Item  Description Use 
Inventory Item
Inventory you buy, track as inventory, and then sell Track value, quantities, and Qty on P.O. of inventory
Non-Inventory Item Materials or items you sell but don't buy/ materials or items you buy but don't sell/ materials or items you don't track quantities Don't track the quantity of inventory
Service Item Service Items normally include charges for labor or fees that your company buys or sells Buy or sell services
Charge Item

Charge Item is for miscellaneous charges

Use Charge Item to show delivery charges, restocking fees, or freight charges on an invoice or purchase order

Discount Item

Discount Item calculates a percentage or an amount to be deducted from the subtotal or line item

Use Discount Item to receive or give discounts off the sales price on sales order, invoice or purchase order

Description Only Item

Description Only Item is a note that has no value

Use Description Only Item to write a note that will appear on sales order, invoice, or purchase order 

Category Item

Category Item is to differentiate and/or organize items of similar or same nature

Use Category Item to organize items making it easier to navigate through your Item List