The kitset type is set when the kitset is created. The following information explains the difference between the two kitset types and when to use each option.
Invoiced Kitsets are used when the kitset itself isn't physically created but is instead recognised at the point of sale. As such, it is known as Invoiced, as that is when it is effectively made up. It is a collection of products and services that could be sold as part of the kitset or individually.
Quantities are managed through components of the kitset, rather than the kitset itself. Products that are a component of an Invoiced Kitset are receipted in and stock levels managed against the product. When the kitset is sold, the quantities of the products decreases, not the kitset.
An Invoiced Kitset is never receipted in and does not store quantities. Because they are not a specific product for sale, Invoiced Kitsets do not appear on product and Stocktake reports.
When to use an Invoiced Kitset
Situations where an Invoiced Kitset are used include bundling products together as a package offering, or when a product is sold with services and costs included for a fixed price.
A dining suite of one table and six chairs. The table and chairs can be sold individually at their own prices, or as part of a kitset at a package price. When sold as an Invoiced Kitset, the table and chairs are ordered or selected from the showroom at the time of sale. The stock quantities of both the table and chairs decrease.
A business offers a standard installation service when a light fitting is sold. A fixed price for the product, labour and parts is provided and using the Invoiced Kitset allows one transaction to be recorded on the invoice. Because it is itemised within the kitset, the business is able to record the individual components that make up the sale price.
A Received Kitset is made up of a collection of components. Received Kitsets are created / assembled by the business. Once assembled there is an In Stock quantity of the kitset and components aren't available to be sold as individual items.
Received Kitsets must be received into stock using a Product Receipt.
- When a Received Kitset is receipted into stock, the quantity of the kitset increases, and the quantity of the components decreases.
- When a Received Kitset is sold, the quantity of the kitsets decreases and there are no changes to the quantity of components.
When to use a Received Kitset
Received Kitsets are for bundled goods that are considered a whole unit in itself. Because quantities are managed via the kitset and not the components, dismantling the kitset results in an imbalance between recorded and actual stock.
Using the same example of the dining suite of the table and six chairs, when sold as a Received Kitset, the suite is sold as one unit. The customer is not able to purchase the table with only four chairs. At the time of sale, the stock quantity of the dining suite reduces.
Gift hampers and baskets are another example of a Received Kitset. Comprised of many parts, the basket is the product for sale. All the items within are part of a greater whole and individual items cannot be removed to sell separately.