How to Add an Item — Service in QuickBooks Online

A Service item in QuickBooks Online records the services your business provides, such as consulting, installation, repairs or professional fees. Creating service items lets you invoice customers quickly, keep pricing consistent, and track service income accurately.

Step 1 – Open Settings

Click the Settings (gear) icon in the upper-right corner of QuickBooks Online, just to the right of the search bar.

Figure – Opening Settings

Step 2 – Open Products & Services

In the Settings menu, select Products and services under the LISTS section. The Products & Services page opens, where you can view, create, edit and manage all the products and services used in your company.

Figure – Opening Products & Services

Step 3 – Click New Product/Service

Click New product/service at the top-right of the Products & Services page.

Figure – Starting a new item

Step 4 – Select Service

From the menu that opens — Service, Inventory item, Non-inventory item, Bundle, Batch import — select Service.

Figure – Choosing the Service item type

Step 5 – Complete the Basic Information

A Name – Enter a unique, descriptive name that makes the service easy to find when raising invoices, estimates and sales receipts.

B Item type – Confirm the type is set to Service. The item type controls how QuickBooks treats the item in transactions and reports.

C SKU – Optional identification code that helps you organise and search a large item list. Leave it blank if your business does not use SKUs.

D Category – Optional grouping that keeps the Products & Services list organised and makes reports easier to read.

Figure – Completing the basic information

Step 6 – Enter the Sales Information and Save

A I sell this service to my customers – Tick this box so the service can be added to sales forms.

B Description – A brief explanation of the service. It can appear automatically on customer invoices and other sales forms.

C Price/rate – The standard amount you charge. It fills in automatically whenever the service is added to a sale.

D Income account – The account where revenue from this service is recorded — choose carefully so your reports stay accurate.

E Save – Click Save at the bottom-right of the form to create the service and add it to the Products & Services list.

Figure – Entering the sales information