Back to D220: Non-Stock and Service Items OrderMgmt

Lesson 1: Creating Non-Stock Items

This lesson describes what a non-stock item in Acumatica ERP is and how you create it. You will learn which settings of non-stock items you need to specify to sell and purchase these items, and how the item settings aﬀect sales orders and purchase orders. You will explore item settings as you perform an activity in which you create a non-stock item that represents a physical entity.

Non-Stock Items: General Information

Non-stock items may be physical entities for which you do not need to track quantities in a warehouse or they may be products that consist of no physical entity and thus cannot be stocked in warehouses (as with services). In Acumatica ERP, you create non-stock items by using the Non-Stock Items (IN202000) form. Acumatica ERP supports the following types of non-stock items:

Non-Stock Item: A general type of non-stock item usually bought for internal needs or for use in sales but not to be sold separately
Service: A non-stock item to designate service fees
Labor: A non-stock item mostly used as a source of general ledger accounts for recording sales of labor
Charge: A non-stock item that represents specific type of charge

Expense: A non-stock item that represents specific type of expense

        This lesson focuses on non-stock items that represent physical entities. Thus, in the rest of the lesson,
        non-stock item refers to this kind of non-stock item. To learn more about non-stock items representing
        services, see Service Items: General Information.

Learning Objectives

In this lesson, you will do the following:

Become familiar with the settings of a non-stock item that represents a physical entity
Understand the non-stock item settings that aﬀect the processing of orders that include the item
Create a non-stock item

Applicable Scenarios

When you are initially configuring entities and settings in Acumatica ERP, you may need to create a non-stock item in the following cases:

You are going to sell or purchase goods that you do not want to track in inventory.
You are going to drop-ship goods.

Non-Stock Items in Sales Orders Although non-stock items are not tracked in inventory, you may want to process them through shipment, so that these items will be listed in shipment confirmations and pick lists. You can include a non-stock item in a shipment only if the Require Shipment check box is selected on the General tab of the Non-Stock Items (IN202000) form for this item. When the item with the check box selected is included in a sales order on the Sales Orders (SO301000) form, you can create a shipment only if the order type is used for processing shipments. Lesson 1: Creating Non-Stock Items | 11

          Shipments can be processed for sales orders of a type if the Process Shipments check box is selected
          on the Order Types (SO201000) form.

Aer the shipment has been created and confirmed, you can create a sales invoice for this order.

Non-Stock Items in Purchase Orders For each non-stock item, you define whether a purchase receipt is required when the item is included in a purchase order by selecting or clearing the Require Receipt check box on the General tab of the Non-Stock Items (IN202000) form. In a purchase order line on the Purchase Orders (PO301000) form, when you select a non-stock item that requires a receipt, the system inserts Non-Stock as the line type. When you create a purchase receipt for the purchase order, the system copies all Non-Stock lines to the purchase receipt.

Posting Accounts for Non-Stock Lines For the Non-Stock lines on the Purchase Orders (PO301000) form, in the Account column, the system inserts the Expense account defined by the Use COGS/Expense Account From setting of the posting class specified on the Posting Classes (IN206000) form.

If the Subaccounts feature is enabled in your system, in the Sub. column of the Purchase Orders form, the system also inserts the subaccount, which is composed as defined by the rule in the Combine Expense Sub. From box on the General tab of the Accounts Payable Preferences (AP101000) form. If the subaccount mask associated with the non-stock item—that is, I— is selected in the Combine Expense Sub. From box on the Accounts Payable Preferences form, the subaccount is composed according to the rule which is specified in the Use COGS/Expense Account From box on the Posting Classes form for the posting class of the non- stock item. Accounts and subaccounts are used for processing Non-Stock lines as follows:

When an inventory receipt linked to the purchase receipt is released, the Expense account (with the Expense subaccount) is debited for the line amount and the PO Accrual account (with the PO Accrual subaccount) is credited for the same amount.
When a bill is released for the purchase receipt, the PO Accrual account (with the PO Accrual subaccount) is debited for the line amount and the Accounts Payable account (with the Accounts Payable subaccount, if applicable) is credited for the same amount. The PO Accrual account to be used for receipt-related transactions is defined by the posting class of the item on the Posting Classes form; the default account assigned to the item on the GL Accounts tab of the Non-Stock Items (IN202000) form will be used if the Use PO Accrual Account From setting for the posting class has the Inventory Item option selected.

Units of Measure for Non-Stock Items If the Multiple Units of Measure feature is enabled on the Enable/Disable Features (CS100000) form, for each non- stock item, you can select the units of measure (UOMs) used as base, sales, and purchase units for the item and specify conversion rules for them and for other UOMs used for the item. If the feature is disabled, only base units can be specified. You can select global UOMs or enter new UOMs on the fly. Every conversion rule is specified with respect to the UOM selected as the item’s base unit. For details on UOMs, see Stock Items: Units of Measure. (Stock and non-stock items are configured similarly.) Lesson 1: Creating Non-Stock Items | 12

Non-Stock Items: Rules of Line Completion and Closure

Lines of the Non-Stock type on the Details tab of the Non-Stock Items (IN202000) form are completed and closed based on the completion rule specified for the applicable non-stock item in the Close PO Line box. The system determines if a line of the Non-Stock type should be closed and completed by using the following rules:

If By Quantity is selected in the Close PO Line box for the item, the purchase order line is considered completed and closed (that is, the Closed check box is selected for the line of the purchase order) if the sum of the received quantity for the released purchase receipts prepared for the line is greater than or equal to the following: The quantity of the purchase order line * (Complete On (%)/100). The value of the Complete On (%) is defined for each line of the purchase order.
If By Amount is selected in the Close PO Line box for the item, the purchase order line is automatically considered completed and closed (that is, the Completed and Closed check boxes are selected for the line of the purchase order), when the amount of all the AP bills for that line is greater than or equal to the amount of the line. Regardless of the option selected in the Close PO Line box, a line of the Non-Stock type is also considered completed on release of the purchase receipt prepared for the line if the you have selected the Completed check box manually in the non-stock line on the Details tab of the Purchase Orders (PO301000) form. If you process the lines of a purchase order partially, multiple related purchase receipts and AP bills can be prepared for a single purchase order. The system determines which purchase order lines should be added to the prepared purchase receipt or AP bill depending on the state of the Completed and Closed check boxes in each line, as follows:
Completed purchase order lines are not added to the purchase receipt corresponding to the purchase order.
Closed lines are added to neither purchase receipts nor AP bills corresponding to the purchase order. If all purchase order lines have the Completed check box selected, and at least one line still has the Closed check box cleared, the purchase order is assigned the Completed status. If all purchase order lines have the Completed and Closed check boxes selected, the purchase order is assigned the Closed status.
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         You cannot delete a non-stock item from the system if there are any complete or incomplete
         transactions with the item or any unreleased documents that include this item.
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Non-Stock Items: Implementation Activity

The following implementation activity will walk you through the process of creating a non-stock item.

Story

Suppose that the SweetLife Fruits & Jams company is holding a promotion in which customers who buy a certain quantity of fruits in the SweetLife Store also receive a teddy bear toy. The company needs to buy a certain number of these toys from a manufacturer. The promotion is temporary, and the SweetLife Store does not need to track the quantity of distributed toys; thus, the teddy bear will be registered in the system as a non-stock item. Acting as a SweetLife sales and purchasing manager, you need to create the new non-stock item and specify the needed settings for it. Lesson 1: Creating Non-Stock Items | 13

Process Overview

In this activity, you will create a non-stock item on the Non-Stock Items (IN202000) form, specify the needed settings and save the created non-stock item.

System Preparation

Before you start creating the non-stock item, launch the Acumatica ERP website with the U100 dataset preloaded, and sign in to the system as a sales and purchasing manager. You should sign in by using the wiley username and the 123 password.

Step: Creating a Non-Stock Item To create a non-stock item, do the following:

On the Non-Stock Items (IN202000) form, add a new record.
In the Summary area, specify the following settings:

Inventory ID: TEDDYBEAR
Description: Teddy Bear toys

On the General tab, specify the following settings for the item:

Type: Non-Stock Item
Posting Class: NONSTOCK - Non-Stock Items
Tax Category: EXEMPT
Require Receipt: Selected You select this check box because you want the receipt of this item to be recorded.
Require Shipment: Cleared You clear this check box because customers will receive the teddy bear promotional item only in the SweetLife Store.
Close PO Line: By Quantity With this option selected, a purchase order line for this item is completed and closed based on the line quantity when the receipt or bill is released. You select this option to make sure that the vendor provides the appropriate quantity of the item.

In the Unit of Measure section of the General tab, specify the following settings:

Base Unit: EA
Sales Unit: EA
Purchase Unit: EA

On the GL Accounts tab, in the Expense Account box, select the 60000 - Purchase Expense account.
On the form toolbar, click Save.
You have created the non-stock item for the promotional teddy bear. Lesson 2: Creating Service Items | 14