How to create Item Master in Business Central:
(1) In this blog, we get to know about the creation of Item Master in Business Central D365. For this go to the search bar and enter “Items”, as shown.
(2) Item List page open. Press the “New” button for creating a new item (Note → For modification double click on the “No.” field, item card opens), as shown.
(3) After doing the above step, enter the information as per the below images.
- Item Tab:
| Field Name | Nature & Importance | Field Description |
|---|---|---|
| No. | Mandatory | Specifies the number of the involved entry or records, according to the specified number series. |
| Description | Mandatory | Specifies a description of the item. |
| Blocked | Optional | Specifies that the related record is blocked from being posted in transactions, for example, an item that is placed in quarantine. |
| Type | Mandatory | Specifies if the item card represents a physical inventory unit (Inventory), a labor time unit (Service), or a physical unit that is not tracked in inventory (Non-Inventory). |
| Base unit of Measure | Mandatory | Specifies the base unit used to measure the item, such as a piece, box, or pallet. The base unit of measure also serves as the conversion basis for alternate units of measure. |
| Item Category Code | Optional | Specifies the category that the item belongs to. Item categories also contain any assigned item attributes. |
- Inventory Tab:
| Field Name | Nature & Importance | Field Description |
|---|---|---|
| Shelf No. | Optional | Specifies where to find the item in the warehouse. This is informational only. |
| Inventory | Auto Calculated | Specifies how many units, such as pieces, boxes, or cans, of the item are in inventory. |
| Qty. on Purch. Order | Auto Calculated | Specifies how many units of the item are inbound on purchase orders, meaning listed on outstanding purchase order lines. |
| Qty. on Prod. Order | Auto Calculated | Specifies how many units of the item are inbound on purchase orders, meaning listed on outstanding purchase order lines. |
| Qty. on Component Lines | Auto Calculated | Specifies how many units of the item are allocated as production order components, meaning listed under outstanding production order lines. |
| Qty. on Sales Order | Auto Calculated | Specifies how many units of the item are allocated to sales orders, meaning listed on outstanding sales orders lines. |
| Stockout Warning | Optional | Specifies if a warning is displayed when you enter a quantity on a sales document that brings the item’s inventory below zero. |
| Unit Volume | Optional | Specifies the volume of one unit of the item. |
| Over-Receipt Code | Optional | Specifies the policy that will be used for the item if more items than ordered are received. |
- Cost & Posting:
| Field Name | Nature & Importance | Field Description |
|---|---|---|
| Costing Method | Mandatory | Specifies how the item’s cost flow is recorded and whether an actual or budgeted value is capitalized and used in the cost calculation. Options are: 1. FIFO 2. LIFO 3. Specific 4. Average 5. Standard |
| Standard Cost | Auto Calculated | Specifies the unit cost that is used as an estimation to be adjusted with variances later. It is typically used in assembly and production where costs can vary. |
| Unit Cost | Auto Calculated | Specifies the cost of one unit of the item or resource on the line. |
| Net Invoiced Qty. | Auto Calculated | Specifies how many units of the item in inventory have been invoiced. |
| Cost is Adjusted | Optional | Specifies whether the item’s unit cost has been adjusted, either automatically or manually. |
| Purchase Price & Discount | Optional | Specifies purchase prices and line discounts for the item. |
| Gen. Prod. Posting Group | Mandatory | Specifies the item’s product type to link transactions made for this item with the appropriate general ledger account according to the general posting setup. |
| Inventory Posting Group | Mandatory | Specifies links between business transactions made for the item and an inventory account in the general ledger, to group amounts for that item type. |
| Default Deferral Template | Optional | Specifies how revenue or expenses for the item are deferred to other accounting periods by default. |
| GST Group Code | Mandatory in case of GST calculation | Specifies a unique identifier for the GST group code used to calculate and post GST. |
| GST Credit | Mandatory in case of GST calculation | Specifies if the GST credit has to be availed or not. |
| HSN/SAC Code | Mandatory in case of GST calculation | Specifies a unique identifier for the type of HSN or SAC that is used to calculate and post GST. |
- Prices & Sales:
| Field Name | Nature & Importance | Field Description |
|---|---|---|
| Unit Price | Optional and Manual | Specifies the price of one unit of the item or resource. You can enter a price manually or have it entered according to the Price/Profit Calculation field on the related card. |
| Profit % | Auto Calculated | Specifies the profit margin that you want to sell the item at. You can enter a profit percentage manually or have it entered according to the Price/Profit Calculation field. |
| Sales Prices & Discounts | Optional | Specifies sales prices and line discounts for the item. |
| Sales Unit of Measure | Mandatory | Specifies the unit of measure code used when you sell the item. |
| Sales Blocked | Optional | Specifies that the item cannot be entered on sales documents, except return orders and credit memos, and journals. |
- Replenishment:
| Field Name | Nature & Importance | Field Description |
|---|---|---|
| Replenishment System | Mandatory | Specifies the type of supply order created by the planning system when the item needs to be replenished. Options are: 1. Purchase 2. Prod. Order 3. Assembly |
| Lead Time Calculation | Optional | Specifies a date formula for the amount of time it takes to replenish the item. |
| Vendor No. | Optional | Specifies the vendor code of who supplies this item by default. |
| Vendor Item No. | Optional | Specifies the number that the vendor uses for this item. |
| Purch. Unit of Measure | Mandatory | Specifies the unit of measure code used when you purchase the item. |
| Purchasing Blocked | Optional | Specifies that the item cannot be entered on purchase documents, except return orders and credit memos, and journals. |
| Manufacturing Policy | Mandatory | Specifies if additional orders for any related components are calculated. Options are: 1. Make-to Stock 2. Make-to Order |
| Routing No. | Mandatory in case of Production | Specifies the number of the production routing that the item is used in. |
| Production BOM No. | Mandatory in case of Production | Specifies the number of the production BOM that the item represents. |
| Rounding Precision | Optional | Specifies how calculated consumption quantities are rounded when entered on consumption journal lines. |
| Flushing Method | Mandatory in case of Production | Specifies how consumption of the item (component) is calculated and handled in production processes. Manual: Enter and post-consumption in the consumption journal manually. Forward: Automatically posts consumption according to the production order component lines when the first operation starts. Backward: Automatically calculates and posts consumption according to the production order component lines when the production order is finished. Pick + Forward / Pick + Backward: Variations with warehousing. |
| Scrap % | Optional | Specifies the percentage of the item that you expect to be scrapped in the production process. |
| Lot Size | Optional | Specifies the default number of units of the item that are processed in one production operation. This affects standard cost calculations and capacity planning. If the item routing includes fixed costs such as setup time, the value in this field is used to calculate the standard cost and distribute the setup costs. During demand planning, this value is used together with the value in the Default Dampener % field to ignore negligible changes in demand and avoid re-planning. Note that if you leave the field blank, it will be treated as 1. |
- Planning:
| Field Name | Nature & Importance | Field Description |
|---|---|---|
| Reordering Policy | Mandatory | Specifies the reordering policy. Options are: 1. Fixed Reorder qty. 2. Maximum Qty. 3. Order 4. Lot-for-Lot |
| Reserve | Mandatory | Specifies if and how the item will be reserved. Never: It is not possible to reserve the item. Optional: You can reserve the item manually. Always: The item is automatically reserved from demand, such as sales orders, against inventory, purchase orders, assembly orders, and production orders. |
| Order Tracking Policy | Mandatory | Specifies if and how order tracking entries are created and maintained between supply and its corresponding demand. Options areà 1. None 2. Tracking Only 3. Tracking & Action Msg. |
| Stockkeeping Unit Exists | Auto Calculated | Specifies that a stock-keeping unit exists for this item. |
| Dampener Period | Optional | Specifies a period of time during which you do not want the planning system to propose to reschedule existing supply orders forward. The dampener period limits the number of insignificant rescheduling of existing supply to a later date if that new date is within the dampener period. The dampener period function is only initiated if the supply can be rescheduled to a later date and not if the supply can be rescheduled to an earlier date. Accordingly, if the suggested new supply date is after the dampener period, then the rescheduling suggestion is not blocked. If the lot accumulation period is less than the dampener period, then the dampener period is dynamically set to equal the lot accumulation period. This is not shown in the value that you enter in the Dampener Period field. The last demand in the lot accumulation period is used to determine whether a potential supply date is in the dampener period. If this field is empty, then the value in the Default Dampener Period field in the Manufacturing Setup window applies. The value that you enter in the Dampener Period field must be a date formula, and one day (1D) is the shortest allowed period. |
| Damper Quantity | Optional | Specifies a dampener quantity to block insignificant change suggestions for an existing supply, if the change quantity is lower than the dampener quantity. |
| Critical | Optional | Specifies if the item is included in availability calculations to promise a shipment date for its parent item. |
| Safety Lead Time | Optional | Specifies a date formula to indicate a safety lead time that can be used as a buffer period for production and other delays. |
| Reorder Point | Optional | Specifies a stock quantity that sets the inventory below the level that you must replenish the item. |
| Reorder Quantity | Optional | Specifies a standard lot size quantity to be used for all order proposals. |
| Maximum Inventory | Optional | Specifies a quantity that you want to use as a maximum inventory level. |
| Overflow Level | Optional | Specifies a quantity you allow projected inventory to exceed the reorder point before the system suggests decreasing supply orders. |
| Time Bucket | Optional | Specifies a time period that defines the recurring planning horizon used with Fixed Reorder Qty. or Maximum Qty. reordering policies. |
| Minimum Order Quantity | Optional | Specifies a minimum allowable quantity for an item order proposal. |
| Maximum Order Quantity | Optional | Specifies a maximum allowable quantity for an item order proposal. |
| Order Multiple | Optional | Specifies a parameter used by the planning system to modify the number of planned supply orders. |
- Item Tracking:
| Field Name | Nature & Importance | Field Description |
|---|---|---|
| Item Tracking Code | Mandatory in case of Item tracking or Lot No. & Serial No. | Specifies how serial or lot numbers assigned to the item are tracked in the supply chain. It is entered according to the Price/Profit Calculation field on the related card. |
| Serial Nos. | Mandatory in case of Item serial no. | Specifies a number series code to assign consecutive serial numbers to items produced. |
| Lot Nos. | Mandatory in case of Item serial no. | Specifies the number series code that will be used when assigning lot numbers. |
| Expiration Calculation | Optional | Specifies the date formula for calculating the expiration date on the item tracking line. Note: This field will be ignored if the involved item has Require Expiration Date Entry set to Yes on the Item Tracking Code page. |
- Warehouse:
| Field Name | Nature & Importance | Field Description |
|---|---|---|
| Warehouse Class Code | Mandatory in case of warehouse feature | Specifies the warehouse class code for the item. |
| Put-away Template Code | Mandatory in case of warehouse feature | Specifies the code of the put-away template by which the program determines the most appropriate zone and bin for storage of the item after receipt. |
| Put-away Unit of Measure Code | Mandatory in case of warehouse feature | Specifies the code of the item unit of measure in which the program will put the item away. |
| Phys Invt Counting Period Code | Mandatory in case of warehouse feature | Specifies the code of the counting period that indicates how often you want to count the item in a physical inventory. Item Tracking Code page. |
| Last Phys. Invt. Date | Auto calculated | Specifies the date on which you last posted the results of a physical inventory for the item to the item ledger. |
| Last Counting Period Update | Auto calculated | Specifies the last date on which you calculated the counting period. It is updated when you use the function Calculate Counting Period. |
| Next Counting Start Date | Auto calculated | Specifies the starting date of the next counting period. |
| Next Counting End Date | Auto calculated | Specifies the ending date of the next counting period. |
(4) Tabs in Item Card pages, as shown.
