Setting up stockkeeping units in Business Central for each location

What stockkeeping units in Business Central do

An item card describes a product once for the whole company. That works until the main warehouse should reorder from a vendor, but a branch should be refilled by transfer. It also breaks when one site needs more safety stock than another. The stockkeeping unit card holds those differences for a single item and location.

Item number plus location code, variant code or both identify an SKU. Descriptions, item categories, posting groups, units of measure and prices stay on the item card. The SKU then overrides the replenishment, planning and warehouse fields that may vary by place.

Do you need SKUs in Business Central?

A company with one warehouse and no variants rarely needs SKUs. The case for them starts with a second location that plans differently. It also starts with a hub that supplies branches, or with variants whose demand is far apart, such as a fast-selling size next to a slow one.

There is a catch worth knowing. When planning runs for an item and location that has demand but no SKU, it builds a temporary one from the item card. So you can mix SKUs for some locations with none for others. Even so, the results are easier to explain when every planned location has its own card.

Creating stockkeeping units in Business Central in bulk

From an item card, open Stockkeeping Units under related information. Then choose New to create a single card. For volume, the Create Stockkeeping Unit batch job is quicker. You filter the items and pick per location, per variant or both. You also decide whether existing cards get replaced.

New cards copy their starting values from the item, so first set the item card to your most common case. After that, edit only the cards that differ. Edit in Excel on the Stockkeeping Units list lets you adjust reorder points and lead times for many cards at once.

How SKUs change planning in Business Central

The replenishment system on the SKU can be Purchase, Transfer, Assembly or Prod. Order. If you choose Transfer and fill the Transfer-from Code, planning knows the hub supplies that branch. The requisition worksheet then suggests a transfer order instead of a purchase. The hub's own SKU sees that transfer as demand.

Each SKU holds the reordering policy, reorder point, maximum inventory, safety stock and lead time calculation. That lets a busy distribution center order in large lots while a small depot stays lean. Our guide to reordering policies explains each policy. Here the point is simple: they now apply per location.

Cost and upkeep for Business Central stockkeeping units

Each SKU shows its own unit cost and last direct cost. Items on the standard costing method can carry a different standard cost per location. With the average method, the Inventory Setup page decides whether the average works per item or per item, location and variant. That choice changes how the figures read.

SKUs also hold physical inventory counting periods, so you can count fast movers in one site more often. The upkeep is real, though. When a vendor or lead time changes, the item card and every SKU may need the update. We can help you decide which fields truly need to vary.

Business Central stockkeeping units: frequent questions

Is a stockkeeping unit the same as an item?

No. The item is the product record for the whole company. A stockkeeping unit is an extra card for that item at one location or for one variant. It holds the planning, cost and warehouse values that differ from the item card. So the item stays the master record, and the SKU adds detail on top of it. Most items never need an SKU at all.

Does planning use the item card or the SKU?

Where an SKU exists for the item and location, planning uses the SKU. Where none exists, planning falls back to the values on the item card for that location. That fallback works, but it can confuse people. For that reason, we suggest keeping SKUs for every planned location. Then each planning line has one clear source for its settings.

Can I create stockkeeping units for all items at once?

Yes. The Create Stockkeeping Unit batch job builds cards for a filtered set of items across the locations or variants you choose. It copies values from each item card. Then you adjust only the cards that should differ. First, set the item cards to your most common case. That way, the new cards start out close to right.

Do SKUs give me separate inventory value per location?

Inventory is always tracked per location in the item ledger. SKUs add a separate unit cost display. For standard cost items, they also add a standard cost per location. The average cost calculation type in Inventory Setup matters too, so check it before you create cards. It decides how the average is worked out.

Do I need the Premium license to use stockkeeping units?

No. Stockkeeping units, locations, transfers and the requisition worksheet are part of Essentials. Premium is needed only when the replenishment system on a card points to production orders, because manufacturing sits in the Premium license. So most distributors and retailers can use Business Central stockkeeping units without any license change.

Related pages on Business Central stockkeeping units

Business Central stockkeeping units sit between locations and planning. These pages explain how locations are set up, which reordering policy suits an item and how inventory works overall. They also show how the requisition worksheet uses the result, so you can plan each SKU with confidence. For the product detail, see Microsoft's guide to setting up stockkeeping units.