Understanding the UOM Conversion Hierarchy

All of the PeopleSoft applications use UOMs to quantify resources. In PeopleSoft Purchasing, the various UOMs that are available for the transactions enable you to quantify and track the items that you have purchased.

You must first define the UOM codes to be used in the system on the Units of Measure page. Use this page to define standard conversion rates between any combination of UOMs necessary. These codes are stored in the Units table.

These are the UOMs commonly used by PeopleSoft Purchasing transactions:

  • General UOM

    The general UOM and its conversion rates are defined on the Units of Measure page. This information is stored in the Units table.

  • Inventory item UOM

    The inventory item UOM is the UOM defined for the item on the Item Definition - Units of Measure page. The inventory item UOM rate of conversion to the item standard UOM is also defined on the Item Definition - Units of Measure page. The inventory item UOM information represents the UOM in which the item is tracked in the business process. This information is stored in the Inventory Item table.

    Define an item standard UOM when you first enter an item definition into the system on the Item Definition - General: Common page. This applies only if you have the Inventory module installed.

    The item standard UOM serves as the smallest common denominator for UOM conversion, and should be selected accordingly. The standard UOM should be the smallest unit in which the item is transacted and should be selected, so that any conversions performed for the item are converted from the standard UOM.

    For example, do not assign a standard UOM of CASE to an item that you regularly order in the smaller UOM of BOX or EACH.

  • Item Supplier UOM

    The item-Supplier UOM is defined for an item-supplier combination on the Supplier's UOM & Pricing Info page. The item-Supplier UOM rate of conversion to the item standard UOM is also defined on this page. The item-Supplier UOM information represents the UOM in which the item is purchased from a specific supplier. This information is stored in the Item Supplier table.

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