 QuickBooks Online 2023, Sales by Product and Service Report. Get ready to start moving on up with QuickBooks Online 2023. We're going to be using the free QuickBooks Online Test Drive searching in our online search engine for QuickBooks Online Test Drive, selecting the option that has Intuit.com and the URL into it being the owner of QuickBooks. Support Accounting Instruction by clicking the link below, giving you a free month membership to all of the content on our website, broken out by category, further broken out by course. Each course then organized in a logical, reasonable fashion, making it much more easy to find what you need than can be done on a YouTube page. We also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable. So once again, click the link below for a free month membership to our website and all the content on it. We're going to be picking the United States version of the software and verify that we're not a robot. Zooming in by holding down control up on the scroll wheel currently at the 125% zoom in in the cog dropdown. Note that we're in the accountant view as opposed to the business view. We may toggle back and forth between the two views to get a look at where things are located in them. Then we're going to right click on the tab up top in order to duplicate it as we do every time. Right clicking on the duplicated tab to duplicate it again. Going back to the middle tab so that we can go to the reports on the left hand side. Opening up the balance sheet report as that's thinking. Even though it's done thinking I'm going to go to the tab to the right. Going to the reports on the left and then open up the P to the L the profit to the loss the income statement. Close up the hand boogie the hamburger and then we're going to change the range from 010122 tab 123122 tab and run it to refresh it tab to the middle. Closing up the hamburger and then scrolling up to range to change to 010122 tab 123122 tab run it to refresh it. That's the setup process we do every time. Remembering that these two reports balance sheet income statement. Those are our major two financial statement reports pretty much all other reports giving more information more detail more more ideas about one or multiple line items on these two major financial statement reports. This time we're looking at the income statement looking at specifically the income line of the income statement. Remembering that by default typically we want to have few income line items on the income statement because we can sort the income statement line items with sub ledger accounts that will break them out by customer or by product and vendor. Last time we looked at them by customer this time by product and vendor so just a quick recap on that. Remember that the income line items here usually only have you know a couple income line items. The errors that people make oftentimes are making income line items per customer which will make your income statement quite long or making income line items per item inventory and service items to detailed. You might have like large groups of inventory items that you put into a separate GL account. But you don't really want to put every little item or service that you do into another line item on the income statement because usually you can break that information out on the sub ledgers which we will do now. However there is a bit of a caveat so just remember if I hit the plus drop down if you have a full service accounting system on the accrual accounting system on the revenue side. You will typically be entering an invoice and then receive payment then make the deposit the invoice is the sales form that records the sales transaction. If you use an invoice you would expect the sub ledgers to be populating properly and tying out to the amount on the income statement. If you have a cashed based system at a cash register and you're using a sales receipt form to record the sale at the point in time and then make a deposit. You should still be good with the sub ledgers because the sales receipt will then properly record the items and the customers. But if you are using a bank deposit form possibly because you have gig work or something like that you're getting paid by platforms then then you might have something that just called this just is YouTube income. And you're recording it with a deposit form because the deposit form isn't really designed to record the income you're not going to have the more detail of the sub ledgers breaking out income by customer and by item. Just be aware of that. Also note that as you enter these sales receipts these these sub reports will be dependent upon the items that you're going to set up here. So you want to basically think through your items. If you don't add an item here and you just and you were able to enter a rate or something then obviously it wouldn't be able to make a sub ledger report breaking out your income linens by item. If you're using invoices and sales receipts and using items in order to record them you'll have the capacity to run the sub ledger reports OK closing that out. I'm going to say let's close this don't save it or whatever and then I'm back to the profit and loss which changed 0 1 0 1 2 2 to 12 3 1 2 2 run it. Let's go to the tab to the top right click on it. Duplicate it again so I can open up another report which will tie out to that sales line item in the reports on the left hand side closing up the hamburger scrolling down we're looking at the sales and customers. Last time we broke out the income with the sub ledger reports of the income by customer and then we also did the sales by customer detail and summary. This time we're looking at the sales by product service you have a detailed and a summary report. Let's open up the summary report. So then we'll change the date up top from 0 1 0 1 2 2 tab 12 31 2 2 tab run it to refresh it. And there we have it so this report will be more complex if you sell inventory items because then you have to deal with the cost of goods sold and whatnot. But we're really kind of looking at just the sales line item you all you could kind of concentrate on the cost of goods sold area but I'm really kind of tying it in to the sales line item at this time. So this is going to be the amount and you can break it out by the things that we sell. So design we've got these in groups or categories the fountains and then we've got the groups in there. If I go to the first tab by the way just to see how this is created and we go into the sales tab on the left and you go into the products and services. These are the products and services that we have set up and you can see some of them have been put into these categories or groups. So that's where the categories or groupings are showing up in our reports back to the reports. And if I go to the bottom line here this total 102005 breaking out our sales by the line items by the service and inventory items we sell should tie out then to the total income which would be here. Now note it's a little off because as we discussed last time the income doesn't force us to be in balance with the sub ledger as the system typically does with say accounts receivable. So with accounts receivable if I go to the balance sheet that accounts receivable has a sub ledger breaking out by customer. QuickBooks kind of forces it to be in balance for the most part by not allowing us to enter something to the receivable account that it can't record to the sub ledger for a customer. Which is usually good but it does cause some problems. There's pros and cons to that. They don't do that for the income account so it is possible say for example to enter a deposit form that doesn't have an item at all and then it still goes to the income account. That means you're going to record income that it can't tie out to the item so it's going to be off by that amount. However if you're recording all of your income with invoices and sales receipts then the sub ledger should properly tie out and if it doesn't it's not as big as a problem as a balance sheet account like accounts receivable because accounts receivable is a permanent account so you'll have that problem going forward until you fix it. The income statement accounts are temporary. They close out. In other words at the end of the year you start over so when you start over you can basically get back in balance if you've adjusted your accounting system to be using the sales receipts and the invoices. So there are those. If I go back on over you can imagine this would be a nice chart as well to kind of make a pie chart out of for example to graph the sales that we're making or the amount of sales by item and we might test that out in a future presentation. It also gives you the quantity here of the sales if we're selling the inventory items so we can kind of think about it in terms of quantity as well. It gives us the percentage of sales that's basically taking for example a vertical analysis kind of calculation just to check it out so we can see what is going on with it. What's going on? This is going to be the 2670.25 divided by and scrolling down divided by the 10 280.05 moving the decimal two places to the right. We get to that 25.98 about and then we've got the average price. So let's look at this average price for the rock fountain for example all we're doing to calculate that is taking this 2475 sales price divided by nine and that's where we're getting this average price of 275. That price is going to be the sales price average sales price not like the cost we're not talking about flow assumptions weighted average FIFO LIFO. This is the average price the reason they take the average price here is because of course we could have changed the sales price at some point during the year so we have the average. This is the cost of goods sold in total. So if this is the total sales we had on the fountains the 2475 minus the cost of those fountains minus the 375 that gives us our gross margin in essence the impact on the bottom line net income or gross profit. And if I take that gross profit for these particular fountains for this period and divide it by the sales price the 2475 that gives us our our gross margin percent. And that percent basically we're making 84.85 cents on every dollar sale we make on the rock fountains. You can see the other side of that if I subtract that minus one. That means there's 15 15 cents about is going to or 15% of it is going to then the cost of the fountains which you may actually also get to by going to the 375 cost divided by the amount of sales to 475 and there's your 15% in essence. So that's the general idea of it. The bottom line of this thing would represent that this should be in essence the sales line item and you would think the cost of goods sold could tie out here to what's on the income statement for the cost of goods sold it does in this case. So that makes sense. So that's that's that sub ledger report. Let's go back to the first tab. And let's just see where we've been going in the business view cog drop down business view to check it out and that and that viewpoint. And we've mainly just been in the reports which are on the business overview and then the reports. And then I think we went into the get paid and paid center where we have the products down here that's where we went into the products down below. That's the only places we've gone. So there's where you find them under the business view.