Residual Quantity Transactions with Dual UOMs

If you have a dual UOM item, and if a transaction drives the on-hand quantity for the item in the primary UOM to zero, then Inventory Management automatically creates a residual quantity transaction, but the secondary on-hand quantity isn't zero.

If the secondary on-hand quantity is:

• Less than zero, the residual quantity transaction will have a residual quantity receipt.

• Greater than zero, the residual quantity transaction will have a residual quantity issue.

You can use the Defaulting Control attribute to specify how to handle these differences.

Value	Description
Fixed	Inventory Management will use the primary quantity and your UOM conversion to determine the secondary quantity.
Default or No Default	The deviation that you specify will determine the secondary quantity.

Let's take an example where you allow a 10% deviation in either direction. The conversion from primary to secondary is 1 to 1, such as KG and Liters. And, let's say you receive 100 KG and 100 Liters.

Now you do a few issues of the material, with some deviation from the standard conversion. Let's say you issue 50 KG and 51 Liters to a batch or shipment because the material expanded during fulfillment. That leaves you with 50 KG and 49 Liters on hand. Now you do another issue of 50 KG and 51 Liters. This leaves your on-hand quantity as 0 KG and -2 Liters. Obviously, that's not physically possible. If you have 0 KG, you must also have 0 Liters. Inventory Management will automatically create a residual quantity receipt for 0 KG and 2 Liters to bring your on-hand quantity in sync to 0 KG and 0 Liters. Similarly, if you had been left with 0 KG and a positive 2 Liters, Inventory Management will create a residual quantity issue.

You will usually see these residual quantity transactions when you allow a deviation. However, if you set Defaulting Control to Fixed, then the secondary on-hand quantity can sometimes get out of sync with the primary quantity and the UOM conversion because rounding errors accumulate. If a transaction leaves on-hand quantity at zero in the primary quantity, but not zero in the secondary quantity, then you'll have a residual quantity transaction.

Note: The reverse isn't true. If a transaction leaves on-hand quantity as zero in the secondary quantity, but not zero in the primary quantity, then Inventory Management doesn't automatically create a residual quantity issue for the primary UOM. You can create a miscellaneous issue to make the primary UOM 0.

Learn how to set the Defaulting Control attribute. For details, see Set Up Dual Units of Measure.