The Product Type module serves as master data to categorize all items managed in the system, whether they are physical goods or services. Its primary purpose is to standardize product classification and, most crucially, to link each sales category directly to a specific revenue account in the general ledger. This ensures accurate and detailed financial reporting.
1. Main View (Product Type List)
The main page displays all product categories that have been created. Currently, the page is empty, which indicates that no product types have been defined yet.
View Explanation
List Table: Will display the Product Code and Product Name once data is created.
Action Buttons:
Add New: Opens the form to create a new product type.
2. Add Product Type Page
This form is the main configuration area where each new product type is defined and linked to a financial account.
View Explanation
Product Name*: The name of the product category (e.g., "Merchandise," "Raw Materials," "Repair Services").
Currency*: Defines the standard currency to be used for transactions involving this product type.
Revenue Account for Sales of Goods/Services: This is the most important field. The user selects a revenue account from the Chart of Accounts (COA) that will automatically record all revenue generated from the sale of products in this category.
3. Steps to Add a New Product Type
Coordinate with the Accounting department to determine the appropriate Revenue Account for each product category that will be created.
From the main page, click the Add New button.
Enter a clear and descriptive Product Name.
Select the appropriate Currency from the dropdown.
Select the pre-approved Revenue Account from the available dropdown.
Click Save.
4. Integrated Workflow & Business Process
Automatic Accounting Integration: This is the core function of this module. When the sales team creates an invoice for a product of a certain type, the system will automatically journal the revenue to the account specified here. This eliminates manual entry and reduces the risk of revenue allocation errors.
Profitability Analysis: By separating revenue based on product type (e.g., revenue from "Goods Sales" vs. "Service Revenue"), management can easily analyze the profit and loss statement per business line to make strategic decisions.
Item Master Standardization: When creating a new item in the inventory module (item master), the user will be required to select a Product Type. This ensures every item is classified correctly from the beginning.
5. Tips & Important Notes
The determination of the Revenue Account is a very crucial step and must be validated by the Finance or Accounting team to ensure the integrity of financial statements.
Create Product Type categories that are specific enough for business analysis but not so numerous that they confuse users.
Due to its direct impact on the finance module, access to create or change data in this module should be restricted to senior users or system administrators.
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