QuickBooks uses the following terms that you should be aware of:
How this term is used in QuickBooks
Anyone who pays you. This can be either businesses or individuals who
purchase goods or services from you.
A way to divide charges and expenses for single customer into multiple
Anyone you pay for services or products, except for employees. This can
include businesses that supply you with raw or finished goods, businesses that
provide maintenance or repairs, office supply companies, shipping companies,
subcontractors, utility companies, your landlord, tax agencies, or
If you make a one-time payment, you may choose to add the recipient to the
Other Names list so that the company is not included in reports about vendors.
If you use the Other Names list, you can move them to the Vendor list later if
necessary. If you add them to the Vendor list, you cannot move them to the
Other Names list or delete them from QuickBooks.
An item is anything you want to put on an invoice or purchase order. This
includes anything that your company buys, sells, or resells in the course of
business, as well as any fees or charges (such as shipping charges or rush
order fees) that you want to include on invoices. Items can include parts (both
raw materials you purchase and finished goods you sell), services, labor,
discounts, and taxes.
An inventory item that is assembled by combining multiple inventory items
from your items list. For example: if you sell medical supplies and also make
and sell a first aid kit comprised of a box, a label, bandages, antiseptic
wipes, antibiotic ointment, aspirin and safety pins—the first aid kit is
the assembly item. The components of the assembly item (label, box, and so on)
are also inventory items. When you build an assembly item, QuickBooks
automatically updates inventory quantities appropriately.
A list of all items created and available for your company.
An account is set up to track how much money your company has, how much
money it owes, how much money you make, and how much you spend. There are
several types of accounts available—real world accounts (such as checking
accounts), income and expense accounts that you use to group transactions for
reporting purposes, equity accounts, and liability accounts.
Chart of accounts
A list of all the created and available for your company. When you set up
your QuickBooks company, you can choose a preset chart of accounts designed
especially for manufacturing or wholesale/distribution companies.
A way to categorize income and expenses. For example, you can use the Class
field to track information about each department, location, profit center, or
product type separately.
Here are some general business terms that are used by manufacturers,
wholesalers, and distributors. This table describes how they are used in
Manufacturing and wholesale industry terms
How the term is used in QuickBooks
Someone in an organization assigned to a customer and/or an invoice. For
example, the person in your business that takes the orders for that company or
an outside rep that is responsible for bringing that customer to you. You can
customize QuickBooks forms to view Sales Rep information, and you can also
generate reports based on the sales rep to calculate commissions.
Sales or revenue amount.
Physical Inventory Count
A periodic physical count of the quantities of items you have on hand.
Counting a different inventory shelf or section each day, week, or month.
Cycle counts allow you to keep a constant watch on your inventory.
Checks of specific portions of your inventory at specific intervals.
Spot-checking helps determine the accuracy of the inventory quantities in
QuickBooks. Spot checks on inventory can help you make sure that transactions
are being recorded properly in QuickBooks.
An upfront deposit is money a customer has given to you to spend for tools,
materials, supplies, and/or labor for a specific job or order.
Having goods sent directly to the customer from a 3rd party.