 QuickBooks Online 2024 entering purchase order or PO form and adding inventory items as we do. Get ready and some coffee because we're off to a quick start with QuickBooks Online 2024. Here we are in our Get Great Guitars 2024 QuickBooks Online Sample Company 5. We set up in a prior presentation opening up the major financial statement reports like we do every time the reports that are on the left we're in the favorites we're right clicking on the balance sheet so we can open it in a new tab and then the profit and loss right click to open it in a new tab tombien or as well the trial balance right click open link in a new tab first a word from our sponsor yeah actually we're sponsoring ourselves on this one because apparently the merchandisers they don't want to be seen with us but but that's okay whatever because our merchandise is is better than their stupid stuff anyways like our trust me i'm an accountant product line yeah it's paramount that you let people know that you're an accountant because apparently we're among the only ones equipped with the number crunching skills to answer society's current deep complex and nuanced questions if you would like a commercial free experience consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com let's tab to the right to see what we have opened closing up the hamburger because leaving open hamburgers around gets messy someone might step on it or something and then we're going to go from 010124 to 022824 get ketchup on their foot we're gonna run the report let's run that and then we'll tab to the right close the hamburger if i told you once i told you a thousand times not to leave open the hamburgers around 010124 to 022824 and then we'll run that one oh let's run it month by month hitting the drop down month by month run that looks better mucho may or muy bien looks better closing up the hamburger trial balance running the same kind of thing 010124 to 022824 let's put it on a month by month on a side by side let's run it okay let's go back to the balance sheet and consider what we're doing this time we're going to now do some of the more normal type of transactions on the second month of operations so in the first month of operations we did some transactions that are basically unique to the starting up of the company including the financing of the business where we took out a loan and we also put money in ourselves on the equity side of things we purchased then our inventory and our equipment to get the business off and running in the second month of the course we spent some time on the first few transactions for transactions that are unique types of transactions for the paying off of the loans to concentrate on the loan payments because they have to deal with the interest and then we categorized our accounts now we're into kind of the normal cycle for the second month of operations will be somewhat repetitive in some of the transactions we saw in the first month but we're going to have some new components to them this time we're going to be purchasing inventory again with a purchase order but we'll basically add the inventory items as we enter the purchase order so quick recap on the cycle here this is a quickbooks desktop home page but we're using it for quickbooks online because we're just looking at the flow of the forms which is basically the same for any accounting system so we're dealing with inventory we're dealing with a perpetual inventory system which you might not always be doing if you're running quickbooks you might be using some kind of periodic system that's fine but we're going to be tracking the inventory within our quickbooks and that means that the inventory is going to have an impact on both the purchasing side of things and the sales side of things it'll have and we're focused now on the purchasing side of the inventory when we buy inventory the easiest way to do it would be that we just buy the inventory and we pay for it when we purchase it in which case you would use a check form or expense form similar to if you bought something on an online store like if you're in the united states like an amazon you just bought something you have to pay for it at the time you purchase it but if you're a business sometimes you might be able to request the inventory say you have shipping or something from china that's going to manufacture a bunch of tea cups or something like that a bunch of cups of some kind and they're going to ship them over to you possibly you have the ability to request the shipment before you pay for it in which case that's what a purchase order would do we're imagining we're buying the guitars we're not paying for the guitars as we buy them we're requesting the guitars to be shipped and then when the guitars get to us they will have a bill already there and then we're going to either pay the bill or enter the bill at that time so let's do this we're going to go back on over we're going to imagine we have a new vendor let's go to the first tab and select the drop down here's the story we're going to go into the vendor tab and we're going to go into the purchase order and that's because we had a new customer that came in and said they want a guitar from fender which is a vendor that we don't currently have on the list so we're like okay we'll set up fender and see if we can get them on our vendor list so we're going to say fender the new vendor fender i'm not is it an e i'm not sure but we'll tab like that and then we'll say save it so here here it is now obviously we would want to email address if we're going to be emailing them the purchase order but we're not going to need it in the practice problem and then the ship to where is it going to go well it's not going to go directly to a customer but it could is so if we wanted to pick a customer we can ship it to the customer but we're bringing it into our warehouse so we're going to bring it into our warehouse which is often risky because there's some hoodlums that are out to steal our inventory but that's okay we we have a system this time it's going to work it's going to work this time all right and let's say that we're going to do it on uh February 2nd so let's say two of 2024 and boom boom tabbing through we're not going to be using the category field because we're not buying we're tracking the inventory in the system if i was using a perpetual inventory system then maybe you would use the category field but we want to track the units of inventory and therefore we're going to have an item now we've never dealt with fender before so that means that we're it's a new vendor that's why fender that is so we're going to have to then add an item so we'll add the item that we want and we're just going to add it on the fly as we go here as we do the data input so we'll have a new one and i'm going to call it just an sq we're not going to have uh it's going to be an inventory type and we could have an image of it if we if we needed to upload the image that could be helpful if you're like in a store no sku number category i'm not going to add the category but you can imagine grouping the categories these days by vendor possibly or possibly by type of guitar electric uh acoustic or something like that quantity on hand zero i'm not going to put any quantity on hand when i add any more inventory that's really only happening when you first put the stuff on the books but it still makes you do that every time because it's a required field given by the asterix for some reason reorder point i'm going to say zero i'm going to let it get down to zero before i reorder the inventory asset account is going to be inventory that's the account that's going to be going up when we purchase it not with the purchase order however because although it says purchase order this is an an order that we're but we're not actually purchasing yet yet when we get the bill that's when the inventory will go up okay so then i'm going to say that we have the description on the sales form which will be the invoices in the sales receipt it's going to be a squire guitar we're going to call it and then we're going to say i'm just i'm not a guitar expert over here but i have like one kind of guitar so i don't really but that's what it is so we're going to say it's going to be the sale of product income that's going to be the income account impacted on this when we do a sales form which is going to be an invoice or the sales receipt and then on the purchases side of things we're also going to have the squire that's going to go in the purchasing forms including the purchase order the bill the check or expense form and then we're going to be saying that we we sell them for 100 or we buy them for 168 we're going to say so we buy them for 168 and then we sell them for 244 expense account is going to be the cost to good soul that will be the expense account impacted when we use the sales forms not the expense forms but the sales forms because that's when we expense the inventory when we sell the stuff that's being the sales receipt and the invoices the preferred vendor we can go ahead and say is fender fender the new vendor is our preferred vendor fender let's go ahead and create that okay so we're going to say that we have 20 of those at 168 that's a 3,360 now we're purchasing them specifically for a new customer that wanted this these guitars so i'm going to add a new customer i like to just type it in new music stuff there's no vendor for that so if i say tab it's going to ask me if i want to add it we do i could add a lot more information which might be necessary such as the email address if i'm going to turn around and invoice them after i receive the guitar that would be like the minimum but i'm not going to put it here because the only required feel is the asterisk and this is our practice problem so note and remember that the vendor our fender our new vendor doesn't care about the customer who requested the guitar they just are gonna complete the purchase order but we internally want to know the customer because when i get the guitar with a bill in it and whatnot i want to then turn around and create an invoice and sell it to the customer who i specifically purchased these guitars for so remember at the bottom it looks like it should be recording something looks kind of like an invoice or it looks kind of like a bill form but we're not recording anything because we did not get the inventory we did not pay for the inventory therefore this is an internal document that we will be tracking and hopefully we'll get the guitars and we'll use the purchase order to help create the bill or expense form so we can cancel it we can clear it we can print it we can make it reoccurring we can save it we can save and close save and new or save and send we're going to save and close no impact on the financial statements but internally we can track the form it's going to be in the expenses area which i would call the vendor center and the expenses tab you can track them here by selecting the drop down and say we want to be tracking the purchase orders por favor and then we can filter it please that is por favor please and so then i could say all transactions or just the open ones possibly open transactions and there it is there's our purchase order so then i can also go to my vendors and these are the people we purchase stuff from of course and we could say i want to look at the filter of the open purchase order on the vendor side of thing and there's our new vendor no one as fender and we can go into it and so there we have it there's our purchase order then we could send it again and we can copy it to a bill which is likely the next thing that will happen once we get the guitars because there'll be a bill in it and then we have to actually pay for the stuff okay so nothing new on the trial balance so just to note just recall if i go to the balance sheet we're at the same spot that we were before balance sheet is still in the same balance and then we're going to tab to the right income statement nothing new happening here either and then if i look at the trial balance balance sheet on top of the income statement we should still be at the same point we were at last time assets on top then the liabilities and then the equity and then the income accounts income and expenses remembering that the income accounts all of this from equity on down you could squish into one number just taking the credits minus the debits or the beginning balance uh plus the net income right and i could do that just to i just like to show that each time oh one oh one two five uh oh uh one oh one two five because i think that's like the most confusing thing for a lot of people and once you see it a couple times then it's easy to kind of see it squished it into one number it's just one number it's the timing of that one number the income statement is part of equity when you think of the accounting equation as assets minus liabilities equals equity equity being the book value of the business being the bottom line in essence and the story then of one year back is simply taking that breakout of the last usually year of data