 In this presentation, we will record the receipt of inventory with a bill, a bill that we will create with the use of the purchase order. In other words, we created a purchase order in the past requesting inventory from a vendor. Now we're going to be entering the bill, which will record that inventory on the books as well as the related accounts payable. Time to engage with Sage 50, Cloud Accounting. Here we are in our Get Great Guitars file. We're currently in the Customer and Sales section. We're going to be moving on down to the Vendor and Purchases section where we have the purchase order and the entering of the bill. I'm going to close this back out here. Last time we have entered the purchase order, we have in a prior presentation, that's going to be a request. You'll recall that the purchase order does not actually record a transaction, it's just a request for the inventory. If we were to open up the purchase orders by selecting the drop down here and going to the View and Edit purchase orders, then we're going to see the purchase orders we currently have in place. We do have the year for the entire year here. We're looking here at this purchase order, the one that's still open, indicated by the check mark on the right, and that's for Fender. This was that new vendor Fender, and so we're going to be now receiving the inventory for it. Imagine we requested the guitar with the purchase order. The guitar has now been shipped. We have now received the guitar in our warehouse and it has the bill related to it. Now we're going to go and say we want a new bill now. We're going to be entering the bill, same kind of standard bill process, except this time we're going to be putting in Fender as the vendor, because that was our new vendor Fender. And then on the left-hand tab, there's going to be our purchase order. So it jumped over, you'll note on the bottom, to the left-hand tab. Then we can select the purchase order. Remember that you need the PO number in order to do this, so if you do not have a PO number in the purchase order, this will not populate. You'll have to go back over to the purchase order and make sure you have a PO number, so that you can then populate and pick the purchase order. So there we have that. If I tab through the rest of this, I'm going to say this looks good. Let's make the date as of the 14th. So I'm going to say the 14th for the date. And everything else looks pretty good. I think that's okay. So now we're just going to verify that the amount on the purchase order is going to be the amount that we received. So there was one on the purchase order that's remaining, and that's what we received, the one guitar, the squire. And then of course it's going to populate the rest of the bill for us. We purchased the squire. This is what we have received now. That's the type of guitar. And then it's going to be going to, what's this going to do to our financial statements? It's going to be increasing the accounts payable, because now we owe the money and we now have the inventory on the books. It's also going to be taking a look at the sub ledger for the accounts payable, tracking that information by vendor. In this case, that vendor being fender. And then the other side is going to be inventory also being tracked by inventory item tracking the actual inventory item as well, using the first in first out method. Let's go ahead and say save and then check it out. So I'm going to say save and then okay, and then check it out. So we'll say save, okay, close. And this transaction has been changed. I'm going to say yes. And I need an invoice number. So let's say invoice number. Try it again. And then I'm going to say yes. And then we're going to go to the reports drop down. We'll take a look at the financial statement reports. This time, let's take a look at actually, let's go to the general ledger reports and take a look at the trial balance. I'm going to go on down to the trial balance down below the working trial balance as it's called here. We'll change the options up top. We'll go into the options and be adjusting those. We're going to remove the zero balances and we could change the date. We'll probably okay with the date as is, but I'll bring it back or to the end of February. We should probably do that. Pick up those last couple of days in February. And then I'm going to say okay. And there we have it. So now we're going to see that the inventory should be going up. If we double click on the inventory item, it's going to be going up. There's the 168 double clicking on that will then take us to our bill. So there's going to be our bill. What looks good closing this back out, closing this back out. The other side then going into the payable account. There's the payable account double clicking on that payable account. There's our payable once again for that bill closing this back out. Note also that the inventory account. We won't go into it because we've done this multiple times in the past. But if I was to check the inventory item reports, it would break out the inventory by item and we should have that item that's going to be related to the squire guitar that we have. That would be part of the population of this $2,112 worth of inventory. We have the accounts payable representing who we owe if we were to run a subsidiary report such as an aged payable, it would then show this information by vendor who we owe to. In this case, that vendor, including the vendor vendor. Now we'll do this process again, we're going to enter both a purchase order and then the bill. So I'm going to close this one out. I don't need that. I'm going to go back to the first tab. This time we're going to enter the purchase order and then the bill for it. So I'm going to go to the purchase order. We're going to say we want a new purchase order. This one's going to go to our most common vendor that being Epiphone. So we're going to be saying Epiphone and there is that that looks good. And we're going to say this is going to be as of let's say 02120 and that looks good. And then the quantity we're going to say is 3 and we're going to be buying the ELPs, ELP which is our most common guitar. So we're going to be getting four of those. Once again, this is just a request. So nothing's going to happen with the purchase order except we're going to send it out, request it, track it, but it's not going to be affecting the financial statements. So then we're going to say save. So I'm going to say let's save that and then close that. And then if I take a look once again at the purchase orders by selecting the dropdown and take a look at the view and edit purchase orders, then we're going to see the open purchase order of that 1200 closing this back out then and going into the bills. We're going to enter the bills and say we would like a new bill now and we want the new bill. I'm going to make this large. It's going to be for Epiphone. So now we're going to imagine we have received the inventory. So now it's in our shop and we're going to say this is as of, I'm going to say the 14th. We'll bring it back on down to the 14th and tab through this. That looks good. And notice here it didn't populate the purchase order. Now why didn't it? Because I didn't give it a purchase order number. So it's not going to let me populate this. I'm going to close this back out and say, no, don't record that. Let's go back to the purchase order. I want to go to the edit view and edit purchase order. I'm going to say that we want to pick up this purchase order that didn't have a number. So this is the purchase order. I'm going to make it 04 as the number. So then I'll put in the purchase order number over here, 04. And now let's try it again. So I'm going to say save. I'm going to close this back out. Close this back out. Then go into the enter bills and we're going to say we want a new bill now. So new bill. I'll make this large. This is going to be for Epiphone. And there you see now it popped over. Now it popped over because if I select the dropdown, I now have a purchase order number that I could tie out to. So now we'll pick up that purchase order number. I'm going to say that the date, let's bring this down to the 14th. So we'll bring on down to the 14th. And everything else looks good. So I'm going to say the amount we received was three of these. So we received all three of them. So there they are. What's this going to do? It's going to increase the accounts payable at this point, put it on the inventory at this point in time. So let's go ahead and save that. Let's put an invoice number here just to make sure we have the number. And then I'm going to say save. And then check that out. So I'll close this back out. Let's go back to our reports. We're going to go back to our reports, refresh the trial balance, then take a look at the inventory. Or if I double click on the inventory item, then there's the 1200, 1200 closing this back out going to the other side, which is going to be in the accounts payable, double clicking on that accounts payable. We now see that 1200 increasing in the payable. Once again, these two accounts would be then supported by the supporting sub ledgers listing out the inventory, listing out the vendors that we owe money to. That's going to be it for now. Let's get out of here.