How does QuickBooks categorize items?

0
90

Categorizing items always proves to be handy. Especially when you are buried under identical things, it makes them easier to find and helps you to get better knowledge. The same concept applies to sales also. 

If you are struggling with your massive number of products of the same type, you need to categorize them in proper order. This will help you to get beneficial insights into your inventories and sales. Classify your services and items into categories to keep things properly organized.

How to create a category?

Now you can use group items of identical types into categories. In case if you want to be more particular about your grouping items, you are also provided with the options to create sub-categories. In short, your items will remain thoroughly categorized. To create a category, follow the given below steps:

Step 1- Click on the “Sales” icon. Then select “Products and services” from there.

Step 2- Now, click on the dropdown named “More.” From there, you will find “Manage categories.” Tap on it.

Step 3- Then, select “New Category” and input the category name according to your products or services.

If you want to form a sub-category for your items, select the “Is a sub-category” checkbox and the main category.

Step 4- Finally, click on “Save” to complete the task.

Categorize the products and services you are selling:

After creating a category, you will need to categorize your selling items or services into several segments.

You are given a wide range of options to categorize your items or services. You can select a category from the available options in QuickBooks Services while adding a new service, inventory product, or even non-inventory products.

How to add an existing item or service to a category?

If you are feeling haphazard with your uncategorized item and do not know what to do with them, below are the ways to add those to a category.

Step 1- In QuickBooks, locate the “Sales” menu, and then click on “Products and services.”

Step 2- Locate or find the uncategorized product or services that you want to categorize.

Step 3- Find the “Action” column, choose the “edit” option.

Step 4- Click on the “Category” dropdown icon, and choose the category that fits your product or service. You can also click on “+ Add new” if you want to create a new one for your items.

Step 5- Finally, click on “Save and close.”

These categories also come in handy in transactions. While creating transactions, this saves enough time for you to look into other vital matters. If you are purchasing and selling many different items, you may make use of categories to locate products or services easily. 

QuickBooks also allows you to show your categories on forms like sales receipts and invoices. Moreover, with the availability of several customization features, you can also customize the forms that you send to your potential customers.

Categories also help you with reporting:

If you are running inventory reports or run sales, you must have your products or services grouped properly or chronologically. Without properly organized items, things will not make sense to you. Not only locating the items become easy, but you get a clear concept about your categorized items.

Tool Hub allows the users to collapse or expand each category. This particular optionality helps you get an idea of what is in the report and makes it easier for you to get a piece of knowledge. Within no time, you will be able to find details of any particular or specific items.

This particular method of categorizing or grouping showcases a clear picture of your sales in front of you. It becomes easier to identify that which services or product type are more popular than the other. The best part is that if you do the sum of each category, you will come to know from where the bulk of sales are coming from.

How to remove or edit a category?

Often, you will encounter some categories or products that you are no longer in need of. Those items may require to be removed or may require editing. Just as you can categorize your items, QuickBooks allows you to edit or remove them whenever you feel like.

Step 1- Click on the “Sales” menu in QuickBooks. From there, choose “Products and Services.”

Step 2- You will see a dropdown over there named “More.” There, locate “Manage categories” and tap on it.

Step 3: From the “Action” column, click on “Edit.”

Step 4: Make all the necessary changes based on your choices, and click on “Save.” Or, to remove a category, click on “Remove,” and then tap on “Ok.”

Conclusion:

Keeping things organized is helpful. Not only because they help you to find them quicker and gives you better insights, but they also help you to stay ahead of your competitors. Categorizing things also contribute to the quick-expansion of your business or organization.

LEAVE A REPLY

Please enter your comment!
Please enter your name here