We setup inventory items labels as NOF (not on file) and what the expense is. We also have specific order types we use for these purchases to drive things like not requiring purchase agreements. Another key is to consider your financial postings and do all the accounting postings in CRS395 for both receipts and variance postings including the line charges. We have them post to the same expense account. We find it easier to have more items setup with accurate ledger postings rather than  Read more...allowing someone to change it on the PO, in fact if I recall there are some limitations with trying to change it per line. There is also a setting where you can pick one field from the header or line of the PO to update on the posting. We have a financial dimension for machine; we want them to be able to select that on the PO and have that updated in the financial posting based on that selection. You can only choose one which is why we had to setup the same item multiple times, like NOF parts, but per department as we also have multiple departments.  Show less...

Alongside with your PO setup to be setup for invoicing and direct receipt, the main thing you'll need is the item setup in MMS001. Panel G has the type of item (Item Category + Sales Item) and Panel E has the setting for inventory accounting.

somehow my Panel B notations got translated as smileys.

This is what I found in Info Documentation:

To create a purchase order for a **non-inventory item** (such as rent or utilities) for a **12-month period** and have the **invoice receipt treated as a goods receipt**, you can follow these guidelines in Infor M3:

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✅ **1. Use Purchase Requisitions for Non-Stocked Items**

* A **purchase requisition** is the simplest way to enter a requirement for non-stocked items like rent or utilities. Read more...
* Enter the requisition manually in **Purchase Requisition. Open (PPS180/😎**.
* Once registered, the requisition creates a **planned purchase order**, which the buyer can review and release using **Planned Purchase Order. Open (PPS170/😎**.
* This approach is commonly used for indirect purchases or services.

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✅ **2. Configure Delivery Schedules for Long-Term Agreements**

* For a 12-month period, use **delivery schedules** to manage recurring services.
* Create schedules in **Delivery Schedule. Open (PPS210/😎**.
* Delivery schedules can be **time-limited**, matching the validity period in the purchase agreement.
* When the delivery schedule is created, a **purchase order** is automatically generated, and planned orders for future periods are attached to it.
* This method is ideal for blanket agreements covering rent or utilities over a year.

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✅ **3. Treat Invoice Receipt as Goods Receipt**

* In M3, the **goods receipt step (PPS300)** is mandatory in the purchase order flow.
* For non-inventory items, you can configure the order type so that the **invoice matching process** acts as the confirmation of receipt.
* After reporting the invoice in **Supplier Invoice Matching**, the system updates the purchase order status to reflect receipt and completion.
* This ensures financial control without requiring physical stock transactions.

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✅ **Key Programs and Settings**

* **PPS095** – Define Purchase Order Type (configure for non-stock/service items).
* **PPS180/PPS170** – Manage requisitions and planned orders.
* **PPS210** – Delivery schedules for long-term agreements.
* **PPS300** – Goods receipt reporting (can be automated for service orders).
* **APS120/APS200** – Invoice matching and payment processing.


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