Distribution
ERP
Inventory Management
Warehouse Management
Kitting in Inventory Management: How ERP and Inventory Software Handle Kits, Bundles and Assemblies
Last updated: 7 October 2026 · Independent buyer’s guide · We do not sell rankings or coverage.
Kitting inventory means selling several items together under one SKU, and software handles it in three different ways: as a virtual kit whose components are picked when the order ships, as a pre-built kit that is assembled ahead of time and stocked as its own item, or as a light assembly driven by a bill of materials. The model decides how your system calculates available-to-promise, what lands in cost of goods sold, how reorder points see component demand, and what happens when a kit comes back.
Key takeaways
- Use virtual kits when components also sell on their own and you want one shared pool of stock. Availability is calculated from components, and the kit itself holds no inventory.
- Use pre-built kits when assembly takes real labor or packaging, or when the kit needs its own lot or serial number. You gain a countable SKU but lock components inside it.
- QuickBooks Online bundles are a sales convenience only. Intuit states you cannot track quantity on hand for bundles, and QuickBooks Online has no assembly feature.
- NetSuite, Business Central, Acumatica, Sage Intacct and Cin7 Core all support both virtual and pre-assembled kits natively, but they differ on returns, disassembly and cost roll-up.
- Test kit returns during your demo. It is the step vendors document least, and it is where component counts most often drift.
The three kitting models, explained
Virtual kits and bundles
A virtual kit is a sales item with a list of components attached to it. You sell one line on the order, and the warehouse picks the individual components at fulfillment. Nothing is assembled in advance, so the kit never has an on-hand quantity of its own. Acumatica’s documentation describes these as kits that are “neither produced nor tracked in inventory,” with stock components that “can be sold in the kit or as separate units.”
This model suits ecommerce sellers and distributors who create promotional bundles, starter packs or gift sets from items they already stock. The cost is that every kit order adds several pick lines, and accuracy depends on the packer reading a component list correctly. If mis-picks are already a problem, read our analysis of what inventory errors really cost distributors before you add more multi-line orders.
Pre-built kits
A pre-built kit is assembled before anyone orders it. A kit assembly or build transaction removes the components from stock and adds finished kits to stock. The kit then has its own bin location, count, cost and reorder point.
This model fits subscription boxes, kits with inserts or shrink wrap, and kits you want to ship as fast as a single item. It also allows the kit to carry its own lot or serial number, which matters if you sell regulated or dated goods. Our guide to lot and serial tracking in ERP covers why that traceability matters during a recall. The trade-off is that a component locked inside a kit is no longer available for single-item orders unless you disassemble the kit.
Light assembly with a bill of materials
Light assembly sits between kitting and manufacturing. You define a bill of materials (BOM) with components, quantities and sometimes a labor or resource line, and the system creates an assembly order when you build to stock or when a sales order requires it. Microsoft separates this clearly in Business Central: assembly BOMs are for items assembled “with little to no resource use,” while production BOMs are for work that needs routings and machine centers.
How each model affects availability, costing, reordering and returns
The model you choose changes four calculations that operations teams rely on every day.
| Issue | Virtual kit | Pre-built kit | Assemble to order (BOM) |
|---|---|---|---|
| Available-to-promise | Calculated from the scarcest component | The kit’s own on-hand count | Component stock plus assembly lead time |
| Cost of goods sold | Sum of component costs at shipment | Kit cost fixed at build, including labor if added | Component and resource cost posted at assembly |
| Reorder points | Component demand is visible directly | Two levels: the kit and its components | Component demand appears when orders are entered |
| Customer returns | Return the kit or individual components | Return as a kit, then disassemble if needed | Varies by product; often a manual step |
Available-to-promise
For a virtual kit, the number you can promise is the number of complete sets your components can make, limited by the scarcest component after open orders for single items are deducted. Oracle’s NetSuite help states that kit inventory “is tracked by individual component members” and that the kit record “can’t display an available quantity,” so teams that publish kit stock to a web store usually need a saved search or a connector to calculate it.
For a pre-built kit, available-to-promise is the kit’s on-hand count minus open orders, so your website may show the kit as sold out while components for fifty more sit on the shelf.
Costing
With a virtual kit, cost of goods sold is the sum of the component costs under your normal costing method at the moment each component ships. With a pre-built kit, the cost is fixed when you build it. NetSuite states that “the asset or inventory cost of each built assembly item is the total value of the assembly’s member items,” after which the assembly follows its own costing method. Sage Intacct partner RKL eSolutions, which sells Sage Intacct services, notes that stockable kits in Sage Intacct “always use the FIFO cost method.”
Revenue reporting also changes. NetSuite states that “a kit sale posts revenue for the kit only,” so plan how buyers will see kit-driven demand for each component.
Reorder points
Pre-built kits often cause component stockouts. Component demand arrives in lumps when someone runs a build, so a reorder point based only on single-item sales history understates true demand. Give kit builds their own reorder point and lead time, or use planning that explodes kit demand down to components. For example, the 2024 R1 release notes for MYOB Acumatica describe kit components being included in inventory planning in the manufacturing module.
Returns of kits
Returns are the least documented part of kitting. Acumatica is unusually clear: a stock kit can be returned only as a kit unit, while a non-stock kit can be returned as “a kit unit or any kit components.” Its stock kits also support a disassembly transaction that returns the components to inventory. Cin7 Core supports disassembly as the reverse of assembly. Microsoft documents an undo for posted assembly orders, but only while the assembled item “hasn’t been sold or otherwise consumed” and is not reserved, so returned, previously sold kits in Business Central need a separate process that you should agree with your partner.
A worked example
Illustration: the figures below are constructed to show the mechanics and are not drawn from any real company. A tools distributor sells a starter kit made of one drill, two batteries and one charger. It has 120 drills, 200 batteries and 150 chargers on hand, and 30 batteries are already committed to open single-item orders.
As a virtual kit, available-to-promise is the lowest of 120 drills, 85 battery pairs (170 free batteries divided by two) and 150 chargers, which gives 85 kits. Cost of goods sold for each kit is the drill at $62, two batteries at $18 each and a charger at $14, for $112.
If the distributor instead pre-builds 40 kits, the build consumes 40 drills, 80 batteries and 40 chargers. The kit SKU shows 40 available, each carrying a cost of $112 plus $3 of packaging and $2.50 of labor if the system allows those lines, for $117.50. Only 80 drills and 90 free batteries remain for single-item orders. If a customer returns a kit with one battery missing, a system that only accepts whole-kit returns will put a complete kit back into stock that is actually short a battery, unless someone disassembles it and adjusts the count.
How specific products handle kitting
Oracle NetSuite
NetSuite offers three relevant item types. Kit/package items are virtual: components are deducted when the kit sells, the kit can carry several price levels, and its price does not depend on its components. Assembly items are built through an assembly build transaction, which increases the assembly’s stock and reduces its members’ stock, and NetSuite also documents an assembly unbuild. The limitation for kits is visibility, because the kit record cannot show an available quantity. NetSuite does not publish prices; Oracle says module licensing fees vary by module.
Microsoft Dynamics 365 Business Central
Business Central handles kitting through assembly BOMs, which Microsoft says can be used “to sell a parent item as a kit consisting of component items.” It supports assemble-to-stock and assemble-to-order, where an assembly order is linked automatically to the sales line. Standard cost can be rolled up from components and resources. For a pure virtual bundle, the Explode BOM action replaces the kit line with its components, but Microsoft warns that you “can’t easily undo it.” Microsoft lists Essentials at $80 and Premium at $110 per user per month, billed yearly, and its pricing page reserves manufacturing for Premium.
Acumatica
Acumatica has the clearest native split between the two kit types. Non-stock kits are virtual and issue their stock components at shipment. Stock kits are produced through a kit assembly document, tracked as regular stock items, can carry lot or serial numbers, and can be disassembled using the revision they were built with. Kit specifications support revisions, so you can change a component without creating a new kit. Acumatica does not publish prices and sells on a resource-based model with unlimited users.
Sage Intacct
Sage Intacct distinguishes standard kits, which are assembled at the time of sale and reduce component stock when sold, from stockable kits, which are built in advance and add to the kit’s on-hand quantity. According to RKL eSolutions, a Sage Intacct partner, stockable kits always use FIFO costing. That is a constraint if the rest of your inventory runs on average cost.
Fishbowl
Fishbowl separates sales kits from manufactured items. Its kits group parts and products on a sales order, with optional and variable variants for configurable bundles. For pre-built kits, Fishbowl uses bills of materials and work orders, and it supports disassembly BOMs. Fishbowl integrates with QuickBooks for accounting. Fishbowl lists its Inventory plans at $229, $429 and $729 per month, billed annually, but those plans do not include bills of materials or work orders. Those features are in Fishbowl Advanced Manufacturing, which starts at $675 per month and is quoted by users and deployment.
Cin7
Cin7 Core uses assembly BOMs for kitting and supports auto-assembly, where “the assembled product will be produced automatically after the sale order is authorized, assuming there are enough components in stock.” It shows how many finished goods your components can make. Cin7 lists Core at $349, $599 and $1,199 per month for its Standard, Pro and Advanced plans, with kits, bundles and BOM tracking included from Standard. Cin7 Omni is quoted individually.
QuickBooks Online and QuickBooks Enterprise
QuickBooks Online offers bundles, which group up to 50 items on a sales form. Intuit’s 2016 release notes for the feature state that “you can’t track quantity on hand for bundles,” and an Intuit moderator confirmed in 2023 that “QBO has no Assembly feature” and that a bundle sale can drive component stock negative without warning. Inventory tracking requires QuickBooks Online Plus or Advanced, listed at $140 and $340 per month after a three-month introductory discount. Intuit’s current assembly help article lists only QuickBooks Desktop Premier, Enterprise and Accountant. Those editions support inventory assemblies with build transactions and pending builds when components are short, and Intuit includes Advanced Inventory in the Enterprise Platinum and Diamond tiers.
Our independent take
No product wins on kitting alone, because the right choice depends on which model you run most. Acumatica documents the full cycle of virtual kits, stock kits, disassembly and component-level returns most completely. Business Central is strong on assemble-to-order but limited when reversing kits that were already sold. NetSuite handles kit pricing and assemblies well but needs extra work to show kit availability. Cin7 Core suits ecommerce sellers who want auto-assembly at a published price. QuickBooks Online bundles are an invoicing convenience, so real kit stock needs an add-on such as Fishbowl or Cin7, or a system with native assemblies.
Three buyer scenarios
An ecommerce seller with $4 million in revenue, running QuickBooks Online and selling gift bundles on Shopify. Your bundles are not tracked as stock. Add an inventory application that supports kits and syncs to QuickBooks, such as Cin7 Core, and keep QuickBooks for accounting.
A distributor with 60 employees that pre-packs 15 contractor kits and sells the same components individually. You need both stock kits and virtual kits in one system, plus a planning view that explodes kit demand to components. Shortlist Acumatica and Business Central, and ask each vendor to demonstrate a partial kit return.
A light manufacturer that assembles kits with a few minutes of labor each and sells them through dealers. Use assembly BOMs with a labor line so kit cost reflects the work. Business Central’s assembly management or NetSuite assembly items are reasonable fits, and you should confirm that you do not need routings, which would push you into manufacturing modules.
When you do not need dedicated kitting software
If you sell a handful of fixed bundles, have no lot or serial requirements, and your components rarely sell individually, a sales-only bundle in your accounting system and a printed kit sheet at the packing bench may be enough. The same applies if a 3PL builds your kits for you. Also confirm whether your problem is kit logic or general warehouse discipline. Our explainer on warehouse management versus inventory management can help you decide which system the problem belongs to.
Labeling rules do not depend on your software. GS1 states that a new bundle whose items are not physically attached is a virtual bundle and does not need its own GTIN, while a physically attached bundle needs a GTIN assigned by its creator.
How we researched this
We reviewed the pages that rank for kitting inventory, mainly vendor and service-provider blogs, and found that none compares how software handles kit availability, costing, reorder points and returns. We then read each vendor’s documentation and pricing pages on 7 October 2026. Where a vendor did not document a capability, we cited a named partner and said that it sells the product, or left the claim out. Acumatica’s kit documentation was read in the MYOB Acumatica user guide, which is the Australian edition of the same platform.
Related guides
- EDI 856 Advance Ship Notice (ASN): What Suppliers Need From Their ERP and EDI Provider
- Vendor Rebate Tracking Software for Distributors: How It Works and What Your Options Are
- Standard Cost vs Actual Cost in Manufacturing: How ERP Handles Each and When to Switch
- Retail Chargebacks: Why Suppliers Get Fined and the Software That Prevents and Recovers Them
Frequently asked questions
What is the difference between kitting and bundling?
The terms overlap, and vendors use them differently. In most inventory systems, a bundle or virtual kit is sold as one line but picked as separate components, while a kit in the stricter sense is assembled in advance and stocked under its own SKU.
Does QuickBooks Online track inventory for bundles?
No. Intuit states that you cannot track quantity on hand for bundles in QuickBooks Online, and the components are deducted individually when the bundle sells. QuickBooks Online also has no assembly feature, so pre-built kits require QuickBooks Desktop or a third-party inventory application.
How do you calculate available quantity for a kit?
For a virtual kit, divide the free quantity of each component by the quantity used per kit and take the lowest result. For a pre-built kit, use the kit’s own on-hand count minus open orders. Some systems, including NetSuite, do not show this figure on the kit record, so you may need a report or connector.
Should I build kits ahead of time or assemble them when orders arrive?
Build ahead when assembly takes noticeable labor, when you need fast shipping, or when the kit needs its own lot or serial number. Assemble at order time when components also sell individually and demand for the kit is uneven.
How should returned kits be handled in inventory?
Inspect the kit first, then either restock it as a complete kit or disassemble it and return each usable component to stock. Acumatica lets you return a non-stock kit as a kit or as individual components, while a stock kit is returned as a kit and then disassembled.
Sources
- Oracle NetSuite Help Center, Kit/Package Items, no date shown, accessed 7 October 2026. docs.oracle.com
- Oracle NetSuite Help Center, Assembly Items, no date shown, accessed 7 October 2026. docs.oracle.com
- Oracle NetSuite Help Center, Assembly Unbuild, no date shown, accessed 7 October 2026. docs.oracle.com
- Oracle NetSuite Help Center, Inventory Costing and Assembly Items, no date shown, accessed 7 October 2026. docs.oracle.com
- NetSuite, NetSuite Modules Guide, 27 June 2025 (vendor). netsuite.com
- Microsoft Learn, Assembly Management in Business Central, 10 June 2025. learn.microsoft.com
- Microsoft Learn, Work with Assembly BOMs, 21 August 2025. learn.microsoft.com
- Microsoft Learn, Work with Bills of Material, 11 June 2024. learn.microsoft.com
- Microsoft Learn, Undo Assembly Posting, 21 August 2025. learn.microsoft.com
- Microsoft, Dynamics 365 Business Central pricing (US), no date shown, accessed 7 October 2026. microsoft.com
- MYOB Acumatica User Guide, Inventory Item Kits, no date shown, accessed 7 October 2026. help.myob.com.au
- MYOB Acumatica User Guide, Non-Stock Kits, no date shown, accessed 7 October 2026. help.myob.com.au
- MYOB Acumatica User Guide, Stock Kits, no date shown, accessed 7 October 2026. help.myob.com.au
- MYOB Acumatica Release Notes, Manufacturing: Kit Components Included in Inventory Planning (2024 R1), no date shown, accessed 7 October 2026. help.myob.com.au
- Acumatica, Pricing, no date shown, accessed 7 October 2026. acumatica.com
- RKL eSolutions (Sage Intacct partner that sells the software and services), Understanding Stockable vs Standard Kits, 22 July 2025. rklesolutions.com
- Fishbowl, Silly Rabbit, Inventory Kit Tricks, 21 March 2012 (vendor). fishbowlinventory.com
- Fishbowl, Bill of Materials, no date shown, accessed 7 October 2026 (vendor). fishbowlinventory.com
- Cin7 Core Help, Bill of materials (assembly), no date shown, accessed 7 October 2026. help.core.cin7.com
- Cin7 Core Help, Assembly, no date shown, accessed 7 October 2026. help.core.cin7.com
- Fishbowl, Pricing, no date shown, accessed 7 October 2026 (vendor). fishbowlinventory.com
- Cin7, Pricing, no date shown, accessed 7 October 2026. cin7.com
- Intuit, QuickBooks release notes, September 2016 (bundles), 14 September 2016. quickbooks.intuit.com
- Intuit QuickBooks Community, Inventory assemblies in QBO (Intuit moderator reply), 6 March 2023. quickbooks.intuit.com
- Intuit, Combine inventory items to build finished goods (assemblies) in QuickBooks Desktop, no date shown, accessed 7 October 2026. quickbooks.intuit.com
- Intuit, QuickBooks Online pricing, no date shown, accessed 7 October 2026. quickbooks.intuit.com
- Intuit, QuickBooks Desktop Enterprise pricing, no date shown, accessed 7 October 2026. quickbooks.intuit.com
- GS1, I am selling multi-packs or bundles. Should I assign the bundle its own GS1 GTIN?, 30 August 2024. support.gs1.org
Sherman Hsieh
Independent analysis of enterprise software — ERP, CRM and more
