variable order unit

[Former Member]

Hi,

any one please tell me the difference between the the variable order unit values active(1) and active with own price(2)?

Regards,

Prabha

[amitbakshi3 · Accepted solution]

Hi,

If you select the Variable Order Unit 1, in Purchasing View of Material Master, the system allows you to make purchases in any of the UOM defined in Material Master in Base UOM and Alternate UOM.

A Business Scenario :

You have a Material # 1XXXXXX (say, Steel Sheet) with a Base UOM as Number and the business scenario demands you to make a purchase in KG as your Vendor charges the cost in Kg, whereas your Sales Dept wants to do the Invoice in Set. (say, 2 Numbers per set)

Now, in Material master maintain MM02, Under Basic Data Screen Base UOM = Number

Go to additional Data Tab , Under UOM Maintain (You would need to define Alt UOM)

10 Kg = 1 Number ( for Purchasing) > You can Create PO in Kg or Number or Set ( any UOM)

1 Set = 2 Number ( for Sales) > You can Create Sales Order in Set (Any UOM)

Select Var Order Unit = 1 in Purchasing View, you can make purchase in any of the UOM and the system does the conversion automatically. Further, if there are specific Prices are maintained for each of the UOM, then the system will pick up respective UOM Prices as well.

In this scenario, the system Considers :

Base UOM = SKU (Stock Keeping Unit)

Pur UOM = Kg ( for Purchase Order)

Sales UOM = Set ( for Sales Order)

You can also maintain Issue UOM (in General Plant Data 1 View) if required.

You can do transactions as per your business needs and the system and can specify conversion for Sales, General Plant Data1 and Purchase in respective Views. It gives a great flexibility to :

Create PO in Kg or Number or Set (any Unit)

Create SO in Set or Numbers or Kg (any Unit)

GR / GI in Kg or Number or Set (by changing the UOM at MIGO) (any Unit)

The System will keep track by converting the UOM and relate it with Base UOM. Please check my earlier post:

Best regards

Amit Bakshi