I want to know what is the right way to make purchase orders (or equivalent entry) for items that aren't going to be sold like tools, equipment, machine, and supplies. 

Is a PO the correct entry for this? I do not think it is appropriate to receive these items into our inventory as they are not a good that is going to be sold. Surely machines should not be added to the inventory GL account. 

In theory, you should be able to make a PO for any item you need to purchase. So I am curious as to how you're able to track these types of purchases.