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How to Import Your Flat Rate Books into QuickBooks®

This help topic explains how to import flat rate pricing information (flat rate books) into QuickBooks.

We are proving these general instructions as a courtesy. We generally do not provide help or provide guidance with importing the data our software exports. We will make sure that our export works properly. You will need to make sure it important properly.

This information will apply to many other software programs that include inventory management.

Service Item Types

It helps to know that you are importing “Service Items”. QuickBooks has several Invoice Item types such as Inventory Part, Group Item, Non-Inventory Part, Service Item, and more. The flat rate tasks you import will be Service Items.

You have the option of importing your tasks as other QuickBooks item types. To do this, you need to change the Invoice Item Type value in Flat Rate Simple. Go to Setup > Accounting Preferences > Invoice Item Type. Enter a different Item Type. We generally do not recommend this. Please do this only if you are sure of what you are doing.

Please see “Understanding Service Item Types in QuickBooks” later in this article, for more information.

Import the File into QuickBooks® Desktop Edition

Please check the QuickBooks documentation for this.

Import the File into QuickBooks® Online Edition

Please check the QuickBooks documentation for this.

Understanding Service Item Types in QuickBooks

In QuickBooks, Service Items are a specific category of items used to represent non-physical services provided to customers. Unlike inventory items, Service Items have unique characteristics that set them apart in how they are handled within the accounting system:

Non-Inventory Nature: Service Items do not correlate with physical goods. Therefore, they have no impact on inventory counts. This distinction is crucial.

No Effect on the Balance Sheet: Since Service Items are not tangible assets, they do not affect the asset accounts on the balance sheet. This is different from inventory items, which do impact the balance sheet through inventory valuation accounts.

No Cost of Goods Sold (COGS): Service Items are typically not purchased but are provided through the execution of a service. As a result, they do not have an associated Cost of Goods Sold (COGS). COGS is relevant for items that are bought and then resold; however, in the case of Service Items, the primary costs involved are often operational or labor-related, which are accounted for differently.

Recognizing Cost of Goods Sold (COGS): While the flat rate service item (task) added to an invoice creates income, it does not affect COGS. To recognize COGS and track inventory counts, you must add the parts used to the QuickBooks invoice. This requires managing inventory in QuickBooks using Inventory Parts, involving careful tracking of these items’ purchase and sale. Without tracking inventory, COGS cannot be properly recognized on an invoice, a limitation present regardless of using Flat Rate Simple® or not.

How to Recognize COGS

  1. When adding ‘Inventory Parts’ to the invoice, set the retail price of each item to zero ($0.00). This ensures the flat rate task price remains unchanged.
  2. QuickBooks offers a Print Setting to hide line items with a zero amount, preventing customers from seeing the used items.
  3. Upon saving the invoice, the item’s value (cost) increases your COGS in QuickBooks.

Understanding the distinctions between Service Items, Inventory Parts, and Non-Inventory Parts in QuickBooks is crucial for accurate financial reporting and management. This is a simplified overview of a complex topic.