 QuickBooks Online 2024 products and services list or item list. Get ready and relax because it's so easy using QuickBooks Online. You'd think it'd be a crime, but it's not unless you're doing bookkeeping for bad stuff or something. Anyways, let's do it. We are online in our browser searching for QuickBooks Online test drive looking for the result that has Intuit.com in the URL, Intuit being the owner of QuickBooks, selecting the United States version of the software and verify that you're not a robot. Opening up our major financial statement reports like we do every time, reports on the left hand side. We're in our favorites. We're going to right click on the balance sheet, open link in new tab, right click on the profit loss, open link in new tab, go up to that top link, close up the hamburger. I'm going to change the range up top to 2023 going from 010123 tab, 123123 tab, run into refreshing it, tab into the right, close in the hamburger on the left, go into the range to change it, 010123 tab, 123123 tab, run it to refresh it. There's our profit and loss otherwise no one has the income statement. First, a word from our sponsor. 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, you know, 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. Tabbing to the first tab and that's the setup process we do every time. We're going to do our data input on the first tab. Look at the results in the reports on the right tabs. So note that if I select the dropdown, we've been taking a look at the cycles and then the cycles within the cycles like the customer cycle, the vendor cycle, the employee cycle. Now we're looking at those items that are not part of the typical data input process, which are typically housed here under the plus button, but rather are part of the setup process, often referred to as lists by QuickBooks and most of those can be found in the cog up top. Here's our lists. If I look at all of the lists, there are all of the lists and now we're looking specifically at the products and services. Now this is probably not the way most people would go in there. Me personally, I typically go into the products and services by using the left hand menus noting that like the chart of accounts, the products and services, although it's a foundational item, is used fairly often. So you might refer to it fairly often. And therefore I still kind of think of it as being kind of housed on the left hand side area. And you can find it into the sales tabs. And then on the right hand side, the furthest tab, you've got the products and the services. I'm going to close up the hamburger. These are the fundamental building block items we need to have for the things that we are selling at least, meaning if you populate an invoice or sales receipts, the major sales documents, then you're going to need items to be populating them. You could create the items as you go as we have seen, but it would be better to first have the items here and then populate your sales forms with those items. So let's first, I'm going to right click on the tab again and duplicate the tab again. And then I'm going to go to the 10, bring that one to the left. And just note that when I enter, for example, an invoice, so I'm going to look at my forms over here. If I enter an invoice, then down here, this is where we have the items. So these are the things that we're actually selling. We could add a new item as we go, but the point of the process would be we want to have the the invoice as easy to data input as we can. And you can imagine a situation where you have someone else doing the data input, you would like them to be able to kind of brainlessly put the information in there correctly, even though the transaction behind the invoice, as we have seen, can be quite complex, we want the data input to be very easy. How do we do that? We need to properly set up the items. So we have those items. If I close this back out, do you want to leave without saving? I'm going to say yes. I also want to jump over here to our flow chart to just get a sense of how the items are going to fit in different accounting systems. This is a desktop homepage flow chart. But we're and we're using the online system, but we're only looking at this to see the flow of the forms, which are in essence the same for pretty much all kind of accounting systems. So we can think of we can think of this basically as cycle, right, the vendor cycle, the customer cycle. If we look at the sales cycle or the customer cycle, you'll recall that we have different, different ways it could be structured, depending on the industry and the size of the company that we have. So the easiest way as we saw was the bank feeds, right? So if you just have bank feeds for like gig work, and you're receiving you're receiving money just from a platform, for example, and you let it go through the bank and then you record the revenue with the bank feeds, then the items aren't going to be as important in that system, because you're just recording revenue, and you're recording it directly to the income account from the bank feeds. So that that would be fine. And again, the items wouldn't be as useful. That system doesn't give you as much detail generally, because the bank feed is not actually designed as a form to increase revenue, you're supposed to be using the sales receipt and the invoice to record income. But if you have a simple system, the bank feed is going to be nice and easy to use. Obviously, if you use that system, you won't be able to run reports based on products and services or reports that are going to be basing the income on the customers possibly. But you can still have your income statement, which is the main thing that you're going to be needing. And then if you are at a check register, you have a cash based system, but you're basically recording it at the point of sale. That's when you're going to be creating the sales receipt. Now if you imagine a situation where someone's at a check register, you want the data input as easy as possible. Someone brings up a piece of inventory from the store and you're doing the data input, you want the cashier to be some brain dead teenager or something, not that all teenagers, but they could be some brain dead and they could still do the data input, right? Because it's so easy. Why? Not because the journal entry is easy, but because we've made the setup process foundational items easy, which include of course the service items that we have to set up. If we have an invoice, now you have an accrual based system, increase in the accounts receivable, same kind of thing applies. We would like to have someone to be able to do the data input into the invoices with as ease as possible, little knowledge of as possible. We would like this to be even if we do it ourselves, something that I can do with half my brain not working, right? I'm just kind of I'm listening to music, I'm watching and I'm entering the data input. It should be an easy process because we set up the data input foundational items such that it makes it an easy process. Also note that if you're in a job cost system, say you're like a bookkeeper or a lawyer, you might then say, well, I'm just going to set up an item for the time I bill. So if you're a bookkeeper, if you're a tax person or a lawyer, accounting firm, that's often what people do. They're going to charge by time, then you have to track your time sheets, kind of a job cost system. However, a lot of times it might be easier if you can figure out some type of way to charge people based on what you did in some kind of standardized way. So if you're a bookkeeper, for example, you might be able to charge people based on how many transactions you have done within the month, right? If you do monthly, you bill people monthly for the bookkeeping you did in the prior month, then you might actually look at the number of transactions that you had and bill people based on how many transactions that way. Everybody has a little bit more transparency as to what is going on because the hours can be a little bit ambiguous sometimes from month to month, how long something is going to take might be dependent on who's doing it in the firm or basically how you're feeling at the time and so on. So in any case, let's go back on over then. So also note that when we set up these items, they are also one of the principal driving factors with regards to the sales tax. So if you're in the United States, as we talked about in the sales tax presentation, the tax is going to be it's like a usage tax, but it's on the state level instead of the federal level. And so it's going to be a little bit different from state to state. QuickBooks has a good system to set it up. But first you have to go down here and go to your taxes, turn on the taxes, which we looked at in a prior section. And then you're going to have the next thing, the major thing is to go into the items. So then when you have your items under the sales tab and the products and services, we have to assign whether or not these items are going to be taxable, so that when we make the invoice, it will properly calculate the tax at the point the invoice or sales receipt is created. That's another kind of glitch with regards to a system where you're just using the deposit form. It's not really designed to calculate sales tax on the deposit form, which could cause a problem if you have to deal with sales tax and you're using a method where you record in revenue with the deposit form. And then, of course, you might have the customer as well that could have an impact on the sales tax, whether they be exempt or not exempt with regards to the sales tax. So when you set up the items, if you go in here and you're setting all of the items up, you've got the More button, Manage Categories, Run Reports, and you've got the New button where you can make a new item one at a time or you can import them. Now, we'll talk about importing them in a future presentation. If you're starting a new accounting system, possibly moving over from a prior accounting system, then you might want to import all of your items at one time, and we'll do that in the another course or section when we talk about starting up a new company file. When you add them one at a time, again, you can add them in here or you can add them as you actually create an invoice or sales receipt. So also just realize that these items could be service items or they could be inventory items. So if I hit a new button here, the types of items we have inventory, that's going to be products you buy and or sell, and that you track quantities of, meaning they have inventory, you're tracking inventory within QuickBooks, therefore on a perpetual inventory system, when you buy the inventory, you're going to increase not only the dollar amount on the balance sheet of inventory, but also the sub ledger for the quantity of inventory. When you sell inventory with a sales receipt or an invoice, you're going to reduce not only the dollar amount of inventory, but the quantity of inventory. Then you have a non inventory, products you buy and or sell, but don't need to or can't track quantities of, for example, nuts and bolts. So these are inventory items, they're physical units that you buy and sell, but you're not going to track them on a unit by unit inventory basis because possibly there's something small like nuts and bolts or something like that, which is similar to a service item, services that you provide to customers, for example, landscaping or tax preparation services, they have no inventory. So this a bookkeeper obviously is a the the lawyers, there's no inventory to track. Therefore, it's easier in that perspective, but you also have other things you have to deal with like a like a job cause kind of system, most likely in those kinds of circumstances and tracking the accounts receivable usually. And then you have your bundles down here, a collection of products or service or services that you sell together, for example, a gift past it or fruit, cheese and wine. So you might have a system where you're bundling items together so that you can easily put them on an invoice where you have multiple in like items that are grouped into the bundle. So if I go into my inventory items here that are down here, we can hit the dropdown, we can make them inactive, run report and duplicate. So like with the with the chart of accounts, once you have the items set up, you can't normally delete them, mainly because they might have something in there already. If you haven't posted anything to the items yet, you haven't bought or sold any items, possibly you can delete it. But usually you're going to only be allowed to make it inactive because we don't want to delete any past transactions that were recorded to the items because that will mess up the reports. So you're forced to make them only inactive, and then you can reactivate them if you so choose. You have your filtering options so you can search by your items if you have a whole bunch of them, you've got your printing, you can print the report, you can export to Excel. And if I hit the cog dropdown, we've got the columns. So we could add more columns, the income account that's being impacted, I'll put them all in here, the expense account impacted, the inventory, the purchase description, and then the quantity on the purchase or the PO purchase or the SKU number, the type, and then the number of rows. And then we have if you want to see it in a compact view, which makes it a little bit tighter to see versus group buy. And then you have the group by category item, meaning as you add the items here, it's going to be putting them into the categories that we have created. So obviously when you add all these other items in the columns, it's going to be quite small. You can expand them if you so choose. Let's remove them again. So expense account would be normally cost of good sold. If it's an inventory item, inventory account will generally just be inventory. So it's pretty straightforward purchase, description, often the same as the name, and then quantity deal, I'll remove that and the SKU and I believe that's where we had it before. If I edit the item, then we can see this is a product and service, we've got the name, we've got the SKU, we've got the category. So this is the this is the dropdown where we're making where we can group each of these items into their own subcategories, kind of similar to the subaccounts. So you have now the subcategories, which can help you to group the items. And you can add the new category here. There was also a category up top in our lists, right? That's one of the list items that we had that you can adjust your product categories here. So you can adjust them in this list area if you want. But you might just I'm going to go to the tab to the right, you might just adjust them as you're as you're adding items so I can then edit this. There's our category. It says I sell this product service to my customers. So we're going to check if we check that off, we have the description. This is going to be the sales description. There's the sales price. There's the income account, which will be impacted when we sell the item. And then we have the sales tax, which will record the apply the sales tax when we make an invoice or the sales receipt, this will be set up and hopefully automatically populate properly based on the locations when you have turned on the sales tax. So let's actually make one right here just so we can see the process. If I add a new item, if it was an inventory item, this would be the more confusing one. I'm just going to call it item one. There's the item one SKU if it has, if it has one, and then we've got the image, you can actually put an image in there, which actually can be useful, because then when people are selling the items and whatnot, they can actually see a visual of the item. And then we can add our categories. So if it's under design, we could put it under design quantity on hand. I'm going to say that there are zero on hand, which is typically the case when you add a new item, because you don't want to put the quantity on hand when you add the item, otherwise QuickBooks will make a journal entry. You want to purchase the item with a bill, unless it's part of the beginning balance kind of setup, which we'll talk about. And when we get to the setup process in a future course or presentation, the inventory account is the account that would be going up if it's inventory that we're purchasing when we buy it with a bill or check down when we sell with a sales receipt or an invoice. The sales price is what we sell it for. So let's say that was 130. The sales, the sales account, this is the income account that's going to be impacted when we sell the item with an invoice or sales receipt. The tax is being calculated here. You can go in here and search for the proper tax down here. You can see it says it's taxable based on location. So I'm going to say it's a taxable item. You could say it's not taxable by going through there. And then I'm going to say the purchase side, let's say was 100. So we sell it for 130. We bought it, we buy it for 100. The 100 would be populating on a bill or expense when we purchase it. And it would also not show on the sales forums invoice and sales receipt, but would have an impact on them if using a perpetual inventory system because it will increase the cost of goods sold by 100, resulting in a net impact on the net income of 130 sales price minus the 100 or $30 in this case. The cost of goods sold is the expense account that will be impacted when we sell something and with an invoice or sales receipt, and then you could choose a vendor to apply this to. So let's go ahead and save it and close it. And you can see under the, here it is for the item number one that we set up. It's under the designs here. So then, and then, so there that is. And then if I was to go into my invoice, for example, let's go to the first tab and make an invoice, the invoice should be easy to make, right? I could say this is going to be customer number one. I'm going to save boom and add that. And then I could just add my item here item one. And then it should populate for us automatically. And it all automatically applies the sales tax and will, as we've seen before in a prior presentation, now record a fairly complex entry increase in accounts receivable 140, increasing sales 130, increasing sales tax payable 1040, decreasing inventory by 100, which isn't on the invoice, but we saw we just put it into the item. So it knows about it because it knows the item and increasing cost of goods sold by 100, net impact on net income 130 minus 100 or $30. It'll also track the accounts receivable by customer or sub ledger and the sub ledger for the inventory will be tracked here by inventory item. So those are the products and services. One of the key foundational underlying components of a good bookkeeping system that we want to get set up properly from the start. We'll talk more about that setup process in the second course or section when we when we start a new company file, if you're working in a company file that has already been set up like you're starting a new job where everything's already processed, then you're probably not going to be adding many products and services, but instead you will be using them as you do the data input forms from the cycles on the customer side. When you enter an invoice, you'll be using those items when you enter a sales receipt using those items on the vendor side when you make the purchases of inventory with a bill form or possibly an expense or a check form. You will also be using the items and possibly with a purchase order as well if you're using the purchase order.