Creating Product Records in QBO Part 2

Creating Product Records

Will Product Records Really Help?

Last week we talked about setting up QuickBooks Online so it would keep product records. Now that our account is properly set up for this function, we can start implementing this feature in our daily transactions. There are several different ways we can use product records within QuickBooks Online.

Creating Preferences for your Product Records

Before you can start using your product records, make sure to establish your preferences. You can do this by navigating to the “Product and Service” window. Once you have done that, a table will appear. In the table click on the down arrow in the “Action” column. From here you can run a report, adjust the starting value and quantity of an item, reorder or edit the record.

Note: If you are planning on adjusting the quantity or starting value of a product, make sure you fully understand the change you are making because it will affect your bookkeeping. If you don’t know the reason for making this modification, feel free to reach out to us. We specialize in setting up and maintaining QuickBooks Online accounts for small businesses and are always happy to help.

A feature that the “Products and Services” window has is colorful buttons at the top of the page. These buttons show what is out of stock and what is low in stock, so it is easy for you to stay up to date on what you will need to reorder.

Using Your Product Records

Since your QuickBooks Online is now set up to create product records and your preferences have been set, it is finally time to start putting them to use.

Invoicing and Sales Receipts Have Never Been Simpler

Product records will make your daily task of invoicing and creating sales receipts quicker and more efficient.

How to Add a Product of Service to an Invoice or Sales Receipt

  1. Click on the “+New” button at the top of your screen
  2. Pick the transaction you are wanting to make
  3. Choose the Customer you are invoicing or giving the sales receipt to
  4. Check that the fields in the upper portion of the screen to confirm they are correct
  5. Under “Service Date” use the calendar graphic to select the date of the purchase or service
  6. Use the drop-down menu for Product/Services to select the appropriate item
  7. Fill in the quantity sold and any other necessary information for the transaction
  8. Click Save

Any information that you filled in while creating the product or service in your Product and Service List will automatically populate in the form when you create your invoice or sales receipt. This will save you time and limit the possibility for human error.

Useful Reports

By creating product records with QuickBooks Online all of your information will be in one spot. The software will also automatically update the records as invoices and sales receipts are created. You can see how this affects your books by using reports.

Four of the most useful reports related to product records are:

  1. Sales by Product/Service Detail –this report shows you sales you have made within a specific time period.
  2. Product/Service List –this report provides you with a quantity on hand for each product or item required for services.
  3. Inventory Valuation Detail –this will show the quantity on hand for each item and how much it has sold.
  4. Physical Inventory Worksheet –this report show the number for any items currently on purchase orders.

These reports give you a helpful overview of what products are getting sold the most, so you can have a better understanding of how you are making your money.

Why Choose QuickBooks Online?

Choosing to use QuickBooks Online as your small business accounting software makes daily bookkeeping tasks become simpler and quicker. Creating product records can help streamline the invoicing and sales receipt transactions and can aid in more current reports for your company.

We Can Help

If you want to learn more about creating product records, or have any questions please reach out to us. We are a team that specializes in teaching others how to set up and maintain their QuickBooks Online account so that it meets their small business accounting needs.

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