{"id":17695,"date":"2026-01-29T11:56:41","date_gmt":"2026-01-29T11:56:41","guid":{"rendered":"https:\/\/tenthplanet.in\/idempiere\/?p=17695"},"modified":"2026-09-11T11:14:29","modified_gmt":"2026-09-11T11:14:29","slug":"how-can-i-create-a-new-product-and-define-its-usage-in-idempiere","status":"publish","type":"post","link":"https:\/\/tenthplanet.in\/idempiere\/how-can-i-create-a-new-product-and-define-its-usage-in-idempiere\/","title":{"rendered":"How can I create a new product and define its usage in iDempiere"},"content":{"rendered":"\n

To support purchasing, inventory management, sales, and project operations, iDempiere requires all items whether materials, services, or expenses to be defined as Products<\/strong>. <\/p>\n\n\n\n

The Product master acts as a central configuration point that determines how an item behaves across procurement, warehousing, accounting, and projects.Creating a product correctly ensures accurate stock tracking, proper accounting postings, and smooth integration with purchase orders, material receipts, invoices, and project task lines.<\/p>\n\n\n\n

Creating a Product<\/strong><\/h2>\n\n\n\n

The first step is to create a new Product record. This record defines the basic identity of the item and controls how it is used throughout the system<\/p>\n\n\n\n

How to create a product<\/strong><\/h3>\n\n\n\n
    \n
  1. Navigate to the Product<\/strong> window<\/li>\n\n\n\n
  2. Create a new Product record<\/li>\n<\/ol>\n\n\n\n

    At this stage, the product is only a shell. Its behavior is determined by the attributes and flags configured in the following steps.<\/p>\n\n\n\n

    \"\"<\/figure>\n\n\n\n

    Defining Basic Product Information<\/strong><\/h2>\n\n\n\n

    Basic product details help users identify and select the correct item during transactions.<\/p>\n\n\n\n

    Configuration includes<\/p>\n\n\n\n

      \n
    • Entering a meaningful Product Name<\/strong><\/li>\n\n\n\n
    • Assigning a Search Key<\/strong> for quick lookup<\/li>\n\n\n\n
    • Selecting the applicable Organization<\/strong><\/li>\n\n\n\n
    • Providing Description<\/strong> and Comments<\/strong> if required<\/li>\n<\/ul>\n\n\n\n

      These details improve usability and reduce errors during purchasing, inventory movements, and project planning.<\/p>\n\n\n\n

      Selecting the Product Type<\/strong><\/h2>\n\n\n\n

      The Product Type<\/strong> determines whether the product represents a physical item or a non-stock service.<\/p>\n\n\n\n

      Available options include<\/strong><\/h3>\n\n\n\n
        \n
      • Item<\/strong> – Used for physical materials that may be stocked, issued, or consumed<\/li>\n\n\n\n
      • Service<\/strong> – Used for labor, subcontracting, rentals, or charges that do not affect inventory<\/li>\n\n\n\n
      • Asset – <\/strong>A product intended to become a fixed asset<\/strong>.<\/li>\n\n\n\n
      • Expense type – <\/strong>A product used purely for expense posting<\/strong>, not stock or asset.<\/li>\n\n\n\n
      • Resource – <\/strong>A capacity-based<\/strong> product representing time or effort.<\/li>\n<\/ul>\n\n\n\n
        \"\"<\/figure>\n\n\n\n

        Defining Purchase, Inventory, and Service Behavior<\/h2>\n\n\n\n

        Product behavior is controlled using functional flags. These flags determine where and how the product can be used.<\/p>\n\n\n\n

        Key configuration options include<\/h3>\n\n\n\n
          \n
        • Purchased<\/strong> \u2013 Enables the product for Purchase Orders and Vendor Invoices<\/li>\n\n\n\n
        • Sold<\/strong> \u2013 Enables the product for Sales Orders and Customer Invoices<\/li>\n\n\n\n
        • Manufactured<\/strong> \u2013 Used for Bill of Material products.<\/li>\n<\/ul>\n\n\n\n

          Behavior examples<\/strong><\/h3>\n\n\n\n
            \n
          • A raw material<\/strong> is typically Purchased and Stocked<\/li>\n\n\n\n
          • A subcontract service<\/strong> is Purchased but not Stocked<\/li>\n\n\n\n
          • A project charge or labor cost<\/strong> is a Service with Expense Type enabled<\/li>\n<\/ul>\n\n\n\n

            This setup ensures the product behaves correctly in procurement, inventory, and accounting flows.<\/p>\n\n\n\n

            Assigning Product Category<\/h2>\n\n\n\n

            The Product Category<\/strong> controls accounting rules, default accounts, and reporting behavior.<\/p>\n\n\n\n

            When assigning a product category<\/strong><\/h3>\n\n\n\n
              \n
            • Ensure it matches the nature of the product (Material, Service, Expense, Asset)<\/li>\n\n\n\n
            • Confirm that accounting is correctly configured at the category level<\/li>\n<\/ul>\n\n\n\n

              This allows iDempiere to automatically derive accounting entries during transactions such as receipts, issues, and invoices.<\/p>\n\n\n\n

              \"\"<\/figure>\n\n\n\n

              Defining Unit of Measure (UOM)<\/strong><\/h2>\n\n\n\n

              The Unit of Measure<\/strong> defines how quantities are handled for the product.<\/p>\n\n\n\n

              Configuration includes:<\/p>\n\n\n\n

                \n
              • Selecting the primary UOM<\/strong> (e.g., Each, Kg, Meter, Hour)<\/li>\n\n\n\n
              • Ensuring consistency with purchasing, inventory, and project usage<\/li>\n<\/ul>\n\n\n\n

                Accurate UOM setup prevents quantity mismatches during receiving, issuing, and invoicing.<\/p>\n\n\n\n

                Defining Service Products (Non-Stock)<\/strong><\/h2>\n\n\n\n

                For Service or Expense-type products<\/strong><\/h3>\n\n\n\n
                  \n
                • No inventory transactions are created<\/li>\n\n\n\n
                • Costs are directly posted to accounting<\/li>\n\n\n\n
                • Products can be used in Purchase Invoices, Project Task Lines, and Expense flows<\/li>\n<\/ul>\n\n\n\n

                  This is commonly used for labor charges, subcontracting, rentals, and professional services.<\/p>\n\n\n\n

                  By correctly configuring a product<\/strong><\/h3>\n\n\n\n
                    \n
                  • Users can purchase materials or services without manual adjustments<\/li>\n\n\n\n
                  • Inventory is accurately tracked for physical items<\/li>\n\n\n\n
                  • Accounting entries are generated automatically<\/li>\n\n\n\n
                  • Products can be reused consistently across purchasing, inventory, projects, and finance<\/li>\n<\/ul>\n\n\n\n

                    A well-defined Product master ensures reliable transaction processing and forms the foundation for effective operational and financial control in iDempiere.<\/p>\n\n\n\n