Unit of Measure, Unit Description & Qty per PO Unit

Updated August 5, 2024

Applies to : Order Entry, Purchase Orders, Finished Good Items

NOTE: This method of describing Units per Measure is different that the Custom Units of Measure (Custom UOM).

The system allows the user to configured the system to create a Purchase Order that has a different Units per Package then what is required when creating an Customer Order.

For example:

The User has a Finished Good Item (Mugs) that it sells to their customer in packs of 5. However their supplier only sells Mug to the User in boxes of 24.

Finished Good Item 

When setting up a Finished Good Item there are 2 fields to consider : Unit of Measure and Qty per PO Unit.

This allows the user to more actually describe how many of the Finished Good Item will be multiplied by the Units Ordered in an Finished Good Order Component.

Order Entry

The Qty per PO Unit becomes the Quantity per Unit and the Unit of Measure remains the same on the Finished Good Component Information screen.

For example; 

Unit of Measure = Package

Qty per PO Unit = 5

Units Ordered = 2

Total Deducted from Inventory when shipped = 10 units.

Purchase Order

The Finished Good Item can be set up to receive a different number of Units based on the enters in the PO Info Button.

For example in the PO Info Button;

Purchase Unit Description = per Box

Purchasing Costing Method = Per Each

Purchasing Factor = 24

When creating a Purchase Order for this Item the system will multiple the Quantity (14) by the Purchasing Factor (24).

When the item is Received system will add 336 (14 x 24) into inventory.