 That we set up from our items. So let's save and close this There we have it and then let's go ahead and just pay those bills So we can pay the bills by going or at least pay one of them Maybe if I go to my if I go to my Vendors and I can say the bills I have open bills so if I pay the bill let's go into this one and Say we want to make a payment of that bill So then we're going to say this is going to pay the bill on 12-5 this will decrease the checking account and Because it's coming out of the checking account. That's what a pay bill form does It's basically a check or an expense form the other side. It's going to decrease the accounts payable So let's save and close that and I'll just check that out if I go back to the to the balance sheet and run the balance sheet now the checking account is is Being decreased by the by the pay bill form back on over exit and The other side is going to the accounts payable the accounts payable account went up and then went back down We we entered the bill and then We paid the bill so those two things should line up in this in the general fashion As time passes it goes up and then it goes back down Inventory is now at 11 175 Nothing's on the profit and loss because we didn't sell anything even though we did pay cash because inventory Is an accrual thing normally and then we can see our units of inventory over here and the value of the inventory that is tied out to our Our our balance sheet so you can see in order to set that full system up within quickbooks What we what we what we need to have then what we would like to have is the tracking of the inventory This is on a perpetual kind of full service type of system The inventory account is going up when we purchase the inventory and you could you know imagine that to be a more simplified system where you just pay Like you just have an expense where you bought the inventory When it actually hits the checking account that you then add the items here instead of entering a purchase order a bill And then basically hit in the checking account you can imagine it just when it hits the checking account You're gonna you're gonna do the same thing increase the items If you're using a full service Perpetual inventory type of system which would be ideal the best thing that we can do But obviously there's a lot of working parts It would increase the inventory and then it would also be tracking our inventory over here in dollar amount as well as in units and Then when I sell the inventory which we'll take a look at in future presentations with either an invoice or a Sales receipt it will reduce the inventory and when I sell the inventory That's that's when there's going to be an impact on the profit and loss Because like when you do a point of sale transaction at a grocery store It's actually recording the transaction that records the revenue that you're paying them the sale the revenue and the cost of goods sold Meaning it's reducing inventory and recording the related expense at that point in time So that's kind of an accrual type of thing because at the point of sale It means we have that's the triggering factor that sales point is a triggering factor So you can see kind of the issues here when we go to an e-commerce situation in e-commerce The question is do I really I mean I already if I go to my store over here have to enter the products Into e-commerce and I'm probably tracking at least the inventory in some way shape or form to make sure that I'm managing the number of Units that I need to sell Do I really need to make that same information input? Into QuickBooks so I can run another inventory report within QuickBooks right and and and that might be that might be a redundant Kind of thing you might not need to you may be able to find apps that can basically do that Meaning you might find in you can maybe able to find integration apps that when you purchase when you make the purchase It's going to pull into all that data into QuickBooks But even if you did that be very careful because to make that work properly You would still have to go into QuickBooks generally into products and and enter Your items so that it can so that it can match up the transactions that it's going to pull in which are could be cash transactions to the items and Many people would recommend and I would generally agree most of the time for most, you know small to mid-sized businesses that that That's going to be too tedious Oftentimes and if you have a high volume of sales it's going to be it's going to be confusing and QuickBooks isn't as robust an Inventory management system as some other inventory management system So it has limited capabilities for more advanced kind of inventory needs in the first place so When we go to the e-commerce side of things, that's why we might have to decouple this What are we going to end up doing? We're going to basically say maybe we should move from a Perpetual inventory system to more of a periodic inventory system So that I can track the dollar amounts of inventory on a periodic basis and get my financial statements correct on this side And then I can track my units of inventory logistically quite well in and like a Shopify or an Amazon or something in order to meet The the needs from just a logistical basis to make sure my sales meet needs are being are being met So then we'll take a look at some of those those things those concerns in the future and The following and future presentations now will follow the inventory the next step of the inventory in a perpetual inventory system Would be to sell the inventory which again is similar to what you would do when you're at when you're just checking something out at a Grocery store at like a at like a self checkout or something. It's quite easy and automatic if everything is set up But there's actually a lot going on behind the scenes and there's a lot of data. That's basically happening And and so it takes a lot a lot more You know know how to set it up and then make sure everything is linking together to do the perpetual system So again, the question is what's the difference between a perpetual system in a periodic system? Which systems would be best if we're trying to integrate with an e-commerce store possibly we'll break it out into a periodic system But I just want to point out, you know, the differences here because some integrations With QuickBooks from from from other platforms might say hey We can pull everything in and track inventory in QuickBooks And maybe you could to some cases but the question will be is that something that you should be doing? Is that gonna be the easiest thing to do the manageable thing to do? For your particular business, so we'll get into that in future presentations