Product categories organize your catalog and let you set accounting and inventory rules once for all products in the category.
Path: Inventory ← Configuration ← Product Categories ← New
- Open Product Categories and click New.
- Enter the Category Name.
- Set a Parent Category to build a hierarchy if needed.
- Choose the Costing Method (Standard, FIFO, Average).
- Set Inventory Valuation (manual/periodic or automated/perpetual).
- Under Account Properties, set the category-level Income and Expense accounts.
- For automated valuation, set the stock input/output and valuation accounts.
- Save, then assign the category on each product via the Product Category field.