Print Email

What is Non-Inventory Item?

Non-Inventory Item - is a type of product that is purchased or sold but whose quantity is not tracked. This type of items are purchased for company use or custom product purchased for Projects.

Non-Inventory Items appear in the customer process (on Sales Quotes, Sales Orders, Sales Invoices, or customer Credit Notes). If you select the Is purchased from supplier check box on the Non-Inventory Item Add form, non-inventory items appear in the supplier process (on Purchase Orders, Purchase Invoices, or supplier Credit Notes).

Use Non-Inventory Items to track merchandise that:

  • You sell but do not purchase.
  • You purchase but do not resell.
  • You purchase and resell but do not track as inventory.

What's the difference between Inventory and Non-Inventory Items?

Inventory Items are items that you buy and then stock for a while before selling. kpi.com Accounting and Finance tracks the quantity on hand, the current stock value (transaction value), and the FIFO method of inventory valuation. It also tracks some accounting information like "cost of goods sold" for inventory items that you have sold.

Non-inventory items are items that you purchase (usually on behalf of a specific customer) and then immediately sell or install, or items that you sell without ever buying. For non-inventory items, kpi.com Accounting and Finance will only track how much you have spent or taken in. Some people use non-inventory items even for items that they stock because they prefer a simpler approach—even though it gives them less information.

See also

Help documents