Inventory vs Non Inventory Item Creation Enquiry

(0) Share

Report

Posted on by Community Member

Dear All,

What is the recommended setup for an item type? where in sales order the item can be inventory sales or non inventory sales (drop shipment sales)

Should we create 2 item code? or 1 item code?

I have the same question (0)

All responses (7)

Answers (1)

Sort by

Suggested answer

MahGah 15,593 on at

Like (0)

Report
Copy link

Link copied!

Hi

What is the business requirement? if you need to keep the item in inventory and know the value of the item and QTY. Also, if you need to use MRP to plan the item then inventory is the option.

Non-inventory works if you do not need to know the available QTY, do not need to know the value of inventory and do not want to use MRP.

These were some of difference. See below article for more. You need to evaluate your business requirements before make any decision.

https://docs.microsoft.com/en-us/dynamics365/business-central/inventory-about-item-types

https://robertostefanettinavblog.com/2019/06/30/typologies-of-items-in-business-central/

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report
Copy link

Link copied!

Dear MahGah,

Thanks for the info. This same item will be sold in 2 different scenario

1. Inventory sales via warehouse.

2. Drop shipment sales where we do not need to keep track the inventory. the item will be shipped from the supplier to the customer.

So we was wonder do we need to create 2 item code for each scenario or use one. if use one item code we will setup as type = inventory, and how to handle the sales order in the event of drop shipment when inventory is not involved

Was this reply helpful? Yes No
Suggested answer

Inge M. Bruvik 1,165 Moderator on at

Like (0)

Report
Copy link

Link copied!

I would create one item code but 2 different locations.

One location for my inventory and one for my drop shipment.

That would be my best recommendation without knowing more details about your business.

Was this reply helpful? Yes No
Verified answer

Ben Baxter 6,947 Super User 2026 Season 1 on at

Like (1)

Report
Copy link

Link copied!

I would setup one Location and one Item, Type = Inventory, and teach my Users about the Purchasing Code option on the Sales Lines. Regardless of quantity on hand, if you set the Purchasing Code on the Sales Line the system will process it as a Drop Shipment if you follow the drop shipment process flow.

I would set the system up for the standard method (either using inventory or drop shipping), then teach Users how to handle the exception.

Was this reply helpful? Yes No
Guy McKenzie 1,340 on at

Like (0)

Report
Copy link

Link copied!

What Ben said.

You don’t need two items. Drop shipment and sales from stock can be interchanged for one inventory item.

Just set the default to the common method and train users how to do the other method when needed.

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report
Copy link

Link copied!

Thanks

Was this reply helpful? Yes No
Community Member on at

Like (0)

Report
Copy link

Link copied!

Thanks

Was this reply helpful? Yes No