Kitting Process

Production Journals can be used to support the assembly and disassembly of Kit items, allowing you to combine multiple components into a finished good or break a finished good into its components without using a Work Order.

Setup

Kit Parent Item Setup

• Replenishment System: Must be set to 'Work Order.'

• Item Formulas: Components of the finished Kit item are set up as item formulas.

Component Formula Setup

• Define one item formula line for each component used in creating the Kit item.

• Component Item Number: Enter the item number of the component.

• Quantity Per: Enter the quantity required to create one (1) Kit Item.

• Unit of Measure: Specify the unit of measure for the component.

Note
Formula versions cannot be used when setting up a Kit item formula.

Component Routing Setup

• Routing lines can also be set up for assembled Kit items, providing instructions for assembly and accounting for capacity/labor costs.

• Work Center Number: Enter the work center used for assembly.

• Quantity Per: Define the quantity used in the process.

Note
Routing versions cannot be used for Kit item routing.

Creating a New Production Journal

Open the App Launcher and search for Item Journals.

Click New to create a new journal.

Select Production Journal as the Record Type and click Next.

Fill in the Fields:

• Posting Date: Enter the date of the production journal.

• Output Item: Enter the item to be produced.

• Output Quantity: Enter the total number of kits to be produced.

  • Positive quantity = assembling the kit (component quantities will be negative).

  • Negative quantity = disassembling the kit (component quantities will be positive).

• Output Warehouse: Specify the warehouse for the output.

• Output Unit of Measure: Enter the unit of measure for the output item.

• Ensure the Output Item is Lot Tracked.

• Output Bin: Specify the bin location for the output.

When the output quantity is entered, the consumption lines for component items will be automatically calculated based on the Kit Item Formula.

After reviewing, click Save.

Enter Output Item Lot Numbers

If the Kit Item is Lot Tracked, follow these steps:

• Click Edit and navigate to Output Tracking Lines.

• Click Add Tracking Lines.

• Enter a new Lot Number if assembling a Kit Item. If disassembling, select an existing Lot Number.

• Ensure the quantity is correct.

• Enter the Lot Manufacture Date and Lot Expiration Date.

Save the production journal line.

Enter Component Item Lot Numbers

If the component items are Lot Tracked, follow these steps:

• Click the red Enter Lots button to input lot numbers, or click Enter Lots at the top for batch entry.

• Select Add Tracking Lines to enter the lot number and quantity.

• Use the Search icon in the Enter Lot field to find the lot being used.

• Adjust the quantity if using multiple lots, and select additional lots if necessary.

• Save the item journal line.

Posting the Production Journal

Once the lot numbers for the output and component items are entered, click Post to complete the journal entry.

Posting Results

When the production journal is posted:

• GoldFinch consumes the components and services.

• The Output Unit Cost is updated on the Item Journal and posted with the updated cost.

• General Ledger Entries are created:

Cost Adjustments

During the daily Adjust Cost routine, if the component cost is updated, GoldFinch will:

• Insert adjustment cost entries for the components.

• Update the unit cost on the item journal line.

• Recalculate the output unit cost.

• Insert adjustment cost entries for the Kit item.

This process ensures that both components and Kit items are properly accounted for in terms of cost, providing an accurate financial reflection of production activities.

Article Kitting-Process  ·  Last updated September 29, 2025 · GoldFinch ERP Help Center