: The purchase order system is designed to allow purchasing of inventory items (item file) and non-Inventory items (i.e., a computer, copier, stationery etc.) in the PO module. In the PO Line Item Screen, you should change field, "5. Account No" from a regular Inventory account to a proper account (like fixed assets or expense accounts) if you order non-inventory items from a PO. The GL Account to distribute during receiving is decided from this field. If it is a real inventory item, instead of answering "Yes" to "Item not on file - Is this OK?," you should add the new inventory item to the Item Master File. Otherwise, the system is going to treat this as a non-inventory item.