Using Service Items

Item Types | Inventory Overview

Service items are defined in inventory and typically are used to list non-merchandise and labor charges on sales orders, work orders, or sales receipts to complete a job. Use normal new item procedures to define service items in inventory, selecting the S ervice item type.

Use the following guidelines when defining service items in inventory.

- You cannot enter an on-hand quantity for a service item. Service items always have a zero on-hand quantity, since they are non-merchandise items.

- To charge for labor, enter a description of the labor in the Item Name field and a price equal to what you charge per hour (or per job). If you charge by the hour, you can charge for partial hours by listing the service item on a document and entering a decimal quantity, e.g., 0.5, 2.75, etc. Point of Sale will calculate the correct labor charge.

- Generally, service items have no cost, but there may be exceptions, such as when you outsource the work and pay the third party a fee for the service. Make an entry in the item Avg Unit Cost field if this is the case.

- You may want to map custom Income, Cost of Goods Sold (COGS), and Asset accounts on the Additional Info tab of the item form so the charges (when recorded on a receipt) are posted to your financial software in the manner you choose.

Related Topics

Use a service item for shipping charges

Use work orders