Dynamics NAV has an ‘Inventory Value Zero’ field in the item table that is not visible on the page (for some unknown reason). Adding it to the page allows you to have items with no inventory values, this is useful if you managing inventory on the behalf of someone else or if you want to keep track of material that you have expensed (like packaging materials, etc..).

An Item setup like this can be transacted like any other item in Dynamics NAV, exept it can not be produced. If you try to enter a production order with an item flagged as ‘Inventory Value Zero’ you will get an error message saying ‘Inventory Value must be equal to ‘No’ in Item: XXXX’ when you refresh the production order.

When purchasing an item  flagged as ‘Inventory Value Zero’ you will not get any invetory related transactions in the G/L, only the Purchase transaction in the P&L and the AP transaction in the BS.