In retail and inventory management, Units of Measure (UoMs) play a crucial role in defining how products are bought, sold, and stocked. However, the UoM used for purchasing an item from a supplier may differ from the UoM used for selling it to customers or stocking it in your inventory. For example, you might buy pens in boxes but sell them individually, or purchase sand by the truckload but stock it in kilograms. iVendNext provides flexible tools to handle these scenarios, ensuring accurate inventory tracking and seamless transactions. This article will guide you through the process of buying and selling items in different UoMs in iVendNext.
The section below will help you understand the concept of Purchase and Sale UoM:
Stock UoM: This is the default unit in which an item is stocked in your inventory. For example, pens might be stocked individually (Nos), while sand might be stocked in kilograms (kg).
Purchase UoM: This is the unit in which you buy an item from a supplier. For example, you might buy pens in boxes (CS) or sand in truckloads.
Sales UoM: This is the unit in which you sell an item to customers. For example, you might sell pens individually (Nos) or sand in kilograms (kg).
When purchasing items from suppliers, the UoM used in the purchase order may differ from the stock UoM. iVendNext allows you to handle this seamlessly by using UoM Conversion Factors.
In the Purchase Order, you will find two UoM fields:
UoM: The unit in which the item is being purchased (e.g., Box).
Stock UoM: The default unit in which the item is stocked (e.g., Nos).
Edit the UoM field and select the Purchase UoM (e.g., Box). This is mainly for the supplier’s reference.
Define the UoM Conversion Factor to convert the Purchase UoM to the Stock UoM. For example, if 1 box contains 20 pens, the conversion factor would be 20.
Based on the quantity and conversion factor, the system will calculate the quantity in the Stock UoM. For example, if you purchase 1 box of pens, the system will update the stock as 20 pens.
Regardless of the Purchase UoM selected, the stock ledger posting will be done in the Stock UoM of the item. Ensure that the conversion factor is entered correctly to maintain accurate inventory levels.
Just as you can buy items in different UoMs, you can also sell them in different UoMs. For example, you might sell pens individually (Nos) but purchase them in boxes (CS). iVendNext allows you to manage this efficiently.
In the Item Master, under the Units of Measure section, list all possible UoMs for the item along with their conversion factors.
For example, if 1 box contains 10 pens, set the conversion factor as 10.
In the Sales Order, you will find two UoM fields:
UoM: The unit in which the item is being sold (e.g., Box).
Stock UoM: The default unit in which the item is stocked (e.g., Nos).
Edit the UoM field and select the Sales UoM (e.g., Box). This is mainly for the customer’s reference.
Based on the quantity and conversion factor, the system will calculate the quantity in the Stock UoM. For example, if you sell 1 box of pens, the system will deduct 10 pens from the stock.
Regardless of the Sales UoM selected, the stock ledger posting will be done in the Stock UoM of the item. Ensure that the conversion factor is entered correctly to maintain accurate inventory levels.
To handle buying and selling in different UoMs, iVendNext allows you to define UoM Conversion Factors. These factors help convert one UoM to another, ensuring accurate inventory tracking.
Go to the UoM Conversion Factor document in iVendNext.
Enter the Source UoM, Target UoM, and the Conversion Factor. For example, if 1 kilogram equals 2.2 pounds, set the conversion factor as 2.2.
Click the Save button to apply the conversion factors.
To ensure smooth operations when buying and selling in different UoMs, follow these best practices:
Define Clear UoMs: Clearly define the UoMs for purchasing, selling, and stocking to avoid confusion.
Set Accurate Conversion Factors: Ensure that the UoM conversion factors are accurate to maintain correct inventory levels.
Regular Audits: Conduct regular audits to verify that UoMs and conversion factors are correctly configured.
Train Staff: Train your staff on how to handle different UoMs in purchase and sales orders.
Buying and selling items in different Units of Measure (UoMs) is a common requirement in retail and inventory management. iVendNext provides flexible tools to handle these scenarios, ensuring accurate inventory tracking and seamless transactions. By defining UoM conversion factors and following best practices, you can maintain consistency across purchasing, selling, and stocking processes.
Different UoMs can be used for purchasing, selling, and stocking items.
UoM conversion factors ensure accurate inventory tracking.
Stock ledger postings are always done in the Stock UoM.
Regular audits and staff training are essential for smooth operations.