Information about kits in Microsoft Dynamics GP

INTRODUCTION
This article discusses kits and how they are used in Microsoft Dynamics GP and in Microsoft Business Solutions - Great Plains.
More information
Kit quantities are not tracked in Inventory in Microsoft Dynamics GP. Quantities are tracked for the components of a kit. When you enter a kit on an order or on an invoice, each component is checked for shortages. A kit cannot be a component of another kit.

Kits can be sold only in Sales Order Processing. Kits cannot be sold in Invoicing. A kit cannot be purchased through Purchase Order Processing or by entering an increase adjustment for the kit. The components must be purchased because the components are tracked in Inventory. The kits are not tracked in Inventory.

You cannot partially transfer kits. For example, for a kit item on an order, the Quantity to Order is 5. You cannot transfer 2 to an invoice and 3 to a backorder. You must either invoice or backorder all 5. This is true for all other transfers on backorders, on invoices, and on returns.

The distribution accounts will come from both the kit and from the kit component, depending on the account type. Posting accounts that are used for kits are as follows:
  • The Accounts Receivable account type uses the Customer Account Maintenance posting account.
  • The Sales account type uses the Customer Account Maintenance posting account or the Item Account Maintenance for Kit Item posting account.
  • The Commission Expense account type uses the Posting Account Setup for Sales Series posting account.
  • The Commission Payable account type uses the Posting Account Setup for Sales Series posting account.
  • The Inventory account type uses the Item Account Maintenance for Component Item posting account.
  • The Cost of Good Sold account type uses the Customer Account Maintenance posting account, the Item Account Maintenance for Kit Item posting account, or the Component Item posting account.

Notes
  • If the Posting Account From field in Sales Order Processing Setup is set to Customer, the Sales account and the Cost of Goods Sold account will come from the Customer Account Maintenance window.
  • If the Posting Account From field in Sales Order Processing Setup is set to Item, the Sales account will come from the Item Account Maintenance window for the kit item.
  • If the Posting Account field in Sales Order Processing is set to Item, the Cost of Goods Sold account will come from the Item Account Maintenance window for either the kit item or the component item, depending on the settings in the Item Kit Maintenance window. If the Cost of Goods Sold field is set to From Component Item, the Cost of Goods Sold account will come from the Item Account Maintenance window for the component item. If the Cost of Goods Sold field is set to From Kit Item, the Cost of Goods Sold account will come from the Item Account Maintenance window for the kit item.
  • Service, Flat Fee, and Miscellaneous item types will not post to a Cost of Goods Sold account.
Microsoft Dynamics GP lets you create a kit without assigning components to it. However, when the kit is entered on an order or on an invoice, no unit cost will default in, and no adjustment will be made to the Cost of Goods Sold account or to the Inventory account. This is true even if a current cost and a standard cost are entered for the kit in the Item Kit Maintenance window. You must have a component assigned to the kit to trigger a journal entry to the Cost of Goods Sold account and to the Inventory account. The amount for the entry will be the actual cost or the standard cost of the component, depending on the valuation method that is used for the component.

You will be unable to return to multiple return quantity types on a kit. This is true because you can change or add components to a kit when you enter the transaction and because kits do not track quantities. In the Sales Item Detail Entry window, you can click Kits, click a component item, and then click the expansion button next to the Extended Kit Quantity field. By using this window, you can return individual components to multiple return quantity types. Remember that the only quantity field that is updated for the kit is the quantity sold. The return quantity type that you enter for the kit is a default for the components. This return quantity type can be changed for each component.
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Article ID: 865156 - Last Review: 06/20/2016 14:44:00 - Revision: 7.0

Microsoft Dynamics GP 10.0, Microsoft Dynamics GP 9.0, Microsoft Business Solutions–Great Plains 8.0, Microsoft Business Solutions–Great Plains 7.5, Inventory Control

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