Non-Inventory items are goods or materials that are not kept in stock or counted like inventory.

This means that items of this type are not stored in the warehouse, are not subject to stock checks, and are not included in the inventory management system.

Examples of Non-Inventory items include

Services, such as consulting, repairs, or training
Consumable supplies, such as stationery, office equipment, or raw materials used up immediately
Specially ordered goods, such as items ordered for a specific project, or items custom-made to a customer’s order

Non-Inventory items are usually expensed directly to the relevant account or project, without having to be managed or recorded as stock in the same system as inventory.

An ERP (Enterprise Resource Planning) system is capable of managing and recording Non-Inventory items. Generally, an ERP has modules related to inventory management and purchasing/selling, which can be configured to support recording and tracking Non-Inventory items efficiently. This offers the following advantages.

Recording expenses directly

An ERP lets you record expenses related to Non-Inventory items directly in the appropriate account, which helps track expenses and manage budgets accurately.

Project tracking

In cases where a Non-Inventory item is used in a specific project, the ERP can track the spending and resource usage on that project in detail.

Managing purchasing

An ERP can help manage the purchasing of Non-Inventory items by creating purchase orders, checking order status, and recording goods receipt when items arrive.

Generating reports

An ERP can generate reports related to spending on Non-Inventory items, such as expense reports and project resource-usage reports.

Integration with other systems

An ERP can integrate with other systems in the organisation, such as accounting, finance, and human resource management, so that information about Non-Inventory items is recorded and tracked across every relevant department.

A good ERP system can help make managing Non-Inventory items more efficient, enabling the organisation to control expenses and resources effectively.

ERP and recording Non-Inventory items