Unit of Measure Conversions

The Cost Simulation program converts all units of measure to the primary unit of measure for the purpose of the cost simulation.

When one of the units of measure is a potent unit of measure, the conversion equation includes the standard potency value from branch/plant manufacturing data.

This example illustrates a conversion involving a potent unit of measure:

• Component = B

• Quantity per = 3

• Primary unit of measure = GA (physical gallons)

• Component unit of measure = GP (potent gallons)

• Standard potency = 50 percent

• Cost of B = 50.00 (from the Item Cost table)

• Cost rolled into parent item = [(3 ÷ .5) × 50] = 300.00