Using product accounting categories#
How you decide to structure your accounting categories is very dependent on what your products are, and how you want to group and manage them.
In a clothes company you may have some accounting categories for:
Clothes Shirts Children Adults Shoes Children Adults
If you were using this structure then you could define different rates of VAT, or GST, for children’s and adults’ items. It would also allow you to define different revenue Accounts for the revenue generated from the sales of clothes and the revenue generated by selling shoes.