Creating Product Kits

Product kits are comprised of multiple components sold together as one unit. For example, the ABC Kitchen Sink product kit contains all the components making up a kitchen sink - sink, faucet, and hot and cold taps.

Use Product Kit Maintenance to create product kits. When creating product kits, define the following:

• Whether the product kit is a standard kit or dynamic kit.

• Calculation methods to use in selling the product kit.

• Kit components of which the product kit is comprised.

• Kit component settings, such as whether the product kit can be sold without the component.

To create a product kit:

1. From the Maintenance menu, select Product to display the Product Maintenance window.

2. Create or open the product record to use in creating a product kit.

Note: If you open an existing product record, it must already be defined as a product kit in order to access the Product Kit Maintenance window. In addition, the product record cannot exist on any open orders or bids, and its on-hand quantities must be set to zero before you can edit the record's product kit settings.

3. From the Inventory menu, select Kit Maintenance to display the Product Kit Maintenance window.

The system populates the Description field with the product name.

4. Select the check boxes, as needed.

   Check Box	Description
   Dynamic Kit	Sets the product kit as a dynamic kit. Do not select to leave the product kit as a standard product kit. Important: Once you define a product kit as dynamic, you cannot change it back into a standard kit.
   Print Components	Prints each component of the kit on tickets and invoices. Leaving this deselected prints only the kit description on tickets and invoices.
   Prorate Price	Select to prorate the price for the kit when items are back-ordered. Select how to price partial kits. Deselected - Uses the price for the kit components that appear on the order generation that ships first. All back-ordered kit components on subsequent order generations use a zero price override. This is the default. Selected - Prorates the price for the kit when items are back-ordered. The price is distributed across all generates that include kit components. The prorated price is calculated using the LIST price for each component in the kit. If no LIST price is found, the system uses zero.

5. To set price and calculation methods for the product kit, populate the fields in the Calculation Methods area.

   Field	Description
   Calculate Sell Method	Calculation method to use in determining the selling price of the product kit. Select a calculation sell method to assign to the product kit. The system populates this field with Use Kit Product Price.
   Calculate Cost Method	Calculation method to use in determining the cost of the product kit. Select a calculation cost method to assign to the product kit. The system populates this field with Use Kit Product Price.
   Calculate COGS Method	Calculation method to use in determining the cost of goods sold (COGS) for the product kit. Select a calculation COGS method to assign to the product kit. The system populates this field with Use Kit Product Price.

6. Assign components to the product kit by populating the columns for each kit component.

   Column	Description
   Quantity	Amount of the component needed to create the kit. Kit components can have different units of measure than the product kit. When allocating locations for kit components, the system uses the component's unit of measure and not the kit's.
   Spoil %	Over-packing percentage to apply to the shipping quantity of kit components. Over-packing small items when they are enclosed in bulk for a manufacturing application compensates for unavoidable waste when the kit arrives at the customer's site. Extra components are added to the kit when the spoil percentage multiplied by the component quantity multiplied by the ship quantity of the kit results in a whole number (spoil % x component quantity x ship quantity = whole number). For example: If the spoil percentage is .02% for a quantity of 10 of component A, and 40 kits are ordered (.002 x 10 x 40 = .8), no extras of component A are added. However, if 120 kits are ordered (.002 x 10 x 120 = 2.4), two extras of component A are added.
   Component Description	Product to include as a component in the kit. You can select products from product families or price lines. Note: You need the OE.PRODUCT.USE.REVIEW authorization key assigned to add a component with a product status of Review.
   Key	Whether the component is a key kit component, meaning that it must be available to ship with the current order generation and cannot be backordered when selling partial kits. Select the check box to indicate that the component is a key kit component; otherwise, leave the check box unselected.

7. Review the information for each component.

   Field	Description
   Available	Amount of the component that is currently available on-hand. From the View > Change View menu, select Availability to display this column.
   Default List	Default list price of the component. From the View > Change View menu, select Default List to display this column.
   Cost	Commission cost of the component. From the View > Change View menu, select Cost to display this column. You need to be assigned the COST.VIEW authorization key to view this cost.
   COGS	COGS (cost of goods sold) cost of the component. From the View > Change View menu, select COGS to display this column. You need the COGS.VIEW authorization key assigned to view this cost.

8. Save the information and exit the window.

More Options from the Product Kit Maintenance Window

The Product Kit Maintenance window also offers these options:

See Also:

Creating Product Records

Product Kits Overview

Purchasing Product Kits