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Purchasing UOM Group & Purchasing UOM

1 CASE

In this document we are going to cite an example of an item which is purchased as a pack of ‘n’ quantity. In such a case, in the presence of properly configured item definition of item in the master will help us calculate stock and pricing in purchasing document.

Item considered in this example is 250 Ml Bottle.

Please follow below mentioned steps.

  • 2 UNIT OF MEASUREMENT & UNIT OF MEASUREMENT GROUP DEFINITION

  • Administration –> Setup –> Inventory –> Unit Of Measure –> Enter “Bottle” as Uom Code and “Bottle” as Uom Description. Click On “Update” to accept the changes
  • Administration –> Setup –> Inventory –> Unit Of Measure Groups –> Enter “Box” as Uom code and “Box” as Uom Description.
  • Click on “Group Definition” –> Enter “Box” as Base Uom –> On the next row, under “Alt. Qty, enter 6 –> Alt UOM, enter “Bottle”
  • Click Update to accept the changes in “Group Definition Window”
  • Click update to accept the changes in “Unit Of Measures Group Window”
  • Till here you have defined a unit of measurement “bottle” and a group “box” meaning, 1 box contains 6 bottles.

3 CREATION OF ITEM

Inventory –> Item Master Data

  • You can create a new item or select an existing item
  • In the header part, select the UOM Group as “Box”
  • Under the purchasing tab, select the purchasing UOM as “Box”

4 HOW SAP B1 HANDLES THE PRICING AND INVENTORY

     Scenario One

  • Purchasing A/P –> Purchase Order
  • Select the vendor
  • Select the above item i.e. “250 Ml Bottle”
  • By default the Unit of measurement will be Box.
  • Enter a quantity 10 i.e. 10 boxes. Now lets assume that each box costs 10/- Rs.
  • To see the pricing, enter total price qty * rate i.e in our case it would be 100 (10*10).
  • The Unit price will be automatically reflected i.e. 10/- per box.
  • Also if you notice the inventory tab in “item Master”, you will see there is increase in qty by 10 in the “ordered” tab.

     Scenario Two


  • Purchasing A/P –> Purchase Order
  • Select the vendor
  • Select the above item i.e. “250 Ml Bottle”
  • By default the Unit of measurement will be Box.
  • Change it to “Bottle”
  • Enter a quantity 60 i.e. 10 boxes. Now lets assume that each box costs 10/- Rs.
  • To see the pricing, enter total price qty * rate i.e in our case it would be 100 (10*10).
  • The Unit price will be automatically reflected i.e. 1.67/- per bottle
  • Also if you notice the inventory tab in “item Master”, you will see there is increase in qty by 10 in the “ordered” tab.
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