How To Create Item Master In Business Central

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.