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Service Items vs Fabrication items

What is a 'service' item defined as?  

We have one 'service' item set up that includes all of the material purchased, fabrication, taxes, and the end product is installed for the customer.

 

I now have a situation where we are buying the materials and fabricating the item but not doing any install.  I am assuming this is different that the 'service' item and would be taxable.

 

Thanks for your help.

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Re: Service Items vs Fabrication items

Whether something is taxable or not is determined by your state, not all states are the same, check with yours.

 

Generally a service item is what you do or sell, with the exception of inventory you keep on hand.

 

Buy the materials and use an asset account to accumulate costs, when you sell it use a service item and a journal entry to move costs to job costs or materials cost or cost of sales expense. debit expense and credit the asset account