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Labor as a Product

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I tried to create labor as a product per some reading my boss and I have done.  However it does not allow me to add it to work a work order either through CRM or the field service app.  I receive the following errors. 

Per the reading we have done, we are to mark it as "service" and not "inventory" or non-inventory".  Has anyone had experience with this?  If so, how was this resolved?

Thank you for any help you can offer.  

Shelley


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