Thanks for posting the Community space, @sbm1.

The purchase order is a non-posting transaction that's why it doesn't post to the manufacturing overhead account until you create a receipt or bill.

Also, the steps that you've made are the correct way on how to set up non-inventory items in QuickBooks.

I'm also adding here a link that you can visit for more information regarding Accounts Payable in QuickBooks: A/P workflow in QuickBooks Desktop.

I've added these articles that can guide in tracking  the products you build using inventory parts and assemblies:

• Track the products you manufacture
• Adjust your inventory quantity or value in QuickBooks Desktop

You can always get back to me if you have any other questions. It'll be my pleasure to help you.