When setting up your QuickBooks Online account, it is very important to create a complete and well organized Products and Services list. These products and services volition exist mapped to your Income and Price of Goods Sold (COGS) accounts that prove upwardly on your Turn a profit and Loss Statement. Every product and service particular that your company purchases and sells should exist setup in QuickBooks Online. Do not manually enter items on sales and purchase forms.

Your Products and Services are Included in Purchase & Sales Forms

The products and services on your listing will show upwards on your customer estimates, invoices, sales receipts, buy orders, vendor bills and expenses. When y'all run sales reports that include your products and services it will be easy for you to determine your sales trends.

If you lot are setting upwardly purchasing, then you should select, "I purchase this product/service from a vendor" and in the "Toll" field enter $0.00 for the buy price of the product or service, then enter your preferred vendor if applicable. We recommend entering nix cost and then that the most recent purchase of the item will determine the electric current cost of that item.

In the "Expense account" assign the product or service detail to the "Cost of Goods or Services Sold" (COGS) account that is advisable for the item being purchased, whether it is a product or service particular. The detail could be a "Labor" (Subcontractor) expense, or information technology could exist a "Material" expense, or "Other" Cost of Goods of Services Sold blazon expense.

The description that you enter in the "Purchase" section will show upwardly on your Buy Orders, Bills, Checks, Credit Card and Depository financial institution Expenses. Remember to plow-on "Prove items table on expense and purchase orders" under "Account and Settings", "Expenses", "Bills and expenses". This is what allows you to pick an item from your Product and Service list.

Item purchase info

When y'all create an detail, it is linked to a "Sales" account to track the "Income" information technology produces, and a "COGS" business relationship to track how much you spent on the purchase of the product y'all sold. When customer invoices or sales receipts are created, the related Income and Expense entries are automatically created in your QuickBooks Online account.

There are 4 Types of Products and Services in QuickBooks Online

Inventory Items – In the Plus version of QuickBooks Online you can add products that you sell, tracking the on-hand quantities and the toll to purchase the items. These items may or may not be taxable products. Remember to turn-on "Runway inventory quantity on hand" in "Account and Settings", "Sales", and "Products and Services". Note that yous will not be able to create a transaction with an "Inventory" product before the "start appointment" of your on-hand inventory, and so be sure that you enter a start appointment long before your start purchase or auction appointment. Do not enter a starting quantity. Enter a value of ZERO, otherwise QuickBooks Online will create an Opening Balance Equity entry.

Inventory Item Setup

Non-Inventory Items – These are concrete products that yous sell but you do not rail the quantity on-hand. These items may or may not be taxable products. They are typically things that become into an assembly or installation for which you do not customarily, or cannot track quantities of.

Services – These are services that yous sell to your clients, they may or may not be taxable services, it depends on the sales revenue enhancement rules for your state and business type. Yous may sell repair, pattern or installation services, or you lot may sell professional, merchandise, consulting or technical services.

Service item entry

Bundles – These are not "separate" products or services. This would exist a parcel of product and service items that are always sold together. You would be choosing pre-existing production and service items to include in the "bundle" After you accept created all of your products and services you can group some of them together in a logical gild. When you create a bundle of products and services information technology will be easy for yous to select grouped products and services. If you desire the customer invoice to show the individual items in the bundle, select "Display bundle components when press or sending transactions".

Bundle items entry
Regina Pitts
Regina Pitts Master Accountant & Bookkeeper
Fellow member of the QuickBooks ProAdvisor Programme

Accounting and Bookkeeping Back up by a QuickBooks ProAdvisor Program Member

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