Was wondering how people manage software sales?
For example, a business buys and sells software from 3rd parties. It does not develop it in-house.
Within the Item, there is a "Type" which allows "Service" and "Non-Inventory". This to me appears to be designed for software companies which develop their own software, not reselling software from 3rd parties.
Reason being is that it doesn't appear on Req Worksheet (like a drop-shipment for an inventory item does), plus does not have the protection that the Purchase Order needs to be posted before the Sales Order is posted.
Headaches then could appear with reporting periods, as for example a Purchase Order could be posted in one period, but then the Sales Order posted the next period.
As this is what Microsoft Partners have to do on a daily basis. (Order licences from Microsoft in the customer's name, once delivered hand these over to the customer and invoice.) Is Inventory Items with Purchase Orders and Drop shipment the correct way of handling this? Or is there a better way?