and now we will learn how attorneys manage their items list you may well ask what is the items list
well an item is a service or product that one sells to a customer or client it is something
you would list in the body of a sales receipt or an invoice when you make the document after
providing the service for the client each item is connected to an income type of account in the
chart of accounts every time an item is placed on an invoice the income account for that item
goes up for example let's imagine Ross wants to track the income from the notary service
that he gives to his clients he wants to track that separately from all the other income that
he earns well in this example they would be only two items Ross would put on an invoice
or sale receipt general legal services rendered is one item he could list and then the notary
service he would list separately he wants the income from the notary service to be recorded
in one particular income account in the chart of accounts and all the other income can get
recorded in the other income account legal fees earned so what would this look like well if he
goes to make the invoice for the client and he charges the client for general legal services he
would list that in the body of the invoice and that $500 would be recorded into this account
income from legal fees but then if he put this other item on the invoice he charged the dollar
50 to notarize and he wants to track that income separately he would then have to put a separate
income account in the chart of accounts and then connect that item to that income account
so that when he puts the item on the invoice it's the income from notary service account so that
means that the income from this notary service item would be recorded in this separate income
from notary services okay now before we opened the items list let's make sure the chart of accounts
is prepared with the income accounts that we have from the main menu we click list chart of accounts
now the bottom-left button controls the lists so we click account new now we know that this is an
income type of account so we click income now we click continue and then make sure your cap locks
is on and type in income from notary service okay then click Save and close now we have
one account for income for legal fees for any of the general legal service and another account for
income that will track the income specifically for the notary service now we can add items to
the items list from the main menu click list items list in the bottom left button of the items list
click item new now everything we do is a service so we click service now the name of this service
that we're adding is legal services rendered and that's the general service that we provide
regardless of what we do except for notary so we click here and we type in legal services rendered
and then of course the income account we connected to is income from legal fees
click the account pulldown choose income from legal fees and then click Next then of course
the next service we provide will be notary service and that account that we connect
to is income from notary service then click OK we can now look at the chart of accounts
and see if it has the name legal services rendered then it's goat you gets recorded
into the income from legal fees account but if we put notary service on the invoice that money
amount will be recorded in this income account income from notary services now let's take a
look if we open up an invoice you can see that if you click in the body of the invoice where
it says item you now have two possible items to choose if you choose this one income from
legal services rendered whatever money amount you put here will get recorded into the income
from legal fees and if you choose notary service on the next line whatever money amount you put
there will go into the income account income from notary services let's close this window click no
because we're not saving it now we will not be using notary service for the first part of the
course so what we will do is we will click item make item inactive this way it won't clutter up
our list and we can click here to see it if we want to reactivate it same thing with the
chart of accounts we should click on income from notary service because we won't be using it for
a while in this course then in the bottom left click account make account inactive if we ever
need to reactivate it we could always click here just like we learned in a previous video