Inventory
The stock of physical goods a business holds for sale, production, or consumption — tracked by item, location, and quantity in an ERP.
Inventory is the stock of physical goods a business holds for sale, production, or consumption. In Business Central and Dynamics 365 Supply Chain Management, every inventory transaction is recorded in the item ledger (quantity) and the value entry table (cost), tied to a costing method — FIFO, LIFO, Average, Standard, or Specific. Inventory is held at one or more locations, optionally subdivided into bins, and tagged with serial numbers, lot numbers, expiry dates, or item variants. Inventory valuation flows to the GL through inventory posting groups and is reconciled against the balance sheet at period close.