Units of measure (UOM) allow you to track inventory in different units. For instance, if you purchase flour by the ton but use it in assemblies by the pound, you might display it on Sales Orders in tons but use pounds on work orders.
NetSuite doesn’t inherently understand units like pounds and tons. Instead, it allows you to create custom Unit Types and associated Units of Measure.
Setting Up Unit Types and Units of Measure
Unit Types
Unit types should broadly cover all units you might need to convert between. For example:
- Group pounds and tons into a unit type called Weight.
- Group inches and feet into a unit type called Length.
It’s important to note that conversions are only possible between units within the same unit type. You can convert between pounds and tons but not between pounds and feet.
A common mistake is creating a separate unit type for each individual measure. For example, creating one type for pounds and another for kilograms would prevent converting between them.
Base Units and Conversion Rates
When creating a unit type, designate one unit of measure as the base unit. For instance, for the Weight type, set pounds as the base unit, then define other units relative to pounds using conversion rates.
Assigning Unit Types to Items
Each item record requires selecting a Primary Unit Type. Choosing the correct primary unit type is critical because it cannot be changed later. Properly defining unit types makes this choice straightforward:
- For flour: primary unit type is Weight.
- For pallets: primary unit type is Quantity.
Example of Unit Type Setup
Here’s a practical example for Weight:
- Type Name: Weight
- Base Unit: Pounds (Conversion Rate = 1)
- Other Units: Kilograms and Tons with appropriate conversion rates.
Common Headaches and How to Avoid Them
Issue: Unable to Convert Between Units
Cause: Units belong to different unit types.
Solution: Ensure both units are within the same unit type.
Issue: Incorrect Conversion Amounts
Cause: Incorrect or inverted conversion rates.
Solution: Verify the conversion rate. Conversion rates should always be calculated as:
[ \text{Conversion Rate} = \frac{\text{Unit Measure}}{\text{Base Unit}} ]
Example:
- Base unit = kilograms, adding pounds: conversion rate should be ( \frac{1}{2.205} \approx 0.4535 ), not 2.205.
Issue: Unexpected Decimal Values
Cause: Base units chosen lead to fractional calculations.
Example:
Suppose you create a unit type called Count with a base unit of “72 Count”. Here’s how your UOM table might look:
| Unit Name | Conversion Rate | Base Unit |
|---|---|---|
| 72 Count | 1 | Yes |
| 144 Count | 2 | No |
| 36 Count | 0.5 | No |
| Dozen | 0.16666 | No |
| Each | 0.013888 | No |
If you have 10 “72 Count” items (720 each) and sell 144 each, you expect to have 576 each remaining (8 “72 Count”). However, because you’re selling by each, NetSuite calculates:
[10 \text{ (72 Count)} - (144 \times 0.013888) \approx 8.00128 \text{ (72 Count)}]
Ideal Setup: Set the base unit as “Each” with a conversion rate of 72 for “72 Count”. Due to system constraints, this isn’t always possible, and sometimes custom scripts are needed to adjust inventory post-sale.
Conclusion
Careful planning when setting up units of measure is crucial. Incorrect UOM configurations are common and can be challenging to fix since certain settings are irreversible after item creation. Correct initial setup prevents many headaches down the line.