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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 a month ago

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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