Skip to main content

:::info Nota di traduzione Questo documento è attualmente in inglese. La traduzione in italiano sarà presto disponibile. :::

🗂️ Product Categories

Product Categories organize your products and provide shared defaults for tax rates, HSN/SAC codes, and units — so you don't have to set them individually on every product.

What Product Categories Do​

CapabilityDetails
Organize productsGroup related items under a named category (e.g., "IT Consulting Services")
Set a default tax rateAll products in the category inherit this rate when Use Group Tax Rate is enabled
Set an HSN/SAC codeShared code for the category — products inherit it by default
Flag as Goods or ServicesThe isService flag determines whether the category uses HSN (goods) or SAC (services) codes
Set a default unitProducts in the category default to this unit of measure
Enable bulk importProducts can be bulk-imported directly into a category via Excel
Improve reportingFilter and report on invoices by product category

📋 Product Categories List​

The Product Categories section appears below the product table on the Products page. Use the Search product categories... bar to filter, and click + Add New Product Category to create one.

Product Categories List

Table Columns​

ColumnDescription
IDAuto-assigned category sequence number
Category NameDisplay name of the category
Tax %Default tax rate applied to products in this category
HSN CodeShared HSN/SAC code for the category
ActionsView, Edit, Delete icons

Category Fields Reference​

FieldRequiredDescriptionValidation
Category Name (name)✅Display name for the category3–300 characters
HSN / SAC Code (hsnCode)✅Tax classification code shared by all products in the category4, 6, or 8 digits — no leading zeros
Default Tax Rate (defaultTaxRate)✅GST % applied to products that have Use Group Tax Rate enabled0–999.999
Is Service (isService)✅true → category uses SAC codes (services); false → HSN codes (goods)Toggle
Default Unit (unit)—Default unit of measure pre-selected when adding a product to this category3–8 letters
Description (description)—Internal notes about what belongs in this categoryUp to 1000 characters
Category Code (groupCode)AutoSystem-generated unique code in format GRxxxxByyy — not editableAuto-assigned
suggerimento

To add a new category, see Create Product Category for a full step-by-step guide.

✏️ Editing a Product Category​

  1. Find the category in the Product Categories list
  2. Click the Edit icon (pencil)
  3. Update any field — Category Name, HSN/SAC Code, Default Tax Rate, Is Service, Unit, Description
  4. Click Save Category

Impact of Editing on Products​

:::warning Tax Rate Cascade Updating a category's Default Tax Rate immediately changes the effective tax on all products in that category that have Use Group Tax Rate enabled. This affects all new invoices created after the change. Existing finalized invoices are not affected. :::

ChangeEffect on Products
Rename categoryProducts still in category; display name changes everywhere
Change Default Tax RateProducts with Use Group Tax Rate = on now use the new rate on new invoices
Change HSN/SAC CodeProducts that inherited the category code now show the updated code on new invoices
Change Is ServiceDoes not retroactively change product records — update individually if needed

🗑️ Deleting a Product Category​

  1. Find the category in the Product Categories list
  2. Click the Delete icon (trash)
  3. Confirm in the popup
avviso

You cannot delete a Product Category that still has products assigned to it. First reassign or delete all products in the category, then delete the empty category.

Assigning Products to a Category​

When creating or editing a product, select the category from the Product Category dropdown. The product inherits:

  • The category's Default Tax Rate (when Use Group Tax Rate is on)
  • The category's HSN/SAC Code (can be overridden per product)
  • The category's Default Unit (pre-selected, can be changed)

Products can be moved between categories at any time by editing the product and selecting a different category.

📥 Bulk Import into a Category​

You can import multiple products directly into a category using an Excel template:

  1. In the Products page, click Import
  2. Select the target Product Category
  3. Click Download Template — an Excel file formatted for that category
  4. Fill in product rows (Name, Unit Price, HSN Code, Unit, Barcode, etc.)
  5. Upload the filled file
  6. Review the import result (success count, failed rows with error messages)
suggerimento

All imported products inherit the category's default tax rate if Use Group Tax Rate is active. Set the category's tax rate correctly before importing to avoid having to update each product afterwards.

Best Practices​

  • Create categories before products — products inherit defaults, saving manual entry
  • One category per tax rate + HSN/SAC combination — minimizes accidental tax mismatches
  • Use isService accurately — affects which code type (HSN vs SAC) is used on invoices
  • Keep category names meaningful — team members use them when categorizing products on invoices
  • Avoid too many narrow categories — aim for categories that align with your GST rate structure, not every product type

:::caution Tax Compliance Always verify HSN/SAC codes and tax rates with your accountant or GST advisor. Incorrect codes on filed returns may require amendments. :::

Example Category Setups​

IT Services Company​

CategoryIs ServiceCodeTax Rate
Software Development✅99831518%
IT Consulting✅99831418%
Technical Support✅99831618%
Training✅99929318%

Hardware Reseller​

CategoryIs ServiceCodeTax Rate
Networking Equipment❌851718%
Computers & Laptops❌847118%
Accessories❌847318%
AMC Contracts✅99831618%

⚠️ Troubleshooting​

Cannot Delete a Product Category​

Problem: Delete button shows an error.

  1. Check if products are still assigned to this category
  2. Go to the Products list and filter by this category
  3. Reassign or delete those products
  4. Try deleting the category again

Products Not Inheriting Category Tax Rate​

Problem: Product shows a different tax rate than the category default.

  1. Edit the product
  2. Check if Use Group Tax Rate is enabled
  3. Enable it to inherit the category's default tax rate
  4. Click Save

HSN/SAC Code Validation Error​

Problem: Invalid code format or validation error.

  1. Code must be exactly 4, 6, or 8 digits
  2. No spaces or special characters allowed
  3. Cannot be all zeros
  4. Use the Auto-populate HSN Code button for suggestions

🔗 Related​