How Microsoft Dynamics GP Inventory Kits Work (video attached)

Originally Posted 8/24/2012

I’d like to walk you through how Kits are setup in Microsoft Dynamics GP Inventory Control and how they work in Sales Order Processing.

What is a Kit?

A Kit represents several items sold as a single item. The example I use in this video is a hamburger order at a fast food restaurant. You receipt just reads “hamburger,” but you are removing many items from their inventory (patty, buns, condiments, etc.). If you custom order your burger, such as adding additional items or removing items, the list of items to be fulfilled (or removed) from inventory will change accordingly.

Will a Kit only include physical inventory items?

No, you can add any item from your inventory control system which includes services, miscellaneous and flat fee items as well as sales inventory. You can even list the same item more than once, provided that the unit of measure is different for each entry.

How is cost determined?

Cost is established when the Kit is setup in inventory. It can be based on the individual costs of the components, or you can establish a fixed cost for the Kit item itself.

When setting up a Kit, you will also include (in addition to the Component Item Number) the unit of measure used for the Kit and the quantity of each component.

What if you have a shortage in some of your Kit components?

Included in the Sales Order Processing Transaction Entry (Sales Item Detail Entry) window is a Kit button that will allow you to open the Sales Kit Options window. This window includes the components that are being used. This is the same window you would use to add inventory items, replace inventory items or remove inventory items for the sale of this particular Kit to this particular customer for this particular invoice. Should any Kit component have a shortage, this window will open automatically for you.

When the window opens, an alert icon will appear next to the component with the shortage, so you can handle it in whatever method you deem appropriate for this customer order.

Other items to note:

• A Kit can be returned in Sales Order Processing.
• A Kit cannot be backordered in Sales Order Processing.
• To change a Kit component (this includes changing the quantity), you will need to delete the Kit from the line in SOP and re-enter it. This ensures that any changes made for this order are handled properly.

The use of Kits can be a very valuable to your company!

Author: Belinda Allen

Belinda Allen (Microsoft MVP) is both a Microsoft Certified Professional for Dynamics GP (MCP) and a Microsoft Certified Trainer (MCT). She is also the co-founder of Smith & Allen Consulting, Inc. (www.saci.com), a business management software consulting firm for over 24 years. Belinda began implementing ERP systems so long ago that Windows was not an operating system, but an application. Larger businesses used old Main Frames with monitors that were Green and Black and smaller business did accounting by hand. Having seen the evolution that has taken place over the years from pieces of paper to analytics, Belinda still gets excited every time she helps a business improve. Belinda is also well known for her Blog www.BelindaTheGPcsi.com. Her blog is about sharing really useful information about the product quickly and succinctly. She has earned the nickname GP CSI because she excels at reviewing GP problems and figuring what went wrong and why. With followers all over the Globe she is able to share knowledge and achieve her mission: “To Improve the Lives and Business Success of my Followers.” In her time off, Belinda enjoys sailing, woodturning, crochet/knitting, sewing/quilting, reading and playing the ukulele (Belinda often participates in Ukulele Jams in NYC.) View all posts by Belinda Allen