What is Multi UOM and how is it handled in Xoro?
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Multi UOM, or Multi-Unit of Measurement, refers to a system that enables the use of different units of measurement for the same item or product. It proves beneficial when products are purchased or sold in units different from those stored within the system.
Consider the food industry, where an item may be purchased in kilograms for wholesale purposes but sold in grams for retail purposes. This means that the item might be stored in the system in a particular unit of measurement but sold or purchased in a different UOM.
A Multi UOM system facilitates easy conversion between these units of measurement, without requiring manual calculations or conversions.
Having multiple units of measure for an item can help in the accurate tracking of inventory, better cost management, and efficient order processing. However, it is important to ensure that the conversion factors between the units are accurately defined and consistent throughout the system to avoid confusion or errors.
To implement the Multi UOM, we need to define Units of Measurement and the factor used for the conversion for an item. This information is then used while making a transaction (sale or purchase). In Xoro, these are defined in the Multi UOM Mapping module.
Before looking at how to create Multi UOM Mappings, let’s understand some basic terms used for the mapping.
From UOM: This is the unit of measurement in which the item is sold or purchased.
To UOM: This is the unit of measurement in which the item is stored in the system.
Factor: This is the numerical value that is used for the conversion of measurements from one unit of measure (From UOM) to another unit of measure (To UOM)
Let’s understand this with an example.
Let’s say that the inventory is stored in Kilogram (KG) in your system and it is sold or purchased in Gram (GM). So, in this case:
From UOM: KG
To UOM: GM
Factor: 0.001
That means that for every 1000 units sold or purchased, 1 unit will be depleted from or added to the system.
Please follow the steps below to create Multi UOM Mapping.
Navigate to the Multi UOM Mapping module.
Select the Item for which you want to create the mapping.
Then, select the From UOM and To UOM, fill in the Factor value, and click on “Add Mapping”.
You will be asked for confirmation.
Press OK to create the mapping.
*Please note that you can create multiple mappings for an Item.
Once the UOM Mapping is set up, it's important to define the UOM specifics in the item details. Here’s a step-by-step guide on how to do that:
Open the item from the Item Centre.
Navigate to the UOM tab.
Choose the SKU UOM, which represents the unit in which the item is stored in the system.
Next, select the Allowed Purchase UOM(s) and Default Purchase UOM.
The Allowed Purchase UOM(s) are the UOM(s) in which you can purchase the Item based on the UOM mapping. For instance, if you have created a mapping from KG to Gram, you can purchase the Item in both Gram and Kilogram. Default UOM is the default purchasing unit of measurement for the Item. Please note that you can add multiple purchase UOMs
Next, select the Sell Purchase UOM(s) and Default Purchase UOM.
The Sell Purchase UOM is the UOM(s) in which you can purchase the Item based on the UOM mapping. For instance, if you have created a mapping from KG to Gram, you can sell the Item in both Gram and Kilogram. Default UOM is the default selling unit of measurement for the Item. Please note that you can add multiple sell UOMs as well.
After you have defined the UOM on the Item, you can use different units of measurement for sale and purchase.
How does it work?
Let’s understand the working of the Multi UOM with the example item mapped earlier- GWB1314-1-BEIGE. As per the mapping, the item is stored in Kilograms in the system and sold and purchased in Grams. Suppose we are creating a Purchase Order for this Item.
When adding the Item to the Purchase Order, you can see the Default Purchase UOM beside the Qty field. This indicates the UOM in which you are ordering the Item.
Put in the value corresponding to that UOM. For instance, let’s suppose you are ordering 1000 grams of the item.
You can see the UOM and the UOM Factor in the Purchase Order Details section.
As per the mapping, while 1000 grams are being ordered, your system will record 1 unit (i.e. 1 kilogram) inventory. This can be seen in the Item Inventory Snapshot.
