QuickBooks Online- Understanding Items, Products and Services
- Last Updated on: August 23rd, 2018
- Posted by: admin
- Category: QuickBooks Online
Here in this article, we will talk about the Items, Products and Services in QuickBooks Online. This will help you to gather more information on how can you grow your business faster and reliable.
Understanding Items, Products and Services
When you create an Item, you link it to Income and Expense Accounts. In QuickBooks Online, items are the products and/or services you sell. When you create customer invoices, enter purchase orders, and work with inventory you will use items from the products and services list. As a business person, if you want to keep track on what you sell to Customers and buy from Vendors, you need to create invoice in QB. In QB online, it is compulsory setting up the products and services list.
In this article, we’re going to discuss how to set up your item as product and service in QB Online. If you need any support contact our QuickBooks Online Support team.
Why you need to set Item as Product/Service?
When you first setup your QuickBooks, it’s very important to set up your items in organised way for some following reasons:
- You can quickly and easily create invoices that will automatically occupy the quantity, description, and price for the product or service fields on the invoice.
- You can keep track of your sales by product or service.
- These are the entries that will show up on your Invoices, Sales Receipts, and Purchase Orders.
- When you run reports on your sales, you will be able to determine which of your products and services are the most popular, and which have the best margin.
Related article: How to Prepare QuickBooks Online Budget
How to set up Items as Product/service?
First let’s start to know whether your item is product or service:
- Go to Sample Company menu, click on Product and Services.
- Click on New tab to add a product/service.
- Enter the name, description and price/rate of the product/service.
- Specify the income account.
- Check whether it is taxable or not.
To track the purchasing of the item, check the box “I purchase this product/service from a vendor”.
- Enter the description, cost and expense account.
- Click on Save.
- To create a sample invoice, go to “+” tab and click on Invoice.
- Enter your customer detail such as name, email-id, address, terms, invoice date and due date.
- Enter description and amount of the product/service.
- You will see the column of quantity and rate in invoices if you have chosen to track the quantity.
- To change all the preferences of product/services,
- Go to the Sample company,
- Click on the Company Settings under Setting menu.
- Go to the Sales tab, click on the pencil icon to edit Product and Services.
- Uncheck all the options and click on Save.
- Click on OK.
- You can also add discounts on your item.
Hope this will be helpful for you. If you also want to learn more important features like tracking Sales Tax, Inventory, or any issues, get in touch with our well qualified and experienced accounting experts by our QuickBooks Support Phone Number “+1 855 441 4417” team.