Can someone explain the difference between "sales" and "sale of product income" categories?

Hi there, blinkyblinky,

I'm here to identify the difference between Sales and Sale of Product Income in QuickBooks Online.

Sales is charges to customers for your goods and services. While Sale of Product Income is for tracking income from selling products. It includes all kinds of products, such as crops and livestock, rental fees, performances, and food served.

Use those categories above to keep track of your product and services. Feel free to read through these handy articles to learn how to set up and group your items.

• Add product and service items
• Group your products and services into different categories.
  
  

Stay in touch if you need additional information. I'm always available here in the Intuit Community to help.

AHHH that sounds like the exact same thing. Tomatoe ... Tomato. That explanation still makes no sense to me what the difference is. So if I'm selling clothes online, would that be under sales or Sales of product Income?

Thank you for joining this thread, bmblebee.

I understand that you need to choose a category for the items you're selling. You can use Sales or Sale of Product Income depending on how you want to track what you sell.

You can use an income account QuickBooks already set up for you. But if you need a new account, scroll to the top of the drop-down list and select + Add new. Or learn more on Chart of Accounts first to help categorize your transactions.

Upon sharing this, I still suggest consulting your accountant to help you categorize your products. They can provide specific instructions to ensure your books have accurate records.

If you buy and sell many different things, you can use categories to easily find products or services. See the attached screenshot below as your visual guide.

If you want categories to show on forms like invoices and sales receipts, check out this article: Customize the forms you send to customers.

In addition to this, categories help you with reporting products and services. When you run sales or inventory reports, they're grouped in a way that makes sense to you.

Let me know if there's anything else you need. I'll be right here to answer your questions.

Hi, I know that this is 3 years too late, but better late than never. So this link actually explains it in simpler terms. Rather than me retyping everything that it says. I am posting the link.

https://oboloo.com/glossary/sales-of-product-income-vs-sales/ 

I hope this helps anyone who may have this same question.

thanks for sharing!