Ok I'll bite, how do you drop ship a service?  If it is just a service how or why would you assign a vendor. Normally service is someone coming on site to do something.

we currently use an outside vendor to our customers lab testing and use misc codes but is we could set up a Non-Stock item in inventory it would be great we could stop using a lot of our misc codes (which out accountant hates)

Why do they hate misc codes?  That seems odd.

(We've used drop-ship-only item codes as a way to meet unusual business requirements, not out of personal feelings).

What you could do is created an item and then use a purchase order to the vendor for the lab testing and then when you do a receipt of goods in  the purchase order you would have "stock" of the item which you then sell to the customer.

can't answer why he hates the misc codes but I don't like them because you can't have a vendor assigned to an item.  I did google this and I saw a thing called item Class

not sure if this is something that is available in SAGE 100.  but this showed you can set something up as a 1 for stock items and a 0 for non-stock 4 for a service and a 5 for labor.  but when I looked for it in inventory maintenance I didn't see the "Item Class" field.  

Inventory items and misc items are technically stored in the same Sage table: CI_Item, with the Sage 100 UI filtering what item types you can access in IM vs MIM.

https://help-sage100.na.sage.com/2020/FLOR/index.htm#File_Layouts/Common_Information/CI_Item.htm?TocPath=File%2520Layouts%257CCommon%2520Information%257C_____12

If you need multiple vendors (with individually controlled costs), the drop ship item approach is feasible... but such a thing is not practical without some extra effort on your part  (primarily the script).

Inventory items and misc items are technically stored in the same Sage table: CI_Item, with the Sage 100 UI filtering what item types you can access in IM vs MIM.

https://help-sage100.na.sage.com/2020/FLOR/index.htm#File_Layouts/Common_Information/CI_Item.htm?TocPath=File%2520Layouts%257CCommon%2520Information%257C_____12

If you need multiple vendors (with individually controlled costs), the drop ship item approach is feasible... but such a thing is not practical without some extra effort on your part  (primarily the script).