WM&D – Assembly and kitting

This article describes kitting from a sales perspective. Another article will be published later that deals with the execution of the kitting and value added services(VAS).

Assembly and Kitting is a great alternative for companies that are not equipped with finished goods warehouse facilities or cannot afford the capital expenditure of setting up a finished goods warehousing facility. Your company can take advantage of the services that are necessary to forward a product to market quickly. Assembly and Kitting support the assembly of products in boxes, shrink wrap, blister, or clamshell packaging.

Some companies require assistance preparing their product for shipment and display. There is a better chance of selling your product if it is accurately packaged and prepared for market. There is nothing worse than excitedly opening a new item just to find that pieces are missing from the package.

An example of how Assembly and Kitting could work:

You have several items that belong together in a package. In an assembly line, each individual in the line subsequently adds another component to the package in a specific order. This ensures that everything is included in the package. At the end of the assembly line, an individual conducts a quality review. Part of that review could include weighing the package. If the weight of the package is accurate, then all the parts have been included; no more no less. If the weight is incorrect even by a couple of ounces, then it means that either a component is missing or there is an additional part.

Assembly and Kitting allows the warehouse to build an order for shipping then distribute or store it. Getting the distribution center to kit your products not only prepares the items for distribution, but may also save your company money, because you do not have the labor costs and capital expenditures to deal with.

Kitting and sales order

One of the requirements is to show the kitting structure in the sales order form in Dynamics AX. Kitting stipulates that there is a hierarchy of items, where only the bottom level is real items that are purchased, stocked and priced, while the upper levels are phantom BOM items. When a customer orders a product, the customer only need to relate to the uppermost BOM-level, while the warehouse workers are picking the actual contents of the kit.


Explosion of a phantom BOM items on a sales order is built into the order line processing procedure, the procedure that takes place every time a sales line is inserted, deleted or updated. A parameter field “Kitting” is added to the item table (it is available for BOM and phantom items only). This parameter defines if a BOM item is exploded on sales line processing. Moreover, value added service (VAS) orders is automatically created upon adding such kitted items to the sales order, in order to secure that the items will be packed accordingly. The VAS orders will also ensure that we always have a combined delivery (that we cannot deliver one of the sub-lines, but must deliver the entire kit).

Explosion of BOM item is performed on all BOM levels and all the phantom BOM levels create sales lines marked as a kit, while real items create normal sales lines. The relation between levels for the Kit sales lines is established via a new reference field on sales line. When using the sales order screen, the order looks just like the normal sales order screen:

By clicking on the “Show kit lines”, all lines are shown inside each kit:

The bottom-level sales lines (real stocked items) should be editable only in terms of unit price, line discount amount and multiline discount amount, the rest: quantity, delivery dates, etc. should be derived from the uppermost line. The structure of BOM cannot be manually adjusted: sales lines that are sub levels of the top phantom BOM cannot be deleted manually.

Price and discount calculations

Price amounts and discount amounts are set on the lowest level of BOM only. The price on the upper level is always the sum of the sub lines.


Calculation direction

Sales quantity

Calculated downwards

Unit price

Calculated upwards

Discount amounts

Calculated upwards

Discount percent’s

Calculated downwards

Line amounts

Calculated upwards


Inventory transactions to kits

The final kits do not have inventory transactions. The reason for this is that kits are “virtual items” that do not need a physical picking. It is the sub-components that are picked. Kits are still being packing slip updated and printed on the invoice.

Setting up Assembly and Kitting

This section describes how all the Assembly and Kitting related tables are related to setting up Assembly and Kitting and how they influence the way Assembly and Kitting is processed.

The Kitting form letter setup form

The display of the kitting structure can be shown per item and customer on confirmation, packing slip and invoice. To handle this, a new form Kitting form letter setup is available. This form is following the standard “Table, Group, All” Microsoft Dynamics AX pattern. Here the user can specify if the kitting structure is printed on confirmation, packing slip and invoice for a particular customer.

The form is available under Warehouse Management and Distribution > Setup > Delivery > Kitting form letter setup.

If the Show kitting structure is enabled, the form letter will show the kitting structure as follows:

Assembly and Kitting FAQ

This sections covers information related to Assembly and Kitting, and is described as a FAQ.




I have a kitting line, but I don’t have any inventory transactions associated to it. Why?

All exploded kitting lines do not have any inventory transactions. It is only the real items that have inventory transactions. All statuses on the kit are based on the containing lines.

Why can’t I change sales price on a kit.

Price on a kit is based on the prices on each included item. To change the price of a kit, you need to change the prices on the included items.

How do I set up an item as a kit?

A kit needs to be a BOM. The flags ‘Phantom’ and ‘Kit’ also need to be enabled. (References tab page in the Item details form)


In addition, the kit item needs to have a valid BOM associated to the kit.

How do discounts work on kits?

In AX you have 2 types of discounts. Discount amount and percent. Discount amounts need to be set on the separate kit lines, while percent can be set on the kit itself.

How do taxes work with kits?

Taxes are calculated on the kit lines, and not on the kit itself. The taxes and VAT is therefore calculated like standard AX.

I see on the confirmation and invoice that only the kit contains the sales value, and the lines are zero.

Yes. This is how kitting works. The sales value and prices are placed on the kits and not on the kit lines. This is also the perception of the customer when he receives the form letter.

Can I manually add and remove kit lines?

No. Kit lines cannot be manually added or removed. The reason for this is that kitting is supported in a multilevel structure.

How can I see the kit-lines on my sales order?

You can see the kit lines by clicking on the button Show kit lines on the sales order form.

How can I take out statistics on sale of a kit?

The customer invoice will contain the information required. Therefore use information from here when creating additional statistics/reporting.

I see I get a total available and an ATP date on kits. How is this possible?

The total available is calculated on the basis of the kitting lines. The most restricting kit line will decide the total available on the kit-header. The ATP is also calculated, so the ATP date of the most restricting item is shown.

Can I part deliver a kit?

Yes, by using the deliver now column, and then starting the picking posting. But it is only possible to part deliver whole kits. You cannot part deliver sub-items in the kit. The automatic order processing will only try to deliver the entire line.

How is returns and credit notes handled for kits ?

Since kitts are items that do not have inventory transactions, all returns must be done on the kit-lines. When creating a return on kitting items, it will only be the kit-lines you can take a return on.


7 thoughts on “WM&D – Assembly and kitting

  1. Hi Kurt,
    Is there nowhere to do this with the out of the box AX2012?
    At the moment I’m working with a retail company and we don’t produce any product, “all” we want is to group a couple of products into one. So when ordered the customer will only need to remember one product. When on the sales line we need it exploded so the warehouse can pick all the relevant products.


    • Hi Søren. Nice to hear from you again 🙂 We worked together at Tvilum. AS you remember, Stadard AX have a BOM-explosion feature. Thats pretty much it. I have created a “revisided” blog post on this matter for AX 2012, but the story is the same as AX 2009. Let me know if you want some more information about the AX 2012 Kitting solution that we have as a stand-alone solution.


      • Hi Kurt,

        We found that the kitting solution matches our requirements and wanted to check it.
        Can you provide more info on how it can be implemented?

        Best Regards,
        Michael Brown


    • Hi Junaid. The scenario for AX 2012 is exactly the same as for AX 2009. But there are some improvements, and that is in AX 2012 you are allowed to remove Kit-lines. But the kitting solution for AX 2012 is not planned to be sold as a module og Product, but as a customization. Let me know if you are interested.



  2. Hi Kurt,
    I really like this solution for AX kitting. Do you have this working for AX 2012? Also do you have this solution available to purchase?



    • Hi Martin. I created the kitting solution you see here for AX 2009, and the solution was embedded into To-Increase WM&D solution. So it is currently To-Increase that has the IP-rights to the kitting, and it is up to To-Increase to create a AX 2012 kitting feature. For more information, you are welcome to contact To-Increase.


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