Rolled costs and prices on kits

You can combine individual component costs or prices to determine the cost or price of the finished kit. This practice 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.

Prebuilt kits

Because prebuilt kits and components are stocked in your warehouse, they are handled as standard products. You can use Pricing and Discounting hierarchies and utility functions to create, update, and delete kit price and cost records. You also can roll the costs when it is assembled.

If the cost of a component changes, you must run the KP Administrator Cost Kits From Components Report to roll the costs again and change the price of the kit. 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.

Dirty core components of core kits are costed at market cost, instead of the cost that updates the General Ledger. The used for market cost is specified in the Cost Used for Market Cost on Implied/Dirty Cores field in SA Administrator Options-Products-Costs.

Build-on-demand kits

A build-on-demand kit always rolls the components’ current costs when it is ordered by the customer, including components that are added or removed in the ordering process. Rolling the price is optional. If you roll the price and add or remove components, the price adjusts. If the roll-up pricing is used, you can select the Price option on the component record to include the component in the roll-up pricing. Clear the option for no charge options and other special incentives for the customer.

Fabricated kits

Because fabricated kits are considered a whole product when transferred to the sales order warehouse, prices are not rolled on the kit components. The price for the kit comes from the sales order warehouse kit pricing structure without component rolls.

Product costs are rolled when the kit is entered in Sales Order Entry. During the acceptance process in KP Work Order Center Entry, the kit cost is rolled a final time. The final cost is copied to the sales order line and the tied warehouse transfer line.