Kit Items on Sales Reports, COGS based on Components

Many sales reports in Acctivate, such as a standard Invoice report, will display all products that are associated with that sales order. If a Kit product exists on the sales order, that Kit will display on the report the same as an Inventoried product would. However, it’s important to keep in mind that the Cost Of Goods Sold will be based on the components of the Kit product and not the Kit itself. Since a Kit is Non-Inventoried, technically, that product has no related cost. Instead a Kit functions as a collection of other products known as Components so the cost will instead be reflected for those Components, not the parent Kit.  (see the Kitting Process article).

Notice in the screenshot below, product DS10 was sold on sales order A1488T.

1-29-2016 1-33-10 PM

In the next screenshot, notice that DS10 is a Kit product which shows the relationship to sales order A1488T. Also notice that DS10 has no Transactions tab.

1-29-2016 1-34-12 PM

Next, notice the Components tab for DS10 which lists all of the products that DS10 is made up of. One of these Components is CAL10.

1-29-2016 1-35-26 PM

In this last screenshot, we can see the Transactions tab of CAL10, the Component of DS10. Notice that this Component shows the it was removed on sales order A1488t at a Cost of 3.65.

1-29-2016 1-36-03 PM

The Cost Of Goods Sold for DS10 on order A1488T will be related to CAL10, along with all of the other Components of DS10, instead of DS10 itself, despite how the product shows on the sales reports. This is not exclusive to the Invoice report, most sales reports will display the parent Kit instead of it’s Components.

Tagged with: , ,
Posted in Accounting, Sales - Last modified on January 29, 2016Matt Allen
Still need help?
Search all content on this site, contact support at 817-870-1311, or create a support request.