Learn about UOM setup, definitions, conversions, and how it all works together.
Inventory UOM is set on the Item. Products > Item > New
The inventory UOM is the unit of measure in which inventory is maintained. All inventory transactions, sales transactions, and general ledger transactions reflect movement in the inventory UOM. The inventory UOM is also the base reference for all UOM conversion ratios.
- Important: Consider your inventory UOM carefully. Once transactions have been posted using an item's inventory UOM, you may no longer change the inventory UOM for the item!
Selling UOM is also set on the Item.
Here you will specify in which UOM you sell the item. The list price should be based on this selection. By default, the inventory UOM will be used here. You will not be able to select a different UOM until you first create a selling UOM using the options found under the Conversions tab on the Item master.
To make a Selling UOM, go to the Conversions tab in the Item master and select New.
When defining an alternate item UOM, you are presented with the following options:
By default the inventory UOM will be displayed here. However, you may select an alternate UOM. If an alternate UOM is selected, then the per UOM will be the inventory UOM.
Enter a value for the source UOM to be used in the conversion ratio for the alternate item UOM.
By default the inventory UOM will be displayed here. However, you may select an alternate UOM. If an alternate UOM is selected, then the source UOM will be the inventory UOM.
Enter a value for the per UOM to be used in the conversion ratio for the alternate item UOM.
Specify whether this alternate item UOM may be maintained in fractional quantities. Fractional quantities will be rounded up to the nearest whole number. If not selected, transaction quantities using this alternate item UOM may not be maintained in fractional quantities.
Available TypesOnce a source or per UOM has been specified, you may select one of the available UOM types. Once a UOM type has been used, you may not create a conversion ratio for it again—with the exception of the selling UOM, which may be defined multiple times for a single item.
Type of Conversions:
Alternate Capacity
The alternate capacity UOM should be used to provide an alternate UOM for viewing inventory details. For example, a sales manager may be satisfied looking at a group of items normalized to their selling or inventory UOM, but a production manager may need to look at the same items normalized to a production UOM—say, cubic feet (CuFt). The alternate capacity UOM has no impact on BOMs. It is used solely for capacity planning and sales analysis purposes.
In capacity planning and sales analysis reports, the capacity UOM enables you to make apples-to-apples comparisons of items that use different inventory UOMs. For example, let's say that item A is a carton containing 24 item B's—and that you sell both items. However, item A and item B use different inventory UOMs. Item A is measured by the (CASE [24]), and item B is measured by (EACH). By utilizing the capacity UOM, you have the ability to track total load and total sales for item B—even though the inventory UOM for item A obscures the quantity of item B's contained therein. If, when you query the database, you request data to be displayed in capacity UOMs, then the system will normalize the quantities of item A to (EACH), allowing you to see the total quantity of item Bs. The capacity UOM has no impact on BOMs. It is used solely for capacity planning and sales analysis purposes.
Material IssueThe material issue UOM defines an alternate UOM for use when creating BOM items. On the BOM Item screen, you have the ability to select an issue UOM. This issue UOM is used whenever the specified component item is issued to a work order. If you define a material issue UOM on the Item master, then that UOM will be available for selection whenever the item is used in a BOM.
SellingIf an item is sold, its list price will be based on the selling UOM. While the selling UOM may often mirror the inventory UOM, in some scenarios the two UOMs will be different. For example, cans of soda may be stocked in inventory as individual units (EACH), but sold by the case (CASE24). In this example, inventory transactions will be recorded using the inventory UOM (EACH), but all pricing—including list price and pricing schedules—will reflect the selling UOM (CASE24). An item may also have multiple selling UOMs (for example SIX-PACK, CASE24, PALLET, etc.). You specify the selling UOM you want to use at sales order entry time.
UOM in the Item Source
Purchase > Item Source > New or List.
Inventory/Vendor UOM Ratio
Specify the ratio between inventory and vendor UOM. For example, if you store an item in single units, but a vendor sells you the item in cases of 12, then you would enter "12" here to represent the 12:1 inv./vend. ratio. If the ratio is 1:1, then enter "1" here. When an inv./vend. ratio is specified, the system allows you to purchase items using the vendor's UOM. However, when the items are received, the system will automatically convert to your inventory UOM. This same conversion logic flows throughout the system—whether you are viewing inventory availability or running material requirements planning (MRP). Your inventory will always be represented in your inventory UOM, regardless of the vendor UOMs specified on any open purchase orders.
BOM Conversions
Issue UOM
Specify the UOM you want to use when issuing item quantity to work orders. You may also select a global conversion ratio here. Global conversions have the label Global appended to them. Unless you specify an alternate UOM, the inventory UOM will be used by default.
Substitutes
Products > Item > Edit > Relationships tab > Substitutes radio button > New
Substitute/Parent UOM Ratio defines the ratio between the root item's inventory UOM and the substitute item's inventory UOM.
For more information:
https://manuals.xtuple.com/refguide/current/index.html