Unit of Measure Conversion

Module Guide: Unit of Measure Conversion

Module Location

Settings > Inventory > Unit of Measure Conversion

Module Purpose

The Unit of Measure Conversion module is used to define the mathematical relationship between two different units of measure. The goal is to enable the system to automatically calculate quantity equivalencies between one unit and another. For example, defining that "1 DOZEN = 12 PIECES" or "1 ROLL = 5 KILOGRAMS." This feature is crucial for business processes where goods are purchased in one unit, stored in another, and sold in yet a different one.

1. Main View (Unit of Measure Conversion List)

The main page displays all conversion rules that have been registered in the system.

View Explanation

• Search Filter: Allows for a quick search based on the units of measure involved in the conversion.

• Category Filter: Filters the conversion list by Item/Service Category Type (e.g., Raw Materials).

• List Table: Displays the details of each conversion rule:

  • No.: Serial number.

  • Unit of Measure 1: The source unit to be converted from.

  • Unit of Measure 2: The target unit after conversion.

  • Scale: The multiplier factor used for the conversion. The formula used is: 1 [Unit of Measure 1] = [Scale] [Unit of Measure 2].

  • Conversion Date: The date when this conversion rule becomes effective or was created.

• Action Buttons:

  • Add Conversion: Opens the form to create a new conversion rule.

2. Add New Conversion Page

This form is used to define a new conversion rule between two units of measure.

View Explanation

• Unit of Measure 1: A dropdown to select the source unit. The number "1" next to it indicates that this is the base for the conversion.

• Unit of Measure 2: A dropdown to select the target unit.

• Scale Input: A numeric field to enter the conversion value (scale) from Unit of Measure 1 to Unit of Measure 2.

• Conversion Date: A field to specify the date this conversion rule takes effect.

• Buttons:

  • Save: To save the new conversion rule.

  • Cancel: To cancel the process and return to the list page.

3. Steps to Add a New Conversion

1. From the main page, click the Add Conversion button.

2. Select Unit of Measure 1 (e.g., DOZEN).

3. Select Unit of Measure 2 (e.g., PIECES).

4. Enter the conversion Scale value. Based on the example, you would enter 12, meaning "1 DOZEN = 12 PIECES."

5. Select the Conversion Date.

6. Click the Save button.

7. Important: For full functionality, a two-way conversion is often necessary. Repeat the steps above to create the reverse conversion (e.g., 1 PIECE = 0.0833 DOZEN).

4. Integrated Workflow & Business Process

• Transaction Flexibility: Users can perform purchase transactions in units of BALES, and the system can automatically update the stock in units of PIECES according to the existing conversion rules.

• Multi-Unit Inventory Management: The warehouse team can view stock reports in various units (e.g., 500 METERS or 5 ROLLS of remaining fabric), providing better visibility into material availability.

• Production Process: In a Bill of Materials (BOM), material requirements can be defined in the smallest unit (e.g., GRAMS), while purchases are made in the largest unit (e.g., SACKS), and the system will convert them automatically.

• Sales: Allows for the sale of products in a unit different from their storage unit. For example, selling cable by the METER from stock that is stored in ROLLS.

5. Tips & Important Notes

• The accuracy of the Scale value is extremely crucial. A small error in the scale can lead to significant stock discrepancies in the long run.

• Always define a two-way conversion if it is required in the business process to ensure maximum flexibility in all transaction modules.

• This module is one of the most powerful features in an ERP system for complex inventory management. Utilize this module to simplify processes that involve many units of measure.