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PO Accrual using Item - Service

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Posted on by CU23012013-0

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Hi Community,

We would like to use the PO accrual functionality of BC for PO Items tagged as inventory but saw another article that Service Items can't be received, thus no accrual can be recorded. Is there a workaround for this aside from Recurring Journal accrual? Goal is to have accruals on service items based on PO.

Here are the links:

https://community.dynamics.com/forums/thread/details/?threadid=3494547d-3ede-4825-bf85-4031adfca3c1

https://community.dynamics.com/forums/thread/details/?threadid=03c155ed-97ea-ee11-a204-6045bdeb8873#:~:text=You're%20getting%20this%20error%20because%20in%20the,Account%20and%20Crediting%20an%20Inventory%20Accrual%20Account.

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Dynamics 365 Business Central

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AndrewThomas81 496 on at

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Service items can be received, but they do not generate expected cost. So as standard you would have to accrue manually, I wish this was possible with all items and G/L Accounts.

Kind Regards

Andrew Thomas
https://www.usebusinesscentral.com/
https://www.youtube.com/@usebusinesscentral

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Aziz Skhiri 366 on at

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Hey, Standard PO accrual in Business Central only works for Inventory items. Service items don’t create any accrual on receipt this is by design. The quickest workaround is to change your Service items to Non-Inventory type. If you enable Expected Cost Posting in Inventory Setup, you’ll get the accrual behavior you need when receiving the PO. That’s the cleanest solution without custom code or recurring journals. Test it on one item first and see if it fits your process.

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Valentin Castravet 32,208 Super User 2026 Season 1 on at

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The system does not have functionality to accrue non-inventory or service items the same way it does for inventory items through expected cost posting.

Your only options are to do it manually, for example at month-end by summing all received not invoiced non-inventory and service item lines, or to convert those items to inventory items, though I would not recommend the second option.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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Teagen Boll 1,436 Super User 2026 Season 1 on at

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You would need to manually post the accrual. You can use the Purchase Lines page and there is a column called Amt. Rcd. Not Invoiced. You can then filter further or send this data to excel or even use a BC analysis view to get the accrual amount you need to post in BC:

I would then post that using the recurring general journal and post a Reversing entry so you can record the amount at month end and have it reverse a day later (or when you specify). You can find more info here: Working with general journals to post directly to G/L - Business Central | Microsoft Learn

Best,

Teagen

Catapult ERP

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OussamaSabbouh 12,965 Super User 2026 Season 1 on at

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Hello,

No standard workaround in base Business Central: PO accrual/expected cost posting works for item receipts, and Microsoft states expected costs are managed only for item transactions, so service purchases don’t go through the same receive-then-accrue flow; for services, the usual approach is still manual/recurring accruals or a custom extension if you need the accrual to be driven directly from the PO rather than the invoice.

Regards,
Oussama Sabbouh

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