A Stockkeeping Unit (SKU) is a record that overrides specific item card settings for a particular combination of item, location, and variant. When Business Central runs supply planning, it looks for an SKU first, if one exists for the relevant item and location, it uses the SKU’s planning parameters instead of the item card’s defaults. This makes SKUs essential in multi-location or multi-variant environments where replenishment rules differ by site.
When to Use SKUs
You don’t need SKUs if all locations use the same planning settings. A single item card is sufficient when replenishment method, lead times, reorder quantities, and vendor are identical everywhere.
SKUs are useful when:
- Different locations use different vendors or purchase lead times
- Replenishment policy varies by location (e.g., one warehouse replenishes from production, another from a supplier)
- Safety stock or reorder points differ between locations
- You have variants with location-specific stocking rules
Creating an SKU Manually
- Search for Stockkeeping Units using
Alt + Q. - Select New to open a blank SKU card.
- Set the Item No. field to the relevant item.
- Set the Location Code to the location this SKU applies to.
- If applicable, set the Variant Code.
- Configure the planning fields as needed (described below).
- Save the record.
Alternatively, open the Item Card and select Navigate > Stockkeeping Units to create an SKU directly from the item.
Creating SKUs with the Batch Job
For a large item list, creating SKUs manually is impractical. Use the Create Stockkeeping Unit batch job to generate SKUs for multiple items at once.
- Search for Create Stockkeeping Unit using
Alt + Q. - In the Item filter, specify which items to process (leave blank for all items).
- In the Create Per field, choose:
- Location, one SKU per item per location
- Variant, one SKU per item per variant
- Location & Variant, one SKU per item per location and variant combination
- Enable Copy Default Parameters from Item if you want the batch job to copy the item card’s current planning settings as a starting point.
- Select OK to run the job.
Review the created SKUs in Stockkeeping Units and adjust settings as needed.
Key Fields on the SKU Card
Replenishment
| Field | Purpose |
|---|---|
| Replenishment System | Purchase, Prod. Order, or Assembly, sets how the item is resupplied at this location |
| Vendor No. | The preferred vendor for purchase orders at this location |
| Lead Time Calculation | Date formula added to the order date to determine the expected receipt date (e.g. 10D for 10 days) |
| Transfer-from Code | Used when replenishment is via transfer from another location |
Planning
| Field | Purpose |
|---|---|
| Reorder Policy | Fixed Reorder Qty, Maximum Qty, Order, or Lot-for-Lot |
| Reorder Point | Stock level that triggers a new supply suggestion |
| Reorder Quantity | Fixed quantity to order when the reorder point is reached (Fixed Reorder Qty policy) |
| Maximum Inventory | Target stock level when using Maximum Qty policy |
| Safety Stock Quantity | Buffer stock that the planning engine treats as a floor |
How Business Central Uses SKUs in Planning
When you run the Planning Worksheet or Requisition Worksheet, Business Central evaluates demand and supply per item and location. If an SKU exists for that combination, the SKU fields take precedence over the item card for:
- Replenishment system
- Lead time
- Reorder policy and quantities
- Vendor
If no SKU exists, the item card values are used as fallback. This means you can set general defaults on the item card and only create SKUs where you need exceptions.
Checking Which SKU Business Central Is Using
To verify which record drives planning for a specific item at a location:
- Open the Planning Worksheet.
- Generate planning lines (select Calculate Regenerative Plan or Calculate Net Change Plan).
- Review the lines, the Location Code column shows which location each suggestion is for.
- Select a line and open the Item Card or SKU Card to confirm the replenishment settings used.
If a planning suggestion looks unexpected, wrong vendor, wrong lead time, checking for a missing or misconfigured SKU is usually the first place to look.
To understand how these planning policies interact with physical inventory and ordering, see How to Set Up Reordering Policies and Planning in Business Central.