In this article, you’ll learn how to use the Service item type to track and price professional work—like design or project management—separately from materials and labor in your Scope of Work.
All other item types — Material, Shipping, Delivery, and Labor — still work the same way.
1. Set default rates for Services
Default rates for Services are set to 0% on all projects. If 0% is correct for your setup, you don’t need to make any changes.
Otherwise, update your default rates:
Click the gear icon in your Scope of Work.
Select Edit default rates.
In the Service row, fill in the Vendor tax, Markup, and Client tax fields.
Click Save.
💡 Tip: If you’re not sure what rates to use, ask your accountant. They can tell you what fits your business type and tax setup.
2. Update QuickBooks account mapping (if connected)
If your account is connected to QuickBooks, make sure your Service items are mapped to the right income and expense accounts.
Go to the left-hand navigation menu and click QuickBooks.
Select Manage settings.
Fill out the Services income and expense accounts.
Click Update accounts.
3. Classify professional work as Services
In active projects, check whether any items currently labeled as Material or Labor are actually professional services — for example:
Design services
Project management
Field supervision
If they are, update the Item Type to Service. Then confirm that your Unit cost, Vendor tax, Markup, and Client tax values are still correct.
Why this matters
Using the Service item type keeps your Scope of Work organized and ensures your project costs and QuickBooks mapping stay accurate.
Need help? Email us anytime at support@materio.co.