Costing not-for-resale items

Office supplies are an example of not-for-resale items. Not-for-resale items are costed the same way as resale items through Vendor Invoice Center Entry using the Trade processing type, but only if a purchase order is issued for the not-for-resale items. If your company policy requires purchase orders for office supplies, then you must cost these items using the Trade processing type.

If you do not have purchase orders for not-for-resale items, you enter an Invoice transaction type and Expense processing type to expense these items in Vendor Invoice Center Entry.

When you cost a purchase order that has not-for-resale items in Vendor Invoice Center Entry, a GL record is created for the Vendor expense account for the amount of the not-for-resale products and the unmatched trade posting is reduced by that amount. These general ledger records can be viewed or changed in the General Ledger Distribution view.