Drag and Drop Question You are setting up a new item in Dynamics 365 Business Central. The item is a tangible good with an inventory asset value. The item is acquired by purchase specifically for…

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Dynamics 365 Business Central - Item Card Configuration

Scenario recap: A tangible good, tracked in inventory, purchased on-demand per sales order.

Field 1: Type → Inventory

BC offers three item types:

• Inventory - physical, tangible goods tracked with stock levels and valuation
• Non-Inventory - physical goods not tracked in stock (e.g., consumables, drop-shipped items you don't count)
• Service - labor, services, or non-physical offerings

The requirement says tangible good with an inventory asset value, which maps directly to Inventory. This enables bin tracking, costing, and inventory ledger entries.

Common mistake: Choosing Non-Inventory for physical items. Non-Inventory skips stock tracking, so you'd have no inventory asset value - contradicting the requirement.

Field 2: Replenishment System → Purchase

This controls how stock is replenished:

• Purchase - stock arrives via a purchase order from a vendor
• Assembly - built from component items via an assembly order
• Transfer - moved from another location

The requirement says acquired by purchase - so Purchase is the only correct choice.

Common mistake: Selecting Assembly when the item is manufactured/built, but this item is explicitly bought from a supplier.

Field 3: Reordering Policy → Order

This controls when and how much to replenish:

• Order - creates exactly one purchase order per demand, one-to-one linkage
• Lot-for-Lot - batches multiple demands into one order within a time window
• Fixed Reorder Qty / Max Qty - stock-based triggers, not demand-driven

The requirement says purchased specifically for each new instance of demand - pure make/buy-to-order behavior. Order policy creates a dedicated purchase order for each individual demand (sales order line), maintaining a hard link between supply and demand.

Common mistake: Choosing Lot-for-Lot, which also avoids excess stock but consolidates multiple demands into one order. That breaks the "specifically for each new instance" requirement, since multiple demand lines get bundled together.

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