Map a Vendor Item to a New R365 Item
Create a new R365 purchased item from within the Vendor Item Assign dialog — measure type, reporting unit, item categories and GL accounts — and map the vendor item to it.
Nothing in the item list matches the vendor item, so you create the purchased item and map to it in one pass. R365 lets you do this without leaving the invoice: typing a name that doesn't exist prompts you to create it.
Source: Vendor Mapping to New Item.mp4 (2:24), recorded 2026-07-29. Timestamps below point back to the recording.
The worked example
| Invoice | 5560, Burgardt Liquor (MC) — V127 |
| Location | 102 — Larcher's Market |
| Missing vendor items | 5, including HAPPY CAMPER CAB SAUV - ML |
| Turns out to be | a 750 mL bottle of cabernet sauvignon, 12 on the invoice at $87.96 |
| New item created | WINE Happy Camper Cab Sauv |
Wine is the standard case for this path. Individual wines are set up as their own items rather than pooled into a generic "red wine" item, so a new label almost always means a new item.
Steps
The invoice has five missing items. Click Assign on HAPPY CAMPER CAB SAUV - ML. (0:09)
Search the Item field — Cab returns cabbage and a handful of other cabernets, but no Happy Camper. (0:27)
Search the distinctive word, not the varietal. Happy Camper is a one-search answer; Cab returns everything including produce.
Type the name you want the new item to carry — WINE Happy Camper Cab Sauv — and R365 asks what you want to create. (0:39)
Choose Item.
Item, not Vendor Item. Item creates the purchased item you're missing. Vendor Item would only create another vendor alias — which is what you already have, and which is why the line is unmatched in the first place.
Follow the naming convention: a category prefix in caps, then the product — WINE Happy Camper Cab Sauv. The prefix is what makes the item list searchable, and it's the difference between this item being found next time and being created a second time.
The Purchased Item form opens with the name carried across, Type set to Purchased, and Active ticked. (0:48)
Set Measure Type to Volume — it's a liquid. (Measure type drives which units are even offered as the reporting unit.)
Leave Number, Description and the Actual as Theoretical / Commissary / Available in AR Invoice / Catering / Key Item checkboxes alone unless you have a reason.
Burgardt Liquor has no online portal, so the size comes from the scanned invoice: click Open attachment viewer on the AP invoice. (0:53)
The line reads 12 | HAPPY CAMPER CAB SAUV | 750ML | 7.33 | 87.96 — twelve 750 mL bottles at $7.33, totalling $87.96, matching the dialog.
Read the whole invoice while it's open. This one carries handwritten annotations — a check number, a PAID stamp, and a retail note against one line — that change how those lines should be treated.
Search the size — 750 mL — which offers Bottle (750 mL) and Case - 12/Bottle (750 mL). (1:11)
Choose Bottle (750 mL).
The invoice being for twelve bottles does not make the reporting unit a case. Quantity lives on the invoice line; the reporting unit is the item's own base unit. Bottles are what gets counted behind the bar, so bottles it is.
Move to the Inventory Cost tab. Cost Update Method defaults to Last Received — leave it. (1:21)
- Item Category 1 →
LBW(liquor, beer and wine) - Item Category 2 →
Wine - Item Category 3 → leave blank
Inventory U of M carries across from the reporting unit as Bottle (750 mL). Leave Count U of M 2 and 3 blank.
Setting the categories auto-fills the GL accounts — that's what the categories are for. Confirm them rather than typing them:
| Account | Value |
|---|---|
| Cost Account | 5120 - Wine Costs |
| Inventory Account | 1400 - Inventory |
| Waste Account | not auto-filled |
| Donations Account | leave blank |
Set Waste Account to the same account as the Cost Account — 5120 - Wine Costs. (1:36)
If the cost and inventory accounts don't auto-fill, stop — it usually means an item category is wrong or missing. Fix the category rather than hand-typing the accounts, or the next item set up in that category will have the same problem.
Save the item.
Saving returns you to Vendor Item Assign with Item set to the new WINE Happy Camper Cab Sauv and Purchasing U of M pre-filled as Bottle (750 mL), carried from the item's reporting unit. (1:50)
Confirm the carried-across unit matches the invoice — don't assume it. Here the invoice says 750 mL and the field says Bottle (750 mL), so it's right. It won't be right when the vendor bills by the case and you set the item up by the bottle.
Leave Split U of M blank — a 750 mL bottle is the smallest unit this product comes in, so there's nothing to split it into.
Quantity (12) and Total Amount (87.96) come from the invoice — leave them. Click OK.
HAPPY CAMPER CAB SAUV - ML drops off the tab, leaving the other four. (2:10)
Repeat for each remaining item, choosing the existing-item or new-item path per item. When the tab is empty, Approve the invoice.
New purchased item — field summary
Reusable checklist for the next one:
| Field | Setting |
|---|---|
| Name | CATEGORY Product Name — caps prefix, e.g. WINE Happy Camper Cab Sauv |
| Type | Purchased (pre-filled) |
| Measure Type | Volume for liquids; otherwise weight or each |
| Reporting U of M | The unit you count in — the bottle, not the case |
| Active | Ticked (default) |
| Number, Description, checkboxes | Leave alone |
| Field | Setting |
|---|---|
| Cost Update Method | Last Received (default) |
| Item Category 1 | Broad group — LBW for liquor, beer and wine |
| Item Category 2 | Narrower — Wine |
| Item Category 3 | Usually blank |
| Inventory U of M | Carries from the reporting unit |
| Count U of M 2 / 3 | Blank |
| Cost Account | Auto-fills from the categories — confirm |
| Inventory Account | Auto-fills from the categories — confirm |
| Waste Account | Set to match the Cost Account |
| Donations Account | Blank |
U Of M Equivalence, Transactions, Vendor Items, Location Settings and Location Costing are not touched in this flow. The vendor item link that would appear under Vendor Items is created for you when you click OK back on the Vendor Item Assign dialog.
Related
- Clear Missing Items on an R365 AP invoice — how to choose between the two paths
- Map a vendor item to an existing item — try this first
- Inventory and COGS — what the cost and inventory accounts feed