Products and services
Products and services are the building blocks of the sales process and its documents, as well as the procure-to-pay process, which we will discuss in the next chapter. Think of them as the products and services that you sell and possibly buy. Each of the items will contain an item ID, a description, and selling price. If you purchase this item, it will also have the purchase cost. You use the Products and services option to standardize your invoicing and establish how the items you sell are coded in Xero. For example, if you are a landscaping company, you may set up your services as follows:
- Mowing – residential
- Mowing – commercial
- Cleanup – residential
- Cleanup – commercial
By setting up your services, you will have a uniform view of your invoice as well as a specific account code to assign to each service, keeping your accounting consistent.
Figure 7.1: The Products and services...
