Most of the businesses have the requirements of Item Substitution. What this means in business terms is that, if the item to be sold is not available then you can sell a different or substitute item instead of that item.
There are few conditions based upon which we can decide whether we can do item substitution or not.

Let us see and learn Item substitution in detail.


Microsoft Dynamics NAV / Business Central


Item Substitution

The use case for Item Substitution would be that a Customer wants to have a conference room Chairs & Table Set within 3 days.
The Customer likes the Product and selects it. But, generally, manufacturing & assembly takes over a week and we do not keep the Stock. We produce the set as an when needed.

Goto Items > Select Tall Tiles as the Layout.

We will be substituting Items as shown in the screenshot.

1. Setting Up Item substitution:

Goto Items > Select Item which will be substituted by some other Item
Goto Item Card > Navigate > Item > Substitution
Item Substitution Action

This opens Item Substitution List where you can substitute with multiple Items
Item Substitution List

From the Item Substitution List Page, Goto Conditions.
Item Substitution Condition

2. How to use Item substitution:
When you create a Sales Order and realize that the Item you are selling is not in the Inventory.

Goto Sales Orders > Create Sales Order > Select the Item
Sales Order - Insufficient Inventory

Select the Lines > Action > Select Item Substitutions
Item Lines - Select Item Substitution
Item 1925-W substituted with 1929-W
Prior to Item substitution, you can also check the condition to satisfy during Item Substitutions
Item Substitution - Conditions

Item Substitutions - Conditions

After, the selection of the Item Substitution, the Item is substituted by a different Item on the Sales Order
Item 1929-W is substituted


On a personal note, I think that Item Substitution is decent feature for businesses where the Item Substitution does not deal with Inventory.
For Eg: If an Item A is to be substituted by Item B and X units of Item A is equivalent to Y units of Item B, then this scenario is not possible with Item Substitution.
I will either find a way to do these kinda activities or write a simple extension for the same.