What is a kit ? How does it differ from PTO ?
A kit is a PTO item which consists of a standard list of mandatory components (or included items) i.e standard bills of material which you pick, pack and ship when you process a customer sales order for that item. A kit is similar to a pick–to–order model because it has shippable components, but it has no available options to choose like PTO model and customer places a sales order directly by its item code number and not by using the configuration window (selecting from various options).
In Oracle Inventory module, kit item type and kit item template are pre-defined by Oracle and are supplied along with software.
An example of a product kit is a motor car maintenance kit which consists spanners, jack etc.It is quite possible that each kit component is in different stock keeping unit( SKU). The word ‘Kitting’ is used when you make a kit after picking it's components from subinventory/ies and pack it. For example making a bundle of a kit components is called kitting. In short, kit is a bundle of various mandatory components which a merchant /manufacturer sells as a master product.