 In this presentation, we're going to create a purchase order or PO and as we do so, we will be creating a new vendor, new vendor that we will be doing business with, as well as a new inventory item as we create the purchase order. Time to engage with Sage 50, Cloud Accounting. Here we are in our Get Great Guitars file, we're going to go up top to the Purchases section. So we're going to be in the vendor and purchases, we're going to go through the process, the purchasing process once again for our inventory items. When we make the purchase order, remember that's kind of that funny one that doesn't actually have a financial transaction related to it, no effect in other words, on the balance sheet or the income statement, but a request for the inventory. So we're going to be purchasing guitars, we're going to have a new inventory, new vendor that we will be purchasing guitars for. So we're imagining the scenario here, someone comes into our guitar shop, they're going to say, I would like a guitar, but we want it from this particular vendor, that vendor is named Fender, and we don't have any guitars from Fender, but we can order a guitar, we're going to then order the new guitar from the new vendor that's being Fender, we're going to create a purchase order. As we do so, it's just going to be a request for the inventory. No inventory having been received, no payment having been made at the point of the purchase order, therefore no financial transaction. We will receive the inventory at a later time with the bill. At that point, we'll record the bill, increasing the accounts payable as well as recording the inventory. All right, so let's go into the purchase order. We're going to say we want a new purchase order, and it's going to be a new vendor that we have up top. So we're going to create a new vendor just as we go. We're just going here and say we need a new vendor, and we're just going to make one as we go. The new vendor is going to be Fender, so we're going to say new down below. And then we're going to make a new vendor, and we'll type in the name Fender. So Fender is the new vendor. It's going to be fun saying that a lot. I'm going to say it'll Fender is the vendor because it rhymes. So then we're going to go say down here, then we have the expense accounts, so the expense account for this vendor will typically be an inventory. We're typically buying inventory with them. So I'm going to say inventory. That's all I'm going to put into this section. So I'm just going to keep the minimal information. There's our new vendor, Fender, that we just basically set up as we go. And then we'll say that I'm going to choose, select that vendor, Fender. There it is. And then tab through this, so everything looks good there. And so then I'm going to say that we need the date is going to be 020620. And then we're going to set up a new inventory item. So obviously we do not have the inventory item yet, considering it's a new vendor named Fender. So we're going to go to the item here and we're going to set up a new inventory item as we go. So we'll set up a new inventory item. I'm going to make this large and then it's going to be a squire, which I'm just going to call an SQ and it's going to be a squire is the type of guitar. And then I'm going to say that in the dropdown, we want it to be a inventory stock item, which we're going to be tracking. I'm going to copy the name and I'm going to put it here in the description for both the sales side. So when we make an invoice or a or a sales receipt and on the purchase side for something like this one being a purchase order. And then we're going to have the price. So I had to look that up and I'm back now. I looked that up. It's going to be 244 for our practice problem price. And then that's going to be going and then the cost is going to be, we're going to buy it for 168. We're going to be using the FIFO method. The other account that it's going to be going to, when we make a sale, in other words, an invoice or sales receipt, it's going to go to sales income. And then when we buy stuff with it, not with the purchase order, but with the bill, it'll be increasing the inventory at that time, not with the purchase order, but bill. And then we have the cost of good sold being affected when we make a sale again with the invoice or sales receipt also being affected here. We're not going to put any minimum stock information or reorder quantity. So let's keep that. We're going to say save. And now we have the new item set up. Let's close that out. And then the new item I'm going to type in here, which is just an SQ, a Squire type of guitar from Fender, our new vendor. And the other side is going to be the GL account. So the GL account here inventory. Now again, this is a little bit deceiving because it is saying, you know, you see the GL account, you would suspect that it's going to be making a transaction. But no, it's not. This is just going to be a request happening. So this will be the request. And there it is. That's going to be it then. So I'm going to say save. And then I'm going to close this back out. And then once I open this, I'm just going to check and see the view and edit purchase orders and see the purchase orders that we just made. So if I then open that up, view and edit purchase orders, then here's the one that's still open. There's the one we just made that's still open, closing that out. Then we're going to imagine that Fender, our new vendor, will send us the guitar in the mail with the bill in it. And then once we get that, we will enter the bill and tie basically the purchase order to the receiving information with regards to that bill. We'll see that in a future presentation. Before we wrap this up, I do want to go back in here to the purchase order and I want to go to the view and edit the purchase order. And you'll note here that we didn't put a purchase order number. And sometimes that'll mess things up. They won't allow us to tie out the bill to it. So I'm going to be going to a purchase order number. I'm going to double click on this and I'm just going to say in here, the PO number is going to be, I'm just going to say 03. And then I'm going to save this and then close this and then close this. And then if we go back into our bills, I'm not going to record the bill. But if we were to go to the bill and then select that, that vendor, Fender, then we see over here the purchase order tab will be selected and we can then select the purchase order. We need the number in order to do so. So I'm going to then close this back out. That's what we're going to do next time. I'm not going to record this item. So that's what we're going to do or we'll do that in a future presentation may not be exactly next time. But the main point here is note again, no financial transaction has happened at the point of purchase order. That's going to be it for now. Let's get out of here.