Getting Started - Setup Items (Products and Services)

Getting Started - Setup Items (Products and Services)

In CustomBooks™, managing your inventory and services efficiently is crucial for smooth business operations. CustomBooks™ allows you to create two types of items: Product and Service. Understanding the distinctions between these types of items and knowing how to create them can aid in keeping accurate records and enhancing the efficiency of your business operations.

Creating a Product Item

Product Items are physical goods that are tracked in your inventory. These items require careful management to ensure accurate stock levels, cost tracking, and order fulfillment.
  1. Go to Inventory > Items, or List > Items. 
  2. Click Create > New.
  3. Enter the Item Code. Assign a unique code or identifier for the product (e.g., product number, SKU).
  4. Enter the product name or Description. Provide a descriptive name or detailed description of the product.
  5. Select 'Product' as the Item Type.
  6. Enter the Item Category to classify the product (e.g., electronics, apparel).
  7. Set the selling Price of the product. For a more complex pricing structure using Price Levels and/or Categories, use the Price Matrix.
  8. Enter the Cost of acquiring or manufacturing the product.
  9. Use Lots: Check this box if the product is tracked using lot numbers for batch management.
  10. Use Serial Numbers: Check this box if the product is tracked using serial numbers for individual identification.
  11. Taxable: Check this box if the product is subject to sales tax. See the Built-in Sales Tax System for more information on calculating and tracking sales taxes.
  12. Discount is Taxable: Check this box if discounts applied to this product should be taxable.
  13. Assembly: Check this box if this item is the final product that your company produces for which the inventory and its raw materials will be managed in the system. For more information about the Assembly feature, see Assembly/Bill of Materials.
    1. Check Has Residuals to track residuals produced as a part of the assembly process.
    2. Check Has Labor if the Assembly/Bill of Materials will include service items like labor.
    3. Check Allow to be Disassembled if the product can be disassembled into its component parts.
  14. Go to the Setup Tab, and set the product item Costing Method, default Inventory account, default Sales account, default Cost of Goods Sold account, Universal Product Code (UPC), and the Decimal Precision (Price & Cost).
    1. Costing Method: Choose the costing method for the product (e.g., Average Cost, FIFO).
    2. Default Inventory Account: Select the default account used for inventory transactions.
    3. Default Sales Account: Specify the account where sales revenue from this product will be recorded.
    4. Default Cost of Goods Sold Account: Choose the account where costs related to goods sold will be recorded.
    5. Universal Product Code (UPC): Enter the UPC for the product, if applicable.
    6. Decimal Precision (Price & Cost): Set the number of decimal places for price and cost calculations.
  15. Go to the Units of Measure (UoM) Tab and set the product item default Units of Measure Set, the default Sales Unit, and the default Purchase Unit. You can also set the product item Weight and Dimensions: Weight, Length, Width, and Height.
    1. Default Units of Measure Set: Select the default unit of measure set for the product. To know more about the UoM Sets, see the UoM Sets knowledgebase article.
    2. Default Sales Unit: Specify the unit used for sales transactions.
    3. Default Purchase Unit: Specify the unit used for purchase transactions.
    4. Weight and Dimensions:
      1. Weight: Enter the weight of the product.
      2. Length: Specify the length of the product.
      3. Width: Specify the width of the product.
      4. Height: Specify the height of the product.

  16. A picture of the product item can also be added. Click the Add Picture box/button.
  17. To save the product item, click the Save/Sales and Close button.


For a visual guide on creating a product item in CustomBooks™, watch the short video below or go to this video link.



Creating a Service Item

Service Items refer to non-physical services provided by your business, such as consulting, labor, maintenance, or repairs. These items are not tracked in inventory but require proper accounting for billing and financial reporting.

  1. Go to Inventory > Items, or List > Items. 
  2. Click Create > New.
  3. Enter the Item Code. Assign a unique code or identifier for the service item.
  4. Enter the service name or Description. Provide a descriptive name or detailed description of the service item.
  5. Select 'Service' as the Item Type.
  6. Enter the Item Category to classify the service item.
  7. Set the Price of the service item. For a more complex pricing structure using Price Levels and/or Categories, use the Price Matrix.
  8. Enter the Cost.
  9. Go to the Setup Tab, and set the service item default Expense account, default Sales account, default Cost of Service Sold account, Universal Product Code (UPC), and the Decimal Precision (Price & Cost).
    1. Default Expense Account: Select the default account used for expenses related to this service item.
    2. Default Sales Account: Specify the account where sales revenue from this service item will be recorded.
    3. Default Cost of Service Sold Account: Choose the account where costs related to services sold will be recorded.
    4. Universal Product Code (UPC): Enter the UPC for the service item, if applicable.
    5. Decimal Precision (Price & Cost): Set the number of decimal places for price and cost calculations.
  10. Go to the Units of Measure (UoM) Tab and set the service item default Units of Measure Set (e.g., Hour, Minutes, Sessions) the default Sales Unit, and the default Purchase Unit.
  11. To save the service item, click the Save/Sales and Close button.


For a visual guide on creating a service item in CustomBooks™, watch the short video below or go to this video link.



Create a Copy of an Existing Product or Service Item

If you are creating an item similar to another existing item, you may copy it to save time. You can copy an existing item from the Items List View and by opening the Item Card.

Copy an Item from the Items List View

  1. In the Items List View (Inventory > Items), right click the item > Create > Copy; Or highlight/select the item > click the More Actions button in the top-right corner > Create > Copy.
  2. Change the item information that is different for the existing original item (the Item Code must different and unique).
  3. Save/Save and Close.


Copy an Item from the Item Card

  1. Go to Inventory > Items > then open the item that you would like to copy.
  2. On the Item Card, go to More Actions button located in the top-left corner > select Copy.
  3. Change the item information that is different for the existing original item (the Item Code must different and unique).
  4. Save/Save and Close.


By accurately filling out these fields when creating product and service items in CustomBooks™, you ensure comprehensive inventory and service management, as well as precise financial reporting. Properly managed items contribute to efficient operations, enhanced customer service, and better decision-making capabilities within your business. For advanced inventory topics and more inventory knowledgebase articles, go to CustomBooks™ Knowledgebase: Inventory Section.

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