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description: The workflow to follow to define products
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# Product Setup

## Product Setup

Product setup involves several steps:

1. Defining the [Warehouses and Locators](product-setup/warehouse-and-locators) that will be used to store products;
2. Defining the [Units of Measure](product-setup/units-of-measure) that the products will use;
3. Create [Asset Groups](product-setup/asset-groups) to define the accounting for the asset products
4. Creating [Product Categories](product-setup/product-categories) which will define the accounts to use to record the costs and revenue from the product. You can also create [Product Classifications, Classes and Groups](product-setup/product-classifications-classes-and-groups) to assist in summarizing reports;
5. Create [Product Attributes, Sets and Instances](product-setup/product-attributes-sets-and-instances)
6. Follow the [Tax Setup](../accounting-and-performance-analysis/tax-setup) process to define the [Tax Categories](../../accounting-and-performance-analysis/tax-setup#tax-category) that will be applied when the product is purchase or sold;
7. Setting the [Revenue Recognition](../revenue-recognition) rules for the product; and finally
8. Defining the product itself.
