How to Set the Unit of Measure and the Rounding Factor for Internal Material Transfers
To set the unit of measure and the rounding factor for internal material transfers, the Purchasing attributes: Unit of Issue and Rounding Factor need to be set when defining or updating inventory items.
These attributes determine the unit of measure to be used for internal material transfers, and whether and how the quantity should be rounded off.
Unit of Issue
When specified, Oracle Self Service Procurement uses the unit of issue as the default unit of measure for internal material transfer requests. In the Purchasing attributes of the item definition, you can specify the unit of issue by entering the unit of measure you typically use to issue the item from inventory. You use units of issue to round order quantities, minimizing shipping, warehousing, and handling costs. The unit of issue must belong to the same unit of measure class as the primary unit of measure. When no unit of issue is specified for the item, the application uses the primary unit of measure of the item as the default unit of measure for internal material transfers.
Rounding Factor
Rounding Factor ensures that the unit of issue resolves to an integer rather than a fractional amount when you create requisitions for internal material transfers. In the Purchasing attributes of the item definition, you can specify a rounding factor by entering a number between 0 and 1. This factor determines how to round the quantity on an internal material transfer requisition that results from conversions between the requisition line unit of measure and the item's Unit of Issue.
For example, suppose the requisition line unit of measure is each, and the unit of issue is dozen. For an internal requisition of 20 each, the application converts the order quantity to 1.75 dozen. With a rounding factor of 0.6, the application rounds up the order quantity to 2 dozen. (Rounding factor of 0.75 also rounds up to 2 dozen.) With a rounding factor of 0.8, the application rounds down the order quantity to 1 dozen.