 Okay now we're going to create another invoice but this time we're going to do the whole connection process between an invoice that we created a purchase order and then a check for. So to understand that let's go back to our float chart over here and recap what we did in a prior presentation. Now note that if you have inventory we've got the caveats on the inventory. There's multiple ways you can track inventory. You don't have to track it within the QuickBooks system. You might try to stay on a cash based system if you have just-in-time inventory and just expense the inventory as you purchase it because you're going to turn around and sell it quickly or you might do a periodic system tracking the inventory in an Excel worksheet tracking the units and then recording just the dollar amounts for the financial reporting purposes in QuickBooks doing periodic adjustments to adjust to the physical count in your Excel worksheet for example that you might do on a nightly weekly or monthly basis but here we're using a perpetual inventory system using the full services within QuickBooks to track not only the dollar amounts but the unit amount of inventory. Inventory will span the vendor cycle where money is going to go out for purchases typically and the customer cycle where we expect money to be coming in for sales on the purchases side of things. Clearly we're buying the inventory and that might start with a purchase order. We would only use the purchase order if we're in a type of situation where we can request the inventory without actually paying for it at that point in time so you'd have to have a special relationship in that case. If you're buying the inventory or paying for it at the point in time that you've requested then you would go straight to a check form or a bill. We entered a purchase order in the past and then we would expect let's imagine we bought our guitars from like China or something like that or we're buying them from Epiphone and then we expect them to come to us with a box of guitars the inventory that we're purchasing being guitars and a bill in it. The bill might say invoice on it because the invoice is what they would create if they were using QuickBooks because we would be their customer from that side of the table but to us it would be a physical bill which we could enter into the system with a bill form but aren't required to because we could also just enter it in with a check or expense form which is what we did in the past. So in other words once we get the inventory with a bill physical bill in it we then have to pay the bill in some way either we enter it as a bill which we'll do in the following month we'll talk about entering that transaction more of an accrual thing in the following month or we can just basically pay the bill right away using a check form or an expense form which is what we did last time so that's what we did then of course we're going to turn around and sell the inventory at some point in the future now we might buy the inventory with no intention to sell it to a particular client but if we do have a particular client then we might track the client in this whole stream of transactions so in other words if a client came in they said I want this particular guitar and we said okay well buy you that guitar we don't have it on hand I'll ask my vendor to buy it for you we then make a purchase order requesting it on the purchase order we're going to put who we're buying it for not because the vendor needs it Epiphone doesn't need it but so we can track it so that when we get the guitar it'll remind us to then turn around and make an invoice then when we when we receive the inventory with a bill on it from Epiphone we can enter the bill with a bill form or we did last time with a check or expense form the check form will have the billable item allowing us to check off that it's going to be billable if we so choose although we have to be careful of that as we will see so that we can then know that we need to turn around and then create the sales side of things which would be the invoice for the client that we or customer that we purchased the guitar for so that's going to be the process I'm going to go back on over