Use kitsets to define an inventory parent item that is made up of multiple component items. Kitset parents can be held in inventory and made-to-stock, or they can be assembled while entering a sale transaction — for example, on the Sales Order Entry or AR Invoice Entry forms.
You can use kitsets to set up parent items with a single-level component structure. The components cannot be kitset parent items. If to set up more complicated structures to support a business environment which leans more towards manufacturing, you should use the Manufacturing module.