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Unlocking the Power of Non-Inventory Items
Posted on: January 2, 2025 | By: Page Wildridge | Microsoft Dynamics Business Central
In today’s fast-changing business world, keeping operations running smoothly is essential. Microsoft Dynamics 365 Business Central offers a versatile feature often overlooked but crucial for operational efficiency: non-inventory items. These items play a critical role in managing resources that are not tracked through traditional inventory systems.
What Are Non-Inventory Items?
Non-inventory items refer to products or services that a business uses but does not physically count or track in its inventory system. Common examples include consumable office supplies, consulting services, and maintenance activities. These items serve both internal and customer-facing purposes, simplifying the purchasing and billing processes.
Why Non-Inventory Are Beneficial
Non-inventory items bring several advantages that enhance business operations. This includes accurate financial reporting as non-inventory items allow businesses to record expenses without inflating inventory values. Additionally, these items provide operational efficiency as they reduce the administrative burden of tracking low-cost, easily replenished parts. Lastly, companies can include these items in purchase orders and sales transactions, ensuring seamless procurement and customer billing.
Applications in Manufacturing
In manufacturing, non-inventory items such as bolts, lubricants, and connectors play a pivotal role. While essential for production, tracking each unit would be time-consuming and inefficient. Instead, manufacturers expense these items upon purchase, integrating them into production costs without creating unnecessary ledger entries. Additionally, listing non-inventory items on bills of material (BOM) ensures they appear on pick lists, facilitating smooth production workflows.
Recent Enhancements in Dynamics 365 Business Central
Microsoft has continuously improved the handling of non-inventory items in Dynamics 365 Business Central. Notable updates include Location Tracking and Requisition Worksheet Integration. Businesses can now assign specific locations for non-inventory items, making multi-site management more efficient. For Worksheet Integration, shop-floor employees can directly add non-inventory items to requisition worksheets, streamlining procurement and reducing downtime. By leveraging these enhancements, businesses can improve operational transparency and reduce administrative overhead.
Next Steps
When properly managed, non-inventory items offer unparalleled efficiency, accuracy, and flexibility in both financial reporting and operational workflows. To learn more about how to embrace the potential of non-inventory items and experience smoother, smarter business operations, contact Logan Consulting to speak to an expert today.
