 QuickBooks Online 2024. Sales by product and service report. Get ready and pack some trail mix because we're hiking on QuickBooks Online, our audit trail to success. Here we are online in our browser searching for QuickBooks Online Test Drive looking for the result that has Intuit.com and the URL Intuit being the owner of QuickBooks selecting the United States version of the software and verifying that we're not a robot. Opening up financial statement reports like we do every time. Reports on the left hand side in the favorites. We're going to be right-clicking on the balance sheet to open link in a new tab. Right-clicking the profit and loss. Once again, opening the link in a new tab. Tapping to the middle closing up the hamburger and changing that ranging. 010123 tab, 123123 tab. Run it to refresh it. Let's go to the right tab. The right hand side closing the hamburger. Once again, bringing it back to 2023. 010123 tab, 123123 tab. Run it to refresh it. That's the setup process that we do every time. These being the two major financial statement reports, we're now looking at other reports. Most other reports giving more information about one or multiple line items on these main two financial statement reports. This one, this time, we're looking at a report that's going to give us more information about the income or revenue line items given it by the service item or inventory item. Let's go to the first tab to open that new report up. Going to the reports on the left-hand side, closing up the hamburger. We'll scroll on down. We're looking at the sales items. So notice the title here. Sales and customers would make us think that most of these reports are going to give us more information about the line items on the income statement related to sales, which is being used to kind of be synonymous or the same as income or revenue. And customers with customers were thinking sales because we sell stuff to customers, but sometimes the customer reports you would think might tie out to the accounts receivable as well as we track the AR collecting from customers. But most of those reports are up here in the who owes you money that we talked about before. So these you would think mainly being our sales related reports. So we looked at last time the income by customer and the sales by customer. This time we want to take a look at the sales by product, both the detail and the summaries. Let's right click on the summary first, open link in a new tab, and then I'll also right click on the detail at the same time and open the link in a new tab. Let's go to those two tabs, do some formatting, bringing the date range back, closing the hamburger. O3 is where we want to be. O10123 tab, 123123 tab, run it to refresh it. Once again, tab into the right, closing the hamburger. O3 is where we want to be. So O10123 tab, 123123 tab. O3 is where we be now. That's good. Okay, so if I go back to the income statement, you'll recall the income statement, performance statement, measuring how well we did over a certain time range, usually represented in month or year. We can see that with the range up top, January through December. Sometimes people have a tendency to record income line items by either customer, which we touched on last time, which is something that we don't want to do. Why? Because we have another report usually that we can then provide income by customer. So you want to keep your income line items nice, tight, clean, representing what it is that you're selling in a grouped format and not giving too much detail that you're trying to put in the income section of the income statement because you have the other reports to drill down on that more detail usually. We'll get to the exception in a second. Also, the next thing that people typically do is they make too many income line items by the things that they sell, meaning the service items. If you're a bookkeeper, we make too many, if we do it like accounting, we make too many line items saying this is accounting for this type of bookkeeping versus that type of bookkeeping versus every line item that we're charging for, every product or service. And if we're in a retail store, we might tend to make an income line item for every single type of product we sell as opposed to giving the general group or category of things that we sell on the income statement and then using our other reports to give us more detail, breaking it out by the things that we sell by product. So just to quick recap those products and services. If I go to the first tab over here and scroll down a bit, open the hamburger and we go into the sales line. The products and services are on the right. These are the things that we sell, right? These are the things that are going to be populated on the invoices and sales receipts as we sell them and they're going to be the services or physical inventory that we are selling. So that means that on the income statement, we have our income that's going to be given to us by the product. So now let's just give a quick reminder that this will only work. This report will only work if when you record your income, you're doing so with the income forms of invoices and the sales receipts. If you're using bank feeds to record your revenue, then you're most likely using a deposit form, which isn't really the form most designed to record income. So in that case, you might lose some detail of the sub ledger reports related to sales, like sales by customer and sales by item, because you might not have any items in particular with the deposit form of sales that you're recording to income. So you won't have this report. So in that case, then it's most likely you're doing that for something like gig work or something like that. So in that case, it might make more sense then to record your income probably by who you sell it to. If you've got income from YouTube or whatever the income's coming from. If it's a platform, you're probably going to record it by platform, because that's this kind of business that usually works well in that kind of system. You'll lose the more detail of these other reports, but it'll probably be worth it because it'll be nice and easy to do that way. However, if you have a full service accounting system where you're at a cash register and you're using sales receipts or you're invoicing clients with an invoice and tracking the accounts receivable, then you should be able to tie out your income lines and have the subsidiary reports by customer and by item. So if we go into this by item report, I'm in the balance sheet, whatever, if I go into this item report, we have the quantity of things that we sold. When we hear the term quantity, we might be thinking physical units or inventory type items as opposed to service items, but in this context, the term quantity means any kind of item, whether it be service item or inventory item. In other words, if I go to this first tab over here and I hit the plus button and we select an invoice or a sales receipt, the sales type forms, and we're imagining we're making a sale to a particular customer, we choose our items down here that have already been set up.