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Finance | Project Operations, Human Resources, ...
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How do I breakdown a kit into it's component parts

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I have a use case where I purchase a product as a kit and then do a journal to sell the individual parts.

Currently we are doing a BOM Journal to split the kit into the individual products.

Unfortunately when looking at the demand history BOM Journals are not counted therefore the usage of the kit is not tracked and therefore I cannot do any forecasting for the kit.

Production orders do not allow me to put a negative quantity for the BOM.

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  • Satish Panwar Profile Picture
    14,671 Moderator on at
    RE: How do I breakdown a kit into it's component parts

    Hi Mike,

    Production orders won't allow negative quantities, that's why BOM journal exists. What you can do is try to run a report that pull your KIT from bom journals and they try to use that for forecasting purposes, so it's manual work for forecasting.

  • guk1964 Profile Picture
    10,888 on at
    RE: How do I breakdown a kit into it's component parts

    Process manufacture supports inverse boms. for deconstruction e.g. to breakdown a chicken into co-products of breasts, wings, legs, and other by products,

    You can also have negative lines  on Boms i.e as by products. but you would need to make a dummy product and scrap it and offset the postings. .

  • Community Member Profile Picture
    on at
    RE: How do I breakdown a kit into it's component parts

    Thanks, this is a not so good example that talks about this.

    Our use case is a KIT made up of Product1, Product2 & Product3

    We purchase the KIT and disassemble into Product1, 2 & 3.

    We then sell Product1, 2 & 3.

    Our key requirement is to get demand on the KIT flowing through to MRP, which we do not have at this time as we are using an inventory journal.

    1. Not clear on whether I use a Production type of Planning item, BOM or Formula for the KIT?
    2. Not sure of the Production type to use for the Product1, Product2, and Product3.
      1. But reading your answer it looks like they need to be By-product?
    3. You say process manufacturing, so does this mean I have to set up a route and resources or can I keep it simple?
    4. You also mention a by product that needs to be scrapped, we do not scrap anything is this mandatory?

    Cheers

    Mike

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