In this lesson, you will learn how to add products and services. Before going on to enter any transactions in the system, it is prudent to create your product and services. You can start with the product and services that you sell in your business.

In order to do that, click on product and services at the left sidebar of the menu. You can then go ahead and click on the +new button which is at the lower right corner. Then fill in the details of the products or services. The details here include the name of the product or service. You can add an item ID if you do have a unique one already.

If not leave this portion empty and the system will also assign one to the product or service. If there are any specific descriptions you want to give to the product, you can do that in this box. You will now move on to indicate whether the item you are creating is a product or a service. Products are tangible goods that can be seen and touched whereas services are intangible goods and therefore cannot be seen and touched.

Lastly, there are some additional options which you will have to apply to your product or service. First do you sell this product or service? You select this option if the product or service you are creating is what you offer for sale to your customers. Then once selected you have the option of selecting which sales account should be used to record sales of this product or service.

The second thing is to indicate whether you buy this product or service. You tick this box if the product or service you are creating is an item you buy from your suppliers or a service offered to you by a third parties.

Then you select which expense account should be used to record purchases of this product or service. If you buy a service or a product and at the same time you sell that service or product, then you will need to check both boxes. When creating a product, you have the option to also track inventory. If you want the system to track inventory. You simply need to check this box.

Tracking inventory means that the system will automatically create an inventory account for the product and can tell you the quantity on hand at any particular point in time. When all these have been selected you can simply save as you can see our premier service product has been successfully created.

When this is done you can always come back here to the action button and make any necessary changes then you can go ahead and update. Thank you.