{"id":4186,"date":"2026-05-29T20:44:40","date_gmt":"2026-05-29T20:44:40","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4186"},"modified":"2026-07-18T10:59:24","modified_gmt":"2026-07-18T10:59:24","slug":"product-vs-service-item-zoho-books","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/product-vs-service-item-zoho-books\/","title":{"rendered":"Product vs Service Item"},"content":{"rendered":"<style>.gt-body{font-family:'Poppins',sans-serif;color:#111;line-height:1.75}.gt-def{border-left:4px solid #E8650A;padding:16px 20px;background:#fff8f4;border-radius:0 8px 8px 0;margin:0 0 32px;font-size:1.05rem}.gt-section{margin:0 0 36px}.gt-section h2{font-family:'Fraunces',serif;color:#0A1628;font-size:1.5rem;margin:0 0 12px}.gt-example-box{background:#f0f4ff;border-radius:10px;padding:20px 24px;margin:0 0 32px}.gt-example-box strong{color:#2563EB}.gt-related-pills{display:flex;flex-wrap:wrap;gap:10px;margin:0 0 32px}.gt-related-pill{background:#f7f4ef;border:1px solid #ddd8cf;border-radius:20px;padding:6px 16px;font-size:.875rem;color:#0A1628;text-decoration:none}.gt-faq-item{border:1px solid #ddd8cf;border-radius:10px;padding:16px 20px;margin:0 0 12px}<\/style>\n<div class=\"gt-body\">\n<div class=\"gt-def\">In Zoho Books, a product item represents a physical good that requires an HSN code and can be tracked in inventory, while a service item represents an intangible service that requires a SAC code and has no stock tracking.<\/div>\n<div class=\"gt-section\">\n<h2>Product Items in Zoho Books<\/h2>\n<p>Product items are tangible goods. When you create a product item, Zoho Books requires an HSN code (Harmonised System of Nomenclature), which is an 8-digit code classifying the type of good. The GST rate is assigned at the HSN code level by the government. Inventory tracking can be enabled for product items: each time the item is added to a customer invoice, the stock decreases; each time it is added to a vendor bill or purchase order, the stock increases. The item&#8217;s stock balance is visible from the Items module and feeds into stock-on-hand reports.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Service Items in Zoho Books<\/h2>\n<p>Service items are intangible. They use SAC codes (Service Accounting Codes) instead of HSN codes. There is no inventory quantity to track, so adding a service item to an invoice simply records the income without affecting any stock balance. Service items are ideal for professional fees, subscription charges, maintenance contracts, training, and any other deliverable that is not a physical product. Both product and service items support GST rate assignment and all standard pricing and discount features.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Mixed Transactions in Zoho Books<\/h2>\n<p>Many Indian businesses raise invoices that mix product and service items. For example, a printer supplier sells a printer (product, HSN code) and charges for installation (service, SAC code) on the same invoice. Zoho Books handles this correctly: each line item carries its own HSN or SAC code and GST rate, and the invoice totals the different tax amounts before calculating the grand total.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Industry:<\/strong> IT Hardware and Services \u2014 A Bengaluru IT company sells laptops (product items with HSN 8471, GST 18%) and provides IT support services (service items with SAC 998314, GST 18%) on the same invoice. Zoho Books correctly identifies both item types, assigns the right codes, and calculates GST accurately for the combined invoice.<\/div>\n<div class=\"gt-related-pills\"><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/item-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Item<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/hsn-code-zoho-books\/\" class=\"gt-related-pill sp-content-link\">HSN Code<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/sac-code-zoho-books\/\" class=\"gt-related-pill sp-content-link\">SAC Code<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/gst-zoho-books\/\" class=\"gt-related-pill sp-content-link\">GST<\/a><\/div>\n<div class=\"gt-faq-item\"><strong>What is the difference between Product and Service Item in Zoho Books?<\/strong><\/p>\n<p>A product item in Zoho Books represents a physical good tracked in inventory with an HSN code. A service item represents an intangible service with a SAC code and no stock tracking.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>When should I use a service item in Zoho Books?<\/strong><\/p>\n<p>Use a service item for any intangible deliverable such as consulting, software development, maintenance contracts, or installation services. Service items use SAC codes and are never tracked in inventory.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In Zoho Books, a product item represents a physical good that requires an HSN code and can be tracked in inventory, while\u2026<\/p>\n","protected":false},"template":"","meta":{"seo_title":"Product vs Service Item | Zoho Books Glossary","seo_description":"Learn the difference between product and service items in Zoho Books and how each affects inventory, HSN\/SAC codes, and GST calculations.","seo_keyword":"product vs service item zoho books","seo_faqs":"[{\"q\": \"What is the difference between Product and Service Item in Zoho Books?\", \"a\": \"A product item in Zoho Books represents a physical good that can be tracked in inventory with quantities and requires an HSN code for GST. A service item represents an intangible service that is not stock-tracked and requires a SAC code. The distinction affects inventory management, HSN or SAC code assignment, and certain GST reporting fields.\"}, {\"q\": \"When should I use a service item in Zoho Books?\", \"a\": \"Use a service item in Zoho Books for any intangible deliverable such as consulting hours, software development, annual maintenance contracts, freight charges, or installation services. Service items use SAC codes instead of HSN codes and are never tracked in inventory.\"}]","term_type":"Business","glossary_related":"","glossary_links":""},"glossary_category":[1246],"class_list":["post-4186","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-books"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=4186"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}