Nonstock Item Processing
Nonstock items are inventory items that are NOT tracked by the perpetual inventory system. The system treats non-stock items as if they are always available for sale or use. Sales Order and Shop Order lines for non-stock items are always saved as fully allocated. The on hand quantity of a nonstock item is always 0 due to the fact that the system never adjusts the on hand quantity for a nonstock item during processing.
Since non-stock items normally have an on hand quantity of zero and are always treated as if an unlimited quantity of the item is available, they are NOT included on the Purchasing Recommendations report produced by the system. If a nonstock item needs to be ordered from a vendor, the purchase order for the item must be created manually in the Purchase Order Entry program.
Nonstock items can be used to bill for items such as labor, service and repair charges, price adjustments, finance charges, or restocking fees. They can also be used to handle consumable items (like screws, grease, oil, documents that need to be included in shipments to the customer) that have a small value – or that are purchased in bulk. Nonstock items are also sometimes used to handle Warranty and other sales where physical product is not being moved when a sale is made
Non stock items are not included on the Inventory, WIP, or Pending Valuation reports produced by the system (the items have 0 quantity and value). The value of any nonstock items is also not included in the Inventory Control Account balance in the general ledger. Non stock items are expensed when purchased. Non-stock items are normally service or labor items that do not physically exist, or they are consumable items (i.e. production supplies such as screws, literature, etc) that are reordered manually as required.
.Nonstock items are mentioned here mainly because they behave differently than stocking items – especially when it comes to order processing.
Nonstock items are treated as if they are always available and a sales order line for a nonstock item should fully allocate when it is entered.
Order Lines for nonstock items can only be processed using the warehouse shipment and vendor shipment processing options.
A nonstock will fully allocate when a warehouse shipment line is placed for it, so it will normally be available for order completion immediately. It should output on a picklist if the order is not on hold and if the other order lines are allocated (based on the partial flag).
A sales order line for a nonstock item can be flagged as a Vendor shipment line or as a normal (ie warehouse) line. It may not be flagged as Special. If a sales order for a nonstock item is entered as a vendor shipment, the system will NOT create a po requisition for it (we don’t track nonstock items so don’t need to place pos for them). The vendor ship flag on a nonstock sales order line is used merely to indicate which portion of the order (the vendor ship lines or the warehouse lines), the nonstock item should be invoiced with. This option allows you to add an item (like the shipping fee from the vendor), to the customer invoice for the shipment.
More:
Nonstock Items - Sales Order Entry
Nonstock Items - PO and PO Requisition Creation