With Multiple Units of Measure, businesses can track the same inventory item in different units depending on the transaction type. For example, if you purchase cable in pallets, stock it in spools, and sell it in feet, this feature helps you manage all those units efficiently. It allows you to:
- Define multiple units under a Unit Type.
- Set a base unit for each unit type and define conversion rates for other units in that type.
- Automatically default the appropriate unit on different types of transactions, such as purchase orders, invoices, inventory adjustments, and more.
Key Benefits:
- Flexibility: You can set up custom units based on your business needs. For instance, you might use Inch, Foot, Yard for length-based items or Case, Box, Unit for other products.
- Accuracy: It helps ensure that quantities are correctly managed in different processes like stocking, selling, and purchasing.
- Simplified Transactions: When entering transactions, the system automatically applies the correct unit based on the unit type defined in the item record, reducing manual adjustments.
Example:
Suppose you manage cable inventory. You may:
- Purchase cable in yards.
- Stock it in feet.
- Sell it in inches.
In this case, you’d set up a unit type called Length with Inch, Foot, Yard as units. You can assign Inch as the base unit, and then define the conversion rates (e.g., 1 foot = 12 inches, 1 yard = 36 inches).
Using Multiple Units of Measure in Transactions:
- Purchase Orders: Automatically default to the purchase unit (e.g., yards).
- Invoices: Automatically default to the sales unit (e.g., inches).
- Inventory Adjustments: Use stock units (e.g., feet) for tracking purposes.
Enabling Multiple Units of Measure
To use this feature, an administrator needs to enable it in your NetSuite account. Here’s how:
- Navigation: Go to Setup > Company > Setup Tasks > Enable Features.
- Accounting Tab: Under the Accounting subtab, ensure the Multiple Units of Measure box is checked.
- Save: Once enabled, this feature will be available for use in item records and transactions.
Setting Up Units of Measure
After enabling the feature, you need to set up the units of measure that will be used for your items.
- Create Unit Types:
- Go to Lists > Accounting > Units of Measure > New.
- Enter a Type Name (e.g., “Length”).
- Define individual units (e.g., Inch, Foot, Yard).
- Mark one unit as the Base Unit (e.g., Inch).
- Define Conversion Rates:
- Enter the Conversion Rate for each unit in terms of the base unit. For example, if Inch is the base unit, enter 12 for Foot (since 1 foot = 12 inches) and 36 for Yard (since 1 yard = 36 inches).
- Save the Units: Once all units are added and their conversion rates defined, click Save.
Assigning Units of Measure to Items
Once the units of measure are set up, you can assign them to inventory items.
- Go to Item Records: Navigate to an item’s record and assign a Units Type (e.g., Length) to the item.
- Define Default Units:
- Purchase Unit: The unit used when ordering the item (e.g., yards).
- Stock Unit: The unit used for stocking and inventory adjustments (e.g., feet).
- Sales Unit: The unit used for selling the item (e.g., inches).
Once defined, these units will automatically apply in transactions.
Notes:
- Units Type Editing: Once a units type is assigned to an item, it cannot be changed, except to add more units.
- Base Unit Changes: You can change the base unit by editing the unit type, but you must clear the current base unit first.
- Statistical Accounts: You can also assign units of measure to non-monetary or statistical accounts for more advanced reporting.
Example Workflow:
- A company managing cable inventory purchases cable in yards, stocks it in feet, and sells it in inches.
- You set up a units type called Length, assign Inch as the base unit, and define conversions for Foot (12 inches) and Yard (36 inches).
- When you create a purchase order, it defaults to yards. When you sell the cable, the system automatically uses inches, and for inventory adjustments, it defaults to feet.