How to setup service items in Quickbooks Desktop

In this tutorial, we will see whether how we can setup our services in QuickBooks desktop item list by creating main and sub-account category.

 

Well before creating items list, first lets see if we have the concerned accounts available in the chart of accounts and here you can see that we have only one income account named “Sales” we sure can use it but to make better decisions, its better to create relevant accounts to categorize the financial activities which will also help in future analysis.

Tutorial Instructions:

 

 

So, to create your items list, select “Item List” under “List Menu and click on “Item button” and select new. Here, just select services, Now, write the name of your Service in this field. Its totally your discretion whether what you want to name it. Well, in my opinion, write the full name if its not too long otherwise use abbreviation and if you will use abbreviation then at least do mention the full name of your service in the description section. Anyhow, you have a limit of 31 characters in the name field.

Well the fictional company I am working on is offering 3D Architectural designs first and then it becomes “design and furniture trading company”. So, I am creating an item named 3D Designs as a broad category at this point in time and since its not being subcontracted, we don’t need to check this check-box and fill these fields.

Now write the description of the service item in this field and Since the service item I,ve added is a broad category i’m not adding any description and price of it but I sure need to attach it with an “account” to track the relevant activities.

So, click on this dropdown and you will see the accounts listed in the chart of accounts. Here you can see that we have only one income account named “Sales”, we sure can use that without any doubt but to track and categorize a relevant income coming from the sales of a specific service. I am creating another income account named 3D Design as a sub-account of Services” and to create accounts we don’t need to go back to chart of account we can create them right away from here by scrolling up and selecting “Add New”.

Here just create your accounts and if you don’t know how to create sub-accounts, plz! watch my tutorial named “Quickbooks Desktop Chart of Accounts A Glimpse”. I will also give its link in the description and in the card.

Here you can see that our relevant sub-account has been created and if you want to create another account, just click on “Next” and or if you want to add some notes concerning to this item, just click on “Notes and add your notes and you can add custom fields and run spelling check too.

Now just click on ok and here you can see that our first service item as a abroad category has been created. Now we can create specific design items and make them sub-items of 3d Designs.

Now click on Item button and select new and here name your item, in my case, it would be a  3D design for “kitchen” and make it a sub account of your 3D designs item. Now write your description here. well,  I have mentioned “Project Price” next to the item name which means it would be a fixed price service instead of hourly. Now add your rate or price here and Instead of attaching it with any of the created income accounts i am going to create another one concerning Kitchen Designs and making it a sub-account of 3D designs account. Here you can see that another tier of sub-accounts have been created.

Now click on OK and here you can see that our new service item has been created as a sub-item of 3D Designs and for some reason, if you stop offering this service, you can check this check box to make it inactive which will keep the items list relevant to the services you offer currently and if you want to start offering this service again, you can make it active again by selecting “Show inactive items” under Item tab. Now you can make it active again either by right clicking and selecting “make item active” option or clicking on the cross sign it will make the item active again. Now we have added our services items.