Hi. You can use non-stock item.

Hello and thank you for your response.  Unfortunately, my boss is questioning if that is correct.  I had already creating an item using that item class.  THen my boss questioned if a company like Microsoft or even Sage using that kind of classification.  Anyway, until I find out how bigger companies do it, I'll be using Non-Stock as the item class.

Non-stock was my first thought too. But if you set them up as stock items you would get better reporting on the number of units sold. However, since you don't buy or manufacture software like other tangible inventory items, you would need to periodically make inventory adjustments to put items into stock. Technically that would not be a required step but you can create problems by allowing negative quantity on hand for stock items. When making the adjustment, you can leave the unit cost at $0.00 unless you want a COGS entry to be made for each unit sold.

Thank you, Stephen!