Manage Product and Service Items to QuickBooks Online

Let’s start our article about how to manage product and service items to QuickBooks Online. If you are looking to make any adjustments to your QuickBooks Online products and services then it is quite sure that you have already set up your accounts preferences to record them.

QuickBooks Online edit product and service items is a great way for small businesses to manage their products. It lets you add, edit, and delete product information from your account from anywhere in the world. This service “edit product or service” allows you to easily update product information, prices, descriptions, and images in your QuickBooks Online account. You can also add new products, change prices, and more.

Change Product and Service Item types in QuickBooks Online

You assign them a type when you (add) manage product and service items to QuickBooks Online. There are four different types of items: services, non-inventory, inventory, and bundles. These help you in classifying the goods and services for better tracking. You can change your item type later if you make a mistake.

There are a few things to keep in mind, and we will assist you in making the right decision.

Change Non-inventory and Service items

Non-inventory and service items can be changed to any other kind. This means that you can convert a non-inventory item to a service or an item from your inventory. Also, you might convert a service item into a non-inventory or inventory item.

Inventory: Products you sell and keep track of your inventory. For QuickBooks Online Plus and QBO Advanced, inventory features are offered.

Non-inventory: Non-inventory items are those that you buy or sell but do not need to keep track of the quantity. For example, you wouldn’t sell directly the nuts and bolts you use for installation work.

Services: The services you offer to customers.

Bundle: A bundle is a collection of goods or services that you sell as a single item. Such as a basket of gifts.

• You have to go to Settings and then you have to select Products and Services.
• Locate the service or non-inventory item you want to change.
• In the Action column, you have to click Edit.
• Then you have to select Change type.
• Decide between inventory, services, and non-inventory.
• Follow the instructions to configure the item as either an inventory item, a non-inventory or service item, or both.
• When finished, you have to choose Save and Close.
• Use Batch actions on the products and services list to convert various items to services or non-inventory items.

Change the inventory items type

The quantity you have in stock calculates the worth of your inventory. This value is tracked by QuickBooks in the Inventory Asset account on your balance sheet. Because doing so would mean deleting assets that are essential to your company’s overall value, you modify inventory item kinds in the same manner.

There are a few changes available to you if you need to modify an inventory item to another category. You can just sell what you currently have in stock. Make the inventory item inactive once the quantity is 0. After that, you can make a brand-new non-inventory or service item to take its place.

Also, if a mistake is made and an inventory item needs to be removed, you can make an inventory adjustment. This keeps everything in balance by documenting what you changed. Without help from your accountant, you shouldn’t change your inventory for any other purpose.

There are a few steps to take if you decide an inventory item needs to be removed.

Step 1- Change the quantity of the inventory item

• Choose Settings then you have to select Products and Services.
• Locate the item in the stock. Next, choose Edit in the Action column.
• Select Quantity from the menu next to Adjust in the Quantity on hand column.
• In the New Qty column of the Inventory Quantity Adjustment box, you have to type 0.
• You have to select Save and Close.

Step 2- Adjusted value’s total value

As of right now, QuickBooks shows no inventory for that item. Get the adjusted value’s total value next.

• After choosing Settings, you have to choose Chart of Accounts.
• Then you have to find the inventory Shrinkage account and then you have to select Run report.
• Find the item in the inventory that you adjusted. Make a note of the adjustment’s dollar value.

Step 3- Create a journal entry to reflect the updated inventory

• You have to select +New.
• Then you have to select Journal entry.
• Choose Opening Balance Equity from the Account selection on the first line.
• Enter the adjustment’s amount in the Debit field.
• Choose Inventory Shrinkage from the Account selection on the second line.
• Enter the same adjustment amount in the Credits column.
• At last, you have to select Save.

Change the Account for a Product or Service Items in QuickBooks Online

Make sure your company has an accurate record of your transactions and consider using a different income account for your product or service item. Learn how to (change) manage product and service items to QuickBooks Online.

How to Change the income account for your items

• You have to go to Settings and then you have to select Products and Services.
• Then you have to find the item and then you have to select Edit.
• Select the account you want to use from the Income Account option.

• Then you have to select Save and Close.

To update past transactions

Select the Also update this account in historical transactions checkbox for services and non-inventory goods after step. All transactions using the item are updated. The checkbox is absent when it comes to inventory items. This is due to the First In, First Out (FIFO) system used to maintain inventory item quantities on hand. In contrast to services and non-inventory products, FIFO has an impact on your assets and Cost of Sale (COS).

Only new transactions are impacted when the income account for inventory goods is changed. Create a new item with the appropriate income account and use it to replace the outdated item if you wish to update past transactions.

• Add a new inventory item. You have to select the correct income account.
• Then you have to go to the Sales menu and then you have to select Invoices
• Choose the invoice that needs updating.
• Select Delete Trash can next to the previous inventory item.
• Add the new item to the inventory and then enter the appropriate quantity.
• Then you have to select Save.

How to Add Product and Service Items to QuickBooks Online

It’s simple to keep track of your earnings and expenses for any products or service in QuickBooks Online. To make updating these goods and services to sales forms simple, you may also enter them as items. You receive more thorough financial reports as a result, and transactions are completed more quickly.

Here’s how to add services and goods, often known as non-inventory items, that you don’t intend to monitor as inventory.

Learn about product and service types

Inventory-  Products you sell and keep track of your inventory. For QuickBooks Online Plus and Advanced, inventory features are available.

Non-inventory- Non-inventory items are those that you purchase or sell but do not need to keep track of the quantity. For example, you wouldn’t sell directly the nuts and bolts you use for installation work.

Services- The services you offer to clients.

Bundle- A bundle is a collection of products or services that you sell as a single item. like a basket of gifts.

Step 1: Add a new product or service item

A product or service only needs to be created once. You can add them to sales forms as many times as needed after creating them.

• You have to go to Get Paid and Pay or Sales, then you have to select Products and Services.
• Then you have to select New.
• Select Service or Non-inventory.
• If you track the product or service, include a Name and an SKU.
• Choose the category that best describes your product or service from the Category selection.
• Confirm the checkbox next to I sell this product/service to my customers is ticked if you plan to sell the item.
• Enter a description in the section marked Description on sales forms. On their sales form, your clients will notice this.

• In the Sales price/rate field, you have to enter an amount. The Sales price/rate field can be left empty if you bill for services at a variable rate. When you fill out the invoice or sales receipt, you have to add the price.
• Choose the account you want to use to track the sale from the Income account selection.
  • To create a new income account, you have to choose + Add new or use the income account that QuickBooks has already created for you. 
• Sales tax is automatically applied based on location in the sales tax section. Then you have to select Edit sales tax for more detailed options or to make the product or service non-taxable. Afterward, depending on the good or service, you have to follow the following steps.
  • You have to select Nontaxable if the products or service is tax-exempt.
  • Next, you have to click Done.
  • Use the Search field or Browse all to identify and choose a more particular product or service type if the item has a special tax rate. Next, you have to click Done.

• When finished, you have to choose Save and Close.

You can now add the products and services to your invoices, receipts for sales, expenses, and other sales forms. Additionally, you can track it on your financial reports.

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

If you want to keep track of your purchases of products or services.

• Begin by going to Get Paid and Pay or Sales, then you have to select products and services.
• You have to select Edit in the Action column after finding the product or service on the list.
• You have to select I purchased this good/service from a vendor.
• Add a description– Bills, purchase orders, and other forms you send to vendors show this.
• Then you have to add the cost. Don’t worry if the price changes. When the time comes to buy supplies, you can still enter the updated price.
• Choose the account you use to keep track of the costs of the things you sell from the Expense account dropdown menu.
• Select the vendor you prefer.
• When finished, you have to select Save and Close.

Step 3: Track and manage product and service sell items

Once everything is set up, keeping track of your buys and sales is simple. To get started you have to follow the below steps.

• Get help with ordering from vendors if you need more supplies.
• Use these reports to get sales insights.

Edit a product or service item

From the Products and Services menu, you can review and make any of your product or service items.

• You have to navigate to Get Paid and Pay and then you have to select Products and Services.
• You have to find the product or service that you want to change.
• In the Action column, you have to click Edit.
• Now make your changes.
• When finished, you have to choose Save and Close.

Change a product or service item type

Don’t worry if you mistakenly add a service item as an inventory item or an inventory item as a non-inventory item.

Delete a product or service item

Items that have been made inactive no longer appear on sales forms, lists, or financial reports. The item is only hidden; it is not deleted.

• You have to go to Get Paid and Pay and then you have to select Products and Services.
• Then you have to find the product or service that you want to change.
• Choose Make Inactive from the dropdown menu that is next to the Action column, and then click Yes to confirm.

Later on, reactivate an item

• Firstly, you have to go to Get Paid and Pay, and then you have to select Products and Services.
• Then you have to select the Filter icon. 
• You have to select All from the Status drop-down menu, then choose Apply. You may see both your active and inactive items here.
• You have to find the product or service that you want to reactivate.
• Select Make Active from the Action column.

Hopefully, with the above blog, you are cleared with the above blog that manage product and service items to QuickBooks Online. If still you face any issues then you can call the help desk team and chat with QuickBooks.

Frequently Asked Questions