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 Service 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.