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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Direct cost non invent...
Small and medium business | Business Central, N...
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Direct cost non inventory applied account on general posting setup - Business Central

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Posted on by Nandini Barad 28

Can anyone help me with the explanation regarding 'Direct cost non inventory applied account on general posting setup' and when will this account hit during transactions?

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Dynamics 365 Business Central
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    Sohail Ahmed Profile Picture
    Sohail Ahmed 11,169 Super User 2026 Season 1 on at

    The Direct Cost Non-Inventory Applied Account in the General Posting Setup is used when posting purchase transactions for non-inventory items, like G/L accounts, fixed assets, or charge (item) types, where no inventory value is updated.

     

    This account is hit when:

     
    • You post a Purchase Invoice or Purchase Order line with a Type that is G/L Account, Fixed Asset, or Charge (Item).
    • The system needs to post a direct cost but doesn’t apply it to inventory (since there’s none).
    • It acts as the offset to interim or direct cost postings for non-inventory purchases.
     

    Example: If you buy a consultancy service (G/L line), the expense is booked directly to the relevant expense account, and the offset goes to the Direct Cost Non-Inventory Applied Account.

     

    ✅ Mark this answer as verified if it helps you.

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