Not allowing the use of non-inventory items with locations severely limits the functionality of the non-inventory item to the point where companies using locations are not able to use them.
Allowing locations will allow non-inventory items to be added to Requisition Worksheets so they can be requested by someone and then placed on a PO by purchasing.
it will also be required to allow non-inventory items to be used on assembly orders and production bills of material. This is a highly desired use where these items can be on a production order to show an employee supply items are used but not have the same inventory / consumption requirements of a normal inventory item.