Step-by-step guide

Items and services setup

Set up products, services, and cost metadata so margins and inventory reports remain reliable over time.

Section: Accounting foundationRead: 11 minUpdated: April 12, 2026

How to do this in CashyNest

Use the Items module as a single source of truth for pricing, tax behavior, and posting defaults before teams start transaction entry.

Create item/service master records

Menu path: Sidebar > Settings > Items

Route:/:organizationId/settings/items

  • Create item name/SKU with clear category conventions.
  • Set sales price, purchase cost, and tax treatment.
  • Assign the correct revenue/expense ledger account for each item type; free plans can use the seeded accounts.

Expected result: Reusable, consistent line items are available across sales and expense forms.

Validate on sales documents

Menu path: Sidebar > Sales > Invoices

Route:/:organizationId/sales/invoices/new

  • Create a test invoice using the new item.
  • Verify line totals, tax amount, and customer receivable behavior.
  • Confirm print view matches expected item details.

Expected result: Item settings behave correctly in customer billing.

Validate on purchase documents

Menu path: Sidebar > Expenses > Bills

Route:/:organizationId/expenses/bills/new

  • Create a test bill using mapped purchase items.
  • Validate tax and payable behavior in report outputs.
  • Correct mapping before enabling broad team usage.

Expected result: Item behavior is consistent across both sales and purchase workflows.

Outcome to achieve

  • Create an item catalog that supports clean invoicing, billing, and profitability analysis.
  • Standardize units, SKUs, and price lists across teams.
  • Keep tax and revenue recognition mapping consistent by item type.

Step-by-step setup

1

Design SKU and naming conventions

Use a durable SKU pattern that reflects category and sequence without encoding volatile information.

  • Create category prefixes for products, services, and bundles.
  • Store public name and internal short code separately.
  • Avoid duplicates by enforcing SKU uniqueness.
2

Define commercial and accounting attributes

Set sale price, cost basis, tax behavior, and linked ledger mapping before first transaction.

  • Map revenue and expense accounts per item class.
  • Set default tax code and exemption rules; printed documents hide GST sections when the organization has no GST registration.
  • Use seeded ledger accounts on free plans so item creation does not block estimate or invoice creation.
  • Define reorder thresholds for stocked products.
3

Set lifecycle states and controls

Use active, inactive, and archived states to avoid accidental reuse of retired items.

  • Deactivate items instead of deleting used records.
  • Require review before changing price or account mapping.
  • Track effective dates for price updates.
4

Validate with test documents

Create one sales and one purchase transaction for each item class to verify posting behavior.

  • Check document line totals, tax totals, and account postings.
  • Confirm margin reports show expected gross profit.
  • Fix mapping issues before live use.

Best practices

  • Use item classes to drive defaults instead of setting every field manually.
  • Review top 20 items monthly for price, margin, and demand trends.
  • Archive rarely used items to keep user selection lists clean.

Common mistakes to avoid

  • Changing account mapping for active items without effective dates.
  • Using free-text line items for recurring products.
  • Mixing inventory and non-inventory items without clear labels.
  • Showing zero GST as a tax rate on customer documents when the organization itself is not GST registered.

Reports to watch

  • Item Profitability: track margin by product and service line.
  • Inventory Valuation and Movement: detect slow-moving stock.
  • Sales by Item: align pricing strategy to actual demand.

Related guides

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