====== Why Categories are Assigned a Product Line ======

**Product Lines** are used to associate a **Tax Code** to a **Category** to speed item entry. **Product Lines** are also used to group Categories together for reporting purposes.

**Example**: A clothing store sells shoes to both women and children.

A separate **Category** exists for each: Women's Apparel - Shoes - (Type of Shoe), and Children's Apparel - Shoes - (Type of Shoe). Running a **Category** Report will show sales in each **Category** separately.

By creating a Shoe Product Line and associating each with this Product Line, a Sales by Product Line report can be run that show sales of ALL shoes across all Categories.

While every **Category** must have a Product Line associated with it for Tax purposes, using **Product Lines** to group Categories together for reporting purposes is optional.

Some states have tax laws that make grouping Categories into **Product Lines** problematic. For instance the State of Minnesota has no tax on clothing, but it does tax Belts. In such a case there are two options.

  - Change the **Tax Code** as necessary when items are entered. For example, if most Belts are Taxable and only a few are Non-Taxable, assign Belts to a Product Line that is taxed. When entering non-Taxable Belts change the **Tax Code** field to Non-Taxable. This method may be best if you are not relying on **Product Lines** for reporting purposes.
  - Create two **Product Lines**, one Taxable, and one non-Taxable. For example, a Taxable Belt Product Line and a Non-Taxable Belt Product Line. This will also require creating two Belt Categories - Belt (Taxable) and Belt (Non-Taxable). This method may be best if you are relying on **Product Lines** for reporting purposes.
==== Next Article In Section ====

Click the following link to move to the next article in this section: \\ [[:setup:requiredsetupsteps:inventorymodule:productlines:assignroductlines|Assigning Product Lines to Categories]]

==== Related Topics ====

[[setup:requiredsetupsteps:inventorymodule:productlines:whyplassigned]]
[[setup:requiredsetupsteps:inventorymodule:productlines:setupproductlines]]
[[setup:requiredsetupsteps:inventorymodule:productlines:assignroductlines]]
[[setup:requiredsetupsteps:inventorymodule:productlines:productlinesoverview]]
[[setup:requiredsetupsteps:inventorymodule:categories:addchangeanddeletecategories]]
[[setup:requiredsetupsteps:inventorymodule:categories:categoriesoverview]]
[[setup:requiredsetupsteps:inventorymodule:categories:category_tax_update]]
[[setup:requiredsetupsteps:inventorymodule:categories:categoryeditor]]
[[setup:requiredsetupsteps:inventorymodule:categories:selectingcategoriesduringitement]]
[[setup:requiredsetupsteps:inventorymodule:categories:turnonandoffcat]]
[[setup:requiredsetupsteps:inventorymodule:pricecodes:aboutitemfees]]