Dynamics 365 Business Central: Default Unit Cost Of Non-Inventory Item

Default Unit Cost of Non-Inventory Item

Hey, guys. We're going to touch on a piece that's in Wave 2, and it's something about non-inventory items. So of course we have the items, and they can be now three types. They can be of inventory, non-inventory and service. And the non-inventory ones, obviously you're not buying inventory therefore you don't have cost of goods sold, you don't have a cost. So apparently there was no way to actually put default cost on the non-inventory ones. And why would you want that?

Let's say if you have a sales order and it has a header and lines, and on the line you have this non-inventory item, and that might have a unit price of $100. So you might want to have a unit cost, let's say of $50 so that you know that the profit is $50. So if you're not able to put the cost of the non-inventory item default into the system, then that will not show up on the SO. So the SO's profitability will be sort of off because it's going to come with 100% profit on that non-inventory item, which might not be 100% profit.

Because obviously, even though it's non-inventory, it could be something like freight and you've got to buy that freight, and you want to have maybe a basis that comes in here. However, as you can see when you post it, it doesn't really do anything with this cost there. It does record a value entry, but at a non-inventory cost, and if you post an SO just with non-inventory item, you're just hitting revenue and accounts receivable. So it's pretty loose, but it's nice, nice to have. So let's take a look at that.

Okay, so what we're looking at right now is this default unit cost for non-inventory items, which is in public preview right now, should be available very soon. But basically what you can do is you can go in here on items and I actually did create an item already, it's called non-inventory item. I'm being very creative today. I click on number, and in the unit cost here, I can actually change it. I just hit $500, I'm going to say $250 just to show you, and now it's $250. So I'm going to go ahead and sell this to show the impact of that. If I go in through sales, sales orders, create a new order, and pick Adatum Corporation. Pick this item, non-inventory item.

Now let me just sell 10 of them, going to pick the text group code. Now, okay. So if I put $500 as a unit price, I can go into order up here and hit statistics, and I can see that I'm making $2,500. So that's $250 was the cost, $500 is the price. So it's 10 of those, so I'm making $2,500. And it's just picking up the cost that I put on the item. If I go ahead and post this, and you're probably wondering, okay, so where is this going to post cost? Okay, so post now and I want to take a look at this invoice.

And for those who've been watching NAV videos or working with NAV or Navision, navigate used to be the way you used to click on to get all the details of the transactions of the post document. Now it's actually called find entries, it's been renamed. I don't know if I covered that in a video or not, maybe I just forgot. But you go ahead and find entries instead of navigate, and you get all of the entries that are posted during the posting of that invoice. Now, if I go into the GL entry and click on that, I can see it's just generating two. So it's just really creating a sale, a posting to sale, credit sale and debit accounts receivable.

So that's really the only thing that's happening. So there's really no costing per se being posted in the background. It's just that you can set the cost so it flows through the documents here, for example, this does pop up on the value entries, but it's a non-inventory cost amount which means it really doesn't affect anything in the GL. And I'm not sure if you really wanted it to affect anything in the GL. So, yeah, so it's pretty good. Nice that we can now add this in.