What's a Dual Unit of Measure, and Why Might I Need One?

Use dual units of measure to order, price, manufacture, receive, pick, pack, and ship an item in the primary measure but price it in the secondary measure.

A dual unit of measure is an inventory management technique that manages an item’s quantity in different measures at the same time, such as cases and pounds. You can use it to keep transactions and inventory accurate in each measure.

You might need to order, transfer, outsource, or buy an item in a unit of measure that's different from the unit of measure that you use to price and invoice it. For example:

You price fish by the pound but you sell the entire fish to your customers.
You price steel by the ton but ship and receive it by the sheet.
You price paper by the pound but ship and receive it by the roll.
You price apples by the pound but ship and receive them by the bag.

Consider an example:

Note

Weight for each fish is approximate because it naturally varies in size. 10 different fish will each sell for a different amount because each one has a unique weight. You might need to use the primary Case measure to stock your fish in inventory, but use the secondary Pounds measure to price it.
A case of fish weighs an average of 12 pounds, and that's how you stock it.
The actual weight just before you ship is 11.6 pounds, and that's the price you charge your customer.

You can use dual units of measure to meet these requirements:

Track your item in the primary measure and in the secondary measure throughout your order-to-cash flow and procure-to-pay flow. Use it through Oracle Order Management, Oracle Inventory Management, Oracle Procurement, and Oracle Manufacturing.
Capture the item's actual weight that you sell, transfer, or purchase so you can accurately price, invoice, and cost it.
Provide a price estimate when you sell or purchase so you can maximize value according to the exact weight that you ship or receive.

You can create an order line in the item's primary measure or in another measure that's in the primary measure's class, such as Each, then convert that measure to automatically calculate quantity in the secondary measure, such as Pound:

Track the item in a measure that's different from the measure that you use to stock the item. For example, use the primary Cases to stock and track the quantity that your customer orders, and use the secondary Pounds to track the secondary quantity that you price and actually ship. You can use Case and Pounds simultaneously to track the item.
Use an automated flow to update the order line and invoice it according to the quantity or the secondary quantity that you ship.
Use and view two measures throughout your end-to-end supply chain. For example, start with the primary on the order line, then price and invoice in the secondary. Reserve, allocate, plan, produce, and ship in the primary.
If you're doing an internal transfer, then you can create and fulfill the transfer order in the item's primary, but calculate the transfer price in the secondary.
Select the lot to use to fulfill the item during shipping.
Revise a sales order. Add a new order line that uses dual measures to an existing order, or change the quantity on an order line that uses dual measures.
Cancel an order line that uses dual measures.
Cancel a sales order that uses dual measures. Order Management will automatically set the quantity and secondary quantity on all order lines to zero.

Realize these benefits:

Improve the accuracy of the price that your charge your customer. Charge according to the quantity that you actually ship, in the secondary measure.
Bill accurately so you can increase profitability.
Improve your report's accuracy. Use secondary attributes in your reports, such as the secondary quantity and the secondary measure.
Increase revenue and improve customer satisfaction.

Support Your Business Flows

Order to Cash

You can use:

Standard order.
Back-to-back order. Use this feature to help you create the purchase order, transfer order, or work order when you use dual measures to fulfill demand in your back-to-back flow.
Drop shipment. Create a sales order in the item's primary measure, then use the item's secondary quantity during fulfillment in your drop ship flow. If you want to use drop ship, then we recommend that you opt in to the Purchase Items That are Priced in Their Secondary UOM feature in the Procurement offering.
Transfer order. Create a transfer order in the primary and automatically calculate the expected quantity in the secondary according to your conversion. Specify transfer pricing in the secondary according to the actual secondary quantity that you receive.
Return order.

If a change of ownership happens between one business unit to another business unit, then Oracle Supply Chain Financial Orchestration orchestrates financial details and processes the transaction.

Procure to Pay

Purchasing. Create a purchase order in the primary and automatically calculate the expected quantity in the secondary according to a UOM conversion. Price the order line in the secondary and invoice it according to the actual secondary quantity that you receive.
Self Service Procurement.
Direct Procurement.
Invoicing in Accounts Payable.
Advance Shipment Notice.
Pay on Receipt.
Debit Memo.

Plan to Produce

Discrete Manufacturing.
Process Manufacturing, including work definitions and work orders.
Contract Manufacturing. Include dual measures in the production reports that you get from your contract manufacturers. Include a description of the materials used and what was finished. Include details in the primary measure and the secondary measure.
Outside Processing.

For more about flows, see Quick Start to Set Up Order-to-Cash.