New Item or Service

Items and Services are the central records in the ERP used to manage every physical product or labor-based service your business handles. These records act as the foundation for inventory tracking, tax calculations, and automated accounting entries across all purchase and sales modules. You can access the New Item | Service popup by navigating to Item and Service > Inventory tab > clicking the +New Item | Service button. Alternatively, you can click the New button at the top of the module and select Item | Service.
The New Item form is a comprehensive setup tool that ensures every product or service is correctly categorized for both inventory tracking and financial reporting. To save the record, ensure all mandatory fields (marked with an asterisk) are completed before clicking the Insert New Item button.
 
General Settings
This section establishes the item's identity and tax classification:
  • Item Code: A unique alphanumeric identifier used to track the item across the system.
  • Name: The primary title of the item as it will appear on invoices and reports.
  • Description/Alternate Name: Additional details or a secondary name used for internal reference.
  • Category: This feature groups similar items together for organized reporting and bulk filtering. Users can create new categories as needed within the Category tab of the Items and Services module.
  • HSN/SAC Code: Specifically for users in India, this regulatory classification code is a mandatory requirement for GST compliance. (See the detailed HSN section below for more details).
  • Item Tax Type: Defines the specific tax rate (e.g., GST 18%) automatically applied to this item.
  • Item Type: This setting defines the nature of the record, determining whether the system should track physical stock levels or simply record a financial transaction.
    • Purchased: These are finished goods or raw materials bought directly from external suppliers. The system maintains a strict inventory count for these items, increasing stock upon a Goods Received Note (GRN) and decreasing it when a Sales Invoice is issued.
    • Manufactured: These are items produced internally using a Bill of Materials (BOM). The system tracks the physical quantity of the final product and manages the "assembly" process, where raw material stock is consumed to increase the stock of the manufactured item.
    • Service: This type is used for non-physical offerings like labor, consulting, or professional fees. Since there is no physical product, the system does not track inventory quantities, and transactions are mapped directly to Income or Expense accounts.
    • Tools and Supports: These represent internal assets or consumables used to facilitate operations (such as machinery parts, safety gear, or maintenance kits). While they may be tracked for internal cost allocation, they are generally not intended for direct resale to customers.
  • Units of Measure: The standard unit used for counting or weighing the item. You can add more units by clicking + or by going to Items & Services > Settings > Units.
  • Exclude from Sales/Purchases: Checkboxes to hide the item from specific transaction menus.
 
HSN/SAC Management (Mandatory for Indian GST)
For businesses operating under the Indian taxation framework, providing a valid HSN (Harmonized System of Nomenclature) for goods or SAC (Services Accounting Code) for services is a legal requirement for GST-compliant invoicing.
  • Adding a New Code: If the required code is not in the list, click the + icon next to the dropdown to open the setup pop-up.
  • HSN/SAC Search: Use the search field to find and select the appropriate standardized code for your product or service.
  • Code Entry: Enter the specific numeric value (4, 6, or 8 digits) as defined by the GST Council. This value will be printed directly on your Tax Invoices.
  • Description: Provide a clear name for the code to help users identify it correctly during item setup.
  • Default Tax Slab: Assign the standard GST percentage (e.g., 5%, 12%, 18%, 28%) associated with this code to automate tax calculations.

GL Accounts
These settings automate your accounting by linking item transactions directly to specific ledger accounts:
  • Sales Account: The revenue account where income is recorded when this item is sold.
  • Inventory Account: The asset account that tracks the value of the stock currently held.
  • C.O.G.S. Account: The Cost of Goods Sold account used to recognize the expense at the time of sale.
  • Inventory Adjustments Account: The account used to record discrepancies or variances during stock takes.
 
Others
This section contains operational defaults and specific pricing data:
  • Item Status: Sets the item as "Active" for use or "Inactive" to retire it from the system.
  • Default Sales Type: Sets a default customer category, such as "Retail," to automate pricing.
  • Sales Price: The standard selling price in your base currency.
  • Location: The primary warehouse or store where this item is typically kept.
  • Standard Cost: The estimated purchase cost used for valuation and margin analysis.
  • Adjust Quantity: Used during setup to record a starting stock balance or make manual corrections.
 
Editing/Cloning Item and Service
Our system allows users to modify almost all fields if the item hasn't been used in transactions. Even for items used in transactions, users can still change the tax type, category, and other fields. However, fields like Item Code and Type cannot be changed once a transaction has been made for the item. The edit form also provides an option to clone items. Clicking "Clone this Item" in the form will pre-populate a new form with the item's data. Remember to change unique values, such as the item code and barcode, before submitting the form.
 
Action Button
  • Insert New Item: Finalizes the configuration and saves the record to the system database.
  • Clone this Item: The "Clone this Item" button is conveniently located within the edit form, providing a straightforward method for duplicating existing item entries.
 

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