SAP SD tutorials: Sales Kitting process

Product kitting, also called product bundling in some software systems, is an inventory management term that refers to the process of combining single items into one unit for sale. When a kitted item is purchased, the inventory system automatically links each single item to the sale. Goods sold both by the piece and as part of as a set, subscription box products, and products assembled on order all are examples of kitting in action.

There are 2 scenarios:

Depending on the number of parts within kit and stock situation. You should be able to make a decision.

1. Using production order process:

Create Material master with MRP view and WS view for the kit

Create bill of material for Kit ( Items are kit parts) - Usage - Production(preferably)

Then you can use normal production order process(Goods issue and Good reciept of kits)

If required use the labour hours and confirm the time. Orelse only inventory transactions.

You can plan the full process from planning till delivery.

The following customization is required to be done for setting WM-PP interface. This customization is for production order scenario.

step1 : SPRO - LE-Warehouse managment-Interfaces-Define Production.

Set up the production scheduling profile by copying the standard prod. scheduling profile. I have created Z00002 here. In the production scheduling below setting is to be done by changing the default one. This prod.scheduling profile will further be linked to the material master.

Select 1 if you want immediate Transfer order to be created upon release of production order.

With this setting ,once you release the production order ,a Transfer requirement and a Transfer order will be created.The transfer order can be used as a pick list to pick the child components.

Step2

Save and go back to the PP interface main menu.In the whse management button view select the PP interface active

Step 3

Save and go back to the PP interface main menu. In the Replenishment movement type tab assign mvt 319 as replenishment movement to storage type 100.

Step 4

Once this is done ,you need to maintain master data

1)Material master

In the Material master ,in the work scheduling profile view ,maintain the production scheduling profile , that you earlier created .This is required for child components only.Parent material need not have it as it is not going to be staged.

2)Production supply area: Use transaction PK05 to maintain production supply area.

3)Control cycle: Maintain control cycle using transaction LPK1. Inside the control cycle note the below settings to be done.

You can either specify a fixed bin you have created in the production storage type 100. 

(This is to differentiate the material being staged onto different lines if it is a amnufacturing site.) Since in our case it is not a regular manufacturing site , we can use a dynamic bin which is actually the production order number.When dynamic bin is ticked , actual storage bin is not required to be entered.

From PP side you will need to maintain the following master data

1) Work centre - Use Tcode CR01

2)Routing -Use Tcode CA01. Routing captures the work centre for the parent component

3)Production BOM -Use Tcode CS01.

Steps for executing the Production order scenario-

1)Once you receive a customer order , a production order is created for the quantity required using CO01.

2) Release the production order with transaction CO02.

3)Once the production order is released ,it will create Transfer order in the back ground for the child components. The destination bin will be a dynamic bin in storage type 100.

4)Once the items are picked and brought to the assembly area ,confirm the Transfer order.

5)Do a goods receipt for the parent component with CO11n.This will consume the child components(mvt 261 ) and produce parent component (mvt 101)

A transfer order will be created for the parent component for put away.

6)This parent components can be now picked for the customer order using normal delivery.

2. Using sales order.

Create Material is same as above.

Bill of material is same as above but Usage is SALES.

Explode the bill of material in Sales order, using the right item category.

Then decide depending on the process whether you want to deliver parts of kits or Kit itself.

You can print the part of kits in delivery note convienently.