Service items vs. Not stocked Products vs. Charges

In AX 2012 the Item model group property Stocked product was introduced.

The not stocked products (i.e. products with Stocked product = No) lie somewhere between Service items (i.e. products with Product type = Service) and Charges, without providing a clear distinction between types. Here a comparison with the primary disadvantages highlighted:

	Service item	Not stocked product	Charge
Product type	Service	Item or Service	n/a
Item model group – Stocked Product	Yes	No	n/a
Add to BOM/production	Yes	No	No
Inventory transactions	Yes	No	No
Inventory on hand	No	No	No
Automatic addition to order	No	No	Yes
Integrate in Product Release Workflows / PLM	Yes	Yes	No
Visibility during order entry	Normal	Normal	Reduced
Texts printed on reports	Normal	Normal	Reduced
SO Picking	Optional	No	No
SO Packing	Optional	Included in quantity setting “Picked quantity and not stocked product”	No
SO Invoice	No quantity setting to include service items that have not been picked or packed	No quantity setting to include service items that have not been picked or packed	Automatic
Advanced Warehousing	No	No	No
Consequences
Why does it exist?	For Services and item without stock levels (or with uncounted stock levels e.g. screws, water). They can be used like any product, however their use has no impact on stock levels and vice versa.	Unsure why this was introduced instead of fixing the disadvantages of the charges and service items	For Freight, Insurance, Packaging
Question: Find all uses of a product	Go to inventory transactions directly on item	No inquiry available directly from item	No direct inquiry available
Question: Find all non-stock/service products	Directly visible in released product list	More or less visible depending on the naming of the item model group – for a good overview add it to the grid as personalisation	Separate parameter forms
Unplanned use in BOM e.g. as proper component in manufacturing or as dummy component is sets	No problem	Not possible	Not possible
Change to normal stocked item	Not possible	Not possible	Not possible
Recommendations
Scenario 1: Probably as MS intended, less flexibility, no mod desired	Use service items only for items to be used in BOMs; do not allow sale of service items.	Use not stocked products for all sellable services. Note: Reporting cannot be based on InventTrans.	Can be replaced by not stocked products, however note that some standard features expect the use of charges e.g. e-Invoice (ITA) expects the Bollo to be a charge. ==> keep using charges for items that clearly have a charge character.
Scenario 2: More flexibility (Service items sold and used in BOMs. Separate items not desired.)	Only use service items.	Do not use not stocked products	Use as intended.

Comments on the primary disadvantages

Service item – Picking and Packing requirements

Not stocked products are considered int the Quantity setting “Picked quantity and not stocked product”, i.e. they do not have to be picking. Service items do not have the corresponding setting, i.e. some way hast to be found to get the service items on the invoice

• Option 1: Workaround that includes the service items in picking.
• Option 2: Implement a modification to provide support for service items when in the Quantity setting “Picked quantity and not stocked product”

Not stocked product – no inventory transaction, can’t be added to BOM

As there are no inventory transactions the not stocked products cannot be added to a BOM, i.e. they cannot be used for floor stock or outside production service items. Reports based on (or inner-joining e.g. to get costs) InventTrans will not include these items.

Charges – reduced visibility during sales order entry, less texts

Users get used to the reduced visibility and printing of texts can be mitigated by adjusting the reports – still items on the sales order provide a more intuitive handling.

Further reading

• https://www.sikich.com/insight/how-to-set-up-floor-stock-in-dynamics-365-for-finance-and-operations/
• https://www.cloudfronts.com/stocked-product-in-item-model-group-dynamics-365-for-finance-operations/
• https://cloudblogs.microsoft.com/dynamics365/no-audience/2011/06/01/service-products-in-microsoft-dynamics-ax-2012/