One small topic, 10 questions on Kit Items (Part 2):
Q1 – What is the financial transaction types when I assemble a kit and when I disassemble a kit?
Answer – KITMAKE and KITBREAK respectively
Q2 – When I assemble a kit in which tab of the View Inventory Transactions action will I find the financial transaction for the kit item?
Answer – Receipts & Transfers. You are receiving an assembled kit. There will also be financial transaction records for each of the component items in the kit, but these will be found in the Issues & Returns tab.
Q3 – When I disassemble a kit in which tab of the View Inventory Transactions action will I find the financial transaction for the kit item?
Answer – Issues & Returns. You are issuing the assembled kit. There will also be financial transaction records for each of the component items in the kit, but these will be found in the Receipts & Transfers tab.
Q4 – What are the possible Issue Cost Types for the kit item?
A – AVERAGE
B – AVERAGE or STANDARD
C – AVERAGE, STANDARD or ASSET
D – AVERAGE, STANDARD, LIFO or FIFO
Answer – B, the kit item can have an issue cost type of STANDARD or AVERAGE.
C – It cannot be ASSET; it is in the lookup, but you will receive the error “BMXAA1943E – Asset cost is for rotating items only.” when you select it.
D – The component items of the kit can have a LIFO or FIFO issue cost type, but not the kit item itself.
Q5 – Can you purchase a kit item from a vendor?
Answer – Yes. There is no effect on the component items in the kit.
Q6 – When you assemble a kit, from which bins will it select the component items that make up the kit?
Answer – It depletes from the Default Bin of each component item first and then uses random bins after that to make up the quantity.
Q7 – If you allow Negative Current Balances (Organizations – Inventory Defaults setting) will the assembling of a kit cause a balance of a component item of the kit to go negative?
Answer – No, if there was a negative balance for a component item, then there would be no balance to assemble the kit.
Q8 – If the kit item KIT100 includes a quantity of 1.00 of another kit item KIT100A what happens to KIT100A when you assemble kit item KIT100?
Answer – The current balance of KIT100A is depleted by 1.00. It wasn’t a trick question. Nothing happens to the component items of KIT100A.
Q9 – Why might you receive a KITCOSTVAR financial transactions and where would you find this?
Answer – An Inventory Transaction (INVTRANS) record of type KITCOSTVAR is created if the issue cost type of a kit item is set to STANDARD and you are assembling the kit item. The Line Cost is the difference between the Standard Cost of the kit item and the costs x quantity of each component item using their costing method. If that figure is lower than the kit item, then the line cost on the INVTRANS record is positive.
Q10 – There is a current balance of 10 for a kit item made up of four other items? The Issue Cost Type for the kit item and all of its items in the kit is set to AVERAGE but the kit item still has an average cost of zero. If the sum of all of the components of the kit with their quantities is $5.00. What would be the average cost of the kit item if I assembled a further 10 items of the kit.
Answer – $2.50. Effectively you are issuing $5.00 x 10 = $50.00 of component items and the current quantity will be set to 20, and so the average cost is $50.00/20 or $2.50. The point here is that it is summing up the cost of the component items of the kit which are being issued and this total cost is what is being received by the kit item. The average costing of the kit item takes into account the existing average cost and current balance.