In the world of enterprise resource planning (ERP) systems, Microsoft Dynamics NAV (now known as Dynamics 365 Business Central) plays a crucial role in helping businesses manage their financials, supply chains, operations, and customer relationships. One of the important features in NAV is the management of nonstock items, particularly when it comes to created from nonstock item nav and integrating them into the inventory and production processes.
The concept of “Created from Nonstock Item” in NAV refers to the handling of items that are not typically tracked in inventory but are still essential to various business operations, such as purchasing, sales, and production. Nonstock items may include services, consumables, or unique items that are only temporarily used in business processes.
This article provides a comprehensive exploration of “Created from Nonstock Item” in NAV, explaining its role, use cases, setup, and functionality within the system. Whether you’re a NAV user or considering implementing it in your organization, understanding how to handle nonstock items is essential to optimizing business operations.
What is a Nonstock Item in NAV?
Before diving into the specifics of “Created from Nonstock Item,” it is essential to understand what nonstock items are in Microsoft Dynamics NAV.
In NAV, nonstock items refer to products or services that are not stored in inventory. These items typically do not require a traditional stock count and are not tracked through the normal inventory management processes. Nonstock items are typically used in transactions like purchasing, sales, or services where inventory tracking isn’t required but where the item plays an important role in the business process.
Examples of Nonstock Items:
- Services: Items like consulting, maintenance, and repairs that are provided to customers but are not physically stored in inventory.
- Consumables: Items that are consumed in the course of operations, such as office supplies, tools, and materials that are not intended for resale or long-term use.
- Special Orders: Products or materials that are ordered on demand but are not stocked in the warehouse.
Created from Nonstock Item in NAV: Overview
When creating transactions in NAV, “Created from Nonstock Item” allows users to associate a nonstock item with a specific document, such as a sales order or purchase order. This process essentially allows businesses to handle nonstock items like stock items in certain situations, though without the need to manage inventory for the item.
In simple terms, a nonstock item may be used as part of a larger transaction (e.g., a product that is sold alongside other inventory items) or for specialized services. While these nonstock items do not have inventory levels, they can still be included in sales, purchase, or service-related transactions.
How Does it Work?
The key functionality of creating from nonstock items in NAV comes into play when generating a document (such as a purchase order or sales invoice) that contains a nonstock item. For example:
- Sales Order: If a customer orders a nonstock item, such as a service, you can create a sales order in NAV that includes this item. Though it’s not physically stored in inventory, it is still treated as part of the transaction.
- Purchase Order: In a purchase order, nonstock items are ordered from vendors but do not need to be tracked in inventory. The nonstock item is used in the transaction for tracking purposes but is not part of the warehouse stock.
- Production Orders: Nonstock items can also be used in production processes. For instance, if a specific service or tool is needed to assemble or manufacture a product, a nonstock item may be used for the task.
In each of these cases, the item is still tracked through the transaction but doesn’t require the same handling as physical stock items. This makes it a flexible solution for businesses that deal with both tangible and intangible products.
Setting Up Nonstock Items in NAV
The setup for creating nonstock items in NAV is fairly straightforward but requires attention to detail to ensure that the item is properly defined and can be integrated into business processes. Here are the key steps involved in setting up a nonstock item:
1. Define the Nonstock Item Type
To create a nonstock item in NAV, first, you need to specify its type. Common types of nonstock items include:
- Service: Used for services that are rendered to customers.
- Item: A specific product or consumable that is not kept in inventory.
- Expense: For items that are purchased and used without being tracked as stock.
2. Assign a Nonstock Item Code
Each nonstock item in NAV requires a unique item code for identification. This code is used in sales orders, purchase orders, and other documents to recognize the nonstock item. The code should be descriptive enough to provide context to users who are working with it, such as “Consulting Service” or “Specialized Tool.”
3. Configure Sales and Purchasing Information
For nonstock items, you’ll need to set up specific information related to sales and purchases. This could include:
- Price: Define the cost or price associated with the nonstock item, as it will be included in transactions.
- Vendor and Customer: Link the item to specific vendors (for purchasing) or customers (for sales).
- GL Accounts: Nonstock items should be linked to general ledger (GL) accounts, as they will affect the financial reporting of the business.
4. Assign Tax Information
Since nonstock items may involve services or other types of non-tangible goods, you’ll need to ensure that tax information is properly set up. For example, services may be taxed differently than physical goods. This setup ensures that when the nonstock item is used in a transaction, the correct tax rates are applied.
5. Item Tracking
Though nonstock items do not require inventory management, some businesses may still want to track them for reporting purposes. If this is the case, you may enable tracking options within NAV to ensure that nonstock items are captured in financial reports or other business documents.
Use Cases for Created from Nonstock Item
The “Created from Nonstock Item” functionality in NAV is particularly useful in the following scenarios:
1. Service-Based Businesses
Businesses that provide services, such as consulting, maintenance, or repairs, often deal with nonstock items. A consulting firm might sell a service like a “Marketing Consultation” that is treated as a nonstock item in NAV. When a customer places an order, the sales order is created with the nonstock service item, and the transaction is processed without needing to track inventory.
2. Specialized Projects and Custom Orders
For companies that deal with customized products or special projects, nonstock items can be used to track special components, labor, or services that are needed for the project. For example, a custom manufacturing company might need specific nonstock parts that aren’t part of regular inventory but are required for the project.
3. Consumables and Office Supplies
Even though certain items might not be tracked in inventory, they are still part of daily business operations. Nonstock items in NAV allow for easy tracking of consumables like office supplies or raw materials without having to worry about complex inventory management.
4. Third-Party Services
For businesses that outsource certain services, such as shipping, delivery, or third-party logistics, nonstock items can be used to track these external costs. This is particularly useful in industries like retail, where third-party vendors provide services that are billed separately.
Advantages of Using “Created from Nonstock Item” in NAV
1. Simplified Business Processes
By integrating nonstock items directly into sales and purchase orders, NAV allows businesses to streamline operations. Employees don’t need to manage physical inventory but can still account for the usage and costs of nonstock items through transactions.
2. Flexibility for Various Industries
The “Created from Nonstock Item” feature in NAV is highly flexible, catering to various industries and business models. Whether a business deals with services, specialized components, or consumables, NAV allows these items to be seamlessly integrated into the company’s transactions.
3. Improved Reporting and Tracking
Even though nonstock items don’t require inventory management, businesses can still track their financial impact. NAV allows nonstock items to be included in financial reports, offering insight into costs, sales, and profitability.
4. Cost Management
For companies that deal with nonstock items, NAV enables better cost management. Since nonstock items are included in the system’s cost structure, businesses can manage expenses, track profits, and adjust pricing accordingly.
Conclusion
The “Created from Nonstock Item” functionality in Microsoft Dynamics NAV is a valuable tool for businesses that need to manage services, consumables, or other non-inventory items. Whether it’s handling specialized orders, tracking third-party services, or managing consumables, this feature ensures that nonstock items are integrated into business operations without the complexity of inventory management.
By understanding how to set up and utilize nonstock items in NAV, businesses can achieve greater flexibility, streamline operations, and improve their overall workflow. From simplified sales and purchase transactions to improved reporting and cost management, the integration of nonstock items can significantly enhance the way businesses manage their processes.
FAQs
- What is a nonstock item in NAV? A nonstock item in NAV is a product or service that is not tracked in inventory but is part of business transactions.
- How does “Created from Nonstock Item” work in NAV? This functionality allows users to associate nonstock items with sales, purchase, or production documents, enabling smooth business processes without inventory tracking.
- What are examples of nonstock items in NAV? Examples include services (e.g., consulting), consumables (e.g., office supplies), and special order items.
- Can nonstock items be included in financial reports? Yes, nonstock items can be tracked for financial purposes, and their costs or revenue can be included in reports.
- Do nonstock items require inventory management in NAV? No, nonstock items are not tracked in inventory but are still part of financial transactions.
- How can I set up nonstock items in NAV? Setting up nonstock items involves defining their type, assigning an item code, configuring sales/purchase information, and linking them to relevant GL accounts and vendors.
