Maintaining Products

Hi members

II'm having a problem in maintaining products in CRM.

If i create a material(say laptop) and i want to give service to that saying monthly service and I also want to give warranty for 1 yr.

then should i create-

1)a product type MATERIAL(laptop)

2)product type SERVICE(monthly service)

3)product type WARRANTY(1 yr warranty)

and then assign these service and warranty products in the relationships tab of the material(laptop).

Is this the way of creating products in CRM?

Points will be rewarded!!!