> ## Documentation Index
> Fetch the complete documentation index at: https://docs2.zenskar.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Product

In Zenskar, a **product** is a structured, reusable representation of a good or service offered by your business. It serves as the fundamental unit of value within a contract, defining what is being sold and how that item should be priced, taxed, and accounted for.

While a contract defines the overall agreement and a phase defines the timeframe, the product defines the specific deliverable and its associated commercial logic.

***

## Data architecture

A product is a component of a phase. Within the Zenskar hierarchy, it functions as the bridge between your catalog and the actual billing and revenue engines.

* **Contract or plan:** The high-level agreement or template.
* **Phase:** The specific period in which the product is active.
* **Product:** The core offering (e.g., a "Premium subscription" or "API units").
* **Feature:** Add-ons or modifiers (e.g., a "10% discount" or "Standard tax") that apply to the products within the phase.

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## Product attributes

Every product carries a set of descriptive and technical attributes that ensure consistency across external systems and financial reports.

| Attribute     | Functional purpose                                                                                                            |
| ------------- | ----------------------------------------------------------------------------------------------------------------------------- |
| **Name**      | The identifier used on customer-facing invoices and internal reports.                                                         |
| **SKU**       | A unique stock keeping unit used to sync data with ERP or inventory systems.                                                  |
| **Tax codes** | Specific identifiers (e.g., for Avalara) that determine the appropriate tax treatment based on product type and jurisdiction. |
| **Type**      | Defines whether the product is a standalone item or part of a bundle.                                                         |

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## Commercial execution

When a product is attached to a contract, it triggers specific behaviors in Zenskar’s downstream engines:

### Billing engine

The product stores the pricing model (e.g., flat fee, tiered, or usage-based) and the billing frequency. The billing engine references these details to calculate charges and generate invoices at the correct intervals.

### Revenue engine

For organizations complying with **ASC 606** or **IFRS 15**, the product configuration determines how revenue is recognized. This includes identifying the performance obligation (POB) associated with the product and the timing of recognition (e.g., over time as a service is provided or at a point in time when an item is delivered).

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## Products versus features

It is important to distinguish between a product and a feature within the Zenskar data model:

* **Products** represent the primary value being exchanged. They are the "items" on the invoice, such as a software license or a consulting package.
* **Features** are commercial modifiers. They do not typically exist as standalone items but instead alter how a product or phase behaves. Examples include discounts, localized tax applications, or specific payment terms.

***

**Next steps:**

* To learn how to build your product catalog, see the **\[How-to: Create a product]** guide.
* For a technical breakdown of product fields, see the **\[Product reference]**.
* Would you like me to draft the **How-to: Create a product** guide next?