If I wish to create a new item for my subscription, I can of course go to the item list like I’ve done here, I’ve made a filter, so it only sees the items of type service.
This is what happens in the video
If you run subscriptions in Business Central, you can create the items behind them as service items and have them set up correctly with very little manual work. By using an item template and a default deferral template, you make sure each new subscription item is ready to use the moment you add it to a subscription.
An item template fills in the item number from your number series, marks the item as a service item, and applies the base unit of measure and posting groups automatically. You only need to enter the description.
A default deferral template on the item means the deferral is inherited every time you add the item to a subscription. If you set up a deferral template for sales over three months, that setup follows the item automatically.
If you do not set a price on the item, it inherits the standard unit price. You set up prices on subscription items the same way you set up prices on any other item in Business Central.
Creating a service item for a subscription
To create a new item for a subscription, go to the item list. It helps to apply a filter so you only see items of type Service. From there you click New.
If your company uses item templates, choose the relevant one for service items. Using the template saves time and keeps the setup consistent across all your subscription items.
What the item template fills in automatically
When you use an item template, the system handles most of the setup for you:
- The item gets a number based on your number series setup
- The item is marked as a service item
- The base unit of measure is set
- The posting groups are applied
That leaves you with just the description to enter. For example, if you already have items for a yearly membership and a monthly membership of a club, you can create a quarterly membership by copying the text from one of the existing items and adjusting it to read “quarterly”.
Setting up a default deferral template on the item
On the item you have the option to set up a default deferral template. This is useful when an item should always be deferred the same way. If you add a deferral template here, the deferral is inherited automatically when you add the item to a subscription.
For a quarterly membership you might set up a sales deferral over three months. Once that template is on the item, you do not have to think about it again when you use the item on a subscription.
You also have the alternative of handling the deferral directly in the subscription instead. The default deferral template on the item is the right choice when the deferral never changes for that item.
Pricing the subscription item
If you do not add a price to the item, it inherits the standard unit price. Setting up prices on a subscription item works exactly like setting up prices on any other item, so there is nothing new to learn here.
Adding the item to a subscription
Once the item is created, you can go to your subscription and add it whenever you need it. With the template and the deferral template in place, the item arrives ready to use.
Q&A
What item type should a subscription item have in Business Central?
A subscription item should be of type Service. You can apply a filter on the item list to see only service items when you work with subscriptions.
What does an item template do when you create a subscription item?
The item template assigns a number from your number series, marks the item as a service item, sets the base unit of measure, and applies the posting groups. You only need to add the description yourself.
How do you make a deferral apply automatically to a subscription item?
Set up a default deferral template on the item. The deferral is then inherited automatically every time you add the item to a subscription. For example, a sales deferral over three months suits a quarterly membership.
Can you handle the deferral in the subscription instead of on the item?
Yes. You can set the deferral directly in the subscription. Setting a default deferral template on the item is best when the item should always be deferred the same way.
What happens if you do not set a price on a subscription item?
The item inherits the standard unit price. You set up prices on subscription items the same way you set up prices on any other item in Business Central.