Differences between Bills of Material and Kitting items

2 minute read time.

What is a Bills of Material item (BOM)?

  • A Bills of Material item is an item that can be assembled or repackaged inventory items to create a supply of "master item" to sell.

 What is a Kitting item?

  • A Kitting item is an item that can be set up as collections of items that are priced and sold as a single item.

 Both a Bill of Material item and a Kitting item can be setup in I/C Items and Price Lists.

This is an example in our sample data.  In the screenshot below, it shows that 1 unit of #Componet Item 1 ( Ea.) and 1 unit of #Componet Item 2 ( Ea.) are used to assemble to make 1 unit of #MASTER Item ( Ea.).

However, in order to create/assemble #Master Item, users need to do an assembly in I/C Assemblies in I/C Transactions folder.

Let’s do an assembly together.


By posting this transaction, it will increase 1 unit of #Master Item in inventory and decrease 1 unit of #Componet Item 1 and also decrease 1 unit of #Componet Item 2. Then, users can sell #Master Item in O/E Order Entry (selling the master item, not the individual component items).

However, for a Kitting item, it’s different. Users don’t need to create an IC assembly transaction in order to create the Kitting item.

In order to define a Kitting Item, users need to create the kitting item first in I/C Items. Since this is a kitting item, the Costing Method has to be User-Specified because it’s a non-stock item and it won’t keep any inventory on hand. Also the “Kitting Item” checkbox has to be checked in I/C Items.

Then, go to Kitting Items in I/C Items and Price Lists in I/C Transactions folder to define the Kiting item.


Kitting items do not require users to do any assembly. Users can go directly to O/E Order Entry to sell the kitting item.  After the O/E shipment of the kitting item, 1 unit of A1-103/0 ( Ea.) and 1 unit of A1-310/0 ( Ea.) will be decreased in inventory. Since Kitting item is a non-stock item, therefore, it doesn’t keep track of inventory for the Kitting item (in this case, #Kitting item). 

Hope these clarify the differences between the Bills of Material item and the Kitting item.