This item type is used for services your company either charges a customer for, or purchases from a vendor.

This item is available in QuickBooks Desktop and QuickBooks Online.

To add this as an item, you will need to add a new item within the Items app, and choose Sales Tax

If you do not see the Items app, you will need to get access permission for this app from your administrator. The Items app is found in the Accounting Lists Pack. 

  • Item Name/number: Identify the service by name or by number.
  • Subitem of: Choose an existing item to associate with this item from the drop down list (e.g. "cleaning out gutters" might be a subitem of "landscaping").
  • Unit of measurement: How is your service measured (for example, hours, days, etc.)? The options in this drop down list come from your QuickBooks.
  • Active Service Item: Click this option to ensure this item appears in the "Active" filter view in the Items list, and so it will also appear in dropdowns.
  • Sales Description: Include descriptions of what has been purchased or sold. Use it to include additional information that isn't covered in other fields on this screen.
  • Service performed by subcontractor or partner: Flags this record in QuickBooks as being subcontracted out to a third party.
  • Sales Price: The cost of the service to be purchased, in dollars.  You can also specify the rate as an added percentage to your cost. For example, set the rate to 50 and check-off the Percent box for a service that costs you $100; the rate charged to the customer will be $150.
  • Tax Code: Choose whether or not this sales amount is tax-applicable.
  • Income Account: Choose which account is associated with the customer payment. The options in this list come from your QuickBooks.
  • Save: Saves the new or edited item.
  • Save & New: Saves the new or edited item and clears the fields above.
  • Delete: Deletes the item. This cannot be undone.


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