This has been previously discussed by @Mabaega Sales Order for non Inventory Item, Qty to deliver and Delivery Status if its possible to track Non-inventory order to the extent of Orders only it will be great.(I think it was like this a year back).
Our use case is we issue raw materials to Sub-contractors for manufacturing. So a purchase order is created when raw material is delivered. Then we we received the Finish product not at once but it takes many deliveries. So whenever we get delivery a production order is created for that qty. The job done by the sub-contractor is a non-inventory item as its a service. We need to track what we received and whats on order.
Or is there any other method we can handle the subcontract manufacturing?
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If you want to be tracking quantity, then those items need to be created as “Inventory Items”
But you can set average cost for these items to be zero. So they will have no impact on asset account Inventory on hand (just like non-inventory items)
For that i have to use the new periodic revaluation method, right? As it wont be possible with the automatic revaluation.
That’s correct.
Is there a reason why you are reluctant to use periodic revaluation of average costs?
Personally, I prefer the automatic one as it can give me almost correct P&L at any period (Even for non-standard periods in cases where price fluctuation is more) but for periodic one you have to keep specific periods.
Not much of an issue eventually ill start using the periodic revaluation once it reaches maturity and those minor bugs are resolved.