Settle provides flexible support for businesses that sell product bundles, which are groupings of two or more items sold together. These items can include finished goods as well as components such as packaging.
This document focuses on how Settle handles Kit to Order bundles, a common setup where the bundle is created as a standalone item in sales and accounting systems without detailed component inventory tracking for the bundle itself.
Kit to Stock Bundles are those that must be pre-kitted in order to be sold. For more info on Kit to Stock Bundles, see Bills of Materials (BOM).
Understanding Kit to Order bundles
In a Kit to Order scenario, the bundle is treated as a single, distinct item. For example, a Summer Bundle might be sold, but the inventory and sales tracking are managed separately for the bundle and its individual components (i.e. SPF 45 sunscreen, SPF 60 face sunscreen, a decorative bag, and an insert).
Settle helps businesses track bundle sales while ensuring that the cost of the underlying components is properly reflected in financial reporting.
Settle's solution for Kit to Order bundles
To be successful with Kit to Order Bundles in Settle and have proper handling of inventory, sales, forecasting, and landed costs, ensure the following:
1. Bundle setup
Ensure there is a Catalog Item in Settle to represent the bundle mapped to the appropriate Sales Channel SKU.
A Bill of Materials (BOM) is created for the bundle, specifying the component items and their quantities.
The BOM Type is set to Kit to Order.
2. Sales Order processing
When a sales order is created for the bundle item:
The bundle is recorded as the item being sold on the sales order.
Component items defined in the BOM are used to calculate the bundle’s cost and profitability.
For example, if a Summer Bundle contains:
2 units of SPF 45 sunscreen
1 unit of SPF 60 face sunscreen
1 decorative bag
1 insert
These component quantities are used when calculating the bundle’s cost.
3. Landed costs
When a Catalog Item has a BOM with Type = Kit to Order, Settle calculates the landed cost of the bundle by summing the landed costs of the component items multiplied by their quantities in the BOM.
This allows businesses to accurately evaluate the true cost and profitability of bundle sales.