welcome to the fit small business
quickbooks online training course in
this lesson we're going to cover how to
set up the products and services list in
quickbooks online to follow along with
me login to your quickbooks online
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quickbooks online you can also find a
link below this video to our full
quickbooks online course and other
helpful resources let's get started
if you invoice customers for products
and services sold or if you need to keep
track of inventory cost in quantities
then it's important that you setup the
products and services list in quickbooks
online setting up your products and
services list will allow you to do a
couple things quickly create invoices
that will automatically populate the
quantity description and price for the
product or service fields on the invoice
it will also allow you to keep track of
your sales by product or service this
will allow you to gain insight about
what products are selling versus what
products are collecting dust on the
Shelf for the purposes of this video we
will use a fictitious company called
paul's plumbing as you view this video
think about how the information might
differ for your business to begin after
you sign into your quickbooks online
account click on the gear icon located
to the left of your company name and
select products and services from the
products and services list we want to
click the blue button in the upper right
hand corner to create a new product or
service item when you create a new item
in quickbooks you have three options to
choose from non inventory service and
inventory let's start with inventory the
inventory item allows you to track cost
and quantity for items that you buy and
sell setting up inventory items will
allow you to keep an eye on the
inventory stock level as items are sold
by doing so you will be able to keep
track of when you are running low on an
item so that you can place an order with
the supplier before you run out we're
going to go ahead and set up a inventory
item for Paul called stainless steel
faucet
let's go ahead and select inventory
we'll need to turn on the inventory
tracking button here and then that will
take us to the setup screen in the first
field you want to put the name of the
item that you're setting up if you track
your inventory by SKU then you can enter
that information in the SKU field the
category field allows you to categorize
inventory items for example if you sell
t-shirts then you can set up a t-shirts
category and then set up the items that
will fall into that category like men's
t-shirts ladies t-shirts and kids
t-shirts we want to set up the inventory
that is currently on hand so we'll enter
that in the next field and to the right
of that we want to put the effective
date of that inventory quantity the
inventory asset account is automatically
assigned by QuickBooks do not change
this account or it could result in
inaccurate quantity and cost
calculations in the sales information
field you want to put the description of
the item that you want to appear on your
customers invoices and sales receipts
typically this will be the same as your
item name above so you can just copy and
paste the info in there this sales price
or rate is the amount that you sell the
item for the income account field is the
account that you want to track your
income for this item you can click the
drop down and select the account from
the list the purchasing information
field allows you to put the description
of the item that you want to appear on
your purchase orders that you send to
suppliers when you place orders for this
item again this can be exactly the same
description that you use for your
customers the cost that you purchase the
item for and then the expense account
field is automatically assigned by
QuickBooks
it is a cost of goods sold account do
not change this account or it could
result in inaccurate quantity in cost
calculations last but not least if you
have a picture
of the inventory items that you're
setting up there is an area here up at
the top or you can actually upload that
picture once you have completed all the
fields we are ready to save now we'll go
back to the products and services list
where we should see our new stainless
steel faucet there we go on the list
perfect next we want to go back to the
products and services list and we want
to set up a non inventory item a non
inventory item allows you to track the
cost but not the quantity for items that
you buy and sell for example Paul
purchases a variety of odds and ends
such as nails glue and solutions to
unclog drains he does not need to keep
track of the quantity but he does need
to keep track of the cost for these
items so he is going to set up a non
inventory item called DrainO
and if you noticed here all of the
fields are pretty identical to the
inventory part setup we've got the name
of the item we've got an SKU field we
can track categories the sales
information will be the description on
our customer invoices and sales receipts
we want to track how much we sell the
item for and again similar to the
inventory part you are able to select
the account that you want to track the
income for this item so simply just
click the drop-down to the right and
select the account that you would like
to use to track that income last but not
least is the expense account field
unlike the inventory item this expense
account is assigned by you and not by
QuickBooks so just select the drop-down
arrow and you can select the expense
account that you want to keep track of
here if you have a picture of it on
inventory item that you're selling again
you can also upload that in this screen
at the top we'll go ahead and save our
changes and go back to the products and
services list to make sure we've got
DrainO there now and there it is last but
not least we want to set up a service I
so we'll go back to new selecting the
service item allows you to set up
services that you sell to your customers
for example plumbing services
bookkeeping services and tax preparation
services will fall under this category
in this example we will set up plumbing
services for Paul in this first field
will put plumbing services which is a
description of our item again we've got
similar fields to what we've had with
the previous two setups we've got our
description that's going to appear on
our customer invoices and sales receipts
here that we've entered along with what
we're charging the customer for this
service and the account that we want to
track the income in so we'll go ahead
and save our changes here and we'll go
back to the products and services list
and make sure plumbing services now
appears on our list and there it is
perfect once you have added all of your
products and services you can run a
report to see the entire list from this
screen there's a run report button up at
the top here so just click this and then
the report will display for the products
and services list here's our report the
first column shows the name of the
product or service we've got our
description our type of item the price
that we sell the item or service for the
costs that we pay for the service or the
item and the quantity for the inventory
part be sure to review this report for
accuracy if for some reason you do need
to make modifications to a product or
service you are able to do so so back on
the home screen we'll go ahead and
navigate that to the products and
services list so click on the gear icon
products and services the way to edit an
item is to click the arrow to the right
of the Edit link and that will open up
this screen where we can make any
changes that we need to make and then
save them you cannot delete our product
or service in QuickBooks
once you have
used it in a transaction for example
created an invoice for a customer this
is due to the fact that all transactions
are linked to the financial statements
however if you do have a situation where
you no longer need an item that is
currently on your product and service
list you can inactivate that item this
simply means that it will no longer
appear on the products and services list
but it will still appear in financial
reports if use in a transaction to
inactivate an item we want to click on
the drop down arrow to the right of the
Edit link and select make inactive once
we do that this item will no longer
appear on the products and services list
but as mentioned previously it will
appear in financial statements that
wraps up the section on how to set up
the products and services list in
QuickBooks Online to access this course
or any of the others in the series or
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