Submitted by Will on May 14, 2014

Q & A with Will English
As a global company offering affordable access to high-quality reproductive health products for women and girls, our client has many facets to their business. They use the QuickBooks Enterprise Solutions V2014 financial software to manage the business accounting. They recently wanted to issue a sales order to a customer for a non-inventory item but they couldn’t assign a lot number to it. They immediately reached out to Will for the solution.

Client: We have created the non-inventory item for one of our items but it will not allow her to assign a lot number to it.  Is there a way to add this?  Also, since this is a non-inventory item we need to also figure out how to issue a sales order to the customer for this product.  As there is no inventory to assign to the sales order, how do we do this?

Will: By default, non-inventory items can’t have lots.  I think you guys are thinking of it as non-inventory since you don’t receive it physically, but that is not how QuickBooks looks at it. If you use an inventory type item, it should solve the problem.

Client: Any suggestion going forward? As it stands now, entering the part as a non-inventory part, I cannot receive it in to issue an invoice to the customer.

Will: Why can’t we enter the item as inventory?  I know that you will never receive it but it is still a form of inventory, just not yours.

Client: I will have to receive the part. I need to receive it in so that I can issue an invoice to the customer.

Will: I meant physically. The problem is I can’t assign lot numbers to non-inventory parts, therefore, let’s make it inventory.

Client: Understood. This will have to be Accounting’s call.  The inventory should not sit in inventory for a long period of time. Maybe we can assign a different asset account to explain to the auditors.