Inventory Kits - Inventory Sales

[LQDPixels]

Hi,

I sell items that are made of two components.

I sell the individual components separately as well as the ‘combined’ item. Say it’s a Nut, a Bolt and a Nut/Bolt set.

I have my Chart of Accounts set up in a way that tracks each type of item e.g.

Sales - Nut
Sales - Bolt
Expense - Nut
Expense - Bolt

That way I can directly see how much was spent on Nuts and how much income was generated.

So I initially made the Nut/Bolt set an Inventory Kit however even though the Nut and Bolt (inventory items) have been put towards the custom accounts, the inventory item (Nut/Bolt set) will only allocate to ‘Inventory Sales’ when I receive money (we run online and don’t have Purchase Orders or Account Rec). There’s no way to make this allocate to any other account or customer account.

Am I missing something?

I have since made the Nut/Bolt set a Production Order but it would be great if I didn’t have to keep ‘producing’ sets.

Any help or insight please?

[Brucanna]

What you have summarised is correct. So your options are:

a) production order and create new custom accounts - Sales nut/bolt & Expense nut/bolt, or

b) don’t use Inventory kit and always sell items individually, but if the nut/bolt combined is sold at a different price then use Inventory kit if you don’t want to production order.

[Tut]

Conceptually, it would make sense to allow inventory kits to be allocated to custom income accounts, just like inventory or non-inventory items. I don’t know, though, if that presents any problems in programming or just reflects the fact that one capability was incorporated into the program before others were added. It might play havoc with inventory value movement, profitability, etc., because of the difficulty of allocating kit sales prices back to kit components. I just don’t know.

[LQDPixels]

Ok.

So why do Production Order items allow it to be allocated back to a custom account? Seriously, I don’t know the difference.

Brucanna, Option ‘A’ is what we are currently using and ‘producing’ stock on an ad-hoc basis so inventory values line up. I’m still a little uncertain as the difference between Inventory Kits and Production Orders.Seems like they kind of unnecessarily overlap functionality.

Thanks for the help.

[Tut]

They don’t overlap. Production orders create finished items from materials in inventory. Finished item is incremented. Input items are decremented.

Inventory kits don’t create anything. They are only shortcuts for selling a group of items together that are already in inventory and might also be sold independently.