Introduction

When managing inventory, items are often stored, purchased, or sold in various packaging or units. For instance, a product like screws might be tracked individually ("each") or in larger groupings like a box or case. Systems use Unit of Measure (UM) and ratios to ensure these varying quantities are accurately tracked and managed.

Key Concepts

1. Unit of Measure (UM):
   • A Unit of Measure (UM) is a way of quantifying an item for transactions or storage. Examples include:
     • "Each" – represents individual items.
     • "Box" – represents a group of items, such as 12 screws in a box.
     • "Case" – represents an even larger grouping, such as 48 screws in a case.
2. UM Ratios:
   • A UM ratio defines the conversion factor between different UMs for the same item.
   • Examples:
     • 1 box = 12 each.
     • 1 case = 48 each.
   • These ratios allow the system to accurately convert quantities into a base UM, which is used for consistent inventory tracking.

How UM Ratios Are Used

1. Purchasing:
   • Vendors may supply items in bulk UMs, such as cases or pallets.
   • The system converts the purchased quantity into the base UM using the predefined ratio.
     • Example: Ordering 10 boxes of screws (12 screws per box) adds 120 screws to inventory.
2. Selling:
   • Customers may request items in their preferred UM, such as "box" instead of "each."
   • The system calculates the equivalent quantity in the base UM and deducts it accordingly.
     • Example: Selling 2 boxes of screws (12 screws per box) reduces inventory by 24 screws.
3. Inventory Management:
   • Items are stored and tracked in a base UM (e.g., "each") for accuracy.
   • When items are received, moved, or consumed, UM ratios ensure the correct quantities are adjusted in the system.

Our System’s Implementation

Our inventory system supports multiple UMs and dynamically handles their conversion using ratios. Here’s how it works:

1. Default Setup:
   • Every item has a default UM (e.g., "Box") and a corresponding UM Ratio (e.g., 12 screws per box).
   • This default is stored in the system and applied automatically during transactions unless overridden.
2. Flexibility in Sales:
   • Users can select different UMs (e.g., "Each," "Box") during transactions like sales orders.
   • The system pulls the appropriate ratio from the database to ensure accurate conversions.
3. Database Tracking:
   • Quantities are stored in a base UM (e.g., "Each") for consistency.
   • UM-specific information is recorded separately, such as:
     • UM selected by the user.
     • UM Ratio applied.
4. Dynamic Display in UI:
   • The quantity shown in the interface matches the UM chosen by the user.
   • If a user switches from "Each" to "Box," the system recalculates and displays the equivalent number of boxes.

Practical Example in Our System