Home » AX 2012 Service Items » Service Items in AX 2012

Service Items in AX 2012

Hi Friends,

I posted about PO accounting last time. Now it’s time to discuss something about service items with respect to AX 2012.

Service Items

Service items, unlike normal item, doesn’t have inventory. Service items are intangible (which we cannot see in general) and hence we can’t see the on hand Qty of service items.

Now another important point to note here is that service items are not considered when inventory closing is performed. The reason is obvious, we don’t receive or issue service items so how can we perform closing.

Item Model Group for Service Item

AX 2012 has introduced a new concept called Stocked product. Now the biggest question is should the service item have stocked product checked? I will list out two aspects.. decision we can take upon analysis:

1. Stocked product unchecked: Since we don’t maintain stock of service items, why should the stocked product be checked. Hence the best practice is keep the stocked product unchecked.

Keeping item model group unchecked means it has got nothing to do with inventory posting. At the time of Purchase expenditure for expense account will be debited. At the time of sales, revenue account is directly hit.

Non Stocked2

2. Stocked product checked:

As stated, stocked product should be unchecked. But the question is what will be the difference if i keep it checked or not. Now, certain important points here to note:

i. When stocked product is checked, system maintains transactions of service items which it doesn’t in case the stocked product is unchecked. However, no on-hand is maintained.

ii. On PO invoice for stocked service items, purchase expenditure for product account is hit and not purchase expenditure for expense. This is obvious as we are treating them as stocked product.

iii. In case of AX for Retail, if you want to post transactions for the service item then that item must be stocked. Otherwise there will be an issue in statement posting.

[This (statement posting) was a bug and is resolved in CU 4 update of AX 2012]. For more detail see this link:


Stocked 2

AX 2009 didn’t had any stocked product concept so there was only one option for service items. We generally booked expense for service items.

Well before i finish, another important point for stocked service items is that they can be included in master planning.

Hope you had good reading. Please feel free to post any comment/suggestions. Queries are most welcome.


Let’s share knowledge…



  1. sunnysanthu says:

    Good one pranav. I have a doubt, when we uncheck the “Stocked product” Inventory transactions will not get posted. Then at a later date, if we want to know what is the total purchases (in terms of amount) for that particular item.

  2. Pranav's says:

    Hi Santosh,

    In case of non stocked service item, inventory transactions are not created and purchase expenditure for expense account is hit.

    I looked into this issue and found that there is no linkage from item to see the purchases. We can develop a report for this requirement. On report further, we can apply two logics, one is through creating a report based on purchase lines such that nonstocked service items will be selected with line status as invoiced and the other option is using the ledger trans as system keeps track of original transactions and thereby items.


  3. Meera Sg says:


    I would like to get your advice. What is the best way to put training courses for a public sector org – items or services.? I realize there are both pros and cons and I cannot decide either way. This org’s main revenue is these training courses. It affects invoicing too. Any suggestion would help!


    • Pranav's says:

      Hi Meera,

      The term stocked product should be checked for those items which physically exists. Stocked products can be moved between location and it can be tracked like serial number. Whereas, non stocked products are mainly used for service items, basically non inventory items. I will suggest you yo use non stocked items. From accounting perspective also, non stocked items will be suitable.


  4. Deep says:

    Hi Pranav,

    I am trying to understand which one would suit my implementation that is product master or category master. All i want to know is when i procure some stationery would it be counted as my stock as am buying in bulk but defined in ax as cateogry. Further issuing of such items will i use inventory module to issue the product for internal use

    • Pranav's says:

      Hi Deep,

      Items like stationery are typical expense items. I will suggest you to create those items as non stocked service items. Expense will be realized when you post the PO. If you make it stocked item then on hand inventory will exist and then it’s consumption will be required to be posted using movement journal and hence you will be required to use inventory module..


  5. Abdul Rahman says:

    Hi Pranav

    We have service items with stocked product checked in the item model group. When we make purchase invoice, the cost is available in the transaction. But the cost is not available in the Sales Order Invoice. Can you please explain?


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