Non-Standard vs Non-Inventoried Products

Acctivate allows you to put “N” Non-standard Items on sales orders and purchase orders. These would be items that you do not stock in inventory and have no need to track in the system. There will be no record of Cost of Goods Sold or record of having the item in inventory – the Product ID will not be saved in Acctivate.

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If you often sell an item that you do not keep in inventory, the recommendation would be to use a Non-Inventoried product. Although with this method you will not create a receipt, it will track the cost associated with the sale of the product. You can use Standard costing on this non-inventoried product in order to track the cost to the sale, and update it each time you sell the product. Non Standard products would generally be used in a one time sale, as they are not saved in the system and cost is not tracked to the sale.

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The difference in the accounting for Non-Inventory and Non-Standard products

Sale of product

Non-Inventoried: Taken care of by entry of the vendor invoice unless using the non-inventoried offset account in Warehouse Setup

Non-Standard: Taken care of by entry of vendor invoice

Purchase of Product

Purchase Invoice for Non-Inventoried Products:  Debit: Cost of Goods Sold, Credit: Accounts Payable

Purchase Invoice for Non-Standard  Products:  Debit: Expense Account entered, Credit: Accounts Payable

For more information, see also:

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Posted in Accounting, Inventory - Last modified on May 23, 2016Matt Allen
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