 QuickBooks Online 2023. Purchase order adding new items as we enter the purchase order. Get ready to start moving on up with QuickBooks Online 2023. Here we are in our Get Great Guitars practice file. We started up in a prior presentation using the 30-day free trial. Support Accounting Instruction by clicking the link below, giving you a free month membership to all of the content on our website, broken out by category, further broken out by course. Each course then organized in a logical, reasonable fashion, making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again, click the link below for a free month membership to our website and all the content on it. We also have opened the free QuickBooks Online sample company. If you want the two open at the same time, we suggest using the incognito window or another browser. You could open the incognito window if using Google Chrome by selecting the three dots in the browser and then incognito window typing into the search engine QuickBooks Online Test Drive. We're going to use the sample company to look at the accounting view, the view that Get Great Guitars is in versus the business view the view the sample company is in. You could toggle back and forth between the two by selecting the cog up top and switch the view on down below. We're going to be opening some tabs like we do every time. I click in the tab up top to duplicate it. Duplicating the duplication process by duplicating the tab that we duplicated last time. Back to the tab to the middle. We're going to go to the reports down on the left hand side. Open up the profit and loss report. Actually, wait a sec. Usually I go to the reports, open up the balance sheet. Let's stay in system here. And then if you're in the business view, by the way, the reports are located in the business overview and then the reports on the left hand side. And then I'm going to go to the right tab and then open up the reports again. This time, open up the profit and loss, the P and the L close up the hand boogie and the ranges. They are changing from 01, 01, 2, 3, tab, 12, 3rd, I mean, 02, 28, 2, 3, let's do. And then let's change it to months to see it month by month, side by side. And we got Jan, we got Feb, we've got the total of Jan and Feb. Tab it to the middle, close up the hand boogie and the ranges. They are changing 01, 01, 2, 3, tab, 02, 28, 2, 3, tab. I'm not going to do the months by months thing, but just run it to refresh it. And that's the setup process that we do every time. We're now going to be entering a purchase order. So we're back to kind of the normal day to day type of transactions now. Most of those transactions being found in like the plus button and we're going to be purchasing items, which is going to be in the first step on the vendors section here. So I'm going to go back to the first tab. We're talking about inventory. Let's take a quick look at the flow chart when dealing with inventory. We might have first step, the purchase order, which doesn't actually record something, but is a request for inventory, which is a little bit unusual. If you haven't been in a business that uses purchase orders because when you make a purchase individually from something online, for example, you pay for it before you get it. In that case, you would just be right using it like an expense form or a check form. But if you're requesting it, they're going to give you the guitars in our case, that being the inventory. And then when we get it, there'll be a bill. That's when we're going to use the purchase order. So it doesn't really record anything, but it's going to set the process in motion. So they ship us the guitar and then we enter the bill. So I'm going to go back on over. I'm doing this a little faster because we did this last month as well. In the vendor cycle, we're going to say purchase order. I am ordering a purchase. I order you to give me these guitars. We're going to go from this is going to be a new vendor. We're going to set up as we go called Fender. Fenders to new vendor, which sounds, it kind of rhymes. So I'm going to say it a lot because I like saying it Fender is our new vendor. I'm going to tab that over. I'm not going to put all the other stuff in here. We're just going to put the required field at this point. This is a form that typically we would be emailing and therefore we might want to customize it. We might need the email and so on, but I'm not going to go into the detail for the practice problem purposes here. And then we're going to go to the ship to, if we were going to give it to a customer directly, we can select the customer changing the shipping address to the customer. But that's not what we're going to do. We're going to get the new guitars here for us. And then we're going to say this is on 02023 and there's the information there. And then down below, we're going to add the item as we go. So we're not in the categories here. We're in the items because we're purchasing inventory items. We're going to set up a new item as we enter the purchase order because this is a new vendor. We haven't ordered anything from this. So we're going to call it an SQ. I'm just going to say that's going to be it. So I'm going to add our item for this SQ type of guitar. It's an inventory item. We're going to be tracking the inventory in the system, tracking the units, not just the dollar amount. So I want to pick the inventory name populating. Let's tab on through to the other side, tab on through. I'm not going to put a number. If we wanted a picture of it, we can take a picture of it, which can actually be useful. We could put a category, maybe guitar categories if we wanted to, but I'm not going to here. And then down here, we've got the amount initial quantity. You have to put something here because it's a required field. It's going to basically always be zero unless you're unless you first start the company file typically. And then you got to put a start date. I'm just going to say the beginning of the year reorder point. I'm just going to say zero on that inventory is the account that's going to go up when we purchase it, not with the purchase order, but when we populate the bill from the purchase order when we've received the guitars. Description, I'm going to call it a squire. It's a squire guitar. I'm not like a guitar expert, although I have one. I've got, well, I got a couple guitars, but I'm certainly not a guitar expert. We're just making this stuff up because guitars are cool. And so we're going to say the sales price is 244. And so, and then it's going to go to the sale of product income account, like all the other sale of product stuff. It's got the taxable item is on. So I'm going to do the standard tax that I'm just going to keep that. I'm going to copy the squire down here to be on the purchase forms as well. This description was on the sales forms that will be on the invoices and sales receipt. This one's on the purchase form, which will be the purchase order, also the bill or the expense form if we were to use those. And then the cost, I'm going to say is 168. That's how much we buy them for. That means it's going to be populated here on the purchase order for the 168, not the sales price, the 244. And the cost of goods sold is the account impacted when we make a sales type of document invoice or sales receipt. That's the expense related to us consuming the inventory at that point for revenue generation for the sale of the guitar. Preferred vendor is Fender. The preferred vendor is Fender. Why? Because it rhymes. That's why I prefer it. Why else would you prefer something? All right. So then we got the squires populating looks good movie B to the end quantity. I'm going to say we're going to get 20 of them, 20 squires. And then we're going to purchase them for a particular customer. So I'm going to make a new customer called new music, music stuff. Very creative name. That's the, that's the customer. So I'm going to say just add it, add it, add it like an addict, add stuff. So we're going to say there it is. So what's that? So now remember the customer is not necessary for the vendor. Our new vendor Fender doesn't really care about our new customer, new music stuff. But I want to put the customer on the purchase order so that when I get the stuff, the guitars, the squire guitars from the new vendor Fender, then we can turn around and sell it up making an invoice at that point. So there we go. Let's go ahead and save it. And we can of course cancel it, clear it, print it if we want. If you wanted to preview it, this is what it's going to look like. This is a form that goes to the external user. So you might want to, this is a form that you can customize and add your logo to and all that kind of stuff. Make reoccurring. We have the more option copy delete audit history. We can either save new, save send, which is often what you would do if you had an email address, but we're going to save it and close it. No impact on the financial statements here. But we can track it by going to the expenses side of things on the left hand side. We might track it, say by the vendor. And if you're in the business view, by the way, you might see what if I'm in the business views, what people probably are saying during the business view. You can find, you can go to the get paid and paid area and then you're in the vendors section down below. That's for you people that are saying that. So then in the vendors, we've got the purchase orders. We could sort them by purchase order. And there's that new vendor we set up fender, the new vendor, and we've got the one purchase order. So if I go into that, then we've got the purchase order. We can send it and we can copy it to a bill. So once we get the stuff, the box of guitars with the bill in it. Remembering that bill for layman's terms, normal terms outside of QuickBooks terms is different, more broad, less specific than bill within QuickBooks, which is a bill form, which specifically will increase the accounts payable. We'll do that at a future time. We also have in the expenses tab over here, the expenses tab in the expenses tab. And we can sort and filter this way too for purchase orders per se, for example, purchase orders. And then we can have all purchase orders, but maybe just the open ones. And there's our open purchase order. But what if you're in the, what if you're in the business view, people might be saying, then it's not under the get paid pay area. They put that other piece for some reason in its specific spot, which is under the, under the bookkeeping transactions up top and then under the expenses tab on the right. So it's there. They're just trying to confuse, just trying to confuse you. Why? Because that's, they can. So there's no change to the financial statements. We didn't even look at them. We don't need to look at a trial balance or anything because we didn't do anything to it. So I guess we'll just stop here and next time we'll look forward to receiving the guitars from that vendor. We set up the new one, the new vendor named Fender.