In NetSuite, which item is noted as a cost related to doing business that is not kept in formal stock?

In NetSuite, non-inventory items are classified as costs related to doing business that do not require the maintenance of formal stock levels. Unlike inventory items, which are tangible goods held in physical stock, non-inventory items refer to products or services that a business may sell but does not track to the same extent as regular inventory. This can include goods purchased for resale but not held in stock, such as items that are drop shipped directly from a vendor, or goods that are consumed rather than resold.

This classification allows businesses to manage their expenses effectively without the complexities of managing stock. Non-inventory items help streamline operations by tracking costs associated with specific purchases while not needing to manage their quantities in inventory. This is particularly useful for businesses that need to focus on service delivery or for those that operate with items that are not intended for resale.

Inventory items represent physical goods for sale, service items pertain to actual services rendered, and matrix items refer to variant products based on attributes like size or color, which all require different management practices in terms of stock levels and valuation.