Are sales and sales of product used for different things? If so, what is the difference between the two?

If I buy products to sell and then sell them, should the payments I receive for the sale of those items be categorized under "sales" or "sales of product"? 


Hi, streetgalleryart.

Allow me to share some insights about sales and sales of a product.

The Sales Income account should be an income/revenue account that will record the sales of products. Often this is an account titled "Sales" or "Sales of Product Income". However, this is a general use case, and the answer may need to be tailored to your specific company profile.

The Category is a means of classifying products and services you sell to customers which make accounting for inventory easier. Categorizing what you sell can help you better understand sales volume and who’s buying what.

For further clarity, you may wish to reach out to your accountant or QuickBooks Online Support.

You can check out this article for more info:

Please let me know if I can be of additional assistance. I hope you have a wonderful week ahead.

Was this answer helpful? Yes No
IntuitRoseMarjorie , Community Support Specialist
Employee SuperUser
1 additional answer

No answers have been posted

More Actions

People come to QuickBooks Learn & Support for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Qb community
Looking for advice from other business owners?

Visit our QuickBooks Community site.