The main differences between a product and a service are:

  1. Product or a good affects inventory by subtracting quantity from inventory
  2. Products or goods purchased via with a PO are captured and received on inventory. Services don’t use inventory module and considered as “Goods Received”
  3. Resources in Order Module can be assigned to a service but not to a product
  4. There is no option in Order Module to capture a service, just to mark it as service provided.