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author's profile photo Former Member
Former Member

purchase order price unit vs purchase order unit

Hi all,

I am new to MM....currently going thru the certification materials...can any one explain me the exact difference between the purchase order price unit and purchase order unit ..

Thanks& Regards,

Hari.

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    author's profile photo Former Member
    Former Member
    Posted on Nov 23, 2007 at 10:13 AM

    Hi Hari,

    Purchase order price unit is the basis of unit price

    For example your rate is R/s/-2 Per (1or 2 purchase order price unit)

    And purchase order unit is when you have different unit of measure than your

    Base unit of measure for a material

    For example :-Oil your base UOM is Liter but you order as per Barrel

    so your Purchase order unit is Barrel

    And you maintain relation between these two in material master additional data

    1Barrel=how meny liters

    Hope its clear to you

    BR

    Diwakar

    reward if useful

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 23, 2007 at 10:08 AM

    Example will help u

    Consider an order for screws. The screws are ordered by the box. However, the vendor's price is $10 per kg, and 1 kg of screws fills 24 boxes.

    A purchase order for 24 boxes of screws would contain the following information:

    Order quantity 24

    Order unit Box

    Gross price per unit $10

    Order price unit (number) 1

    Order price unit kg

    Conversion factor 24 boxes = 1 kg

    reward if usefull

    Message was edited by:

    Umakant Bhangale

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 23, 2007 at 10:25 AM

    HI

    For eg In a PO if u see 21 gal (ordered quantity ) and 1 USD / LB as price

    here order price unit is LB

    order unit is gal.

    base unit of measure and stock keeping unit may be different or same to the ordered qty.

    Regards

    Reddy

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