The Impact of Changing Item Selling Unit of Measure and Ratio
Version: 7.x & Up
Q - We changed item file from Case Pack CA (field 14) to Each, EA, See sample screen below:
It changes our invoices that were already closed and posted. The following is the original invoice that was issued on Oct. 16 2023:
Our questions are:
- Every time we change the item file does it effect the invoices that we already posted?
- Is there any way we can toggle this without changing previous invoices?
A - This is a known issue if you change an item selling unit of measure and ratio. Here is the issue. In Item Master, we store both Stocking and Selling UOM and the ratio. For example:
Stocking UOM = EASelling UOM = CS
Selling to Stocking Ration = 72
On the other hand, in order or invoice line item, we only store line item “unit price” and “unit of measure.” The unit price in order/invoice line item is saved as follows:
Qty = 1
UOM = CS
Unit Price = 4.65 (per stocking UOM)
Note the unit price is in the stocking unit price. During the printing of the invoice from order line item or invoice line item, the system calculated the selling unit price by comparing the line item UOM with the Item Master and found that it matches with the “Selling UOM” (CS), and hence it calculated the real unit per CS = 4.65 * 72 = 334.8.
Now if we change the Item Master to the following:
Stocking UOM = EA
Selling UOM = EA
Selling to Stocking Ratio = 1
during the printing of invoice from order line item or invoice line item, the system now has a dilemma. We can’t find the ratio for UOM “CS” and it is no longer available in the Item Master. Therefore, the system can only assume the ratio to be 1. Hence per CS = 4.65 * 1 = 4.65.
Knowing this limitation, if you wish to start selling this item from CS to EA, the best strategy is to create a new item number with the following:
Stocking UOM = EA
Selling UOM = EA
Selling to Stocking Ration = 1
Transfer the inventory from the old item number to the new item number. Then mark the old item number as “obsolete.” The bottom line is the item number for CS should be different from the item number for EA. Enforcing this rule internally will avoid confusion.
EMK