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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Unit of Measure Schedu...
Microsoft Dynamics GP (Archived)

Unit of Measure Schedule Suggestions

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Posted on by Jack Beacham 60

We have setup Unit of Measure Schedules for finished goods based on the case pack quantities in which the finished goods are shipped to customers. However, these case pack quantities are changing. This is a running change - meaning that for some period of time we will be stocking a finished good SKU in both case pack quanitities.

For example, SKU-123 has a UoM Schedule of CASE3 as it is shipped in cartons containing three finished goods each. Further, SKU-123 may have a cost of $1.00 per retail unit (excluding the shipping carton), plus $0.30 cents for the shipping carton. So, the cost of each finished goods is set to a $1.10. Further, a running change is made whereby SKU-123s will be shipped in cartons of 4 - and so will need to have the Unit of Measure Schedule changed from CASE3 to CASE4. Finally, moving forward, the new cost of the new carton is $0.32, or $0.08 per finished good, making the cost of the finished good $1.08.

This is causing problems managing costs as well as warehouse fulfillment.

 I appreciate any suggestions - thanks in advance!

Jack

*This post is locked for comments

  • Kent Smith Profile Picture
    Kent Smith 160 on at
    Re: Re: Re: Re: Unit of Measure Schedule Suggestions

    Jack,  Did you come up with a good way to solve this problem?  We occasionally  have the same problem.   Kent, ksmith@wcbradley.com

  • Jack Beacham Profile Picture
    Jack Beacham 60 on at
    Re: Re: Re: Re: Unit of Measure Schedule Suggestions

     Thanks again Frank!

    I've been working through the logic today on one possible way out of this. Thought I'd wait until I can test it out an either offer it as a possible solution to others - or a more perplexing question.

     Thanks again -

     Jack

  • Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,317 Super User 2025 Season 1 on at
    Re: Re: Re: Unit of Measure Schedule Suggestions

    Jack,

    I see your issue now and to be honest, I don't know what the best solution for you would be. I'd suggest you post your question here -

    http://groups.google.com/group/microsoft.public.greatplains/topics?tsc=1

    this forum gets more traffic and may generate responses from some people who wouldn't see it here.

    Hope this helps,

  • Jack Beacham Profile Picture
    Jack Beacham 60 on at
    Re: Re: Unit of Measure Schedule Suggestions

    Hi Frank - thanks for your help. The kit idea would work except that we don't inventory the cartons. Actually, I tried to simplify my example a bit - more than I should have. The manufactured SKU-123 is asembled by an outsourcer. And, in the simplest form, SKU-123 is purchased as a finished good that is resold. However, we know what the costs of the components are, including the carton. (In a more complicated form, SKU-123 components and assembly is purchased thrugh multiple outsourcers - which entails a different set of challenges!) In either, scenario though, the cost of the carton is factored over potentially different number of finished good units - 3, 4, 6, etc.

    The problems are here:

    One, when there is a case pack quantity change, we must decide when to update / recreate the Unit of Measure Schedule in GP for that item. Changing, for instance, the UoMS from CASE3 to CASE4 now gives warehouse fulfillment bad information about how many EACH's are inside a carton. Most customers order in a mutually known multiple of a case pack quantity. So, if they order 12 SKU-123s, our SRS Pick Ticket, divides that quantity by the current Unit of Measure Schedule quantity for that item. Once a change is made, fulfillment, in this scenario would pick three cases, assuming that there were four units in each carton - when there were really just three. Not only would be under shipping - our EDI customers would know from the ASN that hadn't sent the right number of cartons. Further, we would be billing the customer as if we had done everything correctly.(This is admittedly worst case - we manage it manually - and that is the concern.)

    And two, regardless of what we do, the Last Cost reflects the cost at which the last PO receipt was at - there's no good place that we know of in GP itself to put the new PO cost (we do use Extender though). So, there is an information management issue whenever Sales is quoting new business - are they basing pricing on current cost (rather than the Last received Cost)

    One thought I had was to change the Unit of Measure Schedule to EACH and add equivalencies to the various potential case pack quantities. I have no dea what problems that would cause. One problem with it already identified is that we're using the UoMS to tell us which case pack quantity the customer is expecting. Perhaps we can identify that during the EDI import (were using vSync).

    Again, I appreciate your initial thoughts. Typing through this has at leat given me some ideas of what we can test.

    Thanks again,

    Jack

  • Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,317 Super User 2025 Season 1 on at
    Re: Unit of Measure Schedule Suggestions

    Jack, I take it you are incorporating the cost of the shipping carton in the finished goods product cost and not using a Bill of Material or Kit to roll that cost up for you.  If that's the case, I would suggest using Kits to identify your CASE3 and CASE4 packaged finished goods.  For instance, Kit CASE3 would consist of 3 SKU-123s and a 3 pack carton.  Kit CASE4 would consist of 4 SKU-123s and a 4-pack shipping carton.  When the cost of the shipping carton changes, the new cost would be reflected in the Kit cost.

    The other option would be to use an Inventory Bill of Material, but that would require running an Assembly transction to create the finished goods.  The Kit concept may be a better solution for you.

    Hope this helps,

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