Item type

An item type is a classification for items that indicates how you order and stock a particular item at your company. Every item that you purchase from a vendor has an item type. There are four item types:

  • Inventory (I-type items)

  • Non-stock (N-type items)

  • Special orders (X-type items)

  • Services (S-type items)

Inventory items

Inventory items are the items that you purchase and stock on a regular basis. You can use the inventory item type to track cost and quantity. In order for an item to be an Inventory item, the item must exist on both the item master file and the item location file.

Non-stock items

Non-stock items are materials that you order regularly but do not track for cost and quantity. Although cost and quantity are not tracked, the items must appear on the item master record.

Note: You may want to add non-stock items at the item location (for example, for tax code purposes).

Special order items

Note: If you anticipate that an item may be ordered more than once, you can enter it as a non-stock item. By doing this, you can search for the item number on the item master record.

Special order items are materials that your company purchases on a one-time only basis. Special order items cannot be on the item master record.

Services

Service items are non-tangible service requests, such as carpet cleaning or building repair. Service items cannot be on the item master record and are not received.

Example of item type usage

A hardware superstore buys and sells large quantities of hammers. They have defined the hammers as inventory items in order to track inventory quantities and costs.

The hardware superstore does not buy or sell ice picks as often as hammers, so ice picks are set up as a non-stock item. They are not tracked for cost and quantity.

All computers are classified as special order items because they are purchased infrequently.

Copy machine repair requires that the superstore hire a repairman. This order is classified as a service item.

You can use the Project Accounting application to track activities for inventory type items upon receipt or issue of the items in the Inventory Control application. Activities are not attached to inventory accounts. For more information about activity tracking, see the Project Accounting User Guide.