kitting white paper
TRANSCRIPT
Microsoft Dynamics™ NAV 5.0
Kitting
Technical Whitepaper
This whitepaper is intended for professionals who are involved in the
implementation and support of the Kitting functionality at a customer
site, as well as for those who need to advise customers, or make
modifications within the area. The paper offers an overview of the
principles used within the Kitting area of Microsoft Dynamics NAV 5.0.
Date: March, 2007
www.microsoft.com/dynamics/nav
EFFECTIVE
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Table of Contents
Introduction ....................................................................................................................... 3
Architectural Considerations ....................................................................................................................................................... 3
Creation and Maintenance of Kits ................................................................................... 5
Defining a Kit BOM ......................................................................................................................................................................... 5
Building to Stock and Purchase Orders .................................................................................................................................. 5
Instant Production ...................................................................................................................................................................... 6
Disassembly ................................................................................................................................................................................... 6
Order Processing of Kits ................................................................................................... 8
Order Processing.............................................................................................................................................................................. 8
Gross Requirement Calculations ............................................................................................................................................. 11
Stockout Warning ......................................................................................................................................................................... 11
Order Promising ........................................................................................................................................................................11
Reservations and Item Tracking ..........................................................................................................................................11
Combined Shipments ..............................................................................................................................................................11
Costing .............................................................................................................................................................................................. 12
G/L Posting Considerations ...................................................................................................................................................... 12
Warehouse Management of Kits ................................................................................... 13
Planning ............................................................................................................................................................................................ 13
Reports .............................................................................................................................................................................................. 14
Kit Component - Statistics .....................................................................................................................................................14
Kit – Availability ..........................................................................................................................................................................15
Miscellaneous notes .................................................................................................................................................................... 16
Appendix A – Costing Scenario for Kitting ................................................................... 18
Appendix B – Ledger Entries for the Kitting Costing Scenario .................................. 20
Appendix C – Adjustments for Disassembly ................................................................. 24
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Introduction
Kitting for Dynamics NAV 5.0 is a process by which individual items are grouped or packaged together
to represent a single item. A kit is represented by a Bill of Materials structure, built or disassembled
with a BOM Journal, and sold on order.
Kits are handled in two different ways:
Kits are stocked, that is, a pre-assembled kit is kept in stock as a finished item and can be
used in the immediately fulfillment of sales orders.
Kits are not stocked, that is, a kit is not assembled prior to shipment, but is put together at the
time of sales order picking and shipping.
The Kitting functionality also includes disassembly, where the individual kit components can be
returned to inventory. An item can use one kit BOM for assembly and another one for disassembly.
Architectural Considerations
The Kitting functionality has been re-designed to rely on the existing functionality surrounding a
Production BOM while having as little impact on the Manufacturing module as possible. The Assembly
List tables and forms were not removed from the latest version but they are no longer used.
The reuse of Production BOM functionality to perform Kitting tasks provides significant benefits,
including:
The same costing routines are now used for both Production and Kitting.
Forecasting and MRP calculations consider kits and their components.
The Kit BOMs are stored in the Production BOMs tables with a special Kit flag. The kits are
assembled from a sales order rather than from a production order. However, kit BOMs cannot
be used in Production nor can production BOMs be used for Kitting.
The granules are set up to allow enough access to Production and Manufacturing functionality so that
Kitting works without requiring a customer to buy the granules. However, the Kitting functionality is
still not a substitute for the more fully functional Manufacturing granule.
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Setting Up Kit Parameters
Kitting tabs have been added to several forms, providing flexibility when setting up Kitting
parameters. For example, you can print or suppress component lines when printing sales
orders/quotes, packing slips/shipments, invoices and pick tickets. Many of these setup parameters are
found on several forms, allowing you both to create a global default, and to tune the setting by
customer or item.
Hierarchy for or printing on Sales Orders, Packing Slips, and Invoices:
Use the setting on the sell-to customer for the order. If blank, then
Use the setting on the Sales & Receivables Setup.
Hierarchy for printing on Pick Tickets:
Use the setting on the Inventory card for the line item of the order. If blank, then
Use the setting on the sell-to customer of the order. If blank, then
Use the setting on the Inventory Setup.
The item card now allows two different kit BOMs to be specified, one for building a kit and one for
disassembly of the kit. By default, both kits are set to the same BOM after the first kit BOM is entered.
A Kit BOM cannot be assigned to a Stockkeeping Unit or to an Item Variant.
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Creation and Maintenance of Kits
Defining a Kit BOM
The setup of a Kit BOM is very similar to the setup of a Production BOM. A Kit BOM number is used
and items and resources are added as the first level of the BOM. Kit BOMs can include items,
resources (expended for each items), and setup resources (expended once during a build cycle).
However, Kit BOMs are limited to a single level BOM.
Calculation of standard cost on a Kit item works in the same way as for a true manufactured item.
Additionally, multiple units of measures are supported for both items and resources.
Building to Stock and Purchase Orders
A kit can be assembled as a finished good using the BOM journal. When the user selects a kit item in
the BOM journal, the components will automatically be added to the BOM Journal Lines. It is not
possible to insert or delete components in a BOM journal. However, the user can identify attributes of
the components that have been used to build the kit, such as serial/lot numbers or Bin Code, and the
components specified for the costing method.
The dimension values for kit components will always have the same dimensions as the kit item; they
are not editable in this version.
Item availability is not currently available from the BOM journal. However, viewing is possible by doing
a lookup on the item in question and then checking item availability from the item card.
A print option, which is similar to the print option on the Item Journal, has been added to the BOM
journal form. The report can be used as a simple pick ticket or put-away list.
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Purchase orders can be used to bring stock into inventory. Kit items are treated like any other item on
the purchase order. Inter-company purchase orders, generated from sales orders, for kits being
purchased into stock, are supported. However, kit components on purchase orders are not supported.
Instant Production
One of the goals for the Kitting solution was to produce a kit in an instant production without being
limited by costing methods. With the previous Assembly List solution, the cost of the BOM was
determined at the time of posting of the BOM. Any changes to the components cost afterwards did
not update the BOM cost.
By using existing Manufacturing functionality, this issue will be resolved. By simulating posting of a
production order, the system will actually post to the WIP accounts. Since it will be instant production,
debit will equal credit, but the user will still have to set these up.
If there are resource costs involved when assembling a kit, the cost will, after inventory adjustment
and posting to G/L, be left as a balance in the account that has been set up for the kit‟s WIP account,
in Inventory Posting Setup. This balance should offset a labor account, and be a part of the Cost of
Goods section in the Chart of Accounts.
Resource components are processed outside the manufacturing functionality. The cost from a
resource will be posted in a similar way as the indirect cost percentage on the kit item, but it will end
up as a value entry equal to the direct cost for the finished kit. In this manner, everything in the adjust
cost routine works correctly.
Disassembly
A disassembly choice was added to the BOM Journal to support the disassembly of kits.
The disassembly is processed as a negative adjustment for the kit, and positive adjustments for the
item components. A positive number will always be entered into the BOM journal and the
assembly/disassembly selection will determine whether the posting will result in an increase or
decrease of the kit item.
If there is any difference in the cost between the kit being taken out of inventory, and the total cost of
components going back into inventory, it will be posted as an expense. The expense G/L account is
identified as a new field in General Posting Setup. It is the combination of the kit‟s General Product
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Posting Group and the blank General Business Posting Group that determines which record to use in
the posting setup matrix. The offsetting account is the kit‟s inventory adjustment account.
If the kit BOM for the kit item‟s “Kit Disassembly BOM No.” includes resources, then these resources
will also be posted as expenses. In this case, posting will still be to the “Cost of Disassembly Account”
for the kit, but the offsetting account will be the “Direct Cost Applied Account” for the combination of
the General Product Posting Group and the blank General Business Posting Group.
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Order Processing of Kits
The demand for a kit item on a sales line can be fulfilled in one of three ways:
The kit will be assembled prior to shipping. This will happen when the kit is built as an instant
production.
The item is stocked in inventory. This can be either because the kit has been assembled as a
finished item ahead of time by using the BOM journal, or because it has been received from a
purchase order.
The sales line can be linked to a purchase order as a drop shipment or special order. In this
case, a kit item is considered a normal item.
If a demand for a kit on a specific order can be met by a combination of the above three methods,
then the sales line must be split into multiple lines. It is not possible to use multiple methods for a
single order line. In other words, you cannot order five kits for an item that has three in stock, have the
three come from stock, and then build two. You must use separate sales lines in this scenario.
Order Processing
The sales order form recognizes kit items when it finds an entry in the Kit BOM No. field. Another field
called “Build Kit” controls whether items are shipped from stock or if they are built at time of shipping.
If the field is checked, components are allowed in the Kit Sales Line form. The underlying kit
components on a sales order will only show up on the Kits Sales Lines form, if the Automatic Build Kit
flag is set, as defined in the first scenario listed above. The components will never be set up for a
shipment from stock, a drop shipment, or special order.
A kit item can still be shipped from inventory as a regular item by simply un-checking the “Build Kit”
flag. If any components were already present as kit sales lines, the user will be prompted to delete
these records first. Re-checking the Kit Build flag will start building the kit again. A function called
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Refresh Kit BOM can also be used to delete any existing kit sales lines and replace them with the
original kit components.
Components can be reviewed in a Kit Sales Lines form.
The user can insert and delete lines, as well as editing the following fields:
Quantity per (number of the component is needed to build one kit)
Variants
Multiple units of measures for items and resources
Bin code
Reservations
Item tracking
The following fields and features are not supported for Kits Sales Lines:
Extended texts
Discounts (discounts are applied to the kit item, not to the individual components)
Dimensions (dimension values for kit components will always have the same dimensions as
the kit item; they are not editable in this version)
Substitutions
Cross references (only supported at item level)
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Changes to location code. The location code is inherited from the kit item. If the Build Kit flag
is turned off, the location can be changed just like any non-kit item. The Build Kit flag can
then be turned back on, recreating the kit lines with the new location.
Two new functions will be available in the Kit Sales Lines form.
The Roll-Up Kit Pricing function will recalculate the sales line price as the sum of the component prices
if the process is allowed by the Roll-Up setting on the item card. This setting can be set to
automatically roll-up prices, allow manual roll-up, or not allow roll-ups.
The Roll-Up Kit Costs performs a similar function by rolling up the costs. However, the cost on the
order line is only an estimate, as the actual costs will be applied when posting occurs.
The Kitting features are available within the sales module for quotes, orders, blanket orders and
invoices. Return orders and credit memos are not supported. Returned kits can be disassembled using
the BOM Journal.
A new form with more detailed information on item availability for kit components was added to the
Sales Order form. However, the Copy Document function uses the standard item availability form
when copying an order with kit items. Combining forms will be considered for future versions.
There will be no support for Kitting within the Service Management, Commerce Portal/Gateway, or
BizTalk Document Transfer areas. When a user tries to send an order via BizTalk and the Build Kit flag
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is set, an error will be displayed. If a class is assigned in the Commerce Portal, to a kit item with a Build
Kit flag, an error will be displayed.
The Kit Sales Line table will be copied into a similar table for archiving.
A menu option has been added to the Sales Order form. Also, a Print menu button is visible, similar to
the print option for Work Order. The report can be used as a simple pick ticket and can be printed
with or without kit components.
Gross Requirement Calculations
A new “demand type” is introduced by adding a Kit Sales Line to hold component usage for a Kit Item
on a sales line. This new demand is considered in the Gross Requirement Calculations throughout the
system so that gross requirements are a sum of quantities from all existing sources, plus the new Kit
Sales Line table.
Stockout Warning
A new form has been added for the stockout warning of the Kit Item to make it easier to determine
availability of the Kit Item, based on the availability of the kit components. The principles of
requirement calculations are the same as in the standard stock out warning form.
Availability is performed for a kit, as well as the components based on the Build Kit flag. If the Build Kit
flag is set, all the components will be checked for availability and displayed. If the Build Kit flag is not
set, the kit item will be checked for availability in the same way as a regular item, but the form that will
be displayed will still include information for all the components.
Order Promising
The user has access to the Order Promising form at the component level. The current line (component
item) will appear in the form, as well as all components for the kit, allowing viewing availability options
for the kit as a whole. If the user selects Order Promising for an order line, the system will check the
Build Kit flag. If Build Kit is set, all the component items will be displayed in the Order Promising form.
If the flag is not set, Order Promising will work as seen previously, as the item is treated as a normal
stock item.
When the user accepts the records in Order Promising, the latest of all the Earliest Shipment Dates will
be used to update Shipment Date on the kit sales line itself. The shipment dates will also be updated
on the component lines.
The user can enter a date in “Planned Delivery Date” or “Earliest Shipment Date” which will trigger
recalculation of the other date. Since all five ship/delivery dates do not exist on the kit sales line table,
the kit sales line itself will be simulated for recalculation of the dates. However, it will be the
component item with its extended quantity that will be used for available/capable calculations.
Reservations and Item Tracking
Reservations and Item Tracking are supported for the kit sales lines table. In the case where a new
serial number is entered for a new kit, the warning about creating a non-existent serial number will be
displayed in this version.
The “Check Shipments with Invoices” flag must be checked for item tracking to operate with Kitting.
Combined Shipments
The Kitting functionality does not support combined shipments for items that are flagged as “Build
Kit.” Any items flagged as “Build Kit” will be filtered out of the process when orders are combined. Kit
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items that are being delivered from stock or purchased directly into stock can be combined just like
any other non-kit item.
Costing
When a disassembly BOM journal is processed, entries are added to the average cost calculation table
at zero cost. The Adjust Cost routine updates the Net Invoiced Quantity and the costs in this table and
ensures that all costing is correctly calculated for disassemblies. It is also updating the invoiced
quantity of the item ledger entries created during instant production.
G/L Posting Considerations
During the posting of an assembly using the BOM Journal, the net G/L transaction puts the costs in
finished goods (debit) with an offset to raw materials (credit).
During disassembly, the net G/L transaction debits Inv. Adj. Retail and credits Finished Goods to
remove the finished good from inventory. Then raw materials are debited and a credit is applied to
Inv. Adj. Raw Materials.
See Appendix A and Appendix B for a detailed costing scenario with resulting ledger entries.
When the Adjust Cost routine is executed, the disassembly transactions will not be adjusted in sync
with the originating assembly transaction. The disassembly transaction is not linked to the original
assembly transaction. It is possible that the raw materials account and the Inv. Adj. Raw Materials
account are understated by the amount of the adjustment, and would not balance to each other. This
difference would be due to the disassembly cost adjustments. A manual adjustment to raw materials
must be made for the difference between the two adjustment accounts. See Appendix C for an
example of how this adjustment is calculated for the scenario in Appendix A and B.
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Warehouse Management of Kits
There are no changes in the processes for handling kits that are already in stock in a warehouse
environment. However, the process for kits built from sales orders, represents pulling components
rather than the pulling the finished kit item itself. The “Build Kit” field on the sales line controls this
process change.
Kit items are built when shipments are posted. The shipments cannot be posted until there are
enough components in stock to build the kits, as the kits are built internally as an instant production
order. For these items, invoices can only be created when shipments are completed.
For locations that don‟t require shipping or picking, the reports used for pick/pack will be changed to
print components along with the kit based on the print setups selected. In this case, it is up to a user
to manually change the “Qty. to Ship” field on the sales line, before posting the order as a shipment.
For locations that have been set up to require picking, the pick routine has been changed so that the
components can be picked before the kit can be shipped. Only the components will be inserted as
pick lines instead of the kit item. When registering the pick, the system will check that components
have been picked to build a whole number of kits. Incomplete kits are not supported. Partially
shipping of the kit is allowed, for instance shipping four out of five kits, but only if all components for
four kits have been picked.
When warehouse shipments are processed with a kit item and the location requires shipping, the
location also requires picking. This process change was made so that the relationship between a
warehouse shipment line and the order line is not changed. When posting a warehouse shipment,
“Qty. to Ship” is updated on the associated order line directly with the value from the warehouse
shipment line.
Pick tickets are generated for components so that the picked components and their quantities can be
reported for entry into the system. If the Item Tracking Code on the components item card is set up
for SN or Lot Warehouse Tracking, the Serial and/or Lot No. on the pick lines can be entered.
Otherwise this information must be keyed in from the order entry form.
If the location is set up to require picks, but not require shipments, the components will go into the
inventory pick. Instead of updating the warehouse shipment with “Qty. to Ship,” the “Qty. to Ship”
field directly on the order is updated when posting the inventory pick. Full and complete kits must be
picked here as well.
The Pick Qty. and Pick Qty. (base) fields in the Kit Sales Line table are only used for the pick through
warehouse shipment functionality, not for inventory pick directly from the sales order. The sales order
already has quantity defined in the Qty. to Ship field.
Planning
Kitting will use planning features available for production BOMs. However, when the planning
functions are looking for demand in sales lines, it will act differently based on whether a kit item is to
be fulfilled from stock, or is being built as an instant production.
When the “Build Kit” flag is checked for a sales line, the kit item will be replaced in the planning with
demand from the associated kit sales lines. If the Build Kit flag is not checked, the value will still be
included in the requisition line. However, since the replenishment system uses a production order for
kit items, and a production order for a kit BOM is not allowed, the kit item should either be assembled
in the BOM journal or purchased.
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Replenishment from a journal is not supported, and the user will get an error if a kit item is brought
into a production order. The flag called “Accept Action Message” will default to No. for kit items and it
can only be set if the replenishment system is changed to Purchase.
Reports
Several reports that print BOM information from the Manufacturing information will also be made
available for printing information about Kit BOMs. Existing item reports will work for kits as well. Three
new reports have been introduced to provide additional analysis on kit sales and availability.
Kit Component - Statistics
This report is an analysis of the kit components and the corresponding kit items. It is a “where sold”
list for components that reports on the number of components sold in kits. It also lists the quantity of
the component that were sold separately and not as a part of a kit.
The report can be run as a summary or in detail. Summary mode shows the component with quantity
sold in kits and also separately. Detail shows the kits in which the components were sold.
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Kit – Availability
This report is similar to the existing Inventory Availability report, but only displays kit items. The kit
item and its components are displayed and the projected available balance for each component is
used to calculate the number of potential kits. Each kit item and its components are considered
separately as if they were the only kits being built.
Kit/Component – Sales
This report is an analysis of the kit components and their margin contribution. It is a “where sold” list
that reports on the margin contribution for the each kit the component was included in. Component
sales that were not part of a kit are also included. An example of these sales could be components
being sold as a repair part.
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The report is based on several assumptions, described below, and should be considered an analysis
report, not a financial report to balance.
If the kit was built from a sales order, then the actual costs of the kit components are included in the
calculation based on the values in the item ledger. For items taken from stock or purchased to stock,
the cost represented by the costing method on the inventory card, is used. If any of these costs are
equal to zero, then the standard cost is used. If that value is zero, then the item will not be displayed
in the report.
The total margin on the kit item is calculated based on the revenue and total cost applied to the kit at
posting (revenue minus total cost). Margin from the kit sale is then allocated to each component
based on the percentage of the actual cost that the kit component represents for each sales line. For
example, if the individual component cost is 10% of the total kit cost for a sales line, then 10% of the
margin is allocated to the component. If the item was shipped from stock or purchased instead of
being built from a sales order, then margins are allocated based on current component costs.
Resource costs are considered during the calculation of margins and costs. The total cost of the kit
includes the cost of the resources expended to ship it. The margin is calculated as sales minus total
cost, so the resources are costs removed from the margin.
Resources are also used in the allocation of component margins. For example, if 20% of the costs of a
kit are resources, then 20% of the margin is removed from the allocated margin. Otherwise, the
additional 20% margin would be allocated to the kit components, inflating the margin for the kit
component.
The unit cost and margin can be different for each sale. The unit cost on the report is derived from the
total costs allocated to all the components used in a kit item, divided by the total components sold.
The margin percentage on the report is derived from the total margins calculated for all sales lines,
where a kit item was sold, divided by the total sales.
Miscellaneous notes
The Kitting functionality replaces the Assembly List functionality. Many reports had a request field
called “Bill of Materials” which is no longer available because a kit item is identified as an item with a
kit BOM attached instead of by a checkbox. The request field has been removed from the reports and
the user can set a similar filter for “Kit BOM No.<>,„‟ to obtain the same results.
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The existing assembly lists will be converted into kit BOMs using the new table structures.
The “Explode” function used in the Assembly List functionality was modified to read the new tables
used for the Kitting functionality. This function works in the same manner it did prior to Kitting.
However, if you explode a kit item, you can no longer take advantage of the Kitting functionality, since
the kit item no longer exists on the order.
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Appendix A – Costing Scenario for Kitting
Setup
Entity Number Description Other Info
Inventory Setup Check Automatic
Cost Posting
Check Expected
Cost Posting
Set Automatic
Cost Adjustment
to Always
Item Kit123 Finished Good Set costing method to Average Cost
Kit1 Component 1 Costing Method = Average
Kit2 Component 2 Costing Method = Average
Kit3 Component 3 Costing Method = Average
Resource Setup Setup Charge Set Unit Cost to 30
Labor Labor Unit Cost = 10
Kit BOM K123-A Assemble Finished Good
Lines 1 Kit1 Quantity = 2
2 Kit2 Quantity = 1
3 Kit3 Quantity = 1
4 Setup Quantity = 2
5 Labor Quantity = 2
Kit BOM K123-D Disassemble Finished Good
Lines 1 Kit1 Quantity = 2
2 Kit2 Quantity = 1
3 Kit3 Quantity = 1
4 Setup Quantity = 1
5 Labor Quantity = 1
Item Kit123 Finished Good Set Kit BOM No. to K123-A
Set Kit Disassembly BOM No. to K123-D
Initial Purchase
Create a Purchase Order and post it through; Posting Date = 06/01/07:
Item Quantity Direct Unit Cost
Kit123 2 217
Kit1 10 25
Kit2 10 73
Kit3 10 44
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Purchase of New Components
Item Quantity Direct Unit Cost
Kit1 40 25
Kit2 20 73
Kit3 20 44
Assemble the
Kits
Post a BOM Journal line, assembling ten of Kit123, Posting Date = 06/16/07
Sell some Kits
Post a Sales Invoice, selling four of Kit123, Posting Date of 06/17/07.
Disassemble some Kits
Post a BOM Journal line, disassembling four of Kit123, Posting Date of 06/30/07
Adjust and Invoice the Component Purchase
Item Quantity Direct Unit Cost
Kit1 40 30
Kit2 20 75
Kit3 20 45
Purchase of New Components
Create a Purchase Order, Posting Date = 06/15/07, this time posting through:
Item Quantity Direct Unit Cost
Kit1 40 30
Kit2 20 75
Kit3 20 45
Assemble the
Kits
Post a BOM Journal line, assembling 10 of Kit123, Posting Date = 06/16/07
Sell some Kits
Post a Sales Invoice, selling four of Kit123, Posting Date of 06/17/07.
Disassemble some Kits
Post a BOM Journal line, disassembling four of Kit123, Posting Date of 06/30/07
Note: The Adjust Cost routine must be run when cost adjustments are made.
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Appendix B – Ledger Entries for the Kitting Costing Scenario
Purchase - Kit Item + Components - Inventory posting to G/L
Posting
Date
Document
No.
G/L Account
No.
Description Amount Entry No.
6/1/2007 108028 2115 Direct Cost 10000 on
01/06/07
434.00 2764 Inventory A/c for Finished Kit
6/1/2007 108028 7791 Direct Cost 10000 on
01/06/07
-434.00 2765 Direct Cost Applied, Cap.
6/1/2007 108028 2125 Direct Cost 10000 on
01/06/07
250.00 2766 Inv A/c for Kit Comp
6/1/2007 108028 7291 Direct Cost 10000 on
01/06/07
-250.00 2767 Direct Cost Applied, Raw mat.
6/1/2007 108028 2125 Direct Cost 10000 on
01/06/07
730.00 2768 Inv A/c for Kit Comp
6/1/2007 108028 7291 Direct Cost 10000 on
01/06/07
-730.00 2769 Direct Cost Applied, Raw mat.
6/1/2007 108028 2125 Direct Cost 10000 on
01/06/07
440.00 2770 Inv A/c for Kit Comp
6/1/2007 108028 7291 Direct Cost 10000 on
01/06/07
-440.00 2771 Direct Cost Applied, Raw mat.
Purchase - Kit Item + Components - G/L Transactions
Posting
Date
Document
No.
G/L Account
No.
Description Amount Entry No.
6/1/2007 108028 7210 Order 106024 1420.00 2772 Purch., Raw Materials - Dom.
6/1/2007 108028 7110 Order 106024 434.00 2773 Purch., Retail - Dom.
6/1/2007 108028 5410 Order 106024 -1854.00 2774 Vendors, Domestic
Purchase - Receipt of components - Inventory Posting to G/L
Posting
Date
Document
No.
G/L Account
No.
Description Amount Entry No.
6/15/2007 107030 2126 Direct Cost 10000 on
15/06/07
1000.00 2775 Inv A/c for Kit Comp Interim
6/15/2007 107030 5530 Direct Cost 10000 on
15/06/07
-1000.00 2776 Inv. Adjmt. (Interim), Raw Mat
6/15/2007 107030 2126 Direct Cost 10000 on
15/06/07
1460.00 2777 Inv A/c for Kit Comp Interim
6/15/2007 107030 5530 Direct Cost 10000 on
15/06/07
-1460.00 2778 Inv. Adjmt. (Interim), Raw Mat
6/15/2007 107030 2126 Direct Cost 10000 on
15/06/07
880.00 2779 Inv A/c for Kit Comp Interim
6/15/2007 107030 5530 Direct Cost 10000 on
15/06/07
-880.00 2780 Inv. Adjmt. (Interim), Raw Mat
21
KITTING FOR MICROSOFT DYNAMICS NAV 5.0 – WHITEPAPER
Assembly - Inventory posting to G/L
Posting
Date
Document
No.
G/L Account
No.
Description Amount Entry No.
6/16/2007 B00001 2116 Direct Cost KIT123 on
16/06/07
2170.00 2781 Inventory A/c for Finished Kit
6/16/2007 B00001 2140 Direct Cost KIT123 on
16/06/07
-2170.00 2782 WIP Account, Finished goods
6/16/2007 B00001 2125 Direct Cost KIT123 on
16/06/07
-500.00 2783 Inv A/c for Kit Comp
6/16/2007 B00001 2140 Direct Cost KIT123 on
16/06/07
500.00 2784 WIP Account, Finished goods
6/16/2007 B00001 2125 Direct Cost KIT123 on
16/06/07
-730.00 2785 Inv A/c for Kit Comp
6/16/2007 B00001 2140 Direct Cost KIT123 on
16/06/07
730.00 2786 WIP Account, Finished goods
6/16/2007 B00001 2125 Direct Cost KIT123 on
16/06/07
-440.00 2787 Inv A/c for Kit Comp
6/16/2007 B00001 2140 Direct Cost KIT123 on
16/06/07
440.00 2788 WIP Account, Finished goods
6/16/2007 B00001 2115 Direct Cost KIT123 on
16/06/07
200.00 2789 Inventory A/c for Finished Kit
6/16/2007 B00001 2140 Direct Cost KIT123 on
16/06/07
-200.00 2790 WIP Account, Finished goods
6/16/2007 B00001 2115 Direct Cost KIT123 on
16/06/07
60.00 2791 Inventory A/c for Finished Kit
6/16/2007 B00001 2140 Direct Cost KIT123 on
16/06/07
-60.00 2792 WIP Account, Finished goods
Assembly - Adjustment
Posting
Date
Document
No.
G/L Account
No.
Description Amount Entry No.
6/16/2007 B00001 2116 Direct Cost KIT123 on
16/06/07
-2170.00 2793 Inventory A/c for Finished Kit
6/16/2007 B00001 2115 Direct Cost KIT123 on
16/06/07
1670.00 2794 Inventory A/c for Finished Kit
6/16/2007 B00001 2140 Direct Cost KIT123 on
16/06/07
2170.00 2795 WIP Account, Finished goods
6/16/2007 B00001 2140 Direct Cost KIT123 on
16/06/07
-1670.00 2796 WIP Account, Finished goods
Sale - Inventory posting to G/L
Posting
Date
Document
No.
G/L Account
No.
Description Amount Entry No.
6/17/2007 103022 2115 Direct Cost 10000 on
17/06/07
-788.00 2797 Inventory A/c for Finished Kit
6/17/2007 103022 7190 Direct Cost 10000 on
17/06/07
788.00 2798 Cost of Retail Sold
22
KITTING FOR MICROSOFT DYNAMICS NAV 5.0 – WHITEPAPER
Sale - G/L Transaction
Posting
Date
Document
No.
G/L Account
No.
Description Amount Entry No.
6/17/2007 103022 6110 Order 1001 -
1000.00
2799 Sales, Retail - Dom.
6/17/2007 103022 2310 Order 1001 1000.00 2800 Customers Domestic
Disassembly Posting - Inventory Posting to G/L
Posting
Date
Document
No.
G/L Account
No.
Description Amount Entry No.
6/30/2007 B00002 2115 Direct Cost KIT123 on
30/06/07
-788.00 2801 Inventory A/c for Finished Kit
6/30/2007 B00002 7170 Direct Cost KIT123 on
30/06/07
788.00 2802 Inventory Adjmt., Retail
6/30/2007 B00002 2125 Direct Cost KIT123 on
30/06/07
200.00 2803 Inv A/c for Kit Comp
6/30/2007 B00002 7270 Direct Cost KIT123 on
30/06/07
-200.00 2804 Inventory Adjmt., Raw Mat.
6/30/2007 B00002 2125 Direct Cost KIT123 on
30/06/07
292.00 2805 Inv A/c for Kit Comp
6/30/2007 B00002 7270 Direct Cost KIT123 on
30/06/07
-292.00 2806 Inventory Adjmt., Raw Mat.
6/30/2007 B00002 2125 Direct Cost KIT123 on
30/06/07
176.00 2807 Inv A/c for Kit Comp
6/30/2007 B00002 7270 Direct Cost KIT123 on
30/06/07
-176.00 2808 Inventory Adjmt., Raw Mat.
Disassembly Posting - G/L Transaction
Posting
Date
Document
No.
G/L Account
No.
Description Amount Entry No.
6/30/2007 B00002 7500 Disassembly of KIT123 120.00 2809 Cost of Disassembly
6/30/2007 B00002 7170 Disassembly of KIT123 -120.00 2810 Inventory Adjmt., Retail
6/30/2007 B00002 7500 Labor for Kitting 40.00 2811 Cost of Disassembly
6/30/2007 B00002 7791 Labor for Kitting -40.00 2812 Direct Cost Applied, Cap.
6/30/2007 B00002 7500 Lift for Furniture 30.00 2813 Cost of Disassembly
6/30/2007 B00002 7791 Lift for Furniture -30.00 2814 Direct Cost Applied, Cap.
Purchase Invoice - Inventory Posting to G/L
Posting
Date
Document
No.
G/L Account
No.
Description Amount Entry No.
6/15/2007 108029 2126 Direct Cost 10000 on
15/06/07
-1000.00 2815 Inv A/c for Kit Comp Interim
6/15/2007 108029 5530 Direct Cost 10000 on
15/06/07
1000.00 2816 Inv. Adjmt. (Interim), Raw Mat
6/15/2007 108029 2125 Direct Cost 10000 on
15/06/07
1200.00 2817 Inv A/c for Kit Comp
6/15/2007 108029 7291 Direct Cost 10000 on
15/06/07
-1200.00 2818 Direct Cost Applied, Raw mat.
6/15/2007 108029 2126 Direct Cost 10000 on
15/06/07
-1460.00 2819 Inv A/c for Kit Comp Interim
23
KITTING FOR MICROSOFT DYNAMICS NAV 5.0 – WHITEPAPER
6/15/2007 108029 5530 Direct Cost 10000 on
15/06/07
1460.00 2820 Inv. Adjmt. (Interim), Raw Mat
6/15/2007 108029 2125 Direct Cost 10000 on
15/06/07
1500.00 2821 Inv A/c for Kit Comp
6/15/2007 108029 7291 Direct Cost 10000 on
15/06/07
-1500.00 2822 Direct Cost Applied, Raw mat.
6/15/2007 108029 2126 Direct Cost 10000 on
15/06/07
-880.00 2823 Inv A/c for Kit Comp Interim
6/15/2007 108029 5530 Direct Cost 10000 on
15/06/07
880.00 2824 Inv. Adjmt. (Interim), Raw Mat
6/15/2007 108029 2125 Direct Cost 10000 on
15/06/07
900.00 2825 Inv A/c for Kit Comp
6/15/2007 108029 7291 Direct Cost 10000 on
15/06/07
-900.00 2826 Direct Cost Applied, Raw mat.
Purchase Invoice - G/L Transactions
Posting
Date
Document
No.
G/L Account
No.
Description Amount Entry No.
6/15/2007 108029 7210 Order 106025 3600.00 2827 Purch., Raw Materials - Dom.
6/15/2007 108029 5410 Order 106025 -3600.00 2828 Vendors, Domestic
Purchase Invoice – Adjustments
Posting
Date
Document
No.
G/L Account
No.
Description Amount Entry No.
6/16/2007 B00001 2125 Direct Cost KIT123 on
16/06/07
-80.00 2829 Inv A/c for Kit Comp
6/16/2007 B00001 2140 Direct Cost KIT123 on
16/06/07
80.00 2830 WIP Account, Finished goods
6/16/2007 B00001 2125 Direct Cost KIT123 on
16/06/07
-13.33 2831 Inv A/c for Kit Comp
6/16/2007 B00001 2140 Direct Cost KIT123 on
16/06/07
13.33 2832 WIP Account, Finished goods
6/16/2007 B00001 2125 Direct Cost KIT123 on
16/06/07
-6.67 2833 Inv A/c for Kit Comp
6/16/2007 B00001 2140 Direct Cost KIT123 on
16/06/07
6.67 2834 WIP Account, Finished goods
6/16/2007 B00001 2115 Direct Cost KIT123 on
16/06/07
100.00 2835 Inventory A/c for Finished Kit
6/16/2007 B00001 2140 Direct Cost KIT123 on
16/06/07
-100.00 2836 WIP Account, Finished goods
6/17/2007 103022 2115 Direct Cost 10000 on
17/06/07
-33.33 2837 Inventory A/c for Finished Kit
6/17/2007 103022 7190 Direct Cost 10000 on
17/06/07
33.33 2838 Cost of Retail Sold
6/30/2007 B00002 2115 Direct Cost KIT123 on
30/06/07
-33.34 2839 Inventory A/c for Finished Kit
6/30/2007 B00002 7170 Direct Cost KIT123 on
30/06/07
33.34 2840 Inventory Adjmt., Retail
24
KITTING FOR MICROSOFT DYNAMICS NAV 5.0 – WHITEPAPER
Appendix C – Adjustments for Disassembly
(For examples above)
Actual Disassembly As Shown
Manual
Adjust Net
Inventory A/c for Finished Kit 787.99 33.34 821.33 0.00 821.33
Inv A/c for Kit Comp 3918.00 0.00 3918.00 40.00 3958.00
Inventory Adjmt., Retail 734.68 -33.34 701.34 6.66 708.00
Inventory Adjmt., Raw Mat. -668.00 0.00 -668.00 -40.00 -708.00
Cost of Disassembly 190.00 0.00 190.00 -6.66 183.34
4962.67 0.00 4962.67 0.00 4962.67
Summary Amount Debit Credit
Inventory A/c for Finished Kit 2115 821.33 821.33
Finished Goods 2120 0.00
Finished Goods (Interim) 2121 0.00
Inv A/c for Kit Comp 2125 3918.00 3918.00
Inv A/c for Kit Comp Interim 2126 0.00
Raw Materials 2130 0.00
Raw Materials (Interim) 2131 0.00
WIP Account, Finished goods 2140 -260.00 260.00
Customers Domestic 2310 1000.00 1000.00
Vendors, Domestic 5410 -5454.00 5454.00
Inv. Adjmt. (Interim), Raw Mat 5530 0.00
Sales, Retail - Dom. 6110 -1000.00 1000.00
Purch., Retail - Dom. 7110 434.00 434.00
Inventory Adjmt., Retail 7170 701.34 701.34
Cost of Retail Sold 7190 821.33 821.33
Purch., Raw Materials - Dom. 7210 5020.00 5020.00
Inventory Adjmt., Raw Mat. 7270 -668.00 668.00
Direct Cost Applied, Raw mat. 7291 -5020.00 5020.00
Cost of Disassembly 7500 190.00 190.00
Direct Cost Applied, Cap. 7791 -504.00 504.00
0.00 12906.00 12906.00
25
KITTING FOR MICROSOFT DYNAMICS NAV 5.0 – WHITEPAPER
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