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Inventory Posting in D365 BC (NAV): Concept Explained!!

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Dynamics 365 Business Central

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Mar 28, 2023

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  • The article titled "Purpose of this Blog" aims to explain the concept of Inventory Posting in D365 Business Central (NAV) in a concise and easy-to-understand manner.
  • The article provides a diagram that visually represents the concept of Inventory Posting.
  • Inventory transactions in D365 Business Central result in two types of postings: Quantity and Value.
  • Quantity postings represent the change in inventory quantity and are stored in item ledger entries.
  • Value postings represent the change in inventory value and are stored in value entries. Multiple value entries can exist per item ledger entry.
  • For Work-in-Progress (WIP) inventory, there is a special quantity posting that accounts for capacity, which is stored in capacity ledger entries.
  • Item ledger entries are applied against each other to link inventory increases with inventory decreases, and this information is stored in item application entries.
  • Inventory postings can be made directly from an item journal or indirectly from a purchase line. The entry type determines the G/L account to post to, not whether it is an inventory increase or decrease.
  • The sign of the quantity or valued quantity on the item ledger entry or value entry determines whether it is an inventory increase or decrease. For example, a sales entry with a positive quantity indicates an inventory decrease caused by a sale, while a sales entry with a negative quantity indicates an inventory increase caused by a sales return.

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