Comparing NetSuite Kits, Assemblies and Item Groups for Distributors and Manufacturers

By - March 19, 2013

NetSuite provides three options for wholesale distribution and manufacturing to track item collections in support of a variety of  requirements. So what are they and what is the best inventory item grouping type for my business? Let’s compare.

Each item collection type allows for an unlimited number of component items to be assigned.  Component items can be inventory, non-inventory, service, assembly, or kit items.  Assembly items also allow for other charge item types.

  1. Kit or package

    Kit or package items are useful for grouping component items together, that are sold together.  This allows the single kit item to be selected on a sales order, while processing the assigned components through the sales process.  Quantities on hand are not tracked for kit orpackage items.  The quantities are stored with the component items and evaluated during sales order entry for the kit or package.  Kit or package items cannot be partially fulfilled or purchased.  Most sales reporting is associated to the kit or package item, not the component item.  The sales general ledger account defaults from the kit or package.  The cost general ledger account defaults from the components.  Component items can be displayed on transactions and customer forms.
  2. Assembly

    Assembly items are great for tracking items that require a build or work order process.  The process of completing the build of an assembly item (finished good), reduces the quantities on hand of the component items and increases the quantity on hand of the assembly item.  The general ledger and sales tracking is associated with the finished good.  A feature can be enabled to allow purchasing of an assembly item.
  3. Item Group

    Item groups are very similar to kit or package items.  However, item groups allow for changes to component items on the fly.  In other words, the configuration of the item group is customizable during the sales order entry process.  The general ledger account for sales and cost pulls from the component, as well as the sales price.  Item groups also allow for partial shipments.  Sales reporting tracks back to the component item level.

In review, matching the proper item type for Inventory Management in NetSuite is important for accurate inventory tracking and an efficient sales process flow.  RSM offer a complimentary 14 day NetSuite trial if you are interested in testing these functions with your data.

By:  Matt Bailey – Colorado NetSuite Solution Provider

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