About item types
In the Type field on the Item Card page, you can select what the item is used for in your business, which affects the degree to which you can manage the item in inventory. The following table lists and describes the three types of items that are available.
| Option | Typical Purpose |
|---|---|
| Inventory | Physical things, such as bicycles, telephones, and desks, for which you want to be able to use all inventory processes. Inventory items can also include nonphysical items, such as software licences and subscriptions, if the items have identification numbers, such as serial numbers. You can fully track item values and availability in inventory. |
| Non-Inventory | Typically, noninventory items are physical things, such as bolts or pens, that your business consumes but doesn't fully track in inventory. For example, because they're low-cost items and only used internally. |
| Service | A labour time unit, such as a consultancy hour, for limited business support. |
Note
The Service and Non-Inventory types don't let you track inventory quantities and values. Only selected item transaction nature codes and features are supported. The following table lists the features that the three item types support.
| Item Type | Sales | Purchasing | Job Consumption | Service Consumption | Assembly Consumption | Production Consumption | Assembly Output | Production Output | Location Transfer | Physical Counting | Inventory Revaluation | Inventory Costing | Item Tracking | Reservation | Warehousing | Planning | Order Planning |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Non-Inventory | Yes | Yes | Yes | Yes | Yes | Yes | No | No | No | No | No | No | No | No | No | No | Yes |
| Service | Yes | Yes | Yes | No | No | No | No | No | No | No | No | No | No | No | No | No | Yes |
Costing methods for types of items
When you post inventory transactions, the quantity and value changes to the inventory are recorded in the item ledger entries and the value entries, respectively.
You record the cost of inventory items in the Cost Amount (Actual) field on the Value Entries page. When you reconcile the entry to the general ledger, the cost shows in the Cost Posted to G/L field. To learn more about inventory costing, go to Design Details: Inventory Costing.
For noninventory and service items, cost is recorded in the Cost Amount (Non-Invtbl.) field on the Value Entries page. For noninventory and service items, specify cost on sales, assembly, and production documents and journals. Specify the default cost in the Unit Cost field on the Item Card and Stockkeeping Unit pages. Costs for these types of items aren't reconciled to the general ledger.
Catalogue and service items
You can set up items that you offer to your customers but you don't manage in until you sell them as catalogue items. Although catalogue items are similar to regular items of the type Non-Inventory in this respect, don't confuse the two because there are differences. To learn more, go to Work with Catalogue Items.
Customer items that you service, such as a printer, are called service items. Service items have nothing to do with regular or catalogue items. However, service components can be regular items. To learn more, go to Set Up Service Items and Service Item Components.
Resources
In addition to the item type Item, sales and purchase documents also allow you to use the item type Resource. Like items, resources support dimensions, price lists, and units of measure.
See also
Register New Items
Setting Up Inventory
Managing Inventory Costs
Inventory
Work with Business Central