> For the complete documentation index, see [llms.txt](https://kb.logicerp.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.logicerp.com/logic-erp-learning-hub-tutorials-and-best-practices/setups/setup-items/setup-item-group.md).

# Setup Item Group

**YouTube:** [How to create Item Groups in Logic ERP?](https://www.youtube.com/watch?v=JZBMVtBzhfQ\&t=1s)

## How to create Item Groups in Logic ERP?

In this Tutorial, you will learn how to efficiently **set up item groups** in **Logic ERP** to streamline inventory management.

### **Step-By-Step Guide:**

1. Navigate to the "Setup" and then Expand "Setup Items".
2. Click on "Setup Item Groups".
3. You can create **up to 30 group categories** for organizing items.

<figure><img src="/files/P138z1uqzxgx1c5QFCJT" alt=""><figcaption><p>As you can see, <strong>30 Groups</strong> are being shown here.</p></figcaption></figure>

### **Understanding GST Tax Groups**

* The **GST tax group category** is **predefined** in the system.
* It includes **five slabs of GST percentages**, and items are **allocated accordingly**.

<figure><img src="/files/z6jZXLjwtNIKXBw8Nuyd" alt=""><figcaption><p>This picture shows how GST groups can be created.</p></figcaption></figure>

### **Creating Item Groups**

* Each group contains **five levels**.
* **Right-click** on a group to **rename** it and enter the desired name.
* You can also **rename each level** as needed.
* Click **Refresh** to apply changes.

<figure><img src="/files/b5iR5gBeEopEeVVSdjs8" alt=""><figcaption><p>This picture shows how to create a new group.</p></figcaption></figure>

### **Defining Item Group Details**

* **Enter the group name** and a **short name**.
* Select whether the item is **raw material or finished product**.
* **Define the margin percentage**—this automatically calculates **MRP** by adding the defined percentage to the **basic rate**.
* Press **Spacebar** to enable a prompt message during **sale billing** (useful for pharmaceutical businesses with **prescription-based medicines**).
* **Add descriptions** (up to **seven descriptions**) for better classification.
* Click **Save** to store the changes.

<figure><img src="/files/5bc1qw3Ld65ML7lvqK2s" alt=""><figcaption><p>This picture shows how to define the details of a group.</p></figcaption></figure>

### **Allocating Items to Groups**

* Right-click on the group and select **"Allocate."**.
* Search and select the items to allocate.
* **Note:** An item **cannot belong to multiple groups**.
* To remove an item from a group, click **Deallocate**.

<figure><img src="/files/AwWTVsIlM9QueJAuUZbn" alt=""><figcaption><p>This picture shows how to allocate a group.</p></figcaption></figure>

### **Creating Multi-Level Grouping**

* Create **Level 2 groups** the same way as Level 1.
* Allocate **Level 1 groups** into **Level 2**.
* Similarly, **Level 2** groups can be allocated into **Level 3**, creating a **hierarchical structure** up to **five levels**.

### **Managing Group Order & Moving Groups**

* Click **Refresh** and click on **Order** to **rearrange groups** using arrows.
* The **Move Item Groups** feature allows **copying** categories to another group.
* Items can also be moved between groups.

### **Adding Images to Groups**

* Browse and upload an **image** for each group.
* The image will be **visible during billing**, helping in quick identification.

<figure><img src="/files/qW8h8mawTfnY1efnWn4q" alt=""><figcaption><p>This picture shows how to add an image to a group.</p></figcaption></figure>

### **Practical Applications in Different Businesses**

#### **Pharmaceutical Business**

* Group items based on **Schedule H, Schedule H1, and NRX categories**.
* Enable prompt alerts for **Schedule H1** items during billing.
* Items can also be grouped based on **salt names**.

<figure><img src="/files/jH4J4gZW4kVC1gPQLNc8" alt=""><figcaption><p>This picture illustrates how to create pharma groups and enable the prompt.</p></figcaption></figure>

#### **Apparel Business**

* Apparel grouping is highly **customizable**.
* Common grouping criteria include:
  * **Gender** (Men, Women, Kids)
  * **Season** (Summer, Winter, All-Season)
  * **Style** (Casual, Formal, Sportswear)
  * **Fit** (Slim, Regular, Relaxed)
  * **Occasion** (Party, Office, Daily Wear)

This structured **item grouping system** in **Logic ERP** ensures **better inventory organization**, simplifies billing, and improves operational efficiency.<br>


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