Selling in Different UoM
A selling price unit of measure (UOM) refers to the UOM used to price items. It’s possible to have multiple selling price UOMs for any inventory item. However, the UOM for an item may change when a customer places an order.
For instance, let’s consider an item like “Pen” which is stocked in “Nos” but sold in “Box”. Therefore, we’ll create a Sales Order for Pens in Boxes.
Step 1: Within the Item master, under the Unit of Measure section, you can list all possible UOMs for an item along with their respective UOM Conversion Factors. Update the UOM Conversion Factors accordingly. For instance, if you receive 10 Nos. of Pens in one Box, the UOM Conversion Factor would be 10.
Step 2: In the Sales Order, you’ll encounter two UOM fields:
- UOM
- Stock UOM
By default, both fields will retrieve the item’s default UOM. You should edit the UOM field and select the Sales UOM (Box in this case). Updating the Sales UOM is primarily for the customer’s reference. In the print format, the item quantity will be displayed in the Sales UOM.
Based on the quantity and Conversion Factor, the quantity will be calculated in the Stock UOM of the item. For example, if you sell just one Box, the quantity as per the stock UOM will be set as 10.
Stock Ledger Posting:
Regardless of the Sales UOM selected in the Sales Order, stock ledger posting will occur in the Default UOM of the item. Therefore, it’s essential to ensure that the conversion factor is entered correctly when selling items in different UOMs.