Full life cycle sales for purchasing

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foreign [Music] [Music] I'm going to open this coffee shop and right next to it I'm gonna have a factory I use this to make and store Goods I need this to run my coffee shop I need some simple stuff like coffee beans flour sugar and stuff like that what I'm going to do is I'm going to find a vendor who can deliver this stuff for me so I'm gonna go to Google find out who the nearest vendor is say call him ABC Goods or ABC foots and I'm going to call him over the phone and say I need flour say 100 pounds I need sugar say 50 pounds and I need coffee beans say 20 pounds to start with so this vendor is going to take some time to deliver the goods say in five days he's gonna deliver the goods he's gonna deliver flower sugar and coffee beans in the respective quantities and somebody in the stores is gonna receive them and store it somewhere on the location a couple of days later he sends us a request that request is for payment it's gonna say okay bill number two three two zero five just some number and it's going to say flower 100 pounds and say one pound costs a dollar so that's dollar hundred and sugar is 50 pounds and one pound costs say two dollars so that's hundred dollars and coffee beans is 20 pounds and each pound say costs four dollars it's going to be 80. so this is at the rate of one dollar per pound this is at the rate of two dollar per pound and this is at the rate of four dollar per pound right and the total here is going to be 280. and say there's a tax of 10 percent sales tax that's going to be 28 and the total is going to be 308 dollars that's what we should be paying this vendor again this comes as a paper invoice or an email and it comes to my address and that's the request for payment so I have some time to clear this invoice as soon as it send say this is sent on Jan fifth this was sent on say January 1st this came in on January 5th and say this came on January 6th now I have some time to pay this invoice I don't need to pay it immediately so I have some time I take my time and maybe on Jan say 25th I pay this invoice so what we are doing is basically sending a check or cash 4.308 so let's see what's happening here so there are four