gptip42day - Understanding Inventory Unit of Measure

Frank Hamelly | MVP...

46,532 Super User 2025 Season 1

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Let's make this really simple. Say your company buys and sells automotive shock absorbers. You stock them as 'EACH', buy them by the 'DOZEN', and sell them in 'PAIR'.

Stocking UOM = EACH

Purchasing UOM = DOZEN

Selling UOM = PAIRs

Here are the UOM Schedules for shock absorbers -

EACH

* click image to enlarge

DOZEN

* click image to enlarge

PAIR

* click image to enlarge

Note the 'Equivalent' in each Schedule. This is the key to GP making correct UOM conversions.

Now, you issue a Purchase Order for 10 DOZEN shock absorbers. When the receiving transaction is posted, GP automatically converts the 10 DOZEN to 120 EACH shock absorbers and increases inventory on hand by 120.

Next, you enter a Sales Order for 5 PAIRs of shock absorbers. When the order is fulfilled and/or invoiced, GP automatically decreases inventory and charges Cost of Goods Sold for 10 shock absorbers.

Just remember that the 'Base' Unit of Measure is the UOM in which the item is stocked and that UOM is what gets entered in the Item Card.