How is a Department Different from a Collection?

Departments are for accounting purposes. A product can only belong to 1 department, and departments are then integrated into reports and used for accounting. Departments will never appear on the front end, so customers will never interact with them.

Collections are much more flexible. These are customizable categories for products. A product can belong to multiple collections at once. Collections will appear on the front end, customers will be able to see what products are in a collection, or what collections a product belongs to.