Bundling

through the Bundle Master Maintenance conversation.  Once established, each bundle has effectivity dates, a description, and components.  A bundle's description appears on all conversation screens where the bundle is used.  It also appears on invoices for the bundle.

A bundle's effectivity dates (start and end dates) define when it can be used.  A bundle can be manually activated or deactivated at any time.

The bundle components are the parts that constitute the bundle.  There is no limit on the number of bundled parts that can be entered.  Each component has its own effectivity dates, so that the bundle's composition may be changed over its lifetime.

Each component is assigned a quantity unit of measure, pricing unit of measure, quantity per bundle, price, and a relation.  A relation affects how inventory is reserved when a sales order is created with a bundle part.  There are three types of relations.

·      A relations.  At least one component must be assigned to an A relation.

No more inventory can be reserved for a component than has been reserved to the A relation.

If more than one A relation exists the specified quantity reserved for each relation must be equal.  The actual quantity reserved is determined by the component with the least quantity available.

·      B relations.  As with A relations, B relations must be reserved equally.  The quantity reserved cannot exceed the ceiling set by the A components.

·      Z relations.  The default value.  Z relations do not have to be reserved equally but cannot exceed the ceiling set by the A components.

Ordering Bundles

When a bundle is ordered in sales order entry, a line is created for the bundle part.  This line is saved as the bundle header record.  A line is also created for each component.  The order quantity for each component line is the component's order quantity per bundle from Bundle Master file multiplied by the number of the bundles ordered (e.g., two cords per bundle times three bundles ordered equals six cords ordered).  Bundle component lines are displayed only on the sales order recap screen and cannot be maintained.

Note:    Bundles cannot be ordered through the EDI (Electronic Data Interchange) module.

Reserving Inventory for Bundles

Two rules apply to reserving inventory for bundles:

Rule 1 - No more can be reserved for a component than has been reserved for the A type components.

Rule 2 - Components with the same relation must be reserved in equal quantities.

In the case of partially shipped backorders, the amount that can be reserved is the quantity of A components that have been shipped plus the quantity of A components that have been reserved, less the quantity of the component that has already been shipped.

The inventory reservation formula is:

(Type A Original Ship Quantity + Type A Subsequent Ship Quantity +

Type A Reserved Quantity) - (Component Original Ship Quantity +

Component Subsequent Ship Quantity) * Quantity Per Bundle =

Amount that can be reserved

For example, an order of 5 bundles has the following structure and available quantities:

Suppose bundles have been ordered.  Component 1 is an A component that has enough inventory to be fully reserved, but component 2 is also an A component, and only has enough inventory to reserve four bundles.  Therefore, component 2 sets a ceiling of four bundles that can be reserved.  Four bundles-worth of components 1 and 2 are reserved and one is backordered, even though component 1 has enough inventory to be fully reserved (Rule 1).  The same applies to component 5.

In the case of components 3 and 4, because  they are both B components they must be reserved in equal quantities (Rule 2).  Because only enough inventory is available to reserve three bundles-worth of component 4, only three bundles-worth of component 3 can be reserved.

Where more inventory comes in to allow shipment of the backordered bundles, the amounts to reserve are determined in accordance with the inventory reservation formula.  Component 1 will have three items, or one bundle, reserved.

To determine the reservation  quantity for component 3, the formula is used as follows:

Type A Originally Shipped (4) + Type A Subsequent Shipped (0) +

Type A Reserved (1) - Component 3 Originally Shipped (3) +

Component 3 Subsequently Shipped (0) = 5 - 3 = 2 bundles can be shipped.

This is multiplied by the quantity per bundle of 5 to give 10 of component 3 that will be reserved.

Bundle Pricing

The price of a bundle is the sum of the component prices on the Bundle Master file.  The bundle price overrides the component's warehouse balance price for all bundle sales.  The bundle unit price may be entered on the sales order multi-line screen.  The components are priced using pro rata pricing.  With pro rata pricing, each component price is a percentage of the entered unit or extended price, the percentage being directly proportional to the component price on the Bundle Master file.  Customer discounts do not apply to bundle line items.

For example, assume the bundle unit price entered is $400.00

Shipping/Billing

When shipping bundle parts, please note the following restriction.  You cannot ship different quantities for "A" bundle components within the same bundle part.  The same applies for "B" bundle components (i.e., all "A" & "B" bundle components must be shipped equally in their ratio to the bundle master record quantity).

Open items are not created for the bundle header record.  Open items are created for each component line.  Invoices list both the bundle name and components.

Note:    Bundle component sales order lines appear as one line on the packing slip (i.e., the picker document).

Considerations

A bundle is a collection of parts, all grouped under one title, the bundle part.  As such, the bundle part is a non-tangible part and requires its own part type.  The bundle part cannot be picked, shipped, or billed and is designed specifically for the Order Processing and Sales Analysis modules.  A bundle header record is created on the Sales Order Line file to hold the bundle quantity ordered, the bundle price, shipped quantities, and to define the order lines that follow as part of that bundle.  The bundle header record is for informational purposes and no open item is created for it.

Bundle component lines are treated as normal sales order and open item lines.

A bundle created in Bundle Master Maintenance creates a part on the Item file that cannot be maintained by Part Master Maintenance.