Usage and Consume

 In the context of a service order in Microsoft Dynamics 365 Business Central, both "Usage" and "Consume" entries provide essential information for tracking and billing purposes. Here's an example to illustrate why both might be necessary:


Scenario: Servicing a printer


Let's say you run a business that services printers. A client sends in a high-end printer for a routine checkup and maintenance.


Usage:

During the service, your technician spends 3 hours inspecting the printer, cleaning it, and running diagnostic tests. Here, the technician's time is recorded as "Usage" because it's a resource that's been used. This time needs to be billed to the client, but nothing is getting "consumed" or removed from inventory. In Business Central, you would record the technician's time as a "Usage" entry against the service order. This way, you can track how much of the technician’s time (a non-inventory resource) was spent on the job.


Consume:

Upon inspection, the technician decides to replace a printer cartridge that is not functioning correctly. The cartridge is a physical item taken from inventory and is now consumed because it cannot be used again—it's physically installed into the client's printer. In Business Central, this would be recorded as a "Consume" entry on the service ledger, reducing inventory by one cartridge and reflecting the cost of the item as an expense against the service order.


In a single service order, you might have both types of entries:


"Usage" for the time the technician spent servicing the printer, which affects how much the customer is billed but does not decrease inventory.

"Consume" for the parts taken from inventory to complete the service, which needs to be replenished and is part of the cost of servicing.

By differentiating between "Usage" and "Consume," Business Central allows a business to accurately track both the depletion of physical inventory and the allocation of billable resources. This distinction is crucial for financial reporting, inventory management, and ensuring that all aspects of a service are billed appropriately to the client.

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