The three kinds
| Kind | Stock | Valued | Where it is managed |
|---|---|---|---|
| Stocked item (inventory) | Yes: quantity in each warehouse | First in, first out (How stock is valued and what a sale costs) | Product settings |
| Service (repair, labour, delivery charge) | None: no stock report or closing stock counts it | Not valued | Product settings |
| Fixed asset (a machine, a vehicle, furniture) | Each unit is recorded for the asset register | Not valued as stock | Fixed assets (Set up fixed assets and read the register) |
You choose the kind in Product type on the product. The list of types comes from the company's set-up.
What a service does differently
A service can be sold and bought like any product, but:
- it has no warehouse stock: the stock reports leave it out, and a sale of a service never says "stock is short";
- its Stock rate shows 0, because there is nothing to value;
- the stock levels (Minimum stock, Maximum stock, Reorder level) and the manufacturer, brand, bar-code and warranty fields are switched off on its form.
Use a service for anything you charge for but do not hold: delivery, installation, a repair job (Service jobs).
Inventory type: purchase, sales or both
The Inventory type on a product decides which documents offer it:
| Inventory type | Offered on |
|---|---|
| Purchase | Purchase documents |
| Sales | Sales documents |
| Both | Both |
Transfers, adjustments and openings offer every product whatever its inventory type. A product with no inventory type is offered everywhere.
Changing the kind
Do not change a product from a stocked item to a service once it has stock: its entries stay but the reports would stop showing them. Make a new product instead.
Common questions
The product list shows a Stock on hand figure for a service.
That column is a running total that documents move, a service line included. A service has no stock: the stock reports and the closing stock leave it out, whatever the column says. Read stock from the reports (How stock works).
A service is not offered on a purchase invoice.
Check its Inventory type: a product marked Sales is not offered on purchase documents. Choose Both if you also buy it.