diff --git a/src/Apps/W1/FieldServiceIntegration/app/src/Codeunits/FSIntTableSubscriber.Codeunit.al b/src/Apps/W1/FieldServiceIntegration/app/src/Codeunits/FSIntTableSubscriber.Codeunit.al
index 60d8d99d3dd..15f68a31e97 100644
--- a/src/Apps/W1/FieldServiceIntegration/app/src/Codeunits/FSIntTableSubscriber.Codeunit.al
+++ b/src/Apps/W1/FieldServiceIntegration/app/src/Codeunits/FSIntTableSubscriber.Codeunit.al
@@ -284,7 +284,7 @@ codeunit 6610 "FS Int. Table Subscriber"
     end;
 
     [EventSubscriber(ObjectType::Codeunit, Codeunit::"Integration Rec. Synch. Invoke", 'OnAfterTransferRecordFields', '', true, false)]
-    local procedure OnAfterTransferRecordFields(SourceRecordRef: RecordRef; var DestinationRecordRef: RecordRef; var AdditionalFieldsWereModified: Boolean)
+    local procedure OnAfterTransferRecordFields(SourceRecordRef: RecordRef; var DestinationRecordRef: RecordRef; var AdditionalFieldsWereModified: Boolean; DestinationIsInserted: Boolean)
     var
         FSConnectionSetup: Record "FS Connection Setup";
         FSWorkOrderProduct: Record "FS Work Order Product";
@@ -358,6 +358,35 @@ codeunit 6610 "FS Int. Table Subscriber"
         end;
     end;
 
+    [EventSubscriber(ObjectType::Codeunit, Codeunit::"Integration Record Synch.", 'OnBeforeIsFieldModified', '', true, false)]
+    local procedure OnBeforeIsFieldModified(var SourceFieldRef: FieldRef; var DestinationFieldRef: FieldRef; var Result: Boolean; var IsHandled: Boolean)
+    begin
+        HandleOnBeforeIsFieldModified(SourceFieldRef, DestinationFieldRef, Result, IsHandled);
+    end;
+
+    internal procedure HandleOnBeforeIsFieldModified(var SourceFieldRef: FieldRef; var DestinationFieldRef: FieldRef; var Result: Boolean; var IsHandled: Boolean)
+    var
+        FSConnectionSetup: Record "FS Connection Setup";
+        CRMProduct: Record "CRM Product";
+        ExistingCRMProduct: Record "CRM Product";
+        DestinationRecordRef: RecordRef;
+        ItemIsManaged: Boolean;
+    begin
+        if not FSConnectionSetup.IsEnabled() then
+            exit;
+
+        if not IsItemCouplingToCustomerAssetConversion(SourceFieldRef, DestinationFieldRef) then
+            exit;
+
+        ItemIsManaged := SourceFieldRef.Value();
+        DestinationRecordRef := DestinationFieldRef.Record();
+        DestinationRecordRef.SetTable(CRMProduct);
+        ExistingCRMProduct.SetLoadFields(ConvertToCustomerAsset);
+        ExistingCRMProduct.Get(CRMProduct.ProductId);
+        Result := ExistingCRMProduct.ConvertToCustomerAsset <> GetCustomerAssetConversion(ItemIsManaged);
+        IsHandled := true;
+    end;
+
     [EventSubscriber(ObjectType::Codeunit, Codeunit::"Integration Record Synch.", 'OnTransferFieldData', '', true, false)]
     local procedure OnTransferFieldData(SourceFieldRef: FieldRef; DestinationFieldRef: FieldRef; var NewValue: Variant; var IsValueFound: Boolean; var NeedsConversion: Boolean)
     var
@@ -380,6 +409,7 @@ codeunit 6610 "FS Int. Table Subscriber"
         QuantityToTransferToInvoice: Decimal;
         QuantityCurrentlyConsumed: Decimal;
         QuantityCurrentlyInvoiced: Decimal;
+        ItemIsManaged: Boolean;
         NotCoupledCRMUomErr: Label 'The unit is not coupled to a unit of measure.';
     begin
         if not FSConnectionSetup.IsEnabled() then
@@ -392,6 +422,14 @@ codeunit 6610 "FS Int. Table Subscriber"
             if SourceFieldRef.Record().Number() = DestinationFieldRef.Record().Number() then
                 exit;
 
+        if IsItemCouplingToCustomerAssetConversion(SourceFieldRef, DestinationFieldRef) then begin
+            ItemIsManaged := SourceFieldRef.Value();
+            NewValue := GetCustomerAssetConversion(ItemIsManaged);
+            IsValueFound := true;
+            NeedsConversion := false;
+            exit;
+        end;
+
         if (SourceFieldRef.Record().Number = Database::"Service Header") and
             (DestinationFieldRef.Record().Number = Database::"FS Work Order") then
             case DestinationFieldRef.Name() of
@@ -672,6 +710,23 @@ codeunit 6610 "FS Int. Table Subscriber"
         exit(MaxQuantity);
     end;
 
+    local procedure IsItemCouplingToCustomerAssetConversion(SourceFieldRef: FieldRef; DestinationFieldRef: FieldRef): Boolean
+    var
+        Item: Record Item;
+        CRMProduct: Record "CRM Product";
+    begin
+        exit(
+            (SourceFieldRef.Record().Number() = Database::Item) and
+            (SourceFieldRef.Number() = Item.FieldNo("Coupled to Dataverse")) and
+            (DestinationFieldRef.Record().Number() = Database::"CRM Product") and
+            (DestinationFieldRef.Number() = CRMProduct.FieldNo(ConvertToCustomerAsset)));
+    end;
+
+    internal procedure GetCustomerAssetConversion(ItemIsManaged: Boolean): Boolean
+    begin
+        exit(not ItemIsManaged);
+    end;
+
     [EventSubscriber(ObjectType::Codeunit, Codeunit::"CRM Int. Table. Subscriber", 'OnFindNewValueForCoupledRecordPK', '', true, false)]
     local procedure OnFindNewValueForCoupledRecordPK(IntegrationTableMapping: Record "Integration Table Mapping"; SourceFieldRef: FieldRef; DestinationFieldRef: FieldRef; var NewValue: Variant; var IsValueFound: Boolean)
     var
@@ -1444,7 +1499,7 @@ codeunit 6610 "FS Int. Table Subscriber"
     end;
 
     [EventSubscriber(ObjectType::Codeunit, Codeunit::"CRM Setup Defaults", 'OnResetItemProductMappingOnAfterInsertFieldsMapping', '', false, false)]
-    local procedure AddFieldServiceProductTypeFieldMapping(var Sender: Codeunit "CRM Setup Defaults"; IntegrationTableMappingName: Code[20])
+    local procedure AddFieldServiceProductMappings(var Sender: Codeunit "CRM Setup Defaults"; IntegrationTableMappingName: Code[20])
     var
         FSConnectionSetup: Record "FS Connection Setup";
         Item: Record Item;
@@ -1461,6 +1516,14 @@ codeunit 6610 "FS Int. Table Subscriber"
           CRMProduct.FieldNo(FieldServiceProductType),
           IntegrationFieldMapping.Direction::ToIntegrationTable,
           '', false, false);
+
+        // Coupled Business Central items are managed by Field Service customer assets.
+        Sender.InsertIntegrationFieldMapping(
+            IntegrationTableMappingName,
+            Item.FieldNo("Coupled to Dataverse"),
+            CRMProduct.FieldNo(ConvertToCustomerAsset),
+            IntegrationFieldMapping.Direction::ToIntegrationTable,
+            '', false, false);
     end;
 
     local procedure UpdateCorrelatedJobJournalLine(var SourceRecordRef: RecordRef; var DestinationRecordRef: RecordRef)
@@ -2518,8 +2581,6 @@ codeunit 6610 "FS Int. Table Subscriber"
                 IgnoreArchievedServiceOrdersOnQueryPostFilterIgnoreRecord(SourceRecordRef, IgnoreRecord);
             Database::"FS Work Order":
                 IgnoreArchievedCRMWorkOrdersOnQueryPostFilterIgnoreRecord(SourceRecordRef, IgnoreRecord);
-            Database::"Service Item":
-                IgnoreServiceItemsByConvertToCustomerAssetFlag(SourceRecordRef, IgnoreRecord);
         end;
 
         if FSConnectionSetup.IsEnabled() then
@@ -2685,6 +2746,8 @@ codeunit 6610 "FS Int. Table Subscriber"
                 IgnoreRecord := true;
     end;
 
+#pragma warning disable AS0105
+    [Obsolete('Remove calls to this procedure. Service items are always synchronized to Field Service customer assets; item-product synchronization disables customer asset conversion.', '30.0')]
     internal procedure IgnoreServiceItemsByConvertToCustomerAssetFlag(SourceRecordRef: RecordRef; var IgnoreRecord: Boolean)
     var
         FSConnectionSetup: Record "FS Connection Setup";
@@ -2718,6 +2781,7 @@ codeunit 6610 "FS Int. Table Subscriber"
         if not CRMProduct.ConvertToCustomerAsset then
             IgnoreRecord := true;
     end;
+#pragma warning restore AS0105
 
     [EventSubscriber(ObjectType::Codeunit, Codeunit::"Integration Table Synch.", 'OnAfterInitSynchJob', '', true, true)]
     local procedure LogTelemetryOnAfterInitSynchJob(ConnectionType: TableConnectionType; IntegrationTableID: Integer)
diff --git a/src/Apps/W1/FieldServiceIntegration/test library/src/FSIntegrationTestLibrary.Codeunit.al b/src/Apps/W1/FieldServiceIntegration/test library/src/FSIntegrationTestLibrary.Codeunit.al
index fbb03b04162..1a7e247c0a1 100644
--- a/src/Apps/W1/FieldServiceIntegration/test library/src/FSIntegrationTestLibrary.Codeunit.al	
+++ b/src/Apps/W1/FieldServiceIntegration/test library/src/FSIntegrationTestLibrary.Codeunit.al	
@@ -58,6 +58,20 @@ codeunit 139205 "FS Integration Test Library"
         FSIntTableSubscriber.UpdateQuantities(FSBookableResourceBooking, ServiceLine);
     end;
 
+    procedure GetCustomerAssetConversion(ItemIsManaged: Boolean): Boolean
+    var
+        FSIntTableSubscriber: Codeunit "FS Int. Table Subscriber";
+    begin
+        exit(FSIntTableSubscriber.GetCustomerAssetConversion(ItemIsManaged));
+    end;
+
+    procedure HandleOnBeforeIsFieldModified(var SourceFieldRef: FieldRef; var DestinationFieldRef: FieldRef; var Result: Boolean; var IsHandled: Boolean)
+    var
+        FSIntTableSubscriber: Codeunit "FS Int. Table Subscriber";
+    begin
+        FSIntTableSubscriber.HandleOnBeforeIsFieldModified(SourceFieldRef, DestinationFieldRef, Result, IsHandled);
+    end;
+
     procedure IgnorePostedJobJournalLinesOnQueryPostFilterIgnoreRecord(SourceRecordRef: RecordRef; var IgnoreRecord: Boolean)
     var
         FSIntTableSubscriber: Codeunit "FS Int. Table Subscriber";
@@ -79,12 +93,17 @@ codeunit 139205 "FS Integration Test Library"
         FSIntTableSubscriber.IgnoreArchievedCRMWorkOrdersOnQueryPostFilterIgnoreRecord(SourceRecordRef, IgnoreRecord);
     end;
 
+    /// <summary>
+    /// Retained for compatibility. Service items are now always synchronized to Field Service customer assets, so this procedure leaves the synchronization decision unchanged.
+    /// </summary>
+    /// <param name="SourceRecordRef">A reference to the service item to evaluate.</param>
+    /// <param name="IgnoreRecord">The existing synchronization decision, which is left unchanged.</param>
+#pragma warning disable AS0105
+    [Obsolete('Remove calls to this procedure. Service items are always synchronized to Field Service customer assets; item-product synchronization disables customer asset conversion.', '30.0')]
     procedure IgnoreServiceItemsByConvertToCustomerAssetFlag(SourceRecordRef: RecordRef; var IgnoreRecord: Boolean)
-    var
-        FSIntTableSubscriber: Codeunit "FS Int. Table Subscriber";
     begin
-        FSIntTableSubscriber.IgnoreServiceItemsByConvertToCustomerAssetFlag(SourceRecordRef, IgnoreRecord);
     end;
+#pragma warning restore AS0105
 
     procedure MarkArchivedServiceOrder(ServiceHeader: Record "Service Header")
     var
diff --git a/src/Apps/W1/FieldServiceIntegration/test/src/FSIntegrationTest.Codeunit.al b/src/Apps/W1/FieldServiceIntegration/test/src/FSIntegrationTest.Codeunit.al
index 94c69e79ff9..3c70255f726 100644
--- a/src/Apps/W1/FieldServiceIntegration/test/src/FSIntegrationTest.Codeunit.al
+++ b/src/Apps/W1/FieldServiceIntegration/test/src/FSIntegrationTest.Codeunit.al
@@ -23,7 +23,6 @@ using Microsoft.Purchases.Vendor;
 using Microsoft.Sales.Customer;
 using Microsoft.Service.Archive;
 using Microsoft.Service.Document;
-using Microsoft.Service.Item;
 using Microsoft.Service.Setup;
 using Microsoft.Service.Test;
 using Microsoft.TestLibraries.DynamicsFieldService;
@@ -1578,109 +1577,107 @@ codeunit 139204 "FS Integration Test"
     end;
 
     [Test]
-    procedure IgnoreServiceItemWhenConvertToCustomerAssetIsFalse()
+    [TransactionModel(TransactionModel::AutoCommit)]
+    procedure ItemSynchronizationDisablesCustomerAssetConversion()
     var
         Item: Record Item;
-        TempServiceItem: Record "Service Item" temporary;
         CRMProduct: Record "CRM Product";
-        CRMIntegrationRecord: Record "CRM Integration Record";
-        RecordRef: RecordRef;
-        IgnoreRecord: Boolean;
-        ProductId: Guid;
+        IntegrationTableMapping: Record "Integration Table Mapping";
+        CRMIntegrationTableSynch: Codeunit "CRM Integration Table Synch.";
+        CRMSetupDefaults: Codeunit "CRM Setup Defaults";
     begin
-        // [FEATURE] [Service Item Mapping]
-        // [SCENARIO] Service Item is skipped when linked CRM Product has Convert to Customer Asset = No.
+        // [FEATURE] [Item-Product Mapping]
+        // [SCENARIO] Synchronizing an item disables native Field Service customer asset creation.
         Initialize();
+        LibraryCRMIntegration.CreateCRMConnectionSetup('', '@@test@@', true);
         InitSetup(true, '');
 
-        Item.Get(CreateItem());
-        TempServiceItem."Item No." := Item."No.";
-        RecordRef.GetTable(TempServiceItem);
-
-        ProductId := CreateGuid();
-        CRMProduct.ProductId := ProductId;
-        CRMProduct.ConvertToCustomerAsset := false;
-        CRMProduct.Insert(false);
+        // [GIVEN] A coupled item and product where Convert to Customer Asset is Yes.
+        CRMSetupDefaults.ResetItemProductMapping('ITEM-PRODUCT', false);
+        LibraryCRMIntegration.CreateCoupledItemAndProduct(Item, CRMProduct);
+        CRMProduct.ConvertToCustomerAsset := true;
+        CRMProduct.Modify();
 
-        CRMIntegrationRecord.CoupleCRMIDToRecordID(ProductId, Item.RecordId());
+        IntegrationTableMapping.Get('ITEM-PRODUCT');
 
-        FSIntegrationTestLibrary.IgnoreServiceItemsByConvertToCustomerAssetFlag(RecordRef, IgnoreRecord);
+        // [WHEN] The item is synchronized to the Field Service product.
+        CRMIntegrationTableSynch.SynchRecord(IntegrationTableMapping, Item.RecordId(), true, false);
 
-        Assert.IsTrue(IgnoreRecord, 'Service Item should be ignored when Convert to Customer Asset is false.');
+        // [THEN] Native Field Service customer asset creation is disabled.
+        CRMProduct.Get(CRMProduct.ProductId);
+        Assert.IsFalse(CRMProduct.ConvertToCustomerAsset, 'Convert to Customer Asset should be disabled.');
     end;
 
     [Test]
-    procedure DoNotIgnoreServiceItemWhenConvertToCustomerAssetIsTrue()
-    var
-        Item: Record Item;
-        TempServiceItem: Record "Service Item" temporary;
-        CRMProduct: Record "CRM Product";
-        CRMIntegrationRecord: Record "CRM Integration Record";
-        RecordRef: RecordRef;
-        IgnoreRecord: Boolean;
-        ProductId: Guid;
+    [TransactionModel(TransactionModel::AutoRollback)]
+    procedure CustomerAssetConversionReflectsItemManagement()
     begin
-        // [FEATURE] [Service Item Mapping]
-        // [SCENARIO] Service Item is not skipped when linked CRM Product has Convert to Customer Asset = Yes.
-        Initialize();
-        InitSetup(true, '');
-
-        Item.Get(CreateItem());
-        TempServiceItem."Item No." := Item."No.";
-        RecordRef.GetTable(TempServiceItem);
+        // [FEATURE] [Item-Product Mapping]
+        // [SCENARIO] Customer asset conversion is disabled only for items managed through synchronization.
 
-        ProductId := CreateGuid();
-        CRMProduct.ProductId := ProductId;
-        CRMProduct.ConvertToCustomerAsset := true;
-        CRMProduct.Insert(false);
-
-        CRMIntegrationRecord.CoupleCRMIDToRecordID(ProductId, Item.RecordId());
+        // [WHEN] An item is not managed through synchronization.
+        // [THEN] Native Field Service customer asset conversion remains enabled.
+        Assert.IsTrue(FSIntegrationTestLibrary.GetCustomerAssetConversion(false), 'An unmanaged item should allow customer asset conversion.');
 
-        FSIntegrationTestLibrary.IgnoreServiceItemsByConvertToCustomerAssetFlag(RecordRef, IgnoreRecord);
-
-        Assert.IsFalse(IgnoreRecord, 'Service Item should not be ignored when Convert to Customer Asset is true.');
+        // [WHEN] An item is managed through synchronization.
+        // [THEN] Native Field Service customer asset conversion is disabled.
+        Assert.IsFalse(FSIntegrationTestLibrary.GetCustomerAssetConversion(true), 'A managed item should disable customer asset conversion.');
     end;
 
     [Test]
-    procedure DoNotIgnoreServiceItemWhenItemNoIsBlank()
+    [TransactionModel(TransactionModel::AutoRollback)]
+    procedure ItemProductComparisonIgnoredWhenFieldServiceIsDisabled()
     var
-        TempServiceItem: Record "Service Item" temporary;
-        RecordRef: RecordRef;
-        IgnoreRecord: Boolean;
-    begin
-        // [FEATURE] [Service Item Mapping]
-        // [SCENARIO] Service Item with blank Item No. is not skipped by this filter.
-        Initialize();
-        InitSetup(true, '');
+        Item: Record Item;
+        CRMProduct: Record "CRM Product";
+        SourceRecordRef: RecordRef;
+        DestinationRecordRef: RecordRef;
+        SourceFieldRef: FieldRef;
+        DestinationFieldRef: FieldRef;
+        Result: Boolean;
+        IsHandled: Boolean;
+    begin
+        // [FEATURE] [Item-Product Mapping]
+        // [SCENARIO] Field Service does not handle synchronization comparisons while its integration is disabled.
+        ResetFSEnvironment();
 
-        TempServiceItem."Item No." := '';
-        RecordRef.GetTable(TempServiceItem);
+        // [GIVEN] The fields used to derive customer asset conversion and no Field Service connection setup.
+        SourceRecordRef.GetTable(Item);
+        SourceFieldRef := SourceRecordRef.Field(Item.FieldNo("Coupled to Dataverse"));
+        DestinationRecordRef.GetTable(CRMProduct);
+        DestinationFieldRef := DestinationRecordRef.Field(CRMProduct.FieldNo(ConvertToCustomerAsset));
 
-        FSIntegrationTestLibrary.IgnoreServiceItemsByConvertToCustomerAssetFlag(RecordRef, IgnoreRecord);
+        // [WHEN] The synchronization engine compares those fields.
+        FSIntegrationTestLibrary.HandleOnBeforeIsFieldModified(SourceFieldRef, DestinationFieldRef, Result, IsHandled);
 
-        Assert.IsFalse(IgnoreRecord, 'Service Item with blank Item No. should not be ignored by this filter.');
+        // [THEN] Field Service leaves the comparison to the synchronization engine.
+        Assert.IsFalse(IsHandled, 'Field Service should not handle synchronization comparisons while its integration is disabled.');
     end;
 
     [Test]
-    procedure DoNotIgnoreServiceItemWhenItemIsNotCoupled()
+    [TransactionModel(TransactionModel::AutoCommit)]
+    procedure ItemProductMappingDisablesCustomerAssetConversion()
     var
         Item: Record Item;
-        TempServiceItem: Record "Service Item" temporary;
-        RecordRef: RecordRef;
-        IgnoreRecord: Boolean;
+        CRMProduct: Record "CRM Product";
+        IntegrationFieldMapping: Record "Integration Field Mapping";
+        CRMSetupDefaults: Codeunit "CRM Setup Defaults";
     begin
-        // [FEATURE] [Service Item Mapping]
-        // [SCENARIO] Service Item with uncoupled Item is not skipped by this filter.
+        // [FEATURE] [Item-Product Mapping]
+        // [SCENARIO] The item-product mapping derives native Field Service customer asset creation from item management.
         Initialize();
         InitSetup(true, '');
 
-        Item.Get(CreateItem());
-        TempServiceItem."Item No." := Item."No.";
-        RecordRef.GetTable(TempServiceItem);
-
-        FSIntegrationTestLibrary.IgnoreServiceItemsByConvertToCustomerAssetFlag(RecordRef, IgnoreRecord);
+        // [WHEN] The default item-product mapping is reset.
+        CRMSetupDefaults.ResetItemProductMapping('ITEM-PRODUCT', false);
 
-        Assert.IsFalse(IgnoreRecord, 'Service Item with uncoupled Item should not be ignored by this filter.');
+        // [THEN] Convert to Customer Asset is mapped from the item's Dataverse coupling state in the outbound direction.
+        IntegrationFieldMapping.SetRange("Integration Table Mapping Name", 'ITEM-PRODUCT');
+        IntegrationFieldMapping.SetRange("Integration Table Field No.", CRMProduct.FieldNo(ConvertToCustomerAsset));
+        Assert.IsTrue(IntegrationFieldMapping.FindFirst(), 'The Convert to Customer Asset mapping should exist.');
+        Assert.AreEqual(Item.FieldNo("Coupled to Dataverse"), IntegrationFieldMapping."Field No.", 'The mapping should use the item coupling state.');
+        Assert.AreEqual(IntegrationFieldMapping.Direction::ToIntegrationTable, IntegrationFieldMapping.Direction, 'The mapping should be outbound.');
+        Assert.AreEqual('', IntegrationFieldMapping."Constant Value", 'The mapping should not use a constant value.');
     end;
 
     local procedure Initialize()