Kitset

Kitset vs Bill of material (BOM)

A kitset can be used in sales orders. It is a virtual product that packages multiple items together to offer a bundled deal to customers.

A bill of material is used in sales orders, manufacturing jobs and purchase orders. It is a finished goods product that gets made in the manufacturing process.

What is a kitset?

When sold, a kitset is a product box containing multiple items bundled or packed in the box.

It can have a kitset price to provide the customer a packaged deal.

The kitset does not keep track of inventory or costs.

The inventory level is the lowest inventory available for its items, and the cost is the total of its items costs.

For example:

A kitset of a digital camera, it has

• 1 camera body
• 64gb SD card memory
• 2 spare batteries
• 1 carry bag

What happens when the kitset is sold?

When a kitset is sold,

• the customer receives the box of individual items whether they are pre-assembled or not.
• the items inventory levels are reduced in the system
• the cost of goods sold of the items get posted
• the sales statistics of the items get updated

A kitset sales report can be run to view the performance of each kitset.

Kitset vs Manufactured Item

• Kitset: the product code is a composite code, it does not hold stock, it can't be used in a purchase order. Its stock on hand and cost are the sum of its items; when it is sold, you put the two together and send it out.
  For example: a Big Mac combo that comes with a burger, chips and a drink.
   
• Manufacturing: the product code is a normal product that holds stock, it can be pre-made into stock, made to order and it can be used in a purchase order. You can also buy the finished product from a supplier as well as making it into stock for the showroom or for sale later.

• A labour component can be entered to factor into the cost of the product.
  For example: the making of a lemonade drink that is produced mainly from raw lemons, sugar and water.