Every inventory transaction records two things:

  1. Quantity Change
  2. Cost (value) Change

Business Central stores these in two different tables.

Item Ledger Entries (Quantity)

  • Shows how many items moved
  • One entry per item transaction
  • Tracks quantity only
  • Cost fields are Flow Fields (calculated, not stored)

Think of it as: “Stock movement record”

Value Entries (Cost)

  • Shows how much the item costs
  • One or more entries per item transaction
  • Stores’ actual values (direct cost, indirect cost, item charges, adjustments)
  • Posts amounts to Inventory G/L Accounts

Think of it as: “Cost breakup record”

Example – ( Purchase Order )

  • Item: Athens Desk
  • Quantity: 1
  • Unit Cost: $1,000
  • Indirect Cost: 10% = $100
  • Total Cost = $1,100

Item Ledger Entries

Field

Value

Quantity

1.00

Cost Amount (Actual)

$1,100.00

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Value Entries (Cost)

  •  

Value Entries

Field

Value

Direct Cost

$1,000.00

Indirect Cost

$100.00


By Ahmad Subhani

Microsoft Certified Consultant | Chartered Management Accountant | Working At Adrem Technologies As a Business Central Functional Consultant

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