How to Create a New Purchase Item in Dynamics 365 Business Central

Learn how to create a new item in Microsoft Dynamics 365 Business Central.

An important reoccuring task you'll come across when using Microsoft Dynamics 365 Business Central is how to create a new item. Any product or service your company buys or sells should be tracked in your ERP solution as an item. In this article, we’ll walk you through the step-by-step process of creating a new purchase item in Business Central.

Navigate to the items list in Business Central. Your items list is a critical part of inventory tracking. To make your workflow more efficient, it’s strongly recommended that you bookmark the items list to your navigation menu, so it’s always accessible from your home screen.

Once you're there, click the "New" button in the action bar. This will open up a window with a list of available item templates. Choose the one that best matches the item you're adding. This will open a new item card where you can begin entering details.

The item card includes several sections and tabs to fully define how the item is tracked and managed. Let’s briefly run through each one.

The first Item tab is where you can define the item description, the type, and other details that determine how the item is ordered or delivered. You can define:

• Item Description

• Item Type: Inventory, Service, or Non-inventory

• Unit of Measure: e.g., pieces, boxes, pallets, weight, or volume

• Category Code / Service Group

• Purchasing Code: How the item is ordered and delivered

Below the main item information section is the inventory tab. In the Inventory tab, you can enter details such as:

• Storage Location

• Current Inventory Quantity

• Stockout Warnings (toggle option on whether or not you want to receive stockout warnings for the item)

Next is the Costs and Posting tab. This tabe is crucial for pricing and accounting. You'll fill in details such as:

• Costing Method (select from dropdown)

• Unit Cost

• Purchase Price

• Discounts & Sale Prices (click Create New under Cost Details)

• Posting Details

• Tariff Number (if applicable)

Next you'll see the prices and sales tab. Set your sales-related data here by filling in details such as:

• Unit Price

• Sales Unit of Measure (e.g., pieces, boxes)

• Service Commitment Option

Next is the replenishment tab, where you can configure how the item is restocked.

• Lead Time Calculation

• Vendor Number & Vendor Item Number

• For Production Items: Set Manufacturing Policy, Routing Number, and Production BOM Number

• For Assembly Items: Enter Assembly Policies and BOMs

Under the Planning tab, you can plan and automate reordering policy. Enter details for:

• Reordering Policy

• Order Tracking Policy

• Safety Lead Time

• Safety Stock Quantity

• Lot-for-Lot Settings: e.g., Lot Accumulation Period

• Reorder Parameters & Order Modifiers

  • Reorder Point

  • Default Reorder Quantity

  • Max Inventory

  • Min/Max Order Quantities

  • Order Multiple

The item tracking tab lets you track batches or serial numbers. Enter details for:

• Item Tracking Code

• Lot Numbers

Manage warehouse and physical inventory details in the warehouse tab and record details such as:

• Warehouse Class Code

• Physical Inventory Counting Period Code

• Last Physical Inventory Date

• Next Counting Start/End Dates

Once you’ve completed all the required fields, simply click the back arrow to return to your items list.

Your new purchase item is now saved and ready for use.

Training Video: Create a New Purchase Item in Dynamics 365 Business Central

Having trouble or have questions? Feel free to get in touch with the team at Kwixand Solutions for assistance. Don't forget to subscribe to our YouTube channel for more Business Central training videos, and stay connected with us on LinkedIn, Facebook, or Instagram for the latest updates.