Monday, November 5, 2018

Update a Kit/Package with a Member Item Converted from a Non Inventory Item to an Inventory Item


1. User can convert the non-inventory item to inventory item which is a member of a kit item.

2.  There is no need to update the Kit/Package to which the item is a member of.

3. The conversion impacts only new and prospective transactions. All historical transactions to which the item are used when it is still a non inventory item will still be posted to the expense code.

For example.

There is no Cost of goods sold account to be impacted for the portion of the non inventory item, when the kit/package is fulfilled.

Eg. Kit/Package XYC has 2 member items:

--Inventory Item ABC with Cost of $50.00
--Non Inventory Item DEF (with a Purchase price of $20) on a vendor bill that is posted to Expense Account.

-Item Fulfillment for a Sales Order which is recorded prior the conversion, will show a GL impact of :

Debit     Cost of Goods Sold $50.00
Credit    Iventory Asset $50.00

Note: After conversion, a new sales order is created and fulfiilled. The item fulfillment GL impact will show: The non inventory for resale which is converted to Inventory will now have an impact to COGS account that was selected at the time of conversion.

Debit     Cost of Goods Sold $50.00
Credit    Iventory Asset $50.00
Debit     Cost of Goods Sold $20.00
Credit    Iventory Asset $20.00

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