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Small and medium business | Business Central, N...
Suggested Answer

Gen Prod posting group for Consumables (non-inventory items) in Manufacturing

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In manufacturing consumables are categorised as non inventory items. . Therefore, they are expensed via the P&L. Therefore, in the item card is the general product posting group the same mapping as the P&L expense account or does it matter because they are going to be purchased via a P.O. account anyway. Or should the general product posting group stated as the same as all the other raw materials.
 
Secondly, is it absolutely necessary that you have to put consumables into a bill of materials? In many cases it's just extra admin to add into a BOM. Some manufacturers may not see the benefit of adding a consumable to a BOM when it is absolutely clear that you would need such a consumable in order to fulfil the production order anyway. e.g. screws.
 
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  • Suggested answer
    Dhiren Nagar Profile Picture
    2,910 Super User 2026 Season 1 on at
    Hi,
     
    Following are the answers to your both questions.
     
    1 - How to define Gen. Prod. Posting group for your Non-Inventory Consumable items.
    Well basically when you Post the Purchase Invoice for your Non-inventory Consumable items purchase, system will debit the Purch. Account defined in the Gen. posting setup against your Gen. Prod. Posting group. So if you want to debit the general raw material purchase account, go ahead and define same Gen. Product. Posting group. If you want separate G/L to be debited, you need to define separate Gen. Prod. Posting group and Gen. Posting setup as well accordingly.
     
    2 - Shall we define Non-Inventory Consumable Items in Production BOM?
    Well it totally depends on the company policy. If the consumable items used in Production are big in number or proportion of the cost of the FG, also if consumables used in different production order very too much, it is good to define it in BOM, so that you can compare expected vs actual cost of consumables used.
    If consumable is very small portion of the quantity and value proportion of the FG, then its better to keep it off the BOM in order to reduce data entry.
     

    ✅ Tick the checkbox below to mark the answer as verified, if it helped resolve your question.

    Regards,
    Dhiren.
     
  • Suggested answer
    YUN ZHU Profile Picture
    100,278 Super User 2026 Season 1 on at
    The first issue depends on the company's financial management. If the audit requires differentiation, please use different accounts.
    The second issue, regarding consumables like screws, I personally don't recommend adding them to the BOM (Bill of Materials). You can ask the workers on site whether screws should be recorded when removed, and whether damaged screws should be recorded as inventory shortages. Because workers' production time is a significant cost, counting screws one by one is impractical, and the same applies to other similar consumables.
     
    Hope this can give you some hints.
    Thanks.
    ZHU
  • Suggested answer
    OussamaSabbouh Profile Picture
    15,247 Super User 2026 Season 1 on at
    Hello,
     
    For non-inventory consumables, the Gen. Prod. Posting Group absolutely matters because it controls which P&L account is hit via General Posting Setup when you purchase or consume the item, so even if they’re bought through a PO, they should map to the correct expense account (not necessarily the same as raw materials unless you intentionally want them expensed the same way); and while it’s not technically mandatory to include consumables like screws in a BOM, if you exclude them, Business Central won’t plan, flush, or include them in production costing automatically, so skipping them reduces admin but also removes planning accuracy and cost visibility — the decision is mainly about whether costing precision and MRP control are important enough to justify the extra BOM maintenance.
     
    Regards,
    Oussama Sabbouh

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