Service items can include professional fees or labor that you
charge for or pay for. For example, you may charge clients for your
consulting time, but pay for janitorial services.
If you charge
for and pay for the same service
You can also set up a service item "on the fly" as you need it. More...
For example, if on an invoice you enter the name of an item that has not been
set up, QuickBooks will ask you if you'd like to set the item up. You can
set it up then without leaving the invoice.
These instructions tell you how to add service items one at a time. Follow these steps if you are new to QuickBooks. Otherwise, you can use another window to add or edit multiple service items and paste from Excel.
To do this task
Go to the Lists menu and click Item
Click Item at the bottom of the list and click
In the New Item window, click the Type
drop-down arrow and then click Service.
Important: You cannot change a service item
to another item type.
Enter an item name or number.
What you enter here appears on the drop-down list of items when you are
filling out a sales form or purchase order. Enter a name or number that
will help you distinguish this item from all the others on the list.
If this item is a subitem of an existing service item, select the Subitem
of checkbox and specify the parent item's name. See Creating
(Optional) If unit of measure is available, assign a unit
Enter a description.
This description will display on the sales and purchase forms. If the description
varies, you can leave this field blank, set up a separate item for each
possible description, or enter the most common description and change it
on the sales or purchase forms as necessary.
Enter a rate for the service.
The amount can be either a flat fee or an hourly rate. If you purchase
this service, enter the vendor's rate. If you sell this service, enter
the rate you charge your customers. If the rate varies, you can leave this
field blank, set up a separate item for each possible rate, or enter an
estimate and change it on the sales or purchase forms as necessary.
(If you charge sales tax) Click the Tax Code drop-down
arrow and choose the sales tax code you want to assign to this service item.
Note: The Tax Code option
doesn't appear if you haven't set up QuickBooks to charge sales tax.
Click Custom Fields to fill in any custom
fields that apply to this item.
Click the Account drop-down arrow and choose an
income account for sales and an expense account for purchases.
If none of the income accounts is a good match, create a new one by choosing
Save the item.
Troubleshooting item problems
How to change an item's type
Add or edit multiple service items