If kits are setup properly in Microsoft Dynamics Wonderful Plains, they can save the client a lot of time and overhead. Inventory Bills of Material are a fantastic tool, but can involve a lot of overhead to manage. Kits on the other have some challenges to them, but only want to be set up once and can be considerably less difficult to manage. Let’s take a appear at some of the advantages and challenges of utilizing kits in Great Plains
Rewards of Kits in Great Plains
1. When you need to have to package several items with each other to sell as one unit.
This is the main goal behind the use of kits in Wonderful Plains. What this enables you to do is set up an item as a kit item and then add components in the setup of the kits. You are in a position to add as numerous components as you like to the Kit Item. When you add the kit item to the Sales Order in Sales Order Processing, Excellent Plains makes use of the expense from component items as the cost of sales for the kit item based on the valuation method that is setup. This is successful when there are promotions and you would like to sell several items collectively as a package – you are in a position add and take away elements as you see fit. You can also repackage and rebrand your item and then test the item for advertising and marketing purposes without changing any of the core traits of the item that is manufactured.
two. When you want to keep away from making an Inventory Bill of Material transaction.
For example, a client sells a finished item that also involves accessories and extra elements to the finished item. A frequent remedy for many Wonderful Plains consultants would be to recommend an inventory BOM to generate the final completed item – which is not a poor notion. Even so, yet another efficient remedy would involve promoting the item as a Kit and then adding the finished solution and accessories as elements of the Kit. This situation operates nicely and can wind up saving the client a lot of time and money.
The Downside – What you require to contemplate when working with Kits
1. If you are using the Returns Module (RMA’S), you cannot return the Kit Item.
In version Microsoft Dynamics GP 10 and earlier, you do not have the selection to select the kit to return in the Returns Management module. When you generate an RMA in Returns Management, you are only capable to select the components and not the kit item itself. This is logical considering that the components are what gets moved back into inventory through an inventory transaction. Nonetheless, when you are managing Returns by way of the RMA module, it potentially a lot more effort to manage the elements of the kit rather than the kit item itself.
You also shed visibility in the Returns module as to what kit item was returned. So if you want to see how a lot of of the promotional products have been returned and you are making use of Returns Management, you would not see the kit item in returns. Nonetheless, the RMA module in Fantastic Plains creates a credit in Sales Order Processing for the kit item. You nevertheless would have visibility of the return of the kit item in Sales Order Processing if you set up the RMA module to capture this.
2. You can not generate an inventory transaction or inventory transfer for a kit item.
When you produce an inventory transaction or an inventory transfer, you will need to have to generate person line item for each of the elements. The challenge is when you are operating with far more than 1 Kit with three or 4 elements and numerous web sites, it can develop some further perform.
3. Kit Items will not completely allocate till all kit component quantities are allocated.
What this means is that if you order a quantity of two on a Sales Order, and the item is a kit item, you can’t partial ship a quantity of one particular on the Sales Order – you have to ship a quantity of two. All of the elements things of the kit have to be completely allocated ahead of the kit line item will have a choose ticket printed and the line item can be fulfilled.
Where this can cause a dilemma is when you have quantities higher than one and now you require to partial ship an item. The buyer ordered ten, but calls and says, “I want five of those shipped out nowadays.” If the item was not a Kit, we could just allocate and fulfill the partial quantity. With a kit Item, we will want to modify the lines on the Sales Order and create two new lines for quantities of five and then delete the line with the quantity of ten. In this case, you do not have any other solutions. Nevertheless, if you do not have several partial shipments, then this is not actually an problem for you.
Many of my clients have utilized Kits as a strategic practice for sales campaigns and processes that normally would involve BOM’s. Do not let the negative side of the Kits maintain your organization from moving forward – just be aware of the downfalls.
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