Non-Stock Item (NSI)

A Non-Stock Item (NSI) is an item that is bought or sold without maintaining inventory quantity records. These items are typically used for one-off purchases, services, or internal consumption where stock tracking is not required.

Common uses for Non-Stock Items include:

•Reusing the same item code for different once-off or ad-hoc purchases

•Selling services or goods that do not need inventory tracking

•Internal use items purchased on a supplier invoice

How to Set Up a Non-Stock Item

1. Go to the Stock Module and create a new item (or edit an existing one).

2. Switch to the Additional Info tab.

3. Tick the checkbox “Non-Stock Item”.

Once enabled, the system will:

•Stop tracking inventory quantities for this item.

•Prompt you to manually enter the Cost Price every time the item is used on a:

•Goods Received Note (GRN)

•Invoice

•Job Card

•Quote

This allows for the cost to be captured at the time of the transaction, which is essential for accurate profit calculations and reporting. The cost price entered is then used by the system for the Stock Turnover report and to calculate profit margins.

Processing a Goods Receive Note (GRN) for Non-Stock Items

When you process a GRN for a Non-Stock Item, he system automatically creates the following accounting entry:

Selling Non-Stock Items

Method 1: Through Quote or Job Card (Recommended)

This is the preferred method because you can capture the correct cost price at the time of quoting or job creation.

•On the Quote or Job Card, the Cost Price column becomes editable for Non-Stock Items.

•Enter the expected cost price.

•The system will use this cost for Stock Turnover reporting and profit margin calculations.

Accounting entries when the item is sold:

Note: The two Cost of Sales entries cancel each other out. This is correct behaviour because the cost was already recorded when the GRN was processed.

Method 2: Through the POS Module

If you add a NSI item directly to a POS invoice:

•The system will display a prompt asking you to enter the Cost Price.

•You must enter the correct cost at that moment.

Important Timing Note:

Because the cost of sales is recorded at the time of the GRN, there can be a mismatch if the GRN and the sales invoice are processed in different months.

•Gross profit may appear lower in the month the GRN was processed.

•Gross profit may appear higher in the month the invoice is processed.

Recommendation: Always try to process the GRN and the related sales invoice in the same accounting month to ensure accurate financial reporting and alignment between the Stock Turnover Report and the Income Statement.

Cost Price Usage

The Cost Price you enter on a Quote, Job Card, or Invoice is only used for:

•Stock Turnover Report

•Profit margin analysis

Example: Selling Price (Turnover:) $100 --- Cost Price: $20 --- Gross Profit: $80

Processing a Mixed Supplier Invoice (Items for Sale + Internal Use)

If one supplier invoice contains both stock items for resale and items for internal use:

1. Create a dedicated Stock Group for Internal Use

•Go to Stock Groups.

•Create a new group (e.g., “Internal Use” or “Workshop Consumables”).

•Change the Cost Account to the appropriate General Ledger account (e.g., “Workshop Usage” or “Repairs & Maintenance”).

2. Alternative quick method:

On the GRN itself, use the GL Stock Account column to override the default account for specific lines.

Tip: Ensure the target GL account (e.g., Workshop Usage) already exists in your General Ledger.

Non-Stock Item Default Settings

You can set default behaviour for Non-Stock Items by going to:

Stock Options > General

Here you can configure your preferred defaults for Non-Stock Items.

Summary of Key Benefits

•Simple handling of services and one-off items

•Accurate profit tracking without unnecessary inventory records

•Flexible cost capture at the point of transaction

•Proper integration with financial reporting