In D365FO, products can be defined as stocked or not stocked. If a product is stocked, it is carried in physical inventory and on-hand is maintained for it. If a product is not stocked, no inventory related functions are supported, such as transfer journals, counting, and it will not track on-hand inventory.

Not stocked products are defined in the Item model group form. If the stocked product check box is cleared, the products that are associated with this item model group will be not stocked.

A not stocked product is a product of the item or service type that cannot be tracked in inventory but can still be handled through the receiving and shipping process. Also, master planning will include not stocked products.

A not stocked product is accounted for as a revenue or expense only.

Figure 2.23 Item model groups form

Example: Not Stocked Item

Contoso Entertainment Systems sells consulting services to help install a home theater system. Consulting is set up as a service product and is not stocked in the warehouse. This enables Contoso to sell consulting without having to track inventory.

NOTE: For more information about the setup of not stocked products on the Item model group, refer to the Inventory Management Setup module.

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