bill for the new vendor Fender. If I go into it, there's the bill. And then I'm closing that back out, scrolling up to the top and then the other side's going into, did I just look at the accounts payable? A to the P, AP accounts payable is B to the N. The A to the P is B to the N, BN AP accounts payable is BN, is BN, how you BN? I'm BN, I'm MUI BN. Why settle for just BN when you can be MUI BN? Okay, I'm distracted. I'm gonna right click on this tab to the right now and just to show that that accounts payable we have a sub ledger for as well which is down here on the reports. Closing out the hamburger, if we scroll down to what you owe then we can go to the accounts payable aging, let's just do the summary, breaking out who owes us money, let's do it from 0 to 28 to three, run it. So there's the new vendor Fender owing us to 3,360 which is now over here, the 3,360. Also we can track that if I go to the tab to the left and I can see in the filter options that the purchase order is now closed. So if I go into the purchase order and I look for the closed purchase orders then the new vendor Fender is here and if I go into it, then I can see the link to the bill. So I got these nice little links and there's the bill so it could take us on over to the bill. Notice that on, and so there the bill has been linked here to the purchase order. Okay, so that's nice. And so I'm gonna close that back out and then I can also while I'm over here on the expenses side of things, I can filter by the bill if I want to. That's in place now, the bill. Now I want the open bills. Open bill, boom, there's the open bill. I can schedule the payment. I can mark as paid, edit review, I can delete and so on. And of course I can track that by vendor too in the expenses category, vendor. And then I want the open bills. I can do that up here and just check out the vendors. Now it's vendor that has one open bill. I can go into it and now I see the detail for vendor, the new vendor. So I can go into the purchase order and say there's the purchase order. Now closed, you've got the link. Looks movie B to the end and then the purchase order. And then you've got vendor, vendor, the new vendor and it's linked up here and you've got the link to the purchase order there. So that looks good. Also, we have the inventory. Let's not forget the inventory. The inventory up top is here. We have the sub ledger tracking by unit of inventory. So I'm going to go to the tab to the right and let's just use this tab. I'm going to open it, go to the reports and type in inventory, valuation summary. Cause this has effects as well that are important. 22823. Okay. And so there is our 20 units of the new. I think that's what we got the squires, the 9623 is the total, which ties out to the total here on the inventory. Okay, let us check the trustee trial balance to see where we stand. Open up the bugger, the ham buggy and then reports. I'm going to type in trustee trial balance. We're going to put these balances on trial and we're going to close up the hamburger and go from 010123 to 0222. I hope it's not a special counsel trial. Those guys are crooked as all any case. This is going to be a fair trial balance. See where we stand on two legs here. We've got the two legs. And if your numbers stand up to these numbers cause they're the same, great. If not try to expand the range and see if it's a date issue and you can drill down and then fix any date issues. And then we're going to do a transaction detail report after the second month of data input to further drill down on any differences.