You can set up information about the products and services a company offers on the Set Up Products screen, allowing for easy selection and tracking, and ensuring that descriptions and prices entered on customer invoices or credit memos are uniform and up-to-date.
From this screen, you can create records for new products or services, edit existing records of products and services, and delete products or services you no longer offer.
Alternatively, you can use this screen to import product and service information from QuickBooks or Peachtree or from a previously-prepared generic Excel spreadsheet.
Note: To import existing products and services, you must create the source files in QuickBooks, Peachtree, or Excel before beginning the import operation.
You can also set up purchased items to be tracked as inventory from this screen if you set up inventory tracking on the Company Preferences screen.
To set up, edit, or delete a product or service record:
1. Select Products/Services from the Sales menu to open the Set Up Products screen.
2. Ensure that New is selected in the Select Product field to enter a new product or service, or select an existing product or service to edit from the Select Product drop-down list.
Alternatively, you can click Import to begin to import previously-prepared information, or you can click List to open the Product List screen to review a list of existing product and services records, and click the Product Code of an existing product to open it for editing or review in the Set Up Products screen.
Note: You can select an existing product or service and click the Delete button to delete it. The Delete button is disabled if the item has already been used in any transactions.
3. Enter an identifying code for the product or service in the Product/Service Code field.
The code can be up to 10 characters in length.
Note: This is a required field.
4. Enter the name of the item or service in the Description field.
The description can be up to 75 characters in length.
Note: This is a required field.
5. Specify a default quantity and a unit price for the item or service in the Default Quantity and Unit Price fields.
The default quantity is the standard quantity to include on customer invoices when this item is selected, and the unit price is the default amount to charge for the item or service. If you specify a default quantity greater than 1, the unit price applies to the total, not each individual item.
The default quantity and unit price can be adjusted on any customer invoice.
6. Click the Taxable checkbox to indicate whether sales tax for this item is to be computed on customer invoices.
With this option enabled, unless the customer is tax-exempt, sales tax is computed on invoices featuring this item, based on the sales tax settings set on the Sales Preferences screen.
7. Select the revenue account to credit when the product or service is sold from the drop-down list in the Revenue Account field.
8. Click the Inactive checkbox to create the record of the product but make it inactive.
Inactive products cannot be selected on invoices. You can use this option to create a product record for a product before it is offered for sale, or to suspend sales of products that are not available for any reason.
9. Click the Inventory checkbox, if available, to indicate that the product is an inventory item.
Inventory-related fields appear on the screen. This option is not available if you have not enabled the Use Inventory option on the Preferences tab of the Company Setup screen.
Note: You can also enter and maintain records of inventory items using the Set Up Inventory Products screen.
10. Select the account to charge for purchases of this item from the drop-down list in the Purchase Account field, enter the initial quantity on hand in the Beginning Inventory Count field, and the initial cost for the quantity on hand in the Beginning Inventory Balance field, and enter the quantity below which the item should be replenished in the Inventory Threshold field.
These fields are only available if you have enabled the Inventory Item checkbox.
You can set an alert on the Alert Preferences screen, to prompt you if the quantity on hand falls below the Inventory Threshold.
11. Click Save to save your entry, and click Add to enter another record.