Add an Inventory Item in Xero
How to create product and service items in Xero so they can be quickly selected when raising invoices, bills, and purchase orders.
Adding your products and services to Xero means you can select them in a single click when creating invoices, bills, and purchase orders — saving time and reducing data entry errors.
1. Open Products and Services
Click Business and select Products and services.
2. Create a New Item
Click New item to add a product or service.
3. Enter the Item Details
- Name — a short, descriptive name for the item (this appears in the dropdown when raising transactions).
4. Configure Purchase Details
If you buy this item from a supplier:
- Description — how it appears on purchase orders and bills.
- Account code — the expense account to assign it to (from your chart of accounts).
- Tax rate — the default tax rate for purchases.
5. Configure Sales Details
If you sell this item to customers:
- Description — how it appears on invoices and quotes.
- Account code — the revenue account to assign it to.
- Tax rate — the default tax rate for sales.
- Unit price — the default selling price.
6. Enable Inventory Tracking (Optional)
If you want Xero to track stock quantities for this item, select I track this item. Xero will maintain a running inventory balance.
7. Save the Item
Click Save. The item is now available in the Items dropdown whenever you create an invoice, bill, or purchase order — pre-filling all details automatically.
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