Creating New Items

Item Name/Number

This field can be alphanumeric, and is limited to 13 characters. An appropriate, unique abbreviation will make the data entry process more efficient.

Sub-item of

Just as sub-accounts are a way of grouping similar accounts together, the same is true for sub-items.

Description, Rate and Tax Code

The following three fields streamline data entry, but can be overridden when used, if necessary:

Description - The purpose of the description field is to make data entry more efficient. The description can be as detailed or general as desired.

TRICK: If you use the item and blank lines appear on the invoice, the common cause is blank lines in the description. To correct the problem, edit the item and delete the blank lines by going to the end of the typed description and press the down arrow to the end of the field, then press the backspace key to remove the extra blank lines.

TIP: It is helpful to add the quantity in the description field if this could vary. For example, if you sell your product by the case, you may make the description ABC bottles (15 per case) to eliminate any confusion.

Rate - This pricing field is the usual selling price for this item. It can be zero on the item and then entered as needed if pricing varies.

Tax Code – In prior versions, this field was labeled as taxable.  If this box had a checkmark in it, the item is usually taxable. Now with version 2002 the field has changed to tax code to permit additional descriptive information as to why the item is typically taxable or not.  In all versions it is possible to change the code at the time the invoice is created for exceptions.

Account

Choose the appropriate account from the chart of accounts or create a new one.

TIP: If an item that is not an inventory part is being used for purchases and sales, it is important to have QuickBooks Pro or QuickBooks Premier to permit the purchase to be coded to an expense and the sales to be coded to income. Without the advanced job-costing feature included in QuickBooks Pro or QuickBooks Premier, both the purchase and sale will be coded to the same account when the item is used. The latter case would result in the net amount on the Profit and Loss report.  To enter an account for purchases versus sales, check the box next to:

·         For a service type item - performed by sub contractor, owner or partner

·         For a non-inventory part - purchased for and sold to a specific customer job

·         For an other charge - this is a reimbursable charge

List Limits Expanded

For most QuickBooks users, the list limit for the QuickBooks Pro and Premier products of 14,500 is sufficient.  For some, however, that is not the case.  We have been seeing increased list size for a variety of reasons.  One of the most common is the increased number of customers as the result of web site sales.  For version 6 and prior, the list limit was doubled for the Enterprise Solutions Product.  New with version 7, the Enterprise Solutions limit has been removed.

More information on this topic

Items