Products & Services
Saved line items, each with an income account and optional tax. Products can also track quantity and cost.
Products and services are reusable line items with a default price, income account and tax setting, so the same sale is coded the same way every time.
Building the catalog
- Add what you sell
Enter a name, a sale price and the income account it posts to. The description appears on the invoice line.
- Set the tax treatment
Whether the item is taxable and at what rate. It carries onto each invoice line.
- Use it on invoices
Picking an item fills the line's description, price, income account and tax. You can override any of them on one line.
Tracking inventory
A product can track quantity and cost. First choose a costing method (average cost, FIFO or LIFO) in Settings → Accounting → Accounting method, then set the product's Inventory field to Track quantity and cost. The method locks once inventory moves, because changing it later is a change in accounting method.
Buying the product on a bill then debits Inventory, and selling it posts its cost to cost of goods sold. An inventory count sets quantity on hand to what you counted and posts the difference. The Inventory valuation report shows what's on hand and its value.
Good to know
- Changing an item's price on one line doesn't change the catalog.
- Changing an item's income account affects future invoices only. Posted entries keep their account.