Understanding Composite Items
In this document, you can view the detailed breakdown of the Composite Items module, how it works, and its benefits in Zoho ERP.
Composite Items in Zoho ERP
Composite Items let you bundle multiple individual items into a single item. When you sell a composite item, the stock of its component items is automatically reduced, making it perfect for kits, bundled items.
Assembly Item
Assemblies (formerly known as Bundles) is used when you physically assemble a single item from individual components. This is ideal for manufacturers and businesses that produce finished goods.
Scenario: Brandon runs a furniture business that manufactures tables. He purchases the components (items) such as legs, screws, and a tabletop, and assembles them to make the final product. To track this process, he uses the assemblies feature in Zoho ERP where he assembles the components together, resulting in the reduction of the component’s stock level, and a new finished good (assembly) is created with its own stock. He then uses the Assemblies module to keep track of the assemblies created and manages them all in one place.
Kit Items
Kit Items are for grouping existing items for sale without any physical assembly. Great for promotional bundles, gift sets, or product combos where each component remains independent but is sold as a single unit. You can also set custom pricing for kits, making it easier to create compelling offers for your customers.
Scenario: Patricia has a cosmetic store where, during the holiday season, she offers a gift box at a discounted price that includes moisturiser, lipstick, and perfume. Hence, she uses Zoho ERP to create kits in composite items that save time. She does not have to worry about creating a new combo item in Zoho ERP with its own dedicated stock. Instead, the stock of the associated components will be tracked individually and not as a new item.
Difference Between Assembly Item and Kit Item
| Feature | Assembly Item | Kit Item |
|---|---|---|
| Definition | An item created by assembling items | A bundle of items sold together |
| Stock handling | Stock is created for the assembly item | No separate stock for kit item |
| Stock impact | Assembled item stock increase, items to assemble are reduced, | Items are reduced at the time of sale |
| Best used for | Items that needs to assemble to create a new item | Combos, bundles, and promotional packs |
| Examples | Dining table assembled from wooden legs, tabletop, and screws | Gift hamper with chocolates and snacks |
Benefits of Composite Items
- Simplifies selling items as kit or a assembled item.
- Automatically adjusts stock levels of component items.
- Reduces manual inventory tracking and errors.