Noninventoriable Items

If you need to track an item’s cost but not its quantities, set it up a noninventoirable item. Noninventoriable items typically include labor, nonstock items such as service parts, and hard-to-track items such as valve stems.

To classify an item as inventoriable, type the letter N in the Inventory (Y/N) field on the Inventory Maintenance screen. When you set up a noninventoriable item, you also need to decide the following:

If you want to post the item’s cost to general ledger at point of sale (Option-Cost Method).
If you want to post the item’s cost to the general ledger when you buy it from a vendor (Expense Method).
If you want to post the item’s cost to the general ledger when it’s sold (Relief-Percent Method).

For more information, see Noninventoriable Costing Methods.