For example:
- The product’s Inventory Unit is 'CAN'. This is the primary unit that will be used for this product.
- The product’s Issue Unit 1 is 'CS', a case of 24 cans. This means that when an order is created, the order quantity will indicate the number of cases of this product issued from central storage, or a commissary or supply location. The issue unit and inventory unit do not have to be the same. In this example, cans of soda can be inventoried by the can but issued by the case. If the units are not the same, a conversion (other than 1) needs to be entered to indicate the number of issue units in one inventory unit – the number of CASES in 1 CAN.
Formula: Issue Unit 1: (Case of) 24 x .041667 = 1 (Can), Inventory Unit; i.e. 1 Can = 1/24 of 1 Case
- The product’s Issue Unit 2 is also 'CS'. This means that when an order is created, the order quantity will indicate the number of cases of this product issued from a warehouse location to a ship. The box to the left of Issue Unit 2 is checked indicating that the formula will divide instead of multiply, which will allow users to enter a whole number instead of a decimal value.
Formula: Issue Unit 2: (Case of) 12 / 12 = 1 (Can), Inventory Unit
- The product’s Recipe Unit 1 is 'Can'. It also has a Recipe Unit 2 of 'Fl Oz' (Fluid Ounces). This means that either of these units can be selected when the product is used as a component of a recipe. The conversion entered above for Recipe Unit 2 indicates that there are 12 FL OZ in 1 CAN.
Note: If the Inventory Unit is smaller than the Issue/Recipe Unit, the Conversion will be < 1; if the Inventory Unit is larger, the Conversion will be > 1.
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