How to Use Unit of Measurement (UOM) Conversions in C2W Inventory
Learn how to purchase, store, and sell inventory using different units in C2W Inventory.
Why Use UOM Conversions?
Many businesses purchase, store, and sell the same product using different units. For example:
- Purchase screws by the Box.
- Store screws as Each.
- Sell screws as Each or Box.
Without Unit of Measurement (UOM) conversions, businesses would need to manually calculate inventory quantities every time stock is received or sold. C2W Inventory automatically handles these conversions behind the scenes while keeping your stock levels accurate.
What is a Unit of Measurement (UOM)?
A Unit of Measurement defines how an item is purchased, stored, or sold. Common units include:
- Each
- Box
- Case
- Pack
- Bottle
- Carton
- Kg
- Liter
- Meter
- Pallet
UOM Example in Action
Let’s use Screws as an example throughout this guide. Your supplier sells screws by the Box, but your warehouse stores them individually as Each.
1 Box = 100 Each
When you receive 2 Boxes, C2W Inventory automatically adds 200 Each to your inventory. No manual math is required because inventory is always tracked using your Standard Unit.
Understanding the Three Types of Units
Every Unit of Measurement configuration relies on three core unit types:
Unit Type | Purpose |
|---|---|
Standard Unit | Used to track and store inventory in your warehouse. |
Purchasing Unit | Used when creating and receiving Purchase Orders. |
Selling Unit | Used when creating Sales Orders (optional) |
Standard Unit
The Standard Unit is the base unit your warehouse uses to track inventory. Your Current Stock, inventory reports, and Average Cost are all calculated based on this unit.
Example: Standard Unit = Each
Purchasing Unit
The Purchasing Unit is how you buy the product from your vendor.
Example: If 1 Box = 100 Each, receiving 1 Box automatically scales up and adds 100 Each to your inventory stock.
Selling Unit
The Purchasing Unit is how you buy the product from your vendor.
The Selling Unit is only required if you sell products using a different unit than your Standard Unit.
Example: If inventory is stored as Each, but customers purchase by the Box, configure your Selling Unit as Box.
Setting Up Units of Measurement on a Product
To configure UOM settings for an item:
Field | Example Value |
|---|---|
Standard Unit | Each |
Purchasing Unit | Box |
Purchasing Conversion Quality | 100 |
Selling Unit | (Leave blank) |
Example Configuration Breakdown
Suppose your business purchases screws by the Box, stores them individually, and sells them individually:
- Inventory is stored as: Each
- Purchase Orders use: Box
- Receiving 1 Box adds: 100 Each to inventory
- Sales Orders use: Each (because the Selling Unit is blank)
If you later decide to sell screws by the Box instead, simply update Selling Unit to Box and Selling Conversion Quantity to 100. Sales Orders will now process by the Box, while your warehouse stock continues to track accurately by the Each.
Create Custom Units of Measurement
If the specific Unit of Measurement you need does not exist in the dropdown menu, you can create it directly:
The new unit will become immediately available for selection across your products. From this screen, you can also export UOM lists or delete units that are no longer in use.
Cost and Pricing Calculations
When configuring product pricing and valuation, C2W Inventory maps costs to their respective units:
Metric | Based On | Example Value |
|---|---|---|
Average Cost | Standard Unit | $1.22 per Each |
Purchase Cost | Purchasing Unit | $122.00 per Each |
Selling Price | Selling Unit | $200.00 per Box (if configured) |
How Average Cost is Calculated
Average Cost (Per Standard Unit) = Purchase Cost (Per Purchasing Unit) ÷ Purchasing Conversion Quantity
Using our example: $122.00 per Box ÷ 100 Each = $1.22 per Each