 QuickBooks Online 2024. Interpurchase order form otherwise known as the PO form. Get ready because we're going to Bookkeeping Cloud 9 with QuickBooks Online 2024. Here we are in our Get Great Guitars 2024 QuickBooks Online sample company file. We set up in a prior presentation opening up our major financial statement reports like we do every time reports left hand side. In the favorites, we're going to be right clicking on the balance sheet. Open link in new tab, right click on the profit and loss. Open link in new tab, right clicking on the trial balance. Open link in new tab. If you don't have that trial balance in the favorites, you can search for it. If you don't have the balance sheet and the income statement in your favorites, something's wrong with you. That's everyone's favorite. Fix it. Let's go to the tab to the right. Close up the hamburger, scroll up, and let's do a range change. Just looking at the month of January, 2024, 010124 tab, 013124 tab. We will run it because we want to refresh it. Tabbing to the right, closing up the hamburger. And then after we close the hamburger and ate it, we got to run the report and refresh it 010124 tab, 013124. And now we're going to run not right after you eat the hamburger, but after a little bit of time. Then we're going to tab to the right, close up the hamburger, and then we'll change the range one more time. 010124 tab, 013124 tab. Run it so we can refresh it. Okay, let's go back to the balance sheet and prior presentations. We set up the beginning balances. We set up those foundational items we can find in the cog. We talked about the first things and transactions typically entered being those that aren't normal and that they're not part of the normal cycle and therefore might not have a form directly related to them under the customer, vendor, and employee cycle. Those things including things like financing the business, remembering that when we think about assets, liabilities, and equity, then when we start the business, we might have to purchase fixed assets and possibly inventory. We'll typically need money to do that. We can't get the money from customers because we need the inventory and the fixed assets in order to generate the revenue from the customers in the future. Therefore, we'd have to finance it with a third party like the bank liabilities or from us, the owner, or possibly take on another owner like a partner or become a corporation issuing stocks in same kind of thing. So then once we have the money, we bought some fixed assets here. So now we bought some of the furniture and fixture, although someone stole our chair, but we still think we can get by, make money even though it's a crazy world out there. And then we also put some money into a short-term investment account as well. So now we're going to start to think about what's the other thing that we need to purchase if we're selling inventory like we're doing here. We're going to need to be purchasing the inventory. We sell guitars. So we're going to be needing to purchase the guitars. That is something that's part of our normal accounting cycle, although it's not something that we're going to be generating revenue from as of yet. So if I hit the plus button up top, then you'll be looking at the vendor cycle. So now we're at the vendor cycle. We want to be purchasing our guitars. Realize that there's a couple different ways that this might happen. This might go down. You might simply purchase the guitars directly and pay for them in which case you would use an expense or a check form. If you have to purchase things in a similar fashion as you do, like as an individual purchasing things from an online store, then you're still possibly going to use a check form or an expense form because you typically have to pay for it or bill form at that point in time. You're possibly a check or expense form. But if you have some more power in control, say you have a manufacturing company that's manufacturing the guitars possibly like in China or something and you're a big seller of the guitars, it's possible that you can then issue a purchase order. Purchase orders are different than what most people are used to when they individually purchase something because the purchase order is just a request for the inventory. We have not yet paid for it. So they would actually produce the guitars, ship them to us without us paying for it, and then we get the guitars, check if they're okay, and then we enter the bill at that point in time. So notice the purchase order then doesn't actually have a transaction related to it. It's an internal request form because we didn't actually pay for the inventory yet, which would be done with an expense form or check form, the forms that decrease the checking account, and because we don't have the inventory yet because it hasn't been shipped to us at the point in time that we enter the purchase order. Let's take a look at a flow chart just to get an idea of that. This is the QuickBooks desktop flow chart on the home page, but we're just looking at the flow, which is the same for most accounting systems, if we're dealing with inventory, remembering that whenever we think about inventory, we have to remember what's our inventory system, and if you're a bookkeeper, you want to think about where you might specialize in inventory. Do you want to deal with inventory? Do you want to track inventory perpetually within the system? Do you want to have a special field in a certain type of inventory, such as a retail store or possibly online inventory, Shopify store, Amazon store, or possibly in a job cost system, the construction of inventory? This will really help you to manage your client base so that you can maximize your results, and so that's quite important. So if we have inventory, then the question is, do I have a perpetual inventory system, in which case, and that's what we will run here, we're going to track the inventory when we purchase it, and when we sell it, each time we enter a purchase form for inventory, not the purchase order, but the bill form or the check form, we're going to increase not only the dollar amount of inventory, but also the units of inventory, and whenever we sell the inventory, either with an invoice form or sales receipt form, we will not only record the sales amount, but also the reduction in inventory and the related expense cost of goods sold as well as the reduction in the units of inventory. So that becomes a lot more tracking within the system. Your other methods might include, you track the inventory outside of QuickBooks, possibly, if you have a Shopify store or an Amazon store, maybe you track the units of inventory on an outside system and enter that information periodically into the QuickBooks system to adjust your inventory amounts, possibly at the end of the month, or maybe you can even get away with at the end of the year so you can do that periodically for the, just for the tax preparation side of things, or you might be tracking inventory on an external worksheet using some kind of flow assumption, first in, first out, or weighted average, most common, and you might do something like daily, if you sell things like sandwiches or cookies or something, you might have, this is the amount of cookies that I had at the beginning, even as a shift, the beginning of the shift, I had this many cookies, and then I made this many more cookies, and then at the end of the shift, I only had so many,