The description will show on Purchase Orders, Bills, Checks, and Credit Card Expenses.Įnter the cost the company pays for the products, and the Expense Account: Cost of Goods – Supplies and Materials. In addition, we can now add Purchasing Information by checking the I purchase this product/service from a Vendor box. The Product/Service Information window opens.Īgain, enter the Sales Information that appears on Customer receipts, with the Income account that tracks the money received. Select: Gear > Products and Services > New. The next Item will be a Non-Inventory Product, which is a tangible product you sell, but that you don’t track quantities on hand. In the Expense account, assign this Service to the Cost of Goods : Labor account. In the Cost, enter how much the Subcontractor is payed. If the company will hire a Subcontractor to perform this service on their behalf, you can implement job costing!Ĭlick I purchase this product/service from a vendor (if it’s just the company providing the service, leave this unchecked). Select Is Taxable if you will charge Sales Tax for this item.
If you don’t have a consistent price, you can also leave this blank to type it every time.Īssign an Income Account to track which of the company’s general offerings this falls under on the P&L report. To set up the Item List, select Gear > Products and Services or Sales > Products and Services. (Note: in a real clothing store file, this level of detail might be in the shop’s POS system, not necessarily in their QuickBooks file, but it’s a good illustrative analogy).
You could even include nested subcategories every item in the store if the owner wanted to track exactly what sold to each Customer! The Products and Services list would have Men’s, Women’s, and Children’s departments (categories) further Subcategories would be created for Shirts, Pants, Sweaters, Socks, etc.
Their Chart of Accounts would have Income categories for Clothing, Shoes, and Accessories, because you would want to see these distinct revenue streams broken out on a P&L report. Some bookkeepers get confused as to whether to include detail in the Chart of Accounts as Income categories, or whether to create the details in the Products and Services list. Second, when you run reports on sales, you will be able to determine which of the Products and Services are the most popular, and which have the best profit margin (which isn’t necessarily the same thing!). When you first set up a QuickBooks Online file, it’s very important to develop an organized, comprehensive set of items, for two reasons:įirst, these are the entries that will show up on the company Invoices, Sales Receipts, and Purchase Orders. The Products and Services List contains all the items and/or services your client company sells.
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