That's my professional recommendation from using NS for 18 years. In the legal analysis view, SaaS subscriptions should be "Non-Inventory" items, because the subscription is an intangible right to use the platform for a period of time, and that right to use constitutes property in the eyes of the law. Two general guiding principle in NS are: to not jimmy-rig things, and to model NS how it is in the real world. So here's an example where NS is going to block you if you've setup your item wrong. But to counter your example, in the project module you can only bill for time using Service items, not Non-Inventory items. We may be having an intellectual argument here with no real distinction. I haven't thought through all the permutations. It may not actually make a technical different in NS. ![]() Remember all contracts under the law are a mixture of rights an obligations on both sides. Your auditors are going to look at the underlying contract to analyze ASC606 revenue recognition rules and the key point here is that your contract gives your customer the right to use your platform for a period of time and the customer has the corresponding obligation to pay you for that right. You colloquially may think of your SaaS "subscription" as providing a "service" to the customer (meaning you're doing something beneficial for them that they're willing to pay for), but that's not technically correct according the underlying contracts. In Calif., for example, sales tax is charged on tangible personal property, and some intangible rights, but not services. Service is for example where a consultant helps you implement the SaaS service and you bill for their time. ![]() So it's still "property" (a thing that you own or have the right to use), so that would still be a non-inventory item. Under the law, rights are called intangible property. In the SaaS context, "subscriptions" are intangible property.a "subscription" is a contractual right to use your SaaS platform for 1 year. ![]() But my definition still works in the SaaS world, as follows: SuiteBilling is maybe 10% of NS customers, so it's not the common use case. purchase requisitions, and requests for price quote is non-editable. You're using your world view of SaaS where there is no tangible property. You can identify an item as an inventory item, meaning that it is something that.
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