Using Units of Measure on Item Card Setups

Times are tough and poor Gru has gathered all the minions together to inform them that production on new minions has to stop and a full reconciliation of component parts has to be done. The Minion factory is shutting down.  Current Sales orders will be fulfilled and then the machines will lie dormant.

Sad GruMinionsad

Now the Foreminion has a problem. He will have to report to Gru on the component parts that make up a minion. Don’t worry though Foreminion. We use NAV in the factory so we can pull this information up easily.

Before we tell you how, we will first go through how minions are produced. We can’t go into too much detail on this blog but we can tell you that minions are made up of a substance called gloop.

Not all minions are equal and so for this exercise we will concentrate on the Dave minion.  To make a Dave it takes 1.4576 litres of gloop.  Other minions use different quantities of raw material.  We all know what happens when the wrong materials are used…

6a03e6ff5f160e97094eb27481818f95

A single unit of measure for a minion is EACH.  Gloop is measured in Millilitres and minions are sold in boxes.  This could get very confusing.  Luckily NAV takes care of the calculations on measurements and costings for you.  That’s right, you can set up a base unit of measure, the sales unit of measure and the purchase unit of measure.  One thing to remember is that you will need to put in the calculated amounts for the units of measure.

Let’s take a look at the item cards so we can see these calculations…

UOM Minion item cardMinion Dave Sales purch UOM

Let’s also look at the Unit of Measure setup

Minion UOM

The foreminion needs to report on the number of individual minions that are currently in the factory.  This includes any Minions that are in production, the number in stock and the number on demand.  We can’t disappoint the customers and not deliver their minions so we need to ensure that we fulfil orders.  As minions are sold in boxes, you can see that the demand for 9 boxes across the two sales orders translates to a demand to produce 90 minions each.

Sales Line boxes

The Item Availability by Location report shows us the total number of minions by the base unit of measure so I always have an overview of where my stock is.

item avail by location minion

One of the other really good things about keeping track of your item by the lowest base measurement is that if a customer has an issue with one minion in the box, they can return it and you can still ship out one minion as a replacement by changing the unit of measure to EACH on the shipment.

As we are shutting the factory down we also need to take stock of the Gloop that we require to complete orders/will have spare to sell on.

Our production orders for the Dave minion call for Gloop so the requirement will show up on the Production Order Components.

Prod order components

The Projected available balance will take this into consideration.  Note that even though we use litres as a measurement, when setting up the Production BOM card, the foreminion decided it would be easier to keep the measurements on the BOM card to ML.  If he had chosen to use Litres, he would simply have had to make sure that he added the ML to L quantity calculation to the Item card and the system would take care of all other calculations.

We can see from the Items by Location report for Gloop that we are going to run short of this to fulfil orders.  Let’s hope that Gloop incorporated has a few more litres for sale.

Item avail by location gloop

 

Remember:  When dealing with any measurement that can be calculated in fractions, remember it is always better to make the base unit of measure the lowest unit possible.  Because the Gloop is measured in ML, there is little chance of fraction rounding and therefore skewing of the item costs.

Note:  If you wish to hire any minions, please contact Gru.  The poor little fellows will be out of work soon.

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Posted in Inventory, Item Setups, Nav, NAV 2013, NAV Tips
One comment on “Using Units of Measure on Item Card Setups
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