Unit of Measure (UOM) gives meaning to an inventory quantity.
What is Unit of Measure?
Units of Measure is the business term used to describe how an inventory item (part) is counted.
Not only do UOM clarify the number of an inventory quantity, they also have a large impact on the financial reporting and definition of your business processes.
As a general rule. Assign each inventory Part a UOM that makes the most sense for how your operations interact with the item.
If it is a Part that you use - Which UOM best describes the quantity you use?
If it is a Part that you sell - Which UOM best describes how you sell it to your customers?
Using a unit of measure of "each" (commonly abbreviated as 'ea') can provide flexibility when the inventory quantity does not require an explicit scientific measure (Mass, Volume, Length). For example if the inventory part is a liquid in a 1L bottle, it might make more sense to know there are 5 ea (bottles) rather than track the inventory as 5L.
UOMs in BOMs :)
Updated 5 months ago