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in this video were going to take a look at the accounting side of the purchase order process were going to see what accounting entries are made when you receive inventory when you receive a purchase invoice against a purchase order and then what happens when you pay your supplier were going to see what happens when the invoice value does not match the value at which youve received the inventory and then finally Im quickly going to cover the differences between cost of sales accounting and periodic accounting the process starts by adding products to a purchase order when you add a product to a purchase order the account code thats used is the one thats set as the asset code on that particular product Ive also added an on stock item to this purchase order to show you the difference between the two weve not got any tax on this purchase order to make the numbers simpler so weve got a single inventory item here costing 10 pounds and then a shipping charge of two pounds when I go
