Product Categorization
Quick Summary
The Products & Services section helps you manage all the goods and services your business offers. You can save each item’s key details—like name, description, price, and tax—and reuse them in invoices to make billing faster and more consistent.
What Is This Feature
What It Is
The Products & Services section helps you manage all the goods and services your business offers. You can save each item’s key details—like name, description, price, and tax—and reuse them in invoices to make billing faster and more consistent.
When To Use This Feature
Who should use this?
All businesses—whether selling physical goods (a shop), digital products (a SaaS), or services (a consultant or salon).
When do you use it?
Set up before creating your first invoice or add products directly while creating an invoice.
Step-by-Step Flow
Optional Features
Product Categorization:
- This feature lets you group your products into categories (e.g., Electronics, Services, Raw Materials).
- It is not visible by default. To use it, go to Settings → Product Categorization Setting and enable it.Once enabled, you can create categories using the “Add Category” button and assign them to products. You can also enable “Group Line Items by Product Category” to automatically group items by category invoices and other documents.
Fields Explanation
Key Fields
| Field | What It Means |
|---|---|
| Sale Rate | Price at which the item is sold to clients. |
| Purchase Rate | Price at which the item is purchased from suppliers; used for profit calculation. |
| Tax Rate | Applicable GST or VAT percentage. Automatically applied invoices. |
| Opening Stock | Initial stock quantity when the product is added. |
| Minimum Alert Level | Stock threshold that triggers a low-stock warning for reordering. |
| HSN Code | A number that identifies a product. |
Optional Settings
Optional Features
Product Categorization:
- This feature lets you group your products into categories (e.g., Electronics, Services, Raw Materials).
- It is not visible by default. To use it, go to Settings → Product Categorization Setting and enable it.Once enabled, you can create categories using the “Add Category” button and assign them to products. You can also enable “Group Line Items by Product Category” to automatically group items by category invoices and other documents.
Alternate Terms
Alternate Terms
| App Term | Also Known As |
|---|---|
| Product | Item, Good, Article, SKU, Stock Item, Commodity |
| Service | Work, Task, Job, Offering, Service Item |
| Sale Rate | Selling Price, MRP, Unit Price, List Price |
| Purchase Rate | Cost Price, Buy Rate, Landed Cost |
| HSN Code | Tariff Code, Commodity Code, Product Classification Code |
| Product Catalogue | Item Master, Price List, Inventory List, Product Database |
| Measurement Unit | Unit of Measure (UOM), Unit |