1) Print screens of Part Master Maint for the kit and kit components before the kit quantity is increased.

2) Print screens of Part Master Maint for the kit and kit components after the kit quantity is increased by one using the "Update kit on hand quantity" link on the Kit tab of Parts Profile.

The "Update kit on hand quantity" generates a sales order that sells the kit component parts as with an NSC code of 'X' (no charge) and sales history is recorded for these kit components. The kit is credited for the number of kits being created using an NSC code of 'A' so that sales history is not recorded. Sales history for the kit will be recorded when it is sold to a customer. The average cost of the kit is updated to reflect the total cost of the components transferred to that kit. In the attached example, the average cost of the kit was $6.45. Since there were 110 of the kit on hand, the total inventory cost is 110 * 6.45 = $709.50. One kit was created so the value of the components must be added to the total inventory cost of the kit to derive a new average cost. Part T19044DMK1 has an average cost of $2.65 and part T19044DMK2 has an average cost of $5.34. Since it takes two of each parts to make up one kit, then which means the total inventory cost of the kit is increased to $725.48 which. This brings the average cost of the kit part T19044DM to 725.48/111 or $6.53.

3) Print screens of Part Master Maint for the kit and kit components after the billing run.

4) The Kit maintenance tab for T19044DM showing the components that make up the kit and the link "Update Kit On Hand Quantity"

5) The "Update Kit On Hand Quantity" screen. On this screen the user keys in the number of kits to be built. The customer number displayed is the customer number that will be used on the Sales Order generated by this option to relieve inventory. This customer number is loaded in the "Kit Customer Number" field in CMBR4. This must be a normal customer and not a terms 'T' (ie. Transfer) customer. If no customer number is loaded in this field for the assigned branch, then the "Update Kit On Hand Quantity" link will not appear on the Kit tab.

6) A sample of the invoice generated from step 2).

7) Billing run reports that show the impact on the G/L when the invoice is generated from the sales order generated in step 2). The net result is a credit to the inventory account and a debit to the cost of sale account for the kit component parts and a debit to inventory account and a credit to the cost of sales account of the kit part. Sales is not affected because the kit and kit components are sold a 0 price.