What are non-stock materials defined as?

Non-stock materials are defined as items in which no quantities are recorded in the material master. This classification is important within inventory management and acquisition processes because it indicates that these items are not held in inventory like stock materials. Non-stock materials typically include items needed for specific purposes that do not have a forecasted demand or that are not expected to be stored for long periods, such as consumables or one-time-use items.

Understanding this definition helps to clarify the distinction between stock items, which are maintained in quantities within the material master and tracked for inventory management, and non-stock items that are procured on an as-needed basis. This can affect how procurement processes are managed, including order placement and payment handling, since non-stock items may not follow the same inventory turnover principles as stock items.