Define products as not stocked
In Supply Chain Management, you can define products as stocked or not stocked.
If a product is stocked, it is carried in physical inventory and on-hand inventory is maintained.
If a product isn't stocked, no inventory-related functions are supported, such as transfer journals and counting, and it won't track on-hand inventory.
You can define not-stocked products in the Item model groups page. If the Stocked product checkbox is cleared, the products that are associated with this item model group are considered not stocked.
A not-stocked product is a product of the item or service type that can't be tracked in inventory but can still be handled through the receiving and shipping process. Also, master planning won't include not-stocked products.
Scenario
The USMF company sells consulting services to help install a home theater system. Consulting is set up as a service product and isn't stocked in the warehouse. As a result, USMF can sell consulting hours without having to track inventory.