Group Items vs Inventory Assemblies in QuickBooks Desktop: Which to Use for Kits and Bundles

Before you start

• Set up every item that goes in the kit first. Intuit says a group's items must already exist before you create it.
• Group items are in QuickBooks Desktop Pro, Premier and Enterprise.
• Assemblies need Premier, Enterprise or Accountant, with inventory turned on in Edit > Preferences > Items & Inventory > Company Preferences.
• Ask one question: do you need to count finished kits on the shelf? If yes, you need an assembly.

Group item vs inventory assembly at a glance

When to use each

Use a group item when

• You sell or buy the same items together but don't track them as one product. Intuit's examples are a shipping charge paired with another charge, and a gift basket.
• You pack the kit when you ship it and don't keep finished kits on the shelf.
• You want to add a bundle to sales forms in one step.
• You're on QuickBooks Desktop Pro, which can't create assemblies.

Use an inventory assembly when

• You put the kit together ahead of time and keep finished kits in stock.
• You want QuickBooks to remind you when it's time to build more.
• You need the kit's own quantity on hand and value on inventory reports.
• The kit contains another kit. An assembly can include subassemblies and build them automatically.

Step 1: Create a group item

1. 1Go to Lists > Item List.
2. 2Open the Item menu, select New, and choose Group as the type.
3. 3Enter the Item Name/Number and a description.
4. 4In the item table, choose each item in the kit and its quantity.
5. 5Select Print items in a group if customers should see each item on invoices and other forms.
6. 6Select OK.

Step 2: Or create an inventory assembly

1. 1Go to Lists > Item List, select Item > New, and choose Inventory Assembly.
2. 2Under Bill of Materials, add each component and the quantity one kit needs.
3. 3Under Inventory Information, choose the Asset Account and set Build Point (Min) and Max.
4. 4Select OK.
5. 5To make kits, go to Inventory > Build Assemblies, choose the assembly and enter the Quantity to Build.

We cover every field in How to set up a bill of materials and build assemblies.

Switching from a group item to an assembly

• You can't change a group item's type. QuickBooks only lets you change the type of inventory, non-inventory and other charge items.
• Create a new Inventory Assembly with the same components instead.
• Two items can't share a name, so give the assembly a new name or rename the group first.
• An item used on any transaction can't be deleted. Open the old group and select Item is inactive to hide it.

Edge cases

• Intuit's articles give different limits for how many items one group can hold. Test a large group in your own file before you rely on it.
• A bill of materials holds up to 100 items in Premier and 500 in Enterprise.
• Pro can't create assemblies, but any edition can open and edit existing assemblies and the transactions that use them.
• Short on components? Lower the Quantity to Build, or select Mark Pending. When the parts arrive, open the build and select Remove Pending Status.
• To take kits apart, open the assembly's QuickReport from the Item List. Delete the build or lower its Quantity to Build, and the parts go back into stock.

Where QuickBooks Desktop leaves the work to you

• A group item has no inventory fields of its own, so there's no reorder or build reminder for the kit.
• Assembled kits have to be built before you sell them, and short components become purchase orders someone has to chase.
• When a kit's contents change, every group and bill of materials has to be updated by hand.
• If you move to QuickBooks Online, Intuit says group items become bundles, assemblies become inventory items, and bundles aren't tracked as inventory.

If a move is on the table, see How to migrate from QuickBooks Desktop to QuickBooks Online.

How Logistify helps with kit orders

Logistify doesn't create group items or build assemblies. The Sales Order Service enters customer orders for kits and parts into QuickBooks Desktop as sales orders, from email, PDF, WhatsApp, SMS, voicemail or paper. A person reviews the exceptions. The Procurement Service follows up with suppliers on open purchase orders for short components.