Non Stock Item is used to order, ship and invoice intems that are not maintained in inventory. Don't be mistaken that nonstock item is a non-physical item or service. It can be a physical item but not stored in your warehouse. Nonstock Item is usually used in drop shipment where you puchase the items from vendor and ask the vendor send the items directly to the customers. The items will not come to your warehouse. This is the major usage of Nonstock Item.