How do I Utilize Services

I'll share information about COGS and on what report you'd normally see it, @Mark Rhoa.

COGS keeps track of all of the expenses related to the things you sell. This comprises direct material and labor costs associated with the manufacture of any product or service sold.

Let me guide you in properly setting up service products to appear under COGS and to track with the same retail cost:

1. Open the Lists menu, then click on Item List.
2. Double-click the Service item.
3. Check the This item is used in assemblies or is purchased for a specific customer: job box.
4. Choose an expense account on the Expense field.
5. Hit OK to save it.

For more information, read this article: Learn about the chart of accounts in QuickBooks

Just leave a reply to this thread if you have other questions about COGS or QuickBooks. We're here to back you up. Have a nice day!

I get COG when dealing with Inventory items or non inventory items.  My issue is when we utilize a service.  Either stand alone or in an assembly.  A service that we out source.  Let's say welding.  If I make 10 widgets and have a welding service in there for each.  How should that service be entered?  It seems when I check the box for (Use in an assembly) it doesn't credit and debit correctly. 

What if I hire a service to weld 1 big project for me?  Is that just a standard service against COG? 

Hi, Mark Rhoa.

I'll share additional information about utilizing service items in QuickBooks Desktop.

When you set up a service item used for assembly, you'll have to select the box " This service is used in assemblies or is performed by a subcontractor or partner". Then, choose the Cost of Good Sold under the Expense Account and select Income Account from the dropdown list. If you're unsure of which income account to use, I suggest reaching out to your account for the proper account selection to ensure the accuracy of your books.

If you want to hire a service to weld a project, you can set up a standard service item and select an expense account under the Account dropdown.

I've included this article for more details about tracking inventory in QuickBooks Desktop: Understand inventory assets and cost of goods sold tracking.

You're always welcome to add any details if you have further questions about the service item. We're here to help you anytime.