In Katana, a service is a type of item representing non-physical goods or tasks that are sold to customers but do not involve inventory tracking or warehouse operations. Examples include installation, maintenance, design, or warranty services.
Overview of services
In Katana, services are:
Non-physical: They don't require stock management
Always available: No tracked inventory levels
Sales-only: Used exclusively on sales orders (SOs)
Warehouse-independent: Not involved in picking, packing, or shipping workflows
This allows businesses to sell services alongside physical products seamlessly, without the need for separate processes or manual adjustments.
Key characteristics
No stock tracking: always available and doesn't deplete inventory
Exclusion from warehouse operations: don't appear in packing lists, barcode labels, or warehouse pick & pack workflows
Cost handling: costs are used for profit and margin calculations within Katana, but are not sent to accounting
SOs: can be added directly to SOs, just like products
Creating and managing services
To create a service in Katana:
Navigate to the Items screen.
Select the Services table.
Click on + Service to create a service (or open an existing one).
Fill in the service's details:
Name: Descriptive title of the service.
Category: Optional grouping for organizational purposes.
Service code: Optional identifier for the service.
Default cost: Internal cost of providing the service.
Default sales price: Price at which the service is sold to customers.
Services can also be created directly from:
The global + Create button
Within an SO (by writing out a service on a line item and then selecting Service in the pop-up).
Archiving, duplicating, and deleting services
To archive, duplicate, or delete a service — open the service card and select the 3-dot option in the top right:
Archiving: Keep a service out of your active section for better organization.
Duplicating: Create a copy of a service.
Deleting: Remove a service that is no longer needed. Deleting a service will affect any existing orders that include it.
Use the bulk edit feature in the Services table to perform bulk actions, such as updating categories or sales prices for multiple services.
Integration with QuickBooks Online
When using Katana with QuickBooks Online:
Revenue accounts: Assign services to specific revenue accounts by categorizing them appropriately in Katana
Inventory accounting: No journal entries are created for services upon SO delivery, as they don't affect inventory levels
Ensure that each service category in Katana is linked to the correct revenue account in QuickBooks Online for accurate financial reporting.
Note: If you're using the QuickBooks Online integration with inventory accounting, a journal entry to reduce the inventory account value is not created for service items once the SO is delivered.
Best practices
Use categories: Organize services into categories for better tracking and reporting
Consistent naming: Maintain a clear naming convention for services to avoid confusion
Regular review: Periodically review and update service details to ensure accuracy
Your feedback is invaluable. Let us know your thoughts on this article or anything in Katana you'd like to see improved: [email protected]