In a job, I created a billable line with Item No. 1000 with Quantity 1 and Unit Price 10. Then I added this line to a sales invoice and posted the sales invoice. This created one entry in the Job Ledger and one entry in the Customer Ledger (... and also the G/L). Since it is a Non-Inventory Item, as expected, there is no entry in the Item Ledger.
Now, I added one line with the Item No. 1000 in the Job Journal, with Quantity 1 and Unit Price 10 and posted the line. This created one entry in the Job Ledger and one entry in the Item Ledger with entry type Negative Adjmt.
Why is the latter posted in the Item Ledger even if it is a Non-Inventory Item?
It has less to do with the Type of Item and more to do with how Jobs functions.
When you consume an Item to a Job via the Job Journal, you create an Item Ledger Entry and a Job Ledger Entry. If you then bill for that material cost via the Job (Sales Invoice), there is no additional Item Ledger Entry created because the Item was already consumed to the Job. This ensures you aren't overconsuming the Item.
The same holds true for non-Inventory Items. The consumption to the Job will create the Item Ledger Entry. If you then bill for that "material" cost via the Job, no additional Item Ledger will be recorded.
Hope this helps clarify the situation. If so, please mark it as a Verified Answer to help other forum Users.
Best Regards,
Ben Baxter
Accent Software Inc
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