You can create invoice and bill without affecting inventory. Here are the steps:

1. You create a SO for a customer
To create an invoice without affecting inventory:
  • Open the SO
  • Click Fulfill
  • Click on a button on the top “Create Drop Ship Invoice without Inventory”
To create drop ship order and bill
  • Open the SO
  • Click on Purchase button
  • Click on the button “Create New Drop Ship PO” and create the PO
  • Open the PO and click on “Receive”. It will create the bill without receiving items to inventory