Once the following things have taken place, the kit order can be invoiced.
• The top level kit item has been allocated to the order
• The schedule date for the order line has been reached (so it falls into your pick list window)
• Any holds for the order have been released
• Any other items required to be shipped with the kit item have been allocated to the order.
• A pick list has been generated and the component parts have been pulled from inventory
• The serial numbers for the kit components (if any) are linked to the order using the RFPICK program
The Kit order is loaded into the Invoicing/Order Completion program by entering the order and ticket number from the pick list. This action causes the line items to be shipped to be displayed (the component items are not shown as you are invoicing the kit).
Once the line item for the kit is displayed, you may view the bin or serial data being used for the components but you may not edit them.
If you need to correct the serial numbers or quantity to be shipped for the kit item, you should do this by resetting the pick list, editing the order (to the quantity that can actually be shipped), printing a new pick list and re-entering the appropriate component serial numbers into the RFPICK program (if necessary).
Note: Normally there should not be an on hand quantity for a kitted item. If, there are on hand quantities for a kit item, the reserved and allocated quantities for the kit components can be incorrectly updated by the standard reconciliation and allocation programs. The Invoicing program will also not use any on hand quantities for the kit item. It will build the kit from components regardless of the on hand quantity for the kit.
As each kit item is completed or invoiced, the system will consume the component items based on the quantity of top level items being invoiced and the consumption rate defined in the Bill of Materials for the top level item kit item.
As the component items are consumed the system does the following:
• The system creates entries in the Inventory Transaction file to build the top level item and consume the component items. These transactions have the source set to “IK” to represent an “Invoice Kitting” transaction. The IK transaction will use the cost of the component items to determine the cost for the kit part and it averages the new kit part back into inventory in case there are on hand quantities of the item already in stock (there should not be, but this step ensures that the average cost of the inventory items is updated correctly).
• The system then creates another entry in the Inventory Transaction file to record the sale of the top level item. This record contains the cost of the top level item and the quantity shipped to the customer. This Inventory Transaction will have a source of “OI” for “Order Invoice”.
• The reserved, total reserved and allocated quantities of the top level item and the component items are reduced by the number of units invoiced/consumed.
• The sales statistics for the top level item are updated. This includes the sales data in the inventory master record and the Monthly/Weekly sales detail files.
• The consumption history in the inventory master record for the component items is updated to allow tracking of usage for purchasing/replenishment purposes.
• The commission cost for the kit item is updated (based on the commission cost in the component items. This is optional , a system parameter controls whether or not the commission cost in the top item is updated. This allows you to maintain your commission cost in the kit item based on the commission cost of the component items, or you can set the commission cost in the top level item and not update it during invoicing).