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<title>Using Service Items</title>
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<p class="Help-Heading-1" style="background-color: #008000;">Using Service Items</p>
<p class="Help-Text"><a href="inven436.htm">Item Types</a> <span style="color: #c0c0c0;">|</span> <a href="invenvoverview.htm">Inventory Overview</a></p>
<p class="help-text">&#160;</p>
<p class="Help-Text">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 <a href="inven402.htm">new item</a> procedures to define service items in inventory, selecting the <span class="hcp1">S</span><font class="hcp2">ervice</font> item type.</p>
<p class="Help-Text">Use the following guidelines when defining service items in inventory.</p>
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<li class="p-Help-Bulleted" style="margin-left: -20px;">
<p class="Help-Bulleted">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.</p>
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<p class="Help-Bulleted">To charge for labor, enter a description of the labor in the <span class="hcp1">Item Name</span> 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 <a href="inven_qty_decimals.htm">decimal quantity</a>, e.g., 0.5, 2.75, etc. Point of Sale will calculate the correct labor charge.</p>
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<p class="Help-Bulleted">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 <font class="hcp2">Avg Unit</font> <font class="hcp2">Cost</font> field if this is the case.</p>
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<p class="Help-Bulleted">You may want to <a href="../qbpos_qb_data_exchange/financialexchange_itemaccounts.htm">map</a> custom <font class="hcp2">Income</font>, <font class="hcp2">Cost of Goods Sold (COGS)</font>, and <font class="hcp2">Asset</font> 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.</p>
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<p class="Related-Topics">Related Topics</p>
<p class="Help-Main-Topic-Links"><a href="../qbpos_shipping/shipping_serviceitem.htm">Use a service item for shipping charges</a></p>
<p class="Help-Main-Topic-Links"><a href="../qbpos_customer_orders/wo_tips.htm">Use work orders</a></p>
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