Question:
Creating Inventory Kits with advanced Bill of Materials

 

Creating Inventory Kits with advanced Bill of Materials

Setting up Kits:

• Create stock numbers for each kit, subkit, and component.
• Create a bill of materials table

1. In Inventory, select Stock > Stock Item Maintenance from the menu bar.
2. Enter a unique alphanumeric character for the kit, subkit, or component in the Number box.
3. In the Description box, assign a meaningful description to the kit, subkit,or component such as Bicycle Startup Kit.
4. Enter the required information in the IN Stock window to create a new stock item.
   
   For more information on creating stock item records, refer to your Accounting user’s guide.
   
    
5. On the Qty / Price Info tab, select the type of pricing you want from the Pricing Type drop-down list.
6. Specify the price.
   
   You can set a price for a kit without having to specify prices for the subkits or individual components; these can be set at the time of sale. For more information on setting prices, refer to your Accounting user’s guide.
    
7. Select Save, or Cancel to exit without saving.

Creating a Kit in Advanced Bill of Material

1. In Inventory, select Kits > Set Up Kits from the menu bar.
2. Type or use the Lookup to enter the kit’s stock number in the BOM Stock box. When you select a stock item, the description is inserted in the Description box. You can change the description if you want. The Estimated Cost label displays the cost of the finished item based on the combined costs of the components and subkits. (This label is updated each time a component or subkit is entered at the bottom of the window.)
3. Select the appropriate costing method for this item.
   
   Detail: Calculates the cost of the finished item by adding the component and subkit costs specified in this table.
   
   Last Cost: Calculates the cost of the kit finished good by adding the cost paid for each component and subkit the last time it was purchased.
   
   Valuation Method: Calculates the cost of the Advanced BOM kit by adding component and subkit costs as determined by the valuation method specified by the Inventory Code of the stock item. If you decide to use "dummy" kits with placeholder subkits and components and substitute the actual subkits and components at the time of the sale, we recommend selecting either Last Cost or Valuation Method. This way, when you substitute the actual subkits and omponents at the time of the sale, their costs will be accurately reflected.
   
   For more information on the different valuation methods, refer to your Accounting user’s guide.
   
    
4. Activate the Update At Post check box to have the cost updated each time a bill of materials transaction is posted for this item.
   
   Note: The Update At Post option only applies to items that use the Last Cost or Valuation cost methods. For kits that use subkits as components, this option only updates the items listed in the BOM Stock box at the top of the window, and in the detail grid at the bottom of the window. Any subkits or components that are within the items in the detail grid but not listed separately are not recalculated using this option. To update the costs of everything included in all subkits of a kit, use the Kit Assembly Report, which shows the relationships of all components.
   
    
5. In the Detail Type box select either Inventory or Non-Inventory from the drop-down list.The line number is automatically assigned by the system to the component detail line entry as it is added to the list.
    
6. Enter the stock item or subkit stock number in the Component box. You may add a new component or subkit on the fly if necessary by typing the new number. When you press ENTER you are asked if is is a Non-Inventory item. Answer No if this is an Inventory item, and the IN Stock window appears. Fill out the boxes as described in the Inventory section of your Accounting user’s guide.
    
7. The description is generated from the inventory stock item list, but you can change it by highlighting the box and typing over it.
    
8. In the Quantity box, enter the quantity of this component or subkit required to make one kit.
    
9. If you selected Detail for your costing method, enter the cost of each component and subkit to calculate the cost of the kit. If you leave this box blank, the software will calculate the cost of each component and subkit for you based on the last cost for the item in the IN Stock window.
   
   Note: Costs for items other than inventory items that go into the kit can be included by using non-inventory detail lines. These non-inventory detail lines have nothing to do with Order Entry Non-Inventory Codes.
    
10. Repeat the previous steps until you have entered all the components and subkits that make up the bill of materials list for the kit. Use the TAB, ENTER, or arrow keys to move to the next line and enter more components or subkits.
    
    Note: The Inquiry and Requirements reports use the new estimated production cost (last cost). This way, you can use last cost for estimates, but use the inventory valuation method to determine the accurate cost of production.
     
11. Select Save to retain the information for this kit, or select Cancel to close the window without saving the information.