Product component is used when inventory should be managed for individual components of the common product. For instance, the Kitchen product is composed of 4x Chairs and 1x Table. If the Kitchen is sold/bought, the inventory should be managed only for Chair and Table products.


Firstly, the functionality managing components for products should be activated - this is done in ''Your company''.



Add new products: Chair and Table. 


Then, add the Kitchen product and then the Chair and Table products as components by clicking on ''Add component''. It is important to mark the Kitchen product as ''service'' so that the inventory for the Kitchen is not managed in the warehouse.




Finally, the Kitchen product can be received with goods rec. note (Warehouse/Goods rec. notes).


and the stock for the Chair and Table is created in the warehouse accordingly


Specifying the purchase price


In the example above, the purchase price was specified (10 EUR for the chair and 40 EUR for the table). This is not the actual purchase price, but only the proportion. The actual one will be specified with goods rec. note or purchasing invoice.


Example: the kitchen is bought for 100 EUR. It is composed of 4x chairs (valued at 10 EUR/chair) and 1x table (40 EUR). The estimated value of the composition is 4 x 10 + 1 x 40 = 80 EUR. All chairs represent 50% of the estimated purchase price, while the table represents the remaining 50%. Since the kitchen was bought for 100 EUR, 50% is equal to 50 EUR, and since there are 4 tables included, each will have a purchase price of 50/4 = 12,5 EUR. The table will have a purchase price of 50 EUR. 


The compound (Kitchen) or individual products (table, chair) can be sold. Individual products can be received separately in the warehouse and sold as the compound (kitchen). In that case, the actual stock value of the individual products in the compound is considered.


Example:

  • 100 chairs are bought for 2 EUR/piece and 25 tables for 8 EUR/piece
  • the kitchen is sold for 200 EUR. With its purchasing value of 4 x 2 EUR (chairs) + 1 x 8 EUR (table) = 16 EUR, RVC is then 200 - 16 = 184 EUR