Why use Groups in QuickBooks?

Group Items in Inventory

When you are invoicing customers, and you feel like you are invoicing the same inventory items over and over, groups can be a great time saver!!

You have the option to have the group show up in detail, or not.  For example, let’s say you are selling a computer with software, you could go ahead and bundle the group together and name it “Basic Computer Bundle” as one price, you can have it detail each item which will list each price.

Group items are a convenient way to for quickly entering a group of individual items that you often purchase or sell together.

  1. Group items contain a list, of component parts. It is not called a bill of materials, but it is very similar.
  2. The component list can contain the following item types – inventory assembly items, inventory parts, non-inventory parts, service, other charge items, subtotal, discount and sales tax items.
  3. You can only have 20 component items in a group item.
  4. Group items are available in Pro, Premier and Enterprise.
  5. When you sell a group item, the sale decreases your quantity on hand of the component items at that time. The group item doesn’t have a quantity of its own, so there is no effect on the group item itself.
  6. When you add a group item to an invoice (etc.) QuickBooks will list each of the component items on the screen. You have an option to show all of the components of the printed version of the form, or just show the group item itself.
  7. You can change the composition of the group item at the time you sell it. Once you add it to the invoice, you can add or delete component lines, change quantities, and so forth. This does not affect the list of components as they are shown in the edit item window.
  8. There is no special transaction for a group item – you don’t “build” it. There isn’t a quantity on hand for the group item itself.

To recap: A group item is not a real inventory part. You don’t have a balance on hand, and you will never see the group item in your sales reports. Instead, you will see the component items showing up you don’t see it in sales reports. Its purpose is to move some different parts through the sales process. If you need support setting up groups, contact us.