Making Non-Inventory items

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Posted on by Dee Bee

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When I make a non-inventory (custom) item, I know what costs I incurred to make it (labor, materials and allocation of overhead) and I can simply put that number into the 'cost' field of the order for the NI Item.

While that accurately captures the item costs and will reflect the GP properly (Sales - CoGS), my raw material inventory account will be out because I used material which I stock to make a custom item that I don't stock.

I can do an adjustment to capture the material cost, and offset it into the 'custom item CoGS' account, but I can't adjust my labour and overhead items, as they're not 'sales inventory' items, and the labour and overhead absorption accounts will be off for the same reasons.

The only other option that I can see is to create inventory records for every (non-)inventory product that we make, even in the case where we make and sell it once, and then we're done.

Is there a better way?

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Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

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Have a look at the assembly transaction in the Inventory module. I wrote an article about it a few years ago that can be found here - msdynamicsworld.com/.../dynamics-gp-inventory-bom-assembly-transaction-entry. It might be a solution for you.

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Hi Dee.

How are you handling your materials?

Are they inventoried items or just an amount on your Balance Sheet.

If they are inventoried I assume you are adjusting out your inventory and this is hitting your COGS also.

If it is only a balance sheet account you can try setting up a kit template with three service items, one for inventory, one for labour and one for OH. Each can have a carrying cost of 1 dollar and their own GL account.

When selling the item open the kit and with the quantity you can attribute the amount for each type that you want to allocate from the total cost.

Hope this helps

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Dee Bee 815 on at

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Hi Sagi_88 & Frank:

We inventory our materials, and our labor and OH are 'service' items. I didn't mention, but 99% of our manufacturing is done with BOM-Assembly-AssemblyPost so the cost of the item is captured properly from teh cost of the materials, labor and OH. It's the occassional 'custom' job that we get that we've currently modelled using the same method as our FG, but that means going through all the administrative setup of an item (location, currency, bin, accounts, BOM, etc, etc.) for any custom job item, and this often (sometimes) happens before we even know if we have the business (!).

I was originally looking at the 'Non-Inventory" items as a solution, but I can't seem to affect the cost of a NI-item in teh 'normal' way.

I will have a look at the paper you suggest, Frank, but it sounds like it may be what we're already doing, (unless you speak specifically to assembly of NI items - I havne't yet seen it)

Thanks,

Dee

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Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

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Dee, if you're already using the BOM Assembly transaction, then reading the paper may be redundant. There's no way around setting up an item to do what you're trying to do. The 'non-inventory' item types just don't provide the options you're looking for.

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Dan Liebl 7,320 on at

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You could make the 'custom' item lot numbered and then use the sales order number of the item as the lot. That will make it easy to associate the correct item/lot to the corresponding sales order. You can use the same custom item number over and over. The same could be done with raw materials if those are also unique.

Dan Liebl, CMA CPIM

OTT,Inc

dliebl@OTT-inc.com

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A.Prasanna 8,223 on at

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Is there a method to handle Non-Inventory Items in AX2009 ?.As a Example ,just imagine we have to buy stationery and have to give a PO to Supplier . How this Scenario Handle with AX2009

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