Debitoor Dictionary

Accounting terms explained in a simple way

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Product list - What is a product list?

Definition: A product database contains information about a company's entire product portfolio.

The main purpose of a product list is to keep track of all of a company’s goods, stock, price and sales history. It is usually necessary to create a product database in order to prepare invoices.

You can place products together in groups – such as zero-rated VAT, standard rate VAT, etc. – and you can assign group units for a total sale account, which is handy for when you are, for example, generating reports.

What information is included in the product database?

Before you can enter products in your product list you must first create product groups, which should be logically titled. You can then enter products into your different product groups.

A typical product list contains information about the products made by a company. Information included could be: product name and number and the product cost, along with its stock status including: its current availability and how many have been ordered.

A product list is also usually in only one particular currency.