Purchasing Units for Stock Items
Overview:
In some cases the Perpetual stock for an item is tracked in a specific unit, and purchases from different suppliers are in another unit of measure. Purchasing Catalogues can be used to easily manage this scenario. The Stock Multiplier column on each Catalogue line must be populated.
Example:
Stock Item Petrol has a Litres unit.
This item is issued to Jobs in Litres as well.
There are two suppliers from which Petrol is purchased:
Supplier A sells it to in gallons
Supplier B sells it in tanks
My company purchases petrol from:
Supplier A with a PO requesting petrol in gallons, and it will be receipted in gallons as well.
Supplier B with a PO requesting petrol in tanks, and it will be receipted in tanks well.
The system will convert these purchases into the stock item's unit sing the Stock Multiplier value from the Catalogue line, so the right quantities are displayed when checking Stock-on-order and Stock-on-hand.
Stock multiplier column will have the equivalent of the Stock Item's quantity for each Purchased quantity.
If Inwards Goods are processed for Catalogue Lines linked to a Stock Item and have a Stock Multiplier, the receipted quantity is multiplied by the Stock Multiplier to calculate the correct quantity to add into the Stock (stocking units).
Following the example above:
To purchase from Supplier A, a Catalogue line with a Petrol Stock Item and a Stock Multiplier = 2000, will be used on the Purchase Order. Each tank holds 2000 litres of petrol. So on Inwards goods receipt, if I receipt 2 tanks, the system will multiply it by 2000, and add 4000 litres of Petrol to the Stock.
Similarly, to purchase from Supplier B, another Catalogue line with a Petrol Stock Item and a Stock Multiplier = 0.26 should be used, in order to have the right calculation of Stock quantities (1 lts = 0.26 gallons).
Screen Guide:
For Purchasing Units to work, each Catalogue Line must be linked to a Stock Item and have a Stock Multiplier value.
If the Purchasing Unit is the same as the Stock Unit, Stock Multiplier is not needed.
If there is more than one Purchasing Unit for a Stock Item, then one Catalogue line must be created with the appropriate Stock Multiplier value.
When using Stock Multipliers, quantities are expressed in the Purchasing Unit, all along the purchasing process: on AP Vouchers (PO Lines tab, Stock Receipted tab, This Voucher tab), AP Invoices, Inwards Goods. Conversely, when it comes to issuing these Stock units, the Stock issues will be on the Stock Item unit, not the purchasing unit.