How do I handle freight for non-inventory items best?

I found guides about handling freight-in, shipping etc. costs for inventory items, however, nothing mentioned how to handle it for non-inventory items.
I see one option as to create another non-inventory item pointing to unique expense account. Is this the correct way forward?

The freight-in concept does not apply to non-inventory items, because Manager does not calculate average cost for them. The point of treating freight-in for inventory items in a different way is to include the costs in the cost of goods sold.

Non-inventory items you purchase are simply recorded as expenses. The only reason to define them as non-inventory items is that you purchase them frequently. An example might be copy paper. The paper might be purchased every week, but is not held for sale or production, so it is not considered inventory. The cost of freight-in for non-inventory items is simply included on the purchase transaction (payment or purchase invoice). You can add it to the unit price or separate it as a unique line item posted to a freight expense account if you want to track the shipping expenses separately.

Ah, that’s well explained. Then I might should be using inventory items…

My scenario is that I order items only on request by a customer, i.e. I have a sales order. They are usually drop-shipped directly to the customer so that I do not touch the products at all. That’s why I thought non-inventory items should fit.

I guess, legally I take possession while in transit but this seems to be very nit-picking kind of a point of view, don’t you think.

Anyway, what do you recommend?

The answer depends on the exact terms of your contracts or agreements with your suppliers. Are they selling to you, but shipping to some other address you provide? If so, the items should probably be considered inventory. Or are you acting as a sales agent? In that case, they are not your inventory. You may need to consult a qualified local attorney or accountant for resolution.

I think most businesses in drop-ship situations would treat the items as inventory. You should also carefully consider the impacts of delivery notes and goods receipts for your situation. Read the 3-part series of Guides starting here: https://www.manager.io/guides/11111. I would also create a test business and explore what happens at every stage with representative transactions. Delivery notes and goods receipts will complicate your records, perhaps in ways you don’t want. And once you start, they can’t be easily abandoned.

I have set up an inventory item as SPECIAL ORDER just for such purposes. I just change the description as required whenever using it.