A guide to choosing the right product type for your business in Qoyod: product, bundled product, raw material, service, and expense.
The five types
1. Product
A good sold and purchased in its original state. Example: a water bottle, a shirt.
- Storable in the warehouse.
- Has a purchase price and a sale price.
- Appears in inventory and sales reports.
2. Bundled product
A finished product made up of several products or raw materials. Example: a pizza made of dough, cheese, and sauce.
- When sold, its components are automatically deducted from inventory.
- Requires a manufacturing order before sale to calculate its cost.
- Useful for restaurants, cafes, and manufacturing workshops.
3. Raw material
A material used to manufacture other products and not sold separately. Example: wood for making tables.
- Purchased solely for use in production.
- Used as a component of bundled products.
4. Service
A service offered to the customer that does not require inventory. Example: consultations, design, maintenance.
- Not stored.
- Sold only, has a sale price and a revenue account.
- No purchase cost.
5. Expense
An operating cost or a fixed asset. Example: rent, electricity, office equipment.
- Not stored.
- Not sold, only purchased.
- Posted to an expense account or fixed assets account.
How to pick the right type
- Do you sell the product as-is? → Product.
- Do you assemble several components into a finished product? → Bundled product.
- Do you only use the material in manufacturing? → Raw material.
- Do you offer a service with no physical product? → Service.
- Do you purchase the item for internal use (expenses or assets)? → Expense.
