Unit of Measure (UOM)

January 31, 2023 13:37

What is UOM?

UOM now allows you to procure your items and sell them either as a box/bundle or individually. For instance, you may want to buy a crate of beer bottles and then sell the entire crate or a single beer bottle to your customers.

Units of measure are helpful to handle an item no matter the size, weight, and quantity it has. In fact, a items can be purchased into various units (piece, box) and sold in the same unit or on one of them. retailcloud provides an intuitive way to manage units of measure.

Examples of measurement units could be a box, a bottle, or a dozen. When the item is purchased from the vendor, quantity 1 will represent the total number of units (if the retailer buys vases in quantity 12 and sells them in quantity 1, the purchase order would be placed for quantity 1 and then receive at quantity 12 (at a per item cost of 1/12th of the cost of the full shipment of 12)).

Measurement units are added at the item level so that when the item is purchased from the vendor, units are correctly reflected as to how many are purchased, and when the item is sold at the store, units are also reflected correctly.

Creating UOM

Go to Catalog → Unit of Measure

Creating a unit of measure in Console Portal is a straightforward process. You can assign a unique measurement name to your custom unit, provide additional information such as abbreviation and Number of Units. This allows you to create a seamless and intuitive experience within the application, as you can work with units that align precisely with your domain or industry-specific requirements.

Click on the "Add Unit" button to create a new unit.

UOM Add.png

Click on the "Edit" to modify the UOM.

UOM Modify.png

Here we need to provide the details such as

Measurement Name: Enter a unique unit of measure name that clearly represents the measurement (e.g., litre, kilogram, hour).

Number of Units: The quantity of items or products measured using a specific unit of measurement.

Abbreviation: Provide a corresponding abbreviation for the unit (e.g., L, kg, hr).

Save to apply it to your unit of measure.

How to Assign UOM to an Item?

Go to Catalog→ Items → Select the item you need to add UOM
Under the Item main Info, navigate to the 'Unit of Measure field.
Click on the UOM dropdown and select the UOM
Hit Save

UOM in Receiving

When receiving items with UOM assigned, the system will automatically calculate the units to be purchased from the vendor based on the UOM.

UOM of the items can be updated from the receiving screen. From the drop-down selection, select the UOM that the item is received in from the vendor (an example being pencils - purchased from the vendor in quantity 24, but sold at the store as individual pencils). You would select the Unit of Measurement set up representing that purchasing 1 Unit from the vendor will be broken down to 24 items at the store item level.

The cost of the individual item is based on the quantity (if 1 unit represents 24 items, then the cost when you sell one of the items is 1/24th of the cost indicated here), but the Selling Price is entered at the per item amount (not quantity 24).

In summary, using 24 as an example: The cost is for all 24 items, and the selling price is for 1 as sold in the store. When the item is sold the cost will be 1/24th of the cost entered here.

Click here for details: Inventory Receiving

UOM in Purchase Order

The system provides for automatic conversion between stock units and purchase order units. For example, if an item is stocked as individual pieces but purchased by the dozen, based on the UOM used, the system will automatically calculate the purchased quantity & cost on the purchase order.

By filling up the Qty. Ordered under PO for an items as "1", it means you are ordering 1 Case, which is 12 bottles and the inventory will be increased by 12 after the order is received. The cost would be calculated depending on what you define on the item page. For instance, if the cost of a single beer bottle is $5, then the system would set the cost of the case of beer as $60 ( 12 x $5).

To learn more about purchase orders, please refer to Purchase Orders

UOM in Sales

The inventory of this unit of measure will be managed at the item level only. It means that when you sell a glass of wine(Child SKU), it will deduct the inventory of the associated individual item (MasterSKU).

Using Units of Measure

Inventory Balance Report: Shows how many Units, not individual items

Example: IBR will show 3 (3 Cases in stock)

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