Kits:
Kits are a way to group multiple items together as a single unit for sales or assembly purposes. They consist of a collection of individual items that are sold or assembled together. The price of a kit is not dependent on its components price. Kit components can be inventory items, assemblies, kits and services items. For example, a computer kit may include a CPU, motherboard, RAM, and other components. When a kit is sold, the inventory of its individual components is reduced accordingly.
Item Groups:
Item groups are similar to kits in that they also allow you to group multiple items together. However, item groups are primarily used for organizational purposes and don’t have the same inventory impact as kits. Item groups are mainly used for categorization, reporting, and pricing purposes. The price of members are totaled to calculate the price for the group. For example, you can create an item group called “Electronics” and include various electronic items within it.
Assembly Items:
Assembly items are used when you need to build or manufacture a product by combining various components or raw materials. They represent a finished product that is created by assembling other items. Assembly items have a bill of materials (BOM) that lists the components required to build the item. When you build an assembly item, the inventory of its components is reduced, and the inventory of the assembled item is increased. The item price is independent of its member’s price.
In summary, kits are used for selling or assembling multiple items together, item groups are used for organizational purposes, and assembly items are used for manufacturing or building finished products. Each serves a different purpose and has a distinct impact on inventory.