SKUs, also known as stock keeping units, were traditionally scanned codes to help vendors track the movement of inventory. Businesses would create a unique SKU for each good or service offered to track sales data and know when the product needed to be restocked.
Within RevOps.io, each SKU also represents the products or services that could be sold. When an SKU is added to the Sales Agreement, a line item is created. This line item represents the agreed upon product or service and price which your customer is purchasing.
SKUs are a representation of the product or service offered by the business, while line items represent the agreed upon product or service purchased.
The business will list the product at a "recommended" price; this is known as the list price or MSRP (Manufacturer's Suggested Retail Price) of the SKU. However, when the product is sold, it may be adjusted due to the needs of the specific customer, the quantity sold, and the agreement terms. To keep track of the unique pricing, quantity, and other entitlements that may only be available to the customer for that particular agreement, a line item is created.
Since RevOps tracks them separately,
While SKUs and Line Items appear almost identical, by making them two separate objects we're able to clearly keep track of what the business offers versus what the customer purchased. Most of the time, Sales Users are interacting with line items while Admins and Operators are managing the SKUs.
