Business value

Kitting is used to bundle products that are usually ordered together. So, when a sales order is entered only the kit item is entered and the associated components are placed automatically on that order.

Prices are set up on kit item level and are distributed to the kit components during order entry.

Warehouse picking control can be set up in such a way that only full kits are delivered to customers, to make sure that customers only receive complete kits.

Assumptions

• Items are labelled as a kit item via the field Kit on the released product.
• Kits are set up as Bill of Materials. Therefore the kit must be set up with an item product type. So, the item cannot be a service item, because in that case no BoM can be setup. The same is true for non-stocked item model groups: no BoM can be set up.
• Kit and kit components can be used in WHS.
• Line status of the kit item is set to Cancelled. So, the actual delivery (physical and administrative handling) takes place at the level of the kit components. So, there will be no inventory and financial transactions on kit level, only kit components level.
• ATP takes into account the delivery dates of the kit components. The most restrictive kit component in terms of delivery date will determine the final ATP delivery date of the whole kit (kit item and kit components).
• Kit price calculation is always done ‘top-down’. The result of kit price calculation is written away in the field discount amount per kit component line.
• Kit logic also applies to sales return orders.
• Kitting is not supported in combination with the Retail module.

Setup

Parameters

Inventory and warehouse management > Setup > Kitting parameters > tab General.

Field	Description
Enable kitting	Kitting enabled. When disabled form, field and menu items are hidden on sales order.

Prevent partial delivery of kits	Prevent partial delivery of kits. During the release-to-warehouse process an inventory availability check is done, to make sure that the kit can be delivered for the full line quantity.
Show Kit item on grid	If enabled an extra column Kit is added to the sales line, so it`s easier to see that the kit component is part of that kit.

Preserve Kit module storage dimensions

If this parameter is set to Yes, the Kit modules will get the storage dimensions following the default order settings logic. If set to No, the storage dimensions of the Kit item will be inherited.

If you want the storage dimensions of the Kit components to be populated automatically with storage dimensions settings form de default orders settings, you have to use a BOM without Site and Warehouse. The Site and warehouse on the SO header, also must be empty.

Released products

Product information management > Products > Released products > Fast tab engineer

In this form a released product can be made a kit. Set the field Kit on the fast tab Engineer to Yes and the released product will behave as a kit.

Field	Description
Kit	Item is a kit

Sales orders

Sales and marketing > Sales orders > All sales orders > Line details > tab Product > field Kit

On the sales order lines a new field Kit is added. This field indicates that the sales item line does contain a kit. When a kit is added to the sales line the field is default set to ‘yes’. In that case the kit is exploded and the kit components are added to the sales order. The sales line status of the kit line is set to “Cancelled”. When this kit parameter is unchecked, the components lines are deleted and the sales line status of the kit line is set to “Open order”. In this way, the item can be processed as a regular item. This means that the kit can be delivered from stock.

Sales and marketing > Sales orders > All sales orders > Sales order lines > button Show/Hide modules

It is possible to show or hide the kit component lines. When the component lines are hidden the logic concerning prices, quantities, dates, etc. still applies.

Sales and marketing > Sales orders > All sales orders > Sales order lines > Icons

An icon on the sales order line indicates the kit line and the kit components.

A field Kit shows the kit item for the component sales lines.

Sales and marketing > Sales orders > All sales orders > Sales order lines

Based on the parameter "Show Kit item on grid" an additional column, named "Kit" will be added to the sales line. If this parameter is set to ‘Yes’, the column will be shown. The Kit item number is stored in this field. It makes visible which kit-modules belong to which Kit-item. 

Sales and marketing > Sales orders > All sales orders > Sales order lines > button Inventory > Update tracking dimensions

The Kitting logic is that all the fields of the Kit-modules on the sales order are edit via the Kit item. So the changes on the Kit item sales line, will be inherited or calculated to the Kit modules sales lines. That is way sales line containing Kit modules can not be edit. There are situations that require Tracking dimensions to be editable. That is why this "Update tracking dimensions" form is introduced. The fields Batch number, Serial number, and Owner can only be edit if the concerning dimension is activated on that Tracking dimension group.

 

Procedure sales orders

Insert and explosion

A sales order is created and a kit item is added to the sales line. When saving the record the kit item is ‘exploded’ and the kit components are added to the sales lines. The explosion is done for the active BoM of the sales line item (standard functionality).

Kit price calculation

The kit price calculation is also done. The following calculation is performed, which do result in discount amounts on the kit component lines:

1.      Calculate distribution percentage (see column (1) in table below):

(SalesLine.SalesQty * SalesLine.SalesPrice) / sum of (SalesLine.SalesQty * SalesLine.SalesPrice) for all component lines

2.      Distribute the net amount of the kit line to the net amount of the component lines (see column (2) in table below):

SalesLine.LineAmount * Distribution percentage

3.      Discount field will be used for calculating the difference between unit price of the component and the unit price as part of the kit (see column (3) in table below):

SalesLine.SalesPrice – (SalesLine.LineAmount/ SalesLine.SalesQty)

See table below for an example:

 

	Qty	Unit price	Discount amount (3)	Discount %	Net price	Net amount (2)	Distribution amount	Distribution % (1)
KIT	10	100,00	10,00	6%	84,60	846,00
Comp 1	10	50,00	19,79		30,21	302,14	500,00	35,7%
Comp 2	40	20,00	7,91		12,09	483,43	800,00	57,1%
Comp 3	10	10,00	3,96		6,04	60,43	100,00	7,1%
						846,00	1400,00

ATP calculation

ATP calculation is done for every kit component. So, for every kit component the requested delivery date is calculated, using standard ATP logic. The latest delivery date of the components is set as the delivery dates for the kit and all kit components. This way, the kit and belonging components will have the same delivery dates.

Adjusting/deleting sales lines

When deleting sales lines the following applies:

• Component lines cannot be deleted from the kit.
• When the kit line is deleted, the related component lines are removed too.

When adjusting the kit line, the component lines will be updated. This applies to the following fields:

• Quantity
• Storage dimensions (e.g. site, warehouse, location)
• Discount amount
• Item sales tax group, Sales tax group
• All delivery dates (requested and confirmed ship and receipt dates)
• Address
• Delivery mode, delivery terms

Manual check for stock availability for kit components

Sales and marketing > Sales orders > All sales orders > Sales order lines > button Product and supply > option Report as finished

The menu option Report as finished is added to the sales line. With this option the stock availability of the kit components can be checked. When the form is opened from the sales order line the dimensions of this line are taken to calculate the stock availability.

Calculate confirmed delivery dates

Sales and marketing > Sales orders > All sales orders > tab Sell -> option Confirmed delivery dates

To align the delivery dates for the sales order lines and especially for the related kit components, the function “Calculate confirmed delivery dates” will be used. During the calculation of the confirmed delivery dates, the kit structure is used to override the confirmed ship date for the kit component lines, so that they will be confirmed all on the same delivery date.

Procedure logistics

Release to warehouse - Completeness check kits

During the release-to-warehouse process,  additionally for the kit components  an inventory availability check is done, to make sure that the kit can be delivered for the full line quantity. In this process the new parameter ‘Prevent partial delivery of kits’ comes into account.  The check is done when the ‘Release to warehouse’ action is performed. Depending on the setting of the parameter a kit is yes/no released. See below two examples with different settings for the parameter ‘Prevent partial delivery of kits’:

Back order strategy = Backorders allowed
Setting for prevent partial delivery of kits = Yes
Type	Item number	Requested qty	Qty on hand	Qty to deliver
Kit	A	4
Component	C1	4	4	0
Component	C2	4	3	0

 

Back order strategy = Backorders allowed
Setting for prevent partial delivery of kits = No
Type	Item number	Requested qty	Qty on hand	Qty to deliver
Kit	A	4
Component	C1	4	4	3
Component	C2	4	3	3

Work lines

A field Kit shows the kit item for the component work lines.

Return orders

Sales and marketing > Sales returns > All return orders

The kit item is not exploding on the RMA-order!

Like with regular items, RMA-order can be processed by adding the item on the order manually or by using the function ‘Find sales order’.

Manually, two scenarios are supported:

1. Returning kit modules only. The kit modules will be returned and can be received by creating a sales return order. Kit module will be treated as a regular item.
2. Returning kit item itself. The customer returns an assembled kit item, so the individual modules cannot be returned anymore. Within this scenario the kit item itself is returned. After inspection or repair this kit item can be sold again to the customer, by switching off the parameter ‘kit item’ to No on the regular sales order line (see above). Or the kit item can be disassembled and the kit components can be put back on stock.

Via function ‘Find sales order’ three scenarios are supported:

1. The invoiced kit structure is visible (both kit and kit components). Kit item (line) is selected and marked as ‘Kit’. In this case the Kit structure is inherited on the RMA-order, exactly the same as on the sales order. That means, Kit item is visible on the RMA-order lines and the status is Cancelled. The kit components are visible and will be processed. (Default)
2. Selecting only the kit item and uncheck the ‘Kit’ parameter. This why the Kit item is inherited on the RMA-order like a regular item. Assembled kit item.
3. Uncheck the ‘Kit’ parameter and select one or more kit components instead of the kit item. The components will be inherited on the RMA-order, like regular items.

Also the button ‘Show/hide modules’ is visible in the sales return lines.

Kitting and Intercompany

Kitting is also workable in an intercompany situation. The following points are important to take into consideration:

• For now, only situations are supported where the IC-chain starts with an original sales order (both stock and direct delivery). So, IC-chains that do start with an intercompany purchase order or intercompany sales order are not supported.
• On the original sales order the kit and kit components are seen as a whole. This means that the delivery type will be set based on the setting of the kit item.
• Kitting must be enabled  (see above for parameter) in both the sales and the delivery company.
• Kit item must be available in in both the sales and the delivery company. Even if kit item is just a ‘phantom’ in the sales company and not needed in the delivery company.
• The field Kit on the kit item needs only be set in the sales company.
• The BoM for the kit item is only needed in the sales company.
• In the IC-chain only the kit components are copied from the sales company to the delivery company. So, the kit item itself is not copied.
• The information from the table KitExplosionHistory is copied from the sales company to the delivery company. This means that the Kit structure is also known in the delivery company. This is useful in the case the kit item and kit components need to be printed on documents. DP-classes for sales confirmation, packing slip and invoice are extended for this purpose in the delivery company.
• An icon on the sales order line in the delivery company indicates that the sales line is part of a kit.
• In the delivery company the kit item is copied to the field Kit for the components on the sales line. So, the kit item where the kit components belongs to is known for the kit components sales lines.
• In the delivery company the kit item is copied to the field Kit for the components on the work line. So, the kit item where the kit components belongs to is known for the kit components work lines.

Kitting and Forecasting

Forecasting for kit module lines is by default supported in the application. Standard functionality can be used.

Forecasting for kit items is also possible by using forecasting allocation keys. To facilitate the creation of those allocation keys, functionality is introduced whereby the BOM can be copied to an allocation key. For this purpose a button is added to the BoM form: Create allocation key.

Bill of Material 

Product information management > Products > Released products > tab Engineer

Button	Description
Create allocation key	When pushed based on the BOM an allocation key is created or updated.

When the button is pushed the allocation key is created based on the BOM information, whereby the percentage per allocation key line is calculated with the following formula: (BoM qty * 100) / per series.

Once created, the allocation key can be updated when the BOM is changed. To do this, in the form the parameter ‘Update existing keys’ to Yes.

It is also possible to create/update allocation keys in bulk, by using the menu item ‘Create allocation keys’.

Create allocation keys

Inventory management > Periodic tasks > Forecast updates

Button	Description
Create allocation keys	When pushed based on the selected BOMs allocation keys are created or updated.