Digital Items

The "best" way is what works best for you but, basically, if you create it as a "purchased" item then it will be tracked in the inventory module so you can easily see movements in/out of inventory.  If you create it as a "service" item you lose the movement tracking in the inventory module although can still post the debit to a COGS account instead of an expense account when you purchase the item.

So, I guess the question you have to ask yourself is how important is the tracking functionality to you?

You're smart to be thinking of this kind of thing now, before you get to far into entering data into FA, so congrats on that.

Sounds to me like the setting up the items as "service" items will suit your needs, since tracking in/out movements isn't a issue for you  Now, you have to decide whether to create one generic item (e.g. "Templates") and dump all templates into that, or create individual items for each template.  Again, both methods work it's just a matter of how granular you want the data for future reporting/analysis purposes.  Using separate items for each template will gives you more granular/detailed info but could get cumbersome if you're dealing with a lot of different templates.

Good luck to you in getting FA setup exactly how you want to suit your purposes!  It sounds to me like you're well on the way!

Regards,

Chris