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Why Don’t My Kits (Bundles) Appear in the Inventory Valuation Report?

Heidi Hatch avatar
Written by Heidi Hatch
Updated over 2 weeks ago

Overview

In Luminous, a kit (sometimes called a “bundle” in ecommerce platforms) is a virtual product. A kit does not physically exist as an inventory item and does not carry its own cost or valuation. Instead, all cost and inventory value belongs to the component SKUs that make up the kit.

Important Note:
Some valuation reports historically displayed kits with incorrect average unit costs. This happened because kits are not designed to store or represent cost values.


General Rule

Kits should not appear as standalone inventory assets.

Luminous kits:

  • Do not hold physical stock

  • Do not have their own cost layer

  • Do not contribute directly to inventory valuation

The “value” of a kit is simply the sum of its components, which do carry inventory and cost.

This principle aligns across platforms like:

  • Shopify (virtual bundles)

  • Amazon MCF bundles

  • Most ERPs unless explicitly configured for manufacturing workflows

Therefore, the inventory valuation report should include:

Component SKUs
The kit itself
Any roll-up or duplicated cost for a kit


Exception: Pre-Assembled Products Using a BOM (Bill of Materials)

1. Finished-Goods Kits (Pre-Assembled Products)

If you pre-assemble a product and store it as its own finished item (e.g., a “Holiday Gift Box”), then:

  • Component SKUs are consumed

  • A finished-good SKU is increased

  • The finished-good SKU gains its own cost and valuation layer

In this case, the finished product should appear in the valuation report because it is real inventory with its own COGS.

How This Works in Luminous

Luminous does not perform this workflow through “kits.”

To create a pre-assembled product with its own cost and inventory valuation, you must:

✔ Create a separate product in Luminous
✔ Build a BOM (Bill of Materials)
✔ Use the assembly process to consume components and produce a finished good

This workflow creates a true inventory asset with its own valuation layer.

Why Kits Differ

  • A kit in Luminous is always virtual

  • Kits do not consume inventory

  • Kits do not create finished goods

  • Kits do not gain cost or appear in valuation reports

If you want a product to behave as real inventory, the BOM + Assembly workflow is required—not the kit feature.


Additional Clarification

Some manufacturing ERPs allow parent bundle items to carry cost or use cost-averaging at the parent level.

Luminous does not support this for kits.

Only products created and produced through the BOM/assembly process will hold valuation.


How This Applies in Luminous + Shopify

Inside Luminous:

  • Kits are virtual products

  • Kits have no inventory and no value

  • Only component SKUs carry inventory and cost

Thus, your inventory valuation report will correctly show:

Component-level valuation
No valuation for kit SKUs

If kits appeared historically in valuation with incorrect unit costs, this is expected behavior when a system treated a virtual kit as real inventory.


Summary

  • Kits in Luminous are virtual and are not included in valuation reports.

  • Kits do not carry cost, inventory quantity, or valuation.

  • Component SKUs always hold the cost and valuation.

  • To track a pre-assembled product as inventory, create a finished-good SKU and use BOM + Assembly.

  • Finished goods created via assembly do appear in inventory valuation.

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