1. Implementing Order Management
  2. Manage Residual Quantity with Dual Units of Measure

Manage Residual Quantity with Dual Units of Measure

If your item uses dual units of measure, and if a transaction drives the item's on-hand quantity in the primary measure to zero, then Oracle Inventory Management automatically creates a transaction for the residual quantity, but the secondary on-hand quantity isn't zero.

Note

If Secondary On-hand Quantity Is Residual Transaction Will Have A Residual Quantity. . .
Less than zero Receipt
Greater than zero Issue

You can set the Defaulting Control attribute to manage these differences:

Value

Description

Fixed

The primary quantity and your UOM conversion will determine the secondary quantity.

Default or No Default

The deviation that you specify will determine the secondary quantity.

Assume you allow a 10% deviation in either direction. The conversion from primary to secondary is 1 to 1, such as KG and Liters. Assume you receive 100 KG and 100 Liters. Assume you issue:

  • 50 KG and 51 Liters to a shipment because the material expanded during fulfillment. That leaves you with 50 KG and 49 Liters on hand.
  • 50 KG and 51 Liters. This leaves your on-hand quantity as 0 KG and -2 Liters. But this isn't 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 to 0 KG and 0 Liters. If you have 0 KG and a positive 2 Liters, Inventory Management will create a residual quantity issue.

You typically 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 transaction for the residual quantity.

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 issue for the primary measure. You can create a miscellaneous issue to make the primary measure 0.

For more about Defaulting Control, see Set Up Dual Units of Measure.

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