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Item Types in QB

Items in QuickBooks refer to the products, services, and other charges that a company lists in their accounting software. There are several types of items, including inventory parts, non-inventory parts, services, other charges, subgroups, discounts, payments, sales tax items, and sales tax groups. Inventory parts are products purchased for resale, while non-inventory parts are not meant for resale. Services and other charges are also item types. Groups combine multiple items onto an invoice line. Discounts and payments are used to track price adjustments. Sales tax items and groups are needed to calculate and collect taxes owed to different government entities.

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63 views6 pages

Item Types in QB

Items in QuickBooks refer to the products, services, and other charges that a company lists in their accounting software. There are several types of items, including inventory parts, non-inventory parts, services, other charges, subgroups, discounts, payments, sales tax items, and sales tax groups. Inventory parts are products purchased for resale, while non-inventory parts are not meant for resale. Services and other charges are also item types. Groups combine multiple items onto an invoice line. Discounts and payments are used to track price adjustments. Sales tax items and groups are needed to calculate and collect taxes owed to different government entities.

Uploaded by

Rehan Farhat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Items in QuickBooks

Items in QuickBooks
 In simple terms, the products and services that your company sells to
consumers are called items.
 If your company sells electrical items like
TV, Iron, etc. Create items called TC, Iron

 If your company offers a service such as car recovery service,


then you will create an item called Car Recovery.

 When you purchased groceries, like bread, milk and eggs. The bread,
milk and eggs were all items listed on your receipt along with the
price. The grocery store had to list those items in their accounting
software before you could buy them.
 There are several types of items that must be categorized in
QuickBooks The complete list of item types are as follows:
Inventory Item
 Inventory Part: When you purchase a product to be sold
later, those products will be classified as inventory parts
when you create the item. Inventory parts are not an
expense to your company when purchased from the
manufacturer. They are initially classified as inventory,
which is an asset on your company’s balance sheet. The cost
of purchasing a product for resale will only be expensed
when it is sold to your consumers. For example, if your
company purchases 100,000 worth of TV’s to be held in the
inventory until they are sold, then your inventory will
increase by 100,000. When the TVs are sold, your inventory
will decrease by 100,000 but your expenses will increase by
100,000.
Non Inventory, Service, Other
Charge and Sub Total
 Non Inventory Part: A non inventory part is an item that a company
does not keep track of in inventory. It can be an item that your
company purchases, but does not resell such as office supplies or boxes
for packaging.

 Service: You will create service items if your company provides a


service, such as construction, car repair or consulting services.

 Other Charge: You can create an other charge item for other than your
normal service or product charges. You may also use this type of item to
charge for shipping and handling.

 Subtotal: The subtotal will add up the line items immediately


preceding it. It’s most commonly done just before the sales tax is
added.
Group, Discount, Payment Items
 Group: You can create a group of items that will automatically be added and
totaled on one line of the invoice. For example, if you are selling a washing
powder and dish washing detergent you can create a group to include those 2
items for one price. The washing powder item and dishwashing detergent must
first be created as separate items, then you will create a group item to include
the items of your choice. Using this item type when possible will help you
create your invoices quickly and efficiently.

 Discount: This type of item will allow you to deduct a certain amount from the
invoice total. A discount can be set up as a percentage, such as 10% off, or it can
be set up as a Rupee amount.

 Payment: A payment item type can be used if someone made a partial


payment prior to the final purchase. For example, if you are going to provide
car repair services for 50,000 and require a 20% deposit, then your customer
will give you a partial payment of 10,000. Upon completion of the services, you
will use a payment item type to indicate that the customer has paid 10,000 and
the balance of the invoice will be 40,000.
Sales Tax
 Sales Tax Item: This is a very important item type if your
company is required to charge sales tax. You will create a
sales tax item for the government entity that you must
collect sales tax for. For example, if you’re business is
located in Lahore, then you will create a sales tax item to
collect sales tax on behalf of Government of Punjab.

 Sales Tax Group: You will create individual sales tax items
to collect sales tax for federal government and another sales
tax item to collect for provincial government. When you
make a sale to a customer in which you need to charge
federal and provincial sales tax, you can create a sales tax
group which will automatically calculate sales tax for
federal and provincial government at once.

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