Assemble and Disassemble Kit actions

You can gather items to create a kit or take a kit apart.

When you assemble a kit, you increase the balance of the kit record and you reduce the balance of the items in the kit.

When you disassemble a kit, you increase the balance of the items in the kit and you reduce the balance of the kit record.

If a discrepancy exists between the value of a kit and the combined cost of the components in that kit, a kit cost variance (KITCOSTVAR) transaction is written that represents the variance between the two (the cost of a kit and the combined cost of that kit components).

This financial transaction uses the control account for the storeroom location as the debit account and the receipt variance account as the credit account.

Important: For LIFO and FIFO costing of kits or kit items, multiple financial transactions might be generated.

Example

Disassemble a kit using the standard cost: the value of the kit is $430 (standard cost), the combined standard cost of the components is $410. This action results in a cost variance of $20.

Table 1. Source of GL account code for kit cost variance
Source GL account Debit Credit Source of GL account
Control account of the storeroom location $20.00 $20.00 Receipt variance account