Units of Measure

Chapter 3

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R12 Units of Measure

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Objectives

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Units of Measure

Unit of Measure
You define units of measure for tracking, moving, storing, and counting items.
Primary Unit of Measure
When you define an item you establish a primary unit of measure. The system tracks on-hand
quantity and calculates transactions based on the primary unit of measure.
Secondary Unit of Measure
You can optionally establish a secondary unit of measure (dual unit of measure control) for an
item. Secondary unit of measure can be used for cases where you need to track in two units of
measure and there is no constant conversion between the two unit of measures (UOMs). For
example, chickens can be tracked in pounds and eaches.
If an item is under dual unit of measure control the system tracks on-hand quantity based on
both the primary and secondary units of measure. For example, you can track an item in both
eaches and liters.

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Uses of Units of Measure

Uses of Units of Measure

• Planning Products
- Forecasting and consumption
- Master scheduling
- Material requirements planning
• Work in Process
- Shop floor moves
- Resource transaction
- Completion and return transactions
- Inquiries and reports
• Bills of Material and Engineering
- Defining bills of material
- Defining engineering items

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Unit of Measure Class

Unit of Measure Class

Unit of measure classes represent groups of units of measure with similar characteristics. A
unit of measure class contains a base unit of measure. You use the base unit of measure to
perform conversions between units of measure in the class. For this reason, the base unit of
measure should represent the other units of measure in the class, and be one of the smaller
units. For example, quantity is a unit of measure class and each, dozen, and gross are examples
of units of measure within the class. The unit of measure each is the base unit of measure for
this class.

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Guided Demonstration - Creating Units of Measure
Responsibility: Inventory, Vision Operations USA

1. (N) > Setup > Units of Measure > Units of Measure.

2. (M) File > New.

3. Use the following information to create two new units of measure:

Name UOM Description Class

00-Centimeter 00C 00 Centimeter 00-Metric

00-Kilometer 00K 00 Kilometer 00-Metric

4. (M) File > Save.

5. (M) File > Close Form.

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Guided Demonstration - Creating Unit of Measure Classes
Responsibility: Inventory, Vision Operations USA

1. (N) > Setup > Units of Measure > Classes.

2. (M) File > New.

3. Enter the following unit of measure information:

 Name: 00-Metric
 Description: 00-Metric Class
 Base Unit 00-Meter
 UOM: 00M

4. (M) File > Save.

5. (M) File > Close Form.

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Unit of Measure Conversions

Units of Measure Conversions

A unit of measure conversion is a mathematical relationship between two different units of
measure. For example, 16 ounces = 1 pound, or 2.2 pounds = 1 kilogram. If you want to
transact items in units of measure belonging to classes other than their primary UOM class,
you must define conversions between the base units of measure in different UOM classes.

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Guided Demonstration - Defining Unit of Measure Conversions
Responsibility: Inventory, Vision Operations USA

1. (N) Setup > Units of Measure > Conversions

2. (M) File > New.

3. Enter 00-Centimeter in the Unit field.

4. Enter 0.01 in the Conversion field.

5. (M) File > New.

6. Enter 00-Kilometer in the Unit field.

7. Enter 1000 in the Conversion field.

8. (M) File > Save.

9. (M) File > Close Form.

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Lot-Level Unit of Measure Conversions

Lot-Level Unit of Measure Conversions

Lot specific conversions enable you to perform a specific inter-class conversion for a given lot.
This enables you to establish more granular control over the transactional quantities of a lot.
For example, the standard inter-class conversion for a lot controlled item is one gallon equals
15 pounds; however, when you receive a particular lot of the item, 1 gallon equals 16 pounds.
You can create a lot specific unit of measure for this instance.
You can create lot-specific unit of measure conversions for on-hand lots or lots with a zero
balance. If you create a lot-specific conversion for a lot with on-hand quantities, you can
automatically update the quantities in the system to more accurately reflect the on-hand
quantity.

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Units of Measure Setup

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Practice - Defining Units of Measure
Overview
In this lab you will be doing the following:

 Defining Unit of Measure Classes

 Defining Units of Measure

 Setting up Unit of Measure Conversions

 Setting up Lot-Level Units of Measure Conversions

Assumptions
 You are skilled in Oracle Navigation

 You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.

Tasks
Defining Unit of Measure Classes

Define the unit of measure class, Quantity Class with the base unit of measure Each. Use your
team number (##) to uniquely identify your unit of measure class.

Defining Units of Measure

Define the following units of measure for your class. Use your team number (##) to uniquely
identify your units of measure.
 Dozen
 Gross
 Case

Setting up UOM Conversions

Set up Standard conversion for your units of measure. Use your team number to uniquely
identify your class from the other teams in the classroom.

Note: A Gross = 144 each, and a case = 24 each.

Setting up Lot-Level Unit of Measure Conversions

Create a lot-level unit of measure conversion for item CM20001. Use your new base unit of
measure as the destination base unit of measure.

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What types of updates can you perform on the Update Quantities window?

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Solution – Defining Units of Measure
Responsibility = Inventory, Vision Operations USA

Defining Unit of Measure Classes

1. Navigate to the UOM Classes window.

 (N) Setup > Units of Measure > Classes

2. The application prompts you to select an organization if it is a first-time access to the

database. Select M1 Seattle Manufacturing from the list of values.

3. (M) File > New

 Name ##-QTY
 Description ##-Quantity Class
 Base Unit ##-Each
 UOM (abbreviation) ##E

4. (M) File > Save.

Defining Units of Measure

5. Navigate to the Units of Measure window.

 (B) Units of Measure

6. (M) File > New

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7. Enter the units of measure information according to the following table:
Name UOM Description
##-Dozen ##D ## Dozen UOM
## Gross ##G ## Gross UOM
## Case ##C ## Case UOM

Note: Select (M) File > New between each new unit of measure.

8. (M) File > Save.

9. (M) File > Close form

Setting up Unit of Measure Conversions

10. Navigate to the Unit of Measure Conversions window.

 (B) Setup > Units of Measure > Conversions

11. (M) File > New

12. Enter the unit of measure conversion information according to the following table:
Unit Class Conversion Base Unit
##-Dozen ##-Qty 12 ##-Each

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##-Gross ##-Qty 144 ##-Each
##-Case ##-Qty 24 ##-Each

Note: Select (M) File > New between each new unit of measure conversion.

Note: Verify that you are creating a standard unit of measure conversion.

13. (M) File > Save.

14. (M) File >Close Form.

Setting up Lot-Level Unit of Measure Conversions

Navigate to the Lot Inter-Class Unit of Measure Conversions window.

 (N) Setup > Units of Measure > Lot Specific Conversions

15. Enter the following information:

 Item: CM20001
 Lot: BC2500
 Base Unit 00-Each
 Conversion: 1

16. (B) On-hand Quantities

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17. Enter a value in the New Primary quantity field (for example, 480).

18. (M) File > Save.

19. (M) File >Close Form.

20. What types of updates can you perform on the Update Quantities window?

__________________________________________________________________________

__________________________________________________________________________

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Unit of Measure Reports

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Profile Options

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Organization Parameter Setup

Organization Parameter Setup

If you set the Auto Create Lot UOM Conversion parameter to Yes or User confirmation, then
the system automatically creates lot-specific unit of measure conversions for items under dual
unit of measure control across the organization. The system bases the conversion on lot
quantities that you receive in the transactional unit of measure, and creates a conversion
between the transactional unit of measure and the secondary unit of measure.

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Chapter 4 - Page 22
Implementation Considerations

Implementation Considerations
• You can use a maximum of five decimal places for an individual unit of measure within
Oracle Inventory.
Note- Inventory transactions and on hand balance supports decimal precision to 5 digits
after the decimal point. Oracle Work in Process supports decimal precision to 6
digits. Other Oracle Applications support different decimal precision. As a result of
the decimal precision mismatch, transactions another Oracle Application passes may
be rounded when processed by Inventory. If the transaction quantity is rounded to
zero, Inventory does not process the transaction. It is therefore suggested that the base
unit of measure for an item is set up such that transaction quantities in the base unit of
measure not require greater than 5 digits of decimal precision. For example, in some
industries such as the gold jewellery industry, you may need a more granular level of
control than 5 decimal places. You need to carefully determine the base unit of
measure for each unit of measure class.
• Primary units of measure cannot be changed on items after they are saved.

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Summary

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