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Packaging Materials - How to Handle

in Ask A Guru 5 comments

Hello!

For many of our items we use Kit/Assemblies. These have 3-4 components (Inventory Items).

We're having inventory issues with the clamshell case that the kits are packaged in for retail. Currently those clamshells are non-inventory items, and we sometimes run out, because we don't "stock" in inventory.

Our thought is to convert these clamshells to Inventory Items, and then include as a component on the kit. This would allow us to see stock, pull during kitting, and reorder based on usage.

It will have a negative side affect of adding the cost of this packaging to COGS instead of expensing to a packaging account. Not a killer, but not ideal.

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