and now we will do the very last part of setting up a company file putting in items on the items
list an item is a product or service that we buy or sell therefore an item is something
that we list on a receipt or an invoice here is what a typical invoice looks like if we put the
merchandise that we sell across the columns of the body of the invoice then that merchandise
is an item that belongs on the items list that's what gives QuickBooks the ability to list it for
you when you create an invoice an item can also be a service item like Holden's video hours but
regardless of whether it's a merchandise item or a service item anything that you would list
across the lines in the body of an invoice is an item that belongs on the items list let's open the
items list together move the mouse pointer to the top left of the main menu and click lists
item list let's make it wide enough so that we can see all the columns now let's talk about the
important columns and the important pieces of data for each item that you will put on this items list
when you put a new item on the items list you must tell QuickBooks the name you must have a
description you must know the price per hour or price per unit and of course you have to tell
QuickBooks what type or what kind of item this is in a moment we will open the new item window
the first piece of information QuickBooks asks is what type of item this is now in our case we
will only choose service because we will be only listing services on the invoices or the receipts
when we make a sale of a service to a customer however the other item choices are things that
could be listed in the body of an invoice or a receipt things like discount or other charge
are different item types that do appear in the body of sales receipts and in the body across
the columns of an invoice however these are more advanced items that we will learn about in future
videos each item we put will be type service when you create an item you must tell QuickBooks which
account in the chart of accounts is connected to that item for example if Holden did a video job
for a customer Holden would want the money amount that he earned for that video job to be recorded
in the account called video income however if he made an editing job for a customer he would
want the money that he earned for that editing job to instead accumulate in the other income
account editing income this way he would know the difference between the money he earned for
video service compared to the money that he made for editing service that's why when he puts the
video service on the items list he will connect it to the video income account and when he puts the
editing item on the items list he will connect that one instead to the editing income account
here is all the information we need to be able to put Holden's two services on the items list
you may pause the video at this point if you want to go back and look as you record them or
you could follow us step by step in the bottom left corner of the items list you click item and
then click new and of course the new item window opens up as mentioned before clicks servus the
name of the first item is video the description if you click in the description field you will
type video weddings on site on site the rate per hour for video weddings on site is 300 do
not put a dollar sign or a decimal point type in 300 and then push the tab key on the top left of
your keyboard now which account do we want the money to be recorded in when we put the video
item on a receipt or an invoice when we click here we get the chart of accounts that we put
in in the previous video in this case we choose video income and when we click OK we can see all
the information about the item has been saved and will show across the items list let's put in the
editing item item new it is a service the name is editing the description is editing prior video
prior recorded video the rate per hour for doing editing work is 140 do not put it all assigned do
not put a decimal point just push tab and the account in our chart of accounts that records
all the money that we earn for editing income for editing will be the editing income account click
OK look at your items list if every part looks the same as mine congratulations you're done with
the file setup and we can enjoy the next video where we will record Holden's first transactions