UOM in Rebate Calculation
Units of measure or UOMs are used to quantify inventory items.
With the Multiple Units of Measure feature, you set up a Units Type and define each unit for that type. You can set up a Units Type called Quantity. Then, set up Quantity units of Each, Case, and Pallet. Assign a base unit and define each unit in terms of the base. The base unit is the smallest quantity you can buy. See Multiple Units of Measure.
In the UOM Inclusion field of an agreement details record, you can specify which units of measure for item inclusions are eligible for rebate. If you select multiple unit types for UOM inclusion, you should select a unit for each Unit Type in the Calculation UOM field.
The Calculation UOM field lets you specify a unit to determine the conversion factor for calculating rebates.
A Conversion Rate is a number used to convert one unit into a different unit. If you do not select a value in the Calculation UOM field, the system uses the Primary Sale Unit or Primary Purchase Unit of an inventory item as the conversion factor.
Using the following UOM table, transaction, and agreement details, see how the rebate is calculated for an item on a transaction line:
Units of Measure (UOM):
|
Units Type |
Units |
Conversion Rate |
Base Unit |
|---|---|---|---|
|
Pallet |
Each |
1 |
Yes |
|
Box |
10 |
- |
|
|
Pallet |
1000 |
- |
Agreement Details:
|
Calculation Amount: 8 Calculation Basis: Not Applicable |
Price Pass-through Type: Flat Amount Price Pass-through Value: 2 |
UOM Inclusion: Each, Box, Pallet Calculation UOM: Box |
After you enter an item on a transaction, the system compares agreement details, calculates applicable rebates, and applies the best rebate deal.
Transaction Details:
|
Item: Item A Quantity: 100 Unit: Box |
In this example, an invoice with Box in the Units column matches the selected conversion factor in the agreement details.
Example Calculation #1:
|
Calculation Method: Flat Amount Calc = (calc amount * conversion factor) * (item quantity) Calc = (8*1) * 100 Rebate Amount: 800 |
If an invoice has Pallet in the Units column, the system multiplies the calculation amount with the conversion rate Pallet. Then, divides it with the selected conversion factor which is 10 for the unit Box.
Example Calculation #2:
|
Calculation Method: Flat Amount Calc = (calc amount * unit conversion rate)/conversion factor * (item quantity) Calc = (8*1000)/10 * 100 Rebate Amount: 80,000 |
Similarly, if the unit has a smaller conversation rate than the selected conversion factor, the system divides the conversation rate with the conversion factor. In this example, the unit Each is used.
Example Calculation #3:
|
Calculation Method: Flat Amount Calc = (calc amount * unit conversion rate)/conversion factor * (item quantity) Calc = (8*1)/10 * 100 Rebate Amount: 80 |