Item Grouping and Classification Guide

Use this guide to organize items using categories, subcategories, brands, manufacturers, styles, departments, lookup codes, and product group items so users can search, sell, report, and manage inventory consistently.

What Item Grouping Means

Item grouping means organizing products so users can find items quickly, print cleaner reports, apply consistent pricing or tax decisions, and understand stock by business area. In QBM, grouping can mean classification fields on the item record, or a product group item that contains other items.

Simple rule: use categories, brands, manufacturers, styles, models, and departments for search and reporting. Use a product group item only when the business needs one sellable group made from component items.

Where to find it

Path: Inventory > Item List, then open the item grouping, category, brand, or classification fields.

Use this path from the main QBM window. If the command is not visible, confirm that the user has access to the related module and permission for that screen.

Two Ways To Group Items

Grouping Method What It Means When To Use It
Classification fields Fields such as Category, Subcategory, Brand, Manufacturer, Style/Model, Department, UPC/SKU, and Lookup Code. Use for normal item organization, searching, filtering, POS lookup, and reports.
Product group item An item type used when one item represents a group of component items. Use when the business sells or manages a grouped item structure, not just a report category.
Do not confuse grouping with tracking: categories and brands do not track batches or serials. Use Track = Serial for unit-level tracking and Track = Product Lot for batch tracking.

Recommended Structure

Before users create many items, define a simple naming and grouping structure. This prevents duplicate categories, unclear brands, and inconsistent reports.

Level Purpose Example
Category Main product family. Electronics, Food, Spare Parts, Services.
Subcategory Smaller group inside a category. Electronics > Laptops, Food > Beverages.
Brand Commercial brand or product label. Samsung, HP, Lenovo, Nestle.
Manufacturer Company that manufactures or supplies the item. Manufacturer name from supplier documents.
Style / Model Model, style, or product design family. Model A15, Style Classic, Series 500.
Department Internal business department or responsibility area. Retail, Service, Wholesale, Workshop.
Lookup Code / UPC/SKU Fast search, barcode, and POS identification. Supplier SKU, internal SKU, barcode number.

Create Setup Lists

Setup lists keep item records clean. Create the lists first, then assign them to item records.

Setup List Where Users Normally Use It Purpose
Product Categories Item Details, category and subcategory fields. Build the main product tree for reporting and lookup.
Brands Item Details, brand field. Group products by brand name.
Manufacturers Item Details, manufacturer field. Identify who produced or supplied the item.
Styles / Models Item Details, model or style field. Group similar products by style, model, or design.
Departments Item Details, department field and reports. Organize items by internal responsibility or sales area.
Keep setup list names short and consistent. For example, choose either Mobile Phones or Mobiles, not both.

Assign Groups On Item Details

Most item grouping is done on the item record. These fields help sales users, inventory users, and report users find the correct item.

  1. Open the item list and create or edit the item.
  2. On the General tab, enter the item name, type, category, subcategory, UPC/SKU, lookup code, and other basic identifiers.
  3. On the item details areas, select the brand, manufacturer, style/model, department, package, country of origin, HS code, color, size, dimensions, and weight when those fields apply.
  4. Review accounts, tax, units, pricing, locations, and other required item setup before saving.
  5. Save the item and test that users can find it using the item list, sales documents, and POS lookup.
Item Tab Or Area Common Grouping Fields
General Category, Subcategory, UPC/SKU, Lookup Code, Item Type.
Details / Others Brand, Manufacturer, Style/Model, Department, Package, HS Code, Made In, Color, Size, Dimensions, Weight.
User Defined Company-specific fields used for extra grouping or reporting.

Use Product Group Items

A product group item is different from a category. A category is only a label for searching and reporting. A product group item can represent a grouped item structure that uses component items.

  1. Create or open the item that should represent the group.
  2. Set the item Type to the correct group type used by your company.
  3. Open the component or group component area for the item.
  4. Add the items that belong inside the group and enter the required quantities.
  5. Save the group structure and test it in the sales or inventory workflow used by your company.
Use product group items only when the business needs a real grouped item. If the goal is only to find or report products together, use categories, brands, manufacturers, styles, or departments instead.

Search, POS, And Reports

Good grouping improves daily work because the same item fields are used across item lists, sales screens, POS, and reports.

Area How Grouping Helps
Item List Users can filter and search items by category, brand, manufacturer, model, department, SKU, or lookup code.
Customer Invoice / Sales Receipt Sales users can find items faster and choose the correct product version.
POS Cashiers can search by item code, lookup code, barcode, or item grouping depending on the POS setup.
Reports Management can review sales, stock, movement, and profitability by product family or classification.
Purchasing Purchasing users can identify supplier, manufacturer, or product family more easily.

Important Fields

Field Meaning For Users
Category Main product family used for item organization and reporting.
Subcategory More detailed product group under a category.
Brand Brand label or commercial product name family.
Manufacturer Producer or manufacturing source of the item.
Style / Model Model, style, or design family.
Department Internal business department or responsibility area.
UPC/SKU Barcode, supplier SKU, or internal SKU used for item identification.
Lookup Code Fast internal code used for search and POS lookup.
Type Controls what kind of item it is, such as inventory, service, assembly, kit, or group depending on company setup.
Track Controls whether the item is normal, serial-tracked, expiry-date tracked, or lot-tracked.

Examples

Business Need Recommended Setup
Report all laptop sales together. Use Category = Electronics and Subcategory = Laptops.
Search all items from one brand. Use the Brand field consistently on each item.
Separate workshop items from retail items. Use Department = Workshop or Retail.
Sell one grouped package made from several items. Use a product group, kit, or assembly workflow, depending on how stock should be handled.
Trace which batch was sold to a customer. Use Track = Product Lot, not category or brand.
Trace which exact unit was sold to a customer. Use Track = Serial, not category or brand.

Common Mistakes

Mistake Why It Causes Problems Better Approach
Creating too many similar categories. Reports become split and users cannot find the correct group. Agree on standard category names before entering many items.
Using brand names as categories. Category reports and brand reports become mixed. Use Category for product family and Brand for brand name.
Using categories to track expiry or batches. Categories do not reduce stock by batch or expiry date. Use Product Lot tracking for batch and expiry control.
Using a group item when only a report group is needed. Group items affect sales or item behavior and may confuse users. Use classification fields unless a real grouped product is required.
Leaving UPC/SKU or lookup codes inconsistent. POS and sales users may select the wrong item. Use a clear item code standard and test scanning/searching.

Best Practices

  • Keep the category tree simple enough for staff to understand.
  • Use category and subcategory for product families, not for brand names.
  • Use brand, manufacturer, and model fields consistently.
  • Use departments only when the business needs internal responsibility or reporting by department.
  • Use UPC/SKU and lookup codes for practical searching and POS speed.
  • Review duplicate or inactive setup list values regularly.
  • Document the company naming standard before importing or creating many items.
  • Use product groups, kits, and assemblies only when users understand how the component structure affects daily work.