Contains finished items, semi-finished items, or raw materials. You cannot attach bills of materials (BOMs) or routes to the item number.

Contains items, services, and other bills of materials. BOMs can be semi-finished items or finished items. You create the items in a BOM in the inventory table with an item number. An item number that is to be produced in the production module must be created as a BOM. BOMs can also be used with sets of products, such as a garden furniture set, consisting of a table and four chairs. The furniture set is the BOM, and the table and chairs are the individual item numbers. The advantage of creating product sets as BOMs is that the parts can be selected both individually and as a set.

Service is used, for example, for wages and consulting services, but is registered with physical on-hand inventory as inventory value on lines with the and types. The value of services figuring in BOMs should, however, be posted to separate accounts in Ledger. Therefore, it is recommended that you assign to services a separate item group with corresponding accounts when you set up item groups. If services belong to the same item group as items of the or types, the value of the services is credited to the same account as physical items, which is not wanted when you reconcile inventory values between inventory and ledger. Also, it is recommended that you attach services to a service inventory model group, where the check box is clear, and where the and check boxes are selected.