Using items to track costs as well as sales
For each service item, each item you purchase and then resell, and each item for reimbursable
expenses, we suggest you set up the item in
your Item list to record both the cost and sales price. QuickBooks tracks the cost of the item
when you enter a bill or write a check for that item, and it uses the sales price when you create
an invoice for that item. By doing this, you can see costs versus revenue per item on reports.
Setting up items to record cost as well as sales price
When you set up your service items, make sure to select the "This service is performed
by a subcontractor, owner, or partner" checkbox in the New Item window, even if the service
item is for employee labor. When you set up Other Charge items for reimbursable expenses, select
the "This is a reimbursable charge" checkbox.
By selecting this checkbox, you can enter what you paid for the item
as well as what you sell it for. When you mark this checkbox, QuickBooks adds separate fields for
tracking purchases and sales information. Selecting this checkbox also ensures that your job cost
report will compare actual costs versus actual revenue or estimated costs versus estimated revenue
for each job phase.
If you are using items to track phases of a project or job, do not enter an item
cost or sales price in the Edit Item window—you won't have a specific price for
generic phases of a project or job as they will change with each job. You can later specify the
cost or sales price when you use the item, for example, on your sales form.
Only enter cost and sales prices directly in specific items that you
purchase and resell or in items with specific service rates.
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