Groups, assemblies, and kits/packages are various categories of items that bundle together multiple individual items for sale. In the realm of inventory management, understanding the nuances of different item types is essential for efficient operations and streamlined workflows.
Item Types: Groups, Assemblies, and Kit/Packages
Among these are item groups, assemblies, and kit/packages, each serving unique purposes and presenting distinct features. Item groups consolidate multiple items into a single unit for simplified sales transactions and inventory management. Assemblies represent crafted inventory items composed of various components, offering flexibility in production processes. Kit/packages, on the other hand, provide bundled sets of items sold as cohesive units, enabling businesses to offer convenient solutions to customers. The following details aim to differentiate each item type, providing clarity on their distinctions and respective purposes.
Item Groups
An item group comprises multiple components from your inventory and is sold as a single unit. These groups encompass inventory items, assemblies, kits, and service items. When a retailer sells a quantity of the group, the stock level of each individual member item decreases accordingly. Sales of the group can be tracked alongside the stock levels of its constituent items. The price of a group item is determined by the prices of its individual members, with each member having a designated price in its item record. The total price of the group is calculated by summing the prices of its members. Selling item groups can streamline inventory workflows by consolidating sales transactions, saving time for retailers. Groups can be created for items frequently sold together, enabling them to be entered as a single unit during sales transactions.
Assembly Items
An assembly item is a single inventory item composed of multiple components, although it is treated as a unified entity. Assemblies are created through the combination of raw materials stocked by the manufacturer. To establish an assembly item, an assembly item record is generated to specify its constituent parts. NetSuite maintains separate stock records for both the assembly item itself and each individual component. During physical assembly production runs, the manufacturer augments their inventory of assembled items. This is achieved by documenting each production run and adjusting stock levels through the entry of an assembly build. For every assembly build recorded:
- the assembly item stock level increases
- the member items' individual stock levels decrease
After an assembly item is built, it is processed like an individual inventory item for tracking inventory costs. The asset/costing value of each built assembly item can be the total value of the assembly's member items. It can also be another value that you assign on the item record. This value functions like the assembly item's purchase price for inventory costing calculations. You can also unbuild assemblies to increase your inventory of raw materials. If you use the Allow Purchase of Assembly Items preference, you can add an assembly item to a purchase order. This is useful if you sometimes purchase the item already assembled.
Kit/Package Items
A kit/package is a unit composed of items from your inventory. A kit is sold as one unit, but has several member components. Kit components can be inventory items, assemblies, kits, and service items. A distinguishing feature between kits and groups is that the price of a kit is independent of the prices of its components. Additionally, kits have the flexibility of being assigned multiple price levels. Whenever a kit is sold, inventory records are updated to reflect changes in stock levels for each individual component within the kit.
Key Differences Between Kits, Groups, and Assemblies
Please review the following key differences between Kits, Groups, and Assemblies. One difference between kits and groups is that the price of a kit is not dependent on its components' prices. It can also be assigned several price levels. Each time a kit is sold, inventory records are updated for the individual members of the kit.
Function |
Assembly |
Kit/Package |
Item Group |
|
Members can include: |
Inventory items |
Inventory items |
inventory items |
|
Pricing: |
Item price is independent of its members' prices |
Item price is independent of its members' prices |
Item price is dependent on its members' prices |
|
General Ledger Accounts: |
Able to identify a Cost of Goods Sold (COGS), income, and asset account separate from its components' accounts |
Able to identify a separate income account |
No account designation available |
|
Inventory Impact: |
Building an assembly: |
Fulfilling a kit: |
Fulfilling a group: |
Overall, while kits, groups, and assemblies share similarities in their bundling of items, they serve different purposes and have distinct characteristics, particularly in terms of pricing and inventory tracking. If you want to learn more about the item types of Groups, Assemblies, and Kit/Packages, please contact Concentrus today to discuss your needs.
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