September 8, 2020
How to Use Dynamics 365 Finance and Operations to Create Product Bundles with Skalable’s New KIT Feature
Dynamics 365 Finance and Operations allows users to configure Bills of Material (BOMs) to manage kits or product bundles. But the standard solution does not support splitting BOM sales order lines once the BOM is exploded. If the sales lines are split after the BOM is exploded, the system removes the original KIT BOM reference to the sales order lines. Most retail and distribution companies require the ability to configure KITs in their ERP and then Split them for sub-component visibility when the KITS are delivered to the customers.
Skalable has created a custom solution to handle this scenario in Dynamics 365 Finance and Operations. This custom KIT feature will allow companies to split the KIT’s and do partial shipments. This feature can be used most widely in the Manufacturing, Retail, and Distribution industries.
Here’s how it works when the feature is deployed in the Dynamics 365 Finance and Operations environment.
Step 1: Enabling New KIT Feature:
⦁ Go to Inventory management Setup Inventory and warehouse management parameters.
⦁ Under the General tab Enable Product Kits
Step 2: KIT Configuration:
⦁ Go to Product information management > Products > Released products.
⦁ Select the KIT Item.
⦁ Now click on the Engineer action pane and open Kit configurator.
⦁ Click New to add each required KIT component, quantity, and price allocation percentage.
⦁ Click Activate to activate the KIT.
How to use the KIT feature during the Sales Process:
⦁ Go to Sales and marketing > Sales Orders > All sales orders.
⦁ Create a new sales order.
⦁ Select the item number which is configured as KIT in the released product.
⦁ Upon selecting the item number in the sales order lines, the new KIT feature screen will pop up on the right as shown below.
⦁ Enter the KIT Quantity, Unit Price, Site, Warehouse, etc.
⦁ Then Click Ok, so that system will pop up a screen for Confirming the KIT explosion. (See below)
⦁ Click Yes to open the KIT Release Screen.
⦁ In the KIT Release screen (see below), the system will show the KIT with Order Qty, Unit Price, and Net amount in the Header (Kit release section). The KIT Components Qty and Net amount will be calculated based on the KIT Configuration and it will be shown in the lines (Kit release section). In the below example, the KIT Order Qty is 5, Unit Price is 100 and the Net amount calculated is 500, so the subcomponents Qty and Net amount has been calculated as 50 and 250 based on the KIT Configuration in the Released product.
⦁ When we close the KIT release screen, the components will be added to the sales order lines with KIT reference automatically as shown below.
⦁ When there are not enough complete kits available in inventory, or if the customer requests a partial shipment, then the user will be able to split the KIT order.
⦁ When that happens, the User should select a KIT component line item and click “Kit” in the sales order lines header, so that the KIT Release screen will be opened.
⦁ On the KIT release screen (below), click on “Split Release.”
⦁ On the Split Release screen (see below), click “Add” for each Release ID and enter the quantity for each release to split the KIT order. Click OK when the release split is complete.
⦁ In the below example, the first release will ship 2 KITs. The second release will ship 3 KITs. So in total, the original five KIT order will ship but will be split into two shipments.
⦁ Now, the KIT Split will be shown on the KIT release screen (see below).
⦁ You can now close the screen. Upon closing the screen, the Split release will be added to the sales order lines as shown below with a KIT reference for each component item and a Release reference.
⦁ After splitting the release, the system will use the standard sales confirmation, picking, packing, and invoicing.
⦁ The Invoice report will show only the KIT item as shown below.
If you have questions or would like to incorporate this special feature into your Dynamics 365 F&O, contact Skalable Technologies at (408) 890-5066.
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