Combination of customer- and distributor-owned components

If customer-owned and distributor-owned components are used to build a kit product, the customer is billed for the distributor-owned components. After assembly is complete and the work order is updated, a Bill on Receipt order transaction is created in Sales Order Entry. The customer is then invoiced for the components. The distributor-owned inventory is moved to customer-owned inventory, which results in a customer-owned kit.

Note: If fixed costs are used for customer products in a warehouse, the fixed customer cost for the warehouse product is used for the component cost.