Non-Inventory Item – is a type of product that is purchased or sold but whose quantity is not tracked. This type of items are purchased for company's own in-house use or they may be custom products purchased for Projects. Usually, the non inventory items are low priced and bought in bulk. Basically, a non-inventory item would include the following types of items - 

Examples of non-inventory items include:

1. items purchased for a specific job and then quickly sold or invoiced to a customer
2. items that your organization sells but does not purchase, including Bill of Material (BOM) items
3. items that your organization purchases but does not resell, including office supplies
4. items that your organization purchases and resells but does not track in inventory.

Any and all the items that you use in your business (tools, equipment, supplies, etc.) to make your products saleable are considered non-inventory.

Non-Inventory Items appear in Purchase processes (on Purchase Orders, GRC and Purchase Invoice etc.).