Here is a sample cycle:
Purchase Order : since it a non-inventory item there is no inventory or cogs account so when you do the invoice match the credit goes to AP and the debit goes to the expense account set on the vendor.
Sales Order: even though you have specified inventory and cogs accounts, they will not be hit. They do not need to be hit. The credit goes to your sales account and the debit goes to AR.
There is no cost of the product to be relieved. No quantities were received so there are no quantities to be relieved.
Go into the TWO(Fabrikam) company and try to cut a PO and a SO and see how it posts.
