Add product and service items

You can track income and expenses for each product or service in QuickBooks Online. Enter products and services that you sell as items so they can be quickly added to sales forms. This process provides more detailed financial reports and helps you complete transactions faster.

This article focuses on setting up product and service items that you don't track as part of your inventory. If you plan to track product quantities, add them as inventory items instead.

Understanding Product and Service Types

QuickBooks offers different item types for tracking:

• Inventory item: Products you sell and track quantities for. Inventory features are available in QuickBooks Online Plus and Advanced.
• Non-inventory item: Products or items you buy or sell but don't need to track quantities for. For example, nuts and bolts used for an installation job but not sold directly.
• Service: Services you provide to customers.
• Bundle: Several products or services sold together as a single item, such as a gift basket.

Step 1: Add a new product or service item

You only need to create a product or service once. After creation, you can add them to sales forms as many times as necessary.

Tip: If you already track your products and services in a spreadsheet, you can save time and import them all at once.

How to set up the item details

1. Follow this link to complete the steps in product
2. From the New ▼ dropdown, select Non-inventory items or Service.
3. Enter a Name for the product or service and a SKU if you track them.
4. (Optional) From the Category ▼ dropdown, select the category that best describes your item. Find out more about item categories.
5. (Optional) From the Classes ▼ dropdown, select or add a class for tracking purposes.

How to add sales information (if you sell the item)

1. Follow this link to complete the steps in product
2. Confirm that the I sell this service to my customers box is ticked.
   Note: If you don't sell the item, proceed to Step 2.
3. In the Description field, enter a description that your customers will see on their sales form.
4. Enter an amount in the Price/rate field.
   Note: If you charge a variable rate for services, you can leave this field blank and add the price when you fill out the invoice or sales receipt.
5. If the price is inclusive of GST, tick the box.
6. Use the Income account ▼ dropdown to select the account you want to track the sales from. You can use an existing QuickBooks income account or select + Add new to create a new income account. Find out more about adding accounts to your chart of accounts.
   Note: Changing an income account mapping isn't retroactive. It only affects future transactions.
7. If you need to track GST, select the appropriate GST from the Sales tax ▼ dropdown.
   Note: If you don’t see this dropdown, follow the steps to set up GST in QuickBooks.
8. Select Save and close.

You can now add the product and service to invoices, sales receipts, expenses, and other sales forms. You can also track it on your financial reports.

Step 2: Add a service or product’s purchasing info

If you want to track how much you spend on a product or service:

1. Follow this link to complete the steps in product
2. Find the product or service in the list and select Edit from the Action column.
3. Tick I purchase this service from a supplier.
4. Add a Purchase description. This shows up on bills, purchase orders, and other forms you send to suppliers.
5. Add the Purchase cost. If the price changes, don’t worry. You can still enter the updated price when it’s time to buy supplies.
6. If the cost is inclusive of the purchase tax, tick the box.
7. Select the account you use to track the cost of things you sell from the Expense account ▼ dropdown.
8. If you need to track tax on your purchases, select an appropriate tax from the Purchase tax ▼ dropdown.
9. Select your Preferred supplier.
10. When you're done, select Save.

Step 3: Managing Your Product and Service Items

Once you’re all set up, you can track what you buy or sell. Here's how to get started:

• If you need more supplies, get help with ordering from suppliers.
• Get sales insights using these reports.

Edit a product or service item

You can review and make changes from the Products & services menu.

1. Follow this link to complete the steps in product
2. Find the product or service you want to change.
3. Select Edit in the Action column.
4. Make your changes.
5. Select Save.

Change a product or service item type

If you mistakenly added an inventory item as non-inventory, or a service item as an inventory item, you can change the item's type.

Make an item inactive

You can make items inactive so they no longer appear on sales forms, lists, or financial reports. This action hides the item but doesn't delete it.

1. Follow this link to complete the steps in product
2. Find the product or service you want to change.
3. From the ▼ dropdown under the Action column, select Make inactive.
4. Select Make inactive to confirm.

How to reactivate an item

1. Follow this link to complete the steps in product
2. Select the Filter ▼ dropdown.
3. From the Status ▼ dropdown, select All, then select Apply. This shows you all of your active and inactive items.
4. Find the product or service that you want to reactivate.
5. From the Action column, select Make active.
6. Select Make active to confirm.

Related links

• Group products and services into different categories in QuickBooks Online
• Use reports to see your sales and inventory status
• How to turn on and use inventory features
• Get started with class tracking