Services are different things within your business that you either charge for or purchase. The first picture shows the basic Service type when you select to create a Service Item. Services can be a multitude of items that are not usually tracked through Cost of Goods Sold or asset accounts.
This second picture shows the only required fields when creating the item. For most items, these are the only required fields other than the selection of the type of item.
The next picture shows the differences when putting a check mark in the box This service is used in assemblies or is performed by a sub-contractor or partner. This box is checked usually when the item is used to track both the expense and the income for the item.
Services can be anything from the professional consulting fees charged to a client to the office supplies purchased for the business. While you have to include an account in the Income Account box when creating an item, the Rate/Sales Price box can remain at $0.00.
To add Service Items to the Items List, follow the steps below:
- Items List
- From the drop down select Service
- Enter the Item Name/Number
- If the Item is a Subitem of
- Enter a check mark
- From the drop down select the item on the list (Must be the same Item Type)
- If Unit of Measure is applicable, select (Click link for more on Unit of Measure)
- Check This service is used in assemblies or is performed by a subcontractor or partner, (if applicable)
- On the Purchase Information side
- Enter the Description, (will fill in both the Purchase and the Sales Transactions)
- Enter the Cost
- The Expense Account will usually default to a Cost of Goods Sold account, (change this if this is a purchase such as office supplies)
- The Preferred Vendor is optional information
- On the Sales Information side
- The Description would have auto filled from the Purchase Information, (change if needed)
- Enter the Sales/Rate amount, (if desired or needed)
- If Sales Tax box appears, enter a Sales Tax code
- Enter an Account in the box
- Click OK, or if creating more than one item created at a time, Next