Purchasing for Non-Inventory

The company might purchase goods, materials, or services that are used internally or are subsequently charged to outside parties. Purchases might apply to:

• Jobs.

• Projects.

• Internal consumption.

• Repair and maintenance.

• Parts chargeable on a work order.

You use the purchasing for non-inventory method to charge purchases against general ledger account numbers. Each account number can represent a job or project. This method accommodates nonstock, and services and expenditures based environments.

You can also use the purchasing for non-inventory method to purchase items that exist in the JD Edwards EnterpriseOne Inventory Management system. The JD Edwards EnterpriseOne Procurement system validates item numbers and retrieves item descriptions and costs from the JD Edwards EnterpriseOne Inventory Management system, but does not update item balance information.

Tracking commitments or encumbrances is a common practice in nonstock and services and expenditures based environments. A commitment or encumbrance is the recognition of a future obligation. If you purchase against general ledger account numbers, you can have the system track commitment or encumbrance amounts when you enter purchase orders.