Internal Sales for Kit Items

The inventory level of material shipped between warehouses as part of an internal sales order must be the same. Therefore, the product structure settings applied for the kit item within the internal Purchase Order (PO) is respected on the internal Customer Order (CO). In addition, it is not possible for an internal CO to create an kit item based on an stand-alone PO line. This solution will ensure the same item reservation level at goods dispatch, goods in transit and at PO goods receipt.

The kit's material is always retrieved from its related internal PO, since possible manual adjustments on the PO are to be respected. This implies that for internal sales the product structure in 'Product Structure. Open' (PDS001) must only be maintained on the facility of the receiving warehouse. If a product structure is defined for the facility of the dispatching warehouse in (PDS001) it is never applied for an internal CO.

The inventory level of the kit item is defined in (PDS001) and this determines the reservation level on inventory. The options are: 1 - 'At kit number level' and 2 - 'At material number level'. These settings are inherited from the internal PO line to the internal CO line.

The same rule applies for the price level setting in (PDS001), which is inherited from the internal PO line to the internal CO line. The PO's sales price of the kit can be carried over as the CO's sales price of the kit with price origin A - ‘Price from external system via API or internal purchase order'. This is controlled via the setting ‘Source sales price’ in 'Settings – Batch Orders' (OIS278). If the PO's sales price is defined to be disregarded, the CO's sales price is based on its own price search sequence defined per CO type in 'CO Type. Open' (OIS010).

Kit with reservation and pricing level on kit header

When kit items in the internal PO have the reservation level and pricing method set on the kit header, the same is applied at entry of the internal CO.

The internal PO creates order lines for both the kit header and its components, but only the PO line for the kit header contains price information. The quantity is also maintained per kit header but also displayed for information purposes on the kit lines.

The PO's kit header item number, order quantity and sales price is carried over and used when creating the corresponding CO batch order line. Once the CO batch order is transferred to a firm CO, the kit components are retrieved based on the internal PO's kit lines. You will get CO order lines for both the kit header and the kit lines, however, the kit lines are only for information purpose.

The supplier confirmation in 'Purchase Order. Confirm' (PPS250) is performed at the kit header level only.

AP invoice matching is performed at the kit header level.

Kit with reservation level on the kit header and pricing level on kit components

When kit items in the internal PO have the reservation level on the kit header and pricing level set on the kit components, the same is applied at entry of the internal CO.

The internal PO creates order lines for both the kit header and its components. The kit header contains quantity information and a sum of the purchase prices for its kit lines. The kit lines contain the individual prices. The PO's kit header item number, order quantity are carried over and used when creating the corresponding CO batch order line. Once the CO batch order is transferred to a firm CO, the kit components and their sales prices are retrieved based on the internal PO's kit lines. You will get CO order lines for both the kit header and the kit lines, however, the kit lines are only for pricing information.

The supplier confirmation of order quantity in (PPS250) is performed at the kit header level and confirmation of sales prices is performed at the kit line level. Partial supplier confirmation creates a new PO line and sublines based on the confirmed kit header quantity. The new PO line will reference the same CO line, since it still holds the entire order quantity even though it will be partially delivered against several PO lines. The same logic applies to partial shipment advice and transport notification.

AP invoice matching is performed at the kit header level.

Kit with reservation and pricing level on kit components

When kit items in the internal PO have the reservation and pricing level set on the kit components, the internal CO will not create a kit item and instead only hold the components as stand-alone order lines.

The internal PO creates order lines for both the kit header and its components. Only the kit lines contain quantity and sales price information. The PO's kit lines item number, order quantity and sales price are carried over and used when creating the corresponding CO batch order lines. You will get stand alone CO order lines for each kit component.

The supplier confirmation in (PPS250) is performed at the kit item level only. Partial supplier confirmation creates a new PO line and sub-lines based on the confirmed kit header quantity. The new PO line will reference the same CO line, since that CO line still holds the entire order quantity even though it will be partially delivered against several PO lines. The same logic applies to partial shipment advice and transport notification.

AP invoice matching is performed at the kit line level.

Kit with reservation level on kit components and pricing level on kit header

This kind of kit item is not supported for a purchase order and hence not supported for internal sales. It will always be treated as a normal item on the purchase order.

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