The system provides for automatic conversion between stock units and purchase order units. For example, if an item is stocked as individual pieces but purchased by the dozen, a conversion factor of "12" is used on the purchase order and in the quote table.
If a requisition is entered for a vendor/item combination that is contained in the quote table, the system will calculate the purchase quantity using the conversion factor.
The program divides the stock units by the conversion factor to calculate the purchase units. When the requisition is used on a purchase order, the purchase quantity becomes the purchase order quantity.
For example, suppose the stock unit was dozen, and the purchase units was each. The quantity on the requisition is 36. The system will divide 36 by the conversion factor of 12, leaving a quantity of 3 to be ordered. When the requisition is used on a purchase order, the purchase order quantity will be 3, and the purchase unit of measure will be dozen.
When the purchase order units are received into a stock location, the system will automatically convert the purchase order units into stock units by multiplying by the conversion factor.
Using the example above, when the quantity is received as 3 with the unit of measure of dozen, the system will multiply the purchase quantity of 3 by the conversion factor of 12 and stock a quantity of 36 with the unit of measure of each.
If a purchase order line is entered for a vendor/item combination that is contained in the quote table, and the purchase unit of measure entered for the purchase order line is contained in an existing vendor quote, the purchasing unit price will be pulled from the vendor quote table and entered on the purchase order for the purchase quantity.
When the list of values is used to select the purchase unit of measure, the list is organized as follows:
Alternate units of measure for which records exist for the item in program ICMM, Inventory Master Maintenance, are listed first. In the Alt/Stock column of the list, these units of measure have an A.
The stock unit of measure is listed next, with an S in the Alt/Stock column.
Other units of measure that are included in the system are displayed in program IPUM, Unit of Measure Maintenance.
When the purchase order units are received into a stock location, the system will automatically convert the purchase order units into stock units by multiplying by the conversion factor that is entered on the purchase order from the vendor quote table.
Using the example in the requisition section, when the quantity is received as 3 with the unit of measure of dozen, the system will multiply the purchase quantity of 3 by the conversion factor of 12 and stock a quantity of 36 with the unit of measure of each.