Product Records in QuickBooks
After you’ve created product and service records for your business, you can use them in many places in QuickBooks.
In part 1 last month, we discussed the steps that you need to take when building your product and service records in QuickBooks. We discussed that you should click on the gear icon in the upper right corner, click Account and settings, the Sales tab, and then Products and Services. After you have listed your preferences, click on the gear icon again, next click the Products and services, next click New and complete the required fields for each record.
You should establish your preferences before creating product and service records,
There are 2 ways to view the Products and Services screen. You can click on Sales in the toolbar, and then Products and Services. Or you can click on the gear icon, then Products and services under Lists. This table is a kind of dashboard for your products and services that displays information in real-time for each item’s pricing and inventory levels and its type and tax status.
You can work with that product in a variety of ways when you click the arrow in the Action column. Here, you can adjust its starting value and quantity, reorder, and run a report. At the top of the screen, the large colorful buttons will give you an instant view of the number of items that are low on stock and those that are out of stock. When you click on one, a list of those items will appear.
Warning: Be sure you understand your reason for modifying inventory level numbers (either their starting value or quantity) and the impact this could have on your reporting.
Using Your Records
You’ll understand why it’s recommended that you complete all of the relevant fields in your product and service records after you begin creating transactions, such as invoices and sales receipts. You’re able to supply data as you go along. However, if you do your setup work first, your daily work will go much faster.
For example, you can add a product or service to and invoice or sales receipt by clicking on the +New button at the top of the screen and select the type of your transaction. Next, click the down arrow in the first field in the upper left corner and choose the correct Customer. Next, check the rest of the fields in the top half of the form and make any necessary changes. Then click in the field under Service Date, next click on the small graphical calendar to select the date of the sale. Then click on the down arrow in the field below Product/Service.
You can select from product or service records you’ve created or add a new one on the fly.
In the image above you can see that the first option in the list is +New. If you haven’t yet created a record for what you’re selling, click on it. Then the Product/Service Information pane will slide out from the right side of the screen. Or click on the correct product or service in the list, if all the relevant fields are in its record, QuickBooks will complete the rest of the line will the needed information. You only have to enter a quantity in the Qty field.
Now enter any information requested at the bottom of the screen and Save the transaction.
For any products you just sold, QuickBooks will reduce the quantity available for these products.
By looking at reports, you can see your sale and how it affects inventory. For example, Sales By Product/Service Detail will show you the sale you just made as well as any others within the selected date range. Product/Service List provides a number for the quantity on hand. Run Inventory Valuation Detail to see a combination of the data in both of those reports. You can use the Physical Inventory Worksheet which displays a number for any items currently on purchase orders, if your company counts inventory periodically.
When you maintain thorough product records in QuickBooks, you’ll find that your daily sales work can be both fast and accurate. QuickBooks can also help you maintain your inventory so that you don’t run short or tie up to much of your cash in excess products.
At Summit CPA, we offer multiple resources to assist and help your business grow. If you’re ready to get an edge on your competitors? Contact our office at (866) 497-9761 to schedule an appointment with our advisors.