How are items categorized in NetSuite inventory?

Items in NetSuite inventory are categorized primarily by type, which includes classifications such as inventory items, non-inventory items, and service items. This classification is integral to how inventory management functions within the platform, allowing users to differentiate between what is held in stock and what requires different handling.

Inventory items refer to goods that a company sells and keeps on hand for sale. Non-inventory items might include items that are sold but not physically tracked in inventory, like drop-ship items or items that are only used internally. Service items represent services provided rather than physical goods.

This categorization streamlines inventory management and reporting, as it helps users quickly identify the nature of items and manage them accordingly through features such as tracking sales, orders, and stock levels.

Other choices like categorization by price and sales volume, supplier, delivery time, or market demand do not form the foundational structure of item categorization in NetSuite, though they could influence specific inventory management decisions or analyses within the system. The primary categorization by item type supports the overall structure of inventory operations in NetSuite.