Using Item Quantity UOM

All PeopleSoft applications use UOM to quantify resources. In PeopleSoft Inventory, UOMs enable you to quantify and track inventory items. Suppose that you stock items in boxes of 12 and in cases of 60, the boxes and the cases are prepackaged, and you do not enable the warehouse personnel to break the packaging. You can stock item quantities in both these units of measure and track them as they move through the warehouse.

You can use different UOMs to conduct different types of transactions. For example, you might order an item by the case but store it in the warehouse and ship it to customers either by the box or as individual entities. You can track all of these transactions in the system by setting up quantity units of measure for ordering, stocking, and shipping, in addition to the required standard UOM. To facilitate processing, the PeopleSoft system maintains conversion rates between the standard UOM and the various other UOMs.

Standard UOM

The standard UOM represents the most common UOM for an item and should be the item's smallest valid unit of measure. The standard UOM must be valid for ordering, stocking, and shipping. Because PeopleSoft Inventory maintains item quantity on hand and costs in the standard UOM and uses this unit in quantity-on-hand and costing calculations, you cannot change the standard UOM after you perform transactions involving the item.

When you define an item's standard UOM on the Define Item - General: Common page, PeopleSoft Inventory automatically assigns a conversion rate of 1.000 for stocking, shipping, and ordering transactions. While you can modify conversion rates for the other UOMs that are defined for the item, you cannot override this base conversion rate.

Standard Pack Unit of Measure

Define a standard pack UOM if you consistently stock or ship items in packages of a specific size and type. For example, if you always ship pens in boxes of 12, you can define a box as having 12 each (the standard UOM), and then define the standard pack UOM as a box. You define the standard pack UOM on the Define Business Unit Item - Inventory: Shipping/Handling page.

PeopleSoft Inventory uses the standard pack UOM to determine how many labels to generate when printing shipping-carton and production-completion labels. Suppose that you are shipping 10 boxes of the pens and you want to print one label per box. If you use the standard UOM (eaches), the label process prints 120 labels (one per pen); if you use the standard pack UOM (boxes), the process prints 10 labels (one per box).

Stocking UOM

The stocking UOM describes how you store quantities of an item in the warehouse. You can use the stocking UOM for a variety of transactions, including putaway, transfers, container management, adjustments, picking, and ordering.

When you assign UOMs to an item on the Units of Measure page, indicate whether each UOM is valid for ordering, shipping, or stocking transactions. If more than one UOM is valid for stocking, specify which of these should be the default stocking UOM. The PeopleSoft system automatically selects the standard UOM as the default stocking UOM, but you can change this value to any valid stocking UOM. The one exception is serial-controlled items, for which the only valid stocking UOM is the standard UOM. Each item can have only one default stocking UOM.

The Purchasing Receiving pages, the InterUnit and RMA Receiving pages, the Manual Staging page, and the Express Putaway page automatically use an item's default stocking UOM, but you can override the default and enter any valid stocking UOM for the item.

Note: Manufacturing Completions processes put stock away into PeopleSoft Inventory in the standard UOM only.

You can maintain multiple stocking UOMs for an item, but because you must identify the UOM for every transaction using the item, doing so requires that you track each UOM physically. To simplify warehouse operations, store the item in one UOM.

For example, suppose that Item A has a standard UOM of each (EA) and two stocking UOMs: each and case (CS). Assume that one CS equals 12 EA. To transfer all of Item A from one storage location to another, create two transactions—one to transfer the quantity that is stocked in EA and the second to transfer the quantity that is stocked in CS. If the picking plan calls for two cases of Item A to be picked, and you have 12 EA and one CS, create two picking feedback transactions—one to pick 12 EA and the second to pick one CS.

If, however, you define one stocking UOM for Item A, create only a single transaction for either of these material movements. You can still have an ordering UOM of CS, allowing you to order two CS. The difference is that you can enter a single picking feedback transaction by using the ordering UOM of CS. The system automatically converts to the single stocking UOM to find the correct quantity to fill the picking request.

Ordering UOM

Define an ordering UOM if you order quantities in a UOM that is other than the standard UOM. You can use the ordering UOM to create material stock requests, sales orders, and purchasing requisitions.

You cannot change the ordering UOM for an item if an open order containing the item exists in PeopleSoft Inventory.

Shipping UOM

Define a shipping UOM if you ship quantities in a UOM that is other than the standard UOM. Use the shipping UOM on the Packing Session pages and on the Shipping/Issues component.

You cannot change the shipping UOM for an item if an open order containing the item exists in PeopleSoft Inventory.

Rules for Deleting UOMs

Whenever you attempt to delete a UOM on the Units of Measure page in the Set Up Financials/Supply Chain - Common Definitions menu, PeopleSoft Inventory checks for these situations. If any of the conditions are not met, the system issues an error message and cancels the deletion.

All UOMs: No item uses this UOM as a default stocking UOM.
Stocking UOM: No quantity on hand or negative quantity exists in any storage location (the PHYSICAL_INV table) and no quantity exists in the putaway staging tables (STAGED_INF_INV and STAGED_ITEM_INV).
Ordering UOM: No data exists in the ordering tables (DEMAND_INF_INV and DEMAND_INV) and no undepleted data exists in the Shipping Interface table (SHIP_INF_INV).
Shipping UOM: No undepleted data exists in the Shipping Interface table (SHIP_INF_INV).

This table illustrates which units of measure are used by PeopleSoft Inventory transaction pages.

Page	Valid Unit of Measure
Material Stock Request.	Ordering
Picking Feedback.	Stocking
Shipping/Issues.	Shipping
InterUnit and RMA Receiving.	Stocking
Express Putaway.	Stocking
Stockroom Feedback.	Stocking
Adjustments.	Stocking
Transfers.	Stocking
Container Management.	Stocking
Packing.	Shipping
Physical Accounting.	Stocking

Using UOMs with Electronic Data Collection Systems

The UOM Conversion Flag (unit of measure conversion flag), available on the Installation Options - Inventory page, the Inventory Options page, and the Define Item - Inventory: Shipping/Handling page, enables you to indicate how the electronic data collection system should handle UOMs. The option that you select on Installation Options page is used as the default option at the SetID level and can be overridden on Inventory Options; the selection that you make on Inventory Options is used as the default option at the business unit level and can be overridden on the Define Business Unit Item - Inventory: Shipping/Handling page. The electronic data collection transactions that run in the background use the settings on this final page.

You can set the conversion flag to process transactions in one of three ways:

If you select Convert to Standard UOM (convert to the standard unit of measure), the system converts the UOM on incoming transactions to the item's standard UOM.
This enables you to stock all of the inventory in the standard UOM and perform material movement transactions by using any valid UOM for the item.
If you select Convert to Default Stock UOM (convert to the default stocking unit of measure), the system converts the UOM on incoming transactions to the default stocking UOM.
If you select Use Entered UOM, the system processes transactions by using whatever UOM the user enters.

These transactions do not use the conversion flag in the standard manner:

The shipping container and shipping serial transactions accept only the shipping UOM.
After verifying that the entered UOM is valid for shipping, the system processes the transaction by using that UOM.
The interunit and purchase order receiving transactions use a receiving UOM rather than a putaway UOM and therefore accept any valid UOM for the item.
For these transactions, the system receives the item in the entered UOM, then stocks it in the default stocking UOM.
Both the PeopleSoft Inventory and the Production Management picking feedback transactions take the original stocking UOM into account.
If the original stocking UOM is identified on the incoming transaction, the system automatically converts the picking UOM to the original stocking UOM; if the original stocking UOM is not identified, the system selects the conversion flag and uses it accordingly.
The shipping notification transaction both picks and ships stock.
When picking, the system selects the conversion flag to determine which UOM to use; when shipping, it uses only the ordering UOM.

This table shows which UOMs are valid for each transaction type and each setting of the conversion flag.

Transaction	Use the Entered UOM	Convert to the Standard UOM	Convert to Default Stocking UOM
Picking.	Stocking.	Any valid UOM for the item.	Any valid UOM for the item.
Shipping Containers.	Shipping.	Shipping.	Shipping.
Putaway.	Stocking.	Any valid UOM for the item.	Any valid UOM for the item.
Transfers.	Stocking.	Any valid UOM for the item.	Any valid UOM for the item.
Adjustments.	Stocking.	Any valid UOM for the item.	Any valid UOM for the item.
Interunit Receipts.	Any valid UOM for the item.	Any valid UOM for the item.	Any valid UOM for the item.
Shipping Notification.	Stocking.	Any valid UOM for the item.	Any valid UOM for the item.
Purchase Order Receiving.	Any valid UOM for the item.	Any valid UOM for the item.	Any valid UOM for the item.
Kit Issues/Returns.	Standard.	Any valid UOM for the item.	Any valid UOM for the item.
Completions.	Standard.	Any valid UOM for the item.	Any valid UOM for the item.
Production Picking.	Stocking.	Any valid UOM for the item.	Any valid UOM for the item.

Examples: How to Use UOMs

These examples illustrate the concepts that are discussed in Understanding Item Unit of Measure. These examples do not encompass all possibilities for each transaction; they are designed to display how the different UOMs for an item can be used in PeopleSoft Inventory.

Using a Single Stocking UOM with Multiple Ordering and Shipping UOMs

For this example, assume that item MOD900 (a modem) has these UOMs and conversion rates:

UOM	Standard UOM	Supplier UOM	Stocking UOM	Ordering UOM	Shipping UOM
Each (EA)	1 EA		1 EA		1 EA
Case (CS)		100 EA		25 EA	25 EA
Pallet (PL)					100 EA

Receiving Transaction

You receive 10 CS of MOD900 using the supplier UOM of CS. This is different from the shipping UOM of CS: the supplier UOM of CS is 100 EA and the shipping UOM of CS is 25 EA.

Putaway Transaction

You put away 1,000 EA of MOD900 in Bin A using the standard UOM, the only valid stocking UOM for this item.

If you use an electronic data collection system, and you have selected the UOM Conversion Flag to convert the entered UOM to the standard UOM, you can also put away 40 CS or 10 PL. In either case, the system converts this quantity to the standard UOM of EA.

Transfer Transaction

You then transfer 50 EA of MOD900 from Bin A to Bin C using the stocking UOM.

If you use an electronic data collection system, and you select the UOM Conversion Flag to convert the entered UOM to the standard UOM, you can also transfer 2 CS or 0.5 PL from Bin A to Bin C. In either case, the system converts the quantity to the standard UOM of EA.

Material Stock Request Transaction

You enter a customer sales order for 8 CS of MOD900. You can also enter the quantity in the standard UOM (200 EA)—the system automatically converts this quantity to the ordering UOM (CS, in this example).

Picking Transaction

You pick 8 CS of MOD900 from Bin A. The Picking Feedback transaction automatically converts the 8 CS to a quantity of 200 EA. You can pick using the stocking, ordering, or standard UOM.

If you use an electronic data collection system and you have selected the UOM Conversion Flag to convert the entered UOM to the standard UOM, you can also pick in CS and the system automatically converts the quantity to EA.

Shipping/Issues Transaction

You ship 8 CS of MOD900 to the customer. You can also choose to ship 2 PL.

If you use the shipping containers electronic data transaction, you can ship in EA, CS, or PL, as these are all valid shipping UOMs for the item.

Using Multiple Stocking UOMs

For this example, assume that item COT100 (a cotton ball) has these UOMs and conversion rates:

Unit of Measure	Standard UOM	Stocking UOM
Each (EA)	1 EA	1 EA
Box (BX)		100 EA
Case (CS)		550 EA

In the hospital supply room, you issue cotton balls by the box of 100 cotton balls and by the case of 550 cotton balls. Boxes are issued to nurses' stations and cases are issued to departments.

The cotton balls are stocked separately in boxes of 100 or in cases of 550. You receive a shipment of cotton balls and put away 5 BX and 10 CS.

Someone comes to the supply room and requests 5 BX of cotton balls for the nurse's station in the department. When you issue the 5 BX, you are left with no boxes and 10 cases of COT100.

Someone else requests 2 boxes of COT100; you tell them you are out until the next shipment. You would not issue 100 EA out of a CS because you do not want to break the case.

Another department requests 3 cases of cotton balls. When you give them the 3 CS, you are left with no BX and 7 CS.

You set up relationships between items and UOMs at both the SetID level and the business unit level.

To associate items with UOMs:

Establish UOMs for the SetID.
Define UOMs on the Units of Measure page, which you access from the Set Up Financials/Supply Chain - Common Definitions menu. All UOMs must be defined here before they are available anywhere else in the system.
Define the standard UOM for each item within the SetID.
Using the Define Item - General: Common page, assign each item a standard UOM that reflects the item's most common UOM.

Warning! To minimize rounding discrepancies when using multiple UOMs, use the smallest valid unit of measure for the item as the standard UOM.
Define additional UOMs for each item within the SetID.
Using the Units of Measure page, which you access from the Define Items menu, define valid UOMs for ordering, stocking, and shipping each item. As part of this definition, identify the default stocking UOM, specify conversion rates between the standard UOM and the additional UOMs, and set up quantity precision rules for use in system calculations.

For each UOM, define corresponding stocking and shipping parameters on the UOM Weight/Volume page. To access this page, click the UOM Weight/Volume link on the Units of Measure page, which you access from the Define Items menu.
Define any UOM attributes that vary according to business unit.
Define a standard pack UOM on the Define Item - Inventory: Shipping/Handling page. This is the only UOM that you define at the business unit level rather than at the SetID level.

If stocking, ordering, and shipping UOMs and their corresponding stocking and shipping parameters differ according to the business unit, define this information on the Define Business Unit Item - Inventory: Weight/Volume page.