The system treats all non-stock items as if there is an unlimited quantity of the item available. For this reason the system saves all sales order and shop order lines for non-stock items as fully allocated. As a sales order or shop order line for a non-stock item is saved, the system updates the reserved, total reserved and allocated quantities for the item in the Inventory Master file. This allows demand for the item to be determined.
A nonstock item may not be flagged for special order fulfillment in the sales order entry program. The program that is used to create requisition lines for vendor shipment and special order sales order lines does not process nonstock items.
A nonstock item CAN be flagged for vendor shipment during order entry, but this option is used for a very specific purpose and it is a special case. A nonstock vendor shipment line is used only to allow you to include a charge like shipping or handling on a vendor shipping invoice. If the vendor shipment flag is set to “Y” on a sales order line for a nonstock item, the system uses the flag only to determine where the order line should be invoiced from. A PO requisition is not created for the sales order line for the nonstock item.
If the Vendor Ship flag is set to Y, on a sales order line for a nonstock item, the line will be included in the first vendor shipment invoice that is generated for the sales order (so that you can include a shipping or handling fee on the invoice). If the vendor ship flag for the nonstock line is set to N, the nonstock line will be included with the warehouse or special order lines on the order (i.e. on the picklist that is used to invoice the goods that are shipping from your warehouse).