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.
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.
for services you sell or buy