Creating Non-Stock Items: General Information

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

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

In the following sections, you can find information about the creation and settings of non-stock items.

Learning Objectives

In this chapter, you will learn how to do the following:

Prepare the system for the creation of non-stock items
Create non-stock items

Applicable Scenarios

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

When you are going to sell or purchase goods that you don't want to track in inventory
When 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 pick lists and shipment confirmations. For each non-stock item, you define whether a shipment is required by selecting the Require Shipment check box on the General tab of the Non-Stock Items (IN202000) form. When the check box is selected, you can create a sales invoice only after the shipment is created and confirmed for the sales order of the type that requires shipment in MYOB Advanced.

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 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 have the Inventory Item option selected.

Rules for Closing and Completing Non-Stock Lines

The way the lines of the Non-Stock type are completed and closed depends on the completion rule specified for the applicable non-stock item in the Close PO Line box on the Non-Stock Items (IN202000) form. 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 of the Non-Stock Items form 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 of the Non-Stock Items form 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.

Note: 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.

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. Because the process of configuring UOMs for stock and non-stock item is similar, for details on UOMs, see Stock Item Creation: Units of Measure.