When you work as a purchaser in Business Central, you often need to create new items before you can buy them. Creating a purchase item means filling out the right fields on the item card so the item behaves correctly in inventory, finance, and purchasing. This article walks you through the fields that matter.
Start the new item from the item list by selecting New. If templates are set up in your system, Business Central suggests one and prefills part of the item card for you. The base unit of measure is hard to change afterwards, so set it correctly from the start.
Use the costing method that finance has defined, or follow the template if it sets it for you. Define the general product posting group, the VAT product posting group, and the inventory product posting group. On the replenishment tab, mark the item as a purchase item and add the vendor number and lead time.
If you buy in a different unit of measure than the base unit, set it up in the unit of measure table first. You can block a new item so purchasers cannot buy it yet, then release it when you are ready.
Starting a new purchase item from the item list
From the item list, select New. If templates are defined in your system, a template will pop up and suggest that you use a setup you already have. The template prefills some of the information on the item card. If no template applies, you go directly to a blank new item.
In a typical setup, the item number is filled in automatically, and the number series can be defined by the template. After that, enter the description of the item you are going to create and buy.
Setting the base unit of measure
Set the base unit of measure carefully. It is important to get this right from the start because it is difficult to change afterwards. The base unit of measure should be the unit that inventory handles the item in.
Costing method and unit cost on the cost and pricing tab
On the cost and pricing tab, fill in the costing method. Ask the finance department which costing method to use if they have not already told you. If the costing method is predefined by the item template, following that is fine.
Define the unit cost if you already know what the item is expected to cost. You can add it here.
You can also define special purchase prices. If you already know the purchase prices you want for specific vendors, add them here or from the menu.
Posting groups for purchase items
Define the general product posting group, the VAT product posting group, and the inventory product posting group, if they are not already filled in from the template you selected.
Tariff number and country of origin for Intrastat
If you, or someone in your company, report Intrastat every month, define the tariff number and the country/region of origin code. It is easier when you have this information in place from the beginning.
Replenishment settings for purchase items
On the replenishment tab, set the replenishment system to Purchase so the item is treated as a purchase item. Then fill in:
- The lead time calculation, if you know how long it takes to get the item from the vendor.
- The vendor number.
- The vendor item number, if the vendor uses a specific number for the item.
- The purchase unit of measure code, if you want to buy the item in a different unit than the base unit of measure.
Setting up additional units of measure
If you buy the item in a unit other than the base unit of measure, set that unit up first in the unit of measure table. You reach it from the item under Navigate, Item, Units of Measure.
For example, if you buy the item in boxes and a box holds ten pieces, enter the quantity per unit accordingly. You can define as many units of measure as you like. Once they are set up, you can select between the different units of measure when you look up the purchase unit of measure on the item.
Blocking and releasing the item
If you do not want purchasers to buy the item yet, block it on the item card. When you are ready to buy it, release it.
These are the fields you need to fill in when creating a purchase item in Business Central.
Q&A
How do I create a new purchase item in Business Central?
From the item list, select New. If a template applies, accept it to prefill part of the item card. Then enter the description, set the base unit of measure, fill in the costing method and posting groups, and on the replenishment tab set the item as a purchase item with the vendor number and lead time.
Why is the base unit of measure so important to get right?
The base unit of measure is the unit that inventory handles the item in, and it is difficult to change afterwards. Set it correctly when you first create the item.
Which posting groups do I need to set on a purchase item?
You need the general product posting group, the VAT product posting group, and the inventory product posting group. These may already be filled in by the template you selected.
When do I need to fill in the tariff number and country of origin code?
Fill them in if you or someone in your company reports Intrastat every month. Having the information from the start makes the reporting easier.
How do I set up a purchase unit of measure that differs from the base unit?
Set up the unit in the unit of measure table first, reached from the item under Navigate, Item, Units of Measure. Enter the quantity per base unit, for example ten pieces per box. Then select that unit as the purchase unit of measure on the item.
How do I stop purchasers from buying an item that is not ready?
Block the item on the item card. Release it again when you are ready to buy it.