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Setting Up Units of Conversion

Units of conversion help to track of the relationships between SKU items, inventory items and purchase items, and to determine profit margins.

To create an inventory item that specifies units of conversion:

  1. On the Management Menu, click Inventory. The Inventory page appears.
  2. Click Add New.
  3. Complete the item details as described in the previous section. Select either the Stocked Item or Food/Beverage Item Type.
  4. Select a Unit of Conversion. Or, to edit or create a new Unit of Conversion:
    1. Click the Edit link.
    2. The Unit Conversion Management page appears.
    3. Select a Unit Conversion Table from the dropdown list, or click Add New to create a new Unit Conversion Table.
    4. Enter a Unit of Conversion Name.
    5. Select Units from the dropdown If the unit type you would like to use is not listed, you can add a unit type in Global Settings (in the Inventory section, click Units of Measure, and then click Add New). Make sure to enter all unit types used.
    6. Enter numeric values in the Quantity fields.
    7. Click Save.
  5. Click the Add Units Pricing link. You must fill in one of the Price or Cost fields for each Unit of Measure, in order to be able to select different Units of Measure from the SKU/Inventory/Purchase Unit dropdown menus.
  6. Select a Unit Type.
    1. When you select Whole Units, the system will not keep track of partial SKU units sold. Choose this option if you are dealing with non-devisable units. For example, for golf balls, which come in packs of three, you should select Whole Units, as each golf ball sold would represent .33 of the pack, and you would not want the system to keep track of the remaining .1.
    2. When you select Fractional Units, the system will account for partial SKU units sold. Choose this option when remaining units can still be combined and used. For example, a bag of flour may contain 10.5 cups, and if your units are one cup each, you will still be able to make use of the .5 cup by combining what remains of two bags.
  7. Select Units of Measure from the SKU/Inventory/Purchase Unit dropdown menus:
    1. SKU Unit (Stock-keeping Unit) is the Unit of Measure in which an item is sold to the customer (e.g., single).
    2. Inventory Unit is used to keep track of inventory (e.g., box).
    3. Purchase Unit is the Unit of Measure in which items are purchased from suppliers (e.g., case).
  8. Complete the remaining item information, and then click Save.

 

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