Item Type - In deep

Option

Typical Purpose

Example

Inventory Value Zero

Inventory

A physical unit, such as a bicycle, for full business support.

The item needs to calculate is the inventory count

Default NO

Non-Inventory

A physical unit, such as a bolt, for limited business support, for example, because the item is only used internally and has a low cost.

Item is a kind of service that may not physically countable (e.g. Delivery service, repairing)

This option is mostly used if you want to record item purchases and capture it as an expense without affecting inventory.

A good example of this item type is expense items such as office supplies.

This Item Type cannot be used as Assembly Output and Production Output.

Set YES manually

Service

A labor time unit, such as a consultancy hour, for limited business support.

The item may not be suitable for inventory count (e.g. Plastic bags - which can be ignored their underlying value)

These are non-physical items which often represents a time unit such as labor time.

There are only limited transaction types for Service items that include; Sales, Purchasing, and Job Consumption.

Set YES manually

Item Type	Sales	Purchasing	Job Consumption	Service Consumption	Assembly Consumption	Production Consumption	Assembly Output	Production Output	Location Transfer	Physical Counting	Inventory Revaluation	Inventory Costing	Item Tracking	Reservation	Warehousing	Planning
Inventory	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
Non-Inventory	Yes	Yes	Yes	Yes	Yes	Yes	No	No	No	No	No	No	No	No	No	No
Service	Yes	Yes	Yes	No	No	No	No	No	No	No	No	No	No	No	No	No