An Item is your company's Product or Service. You can create an Item for each physical good or service that you offer to your Customers.
- Item Name: Name of your product or service. Must be unique.
- Unit: The Unit of Measurement for your Item. Kg, Litre, or No.
- Rate: Selling Price of your Item.
- Description: More details about your Item, which will be printed in the Invoice.
You also need to set the Income Account, where your income will be booked for this Item. You can also set the Tax which should be applied while making an Invoice. Expenses are nothing but the cost incurred to generate revenues. Expense Account is a type of temporary account in which all expenses incurred by an entity during an accounting period are stored. You can select the Expense Account in the field provided.
Creating a new Item:
Step 1: Click on the Item option from the sidebar in order to get the list view.
Step 2: Click on the new Button, you will get a blank form.
Step 3: Fill in the details, while filling Income Account, Tax and Expense Account, you can either select from the existing list or create a new account or tax.
Step 4: For instance, here we are clicking on the new Tax option from the list. A modal with a blank form appears.
Step 5: New Tax will be created as well as the tax field will get filled with the new tax that we created.
Step 6: New Item can be seen in the list view.