Right now we have two inventory items (call them SKU1 and SKU2) that are bundled together to make a customer facing product (SKU3). We did this because SKU1 used to be leveraged for multiple products, but that is no longer the case. Now I would like to make SKU1 and SKU2 inactive and turn the bundled item, SKU3, into a single inventory item.
Let's say that my current state is:
| Item | Current Inventory | Purchase Price | Sale Price | Product Type |
| SKU1 | 10 | $10 | $15 | Inventory Item |
| SKU2 | 15 | $20 | $30 | Inventory Item |
| SKU3 | | | $45 | Bundle (SKU1+ SKU2) |
My desire would be to keep the SKU3 number for the new Inventory item so that this is transparent to the customers.
- Will there be any issues retiring the "Bundled SKU3" and creating an "Inventory SKU3" item? I'm assuming no since Bundled items are not "real".
- How would I take care of the fact that SKU1 has 5 fewer units in stock than SKU2? Should I just purchase 5 more SKU1 before doing any consolidation or is there another way to handle it?
- How would I transition the inventory for SKU1 and SKU2 the new "Inventory SKU3"? My initial thought is to:
- Make the "Bundled SKU3" inactive
- Buy 5 more SKU1
- Create the "Inventory SKU3" with an initial inventory of 15 units
- Make an inventory adjustment down to zero for SKU1 and SKU2
- Make SKU1 and SKU2 inactive
- Since all items are in the same COGS account, I do not think I would need to make a journal entry
- Would it be better to sell all of the current inventory as we have been, then adopt the new system once that occurs?
- I realize that there are probably multiple ways to do this, but I'm just looking for advice on how to approach it so I don't have an improper P&L.
Thanks!
