QuickBooks

Items in QuickBooks
Items in QuickBooks
In simple terms, the products and services that your company sells to consumers
are called items.  
If your company sells electrical items like
TV, Iron, etc. Create items called TC, Iron

If your company offers a service such as car recovery service,

then you will create an item called Car Recovery.

When you purchased groceries, like bread, milk and eggs. The bread, milk and
eggs were all items listed on your receipt along with the price.  The grocery store
had to list those items in their accounting software before you could buy them.
There are several types of items that must be categorized in QuickBooks The
complete list of item types are as follows:
Inventory Item
Inventory Part: When you purchase a product to be sold
later, those products will be classified as inventory parts when
you create the item. Inventory parts are not an expense to
your company when purchased from the manufacturer. They
are initially classified as inventory, which is an asset on your
company’s balance sheet. The cost of purchasing a product for
resale will only be expensed when it is sold to your
consumers. For example, if your company purchases 100,000
worth of TV’s to be held in the inventory until they are sold,
then your inventory will increase by 100,000. When the TVs
are sold, your inventory will decrease by 100,000 but your
expenses will increase by 100,000. 
Non Inventory, Service, Other Charge and
Sub Total
Non Inventory Part:  A non inventory part is an item that a company does
not keep track of in inventory. It can be an item that your company
purchases, but does not resell such as office supplies or boxes for packaging.

Service: You will create service items if your company provides a service,

such as construction, car repair or consulting services. 
 
Other Charge: You can create an other charge item for other than your
normal service or product charges. You may also use this type of item to
charge for shipping and handling. 
 
Subtotal: The subtotal will add up the line items immediately preceding it.
It’s most commonly done just before the sales tax is added.  
Group, Discount, Payment Items
Group: You can create a group of items that will automatically be added and totaled on
one line of the invoice. For example, if you are selling a washing powder and dish
washing detergent you can create a group to include those 2 items for one price. The
washing powder item and dishwashing detergent must first be created as separate
items, then you will create a group item to include the items of your choice. Using this
item type when possible will help you create your invoices quickly and efficiently. 

Discount: This type of item will allow you to deduct a certain amount from the invoice
total. A discount can be set up as a percentage, such as 10% off, or it can be set up as a
Rupee amount.
 
Payment: A payment item type can be used if someone made a partial payment prior to
the final purchase. For example, if you are going to provide car repair services for 50,000
and require a 20%  deposit, then your customer will give you a partial payment of
10,000. Upon completion of the services, you will use a payment item type to indicate
that the customer has paid 10,000 and the balance of the invoice will be 40,000. 
Sales Tax
Sales Tax Item: This is a very important item type if your company
is required to charge sales tax. You will create a sales tax item for the
government entity that you must collect sales tax for. For example, if
you’re business is located in Lahore, then you will create a sales tax
item to collect sales tax on behalf of Government of Punjab. 
 
Sales Tax Group:  You will create individual sales tax items to
collect sales tax for federal government and another sales tax item to
collect for provincial government. When you make a sale to a
customer in which you need to charge federal and provincial sales
tax, you can create a sales tax group which will automatically
calculate sales tax for federal and provincial government at once.