Jess Stratton shows how to turn on purchase orders and inventory tracking in QuickBooks Pro 2018. She also shows how to set up service and inventory parts to build a sales catalog.
- [Instructor] It's time to start adding items, both service and sales. A service item is one that's not a tangible product, such as a house call to fix something, a haircut, or a dog grooming. A sales item is a product. In our case, customers can purchase flowers or wedding arrangements. You'll have to find out what your state regulations are, whether they charge sales tax on services and sales or just sales or just services. We'll work with sales tax in the next video. But let's add a sales item and a service item.
The first thing that we need to do is make sure inventory items and purchase orders are turned on, if you plan on doing these things. If you do plan on creating purchase orders for your customers, you'll need this turned on. Also, if you track inventory, you'll have to do this too. Depending on how you set up your company using those default industries, QuickBooks could either have this option turned on or off already. Let's check by clicking edit on the top menu and selecting preferences. Make sure you're on the items and inventory tab on the left-hand side and then click company preferences.
Place a checkbox next to inventory and purchase orders are active, then click the blue okay button. QuickBooks needs to close out all its windows and open them up again. I'll click okay. To open the windows again, click the arrow to expand the navigation pane and click home. I'll maximize this and then I'll collapse the navigation pane so we can see a little bit more clearly. Now let's start adding our items. In the company area on the right, click items and services. Right now, we have nothing here.
But this is where we can go through and start building the catalog of our items and services. This is the list that QuickBooks is going to pull from when you start creating your invoices and sales receipts for your customers. So take the time now to go through and start adding all of your products. We've already added our wedding package account. But this is how we can track how much we made on that particular service. We still need to create the invoice line item for the service and that's what we'll be doing when we add these items. To add an item, click item on the bottom left-hand side of the screen and select new.
We need to choose what type of item this is. In this case, it's a service. We can put the item name or number and in this case, for Hansel and Petal, our fictional flower shop company, I have this item number already made. In the description, I can put in what type of service it is. I can set the rate and finally, I can choose the account. Here's where I'm going to select our wedding package income account that we created in a previous video. I could click okay, but I'm going to click next, because I want to add another item.
This time, instead of a service, I'm going to click the dropdown and add an inventory part. This is a physical product. You'll see that we get some extra fields that we can fill out. In the item name and number, I'll put in our special item name that we created. I could also select if it's a sub-item of a certain product, for example, I could categorize my flowers, such as roses, tulips, et cetera. I could also put in a manufacturer's part number, if I have one. In the description on sales transactions, I'm going to put in what the product actually is.
In the sales price, I'll put what the product costs. In the income account, I'm going to change this from the wedding package. This time, I'm going to choose my regular sales income account. I could also put in the cost of the item, what it costs me to purchase and the preferred vendor that I get this item from. We'll go over vendors in a later video. But because I'm working with inventory, I need to include how many of these items I currently have on hand. This is not a necessary aspect of QuickBooks, I don't have to keep track of my inventory at all.
I'll click the blue okay button and now I have two items created, a service item and an inventory part that are linked to accounts. I can also see how much they cost. Now you can go through and continue to add all of your items. When you're all done, click the X on the top right-hand side to get back to the homepage.
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- Explain how to open and close an existing company file.
- List the steps of adding bank accounts and credit cards.
- Set up customer and vendor profiles.
- Create and edit vendors and employees.
- Identify how to invoice customers and receive payments.
- Enter statement charges and assess finance charges.
- Set up payroll items and pay employees.
- Customize invoices and forms.