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Kit items and Cost


Reputable Poster

I do not know much about Kit Items but here is the question I was asked.

We have a sales order with Item XXX (the kit)
when they ship confirm the order they ship confirm the component items not the parent. After putting them together in a box and wrapping it up.

These component items may also be sold seperatly.

Where do I attach the Cost of putting the Kit componants into a box and wrapping it up?

Can anyone tell me where to start looking?
In the past I have either directly charged on the sales order for the labor
or used Work Orders for Assembly capturing the cost there with or without
using Routings.

L Livingstone


The cost of assembling the 'kit' should be the standard cost included in the
kit item master and should be incorporated into the 'kit' cost along with
the cost of the items assembled into the kit..



Kits do not provide a way to track direct labor. Their typical use is
simply to identify a group of items that normally ship together, which makes
customer ordering easier. We may sell a kit, but this simply means that we
pick and ship a group of items that make up a kit. In theory, the picking
and shipping activities (and costs) should not be much different than if the
items making up the kit were ordered as themselves, instead of the kit.
If you have significant costs that are added in the process of "making a
kit", you may want to consider using work orders instead of kits.

Tim Lyons, CFPIM
Computer Results Company


Reputable Poster
Re: RE: Kit items and Cost

Thanks for the information.

Thats basicly what I thought but they do not want to use a Work Order.

Oh well, guess I will have to figure out another way.

We have a "Display" item that there are basicly 2 items. A Kit Item contains a "Display Case" and an "Item". Both the Case and the Item can be sold seperatly also. So putting a cost add-on does not seem to be an option.