How to Sell a Non-Stock Product (e.g. Coffee) in D365 POS?

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Posted on by Ashutosh Parasar

How to Sell a Non-Stock Finished Product (e.g., Coffee) in D365 Retail POS When Only Raw Materials Are in Stock?

Hello Community,

I’m working with Dynamics 365 Finance and Operations + Retail POS (Commerce) and I have a scenario where I need your guidance.

We operate a cafe-style business where we sell finished goods like "Coffee" at the POS. However, we do not keep stock for the finished item (Coffee) in the system. Instead, we maintain inventory for raw materials like coffee beans, sugar, and milk.

Here's a breakdown of the scenario:

We want to sell "Coffee" at the POS as a product.
"Coffee" itself is not stocked or produced in advance.
Raw materials (coffee beans, milk, sugar, etc.) are stocked in the warehouse.
When Coffee is sold, we ideally want to reduce raw material inventory or handle this via a back-office production process automatically.

What is the recommended approach to selling a non-stocked finished product like "Coffee" in D365 Retail POS, while managing raw material inventory properly?

What kind of configurations are required to handle this scenario?

Looking forward to your valuable response.

Thank you in advance.

Ashutosh

Categories:

Dynamics 365 Commerce

Dynamics 365 Supply Chain Management

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Zain Mehmood 4,311 Most Valuable Professional on at

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Hi,
A good fit for this scenario is using a BOM journal with auto consumption.
Here’s how you can approach it:

Set up “Coffee” as a stocked BOM product (even though you don’t physically stock it).

Define a BOM with components like coffee beans, milk, sugar, etc.

Use auto-consumption so when Coffee is sold and posted to HQ, a BOM journal automatically consumes raw materials.

“Coffee” won’t have inventory until it’s sold — but being marked as a stocked product allows the BOM journal process to work.

Make sure raw materials are available in inventory, or the journal will fail due to insufficient stock.

This setup avoids production orders while still maintaining proper raw material tracking.

Hope this helps,

Zain

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André Arnaud de Cal... 305,150 Super User 2026 Season 1 on at

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Hi Ashutosh,

Are you really considering making the process this difficult? What exactly are you trying to achieve by posting production orders per cup of coffee? Do you need to have a cost calculation per sold cup of coffee? You can also consider consuming the ingredients when you open a new bag with coffee beans or a bag with sugar.

Apart from a tedious process, you are also creating a lot of transactions which will consume database storage. With the expected upcoming enforcement of database space entitlements, I would not recommend posting production orders per sold cup of coffee.

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Ashutosh Parasar 88 on at

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Hi @Zain Mehmood @André Arnaud de Calavon,

Thank you both for your valuable responses.
To clarify the requirement and the current configuration in D365 Finance & Operations, please find the details below:
Business Requirement:

The core objective is to automatically consume raw materials (such as Coffee, Tea, or other ingredients) when an assembled item or beverage is sold through the Retail POS

These raw materials are tracked as stocked items, and it is essential for the business to maintain accurate inventory levels and consumption history.

Negative inventory is not allowed in our D365 configuration, so the system must always reflect correct stock availability before sales can be processed.

Configuration Performed in D365 F&O:

As suggested by @Zain Mehmood, I configured the BOM for the finished items accordingly.

Additionally, I enabled the "Auto report as finished" and relevant parameters under the Engineering tab of the Released Product.

This setup ensures that when a packing slip is posted for a sales order (originating from POS transactions), D365 automatically posts a BOM journal to consume the components.

The result: raw materials like Coffee or Tea are now auto-deducted from inventory without requiring manual journal posting — which aligns with the retail process needs.

@André Arnaud de Calavon– while your suggestion to consume materials when a new bag is opened is valid, our scenario requires real-time tracking of component usage for each unit sold.

Since Coffee is defined as a stocked item and negative stock is not allowed, the system must ensure that inventory exists before the item is sold, or else the sale cannot proceed.

Additionally, this approach supports audit, costing, and forecasting more effectively, as every consumption is recorded via the BOM journal.

If there is an alternative standard process within D365 F&O to handle this more efficiently — especially one better suited for Retail and Food & Beverage scenarios — I’m open to exploring that.

Thanks

Ashutosh

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