Using Non-Inventory Items in Assembly Orders in Dynamics 365 Business Central

Using Non-Inventory Items in Assembly Orders in Dynamics 365 Business Central

When managing production and assembly processes in Dynamics 365 Business Central, it's essential to understand how to handle different types of components, including non-inventory items. This blog will guide you through the considerations and steps for using non-inventory items, such as bottles and labels, in assembly orders.

Why Use Non-Inventory Items?

Non-inventory items are products that you do not keep in stock or track quantities for. These could include consumables, packaging materials, or services. In assembly processes, non-inventory items can be used to include costs that are not tracked as inventory but still contribute to the total cost of finished goods.

Impact on Costing and Accounting

When you include non-inventory items in an assembly order, Business Central handles their costs differently compared to inventory items:

1. Cost Capturing: The cost of non-inventory items will be recorded in a specific account called Cost amount (Non invtbl).
2. Finished Goods Cost: Only the cost of inventory items will be captured in the cost calculation for the finished goods. Therefore, to ensure that all costs, including those of non-inventory items, are rolled up into the finished goods, it is necessary to set up these items as inventory items.