Product Groups

If your Profit & Loss statement needs to show Electronics revenue separately from Services revenue — or your accountant wants cost-of-goods broken out by category — product groups make that happen automatically. Instead of all product sales posting to a single revenue account, you route each category to its own GL accounts. Your financials gain granularity without adding any manual work at transaction time.

How to create a product group

1. Go to Setup > Product Groups.
2. Click New.
3. Enter a Name that matches the category as it should appear in your Financial Reports (e.g., Electronics, Accessories, Services).
4. Select the GL accounts to use for this group:
   • Sales Account — credited whenever a product in this group is sold on an invoice
   • Cost of Goods Sold Account — debited when Products in this group are delivered and cost is recognised
   • Inventory Asset Account — where the Inventory value for this group is carried on the balance sheet
5. Save.

How to assign Products to a group

Open any product record and select the Product Group from the dropdown. From that point on, all transactions for that product post to the group's GL accounts automatically.

Tips

• Product groups are optional. If your revenue structure is simple and a single set of GL accounts covers everything, there's no need to add this complexity — keep it simple.
• Define your GL account structure with your accountant before creating product groups. Reassigning accounts after transactions have already posted requires careful historical reconciliation.
• Groups pay off most when your accountant produces a Profit & Loss statement that needs separate lines by product category — the segmentation flows through automatically without any extra Journal Entries.

Related: Products · Chart of Accounts