NetSuite: Understanding Assembly Items, Kits, and Item Groups
Published on May 29, 2019
NetSuite provides support for a number of product types, including inventory items, non-inventory items, service items, and more. Three additional item types that it supports - assembly items, kits, and item groups - are what I refer to as "complex" types. Those item types are somewhat similar in that they are each made of other other items. However, they are also different in terms of their features and how NetSuite handles them.
In this post I'll give an overview of assembly items, kits, and item groups.
One of things that makes assembly items different from kits and groups is that they need to be assembled or "built" before they can be used to fulfill an order. They are made up of other item types, and that can include inventory items, non-inventory items, service items, charges, and even other assembly items.
The price of an assembly item is not dependent on the prices of its component, or member, items. In other words, you can set an assembly item's price however you see fit.
Building an assembly item has GL impact. You'll see the asset accounts of the various components decrease, and you'll see the asset account of the assembly item increase. This is because you're removing the component items from stock, and the result is an assembled item that is being put into stock.
I like to think of kits as "bundles" of items that are being sold together as if they are one item. Kits can be composed of inventory items, assembly items, service items, and even other other kits.
Like an assembly item, the price for a kit can be set independently from the prices of its component items.
The difference between a kit and an assembly item is that you do not have to "build" a kit in order to fulfill an order. Instead, when an order for a kit is fulfilled, the individual components are picked at shipped at that time. There's no need to do anything to the components ahead of time.
Perhaps the most important thing to remember about kits is that when they are being added to a transaction, they cannot be broken up. In other words, you cannot "break a bundle." The kit itself is a line item with a set price. However, depending on how a kit's component items are setup, it is entirely possible that you can sell them individually.
An item group is a collection of items that you might want to sell together. For example, an item group might consist of a printer, a cable, spare ink, and a service contract.
When you add an item group to a transaction, all of its components are automatically added as individual lineitems. However, unlike a kit, with an item group, you can choose to remove components, increase or decrease their quantity, and so on.
Additionally, due to the nature of an item group, it doesn't really have a price at all. When you add an item group to a transaction, the prices of the individual items in the group will be reflected.