Use Case: Unit-of-Measure (UOM) Conversion
- Access to the Admin Console
- Knowledge of the conversion factors between the measurement units
- Understanding of which products require specific UOM conversions vs. global conversions
- Source and target units of measure must be defined in the system
Business Context:
Organizations that sell physical goods often need to manage products in multiple units of measure. A manufacturer may price raw materials by the kilogram but sell them by the pound to certain customers. A beverage company may maintain inventory in liters but sell products in gallons to wholesale distributors. Without automated UOM conversion, pricing administrators must manually calculate and maintain separate price entries for each unit of measure, increasing administrative overhead and the risk of pricing inconsistencies.
UOM Conversion Management enables organizations to define conversion rates between measurement units, allowing a single price definition to automatically convert to different units based on transaction requirements.
Overview:
Unit-of-measure conversion allows administrators to define conversion rates between different measurement units. UOM conversion is performed when the units included in the transaction differ from the primary unit of the item being transacted.
Scenario:
Company Profile: ABC Inc. is a chemical supplier that sells industrial chemicals to manufacturers across North America and Europe.
Business Challenge: The company maintains pricing for all chemicals in kilograms (kg), which is the standard measurement unit in their inventory system. However, customers in the United States prefer to purchase in pounds (lb), while some bulk customers order in metric tons.
Example: ABC sells Industrial Solvent X, priced at $50.00 per kilogram in the master price list. The company needs to support sales in pounds for US customers:
- The administrator configures a UOM conversion from Kilogram to Pound with a conversion rate of 2.20462 (1 kg = 2.20462 lb)
- When a US customer requests a quote for 100 pounds of Industrial Solvent X, the system calculates: $50.00 / 2.20462 = $22.68 per pound
- The quote displays the price as $22.68 per lb, with a total of $2,268.00 for 100 lb
- For bulk customers, a separate conversion from Kilogram to Metric Ton (rate: 0.001) allows orders in metric tons
Follow these steps to configure a UOM conversion from Kilogram to Pound:
After successfully configuring the UOM conversion:
- The Kilogram to Pound conversion rate of 2.20462 is now active.
- For Industrial Solvent X priced at $50.00/kg, the converted price is $22.68/lb ($50.00 / 2.20462).
- Sales representatives can now create quotes and orders in pounds without manual price calculations.
- Create additional UOM conversions for other measurement unit pairs (e.g., Kilogram to Metric Ton, Liter to Gallon).
- Set up product-specific conversions for items that have non-standard conversion factors.
- Review existing conversions periodically to ensure accuracy.
- To modify an existing conversion, click the More icon and select Edit.
- To remove a conversion, click the More icon and select Delete.