From the Product/Service information window, enter a name for your service. This can be simple ie. Labour Hire, Gardening Services or very detailed ie. Traffic Controller – M-F (8am-6pm). When choosing the complexity of the name you will use consider
Enter an SKU if needed. Note: You will probably only need this if you are setting up an Item for a Point of Sale (POS) system. Otherwise leave it blank.
Insert an Image if required. This is completely optional. Again, particularly useful when setting up a Point of Sale (POS) system. To insert a picture from your computer, click on the pencil icon and navigate to the image you wish to use.
Category and Class. These are optional items that can be used for Cost Centre and Location Tracking. Choose an appropriate Category and/or Class if required.
Tick “I sell this product/service to my customers” if it is a service item that you wish to use on your Invoices. Most items will have this option ticked.
Write the description that you would like to appear on your Invoices each time you select this Service Item. If you have set up a generic type item you may wish to leave this blank, otherwise write as much as you can to save you data entry when you are
Record a Sales price/rate for the item if you wish (this is optional).
Carefully select an Account from your Chart of Accounts to record all sales of this service against. It is usually an INCOME type account from your Chart of Accounts that is chosen here.
Select a Tax Code from the list available by clicking on the dropdown arrow in the TAX field. Most Services that you set up will be either GST (10%) if it is a service that includes GST, or GST Free (0%) if it is a service deemed GST Free by the GST Legislation
The next step is an optional step. If you wish to set up a Service type Item that you can use in Purchase Orders and Bills Transactions, to track the cost of the Service as well as the Sales Income you generate from it, then you need to tick the “I purchase this product/service from a supplier.”
Tab to the next field and fill out the Description details that you would like to show each time you select this item in a Purchase Order or Bill. If you have set up a generic type item you may wish to leave this blank, otherwise write as much as you can
Record a Purchase price/rate for the item if you wish (this is optional).
Carefully select an Account from your Chart of Accounts to record all purchases of this service against.
Select a Tax Code from the list available by clicking on the dropdown arrow in the PURCHASE TAX field. Most Services that you set up will be either GST on purchases (10%) if it is a service that includes GST (and the supplier providing the service is registered)
The option of Out of Scope (0%) will only be used for items that are beyond the scope of the GST system (in other words, should not appear on the BAS at all). This might be chosen if you are setting up a Clearing Type Item or a personal item.
You are now finished setting up your item ready to use in your Invoices and/or Estimates/Bills and Purchase Orders. Choose Save and Close to record the item.