How to add items in Quickbooks - Adding Inventory items in Quickbooks - Tutorial for beginners

next you want to put in your items that you're going to sell um to do that you're going to pick on uh actually if you pick on the home menu there's two at least two ways we can get into the screen if you pick on lists there's one that's called the item list that's the items that you're going to sell and also there's items and services that will be another way to get in there uh let's go into the item list okay so um this can be services this can be products uh this can be things that you use to make other products anything that you're going to have uh anything you're going to purchase you know those kind of things will be on your item list so we're going to add a new one here we're going to pick on item and we'll say new so uh let's click on okay so uh now see how you can make it a service or an inventory part or some of these other things as well in this case I'll add a service and it's going to be uh software support um I I usually do it by the hour now you could make that a sub item uh if you want to group things in a different way uh look at this box this could be important for some of you this service is used in assemblies or it's performed by a subcontractor or a partner so if that's the case you would check check that box you can put it a further description on when we either purchase this or when we um when we sell it uh that description is going to come up as a default I'm just going to fill that in so this rate over here that'll be the default rate when you sell it now also um you want to assign this uh is it taxable or non-t taxable in my state actually this kind of service is non-t taxable so you can do that item by item uh also over here where it says account when you sell that what what income account is that going to uh is that going to update in this case it's going to be the sales software account that was actually set up in the chart of accounts because I made my company a uh a software company in the interview all right uh so like any other pull down if you wanted to add a new one in there you can do that at that time as you can see but that's fine uh now um at that point uh I can make it inact if I if I needed to but at this point I'm ready to save that service click on okay and then there it is let's add a different type of item let's add an inventory item and you'll see in different fields uh once again I'm going to pick on item and then we're going to pick on new item and we'll click on okay all right so this time this is going to be an inventory part let's say that I sell mous pads right now we could make that a sub if we wanted to if there's a manufacturer's part number um associated with that you can put that in there now we have a a description for when we purchase it from our vendor and we have a different description for when we sell it to our customers now see how the description is the same but you could change it uh so the cost is what you pay for it from your vendor so let's say I pay $150 for that and the sales price is what you sell it for let say we sell for $500 uh for $5 okay now you need a cost of goods sold account and it already default at that as the cost of goods sold if you wanted a different account of course you can pick that is this item taxable yes it is uh if you have a preferred vendor for that uh you can do that let's say get that from Joe's computer supplies now this is important the income account when you sell that what income account is that going to update in this case it's going to do sales uh Hardware okay again from your chart of accounts and then when when it's in stock which in which uh asset account is it going to uh update uh and we'll do we have an invo inventory account and let's say the reorder point is going to be 20 let's say on hand you have 30 now what it's going to do it's going to take the total value it's going to calculate that by taking the onand amount multiplying it by the cost and then that's going to update the total value as you can see $45 all right so as you can see there's some additional Fields here when we have an inventory part as when uh as when we did the the service a few minutes ago I'm going to click on okay and now notice how we have the mouse pads and we have the um the software support you could have as many items as you wanted to notice here that we have the onand and the price it shows right on that screen okay now I want to show you something the way we got to the screen was we picked on lists and then item list uh now of course from here I can pick on item and add new ones or edit those or the delete them you may also want to duplicate them because uh some items are very similar to other items that'll save you some time by duplicating them now you can also right click on the items and do uh edit or duplicate there as well so let's go ahead and close this window I want to show you something we we just said that we had 30 mouse pads uh in stock so uh or on hand so that actually updated the chart of the accounts if I pick on lists and then chart of accounts notice how we have this one that's called the inventory asset and now that's gone up by $45 and then uh that that changed our Equity so it took the the bank account amount plus the uh inventory asset and that's the actual actual Equity that we have in the um in the company so you're going to see as you as you just update the regular transactions that the chart of accounts is is pretty much going to take care of it s and that's really a big benefit of using QuickBooks but at that point I was able to show you how to um add the inventory items in and then also how that affected the chart of accounts