The Non-inventory items functionality gives the ability to use non-inventory items, i.e. to turn off inventory tracking for some items (e.g. office supplies, furniture, rent, utilities, services, etc).
- Non-inventory items can only be used in Purchase Orders, Customer Orders, and Invoices (can be bought and sold).
- Non-inventory items cannot be used in BOMs, Manufacturing Orders, Shipments.
- These items are not part of inventory or inventory management - these items do not have stock lots, bookings, etc. They aren't visible in Stock -> Inventory.
This functionality can be enabled at Settings -> System settings -> Professional functions -> Non-inventory items.
When the functionality is enabled, then:
- The setting This is an inventory item (Yes/No) will become available when creating a new article at Stock -> Items. This setting Defaults to "Yes" (entered item is a stock item).
- Once the item has been saved, then this setting cannot be changed. An inventory item cannot be converted to non-inventory and vice-versa.
- Demo video: Non-Inventory Items.
- Using non-inventory items in Customer Orders.
- Expense items for procured services.
If the Professional function “Non-inventory items” is enabled, non-inventory items can be added to customer orders.
You can use these for services that have no direct cost (for example, an additional guarantee).
If the item has a cost (for example, shipping that you order from a sub-contractor), then please create a regular item. This allows linking customer orders with purchase orders, and thus allocating costs towards particular customer orders. For separating these items from inventory items, please create a separate product group.
Non-inventory items are ignored when the software updates the customer order’s Status and Part status. If a customer order contains non-inventory items only, it is possible to select any CO status manually.
If you pay for services or non-inventory items, which should be expensed immediately, it is possible to:
- Set an expense account as the default posting account for non-inventory items.
- Go to Accounting -> Chart of accounts.
- Edit the expense account.
- Select it to be a default account for "non-inventory items".
- Or, set a custom account for the product group, which contains the non-inventory items.
If you have been billed for your non-inventory item now, but it is actually the last month's expense, then, for your correct bookkeeping enter the invoice date from the last month.
See also: Automatic accounting transactions.