In the Type field on the Item Card you can select what the item is used for in our business and consequently how it is managed in Business Central. The three options are:
The Inventory type involves full tracking of inventory quantity and value. Therefore, all item transaction nature codes are supported, and items of type Inventory can be used with all item-handling features.
The Service and Non-Inventory types do not involve tracking of inventory quantity and value. Therefore, only selected item transaction nature codes and features are supported.
Non-Inventory items can be added as components to production and assembly BOMs, service items can’t.