1. Implementing Manufacturing and Supply Chain Materials Management
  2. Default Stocking Unit of Measure for Inventory Management

Default Stocking Unit of Measure for Inventory Management

Use the default stocking UOM to specify the units of measure to stock material within your warehouse.

You can use the default stocking UOM to process inventory transactions and replenish inventory. You can also use the default stocking UOM across all other inventory activities such as receiving, picking, cycle counting, and physical counting.

Take a look at some important considerations for using the default stocking UOM:

  • Benefits

  • Considerations

  • Setup

  • Details

Benefits

Here are the main benefits of using the default stocking UOM:

  • Ability to store the same item in multiple packing configurations

    In the Healthcare industry, it is common to transact and store the same item in multiple packing configurations. For example, a hospital may store bandages in one subinventory in cases of 100. The hospital might also store the same item in another subinventory in cases of 5. When performing inventory transactions, it's critical that your organization process inventory transactions and stores material in the correct stocking UOM.

  • Reduction in user error when performing inventory replenishment activities

    For example, when replenishing PAR locations, using the default stocking UOM ensures that the application creates the replenishment request document in the correct ordering UOM. This avoids costly mistakes that can occur when material is replenished in an incorrect stocking UOM.

  • Flexibility

    You also have the flexibility to set up the stocking UOM for an item at the inventory organization level, subinventory level, or both levels.

Using the default stocking UOM improves inventory processing times, accuracy, and visibility by ensuring that inventory transactions are processed and stored in the correct stocking UOM.

Considerations

Consider how you plan to implement units of measure usages within your organization. You can define item units of measure usages at the inventory organization level, subinventory level, or both levels. If you plan to stock an item in the same UOM across all subinventories, you can define the UOM at the inventory organization level. However, if you plan to stock an item in different UOMs based on subinventory, you should define UOM usages at the subinventory level.

Setup

To use default stocking units of measure for your inventory transactions, you must first enable the Enable Units of Measure Usages feature. Once enabled, you can access the Manage Units of Measure Usages task from the Setup and Maintenance work area.

In the Setup and Maintenance work area, use the Manage Units of Measure Usages task.

  • Offering: Manufacturing and Supply Chain Materials Management

  • Functional Area: Inventory Management

  • Task: Manage Units of Measure Usages

You must enter both an inventory organization and item when defining unit of measure usages.

Once you define a unit of measure usage, it's available on the inventory Management transaction pages. For example, if you define a stocking UOM of Box of 5 for the item UOM-1000 on the Manage Units of Measure page, that stocking UOM (Box of 5) automatically defaults when you create an inventory transaction such as a miscellaneous receipt. Once you enter the subinventory on the transaction line, the stocking UOM automatically defaults.

Details

Here are some details for the default stocking unit of measure for inventory transactions:

  • The Manage Item Quantities page displays the item quantities in the primary and secondary UOMs instead of the default stocking UOM.

  • When performing transactions, the stocking UOM automatically defaults. However, you can choose to override the default stocking UOM.

  • When UOM conversion calculations result in fractional quantities for replenishment orders, the application rounds quantities to the next highest integer.

  • Drop shipments, Outside Processing (OSP), and return material authorization (RMA) flows don't use default stocking UOM. These processes use the primary UOM.