What are the differences between item group & item type?
Stock items can be classified according to Item Groups, it is useful for report filtering purpose. Besides, different item groups can post to different G/L Account. For example, Item A under Group A can be posted to Sale Account A, while Item B under Group B can be posted to Sale Account B.
Go to Stock > Stock Group Maintenance. Here, you may maintain item group and its posting setting of default accounts.
Stock items can be classified according to Item Types, this is merely for report filtering purpose. For example, Item A is under Canned Food type, and Item B is under Fruit type.
Go to Stock > Stock Item Type Maintenance to maintain your item type.