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Small and medium business | Business Central, N...
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Managing Product Variants, Sectional Sofas, and Inventory in Dynamics 365 Business Central

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Hello Dynamics 365 Community,

I'm Shariq, a senior planner for a luxury home furniture concept store startup in UAE. We are setting up Dynamics 365 Business Central for our store in Dubai, and I need some guidance on managing complex product variants, particularly for bespoke furniture like sectional sofas, as well as on inventory tracking, purchase order creation, and dynamic pricing based on categories.

Context:

We operate a multibrand store dealing in various categories such as customizable furniture, fashion accessories, decor, home fragrance, rugs, tableware, kitchens, wardrobes, an in-store cafeteria, and a small fashion zone. However, my current focus is specifically on setting up processes for our bespoke furniture category.

Specific Requirements:

  1. Item Code Variants and Parent Code Creation:

    • We need to create item code variants based on supplier brand codes and map these to parent codes. These codes should be generated dynamically at the time of pushing a purchase order (PO) to the supplier, based on the material and finish selected for each product.
    • Our goal is to maintain inventory at the item code (variant) level. For instance, when a purchase order is created, if it includes a sectional sofa, each component should be assigned an item variant code and grouped under a parent code to represent the entire unit. This parent code should identify the complete configuration and be unique to that specific combination. Inventory should be tracked at the component level.
  2. Product Catalogue, Pricing, and Dynamic Pricing Logic:

    • We have catalogs from multiple brands that list brand codes, collection names, material categories (e.g., fabric, leather, marble), and specific product codes. Each material type has several collections and colors.
    • Pricing is based on these categories. For example, each fabric or leather type might belong to a different price category, and further customization (like finish options) might add to the base price. We need to set up dynamic pricing logic in Dynamics 365 Business Central to automatically calculate the final price based on selected categories and options.
    • At the time of creating a PO with a supplier, we want to include detailed information such as product brand code, quantity, dimensions, attributes, cost, discounts, material finish, and unit identifiers (e.g., Unit #1 for single items, Unit #2 for sectional sofas with multiple components).
    • The system should automatically create item codes and parent codes when a PO is pushed to the supplier, ensuring that duplicate combinations do not exist in the database. This helps in maintaining accurate inventory tracking both in our system and in the warehouse.
  3. Sectional Sofa and Complex Product Configurations:

    • For sectional sofas, which can consist of multiple components (e.g., left arm, right arm, corner piece), each piece should have its own item code variant. All components belonging to the same sectional should share a common parent code (Unit #2) to identify them as part of the same unit.
    • We want to ensure that inventory is tracked accurately at the component level for each sectional configuration, while also maintaining a clear relationship with the parent code.
  4. Inventory Management and Purchase Orders:

    • Inventory will be maintained both for in-stock items and for products ordered in advance. We want the ERP system to create new item and parent codes dynamically only when a unique combination of attributes (material, finish, etc.) is ordered for the first time.
    • The system should allow for real-time inventory updates upon receiving products, ensuring accurate inventory levels in both the system and the warehouse.

Key Challenges and Questions:

  • How can we effectively set up Dynamics 365 Business Central to manage these product variants, especially for sectional sofas with multiple components?
  • What is the best practice for setting up item and parent codes dynamically based on supplier brand codes, material selections, and pricing categories?
  • How should we configure the system to automate the creation of item and parent codes at the time of purchase order generation?
  • Any advice on tracking inventory at both the item (variant) and parent code levels, especially for complex, customizable products?
  • How can we implement dynamic pricing logic based on different material categories and customizations to ensure accurate pricing on all customer orders?

I would greatly appreciate any guidance or best practices from the community on how to set up these processes effectively in Dynamics 365 Business Central.

Thank you for your assistance!

Best regards,
Shariq

I have the same question (0)
  • Suggested answer
    Sohail Ahmed Profile Picture
    11,095 Super User 2025 Season 2 on at
    Managing Product Variants, Sectional Sofas, and Inventory in Dynamics 365 Business Central
    Maybe this will help guide your setup.
     
    Shariq, your use case is rich and well-detailed — and it aligns closely with the type of advanced product configuration and dynamic pricing that Business Central can support with some customization and structured setup.
     
    Let me break this down by your main requirements and provide practical recommendations:
     
     
    ---
     
    1. Managing Complex Product Variants and Parent Codes
     
    Standard BC Variants are limited to size/color-type scenarios. For sectional sofas and configurable products, you should consider creating:
     
    A custom “Parent Item” structure, where each component is an inventory item, and the parent code (e.g., Unit #2) is a non-inventory or assembly item that references the configuration.
     
    Use custom fields or dimension combinations to build unique codes at the time of PO creation.
     
     
    For dynamic code generation, implement a codeunit that builds the variant/parent code string using selected attributes (e.g., brand + material + finish + collection).
     
     
     
    ---
     
    2. Dynamic Item and Code Generation at PO Level
     
    This will require custom AL logic triggered when a PO line is created.
     
    The logic would:
     
    Check if the variant with the given attributes exists.
     
    If not, auto-create a new item or variant with a generated code.
     
    Assign the new item/variant to the PO line and link it to a parent via a common code or table.
     
     
     
     
    ---
     
    3. Dynamic Pricing Based on Category and Customization
     
    Use a custom pricing engine or table that maps:
     
    Material category → Base price
     
    Finish/customization → Add-ons
     
     
    This can be implemented with a price matrix stored in a table and applied using an OnInsert trigger on sales or purchase lines to calculate final price.
     
    You can also utilize extended price logic using the Sales Price & Line Discount features, combined with dimensions or item attributes.
     
     
     
    ---
     
    4. Inventory Tracking at Component and Parent Level
     
    Track inventory at the component level (real items).
     
    The parent code can be managed as a non-inventory item for grouping purposes or via BOM/Assembly Items if needed.
     
    Use Item Attributes or Dimensions to help with tracking custom configurations.
     
     
     
    ---
     
    5. Recommendations
     
    Set up a custom configuration table to manage possible combinations and prevent duplicates.
     
    Consider using Production BOM or Assembly BOM for grouping components, depending on whether you manufacture or assemble in-house.
     
    If your POs are complex, consider developing a custom PO entry interface or page extension where users select from dropdowns (brand, material, finish), and the system generates item and parent codes accordingly.
     
     
     
    ---
     
    To get this working effectively:
     
    You’ll likely need a Microsoft Partner or AL developer to help implement:
     
    Auto-generation logic for item/parent codes
     
    Custom pricing matrix logic
     
    Custom pages to simplify order entry and configuration
     
     
    This is a very common setup in furniture and luxury retail, and with the right design, BC can handle it smoothly.
     
     
     
    ---
     
    Let me know if you'd like a sample AL structure for dynamic item code creation or pricing logic.
     
    Mark this as the verified answer if it helps.
     
  • Suggested answer
    Khushbu Rajvi. Profile Picture
    19,517 Super User 2025 Season 2 on at
    Managing Product Variants, Sectional Sofas, and Inventory in Dynamics 365 Business Central
  • Suggested answer
    YUN ZHU Profile Picture
    93,438 Super User 2025 Season 2 on at
    Managing Product Variants, Sectional Sofas, and Inventory in Dynamics 365 Business Central
    Personally, I suggest that issues with specific needs like these can be discussed in detail with local partners.
    Many of the requirements you mentioned cannot be met by standard methods. Some customization is required. 
    Hope the following can give you some hints.
    Work with dimensions
    Categorize items
    Work with item attributes
     
    Thanks.
    ZHU

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