Drag and Drop Question You are configuring Dynamics 365 Business Central for a company. You need to create items. Which item types should you use? To answer, drag the appropriate item types to the cor

The correct answer is Inventory; Non-Inventory; All. Dynamics 365 Business Central - Item Types Explanation > Note: The scenario descriptions weren't included in your question text - only the correct answers. The explanation below covers the item types and infers the likely scenarios based on common exam patterns. --- Item Types in

Inventory

Question

Drag and Drop Question You are configuring Dynamics 365 Business Central for a company. You need to create items. Which item types should you use? To answer, drag the appropriate item types to the correct scenarios. Each item type may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content. NOTE: Each correct selection is worth one point. Answer:

Exhibit

Answer Area

Drag items

AllInventoryNon-InventoryService

Correct arrangement

Inventory
Non-Inventory
All

Explanation

Dynamics 365 Business Central - Item Types Explanation

Note: The scenario descriptions weren't included in your question text - only the correct answers. The explanation below covers the item types and infers the likely scenarios based on common exam patterns.

Item Types in Business Central

Type	Inventory Tracked?	Physical Item?	Typical Use
Inventory	Yes	Yes	Goods bought/sold/stored in a warehouse
Non-Inventory	No	Usually yes	Items purchased for direct use, not stocked
Service	No	No	Labor, fees, intangible services

Placement Explanations

1. Inventory

Used for physical goods that must be quantity-tracked in your warehouse or storage locations. Posting transactions with this type affects the inventory valuation ledger and requires inventory adjustments. Typical scenario: "A company sells physical products and needs to track stock levels and costs."

2. Non-Inventory

Used for items that are purchased and resold but not warehouse-tracked - often consumables, packaging, or drop-shipped goods. No inventory ledger entries are created. Typical scenario: "Items are purchased directly for a job or customer without being stocked."

3. All

In BC, "All" appears in filter/selection contexts (e.g., item tracking code setup, where "All" means the rule applies to every transaction type - inbound and outbound). Typical scenario: "A tracking or posting rule should apply regardless of item type."

Common Mistakes

Confusing Non-Inventory with Service - Non-Inventory can still be a physical product; Service is strictly intangible.
Using Inventory for everything - This creates unnecessary warehouse complexity and overhead for items never stocked.
Misplacing "All" - It is not a standalone item type for creating item cards; it's a filter/scope value used in configuration contexts.

Topics

#item types#inventory item#service item#non-inventory item

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