I am a puzzled at the behavior of non-inventory items, please help me.
We are a manufacturing company and we are using the production order module for production of items already created as an inventory item. Through production order, we create production of finished item (created as inventory item) by inputting the required “bills of material”. Everything is working smoothly here.
However, we have trading business too and we need to sell and buy certain items to the same customers. So we decided to use the option of non-inventory module to keep those items as separate from our usual inventory items list so to track profit of production and trading separate. With this in mind, I proceeded as below.
I created a non-inventory item and ticked the box of “this item can be purchased” & “this item can be sold” then selected same account (which I created in “Income group”) for the purchase and sale amount. The purpose of same account was to track the difference between buying and selling amount would reflect in balance as negative & positive figures (in other words profit and loss). The system is working fine to achieve my desired purpose but I am confused with the behavior of non-inventory item as below.
I purchased a non-inventory item qty 100pcs through purchase Invoice and received that quantity by “good receipt” into a certain inventory location. Then, delivered 50pcs through “Delivery Note” to a certain customer but did not make a “sale invoice”. It was observed that, in the “customer” module, the item was not shown in “qty to invoice” column as in case with “inventory items”. In fact, this transaction was not reflected in the customer module. Then I deleted the Delivery Note.
Next, likewise, I sold 50 pcs through Sales Invoice to a certain customer but did not create a “delivery note”. It was observed that, in the “customer” module, the item was not shown in “qty to deliver” column as in case with “inventory items”. In fact, in this case too, this transaction was not reflected in the customer module.
Then, as with “inventory item”, I delivered through delivery note the above Invoice product thereby completing the required transaction of both delivery & Invoicing. Yet, this transaction was not reflected in the customer module.
I am confused how this non-inventory item can work and if I am using it in a wrong or improper way. So, I have below question:
EXAMPLE: If we use delivery note (for delivery) but not make invoice. Since, it will not be shown in the customer module as “qty to invoice” how am I supposed to know this without an alert in the customer module like in case with inventory item
EXAMPLE: If we use sale invoice (for sale) but not make delivery note. Since, it will not be shown in the customer module as “qty to delivery” how am I supposed to know this without an alert in the customer module like in case with inventory item
EXAMPLE: I made purchase invoice and received the goods by “goods receipt” into a certain Inventory location, that location doesn’t show anything.
In the “REPORT” by sales invoice totals by items, the non-inventory is shown but when i click on the amount, it takes me to the relative invoice which, confusingly, show the sales quantity as negative.
I need your help to let me know if
- I am using the non inventory module in wrong way
- how can the non-inventory item act in same way like inventory item in customer module.
- As you can see above, I purchased 100 pce (using purchase invoice & goods receipt) and sold 50 pcs (using sales invoice & delivery note) where & how can I see the balance stock quantity.
If I use same Delivery Note and same Sales Invoice for both non-inventory & inventory items for transaction to the same customer, is there any possibility of mistake/miscalculation in computation of Profit & Loss Accounts or any error in reports
Thanks a lot