An item is defined once and used by every quotation, invoice, purchase order and stock movement afterwards. Getting the HSN and tax treatment right here means never setting them on a document again.
Steps
- Go to Inventory → Items and choose New.
- Enter the name and, if you use them, the SKU.
- Choose the kind — goods or services. Services use a SAC rather than an HSN and do not carry stock.
- Set the HSN or SAC and the GST rate.
- Set the unit and pack size.
- Set selling and purchase rates. These are defaults a document can override.
- Choose the tracking mode — none, batch, or serial.
- Set a reorder point if you want it on the buying list automatically.
- Save.
Choose tracking before you hold stock. Switching an item to batch tracking once there are movements against it means the existing stock has no batch, and every report that groups by batch will show it separately.
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