Several Item settings exist and should be considered when setting up an Item. To edit existing Item settings:
• Go to Admin >> Items
• Find the item which you wish to mark as non-taxed and click the Edit button (far right).
NOTE: if you have many items, you can filter the list by entering in some keyword in the Search dialog upper-right. This should shrink the list, making the item you need to edit easier to find.
Reimbursable items create and sync a bill in QuickBooks when they are added to a purchase order or job expense.
Items may be configured as 'is reimbursable' within the item configuration for items. Be sure to click the Update Item button if/when you make changes to the value.
Items which are NOT marked as 'non-inventoried' will appear on the inventory page and will have all the functionality of inventoried items, i.e., their quantity can be manually increased or depleted; purchase orders containing the item will affect inventory levels and cost basis; and inventory checks will be made for jobs which include the item to ensure adequate inventory levels are on-hand. Notifications are made to the user if a job is proposed for which there are inadequate levels of inventory to complete the job.
Conversely, items which ARE marked as 'non-inventoried' exhibit all the opposite characteristics as outlined above. Items are, by default, unchecked, i.e., they are defaulted to show as inventoried, and thus a conscious decision must be made the the administrator to mark an item as non-inventoried.
This designator is only applicable for expense items. When checked, the cost of that item will be transferred to the client and it will appear on the invoice when added as a job expense.
Check the box if you wish the item to be taxed. Uncheck the box if you do not wish the item to be taxed. (By default, the box is unchecked - so be sure and check it when creating the item if you wish it to be taxed.)
• Once you've checked the box, be sure to click the blue Update Item button (lower-left) to preserve your changes.Now whenever you use this item, it will be taxed or exempted based on the configuration you've made in the item.
NOTE: this will not be a solution if you sometimes need the item to be taxed while remaining exempt at other times. This solution will only work effectively if the item is to be taxed (or not) every time it is used. Also, this does not allow you to tax different items at different rates: it is either at the tax rate applied to the job - or no tax at all.
On an item's edit/creation page, there is now a checkbox called 'is subcontracted'. If/when that box is checked, this item's subsequent line items will default to have a subcontracted designation, i.e., the associated costs for this item will only affect the job's estimated margins (it assumes actual margins will be replaced by a job-related expense).
You can also update a line item's default for being subcontracted in the job entry estimate section. Open the line item's Additional Info section (the italicized 'i' inside a circle, just right of the line item's description) and toggling the checkbox there.