About accounting for kits

You enter the properties of a kit in the Stock items (IN202500) or Non-stock items (IN202000) window.
To indicate that the item is a kit, select the Is a kit check box on the General settings tab.
Prices are assigned to kits as they are assigned to other items: You assign pending prices on a per-kit basis in the Stock items (IN202500) or Non-stock items (IN202000) window.

To ease the process of creating new kits, you can define an item class for stock kits and another for non-stock kits.

The item class provides default values for settings common to items (kits) of the class. For stock kits, the item class settings might include the assignment of lot or serial numbers and expiration dates to kits and the specification of when they're assigned: on kit production or sale.

You create a kit specification, which lists the components of a kit, using the Kit specifications (IN209500) window.
A modification of a kit specification is saved as a revision that, once created and used, cannot be modified.
For creating kits, only the last revision can be used; for disassembly of a stock kit, if required, select the revision that was used for its assembly.

For each kit revision, you can use elements in the Kit specifications (IN209500) window to allow or disallow changing the quantity of components and adding components to the kit during kit assembly.
If adding components is allowed, you can specify the minimum and maximum quantities.

Both stock and non-stock kits can include stock components, which you add using the Stock components tab of the Kit specifications (IN209500) window.
For each component, you can specify such information as its item ID and quantity in a specific unit of measure.

The two types of kits are discussed in greater detail in the sections below.

Stock kits may be produced before a sales order requesting them is entered into the system.
You use the Kit assembly (IN307000) window to create and view kit assembly documents, which account for new kits that are assembled and for existing kits that are disassembled to components. The kit assembly document lists the components with their quantities and costs per the kit specification.
Each time a stock kit is produced and its kit assembly document is released, on-hand quantities of the items used as components are automatically decreased, and the on-hand quantity of the kits is increased.

When a stock kit is sold, one line item appears in the transaction and the on-hand quantity of the kit is reduced.

A stock kit may require a serial or lot number and an expiration date to be assigned on production or on selling, depending on the item class settings, and it may require disassembly when its expiration date has approached.

A kit specification of a stock kit may include, in addition to the stock components that are assembled, non-stock items as components.
Non-stock components, which can be specified on the Non-stock components tab of the Kit specifications (IN209500) window, define additional costs incurred to assemble a kit.

If disassembly might be required for a stock kit (for example, because of the expiration date), it can be performed in accordance with the revision used to assemble the kit.

The quantity of components extracted from the kit is estimated using the disassembly coefficient specified for each stock component.

However, the quantities of stock components as well as non-stock components are not validated in any way, and you can manually adjust the calculated quantities.

Stock kit cost calculation. Production of stock kits (with valuation methods other than the standard cost method) creates a new cost layer.

The cost of a stock kit is calculated based on the costs of components when the document is released.

The total cost of the kit is the total cost of stock components according to the specification's revision, the cost of components added during assembly, and the rates of non-stock components of the Labour and Service types multiplied by their quantities.

If the standard cost method is used for the stock kit, any difference between the currently effective standard cost and the total cost of components is recorded (as with non-stock kits) to the standard cost variance account associated with the stock kit.

Non-stock kits can include non-stock and stock components.

When a non-stock kit is listed on a sales order as a line item, its components are specified on a pick list and shipped to the customer.

Upon shipment confirmation, the quantity of stock components is decreased while the quantities of non-stock components and kits are not tracked in any way.

Kit specification may include both stock and non-stock items as components of a non-stock kit. Kit specification may allow adding components as well as changing the quantities of components.

If disassembly might be required for a non-stock kit, it can be performed in accordance with the revision used to assemble the kit.
The quantity of stock components extracted from the kit is estimated using the disassembly coefficient specified for each stock component.
However, the quantities of stock components are not validated in any way, and you can manually adjust the resulting quantities.

Only the standard cost valuation method may be assigned to non-stock kits.
On the sale of non-stock kits, any difference between the standard cost and the cost of actually used components is recorded to the Standard cost variance account associated with the kit, and the kit's standard cost is recorded to the Expense accrual account specified on the General ledger accounts tab of the Non-stock items (IN202000) window.