Prebuilt kits
Components that have been assembled into a kit and are readily available as stocked products are referred to as prebuilt kits. If a kit is prebuilt, it is assembled in advance of actual demand and stored in your inventory as a single product with its own identity. Some distribution companies refer to prebuilt kits as assemblies.
When the prebuilt kit is sold or transferred, a pick ticket is printed, the kit is taken from the warehouse shelf, and inventory is reduced. If the kit is not available, a back order is produced and a work order to replenish the kit can be created in KP Work Order Center Entry or through the KP Recommended Replenishment Action Report. The components of a prebuilt kit always print on the work order but never print on the pick ticket.
Prebuilt kit components cannot have a core charge in Product Setup. If you attempt to assign a core charge component to a prebuilt kit, an error message is displayed. If a product is assigned a core charge after it has been assigned as part of a prebuilt kit, when you sell the product in Sales Order Entry and tie the line item to a work order, an error message is displayed indicating that a prebuilt kit cannot contain a core charge product. A labor product cannot be set up as a prebuilt kit.
Usage of the actual prebuilt kit is recorded with every sale, as it would be for any product. This builds a usage history for the kit, so that you can schedule work orders and keep the appropriate stock on the shelf. The processing of work orders produces the usage records for the components.
Component and Demand
Prebuilt kits record component usage when the kit is assembled through a work order. Usage is recorded for the kit itself when the kit is sold. If a component is out of stock, the stocked components are reserved until the out-of-stock component is received. After the component is received, the work order is filled when Sales Order Entry Processing Back Order Fill runs. Then the prebuilt kit can be assembled.
Sourcing components
If you do not have the components required to complete the kits ordered, you can tie a line for a stock component to a new or existing purchase order or warehouse transfer. If a component of the prebuilt kit is a prebuilt kit, you can also tie the line to another work order. Lines items for kit components in Purchase Order Entry and Transfer Entry can also be manually tied to the sales order. If you do not source the component, it is replenished through the Recommended Replenishment Action Report process.
Rolling Costs and Prices
You can combine individual component costs or prices together to become the cost or price of the finished kit. This is known as rolling costs or prices. When you roll costs, the cost that is assigned to the kit is the sum of the costs of the components. A prebuilt kit can roll the costs when it is assembled, but if the component cost changes, the kit cost does not. Run KP Administrator Cost Kits From Components to roll the costs again. If you manually enter a cost for a prebuilt kit, you must manually change the cost of the kit any time a component’s cost changes.