How to Add an Other Charge Item in QuickBooks

  • In a business an item is a source of income for you. Whenever you sell an item, it increases your income automatically and the income is accounted in the income account that is associated with that item. In QuickBooks an item needs to be created for each product you sell or services you provide.
  • You must create and use items for things like partial payment, other charges, discount, sales tax, etc. QuickBooks generated sales forms can be shared with customers, if they need to know what exactly they are paying for.
  • QuickBooks makes it easy for you as on the sales forms you have items to show and behind the scene the accounts get affected. So anything that goes on a sales form (invoice/sales receipt) in the column area needs to be setup as an item and it needs to be associated with an appropriate account type.
  • While setting up an item in QuickBooks, other than its name you should also focus on its Type. In this article we will learn about a new item type Other Charge and how to set it up in QuickBooks.
  • We use this item type for miscellaneous labor, material, or part charges, such as delivery charges, setup fees, and service charges.
  • For example you sell Laptop and also if the customer insists, you can get it delivered at their address. Here in this example, selling Laptop comes under regular business activities and also it is your main source of income.
  • On the other hand, getting goods delivered at customer’s address is another type of business activity and it is going to gain extra income for us. Apart from charging for the laptops you are selling, you will also charge for the delivery.
  • To apply delivery charges on the sales form, you should have an item created for it with an item type as Other Charge.
  • To create a new Other Charge type item go to Lists > Item List. In the Item List, click on the item button at the bottom left hand corner and select New from the drop down list to open a new item setup window.
  • Note:- You can also use keyboard shortcuts (Ctrl+N) to get to the new item setup window.
  • Mentioned below is the screenshot for a new Other Charge type item.

 

Charge type item

 

  • Once new item setup window is open, the very first option is to select the Type of the item you want to setup. Choose Other Charge as type to setup an Other Charge item. The next field is for the name of the item you are setting up and it is labelled as Item Name/Number.
  • In the Item Name/Number field enter the item number if you identify your items with numbers and not with their name. I will choose Delivery charges as my item name.
  • Note:– You can only use up to 31 characters in this field.
  • The next option is to apply a check mark for the field Subitem of and select the name of the main item from the drop down list. This option is only used when the item you are creating is a subitem of any other item in the item list.
  • Enter the description of the item. Enter the amount or percentage you would like to charge your customer for Laptop delivery. This field is labelled as Amount or %.
  • If you are not sure how much it is going to be, while setting up the item for delivery charges, leave it as 00.00, so that you can enter it while using the item on the sales form itself.
  • Select the Tax Code. as Tax for Taxable Sales and Non for Non-Taxable Sales.
  • An item is a source of income for the business and must be associated with an income account. The last option is to select the income account, which gets affected whenever the item is used on the sales forms.
  • To account the amount of delivery charges, I have created an Other Income type account, and named it as Delivery charges income.
  • Mentioned below is the screenshot for my new Other Charge item setup.

 

Delivery charges income

 

I need to click on OK button to save the changes and my new item is ready to be used.

 


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