 so i'm going to go back on over i'm doing this a little faster because we did this last month as well in the vendor cycle we're going to say purchase order i'm ordering a purchase i order you to give me these guitars we're going to go from from this is going to be a new vendor we're going to set up as we go called fender fenders the new vendor which sounds it kind of rhymes so i'm going to say it a lot because i like saying it fender is our new vendor i'm going to tab that over i'm not going to put all the other stuff in here we're just going to put the required field at this point this is a form that typically we would be emailing and therefore we might want to customize it we might need the email and so on but i'm not going to go into the detail for the practice problem purposes here and then we're going to go to the ship to if we were going to give it to a customer directly we can select the customer changing the shipping address to the customer but that's not what we're going to do we're going to get the new guitars here for us and then we're going to say this is on 0202 23 0202 23 and there's the information there and then down below we're going to add the item as we go so we're not in the categories here we're in the items because we're purchasing inventory items we're going to set up a new item as we enter the purchase order because this is a new this is a new vendor we haven't ordered anything from this so we're going to call it an sq i'm just going to say that's going to be it so i'm going to add our item for this sq type of guitar it's an inventory item we're going to be tracking the inventory in the system tracking the units not just the dollar amounts i want to pick the inventory name populating let's tab on through to the other side tab on through i'm not going to put a number if we wanted a picture of it we can take a picture of it which can actually be useful we could put a category maybe guitar categories if we wanted to but i'm not going to here and then down here we've got the amount uh initial quantity you have to put something here because it's a required field it's going to basically always be zero unless you unless you first start the company file typically and then you got to put a start date i'm just going to say the beginning of the year reorder point i'm just going to say zero on that inventory is the account that's going to go up when we purchase it not with the purchase order but when we populate the in the bill from the purchase order when we've received the guitars description i'm going to call it a squire it's a squire guitar i'm i'm not like a guitar expert although i have one i've got well i got a couple guitars but i'm certainly not a guitar expert we're just making this stuff up because guitars are cool and so we're going to say the sales price is 244 and so and then it's going to go to the sale of product income account like all the other sale of product stuff it's got the taxable item is on so i'm going to do the standard tax that i'm just going to keep that i'm going to copy the squire down here to be on the purchase forms as well this description was on the sales forms that will be on the invoices and sales receipt this one's on the purchase form which will be the purchase order also the bill or the expense form if we were to use those and then the cost i'm going to say it's 168 that's how much we buy them for that means it's going to be populated here on the purchase order for the 168 not the sales price the 244 and the cost of goods sold is the account impacted when we make a sales type of document invoice or sales receipt that's the expense related to us consuming the inventory at that point for revenue generation for the sale of the guitar preferred vendor is vendor the preferred vendor is vendor why because it rhymes that's why i prefer it why else would you prefer something all right so then we got the squires populating looks good movie b to the end quantity i'm going to say we're going to get 20 of them 20 squires and then we're going to purchase them for a particular customer so i'm going to make a new customer called new music music stuff very creative name that's the that's the customer so i'm going to say just add it add it add it like an attic add stuff so we're going to say there it is so what's that so no remember the customer is not necessary for the vendor our new vendor fender doesn't really care about our new customer new music stuff but i want to put the customer on the purchase order so that when i get the stuff the guitars the squire guitars from the new vendor fender then we can turn around and sell it up making an invoice at that point so there we go let's go ahead and save it and and we can of course cancel it clear it print it if we want if you wanted to preview it this is what it's going to look like this is a form that goes to the external user so you might want to this is a form that you can customize and add your logo to and all that kind of stuff make reoccurring we have the more option copy delete our audit history we can either save new save send which is often what you would do if you had an email address but we're going to save it and close it no impact on the financial statements here but we can track it by going to the expenses side of things on the left hand side we might track it say by the vendor and if you're in the business view by the way you might see it's what if i'm in the business views what people probably are saying if you're in the business view you can find you can go to the get paid and paid area and then uh you're in the vendors section down below that's for you people that are saying that so then and the vendors we've got the purchase orders we could sort them by purchase order and there's that new vendor we set up fender the new vendor and we've got the one purchase order so if i go into that then we've got the purchase order we can send it and we can copy it to a bill so once we get the stuff the box of guitars with the bill in it remembering that bill for layman's terms normal terms outside of quickbooks terms is different more broad less specific than bill within quickbooks which is a bill form which specifically will increase the accounts payable we'll do that at a future time we also have in the expenses tab over here the expenses tab in the expenses tab and we can sort and filter this way to for purchase orders per se for example purchase orders and then we can have all purchase orders but maybe just the open ones and there's our open purchase order