MISys Manufacturing – Stock Unit vs. Purchase Unit

MISys allows users to set a specific unit of measure for each supplier of an item that might be different than the Stock Unit of Measure (UoM) of that item. This is referred to as the Purchase Unit of Measure (PUoM).

The difference between UoM and PUoM is an important one to understand in many levels. Let’s use an example to demonstrate; If an item has a UoM identified as pounds (lbs.), but Supplier A sells this item in bags of 50 pounds, then we setup the supplier as below:

It is important to note that the only time the PUoM will be used is in the Purchase Order issued to this supplier. Everywhere else, it will be the UoM that is referenced. A good example of that is in the screenshot above. The ‘Recent Cost’ of $0.55 showing for the item is the cost per UoM (i.e., lbs.) and not the PUoM (i.e., bags). When the Purchase Order is issued for this item from Supplier A, the ‘Ordered’ quantity will be in BAGS (e.g., 10 for 10 BAGS), but once received, it will be received as 10 BAGS x 50 lbs./BAG = 500 lbs.

Also, the PO Price will be calculated first by multiplying the ‘Recent Cost’ of $0.55 by the conversion factor of 50 lbs./bag to calculate the cost be PUoM and then the result will be multiplied by the ‘Ordered’ qty. to calculate the ‘Extended Cost’, resulting in $0.55/lbs. x 50 lbs./BAG x 10 BAGS = $275.

If you have any questions about setting up and using Stock Unit vs. Purchase Unit in your MISys system, please feel free to contact us here at Central Nervous Systems.

Arda