As standard transactions of the same type from sales channel payouts are grouped together into one line item on the invoice sent to Xero/QuickBooks.

However if you want to breakdown your sales and refunds by Product Groups you can.

This can be especially useful if you sell products across multiple different VAT rates and need to account for their sales separately.

How to set up Product Groups when you sell a mixture of Standard, Zero or Reduced Rated Goods

Step 1 - Use the wizard to setup product groups

During the setup wizard you will be asked if you sell any Zero Rated or Reduced Rated Goods for UK VAT.

(You can access the setup wizard via the Accounts & Taxes menu under Accounts & Taxes Wizard)

Select "Yes" if you do, as shown below:

Link My Books will then create product groups for you automatically and allow you to confirm the tax rates for each group:

👉 IMPORTANT: Once you confirm the tax rates for the groups you still need to assign each of your products to a product group for those tax rates to be applied.

Step 2 - Assign products to product groups

On the Inventory > Product Groups page you will see two tabs, "Product SKUs" and "Product Groups".

On the Product Groups tab you will see the product groups that Link My Books created:

Why is there a Default Product Group?

Any new SKUs and any SKUs that have not yet been assigned to a group will show in the default group.

This makes it easier later on to identify new products and group them before you post settlements to Xero or QuickBooks.

On the Product SKUs tab you will see a list of all the products Link My Books has detected in your settlements.

Here you will assign each SKU to a Product Group using the dropdown menus shown below:

Select the correct group for each of you products, leaving none in the default product group.

(this means that if you add any new SKUs in the future you can easily identify them in the default group and assign those SKUs to the correct groups too)

That's it! 🎉

Once you have assigned each of your products to a group then the rules of that group will from then on be applied to it.

Any settlements that have not yet been sent to Xero or QuickBooks will be refreshed each time you make changes to product groups.

If you have already sent a settlement and need to change the product groups afterwards then you will need to firstly void the invoice in Xero or journal in QuickBooks and then refresh the settlement in Link My Books after you make your changes to the groups, then re-send it.

Using Product Groups for other reasons

If you're not using product groups to separate out Standard, Zero and Reduced Rated goods then you should follow the below steps instead.

An example of this may be if you sell products from different brands and you want to account for the sales and refunds of these brands via separate accounts.

Step 1 - Turn on Product Grouping

Navigate to the Settlement Settings page and change your transaction grouping setting to Breakdown by Product Group and hit Save grouping settings as shown below:

This will turn on the product grouping feature and add all of your products into a new group called Default Product Group.

Step 2 - Set up your Product Groups

Next you will need to set up your groups themselves on the Product Groups page.

Navigate to the Product Groups tab and click Add New Group as shown below:

Then give your new group a name and save it as shown below:

Step 3 - Group products as desired

Lastly you will move your products from the Default Product Group to their correct group by navigating to the Product SKUs tab and selecting the desired group from the dropdown list on the right of each product, as shown below:

You can also use the dropdown menu to create new groups and remove products from a group.

Step 4 – Set Tax Rates:

To set the tax rate for each type of transaction separately to apply different rates to different groups, choose "Set tax rate" from the action menu and then select the rate you want to use for all sales and refunds for that group from the dropdown menu as shown below:

Step 5 - Set Accounts:

To set different accounts for all sales and refund transactions for a product group, choose "Set Account" from the action menu and then select the account you want to use for all sales and refunds for that group from the drop down as shown below:

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