 Quick look at the flowchart for inventory here. This is the desktop flowchart, but it's just a flowchart of the general flow of transactions. And I think this one's a good one to look at. Inventory is gonna span both the purchasing side, the vendor cycle and the selling side, the customer cycle. So when we purchase the inventory, we're gonna have to put it on the books, typically as inventory. And then when we sell it, we're gonna have to decrease inventory and record it as cost of goods sold. Now remember, there's a couple of different ways we can deal with inventory. The easiest way to deal with inventory would be that we're not even gonna record it as an asset. We say in a cash-based system. So that would only work if you're buying inventory in a just-in-time type of system. You buy the inventory, you expense it at the point that you purchase it. But most of the time we have to do an accrual thing, put the inventory on the books as an asset, we could then use either a periodic inventory system, tracking the units of inventory outside of QuickBooks or a perpetual inventory system, tracking the units inside QuickBooks. We're gonna be using a perpetual inventory system, therefore we're gonna have to track the inventory in units and dollars every step along the way. So the first thing we do is purchase the inventory, which we might do with a bill form, which would increase the accounts payable or a check form or an expense form. However, we could have one step before the purchase of the inventory and that's the purchase order. That's what we're thinking about here. Note that not every company will have a purchase order and a purchase order is a little bit abstract because if you think about your own purchases, you don't use something like a purchase order. So individuals, if you bought something online or something like that, then you're gonna pay for it when you purchase it online, even though you haven't received it yet typically and then they're gonna ship it to you. The only time you use a purchase order, that might be the case sometimes in business, in which case you would just basically write a check and record the inventory or have an expense form when you purchase it. But in some cases you might be able to order the inventory before paying for the inventory. That's what a purchase order is doing. That would only happen if you have some leverage over the transaction. Possibly you have something that you wanna manufacture like overseas and like China and they're gonna manufacture a thousand cups or something like that. Then they might actually be able to set up so they actually do the job, give you the merchandise and then give you the bill with it. In that case, the purchase order is just a request. So the other thing that's a little strange about it is there's no financial transaction with it if it's just a request because we don't have the inventory number one and we didn't pay for anything at number two. We just had a request. It's an important form then if you're using the purchase order, if it's part of your process to track but it's not something that's gonna have an impact on the balance sheet, the income statement, the financial statement. So we're gonna track it internally. That's different than most every other form here except possibly the estimate form is the main other exception we'll get into later. So that's what we're imagining here. We're gonna request the inventory but we have not yet received it. There will be no impact therefore on the financial statements until we receive the inventory.