Create a New Service Item
Overview
Service Items are used to track purchase and sales charges for noninventory items.
Create a Service Item
Open the App Launcher. Search for Items.
Click New to create a new item.
When creating a Service Item, select Service in the Item Type field. This signifies that the item will not hold inventory and therefore will not require the same detailed item setup that an inventory item requires.
When creating a service item, you can leave Finished Goods as the default option for Inventory Class. Since service items do not have inventory value, Inventory Class will not be used in the posting to determine an inventory account.
Most Service Items will be set up with an Accounting Posting Setup record. This will define which GL Accounts to post to when a Sale or Purchase Invoice for the Service Item is posted. If the Accounting Posting Setup is not defined for the service item, GoldFinch will use the GL Accounts defined in the generic Account Posting Setup.
To learn more about this function, please review the Account Posting Setup document.
For example, if you charge your customer shipping charges on their invoice, you will want to set up a Shipping service item. You will define an Account Posting Setup record for this item that will define which freight GL Account to use when a sales document is posted for the shipping item.
Click on New in the Account Posting Setup section on the Item page. Designate the GL Accounts accordingly.
It is best practice to start all service item numbers with 'Z-'. This will group all service items together when viewing a list of items and will also allow the items to be easily filtered on in list views or reports.
For a service item that you both purchase and sell, you should create two service items. For example, you purchase Freight and you also charge customers for freight. You should create Z-Freight In and Z-Freight Out. Use Z-Freight In on Purchase Invoices and Z-Freight Out for Sales Invoices. Define Standard Base Cost for Z-Freight Out. Using one freight item for both Purchase Invoices and Sales Invoices will distort profit margin calculations on sales inovices.
Work Center Service Item
Put a check in the Work Center field if the service item is a Work Center item. Only Work Center items can be used on Item Routing.
Outside Service Item
Put a check on both Work Center and Outside Services fields if the service item is an outside service item. You will need to process a Purchase Order for an outside service item on a Work Order.
