As mentioned earlier, a vendor ship sales order line can be input for a non stock inventory item. This option allows you to add charges to a vendor shipment invoice for things like handling fees, freight or engineering services. Since a non – stock item is considered to be available at all times by the system, and since the on hand quantity of these items is not tracked by the system, the system does not prompt you to order or to re-order non-stock items. This is true regardless of the setting of the vendor shipment flag.
If a sales order line is entered for a non-stock item and it is flagged as a vendor shipment, the system will not create a requisition for the order line. The order line will be saved as open and fully allocated. When a vendor ship nonstock line is entered, the vendor ship flag in the order line is used to tell the system that the sales order line should be invoiced with the vendor shipment lines from the order. The nonstock vendor ship line is closed the first time that any vendor shipment lines on the order are invoiced (regardless of the invoicing method being used).