Creation of Inventory Setup in D365 BC:
(1) In this article, we will get to know about the Inventory Setup in Business Central D365. This is required for mapping the Item Inventory Functions in D365 BC.
(2) Go to the search bar and enter “Inventory Setup” as shown.
(3) After this, the Inventory Setup pages open, as shown with details.
- General Tab:
| Field Name | Nature & Importance | Field Description |
|---|---|---|
| Automatic Cost Posting | As per Business requirement | Specifies if value entries are automatically posted to the inventory account, adjustment account, and COGS account in the general ledger when an item transaction is posted. Alternatively, you can manually post the values at regular intervals with the Post Inventory Cost to G/L batch job. Note that costs must be adjusted before posting to the general ledger. |
| Expected Cost Posting to G/L | As per Business requirement | Specifies if value entries originating from receipt or shipment posting, but not from invoice posting are recorded in the general ledger. Expected costs represent the estimation of, for example, a purchased item’s cost that you record before you receive the invoice for the item. To post expected costs, interim accounts must exist in the general ledger for the relevant posting groups. Expected costs are only managed for item transactions, not for immaterial transaction types, such as capacity and item charges. |
| Automatic Cost Adjustment | As per Business requirement | Specifies if item value entries are automatically adjusted when an item transaction is posted. This ensures correct inventory valuation in the general ledger so that sales and profit statistics are up to date. The cost adjustment forwards any cost changes from inbound entries, such as those for purchases or production output, to the related outbound entries, such as sales or transfers. To minimize reduced performance during posting, select a time option to define how far back in time from the work date an inbound transaction can occur to potentially trigger adjustment of related outbound value entries. Alternatively, you can manually adjust costs at regular intervals with the Adjust Cost – Item Entries batch job. |
| Default Costing Method | Mandatory | Specifies how your items’ cost flow is recorded and whether an actual or budgeted value is capitalized and used in the cost calculation. Your choice of costing method determines how the unit cost is calculated by making assumptions about the flow of physical items through your company. A different costing method on item cards will override this default. For more information, see “Design Details: Costing Methods” in Help. |
| Average Cost Calc. Type | Mandatory | Specifies how costs are calculated for items using the Average costing method. Item: One average cost per item in the company is calculated. Item & Location & Variant: An average cost per item for each location and for each variant of the item in the company is calculated. This means that the average cost of this item depends on where it is stored and which variant, such as color, of the item you have selected. |
| Average Cost Period | Mandatory | Specifies the period of time used to calculate the weighted average cost of items that apply the average costing method. All inventory decreases that were posted within an average cost period will receive the average cost calculated for that period. If you change the average cost period, only open fiscal years will be affected. |
| Copy Comments Order to Shpt. | Depends upon Business Requirement | Specifies that you want the program to copy the comments entered on the transfer order to the transfer shipment. |
| Copy Comments Order to Rcpt. | Depends upon Business Requirement | Specifies that you want the program to copy the comments entered on the transfer order to the transfer receipt. |
| Outbound Whse. Handling Time | Depends upon Business Requirement | Specifies a date formula that calculates the time it takes to get items ready to ship. The time element is used to calculate the delivery date as follows: Shipment Date + Outbound Warehouse Handling Time = Planned Shipment Date + Shipping Time = Planned Delivery Date. |
| Inbound Whse. Handling Time | Depends upon Business Requirement | Specifies a date formula that calculates the time it takes to make items available in inventory after they have been received. The time element is used to calculate the expected receipt date as follows: Order Date + Lead Time Calculation = Planned Receipt Date + Inbound Warehouse Handling Time + Safety Lead Time = Expected Receipt Date. |
| Prevent Negative Inventory | Optional | |
| Skip Prompt to Create Item | Optional | Specifies if a message about creating a new item card appears when you enter an item number that does not exist. |
| Copy Item Descr. to Entries | Optional | Specifies if you want the description on item cards to be copied to item ledger entries during posting. |
- Location Tab:
| Field Name | Nature & Importance | Field Description |
|---|---|---|
| Location Mandatory | Depends upon Business Requirement | Specifies if a location code is required when posting item transactions. This field, together with the Components at Location field in the Manufacturing Setup window, is very important in governing how the planning system handles demand lines with/without location codes. For more information, see “Planning with or without Locations” in Help. |
- Dimension Tab:
| Field Name | Nature & Importance | Field Description |
|---|---|---|
| Item Group Dimension Code | Depends upon Business Requirement | Specifies the dimension code that you want to use for product groups in analysis reports. |
- Numbering Tab:
| Field Name | Nature & Importance | Field Description |
|---|---|---|
| Item Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to items. |
| Catalog Item Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to catalog items. |
| Transfer Order Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to transfer orders. |
| Posted Transfer Shpt. Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to posted transfer shipments. |
| Posted Direct Trans. Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to posted transfer receipts. |
| Direct Transfer Posting | Mandatory as per the feature use | Specifies if Direct Transfer should be posted separately as Shipment and Receipt or as single Direct Transfer document. |
| Inventory Put-away Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to inventory put-always. |
| Posted Invt. Put-away Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to posted inventory put-always. |
| Inventory Pick Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to inventory picks. |
| Posted Invt. Pick Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to posted inventory picks. |
| Inventory Movement Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to inventory movements. |
| Registered Invt. Movement Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to registered inventory movements. |
| Internal Movement Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to internal movements. |
| Phys. Invt. Order Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to physical inventory orders. |
| Posted Phys. Invt. Order Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to physical inventory orders when they are posted. |
| Invt. Receipt Nos. | Mandatory as per the feature use | Specifies the number series from which numbers are assigned to new records. |
| Posted Invt. Receipt Nos. | Mandatory as per the feature use | Specifies the number series from which numbers are assigned to new records. |
| Invt. Shipment Nos. | Mandatory as per the feature use | Specifies the number series from which numbers are assigned to new records |
| Posted Invt. Shipment Nos. | Mandatory as per the feature use | Specifies the number series from which numbers are assigned to new records. |
| Service Transfer Order Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to service transfer orders. |
| Posted Serv. Trans. Rcpt. Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to posted service transfer receipts. |
| Posted Serv. Trans. Shpt. Nos. | Mandatory as per the feature use | Specifies the number series that will be used to assign numbers to posted service transfer shipments. |
| Service Rounding Account | Mandatory as per the feature use | Specifies the rounding account for service transfer posting. |
| Sub. Component Location | Mandatory as per the feature use | Specifies the location from which item will be transferred to subcontracting location or vice versa. |
| Job Work Return Period | Mandatory as per the feature use | Specifies the stipulated time period for return of material from subcontracting location. |
| Inward Gate Entry Nos. | Mandatory as per the feature use | Specifies the number series from which numbers are assigned to new Gate Entry Inward documents. |
| Outward Gate Entry Nos. | Mandatory as per the feature use | Specifies the number series from which numbers are assigned to new Gate Entry Outward documents. |
