In QuickBooks, an item is anything that your company buys, sells, or resells
in the course of business, such as products, shipping and handling charges,
discounts, and sales tax (if applicable). You can think of an item as something that shows up as a line on an invoice or other sales form.
Items help you fill out the line item area of a sales or purchase form
quickly. When you choose an item from your Item List, QuickBooks fills in a
description of the line item and calculates its amount for you.
QuickBooks provides 11 different types of items. Some—such as the
service item or the inventory part item—help you record the services and
products your business sells. Others—such as the subtotal item or
discount item—are used to perform calculations on the amounts in a
Note: Retail businesses: Set up your items according to
how you enter your sales, either every sale or sales summaries.
What is the relationship between items and income accounts?
Items handle the behind-the-scenes accounting. When you create an item for a service or product you sell, you associate it with an income account. When the item is used on a form or register, it posts an entry to that income account and another entry to Accounts Receivable or another appropriate account.