and now we will learn the last part of setting up your QuickBooks Online putting in items on
the items list an item in this context is a product or service that we buy or sell this
means that an item is something that we would list in the body of a receipt or the middle of
an invoice for example let's imagine this is the invoice window in QuickBooks Online and we're
filling out the invoice for one of our customers we would have to put the quantity of the item in
the invoice window and all the other information about the item would come from the items list
that we set up then all we have to do is click here for the pulldown list and choose an item
for example apples and the description and the price each would come up QuickBooks would then
multiply the quantity times the price that we set up for that item and would get us the total that
we would have to pay apples are an example of a product item that we would put on an invoice or
a receipt on the same list that we're setting up we could also set up services like video
hours and then once we chose video hours from the pulldown list that we're going to set up right now
QuickBooks would multiply the price that we set up on the list times the quantity that we put in in
the invoice to tell us the total that we have to pay so it's very convenient to have an items list
so that when we make an invoice or a receipt we can just choose the item from the list and have
QuickBooks do the rest of the work for us the only thing we have to consider when we set up
the items on the items list is making sure that the correct income account will increase when we
put the specific item on the list for example if we put video item or video service on a receipt or
an invoice we want to make sure that the video income account is the account and the chart of
accounts that records that invoice for that item of service however if instead we put another item
on the list in this case editing service we would want to make sure when we set up the editing item
that if we put the editing item on a receipt or an invoice that it is the editing income account that
increases not the video income in other words when you set up an item on the items list it is not
enough to put the name and put the price you also have to tell QuickBooks which income account will
record the income for that item now here we are at the dashboard home page of QuickBooks Online
and to put an item on the items list you go to the right and click the setup cog then go over to the
list column and click products and services of course if it's the very first time you're coming
to this window you get this green button with this picture so we click the green button so we
can start putting in our services this item is not a product it's a service so we will click
service and now we have the data fields to put in the service there are several that you can explore
and experiment with on your own time but we will only put the name as video ok we will put the we
will put the sales price and rate as 300 and the only other piece of information that's required
is the income account when we click the arrow we get our chart of accounts the income account that
should increase when we do a video service will be video income and again you could put additional
information as well as a picture if you want to explore and experiment and with extra data
fields on your own time but for this course all we need is the name price and income account when
we click Save and close we see that we now have a list instead of that green button these two items
are items that quickbooks online already set up for us and we will ignore and disregard these and
put the other item that we will use while we're in the products and service lists we click new and
again this is a service the name is editing well I like to make it in capital it's nice editing and
of course the rate is 140 an hour and the income account for editing is not video income the income
account for editing is editing income this way when we put the editing item on a receipt or an
invoice the money that comes in from that service will be recorded in this particular account save
and close and now we have the two services that we put and the other two services that QuickBooks
Online put and now our QuickBooks Online is set up and ready for our first transaction