# General Business Category > Accounting Forum > [Question] Inventory Setup in Pastel Patner V12

## anna911

Hi Everyone

Can someone please assist me with the following:

I am busy setting up inventory on Pastel for our company that manufactures furniture.
We do not have the Bills of Materials module.
I am integrating inventory.

I have created categories for the raw materials & for the finished goods.
The raw materials consist of a combination of physical & service items.

I want to know if I should use the categories I created under the description column in the "Setup - Inventory - Integration" and does the order matter?

*Note*: I have also made sub accounts for each inventory category for the "Cost of Sales account"
What other accounts should have the same sub-accounts?

Some guidance will be appreciated.

Thank you.

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## Neville Bailey

Hi Anna,

Don't confuse Inventory Categories with Inventory Groups.

They can be set up to have the same names, but they don't need to, and they serve different purposes.

Inventory Categories (not mandatory) can be set up to facilitate categorisation of various inventory reports. They do not have any bearing on the general ledger classification.

On the other hand, you need to have at least one Inventory Group set up, which you can do under Setup...Inventory. These define the mapping of each Group of inventory items to the various general ledger accounts, i.e. Sales, Cost of Sales, Inventory Control, etc.

You can have more than one Inventory Group mapped to a single Sales account. Normally, however, you would create a unique Group for each Sales and Cost of Sales sub-account in the general ledger, but then map all the Groups to a single Inventory Control account. It all depends on how much detail you want to see at the general ledger level.

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## anna911

Thank you for your quick response Neville!

It seems I have indeed confused them.
I tried phoning pastel support to assist me but they said they cannot in this regard.

Please have a look at my inventory categories (attached) for raw material.
In this case; what would my groups be?

I also have categories for the furniture (finished goods), tables, chairs, etc.

Please see my general ledger accounts also (attached).
I'm unsure of the account to put for integration when it comes to service items.

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