Inventory Item vs. Assembly Item Cheatsheet

Contents
Inventory Item

  • Can be a finished good, raw material, or shipping supply
  • Is rarely a WIP item
  • Cannot be changed to a BOM / Assembly item
  • Will have a PO shipping method of anything other than “manufactured item”
  • Needs planned PO cost, weights, dimensions, HTS code, and MSRP
  • Preferred vendor, vendor quote, and purchase contract required
  • Item purchased via a purchase order
  • ILP should have a matching preferred item vendor and item location plan vendor

NOTE

  • Is the item sold to a customer?
    • Yes, then it is a finished good with a MSRP
    • No, then it is a raw material or shipping supply with no MSRP
True Assembly Item

  • Can be a finished good, raw material (aka sub-assembly), or WIP item.
  • Is rarely a shipping supply
  • Will always have the PO shipping method of “manufactured item.” Any freight and duty will be calculated on the individual components
  • Finished good assemblies will need weights, dimensions, HTS code, and MSRP
  • No planned PO cost, vendors, vendor quotes, or purchase contracts should be set up
  • Labor and overhead will need to be added as necessary
  • Item created via a work order
  • ILP should only have the supply location filled in, no preferred item vendor or item location plan vendor

NOTE

  • Is the item sold to a customer?
    • Yes, then it is a finished good with a MSRP
    • No, then it is a raw material or WIP with no MSRP
Purchased Assembly Item

  • Can be a finished good or raw material.
  • Is rarely a shipping supply or WIP item
  • MUST always have the “use planned PO box” checked
  • Will have a PO shipping method of anything other than “manufactured item”
  • Needs planned PO cost, weights, dimensions, HTS code, and MSRP
  • Preferred vendor, vendor quote, and purchase contract required
  • No labor and overhead added.
  • BOM must have a placeholder line (WYLBOMPH or SULBOMPH)
  • Item purchased via a purchase order
  • ILP should have a matching preferred item vendor and item location plan vendor

NOTE

  • Is the item sold to a customer?
    • Yes, then it is a finished good with a MSRP
    • No, then it is a raw material with no MSRP

Download

NetSuite Inventory Item vs. Assembly Items Cheatsheet (docx)

Updated on December 14, 2023
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