Your QuickBooks Item list shows the products and services you buy and sell.
When you're recording a sale or a purchase, use items from this Item list
to fill out the purchase or sales form. QuickBooks uses information you've
recorded about each item to assign the sale or purchase to the appropriate
income or expense accounts, and to generate sales reports and other reports
based on items.
Important: If you use QuickBooks Point of Sale software, you do not
need many Items in QuickBooks. Instead, you will use the QuickBooks Point of
Sale software to set up your products. See
integrating with QuickBooks Point of Sale
software for more information.
If you enter individual sales or summaries of your daily sales and you want
to track the details of the items you sell, you can set up your item list with
your products and services.
If you sell services, create service
items for each service (even the subcontracted services) you sell.
Create inventory type
items if you keep products in stock and want to track the products you sell
as inventory (that is, you want to track your quantities on hand, cost of goods
sold, and the value of your inventory). When you create inventory type items,
you enter the amount you've paid for the product as well as the price you
plan to charge customers for the product. You can set up QuickBooks to use average
cost or FIFO to determine the value of your inventory.
Note: FIFO is only available with QuickBooks Enterprise Solutions Advanced Inventory.
If you track raw materials in inventory and then assemble several of the
items into a final product (finished goods),
create inventory assembly
items. For example, a bicycle shop might sell bike frames, seats, wheels,
and gearshifts separately and want to track each of these items individually.
However, the shop also sells assembled bicycles, which are made up of a frame,
two wheels, one seat, and one gearshift. This shop can create an assembly item
called "Bike," which tracks the finished goods separately from the
component inventory parts.
If you do not need to track inventory items,
create noninventory type
items for each product you sell. When you create noninventory items, you
enter the amount you charge customers for the product.
If you often enter the same set of items all at once on a sales form, use a
group item to save you the
effort of entering the same set of line items again and again. For example, in
a computer store, if you generally sell a complete computer that includes the
CPU, Keyboard, and Mouse, you may want to create a group item called
"Computer," which contains one CPU, Keyboard, and Mouse item.
If you enter sales summaries, you can set up
payment items to track your
If you track each sale, you can create payment
Sales tax Items
If you collect sales tax, create QuickBooks
sales tax items and
sales tax codes
to track sales tax on your sales.