Accolent ERP allows for the use of two types of Kits. Finished Kits take components from inventory and combine these to form a new product. When put on an Order, the Finished Kit is displayed, priced, costed and inventoried as the finished product. Unfinished Kits are a set of components that may be sold separately but are often sold together as a Kit. When an Unfinished Kit is specified on an order, the Unfinished Kit is replaced in the display by its components. Any components can be added or deleted as desired, and the order is priced, costed and inventoried by the components.
Overview
- To create a Kit, enter the Kit product with Class K-Kit.
- Once the Kit product is saved, go to Actions > Kit Components and Configuration to select Kit Type and enter Kit Components list.
- There are two types of Kits: (i) Finished Kits and (ii) Unfinished Kits that are treated as follows:
| Kit Type | Display as | Price by | Cost by | Inventory by | Print as |
| Finished | Kit | Kit | Kit | Kit | Kit |
| Unfinished | Components | Components | Components | Components | Components |
Finished Kit
- Once finished, a Finished Kit becomes a separate product.
- Finished Kits MUST be Inventory products.
- The act of finishing the Kit creates a new product with its own inventory, price and cost – which is equal to the sum of the costs of the components at the time the Kit was finished.
- Once finished, any subsequent changes in the costs of the components have no direct effect on the average cost of any Finished Kits in inventory.
- A Finished Kit can only be displayed, priced, costed, and inventoried as the finished product.
Unfinished Kit
- An Unfinished Kit is NOT a separate product, it is simply a group of components that are sold together.
- Unfinished Kits MUST be Non-Inventory products.
- An Unfinished Kit can be displayed only as a list of its exploded components, and will be priced, costed, and inventoried by its components.
- Since the Kit is displayed as a list of components, any components can be added, deleted or substituted as desired.
- If the business practice is to provide a discount when all the Kit components are sold together, create a non-inventory item for Kit Discount and include it as one of the Kit components.
Set Up a Finished Kit
- 800IRRIG-01 Basic Irrigation Assembly is a Finished Kit product with Class as K-Kit.
- If this is a new Kit, the Components and List Price for the Kit must be set up.
- Save the Kit in order to proceed.
- Now go to Actions > Kit Configuration and Components to see the components.
- Select Warehouse and set Kit Type as Finished.
- If not already set up, enter the list of components and the prices, costs and inventory of the components will populate.
- Use the Kit Price field at the bottom of the screen to enter a price for the Kit and see the calculated discount this implies. For example, the extended List Prices of the Kit components sum to $793.00; enter a Kit Price of $700.00, which is a discount of 11.73%.
- Then set the Kit price on the Pricing UOM tab.
- Also set up the Kit costs. Extended Std Cost and extended Alt Cost of Components are $583.68 and $576.00 respectively.
- NOTE: The Standard Cost of the Kit need not be equal to the sum of the Standard Costs of the components since there might be additional cost involved in assembling and finishing the Kit. Similarly, the Alternate Cost of the Kit is not used for anything since the Kit is assembled from components rather than purchased on a PO.
Create New Finished Kits
- The Kit Components screen shows the Can Make Qty based on Q-Avail of the Kit components.
- Order any of the components needed to Finish Kits.
- Go to Actions > Kit Configuration and Components and click on the Finish Kits button to create inventory of the Finished Kit. For example, make 5 EA Finished Kits.
- When the Finish Kits screen is saved, inventory of the components will be reduced, and inventory of the Finished Kits will be created.
- Successfully created 5 EA of 801IRRIG-01 on Receipt 9997.
- Ledger Card for 801IRRIG-01 – shows the 5 kits just made on Receipt No 9997.
- Ledger cards for kit components reduced inventory by: RH1035 by 1000 FT, 18JP100V by 10 EA, IP3005 by 5 EA, and N3420 by 50 EA.
- Average costs of components are: RH1035 = $1.99014/FT; 18JP1000V = $18.68637/EA; IP3005 = $128.0000/EA and N3420 = $0.79611/EA.
- So, Extended Avg Cost of 5 EA 801IRRIG-01 = [(200 x 1.99014) + (2 x $18.68637) + (1 x $128.00000) + (10 x $0.79611)] x 5 = $2856.80920.
- New Avg Cost = [(25 x $598.83373) + $2856.80920]/30 = $594.25508.
Specify Finished Kits on an Order
- Create order 72510 to sell 10 x 801IRRIG-01 Kits.
- Since 801IRRIG-01 is a Finished Kit, the Order will display only the Finished Kit and not the Kit components.
- The price will reflect the $700.00 price set up for the Finished Kit, as will the inventory.
- Customer 011 gets a Special Discount of 1.00% for a net price of $693.00 for 801IRRIG-01.
- Move order 72510 to fulfillment then invoice.
- Ledger Card for 801IRRIG-01 shows the initial finishing of 5 Kits and the sale of 10 Kits.
General Ledger Posting
Finishing Kits
- NOTE: The finishing of 5 EA 801IRRIG-01 Kits on Receipt 9997 has no GL effect, since this involved a debit to Inventory of $2,856.80920 on creation of 801IRRIG-01 and a credit to Inventory of $2,856.80920 on use of the components.
Sale of Kits
- Sale of 10 EA 801IRRIG-01 Kits on 72510 debited COGS by 10 x $594.25508 = $5,942.55 and credited sales by $6,930.00.
