Overview

This article gives you an overview of purchasing in different UOMs in iVendNext, including how to set up UOM conversions, manage stock postings, and streamline procurement.

1. Understanding Units of Measurement (UOM)

In retail, items are often purchased and stocked in different Units of Measurement (UOM). For example, you might purchase pens in boxes but stock them individually as numbers (Nos), or or buy rice in sacks but stock it in kilograms (kgs). iVendNext allows you to purchase items in one UOM while stocking them in another, ensuring flexibility and accuracy in your procurement and inventory management.

1.1 What is a Unit of Measurement (UOM)?

• A UOM is a standard quantity used to measure and track items. Common UOMs include numbers (Nos), kilograms (kgs), liters (L), boxes, and more.

• In procurement, the Purchase UOM (the unit in which you buy items) may differ from the Stock UOM (the unit in which you store items).

1.2 Why Purchase in Different UOMs?

• Supplier Preferences: Suppliers may sell items in bulk (e.g., boxes, crates) while you stock them individually.

• Inventory Management: Purchasing in larger UOMs (e.g., trucks of sand) can reduce costs, but you may need to stock items in smaller UOMs for operational efficiency.

• Flexibility: iVendNext allows you to handle these differences seamlessly, ensuring accurate stock tracking and cost management.

2. How to Purchase in Different UOMs in iVendNext

Purchasing in different UOMs involves a few simple steps. Let’s walk through the process using an example:

Scenario: Purchasing Pens in Boxes but Stocking Them Individually

• Stock UOM: Numbers (Nos)

• Purchase UOM: Boxes (1 Box = 20 Nos)

Step 1: Set Up the Item Master

• Go to the Item Master and select the item (e.g., Pen).

• Under the Purchase section, set the Default Purchase UOM to Box.

• Ensure the Stock UOM is set to Nos.

Step 2: Create a Purchase Order

• Navigate to Home > Buying > Purchase Order.

• Click on Add Purchase Order to create a new PO.

• Select the supplier and add the item (Pen) to the Items table.

Step 3: Edit the UOM Fields

• In the Purchase Order, you will see two UOM fields:

• UOM: This is the Purchase UOM (e.g., Box).

• Stock UOM: This is the default UOM from the Item Master (e.g., Nos).

• Edit the UOM field to Box (the Purchase UOM).

Step 4: Set the UOM Conversion Factor

• Enter the UOM Conversion Factor to convert the Purchase UOM to the Stock UOM.

• For example, if 1 Box = 20 Nos, set the conversion factor to 20.

• The system will automatically calculate the Stock UOM Quantity based on the Purchase UOM and conversion factor.

• For example, if you order 2 Boxes, the Stock UOM Quantity will be 40 Nos.

Step 5: Save and Submit the Purchase Order

• Once all details are filled in, click Save to create the Purchase Order.

• Review and Submit the PO to finalize the purchase.

3. Stock Ledger Posting in Different UOMs

3.1 How Stock Ledger Posting Works

• Regardless of the Purchase UOM, the Stock Ledger will always post quantities in the Stock UOM (e.g., Nos).

• This ensures consistency in inventory tracking and reporting.

3.2 Example: Stock Ledger Posting for Pens

• Purchase UOM: 2 Boxes

• Conversion Factor: 1 Box = 20 Nos

• Stock UOM Quantity: 40 Nos

• The Stock Ledger will reflect 40 Nos of Pens, even though the purchase was made in Boxes.

4. Setting UOM Conversion Factors in the Item Master

To streamline the process of purchasing in different UOMs, you can set default UOM Conversion Factors in the Item Master. This ensures that the system automatically calculates the Stock UOM Quantity when creating Purchase Orders.

Step 1: Navigate to the Item Master

• Go to Home > Stock > Item Master.

• Select the item you want to edit (e.g., Pen).

Step 2: Set the Default Purchase UOM

• Under the Purchase section, set the Default Purchase UOM to the unit in which you typically purchase the item (e.g., Box).

Step 3: Define the Conversion Factor

• Enter the UOM Conversion Factor to convert the Purchase UOM to the Stock UOM.

• For example, if 1 Box = 20 Nos, set the conversion factor to 20.

Step 4: Save the Item Master

• Click Save to update the item details.

5. Benefits of Purchasing in Different UOMs

5.1 Cost Efficiency

• Purchasing in bulk (e.g., Boxes, Trucks) often reduces costs, as suppliers may offer discounts for larger quantities.

5.2 Inventory Accuracy

• By converting Purchase UOMs to Stock UOMs, you ensure accurate inventory tracking and reporting.

5.3 Operational Flexibility

• iVendNext allows you to handle different UOMs seamlessly, giving you the flexibility to purchase and stock items in the most efficient way.