How to Set Up the Products and Services List in QuickBooks Online

Cody Cromwell
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The Importance of Setting Up Your Products and Services List in QuickBooks Online

The Products and Services List allows you to list all of the items and services that you sell on a business to business basis.

The Products and Services List is important because it affects your profit report and your P&L statement. For example, if you listed an item on your Products and Services List but it wasn’t sold, you won’t show a gross profit for the item. Your Profit and Loss Statement would also show the cost of the item, and it would be subtracted from your Gross Profit to arrive at your Net Profit.

Additionally, the Products and Services List helps you determine which items to place on your invoices and which items to put on your order forms. Items on the Products and Services List are automatically included on invoices, and they’re also in draft in order forms. If you want to place an item on your invoices or order forms, you’ll need to create a new Item and save it on your Products and Services List.

According to QBO’s help file, items on the Products and Services List are automatically included on an invoice if you’re using the Standard General Ledger method of invoicing. For more info, go here to invoicing help or visit this article on how to set up your General Ledger method.

Gather Your Information: Products and Services Checklist

The QuickBooks product and service list is where you’ll set up the products, services, and prices you sell in QuickBooks Online. In this post, we’ll walk through how to set up your products and services so that everyone on your QuickBooks Online team can easily find them.

First, you’ll need to gather the descriptions of your products – and your services.

Write down the questions you’ll need to cover when you are monitoring your finances. Then, write down the answers to these questions. This will help you make sure that your products and services are perfectly set up to match your business needs.

Here’s a list of questions to get you started:

  • What products or services do you sell?
  • What are the costs of the products or services?
  • What do you charge for your products?
  • What do you charge for your services?
  • What are the sales and costs for each product?
  • What are the sales and costs for each service?

You can attach these questions to the list of products and services you’ll be listing in QuickBooks. Or, you can use them to fill out the forms by hand. Either way, when you’re done, your products and services list should match your needs.

Information for Products You Buy or Sell

One time Charges These are the charges that you categorize separately from income on a transaction by transaction basis. All transactions that do not qualify for the sales tax deduction are recorded under an income category. Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Income: This is everything that you earned from your sales.

Information for Services You Sell

Getting your financials in order is an important element of running any business. But setting up your company’s record keeping system can be tricky. QuickBooks is a useful tool that helps you organize, record and maintain all your financial transactions.

But this software isn’t free. It costs money, whether you’re using it at home or at work. However, there are some ways that you can buy this software without having to pay for it outright. So if you’re in the market to purchase QuickBooks for business use, you might be curious about an option called the QuickBooks Online Subscription.

Like most subscription based services, the QuickBooks Online Subscription is a recurring payment plan. You buy a subscription and then your funds are deducted each month…until you cancel your subscription. But it gets more interesting than that.

If you pay for the QuickBooks Online Subscription annually, you have the option to put it on hold for a month at a time. This means that you can temporarily put the purchase on hold, and then you can use this time to try it out for free …or to see if you really need it. You might be surprised to find that you can do everything you want to with QuickBooks on your computer.

Setting Up the Product and Services List in QuickBooks Online

Organizing your customer information is the first step to setting up your QuickBooks online product and service list. Before adding items to the list, you should assign a customer, customer type (opportunity or client), and job (airfare ticket, advertising services, and so on) to the customer.

After assigning customers, type of customer type, and customer job to each customer, you can start adding products and service items to your list.

Below we’ll go over the steps involved in setting up a QuickBooks online product and service list.

{1}. To begin, you need to open up QuickBooks Online. By default, you will be starting in the Main Menu. But if your business doesn’t have a main menu, you might need to create a start screen, or be in the –help” menu.
{2}. Under the –Product/Service List” heading, click on the link that says –Create a New List.”

Navigate to the Products and Services List

If you would like to view a list of non-standard items with detailed information and details about each one, you can navigate to the Products and Services List. To view the Products and Services List, please do the following:

Click on the Tools option in the top of the QuickBooks online window.

Click on Vendors.

Then click on Edit <vendor> from the drop-down menu.

The Vendor drop-down menu will display all of your vendors and offers yet another option to select: Products and Services List.

The Products and Services option will display the list of non-standard products and services that have been created on QuickBooks Online.

Note: You may notice when you select the Products and Services option in the Vendor drop-down menu and then try to open the list, you will see a message that you need to sign in to view vendors. Use the same Enterprise ID that you use to access QuickBooks Online to sign in.

If you click on the Products and Services List option in the Device drop-down menu, you will be taken to a new window with the list of non-standard products and services.

Create New Item

To create a new service item in QuickBooks Online, go to your QuickBooks online account. Choose the Service Items tab and click on Edit. From there you can create a new service item by clicking on New.

Select Service and enter a Name for your new service item. For example, if you sell mowing services, set up your new service item in your accounts as Mow (hire) by choosing the Service icon and you can enter details for the service.

Create a Service Item in Cash Sales List

You can also create a new service item in QuickBooks online by going to the Quickbooks Online account. Once you have clicked on the items tab, select any item under the services list. Add a description and any extra charges you want to add and then click the Save button. Your item should now appear in your services list.

Create a Service Item for an Inventory Item

In QuickBooks online, you can quickly set up new inventory items by creating a new service item. New items often help you maintain your inventory and keep better track of related costs and revenue. Here’s how:

Open the inventory item into which your service will be recorded. Select the Service Items tab. Select the service you’re creating. Click Save Item.

Select Item Type

Run Products and Services List Report

Using the Products and Services list report to set up products is very similar to using the product QuickBooks layout report to set up products. Open the Products and Services list report by clicking the Reports button on the top of the Navigation Pane in the center of the Home screen in QuickBooks Online. Then scroll down and find the Products and Services list report.

In the Product area, click New Item. The window will open.

Enter a product name, choose the quantity, and add a description. Then click Save.

Click the Product drop-down menu and select Run Products and Services List Report. In the Report window, select Full report and click Run. The report will open in a new window.

QuickBooks Online will first display the list of the most popular products. This list includes the names and the products’ descriptions. You will need to select the products that you want to create in payment records, customers’ or vendors’ register. Use the expand or contract buttons on the right side to show more or fewer products.

When you have selected the products that you want to include in the list, click the Print button in the upper-left corner of the window. The print version of the report will open in a new window.

How to Modify a Product or Service on the List

You should do this when that product or service is no longer being offered, but you want the resulting discount to still be applied to items on your product or service list. Or, perhaps a vendor or client class is no longer being sold, but you want the discount to still be applied to items on the product or service list.

To change the product or service to be used as a basis for your calculations, follow these steps.

{1}. Click Sales in the sidebar of the QuickBooks Online window.
{2}. Click the Lists tab.
{3}. Click the Product or Service List button.
{4}. In the top menu drop-down, click the Customer Groups, Vendors, or Products items.
{5}. Highlight the customer group, vendor, or product you want to change.
{6}. Click the arrow to the right of the product or service from the list that appears.
{7}. Choose New.
{8}. In the From drop-down, choose Product or Service and click OK.
{9}. In the To drop-down, choose the item you want based on your business needs and click OK.
{10}. Preview your changes and make any additional changes you need to.

How Do You Delete a Product or Service from the List?

Let’s start with how to add a product or service to the list. When you’re in QuickBooks Online, click the Products & Services button, and then click the Products button.

You don’t need to use any extra fields or buttons to add the product or service (that’s what makes this so easy). When you’ve added it, notice the little check mark at the top of the column named Products? QuickBooks adds a new column named Product Name with the name of the product. If you don’t see the check mark, it didn’t work and you need to redo it.

Once you have a product in the list, you can change its attributes, status, and more. In this post, we’re going to show you how to change its name in QuickBooks.

First, access the Add/Edit Rows button at the top of the Products list. You can also access this button by double-clicking the row where the product is located. In the drop-down menu that appears, select the name of the product.

Now, the product will show up in the Name column where you can edit the name.

Click Save to store the change.

How to Import Product and Service Items

You can use your QuickBooks data files to create items for both products and services in QuickBooks Online.

To set up your offline QuickBooks data file to create items for products and services in QuickBooks Online:

Navigate to the Items list:

In the Items list, click on Create > Companies.

Select the Company you want to import to QuickBooks Online then click Advanced > Projects > Import Item.

Navigate to the Setup icon (the wrench).

Enter the Import Qualifier in the Key column on the left side of the import item setup screen.

QuickBooks Online uses this key to locate your data file.

Follow the prompts to select the name of your data file.

Select the account the transaction will be posted to and then click the Next button.

The import item setup screen includes a copy of the transaction. Review the information and then click the Finish button.

The import item setup screen includes the following columns:

  • importedFullName = the name of the imported item in QuickBooks Online
  • createdDate = the date of the import in the QuickBooks data file
  • assignmentType = the type of individual assigned to the item in QuickBooks
  • note = the description of the transaction

Prepare Your Spreadsheet

Like any other spreadsheet, your products and services list will work better if you start with a clean slate. First, you’ll need to select the Very First tab and type in columns A, B, C, and D.

If you were to add and remove products or services on a regular basis, then you’ll want to add columns for the rest of the products and services. If you’re making a list for the first time, you can leave column A blank.

If you’re importing a list from a spreadsheet, go ahead and select cells A2 to D32 to load those columns as well.

Upload Your Excel or CSV File

If you’d like to make changes to your product or service list in QuickBooks Online, you can do it using a special Excel file we provide. Before you can upload your file, you’ll need to determine the proper file type. There are three file types: CSV, Excel, and Word.

You can find the product and service list in the Online Payroll menu.

In the Online Payroll menu, click Sales & Customers > Product and Service List.

Select the type of file you’d like to use: Excel or CSV from the File menu and then click Open.

Note: CSV files can only be uploaded, not edited.

Click the Upload File button.

When you select the file type of Excel or CSV, it will ask you to select an existing file. Click Browse, locate your Excel or CSV file, select it, and click Open.

You’ll see a list of the columns you can modify.

To make any changes, select the cell you want to edit, type the new data, and click Save.

Map Your Columns to QuickBooks Fields

In QuickBooks Online, you can map any of the fields in your products and services list to the QuickBooks Online fields. This allows you to search, sort, filter, sort, and export your list column data in QuickBooks Online.

If you don’t want to map any of the fields in your products and services list to QuickBooks Online, you can skip this section.

Steps for Assigning a Field to an Online Column

{1}. From the Add Column ribbon group menu, click Configure Columns.
{2}. Click the Online Columns drop-down menu, and select the field you want to map to a QuickBooks Online field.

The following page describes the different options for assigning fields to QuickBooks Online columns.

Selecting Inserted Columns To map a column named Installed Product Name, do the following:

  • Select Inserted Columns from the Online Columns drop-down menu.
  • In the Field Name List for Online Columns, select your field.
  • Select Add To QuickBooks Online Column.
  • Add another field by repeating steps 2 and 3.
  • Repeat steps 1-5 for each column that you want to add to a QuickBooks Online column.

Selecting Standard Columns To map a column named Product Name, do the following:

Review your Data

Before you begin to enter data for a new product or service, you’ll probably want to review some of your other QuickBooks data. You’re the best one to know how you’ve been using QuickBooks, so this first step is to review your current data.

It’s nice to be able to enter data in the order of your preference. For example, you’ll want to start with the optional or required items at the top of the list and work your way down. This will make entering data easier and more efficient, as you’ll only have to enter related data for the most current transactions.

Although QuickBooks gives you the ability to go back through a list of transactions before you enter your new data, this assumes that you remember what you purchased from the list. The best way to ensure you’ve added the right data to your list is to go through the list and put a check mark in each column for the data that you’re entering. So if you’re adding a new service to your service list, double-check the service column for any prior services that you had added.

Wrap Up

Categories, Tags, and Attributes

Setting up Products and Services lists can be a real pain. Or, is that just me? I’ve never been quite sure. So, in my next post, I’m going to help you get all of your Product and Service lists set up the way you want them.

Until then, you should know that:

To create a Products / Services list, go to the QuickBooks Online Employee Center, click the icon and select the Lists tab. Click on the Add A Product and Add A Service links. You should see the following screen:

For each List, you’ll need to create a new Category (i.e., Subcategory). Each Category will only list the products that are listed in that Category. These are optional. So, you can create a list of all products in your company (Product List), or you can create a list of a particular category of products (Product Category List).

Within each list you can add a Tag to a product. Tags are optional. They are added to the extra info of a product on an individual basis, (e.g., to note the year a product was launched, or the shop from which it was purchased) and is used to distinguish products within the same category.