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Use items to track both cost and sales price

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 you 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. It also adds separate fields for tracking purchases and sales information. Selecting this checkbox also ensures that your job cost report compares actual costs versus actual revenue or estimated costs versus estimated revenue for each job phase.

Important: If you're 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.

See also

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