How to use service items in Dynamics NAV

How to use service items in Dynamics NAV?

Do you sell items but also services associated with these items? For example, you may sell office supplies but offer an installation service. Until the Dynamics NAV 2017 version you had to configure this service as an accounting account or a product associated with an accounting account. This solution was far from optimal, since it generated negative stock.

For this reason, from the Dynamics NAV 2017 version the service item was presented. It is a product that you can use without generating negative stock. In addition, it will help you differentiate between product sales and service sales.

Below, we are going to configure it and explain how to use it.

How to create a service in Dynamics NAV?

To create services we have to access to the product table and press the ‘New’ button, which will show us the window to create a new product. As we do with the registration of any other product, we will complete all the necessary mandatory information and that additional information that we need for our work operations. Finally, it is very important to select ‘Type’ – ‘Service’ as shown below.

producto servicio Dynamics NAV

When the record is complemented and saved, the service item will be created in the product table. We will also observe that we do not have stock, as it is a good that is created and consumed at the same moment, it does not have inventory. And yes, it has a cost and a price to be able to market it.

producto servicio Dynamics NAV 2

How to make a sales order with a service-type item?

Now that we have created the service type item in Dynamics NAV, let’s see how it behaves when we place a sales order with this service.
As we can see in the image the service entrance is by choosing the ‘Type’ – ‘Product’. The rest of the information necessary to complete the service line is the same as the
of a product except the ‘Code. Warehouse ‘, since not having an inventory does not have a warehouse either.

producto servicio Dynamics NAV 3

What accounting movements does a service-type item generate?

Finally we will see what kind of movements generates a service in accounting and compare them with those generated by a product. As we can see in the following image, the movements of the service, as it is created and used at the moment, does not generate pending amounts of delivery, as it is generated by the movement of the product.

producto servicio Dynamics NAV 4