# Unit of Measure and Conversion Factor in Sage 300 ERP

By | May 25, 2015

Today we will be covering a very interesting and important point about Unit and measure and conversion factor in Sage 300 ERP.
In sage 300 ERP Unit of Measure is used to add the units of measure (UOMs) in which you buy, sell, price, and stock your inventory items. Inventory Control lets users define all units of measure in a single place so the users can add them more easily to item records. UOM is also used in sales order and purchase order.

Units of measure can comprise of many variables like number of items, dry measures, liquid measures, or weights. User can add all stocking units and multiples of stocking units to the Units of Measure screen, and then choose the group of units needed for each item master.

In the same, different kinds of variables can be further added like Kg, MTR, LTR, Pair and so on, for that refer below screen.

To create the Units of Measures go to Inventory Control–> IC Setup–>IC Unit of Measure.
In this screen, user can define the UOM with its conversion factor. A conversion factor is a number used to change one set of units to another, by multiplying or dividing. When a conversion is necessary, the appropriate conversion factor to an equal value must be used.
Suppose in above screen shot, to convert a unit of bundle to bag, the appropriate conversion value is 20 bundle equal 1 bag. Hence, whenever the desired number of bundle is added, the system multiplies to the conversion rate of the bag and displays the rate / conversion.

You can define unit of measure in inventory items, for that refer the below screen.

Go to Inventory Control–>IC items and price list–>IC Items

• Create a new item and add the necessary details.
• Enter the units of measure by which you purchase or sell the item.
• Identify the stocking unit of measure for the item. And mark it as Yes.
• The default Unit of measures has a conversion factor of 1 and all other are defined in relation to the default UOM. It is necessary that each product must be stocked in a single unit of measure.  This is required since all transactions will be converted to this Stocking Unit for inventory valuation.

In this way user can define the UOM in the inventory module and later defined it to the inventory.