Items are the products and services you buy, sell, and track in Business Central. The item card holds the configuration that drives how transactions are posted, how inventory is valued, and how planning works.
Getting the item card right from the start avoids posting issues later. This guide covers the essential fields and where to find them.
Create a New Item
- Search for Items using
Alt + Q. - Select New.
- Choose an item template if prompted, or select OK to start from a blank card.
General Tab, Core Fields
- Enter a No. if not using automatic numbering, or let BC assign one based on the number series.
- Enter a Description, this is what appears on sales and purchase documents.
- Set the Item Type:
- Inventory, physical goods that are stocked and valued in inventory.
- Non-Inventory, items that are bought or sold but not tracked in stock (e.g., consumables, packaging).
- Service, used for labor or service lines; no inventory impact.
- Set the Base Unit of Measure, this is the primary unit used for all stock movements (e.g., PCS, KG, BOX).
- Assign an Item Category Code to group the item for filtering and reporting.
Inventory vs Non-Inventory: An Inventory item creates value and quantity entries in the item ledger when received or shipped. A Non-Inventory item posts directly to cost or revenue accounts without affecting stock levels.
Costing Tab, Valuation Method
- Navigate to the Costs & Posting tab (the label may vary slightly by version).
- Set the Costing Method:
| Method | How cost is determined |
|---|---|
| FIFO | First items received are the first costed out |
| LIFO | Last items received are the first costed out |
| Average | Running weighted average cost |
| Standard | Fixed cost defined on the item card |
| Specific | Cost tied to individual lot or serial numbers |
The costing method cannot be changed after the first item entry is posted.
- If using Standard costing, enter the Standard Cost field.
- Set the Unit Cost for initial reference (used in Average and FIFO until actual receipts adjust it).
Posting Groups
Three posting group fields control where transactions are posted in the G/L.
- Set the Gen. Prod. Posting Group, combined with the customer or vendor’s Gen. Bus. Posting Group to determine revenue and cost accounts from the General Posting Setup.
- Set the VAT Prod. Posting Group, determines how VAT is calculated on sales and purchase lines.
- Set the Inventory Posting Group, controls which inventory account in the chart of accounts holds the item’s stock value.
These groups must exist before you can assign them. If they are missing, see How to Set Up Posting Groups in Business Central.
Additional Units of Measure
If the item is bought in one unit but sold in another (for example, purchased in cases but sold in pieces), you can define conversion rates.
- On the item card, select Units of Measure from the Item menu or the related action.
- Add each additional unit with the Qty. per Unit of Measure conversion factor relative to the base unit.
| UOM Code | Qty. per Base |
|---|---|
| PCS | 1 |
| BOX | 12 |
| PALLET | 144 |
On sales and purchase lines, you can then select any of the defined units, and BC calculates the base quantity automatically.
Reorder Fields (Planning Tab)
On the Planning tab, you can set:
- Reorder Point, when inventory falls to this level, BC suggests a replenishment order.
- Reorder Quantity, the suggested order size.
- Maximum Inventory, the target stock level.
These fields feed into the planning worksheets (MRP/MPS) and the requisition worksheet. They are optional if you manage purchasing manually.
Save the Item Card
After filling in all required fields, close the item card. BC saves automatically. The item is now available on sales lines, purchase lines, and journals.
To start tracking lots or serial numbers on this item, see How to Configure Item Tracking (Lot and Serial Numbers) in Business Central.