Dynamics GP Bill of Materials and Kits

We have received a number of recent queries about the difference between Inventory Assembly Bill of Materials, Manufacturing Bill of Materials, and Kits.

From the simplest to the most complex, Kits:

Kits are transparent in inventory. Only the component quantities exist in inventory; the kit is assembled at the moment of sale, i.e., when the invoice is posted. Kit components can be swapped in and out.

The system will automatically open the Sales Quantity Shortage Options form if any component is not in stock. If you select the option to Allocate Available Components, the system will automatically open the Sales Kit Options form showing the default location and quantities available. Alternate locations can be searched and selected.

Kits can be used in both Assembly and Manufacturing BOM's for phantom bills. The user decides when the kit is first created if the cost of a kit rolls up from the components following the component's cost method or if the kit has a standard cost.

Assembly Bill of Materials allows for an unlimited number of assemblies and subassemblies, each created with an Assembly Entry transaction. Assembly BOM's allow for the inclusion of service and flat fee items. An Assembly BOM is created at the moment when the Assembly Entry transaction is posted.

Manufacturing BOM's have the complexities of routings, overhead, waste, scheduling, outsourcing, etc. An incorrect assemption is that an Assembly BOM can become a Manufacturing BOM. They are two distinct separate master records, albeit an Assembly BOM can be exported to assist with the import of Manufacturing BOM's should a company choose to add the additional functionality. Manufacturing BOM costing can be quite complex with a number of options.