Non-inventory Purchasing

Hello Experts,
I was wondering what peoples views were on how to best handle non-inventory (i.e. non-item) purchases.
For example, the immediate answer would be to use service invoice type to push the amount directly into the GL account and an item invoice to deal with items.
However, there will arise times when both items and non-items will be on the same invoice.
In order to handle this, is it advisable to create a generic item (i.e. Stationary) for each GL expense account and use item invoices in that way?
Your thoughts would be appreciated.
Regards.

Hi Soyer.....
You are right. It is advisable to create an Item which is purchase or sales item only and not Inventory Item and set the GL account accordingly. In such case you can select the inventory items as well as non inventory items also.
Regards,
Rahul

Similar Messages

  • Inventory and non Inventory

    Difference between inventory purchase and non Inventory purchase and where are you posting

    Dear
    Inventory PO
    The purchase made for inventory i.e., to keep it in stock.
    These are account assignement in the PO is blank or "Q" if valuated for project or "E" for slaes order.
    Non-Inventory PO
    The purchase made for consumption i.e., on making Goods receipt for this PO the material will get consumed for cost center or order.
    The account assignment in PO will be "K" or "F".
    Regards
    Soundar

  • Purchasing - A/P Transaction Processing for Services and Non Inventory Item

    On of the main areas of concern that businesses have is in the area of Purchasing, Goods Receipts and AP Invoices Processing - There is a requirement that businesses have widely referred to as 3-way matching.
    While SAP Business One has this functionality covered quiet well via the following, there is still some need for enhancements so that the application can correctly reflect the AP Accruals:
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    - Ability to perform Goods Receipts for Services.
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    The above transactions serve the 3-way matching quiet well for all purchases however when it comes to accuring for Services that have been provided, the application does not do this. The Goods Receipt transaction processing to acknowledge the service delivery is allowed however the related posting to the allocation account is missing.
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    Hi,
    Once there are transactions, we cannot make existing Inventory type item to Non Inventory type item.
    Check SAP note:937297 which states as follows :
    Symptom
    Changing the status of the Inventory Item checkbox (in Item Master Data) for items with inventory transactions and documents, might lead to inaccuracies in the calculations of inventory value.
    Other terms
    Inventory Item, Non-inventory Item, Item Master Data, Continuous Stock, Perpetual Inventory, Inventory Valuation, 2004, 2005, 2005 A SP01
    Reason and Prerequisites
    Consulting Note
    Solution
    The status of an item (Inventory Item/Non-Inventory item as selected in the Inventory Item checkbox in the Item Master Data window), cannot be changed once an A/P, A/R, or Inventory document is posted for the item.
    Regards,
    Jitin Chawla

  • How to correct journals for non inventory items

    Hi All,
    One of my client by mistake made a non-inventory item as an inventory item and used FIFO valuation.
    Now he has created some 30 purchase invoices, goods receipt PO for it in the last month.
    While doing month end they reconcillation they realized the inventory numbers are bloated and found this problem.
    Now they have cancelled the old item defination and created a new one.
    But the problem is how to correct the journal entries for the what has already been done.
    Problem is that Cost of this item is wrong because it got created as a inventory item and was using FIFO.
    Please suggest a fastest route to correct this problem.
    Regards,
    Divam

    Hi Divam........
    I guess Inventory revaluation is not possible in case of Non Inventory Item. You must take the goods return on GRN basis......
    Regards,
    Rahul

  • Picking non inventory items for delivery

    hello
    Can anyone help us with the following issue :
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    - we cannot create those non-inventory items in inventory as they cannot appear in any stocktake
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    Hi Fabrice,
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  • How to identify Inventory and non inventory items

    Dear all,
    what are the ways to differentiate inventoried and non inventoried items.
    please advise. thanks.
    Thanks and regards
    Udaya

    he means the purchase order item category which can be seen in transaction ME23N.
    You never made clear if you want differentiate in SAP or the physical stock in the warehouse.
    As already explained by another one, in SAP you can procure one material number either to stock or to be expensed immediatly while receiving.
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    In MIGO transaction at item detail in tab WHERE you will see a storage location if the material is to be stored in your warehouse, but you will not see a location if the material is procured directly to a project or cost center. then you see a receipient instead .

  • GR/IR Clearing for Non-Inventory Items in PO

    Hi all,
    Can anybody explain if GR/IR reconciliation can be done for non-inventory items in PO. For example, I've raised a PO for a service and received invoice before the service is delivered (little hypothetical, of course, but incase).
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    Thanks
    durga.

    Hi,
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    Regards

  • Need negative quantity non-inventory items on Credit Memo

    Version: (2007A)
    Description of requirements: (Please provide a detailed description)
    Our customer issues many invoices with a negative quantity line item for a miscellaneous non-inventory item. These non-inventory items are used to reduce the amount of the invoice regarding miscellaneous credits to their customers.  These are not discounts.
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    As an example:
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    Invoice Total $90.00
    In Order to provide the correct credit amount, they have to create a Credit Memo not based on an invoice for line item one, qty one, price 100 u2013 value -100 and an invoice for the non-inventory item for qty one, price 10 -  value 10.00.
    This creates a net credit for the customer of 90.00
    This looks ridiculous to their customers when they see these transactions on their statements, creates extra work for the users and there is no link between the three documents.
    By using inventory items for these miscellaneous credits, they can assign a sales revenue of their choice. They have multiple sales accounts and the GL posting is determined by the item group for the item. By assigning the desired item group to these non-inventory items, they can control which sales account is updated on their marketing documents when using these non-inventory items.
    If they were to use the Freight items, they would need a separate freight setup entry for combination of item group and miscellaneous credit. Because they have so many Item Groups and types of credits, they would need a great many separate Freight Charges to choose from.
    All of the above pertains to all of our customers. This customer has a custom add-on and their marketing documents are all created from custom objects.  They hit a button on the custom sales contract screen and an invoice is created.  When they hit another button on the screen, the selected invoice is credited. They have legally binding contracts for fixed quantities to be shipped, so we decrease the quantity shipped when creating an invoice and decrease the quantity shipped when a credit memo is created. The contract is fulfilled when the exact quantity contracted for has been shipped. Because the credit memo fails, we canu2019t update the custom objectu2019s remaining to be shipped, rendering it inaccurate from that time forward. (reducing the quantity shipped is part of the Credit Memo creation process).Creating Credit Memos and Invoices from the interface fixes the inventory count, customer balance, etc., but we have no way of fixing the sales contractu2019s quantity shipped & remaining to be shipped or linking the contracts to the documents created from the interface.
    Business needs: (Please describe the impact on your business, if the functionality is not realized)
    Examples: (Please describe a typical example, how the functionality should work.)
    Credit Memos should allow negative quantities and line total amounts for non-inventory items, the same way that A/R Invoices do, so that credit memos can be based on invoices that have negative quantity non-inventory line items.
    Current Workaround: (Please describe the workarounds you are using at the moment)
    Please see above
    Proposed solution: (Please suggest how the new functionality should work)
    Credit Memos should allow negative quantities and line total amounts for non-inventory items, the same way that A/R Invoices do.

    Hi Sean......
    System is behaving properly as per its logic. Infact it does same in all the previous or upcoming versions.
    If you have Item Type GRPO for Non Inventory Item it does not create any accounting but you can see the same during AP invoice.
    GRPO for such type is only optional. For further clarification you can discuss this with your CA what he suggests. But i suggest you to raise AP invoice also for getting Account effect. Just see doing this in test DB you get your answer......
    Regards,
    Rahul

  • Credit memo for non inventory item

    Hi MM consulatnats,
    My client need to know the best practices to handle teh credit memo for non inventory item ??
    We have two options like FB65 in FI part where it wont update in PO history.
    In MIRO also we can make credit memo w.r.to PO.
    What they  want to know is if FB65  is the correct way to do this to fully reverse the effect that the receipt and invoicing of the item had on the financial accounts.
    What is the best pracise to adopt ??
    Need your views
    Thanks
    A.Gururajan

    Hi,
    You can use MIRO for credit Memo with ref to PO.
    This will update both PO history as well as your FI accounts/Vendor Balance.
    Thanks & Regards,

  • What are options for applying non-inventory costs to production orders?

    We have a non-inventory costs that need to be assigned to product produced on production orders.  There are two processes -make-to-order and make-to-stock.
    Currently we use activity rates to apply labor and burden costs to our production.  We use separate cost centers where needed to ensure that we have sufficient granularity to our activity rates applied.
    We have a few specific issues where we need to understand the options for applying costs -
    1) We have freight and duty costs related to inbound raw material that we want to assign to our final product.  The amount assigned may be either a specific amount (or a specific amount per model), or a % of the total cost on that production order.
    2) We have material on the production order bill of material that is called out by quantity and we are using discrete backflush, however we have found there are issues with the accuracy of the quantities.  We want to have this product ordered using KANBAN (bin ordering) and have the value relieved from inventory when the bin is issued to production.  The cost on the production order is envisioned to be an average amount for the product - or an average amount by model.
    3) We want to have a portion of cost for production scrap included in the cost of each product produced. (similar to freight and duty).
    In all cases- the amount can change depending on analysis from accounting regarding freight and duty costs (these fluctuate depending on the cost savings we achieve with combined loads and depending on the amount of out of country sourcing), the scrap amount may change periodically depending on the initiatives to reduce scrap on the production floor, etc.
    We currently use three activity types, labor, burden and tooling.  It is my understanding that there is a limitation in SAP that keeps us limited to 6 activity types.
    My questions are:
    Are we limited on activity types? these are an option to apply additional costs, but may not be the best option if we want to change the amount applied based on model or apply as a percentage.
    Are there other options for applying costs that we can explore? I want to be sure we take into account the various options available before we start down a specific path.
    Thank you in advance for your assistance.

    As clarification- we are using standard costing for our raw material.  We currently accumulate the incoming freight in a balance sheet account.  This is treated as part of our inventory.  We have considered using an activity type with a activity added to the BOM to apply the cost to the production order.  Then we could use the secondarly cost element data to book an entry to relieve the freight account on the balance sheet.
    Because we use standard costing- access to see production order variance is critical and must be maintained in any process we select. We also use COPA reporting- so the costing information must be able to flow to COPA for the specific orders/products/serial numbers.
    We are doing make to order (production order / sales order specific combination) but also looking at a make to stock process - so the method to apply costs must take both of these configurations into consideration.
    Rajneesh - you mentioned that I am limited to 6 activities in a work center- but does that mean I can have more than 6 activity types in SAP but only 6 activities in a work center/cost center combination?
    Thank you.

  • Duplicate check for non inventory vendor invoices in Finance

    Hi,
    SAP provides duplicate check for non inventory vendor invoices posted through transactions F-43 and FB01 etc. The field values checked for duplicate invoice include Document date and Reference field.
    I want to know, is there any flexibility of removing Document date from checking criteria?
    This is to facilitate picking more invoices in duplicate check net.
    Regards,
    Vijay

    Dear Vijay
    Yes, you can control this via business transaction events. Please review the below explanation.
    In Rel 4.6, duplicate invoices are checked using function module
    FI_DUPLICATE_INVOICE_CHECK which is called when invoices are posted via trans FB60.  Duplicate invoice checking criteria can be customized using the open FI interface SAMPLE_PROCESS_00001110 (custom function module) starting from Rel 4.6.  Please verify if the open FI interface 00001110 is being used in your system and review duplicate invoice selection criteria via trans BERP. You may wish to omit the document date (BLDAT field from the duplicate invoice check criteria to trigger error msg F5117.  In addition, table BSIP (vendor duplicate documents) may need to be updated.  (see note 114563 for further info).
    Please also check note 537213, and note 31771 for your information.
    If this helps please reward with points.
    Best Regards
    Kesav

  • Changes to non-stock purchase order

    Hi Gurus,
    Is there a report that will show all non-stock purchase orders that have had a
    change in value (either change in cost, quantity, or added lines).  We
    will need to be able to run this for a date range for the changes, by
    plant, and by user (buyer).
    The report would need to show the purchase order, po line number, the
    original value of the line versus the new value of the line, the text of
    the item purchased, the cost center charged, and some how to tell what
    type of change that occurred (change in price, quantity, or added line
    Thanks
    Anusha

    Hi,
    There is no std report fo this,,, a developed report will do the trick
    please refer to code give  in the below link
    [http://www.sap-img.com/mm001.htm]
    hope this helps
    dheeraj

  • Non inventory item associated to gl account

    is there anyway i can create an non-inventory item and attach to a particular gl account.

    Hi.......
    GL may hit only in case of Final Invoice as it is non inventory item Accounting won't happen at Inventory movement stage.....
    Regards,
    Rahul

  • Commitment for inventory purchase

    Hello experts,
    our customer it is requesting us to manage commitment not only with direct consumption purchases but also with inventory purcahses. I found that the inventory account can be set as "Cost Element Category" = 90 Statistical cost element for balance sheet.
    It seems that with this category I can manage a statiscal cost for balance accounts (such as the inventory account). But the thing is that in order to get this statistical cost I need to assign an account assingment category and a cost allocation object in the purchase order so that  I can allocat the statistical cost in the order (as this is the requirement from the customer).
    My question is, for sure this is something I can get using account assignment category "Q" and projects. But is it possible to achieve the same result by using "F" and orders??
    In thi end, the requirement from the customer is to manage commitment for inventory purchases.
    Best regards

    Thank you for the information.
    For anyone that has a problem creating balance sheet cost elements in the future please refer to SAP Note 75980.  
    This Note provides guidance on error KS036 that stops a cost element from being created from a balance sheet account.    The Note gives steps to remove error message KI098 which indirectly deactivates message KS036 to allow a cost element to be created.

  • Need a query to update the inventory item to non inventory item

    Dear all,
            I need a query which should update the Inventory to Non - Inventory Item.

    Hi,
    You need to freeze the inventory by click inactive tick box. This will prevent users to use the inventory.
    The inventory posting lists will still exists as an inventory's transaction history for auditor if the inventory have had transactions.
    To empty the warehouse, just perform good issue and use inventory decrease account. After the warehouse has been empty, create similar inventory item by right click --> select duplicate. Create new item code and in the tab remarks, just write this non inventory item was ever inventory item with code e.g. xxxx.
    if you want to recover the stock, just create new item and then receive the stock into warehouse using Good receipt. use the same account code with account code used in the good issue.
    JimM
    PS.
    Do not use sql statement to update B1 database. No SAP support provided afterwards.

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