QuickBooks 2005: The Missing Manual

The QuickBooks Item Types

Ten types of items are all it takes to satisfy most of the sales needs of small businesses and nonprofit organizations. Learning what each type of item does seems like an unnecessary delay if you're anxious to start keeping books, but choosing the wrong type of item can lead to a dead end that only a major overhaul can fix. This section explains the ten item types. Avoid a six-Advil headache, and read it before you dive in.

Note

You can change only Non-inventory Part and Other Charge items into different types of items. Moreover, these two types convert only into Service, Non-inventory Part, Inventory Part, or Other Charge items. Because of this limitation, be careful when you change item types. If you make the wrong choice, you might not be able to change the item back.

Items for Services

Services are less tangible things that you sell, like time or the output of your brain. For example, you might sell consulting services, Internet connection time, magazine articles, or Tarot card readings. In construction, services represent phases of construction, which makes it easy to bill customers based on progress and compare actual values to estimates. In some companies, such as law practices, the partners get paid based on the hours they bill, so the partners' compensation is an expense associated directly with the income.

The mighty Service item single-handedly manages all types of services, whether you charge by the hour or by the service, associated expenses or ...