Multiple units of measure

The answer depends on how you want to count and track the inventory item, FLUSHDOOR. Right now, you are tracking these doors in terms of square meters. That is how your supplier sold it to you. (The 5 pcs notation was just a convenience. It did not enter the calculation.) But you are unlikely to sell a half square meter of a door. You would probably find it easier to count this inventory item in units of each (which is the default).

You can address this issue two ways:

  • Convert the unit price of the item to be what one door costs. In this case, that would be 530.29. There is no reason you have to use the same unit of measure as your supplier. Imagine someone buying soft drinks. The supplier probably sells by the case of 24 bottles. The merchant might stock and count them in units of bottles. This is very common. Accountants and auditors will have no problem with it. Your supplier’s invoice documents the relationship completely.
  • Establish two inventory items, one measured in each, the other in sqm. Buy the item measured in sqm from your supplier. Then use a production order to convert them to the item measured in each. This is more work, but results in purchase invoices matching your supplier’s sales invoices exactly.