Value based unit of measure versus quantity based

[former_member605222]

Hello all,

I am trying to figure out the real difference between quantity based and value based units of measure in regards to commitments and purchasing. I understand that with quantity based UOMs, the commitment will be reduced on a quantity basis and that with value based, the commitment will be reduced by the value.

My main issue is figuring out the benefit of a value based UOM. In service POs for instance, using a value based UOM makes sense to me as you can enter specific values in service entry sheet. However, in my scenario, I have a PO line item with a quantity of 1 and amount of $500. However, if I want to enter more than one service entry sheet for a partial amount, I have to have the Unlimited Delivery box checked, else I get an "quantity exceeded" error.

What is the point of having a value based UOM if the system still checks the quantity and not just the value of the service entry sheet?

[Lakshmipathi]

In case of quantity based contract, you can set a maximum target quantity for a specific period and similarly, for value based contract, you can set some maximum value beyond which, the total payable amount to vendor should not exceed and system should not create any new document.

[former_member605222]

Thank you for your response Lakshmipathi. Where do you set quantity limits in a PO if you are using a quantity based UOM? Is there anything more that simply entering the quantity on the line item? As for value based UOM, is the only way to set a limit by maintaining amounts in the "Limits" tab? One of the issues I've run into is trying to create a PO in SRM as I cannot find any fields in SRM to set limits like you can in ECC.

[Lakshmipathi]

You have not indicated in your original post that you expect some function in SRM and also, you have not selected the related tag which I have done now.

[former_member605222]

Hi Lakshmipathi, my main question was a general one dealing with value based UOMs, not specific to SRM. However, I had a follow-on question about SRM that I was curious if you knew anything about. I believe the Purchasing in MM tag still applies, but thank you for adding the SRM tags.