 So now we have the $30 being tracked perpetually and nothing's happening to the income statement Because we haven't sold it yet. This is a prior $30 from a prior transaction That's not the same thing right-click on the tab up top Let's duplicate it because now we should have another form that's actually tracking the inventory perpetually within the system so we'll go to the accounting drop-down and reports and Then let's type in up top. I'm gonna say hide this This isn't the report I wanted This is not the reports. You're looking for reports. This is gonna go to inventory item list inventory item list and This then is now tracking the inventory Internally now we only have one item the cost of three hundred of thirty dollars for it because And that normally would match what's on the balance sheet here But remember we posted something else that first transaction that wasn't tracked internally So this is the added report which is now tracking the units of inventory And it'll apply a flow assumption for us and everything But it takes a little bit more work for us to to to populate now The next thing that would happen in this process if I go to the first tab is that we would have revenue That would be generated again. Normally if you have revenue generator generated you would have an invoice form or you would have a Receive money form so for example if I made an invoice form and And we had like customer customer one Generic customer one Then down here you would have your item that would be sold now the item is now matching the This is the item that is now pulling in from the amount that we populated into the system for For the items and it's now pulling in the unit price So if I recorded an invoice then what would it do it would increase accounts receivable Which is a non-cruel account something's going to be difficult to deal with with the bank fees But we'll talk more about that later the other side would go to sales of 500 and on a perpetual inventory system the cost of goods sold would be recorded as well as the the Decrease in the inventory and if you had taxes involved it would also be applying the taxes over here as well, so You you can also imagine Being on a perpetual inventory system like I could imagine I mean sorry using the bank feeds I could imagine going into the bank accounts over here and saying that if I go into my bank account That that I'm going to see the deposits and I go into my reconcile I'm going to see the deposits that are going to clear the the the bank So let's say this was a let's say this was a a deposit from an invoice or a sale of inventory They do give you the ability to add the inventory item on the sale side here, but Again, it would be difficult usually to do that if you get a deposit That's coming through Then you're probably not going to track the inventory usually if you're selling inventory You're gonna have to make an invoice or a spend or a or a receive money form and then match Over here, so let's just show that for now if I hit the drop down again. Let's just make that invoice again if I make the invoice again and Say this is customer one customer one boom and This is gonna happen in 2022. Let's say So I'm somewhere in 2022 We'll say April or whatever of 2022 Actually, it's got to be the end of 2022 doesn't it because we had it sometime in like December Okay, and then my item is going to be that inventory item All right, so let's go ahead and record this So I'd say repro approve Invoice field explain I need a date here due date is gonna be Let's say December 31st. All right approve So now we can have some revenue on our income statement. That'll be good So if I go to my balance sheet and update that Now we're tracking accounts receivable Which is which is a non cash kind of concept So that that pulls us away from just being able to construct our books on a cash basis. We'll talk about deposits more later if I go to the income statement and update it now we've got the Sales which is recorded at that 500 and the cost of goods sold now Note cost of goods sold did not change because I didn't turn on the tracking of the inventory So let me just show you what I mean. I kind of messed it up here I'm gonna go back to the first tab and let's go to our business drop-down and if you go into your products and services and Then go into this item here I'm gonna edit the item So I turned everything on but I didn't turn on the track inventory item, which is the perpetual Tick mark you have to tick off so that it will track the inventory perpetually So if you save that it will not recreate everything retroactively So if I wanted to do this again, I'd have to go back in here and say, okay I'm going to go in here and basically Delete the transaction of the purchase of the inventory And then I'll record it again. So if I so if I go back in and say, all right this transaction right here