Products are what you sell or buy on invoices and bills. A new workspace already has starter categories, units, and tax types — review those, then add products. Item type and accounts matter as much as the name and price: that is what auto-post uses.
Do catalog lists before the first product. Every product needs a category and a unit. Tax types are the rate list, not the Output VAT account. Open Products last.
Where to click
| Screen | What you set |
|---|---|
| Settings → Products → Categories | Product groups (General, Goods / Merchandise). Not the same as Accounting → Account Categories |
| Settings → Products → Units | Units of measure (Pieces, Box, Kilogram) |
| Settings → Products → Tax Types | Rates such as VAT 12% and Zero-rated VAT. Same list as Sales → Tax and Purchases → Tax |
| Settings → Organization → Tax | VAT or Non-VAT, default tax type, tax inclusive — the starting tax for new products |
| Products | Each item: SKU, name, item type, prices, then Configure for account overrides |
Sales Journal, Purchase Journal, and Track Inventory in Accounting are in Sales and purchase posting accounts. Set those before you rely on auto-post.
Open Settings → Products. These lists are already seeded. Add more only if you need them. Inactive rows drop out of the product form dropdowns.
Starter catalog
| List | Seeded values | On a product |
|---|---|---|
| Categories | General, Goods / Merchandise, Office & Supplies | Required. For grouping products — not Asset / Liability / Income |
| Units | Pieces (default), Box, Pack, Kilogram, Liter | Required. Pieces is the usual default |
| Tax Types | VAT 12% (VAT12, default) and Zero-rated VAT (VAT0) | The rate copied onto a line — not the Output VAT or Input VAT account |
Item Type is on the product (General → advanced). Default is Inventory Item. This is the setting that changes which income and purchase accounts auto-post uses. Pick it when you create the product — it is harder to unwind after you have sold or bought it.
Inventory vs service vs non-inventory
| Inventory item | Service | Non-inventory item | |
|---|---|---|---|
| Use for | Goods you buy, store, and resell | Consulting, labor, professional work | Digital goods, subscriptions, office supplies, items not for resale stock |
| Sale (accrual + auto-post) | Sales Income. If Track Inventory is on: also COGS and Inventory Value | Service Income. No COGS | Sales Income. No COGS |
| Bill (accrual + auto-post) | Inventory Purchases (asset) | Expense / Service Purchases | Expense / Service Purchases |
| Stock | Meant to be tracked. Quantity and reorder live on the Inventory tab | No stock tracking for posting | No stock tracking for posting |
COGS still needs Track Inventory in Accounting on Settings → Sales → Sales Journal. Item type inventory without that switch does not post COGS.
The form has General, Pricing, and Inventory. Save the product first. Configure on the row is a second panel — that is where you override posting accounts.
How to open it
| Step | Click |
|---|---|
| 1 | Products |
| 2 | Add Product |
Fields on the product
| Tab | Field | Required |
|---|---|---|
| General | SKU and name | Yes |
| General | Unit and product category | Yes |
| General | Item type, tax config, status (active / inactive / draft), image, description | Item type yes (defaults to inventory). Status defaults to active |
| Pricing | Cost price and selling price | No. Selling price is the usual default on an invoice line. Cost is used for COGS on inventory items |
| Inventory | Stock quantity and reorder level | No. Informational on the product. Posting still follows item type and Track Inventory |
Use Organization Tax Config is on by default. Leave it on so the product follows Settings → Organization → Tax (default tax type and VAT vs Non-VAT).
Turn it off only when this product is different. Then you can set a tax type (for example Zero-rated VAT) or VAT Exempt. On a Non-VAT organization the switch is locked on — VAT types on the product do not apply.
Product tax vs product VAT account
| Switch | Where | What it changes |
|---|---|---|
| Use Organization Tax Config | Product → General (advanced) | The rate copied onto a new invoice or bill line |
| Use Organization Sales / Purchase Accounts | Product row → Configure | Which Output VAT or Input VAT account that tax amount posts to |
Inclusive vs exclusive is not a product field. It starts on the org Tax tab and can be changed as Tax price basis on the invoice or bill. Line Override line tax still beats the product for that document. The full stack is in Sales and purchase posting accounts.
On the Products table, open the row menu and choose Configure. Defaults are on: use the organization Sales Journal and Purchase Journal. Turn a switch off only for this product.
Product account overrides
| Tab | When the org default is off | Used when |
|---|---|---|
| Sales | Sales Income or Service Income (by item type), COGS (inventory), Output VAT | You finalize an invoice (accrual + auto-post) |
| Purchases | Purchase / Expense account, Input VAT | You finalize a bill (accrual + auto-post). Inventory items should still point at an inventory (asset) account; services and non-inventory at an expense account |
Most products should stay on organization accounts. Override when one item must post to a different income, expense, or VAT account than the rest of the catalog.
Other guides in Accounting and catalog