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U of M Schedule

  • 1.  U of M Schedule

    Posted 3 days ago
    I have a best practices/logic question behind U of M Schedule setup. #Manufacturing

    Currently we have one U of M for sale-able FG items, EACH. EACH is our only U of M that has 0 decimal places and EA, which we use for most raw goods, is 4 decimal places. This was the best practice guidance given to us 7 years ago when setting up GP and the necessary reasoning of that guidance is unknown. We do buy some items that are whole raw materials and will never be consumed as less than 1 item. Is there a reason that we wouldn't set the item up as EACH or another U of M that has 0 decimal places?

    The next part of this question is that we now have some items that can be used as a BOM component or sold as a FG. What U of M / decimal place setting would you give these items? Again, when purchased and consumed or sold, it will always be done in whole units.

    Overall we're trying to figure out when & why we want to have multiple decimal places. Clearly if we buy 1 package of 1000 screws, we'll want to consume them at less than the original whole value. But if we buy 1 box, and it will always be 1 box with or without extra items put into the box, is there a reason that the 1 box should have any decimal places?

    Thanks in advance!

    Kristy James
    Financial Controller
    Dairyland Electrical Industries, Inc
    Stoughton WI

  • 2.  RE: U of M Schedule

    Posted 3 days ago
    Hi Kristy,

    I think a leading thought before discussing Units of Measure is to realize that all manufacturing companies are different and operate differently. Even when we look at two companies who do the exact same thing they often times do it differently. For that reason there really isn't a clear cut answer for what is the best way. I will give you some insight and some suggestions but at your organization you need to determine what will work best for you, for a variety of reasons. Industry standard may say to use 4 decimal places but if you have scales that only weigh to 2 decimal places there wouldn't be any value or sense in using 4 decimals for instance, on quantity.

    When setting any item up you have to consider all ways that the item will be used: Sales, Purchasing, and Manufacturing. If at any point in any process you need to consume or use said item in less then a whole quantity you would need to assign a Unit of Measure schedule which includes decimal places. As for the number of decimals needed that would be indicative of how you can measure such sales and / or consumption.

    As for the schedule itself I always favored a more generic approach, EACH / EACH-DEC / POUND / GALLON / ETC. From each of those you can build the appropriate sub-units, PALLET / PAIL / BUNDLE / FOOT / METER / ETC. In most situations EACH could be looked at as having 0 decimal places and EACH-DEC having some number of decimal places. Most typically base units of things like POUND or GALLON would have some decimal place assigned to it.

    I hope this helps. Please feel free to reach out to me directly for a more detailed conversation if you would like.

    Take Care,

    Jeremy Adkins-Hill

    Jeremy Adkins-Hill
    Dynamics GP Administrator
    Groupe Stahl
    Marietta OH

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