Q: What are invoice item types and how are they used?
A: The following is a list of the various Invoice Item Types and how they might be used in Total Office Manager. An Invoice Item is anything that can be added to the “Items Tab” found in an invoice, sale, estimate, bill, check, and many other forms.
The Most Common Invoice Item Types
Service: Typically used for labor fees or services that you charge for. It can also be used for labor fees or services that you pay for.
Inventory Part: Parts you purchase, track as inventory, and then resell. Tip: They are an asset when you buy them and become cost of goods sold when you sell them.
Serialized: These are used the same as an Inventory Part. The only difference is that you enter a serial number when you buy them and select a serial number when you sell them.
Non-Inventory Part: Materials or parts you buy but don’t keep on hand as inventory. These can be either part of your overhead (like office supplies or work vehicles), or they can be materials you buy to finish a specific job and charge back to your customer. Tip: When you buy these, they immediately become a cost of goods sold or an expense.
Other Charge: Miscellaneous charges that are not services, labor, materials, or parts. Examples include permits, delivery charges, setup fees, and service charges.
Other Invoice Item Types
Subtotal: An item that calculates a subtotal, usually on an invoice. You must use a subtotal item before calculating a discount or a charge that covers several items. These can be used to organize your estimates and invoices. They can also be used to show various options.
Group: Use for fast entry of a group of individual items already on the Invoice Items List.
Discount: A discount amount to be subtracted from the total; either a specific amount (like $25) or a percentage (like 15% off).
Payment: A payment you received at the time you write an invoice. A payment item reduces the amount owed on an invoice.
