Product categories

Product categories organize your catalog and let you set accounting and inventory rules once for all products in the category.

Path: Inventory ← Configuration ← Product Categories ← New

1. Open Product Categories and click New.
2. Enter the Category Name.
3. Set a Parent Category to build a hierarchy if needed.
4. Choose the Costing Method (Standard, FIFO, Average).
5. Set Inventory Valuation (manual/periodic or automated/perpetual).
6. Under Account Properties, set the category-level Income and Expense accounts.
7. For automated valuation, set the stock input/output and valuation accounts.
8. Save, then assign the category on each product via the Product Category field.