Unit of measure

1

Back again with what may be a silly question.
Have managed to input my inventory, no issues there.

However where I think I have an issue.

I buy my product in bulk lots of say 10kgs
These I resell in containers of say 10ml

I cannot see where I can set up what unit I buy in and what unit I sell in.

I could of course just put all in ml however I can’t see where to put the unit of measure that I buy or sell it in.

I have added a custom field but I do not think that is going to make any difference when it comes to the inventory kitting so as to reduce the kit item etc.

Anyone with advise on this one

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2

You have two options

  1. Record your purchases in ml instead of Kgs, you will have to calculate the value manually

  2. Create a new item and use production orders to convert from the bulk purchase item to the smaller sale size

Do you prepare the sale items prior to the sale or do you fill them as they are sold?

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3

Thanks Joe, Yes I too thought option 1 would do the trick. but that does not take into account that we have 3 different sizes for sale 10ml, 30ml & 50ml. So would have to know how many are made up of each before entering into inventory, herein lies a problem in that we also sell on demand value. If there is a big demand for say 30ml we produce in 30ml which would be no good if we had already filled 10ml

Option 2 looks promising. Yes creating a new Finished Good using the inventory items that make that up.
If I sell an item as EACH (being the finished item) Qty is 1: Would the items that make it up have to be each or can they be in the KG (or ml) that makes up that Qty of each (being 30ml)

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4

Items in the bill of materials can be in any quantity and unit of measure. The concept is that you can produce 100 each of 10 mL-sized bottles from 1 L of input material (which could be purchased in 1000 L drums and accounted for in liters. Think of it like producing 5 loaves of bread from 3 kg of flour.

Another possibility is to use inventory kits. A 10 mL kit could be defined as including .01 L of the inventory item. Kits do not exist until you sell them, meaning you could forego production orders. And if someone wants to buy 30 mL, you can either sell them 3 each of the 10 mL kit or define a 30 mL kit, as well. Inventory kits were originally conceived to sell things together that were stocked separately. But they work just as well for selling fractional items. You will lose the ability to track profit margin, though, because kits are left out of reports. That may or may not matter to you.

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5

Thanks Tut, question when you define the parts of the kit to make up the Finished Goods, does that reduce the stock qty of the parts used. I ask this as some systems do not !!! I need this for stacktake and reordering.

Thank again

6

I suggest setting up a test busines and playing with various approaches

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7

Inventory kits reduce stock when the kit is sold. Read the Guide: Use inventory kits | Manager.