Interesting Finding about KITS

 

The standard process of setting up Kits items in Dynamics GP is straight forward and simple. It is primarily illustrated as follows:

• Create a new item, and set the item type to Kit (Cards > Inventory > Item)
• Setup the Kit components on the (Cards > Inventory > Kits)

After the two steps above have been completed, recording a sales for an inventory item with Kit Type will affect both, sales and inventory modules. The following journal entries are primarily recorded:

Account                   Debit                    Credit

AR                              -              

Sales                                                            -

Inventory                                                  -

COGS                             -              

 

Test Scenario

Supposing that the Kit item has been configured as illustrated previously, although, the second step has been missing (no components setup has been configured). How would the Sales Order Processing handle the sales of a Kit Item ?

Sales Order processing record the Sales of a kit item regardless of the fact that no components items have been configured. Sales and Revenue are recorded with no associated inventorial effect neither on the Inventory module nor the General Level.

Account                   Debit                    Credit

AR                              -              

Sales                                                            -

 

Setting Up a Kit Item

 

Kits Components Item Setup

 

Sales Transaction and associated Distribution

The bottom line, a Kit item sold on the Sales Order Processing module with no components setup is sold accordingly and handled as a service item.

Best Regards,
Mahmoud M. AlSaadi