In order to set up a service in your database, you will need to navigate to the Settings menu, over to the Items column, and then down to the Service page. There, you should be able to double click on a service that you would like to edit. Once the service pop up comes up, you will be able to navigate down to the Pricing Method drop down to select your preferred pricing method (see this article if you need help choosing a method).
If you select Time & Material by Resources, it means that you want the price to calculate based off of the price of the inventory, equipment and employees attached to the service. The formula used to dictate the price for the service is calculated using the following equation: (Act Hours * Employ. Charge) + (Equipment Hours * Equipment Charge) + (Inventory Consumption * Inventory Charge).