Items are used to create an estimate, invoice, or sales receipts or to code a bill or check for job costing. You can create one item to track both the cost (expense) and the sale (income) of that item. If you want to track income and expenses by job you will need to create items for all expenses you are tracking and map them to the appropriate income and expense account.
To create an item for job tracking:
- Go to the lists menu and click “Item List” or go to the Home Screen and click “Items & Services”
- Click Item at the bottom of the list and then click New.
- Select the type of item that you want to create:
- Service: Services you charge for or purchase. Examples include specialized labor, consulting hours, and professional fees.
- Non-inventory part: Goods you buy or sell but don’t track (such as office supplies) or materials you buy for a specific job that you charge back to your customer.
- Other charge: Miscellaneous labor, material, or part charges such as delivery charges, setup fees, and service charges, bounced checks, late fees, opening balance, reimbursable expenses, retainers, surcharges, gift certificates, prepayments, retainers, sales tax, and shipping and handling fees.
- Click on the box labeled “This service performed by a subcontractor, owner, or partner”
- When you set up Other Charge items for reimbursable expenses, select the “This is a reimbursable charge” checkbox.
- By selecting this checkbox, you can enter what you paid for the item as well as what you sell it for. The set up screen (below) has a place to enter the expense account you want to charge when using this item when entering a bill or writing a check (left side) and the income account you want to post sales to when using the item on an invoice or sales receipt (right side). Selecting this checkbox also ensures that your job cost report compares actual costs versus actual revenue or estimated costs versus estimated revenue for each job phase.
5. Click “OK” to save the item
To use this item in a bill (be sure to enter the Customer:Job name for job costing):
To use this item in an invoice:
The Job Profitability Report generated with this item would look like this – see the line item “Design” below:
Note: When an expense is used instead of an item, the costs will appear as “no Item” – see above.
For one-on-one training check out: Roper Bookkeeping