22 Understand Kit Pricing in Configured Items

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22.1 Understanding Kit Pricing in Configured Items

A kit is a collection of inventory items, called components, that are associated with a parent item. Components are stocked inventory items that are sold collectively in the parent item.

Unlike configured items, kits:

  • Have a single-level product structure

  • Identified by a single item number

  • Are parent only; no child work orders

  • Defined by bill of materials

  • Use basic routing

Despite these differences, you can use kit pricing methods with configured items. There are four kit pricing methods to calculate pricing for configured items:

Method Description
Method 1 The system totals the list prices of the components (F4106) to arrive at the Configured Item price. Add all of the component prices to arrive at the Configured Item price. The price of the Configured Item can then be discounted. The system will also check the Assembly Inclusion Rules for any X-Rules. The X-Rules will be added to the price of the Configured Item. These X-Rules could be used for price add-ons such as shipping / freight charges
Method 2 The system looks for a price for the Configured Item in the pricing (F4106) file. This will be the sales order price of the Configured Item. This price can be discounted. The system will also check the Assembly Inclusion Rules for any X-Rules. The X-Rules will be added to the price of the Configured Item. These X-Rules could be used for price add-ons such as shipping / freight charges.
Method 3 The Assembly Inclusion X-Rules will be the only source of pricing. The base price can be pulled into the configuration by using the "derived calculation" field of the Assembly Inclusion Rule. The "derived calculation" field should be populated with &BPUPRC to pull in the base price from the pricing file (F4106). Any other X-Rules will be added to the price of the configured item. These X-Rules could be used for price add-ons such as shipping / freight charges.
Method 4 The system will use the sum of the components discounted price for the Configured Item price. The Configured Item will get no further discounts. The system will also check the Assembly Inclusion Rules for any X-Rules. The X-Rules will be added to the price of the Configured Item. These X-Rules could be used for price add-ons such as shipping / freight charges.

Note: If the F4106 pricing file is used for Configured Item pricing, and the X-rules contain &BPRPRC to pull the base price, the price will appear doubled on the sales order. If the F4106 is used to pull the base price, the X-rules should be used only for other price adjustments such as freight charges.