This setting switches between standard inventory handling (off) and Industrial Equipment Manufacturing inventory handling (on).
When this setting is off, Microsoft Dynamics 365 Business Central's standard behavior applies. A purchase receipt is immediately consumed in the project as an inventory negative adjustment. When the Industrial Equipment Manufacturing Planning Line TypePlanning is also selected in the purchase order line, the planning line is created as per Microsoft Dynamics 365 Business Central's Usage Link functionality.
When this setting is on, handling of items of the type Inventory uses two steps:
Receive in inventory.
Post consumption or delivery from the project planning line.
Depending on the location's warehouse settings, inventory must first be picked to the To-Project Bin Code.
Because project supply orders are reserved with Order-to-Order binding, the inventory (item ledger entries) is also reserved and can be reported as "Expected WIP." This makes it possible to handle inventory through the warehouse when items need to be delivered to a project site.
You can set the Control Supply from Project setting in the base template as well as in the Project card.