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Product vs Material vs Service
Product vs Material vs Service

Understand the key differences between products, materials, and services in Katana.

Dayvid Lorbiecke avatar
Written by Dayvid Lorbiecke
Updated over 2 weeks ago

In Katana, products are finished goods intended for sale, materials are raw inputs used in production (but can also be sold), and services are non-inventory goods that are always available, but don't participate in warehouse workflows.

Products include key details like SKUs and pricing, which are essential for tracking inventory and sales. Materials, on the other hand, are tracked for consumption in manufacturing processes. Services are usually categorized and can use service codes.

When adding inventory to Katana, it's common to question whether an item should be classified as a product or material. This short guide should help.

Materials

An item is classified as a material if it is a raw material used in production and usually not sold.

Products

An item is classified as a product if it's:

Services

An item is classified as a service if it is something you sell, but it isn't something that holds any physical inventory.

Items such as: Services, Customization Fees, Warranty Plans, Retainers.
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