When working with suppliers and warehouses, the way you order products might differ from how you store them. For example:
You might order fabric in meters from a European supplier but track it in yards at your US warehouse.
You might order fabric swatches in yards, but your warehouse tracks them as individual units.
Settle makes this easier by automatically converting between your Ordering Unit of Measure (UoM) and Inventory UoM, ensuring your records are accurate without extra manual calculations.
How does it work?
Editable fields for conversions
In Settle, you can define two optional fields in your Catalog Item's Purchase Source:
Ordering Unit of Measure: The UoM you use when placing purchase orders (e.g., meters).
Conversion Rate: The ratio to convert the Ordering UoM to the Inventory UoM (e.g., 1.0936 yards per meter).
Settle uses these fields to manage conversions automatically, ensuring consistency across orders, inventory, and invoices.
What happens when you use UoM in Settle?
Catalog Item
Settle stores your Inventory UoM on the Catalog Item directly. This is the default unit that is used throughout the app.
Purchase Orders (POs)
When creating a PO, Settle pre-populates the Ordering UoM based on the vendor and catalog item.
For vendors with multiple Purchase Sources, you can select the appropriate source (and its specific UoM) when adding items to a PO.
Goods Receipt Notes (GRNs)
GRNs (records of received goods) automatically show quantities in your Inventory UoM.
Invoices
Invoices display quantities in the Ordering UoM for easy reconciliation with the supplier.
For 3-Way Match, Settle converts PO and Invoice quantities into the Inventory UoM to compare against GRN quantities.
Inventory Screens
The Stock Screen, Catalog, and Location Details always display inventory in the Inventory UoM, ensuring consistency across all inventory tracking.
Inventory Ledger and Batches
All inventory records are stored in the Inventory UoM, ensuring a unified system for reporting and analysis.
Example
Imagine you order Green Velvet Cloth from Vendor ABC in Europe:
Catalog Setup:
Inventory UoM: Yards
Ordering UoM: Meters
Conversion Rate: 1.09361 yards per meter
Purchase Order:
When you create a PO for Vendor ABC, Settle automatically sets the UoM to Meters.
Goods Receipt Note:
When you receive the cloth, the GRN will show the inventory in Yards.
Invoice:
The invoice will display the quantity in Meters for easy reconciliation with Vendor ABC.
Stock Screen:
Your inventory will always be displayed in Yards, no matter how it was ordered.
Why is this helpful?
Global Compatibility: Handle suppliers and warehouses with different UoM effortlessly.
Automatic Conversions: Avoid manual calculations with built-in UoM conversions.
Accurate Inventory: Keep inventory records consistent across your supply chain.
Streamlined Operations: Manage POs, GRNs, and invoices seamlessly without extra hassle.
FAQs
Can I leave the UoM and Conversion Rate blank?
Yes! These fields are optional. However, if you enter one, you’ll need to enter both.
What happens to landed costs?
Landed costs on POs and in your catalog will still reflect the Ordering UoM. For example, landed costs per meter for Vendor ABC will remain unchanged, even if inventory is tracked in yards.
Will this change how I reconcile inventory?
No. Settle automatically converts between UoM for reconciliation, ensuring accurate comparisons between POs, invoices, and GRNs.