What Are Inventory Items Non-inventory Items And Services Provide Examples

ERPAG five.one

Non-inventory production

one. Introduction

A not-inventory product is a blazon of product that is procured, sold, consumed in production but we do not go on inventories for it. its current quantity does not affair to united states of america.

Usually, these are low-value goods whose accurate monitoring would not significantly affect business organisation results.

The about common examples are nuts and bolts, packaging, paper-thin boxes, oils, lubricants, etc.
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2. Setup

These items are open up as a special particular blazon in the Products and services list.

The setting, in item, does not deviate from the setting of the regular product.

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iii. Not-inventory product behavior

The beliefs of this type is exactly the same as the classic production. You can receive, pack, load material, transfer, etc.

Options that cannot be done are tied straight to stock tracking.

Some of them are:

Stock Adjustment
Stocktaking
Fulfillment (backorder)
Stock/inventory card
Serial / Lot number
Output particular (work order)
On hand, Reserved, Below minimum, Committed, Awaiting quantity

NOTE:
When checking the quantity status for a Sales order (or work order), for not-inventory items it'southward assumed that the required quantity is bachelor.

For example. if we only have non-inventory items in the Sales club, then the status will be "available quantity", ie ready for packaging.

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4. Bill of Materials and Kitting

The not-inventory item may exist role of the Kit item or Bill of materials.

Setup in KIT:

Sales Order Behavior:

Bill of materials look:

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v. Cost / revenue – internal ERPAG bookkeeping

If you are using internal ERPAG accounting nosotros need to explain how costs are formed.

Since the non-inventory production has no inventory tracking, therefore it doesn't take a stock card. Cost of goods sold (COGS) cannot be formed by either the Weighted Average or the FIFO method (https://blog.erpag.com/2019/01/fifo-vs-weighted-boilerplate-inventory.html) at the sales indicate.

In the example of non-inventory products, COGS is filled at the time of purchase, while in sales we only have revenue.

Procurement – Purchase club:

And the related journal voucher:

Sales – Sales social club

And the related journal voucher:

As we have mentioned, items of this type are usually of low value, so the concern result will not be afflicted. If all that is caused during the year is likewise sold (or spent) there will be no divergence.
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6. Integration with QuickBooks Online

And for this kind of detail integration with QuickBooks Online is fully supported.

An appropriate business relationship must be specified in ERPAG.

More information nearly integration can exist plant at the following link: https://blog.erpag.com/2018/09/quickbooks-online-erpag-manufacturing.html
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7. Integration with XERO

XERO as accounting software also supports non-inventory products.

In Xero, it'southward enough to disable "I track item".

In ERPAG you need to set adequate accounts.

More information on XERO integration can be constitute on our blog: https://blog.erpag.com/2019/08/xero.html
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2019. ERPAG Inc