Getting Started with Product Categories and the General Ledger Rules

Stocked Products

Product categories control the flow of data to the Relevant General Ledger Accounts.
Product Category can be of a Tree Structure that is Parent/Child.
If the Child category field for anyone of the General ledger account is Blank, the system will use the General Ledger account from the Parent Category.
If any one of the child category general ledger accounts has a different General Ledger account assigned to it, the system will use the Child General ledger account before the Parent.
All Children Product Categories will have the linked Product that has that category against it.

Non Stock Products

Same rule applies to Non  Stock Product Categories.

Also products in non-stock categories always have a stock on hand of zero. That makes non-stock categories suitable for services and other cases where you provide product lines that do not stand for a physical stock movement.

Also non-stock categories allow you a number of ways of determining the cost of the line, such as a percentage of the transaction line value, entering the cost on each line etc.

Stock Takes

When a stock take is generated the system will use the General Ledger Account that is set as the Default on the reason code for 'Available Stock Quanitty Adjustment Types' from the Parent Category.