Kit processing for advanced distribution allows the user to sell a kit made up of various items in inventory under a single item number while processing the pick and ship as individual items. The differentiation between a Bill of Materials and a Kit is that a Bill of Materials is used to consume multiple items while producing a single item before the sales order is taken. Using a Kit, each component of the kit is maintained separately in inventory until it is sold and picked for shipment.

A single item can be used to define a manufactured item as defined by a bill of materials and a kit item, which is assembled during the picking process. Many customers may want this flexibility of using both methods since they sometimes pre-build kits and store them as a finished good. In the case where an item can be processed as a kit and a bill of materials the system will prompt the user at sales order entry time as to which method is to be used.

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