 So we're purchasing equipment with this item. Remember that the person you purchase equipment from may also be the same place like a Home Depot or something that you purchase supplies from. So you have to be careful with the vendor because it might already be going to an account and when you set the rules you want to be careful to set up the automatic rules or be careful with setting up automatic rules if there's no dollar limitation because then you'll put a bunch of stuff into the supplies that might better be put under the fixed asset of equipment. So now I'm going to copy the tag here and notice that if this was like a Home Depot type of area I might try I might try to make the vendor a little bit different for those types of transactions that are going to be under a certain dollar amount and those that are over a certain dollar amount. In other words I might have some stuff that I purchased from this particular vendor that are supplies some that are equipment I could have the same vendor and then have two separate accounts and I could still apply a rule and that would work sometimes however you might want to actually have a different vendor even though they're the actual same vendor that you're buying from differentiate 18 the vendors a little bit so that you can actually sort your transactions by by vendor which will show you the transactions that you made for the purchase of cash versus the I mean for the purchase of equipment versus supplies so I'm going to set this up and so this is going to be a vendor type because it's a payable notice the category it doesn't know where to put it this is the account because I haven't because we need to set up an account so I'm going to hit the drop down and go up top and say I want to add a new account so this will be like what like as if we did it in the tab to the left in the general ledger it's going to be a fixed asset type of account you might call that depreciable assets type of account property plants and equipment pp and e I'm going to call it building equipment I'm not too concerned with the subcategories because it doesn't add a whole lot so I'll just pick one here and this is what I'm concerned with on this side I'm just going to call it equipment equipment so I'll call it that and then a sub ledger I'm not going to make a sub ledger of it there's a couple different variations we might use in terms of how we're going to deal with the accumulated depreciation related to it so we might talk about that a little bit more later but you could make a parent account for equipment and then have the cost and the accumulated depreciation as sub accounts or I think it's a little bit shorthand to do it this way have the equipment the parent accounts and then make an accumulated depreciation account the sub ledger account of that parent account so that's one that's another way you can do it I'm going to save it and close it there's that okay so let's make a rule down here so I'm going to say alright let's add create a rule with it create the rule there are rules here and so I'm going to say it's going to be a money out type of rule not a money and of course all accounts or just this one I'll keep it on all accounts is fine and here we have all conditions or or any conditions now this is one where we'll talk about where you might possibly do multiple conditions so if I only buy like if this was some like forklift shop and I bought a forklift from it or something I'm never going to do business with them again I don't need any other other rule or if I'm just going to buy forklifts from them then that's all I need but if it was an office supply store where I buy supplies and possibly equipment from time to time I might want two rules and I would like them to have not just any of the two to be applied but all of them in order for the rule to apply the first one being the description I'll take the bank text typically contains just like normal I just want this I don't need this other junk on the right and then you might add another rule and it might be a rule like a bank amount amount rule sorry about that I got a little little tight little tongue tied there and it would have to be greater than and you might say whatever line item that you would like it to be greater than maybe like over a thousand dollars you might say something that you could possibly put on the book says equipment I'm not I don't know exactly what the dollar amount like the dollar amount could vary a little bit as time goes on in terms of when you might record it as supplies versus when you might record it as equipment but the general idea is obviously if this dollar amount goes up it's more likely that it's going to be recorded as a fixed asset as opposed to just expensing it and then you could have another rule which if it was under the certain dollar amounts you would record it as as supplies or something but we'll get into that more later so I'm just going to apply I'm not going to do the second bit here I'm just going to do the first bit and then we've got the expense account transaction type now this is a little confusing because it says expense up here you might think that that's going to be the account like the type of account on the income statement but that just means it's an expense form which is basically a check form without a check number so that's just like a check form basically that's going to decrease cash and then the other side's going to equipment so that's correct Sears and everything else looks good I'm not going to do the auto add and these particularly you might not want to do the auto add for large pieces of equipment or transactions that have a large dollar amount because you might want to double check those that have the large dollar amount because they don't happen all the time and because they're more significant due to the dollar amount so let's go ahead and and save it now just one more thing if you if you did have the transaction that had a loan kind of involved in it I'm going to save this then then you can kind of adjust it here so if I go back in if I go up top and I say I say let's view it by by matched or or recognized transactions recognized transactions you better recognize so if we had this one and it was on nine twos when we're looking at if this was a transaction that had that had a loan involved in it then we couldn't categorize just the equipment account we'd have to split it possibly you know with a loan type of account so it's kind of nice that it has a split down here because we financed part of the transaction and we could put the loan on the books or again we could decide not to put the loan on the books and just pay down you know the loan payment which we would have to to assign to a loan account and then give this information to our accountant at the end of the year