In Katana, items are categorized into three distinct types: Products, Materials, and Services. Understanding the differences between these item types is crucial for accurate inventory management, production planning, and sales operations.
Products
Finished goods that are manufactured or purchased for sale to customers, and include key details like SKUs and pricing.
Key characteristics:
Inventory tracking: Stock levels are monitored.
Manufacturing: Can be produced in-house or outsourced.
Sales: Sold directly to customers.
Subassemblies: Can be used as components in other products.
Examples:
Tables
Chairs
Electronics
Materials
Raw inputs or components used in the manufacturing process to create products.
Key Characteristics:
Inventory tracking: Stock levels are monitored
Consumption: Used in production (typically not sold directly)
Purchase: Acquired from suppliers
Variants: Can have different versions (e.g., size, color)
Examples:
Wood
Fabric
Screws
Services
Non-physical items that represent tasks or activities sold to customers.
Key Characteristics:
No inventory tracking: Always available; no stock levels
Sales: Added directly to sales orders
Warehouse operations: Not involved in picking, packing, or shipping
Cost handling: Used for profit and margin calculations within Katana; not sent to accounting systems
Examples:
Installation
Maintenance
Design
Comparison table
Feature | Product | Material | Service |
Inventory tracked | ✅ | ✅ | ❌ |
Manufactured | ✅ | ❌ | ❌ |
Sold to customers | ✅ | ❌* | ✅ |
Used in production | ✅ | ✅ | ❌ |
Appears in warehouse workflows | ✅ | ✅ | ❌ |
*Materials can be sold if configured that way
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