1. Implementing Order Management
  2. Set Up Dual Units of Measure

Set Up Dual Units of Measure

Set up dual units of measure so you can order, price, manufacture, receive, pick, pack, and ship an item in the primary measure but price it in the secondary measure.

Assume you're in the Fresh Fish 4 U organization, and you're a fishmonger who sells an item named Sushi Tuna. You capture tuna in the open ocean and bring them to port every day, where you sell the whole fish to your favorite restaurateur, Fancy Fish.

You price it by pound, not by each fish, so you need to price it in the secondary measure. Sushi Tuna is a good candidate for dual measures because a tuna naturally varies in size, you typically sell each tuna as one fish each, but you price it by weight. You sell each tuna fish for a different amount because each one has a unique weight. You need to track the item in the primary measure and secondary measure throughout the order fulfillment lifecycle.

Here's your work map:

Summary of the Setup

  1. Create the item.

  2. Manage the conversion.

  3. Set up pricing.

  4. Test your work.

You need a different set of privileges for each work area that you use in this procedure. See Get the Privileges That You Need to Implement Order Management.

Create the Item

  1. Go to Home > Product Management > Product Information Management > Tasks > Create Item.

    You must create a new item. You can't add dual measures to an item that already exists.

  2. In the Create Item dialog, set the values:

    Attribute

    Value

    Organization

    Fresh Fish 4 U

    Create New

    Enabled

    Number of Items

    1

    Item Class

    Root Item Class

  3. Make sure the Selected List window contains only Finished Goods, then click OK.

  4. On the Create Item page, set the values:

    Attribute

    Value

    Item

    Sushi Tuna

    Description

    The world's tastiest tuna. Remember, you can tune a piano, but you can't tune a fish.

    Primary Unit of Measure

    Each

    Specify the unit of measure that you use to stock and sell and the item.

    Tracking Unit of Measure

    Primary and Secondary

    Specify how to track your on-hand balance.

    If you set it to Primary and Secondary, then you're telling Order Management that this item is a dual measure item.

    Pricing

    For this example, choose Secondary.

    See Price Dual Units of Measure.

    Conversions

    Both

    Secondary Unit of Measure

    Pounds

    Specifies the measure that you use to price the item.

    Defaulting Control

    Choose a value:

    • Default. Use when your item's secondary measure might change at run time.

    • Fixed. Use when your item's secondary measure won't change at run time.

    You can't change some of the values that you set in the Unit of Measure area after you save, so make sure you set them correctly.

  5. Click Specifications > Manufacturing, then set the value:

    Attribute

    Value

    Structure Item Type

    Standard

    You must use Standard.

  6. Click Sales and Order Management, then set the values:

    Attribute

    Value

    Sales Product Type

    Goods

    You must use Goods or leave it empty.

    Shippable

    Yes

    Can be Yes or No.

    Invoiced

    Yes

    Invoice Enabled

    Yes

  7. Click Save > Save and Close.

See How You Set Up Items in Product Information Management.

Defaulting Control

If you set the Defaulting Control attribute to Default or No Default, then you can specify a deviation factor.

Variation sometimes happen during fulfillment, particularly with an item that varies in weight, such as fish, or your item contains water, the water evaporates over time, which results in less weight. You might need to change the quantity on the pick slip to reflect the actual quantity picked. If you set Defaulting Control to Default, then you can use the deviation factor attributes to specify the percent that you can set for the Secondary Picked Quantity attribute on the pick slip.

Assume you set up a conversion between the primary Each and the secondary Pounds as 1 Each equals 10 Pounds, and you then set these values:

Attribute

Value

Positive Deviation Factor

10

If you set the quantity on the order line to 1 Each, then Inventory Management will limit the secondary measure to a maximum of 11 pounds. Here's the math for that:

  • 10 pounds multiplied by 10% equals a positive deviation of +1.

  • 10 pounds on the order line plus 1 equals 11.

Negative Deviation Factor

10

If you set the quantity on the order line to 1 Each, then Inventory Management will limit the secondary measure to a maximum of 9 pounds. Here's the math:

  • 10 pounds multiplied by 10% equals a negative deviation of -1.

  • 10 pounds on the order line minus 1 equals 9.

If you set Positive Deviation Factor to 10 and Negative Deviation Factor to 10, then the user can set the value to 9, 10, or 11.

You must use a decimal value for each attribute.

If a change happens between the time you pick the item and ship it, then you can override the picked quantity and secondary picked quantity, but the secondary shipped quantity must not exceed the secondary picked quantity.

See Manage Residual Quantity with Dual Units of Measure.

Manage the Conversion

You must set up a conversion between the item's primary measure and its secondary measure. You can use the standard conversion for many items or you can set up a conversion only for the item. In this example you set up a conversion for the item:

  • 1 Pound equals 0.25 Each. If you order 1 Each of Sushi Tuna, then the value in the secondary Pounds measure is 4.

Try it:

  1. Go to Home > My Enterprise > Setup and Maintenance > Tasks > Search > Manage Units of Measure for Interclass Conversion.

    In this example you convert between a measure that's in the Weight class and another that's in the Quantity class, so you create an interclass conversion. If your measures are in the same class, then use the Manage Units of Measure for Intraclass Conversion task.

  2. On the Manage UOM Interclass Conversions page, click Change Organization, set the value, then click OK:

    Attribute

    Value

    Organization

    Fresh Fish 4 U

  3. Click Actions > Add, set the values, then click Save and Close:

    Attribute

    Value

    Item

    Sushi Tuna

    From Base UOM

    Pounds

    From Class

    Weight

    Conversion

    0.25

    You sell the Bullet Tuna species. Assume each of these tuna averages about 4 pounds each.

    To Base UOM

    Each

    To Class

    Quantity

  4. Set up a standard conversion.

    Assume you package fish in a case, one case contains 3 tuna, so you also need to set up a rule that converts case to each:

    • Go to Tasks > Search > Manage Units of Measure.

    • On the Manage Units of Measure page, click Actions > Add, set the values, then click Save:

      Attribute

      Value

      UOM Code

      CS3

      UOM Name

      Case of 3

      Description

      Case of 3

      Class Name

      Quantity

      Base UOM Name

      Each

    • Click Manage UOM Standard Conversions.

    • On the Manage UOM Standard Conversions page, click Actions > Add, set the values, then click Save and Close:

      Attribute

      Value

      UOM Name

      Case of 3

      Conversion

      3

      Base UOM Name

      Each

      Class Name

      Quantity

Set Up Pricing

Assume you use the Corporate Segment Price List, and the sale price for tuna on the commercial market is about $2 a pound

You specify the Pounds measure as the primary. This way, pricing will price it by the pound, not by each. You specify 2.00 USD as the base price, so you charge $2 for each pound of tuna:

  1. Go to Home > Order Management > Pricing Administration > Tasks > Manage Price Lists.

  2. Search for and open the Corporate Segment Price List.

  3. On the Edit Price List page, click Actions > Add Row, set the values, then click Save:

    Attribute

    Value

    Item

    Sushi Tuna

    Pricing UOM

    Pounds

    Line Type

    Buy

    Primary Pricing UOM

    Selected.

    Enabling this option tells Pricing to use the value that you set in the Pricing UOM attribute to price the item.

    Don't confuse the Primary Pricing UOM attribute with the Primary Unit of Measure attribute that you set for the item in Product Information Management. The Primary Pricing UOM attribute is specifically for pricing, not for the item.

  4. Click Create Charge, set the values, then click Save and Close:

    Attribute

    Value

    Pricing Charge Definition

    Sale Price

    Calculation Method

    Price

    Base Price

    2

    Allow Manual Adjustment

    Selected.

    Market conditions probably vary every day, so let your users adjust the price manually.

See Manage Price Lists.

Test Your Work

  1. Go to the Order Management work area and create a sales order:

    Attribute

    Value

    Customer

    Fancy Fish

    Business Unit

    Fresh Fish 4 U

  2. Search for and add the Sushi Tuna item on the order line:

    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

    Note

    • You use the order line to search for the item. It displays the quantity and price for the primary measure and the secondary measure.

    • You can't change the secondary quantity or secondary measure on the order line, but you can change the primary quantity and Order Management will automatically calculate the secondary quantity and the amount.

    • The order line sets the unit of measure to the primary, by default. It also displays primary and secondary attributes which makes it easy to see the conversion.

  3. Assume you change the Quantity to 3 and the UOM attribute to Case of 3:

    Attribute

    Value

    Quantity

    3

    This is the primary quantity.

    UOM

    Case of 3

    The primary measure of the item is Each. You can change it to any measure that's in the primary measure's class, such as Case of 3.

    Secondary Quantity

    36

    The order line uses your conversion rules to automatically calculate the secondary quantity:

    • 1 case contains 3 tuna.

    • 1 tuna equals 4 pounds.

    • 3 tuna multiplied by 4 pounds means each case weighs 12 pounds.

    • 12 pounds for each case multiplied by the primary quantity of 3 equals a secondary quantity of 36.

    Secondary UOM

    Pounds

    Sale Price

    2

    Line Price

    72.00

    Its the secondary quantity of 36 pounds multiplied by the unit price of 2 equals 72.00.

    Information Icon

    Let's you know that you're using dual measures for this item.

  4. Click Add, then notice that the sales order adds the values that you set on the order line. Here are a few more details you should take note of:

    Attribute

    Value

    Item

    Contains your dual measure item.

    Priced in Secondary UOM

    Contains a value:

    • Selected. Pricing priced the order line according to the value in the Secondary UOM attribute on the order line. In this example, that would be Pounds.

    • Not Selected. Pricing priced the order line according to the value in the UOM attribute on the order line. In this example, that would be Each.

    Order Management gets this value from the Pricing attribute that you set in Product Information Management.

  5. Click Submit.

    • The orchestration process schedules and reserves the item just like it does any other sales order. It schedules the order according to the order line's Quantity attribute and UOM attribute.

    • The secondary measure and the secondary quantity doesn't affect scheduling.

Assume the order number is 525940. Here's part of the order line:

Line

Item

Quantity

UOM

Status

Secondary Quantity

Secondary UOM

Price

Extended Amount

Assessable Value

Shipped Quantity

Secondary Shipped Quantity

Secondary Fulfilled Quantity

1

Sushi Tuna

3

Case of 3

Awaiting Shipping

36

Pounds

$2

$72

$72

empty

empty

empty