You won’t find a reference in QuickBooks Help to “double-sided” or “two-sided” Items, but the terminology is common among QB experts and experienced QB users, especially in construction.
In brief, it means that an Item is designed for use in Cost of Goods Sold transactions as well as Income transactions; that is, the Item is involved in Job Costing.
All job-related costs should be assigned to a COGS account. Why?
- To create a feedback loop on your estimating;
- To determine your Gross Profit Margin; and
- Because the IRS says so.
Four Types of Items can be double-sided:
- Inventory Part Items are double-sided by default.
- Non-inventory Parts, if you check the box This Item is used in assemblies or is purchased for a specific customer:job.
- Service Items, if you check the box This service is used in assemblies or is performed by a subcontractor or partner.
- Other Charge Items, if you check the box This Item is used in assemblies or is a reimbursable charge.
Any Item you use for Job Costs should be two-sided. Check the checkbox to make it two-sided. Pay no attention to the words next to the check box, just check it. Don’t try to figure out what it means; pretend it means This is a two-sided Item because it is used in Job Costing, because that’s what it does mean.
For more information about Items and Job Costing in QuickBooks, read this post about QuickBooks Items and why you need them in your contracting business.