In this tutorial, we’ll cover how to set up your products and services list in QuickBooks Online. We’ll walk you through the steps on how to create products and services manually and then teach you how to import them from an Excel or a comma-separated values (CSV) file. Show
QuickBooks Online is our best overall pick for small business accounting software. You’ll get the most out of this tutorial if you follow along in your own QuickBooks Online account. New subscribers can choose from a 30-day free trial or 50% off for three months. Visit QuickBooks Online This tutorial is one of our Free QuickBooks Tutorials. You can either watch the video below, read through the step-by-step instructions, or do both. Step 1: Prepare the Necessary InformationFirst, you’ll need to gather the necessary information for your products and services. Information for Products You Buy or SellInclude all products you buy and/or sell, even if you don’t need to keep track of exact quantities, such as nuts and bolts. Be as detailed as possible. For example, don’t have one item for “sinks.” Instead, have separate items for each model of sink you buy and sell. Collect the following information on your products:
Information for Services You SellYou’ll need the following information for all services that you sell:
Step 2: Navigate To the Products and Services ListAfter you sign in to your QuickBooks Online account, select Sales in the left menu bar and click on Products and Services, as shown below. Navigate to Products and Services in QuickBooks Online Step 3: Create New ItemLet’s first learn to enter a new item by hand to better understand the information requested. Then, we’ll show you how to import multiple items from your spreadsheet. From the products and services screen, click the green New button in the upper right corner to create a new product or service item. Create a New product or service in QuickBooks Online Step 4: Select Item TypeThe Product/Service information screen that appears after clicking New provides the four types of items that can be created for products and services. Product/Service Information screen in QuickBooks Online A. Setting Up an Inventory Item Select this option if you need to track the cost and quantity of items that you buy and sell. Inventory items allow you to keep an eye on stock levels as items are sold so that you know when to place an order with the supplier. After clicking on Inventory (A), you’ll be able to provide the inventory details below:
Enable class tracking: If the class field doesn’t appear in your QuickBooks Online, you need to enable class tracking when setting your advanced options.
Don’t change asset account: Don’t change the inventory asset account for an inventory item after it has been created, as this can cause inaccurate inventory cost calculations.
Inventory information in QuickBooks Online B. Setting Up a Non-inventory Item Select the Non-inventory option from the product/service information screen if you need to track the cost, but not the quantity for items that you buy or sell. Noninventory items include things like supplies and special order products. After clicking on Non-inventory (B), you’ll be able to provide details for the noninventory item. The information collected is the same as for inventory items (discussed in the previous section), with the following exceptions:
Non-inventory information in QuickBooks Online C. Setting Up a Service Item Select Service (C) for services that you sell to customers. Plumbing, bookkeeping, and housekeeping services are examples of service items. The fields that should be completed for a service item are described below:
Service item information in QuickBooks Online D. Setting Up a Bundle A bundle is a combination of products and services that often are sold together. Bundles have no quantity on hand. They are a convenient way to record the sale of multiple products and services at once. Prior to setting up a bundle, you must create all the inventory, noninventory, and service items that will be part of the bundle. After clicking Bundle (D) on the product/service information screen, you can enter the following information:
Bundle item information in QuickBooks Online How To Import Product and Service ItemsIt is much quicker to enter product and service details into a spreadsheet than to use the data input screens in QuickBooks Online. I recommend doing the first few items manually, as shown above, to become familiar with the requested fields. However, if you have many items, it’ll be much faster to enter the data in an Excel spreadsheet and import the spreadsheet following these instructions. Step 1: Prepare Your SpreadsheetYour spreadsheet should have one row for each product or service item you wish to import. Each column represents a field to be imported into QuickBooks Online. The first row of your spreadsheet should contain labels for each column, but the labels don’t have to match the field names from QuickBooks Online. You’ll be able to map each column to a particular field in QuickBooks during the import process. Below are the fields that can be imported for products and services. You can review a more detailed description of the fields in the section on how to enter product and service items manually.
You only need to include columns for which you want to import information. It’s fine for some columns to be missing. Your spreadsheet should look something like this: Spreadsheet of Product and Service items to import into QuickBooks Online Use the first tab: Only the first worksheet (or tab) within an Excel workbook will be imported. Ensure your worksheet is located on the first tab in the lower-left corner of your Excel file. Step 2: Upload Your Excel or CSV FileFrom the Products and Services screen, click on the drop-down arrow next to New in the upper right corner, and select Import. Select Import from the Products and Services screen in QuickBooks Online From the Import screen, click Browse and select the Excel or CSV file you wish to import. Select the file to import products and services into QuickBooks Online After selecting your file, click on the green Next button in the bottom right corner of the screen (not shown). Step 3: Map Your Columns to QuickBooks FieldsThis screen allows you to decide which of your columns will import to each field collected by QuickBooks Online. Map spreadsheet columns to QuickBooks Fields to import In the left column are the fields available for import into QuickBooks. The right column tells QuickBooks which column in your spreadsheet holds the information for that field. If one of the QuickBooks fields on the left isn’t in your spreadsheet, indicate No Match—as done for the Income Account in the example above. Once you have mapped all of your columns to QuickBooks fields, click the green Next button in the bottom right corner of the screen. Step 4: Review and Import the DataThe final screen allows you to review the data that will be imported into QuickBooks Online. You can make any last-minute changes directly on this screen. The number of products and services to be imported should equal the number of rows in your spreadsheet, minus one for your header row. Review product and service items to be imported into QuickBooks Online After reviewing your information, click the green Import button in the bottom-right corner of the screen to complete the import. You should receive a message that the import was successful, and the new items will appear on the Products and Services screen. How To Run a Products and Services List ReportOnce you have added all of your products and services, you can run a report to see the entire list. From QuickBooks Online’s Products and Services screen, select the drop-down menu next to More in the upper-right corner, then click on Run Report as indicated below. Run Product and Services list report in QuickBooks Online A report similar to the one below should display on your screen and must be reviewed for accuracy. Product and Service List report in QuickBooks Online How To Modify a Product or Service on the ListYou can modify a product or service that you previously set up. Locate the product or service you want to edit on the Product and Services screen. Click the Edit option on the far right side of the item’s information and make any necessary changes. Edit an existing product or service item How To Delete a Product or Service from the ListYou cannot delete a product or service from QuickBooks once you have used it in a transaction, like having created an invoice for a customer. However, you can inactivate an item that you no longer need. Inactive items will no longer appear on the products and services list but will still appear in financial reports if used in a transaction. To inactivate an item, click the drop-down arrow next to the Edit option and select Make Inactive. This item will no longer appear on the products and services list. Make a product or service inactive Wrap UpYou now know how to set up product and service items in QuickBooks Online. The next tutorial in our QuickBooks Online Training Course is How To Set Up Customers in QuickBooks Online. In that tutorial, you’ll learn how to set up contact and payment information for your customers. What is the purpose of the Products & services list in QuickBooks Online?The products and services list represents the list of products and/or services that you sell. You will use items from the products and services list when you create customer invoices, enter purchase orders, and work with inventory. Setting up the products and services list is mandatory in QuickBooks Online.
What must each Product service item be mapped to in QuickBooks Online?When you create a sales transaction in QuickBooks, you are required to map each line of the transaction to a QuickBooks item. Also called "Products and Services," these items allow for greater transparency and precision than mapping directly to general ledger accounts.
What are the four types of products and services that can appear on QuickBooks sales forms?There are four types of products and services that you can make: Inventory, Non-Inventory, Services, and Bundle.
Where do I find products and services in QuickBooks?After you sign in to your QuickBooks Online account, select Sales in the left menu bar and click on Products and Services, as shown below. Navigate to Products and Services in QuickBooks Online.. Let's first learn to enter a new item by hand to better understand the information requested.. |