 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, first a word from our sponsor. Yeah, actually we're sponsoring ourselves on this one because apparently the merchandisers, they don't want to be seen with us. But that's okay whatever because our merchandise is better than their stupid stuff anyways. Like our crunching numbers is my cardio product line. Now, I'm not saying that subscribing to this channel, crunching numbers with us will make you thin, fit and healthy or anything. However, it does seem like it worked for her. Just saying. So, subscribe, hit the bell thing and buy some merchandise so you can make the world a better place by sharing your accounting instruction exercise routine. If you would like a commercial free experience, consider subscribing to our website at accountinginstruction.com or accountinginstruction.thinkific.com. 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 will 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 summary. So 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. Oh three is where we want to be. Oh one oh one two three tab twelve thirty one two three tab run it to refresh it once again tabbing to the right closing the hamburger. Oh three is where we want to be. So oh one oh one two three tab twelve thirty one two three tab. Oh three 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 a 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 will 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, 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 a 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 these 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 got income from YouTube or whatever the income is coming from. If it's a platform, you're probably going to record it by platform because that's what you're, 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 have be able to tie out your, 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, if we see 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, whether they be a physical unit or a service item, we're going to have a quantity field. We might have had a design, two designs that were more made, it's not a physical unit, but we're still going to be calling them a design item because we've put them into finite groups that were charging by item, even though they're service items. So that's going to be basically this first line on the quantity of items that we have sold. Then we have the amount here and this is going to be the cost amount and then we've got the percentage of the sales, I'm sorry, this isn't the cost amount, this is the sales price amount. So this is what we're selling them for, not what we purchased them for and if I get to the total down here, we get to the $10,280.05. That you would expect to match out to the income statement over here where it doesn't quite $10,277, why doesn't it match out? Because it's possible to record something to income without recording an item that you're selling. Whereas that isn't the case as we talked about last time on the balance sheet accounts which have a similar sub ledger of accounts receivable and accounts payable having sub ledgers broken out by customer and by vendor. These ones have to tie out or almost always will because QuickBooks forces you to record a customer every time you post something to them. That's not the case with the income accounts, therefore it's possible for this one to be off. However, if you use the invoices and the sales receipts forms and you properly populate an item and you have your items set up properly, then it should tie out, right? And if it doesn't tie out, then you can fix what is going on, you can fix what is wrong and you can try to make it correct going forward because these are income statement accounts which will roll out to retained earnings. Therefore, in the next year, you'll start over again and you can try to make it work the next year and start kind of somewhat from a clean slate at that time. So there's the total now, these are the quantity, so if these were service items here that we're selling, then if some of these were service items, then you wouldn't have any quantity, right? Because that would only be the inventory items. The percentage of sales column, let's pull out a trustee calculator. Where's my calculator? It's not in my recently used area. How can that be? There's the calculator. So then we can say if I took the total, the 2670.25 divided by the total down here divided by the 10 to 80.05, that's going to give us, if I move the decimal two places over the 25.98 about. So that's what the percent is. The percents are nice because if we're benchmarking to another business, usually one that's larger than us, I can't compare the total units that we sold or the total dollar amount that we sold by unit, but I can compare and say how much quantity of each inventory item am I selling as compared to my total revenue. Does that match up? Who can I best benchmark to in terms of a business that's similar to ours that I can kind of give my percentage calculations that would be of similar nature? Then this is going to be the average price. So if we sell inventory items, then I'm sorry, this is going to be the average price that we sell the things for. So we can actually calculate that here because it's an average price. So if this was the amount that was sold here 2250 divided by the 30, we get an average price of 75. So we sold them for about 75. 122.5 divided by 10 is about 1225. So that's about what we sold those items for. It's average because you might have changed the price over the year. So it might not have been, you might not have sold them for that amount for the entire year, but that's the average price given this time range. And then if there's a cost of goods sold, then this column will only be here if you sold actual inventory units. And so this is going to be the cost of the items that were sold that will be tracked as you sell the physical units of inventory. And then this is going to be the gross margin per item, which we can calculate by saying, okay, if the sales price is 72.75 minus the 20, that's going to give us the 52.75. And then the gross profit percent would be the percent of the gross profit divided by the sales price in this case of the 72.75. And that gives us about 72.5%. Now notice, I think I misspoke on the quantity over here because I was thinking quantity in terms of selling inventory units. But this is the quantity that we sold, even including service items. So if you're selling service items, you'll still have the quantity here because you're selling that quantity of service items, even though it's not a physical thing. I was thinking physical thing in my mind. The cost of goods sold over here will only be there for the inventory items that we sell. So that's the general idea. So this is another area where it's a sales item. So this would be a great thing that we could use to create pie charts with and whatnot or bar charts or whatever we want to do, which we might do in future presentations by exporting this to Excel and then making charts within Excel from it. If I go to the tab to the right, we got the sales by products detail. So now we've got the design up top, for example, this is the item that we sold. These are the transaction types, either sales receipts or invoices. That's all you would expect to be in here if you just used the sales forms to record the sales of your items, the customer, the memo. These are the quantity that was sold, and that would be the quantity for both service items and inventory items, the sales price and the amount, and then the balance. So giving us basically a running balance. So this will be the detail report for it as well. So that's going to be the sales by, so just to recap the sales by product or the sales line of the income statement can generally be broken out by sales by customer and then sales by product sales by who you sold it to and sales by what you sold. However, you can only use those sub reports if you're recording your sales using the sales forms and inputting them properly with invoices and sales receipts. If you're not doing that, then that's okay because it might be easier to use a different system like using bank feeds, deposits to record sales. But then you have to recognize you don't have those sub reports and therefore you might record your income with more category groups that are based on customer or what you sold possibly. Whereas the general rules, you don't want to do that. You want to keep your income statement clean and tidy and neat and not too long and then have that added detail on the sub reports.