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Catch Weight Overview White Paper 14.0
Catch Weight Overview White Paper 14.0
Order Type
Accessed from the Grocery Attributes pop-up screen, the Order Type selected for the component item is only used to
control options as part of the item setup process but is not really used in the ordering process. Order types can be either
Fixed Weight or Variable Weight.
Sale Type
In addition, set on the Grocery Attributes pop-up screen, the Sale Type is determined by the type of item being maintained.
Items sold by varying weights (such as bananas or deli meat) should be setup with Loose Weight to indicate that they are
sold by weight, while items sold as eaches (such as pre-packaged cheese or steak) should be setup as Variable Weight
Eaches. In the latter case the actual retail price charged to the consumer will vary by the weight but the inventory for the
item is maintained by units (eaches).
Standard UOM
For catch weight items, Standard UOM (SUOM) is determined based on the type of the catch weight item being maintained.
For example, items inventoried and sold by variable weight (for example, bananas, deli meat) should have a standard UOM
equal to a weight, such as lbs. or kg. Items designated as variable weight eaches (for example, pre-packaged cheese and
sirloin steak) should have a standard UOM equal to EA since the items are inventoried and sold by the each regardless of the
weight of an each.
Note: It is possible to set up items that have a UOM other than EA that are not flagged as
Catch Weight. See the section on Non-Catch weight Weighted Items below.
Note: Merchandising uses only those dimensions defined against the dimension object Case.
In situations where the dimension for a single unit (EA) are required, the case-level
dimensions will be divided by the defined case pack size.
Selling UOM
Zone-level retails are defined in terms of the selling UOM. For purposes of this paper, for catch weight items, it is assumed
that the Selling UOM will always be in terms of weight, regardless of whether they are pre-packaged or loose. However,
catch weight items can be created with a Selling UOM of eaches as well. This is set at the item/zone level when the
component item is initially created and then maintained in Pricing thereafter.
Setup by Type
CATCH WEIGHT CATCH WEIGHT CATCH WEIGHT CATCH WEIGHT
TYPE 1 TYPE 2 TYPE 3 TYPE 4
Order Type Fixed Weight Variable Weight Fixed Weight Variable Weight
Sales Type Loose Weight Loose Weight Variable Weight EA Variable Weight EA
Case Pack Case Weight Case Weight Case Qty Case Qty
Pack Setup
Simple packs are pack items that contain a single component item. For catch weight items, simple packs are assumed to be
created for every component item and used for ordering from the vendor, although it is not required. The usage of these
packs in the ordering process differs by the type of item and is described in more detail below. Some key attributes that
need to be set for catch weight simple packs are as follows:
Order Type
The options for this attribute are Fixed Weight and Variable Weight. Fixed Weight is selected when the pack weight is not
relevant to the received cost of the pack. In other words, the retailer and the supplier have an agreed upon cost per case
based on an assumed fixed weight. Variable Weight is selected when the cost charged by the supplier will be dependent
upon the actual received weight of the inventory.
Sale Type
This is only set if the pack itself is considered sellable. The options for this are either Loose Weight or Variable Weight,
similar to component items.
Standard UOM
Standard UOM is always EA for simple packs and cannot be changed.
Component Quantity
The simple pack component quantity represents how many of the component item exists in the pack, represented in terms
of the component item’s standard UOM. For items such as bananas or deli meat that are inventoried by weight, this would
represent the weight of the item in a case. For items that are inventoried in eaches, such as prepackaged meat or cheese,
this number represents the number of packages within a case. This information is held on the PACKITEM table.
Case Dimensions
Net Weight for the simple pack item represents the nominal weight for the item and is used, along with case pack size, to
calculate the number of eaches. When the Order Type is Fixed Weight this represents the assumed fixed weight of the case.
Net weight is defined at the item/supplier/country level.
Note: Merchandising uses only those dimension defined against the dimension object Case.
In situations where the dimensions for a single pack unit (EA) are required, the case-level
dimensions will be divided by the defined case pack size.
Tolerances
When the order type for the simple pack is set as Variable Weight, tolerances must also be defined for the simple pack.
Tolerances exist for validation purposes only, to determine if the received weight is within the defined tolerance values for a
given case (for example, a case contains between 14 kg and 16 kg). In Merchandising this is informational only and is not
used for validation during the shipping and receiving processes. However, Merchandising does publish this information for
use in external systems.
Order Type Fixed Weight Variable Weight Fixed Weight Variable Weight
Standard UOM EA EA EA EA
Case Pack 1 1 1 1
Tolerance Required? N Y N Y
Inventory Management
This section outlines how inventory management differs from that of other items.
Average Weight
One of the biggest differences is the maintenance of an average weight for simple packs and for component items that have
a SUOM of EA. This value impacts weighted average cost and perpetual inventory.
Average weight is held at the item/location level and is used on certain transactions involving variable weight items where
the actual weight is not captured on the transaction. Average weight is calculated for all catch weight items with a SUOM of
EA, which includes the simple pack level for all catch weight types and at the component item level for types 3 and 4.
Average weight is calculated as:
(A * B) + C
(A + D)
A = existing stock on hand before delivery
B = existing average weight before delivery
C = total weight received in new delivery
D = total units in new delivery
Note: The nominal weight for a simple pack will always be used when ordering. The nominal
weight is defined during the simple pack setup as the net weight of the simple pack.
For Type 2 items (e.g. deli meat) received as simple packs, WAC is updated on receipt as follows:
(Total Weight Received * Cost per Cost UOM) + (Current Owned Weight * Current WAC)
Total Weight Received + Current Owned Weight
For Type 3 items (e.g. pre-packaged cheese) received as simple packs, WAC is updated on receipt as follows:
(Total Weight Ordered * Cost per Cost UOM) + (Current Owned Eaches * Current WAC)
Total Eaches Received + Current Owned Eaches
For Type 4 items (e.g. pre-packaged meat) received as simple packs, WAC is updated on receipt as follows:
(Total Weight Received * Cost per Cost UOM) + (Current Owned Eaches * Current WAC)
Total Eaches Received + Current Owned Eaches
Type 1 Example:
At the warehouse, prior to a receipt, there is a total weight of 20 lbs and a current WAC of $1.25. A PO is placed for 10 cases
of bananas, with a nominal weight of 10 lbs per case, and a cost of $1 per pound. On receipt of 101 lbs of total weight, the
WAC would be updated as follows:
Cost of total weight ordered = 10 cases * 10 lbs * $1 = $100
Cost of current weight owned = 20 lbs * $1.25 = $25
New weighted average cost = ($100 + $25)/(101 lbs + 20 lbs) = $1.0331 per pound
Type 4 Example:
At the warehouse, prior to receipt, there are 10 cases of ground beef in inventory, with an average weight of 20 lbs. Each
case contains a total of 20 packages ready for sale, which equates to an average weight of 1 lb. per package. The current
WAC for the component items is $1.25 per pound. If one pack (20 EA) is received with a weight of 22 lbs on a PO with a unit
cost of $1 per pound, the WAC would be updated as follows:
Cost of total weight received = 22 lbs * $1 = $22
Cost of current weight owned = 10 cases * 20 lbs * $1.25 = $250
New weighted average cost = ($22 + $250)/(20 EA + 200 EA) = $1.2364 per EA
1
Based on nominal weight
Purchase Orders
All Types If a component item is ordered, the order quantity Catch weight simple packs will always be ordered in
can be entered in terms of standard UOM (weight or eaches, regardless of type. So, the quantity on the
EA), cases, or pallets. The order quantity must be order equates to how many cases are being ordered.
rounded to multiples of the case pack size defined
The cost on the order is defaulted in terms of the cost
for the component item, however.
and cost UOM defined for the pack item’s
The cost on the order is defaulted in terms of the supplier/country.
cost and cost UOM defined for the component
item’s supplier/country.
PO Receiving
Type 1 Stock on hand is updated based on what is sent in the Pack on hand is updated based on the quantity of
quantity field on the receipt, as this is assumed to be packs received. The component item’s stock on
the actual weight received. If weight is included in hand is updated based on the actual weight
the receipt details in a separate field, it is ignored. received (or nominal weight, if a weight is not
provided).
There is no average weight maintained for type 1
component items. Average weight for the pack is also updated based
on the actual weight received (or nominal weight, if
WAC is calculated using the nominal weight to derive
a weight is not provided). The component item’s
the cost of the receipt, but the actual weight received
average weight is not maintained for this type.
is used as the divisor.
WAC is calculated for the component item using
the nominal weight to derive the cost of the
receipt, but the actual weight received is used as
the divisor.
Type 2 Stock on hand is updated based on what is sent in the Pack on hand is updated based on the quantity of
quantity field on the receipt, as this is assumed to be packs received. The component item’s stock on
the actual weight received. If weight is included in hand is updated based on the actual weight
the receipt details in a separate field, it is ignored. received (or nominal weight, if a weight is not
provided).
There is no average weight maintained for type 2
component items. Average weight for the pack is also updated based
on the actual weight received (or nominal weight, if
WAC is calculated using the received weight to derive
a weight is not provided). The component item’s
the cost of the receipt and as the divisor.
average weight is not maintained for this type.
WAC is calculated for the component item using
the received weight to derive the cost of the
receipt and as the divisor.
Type 3 Stock on hand is updated based on what is sent in the Pack on hand is updated based on the quantity of
quantity field on the receipt in terms of eaches. packs received. The component item’s stock on
hand is also updated based on the quantity
Average weight for the component item is also
received * the quantity of the item in the pack.
updated based on the actual weight received (or
nominal weight, if a weight is not provided). Average weight for the pack and component item
are both updated based on the actual weight
WAC is calculated using the nominal weight to derive
received (or nominal weight, if a weight is not
the cost of the receipt, with the eaches received used
provided).
as the divisor.
WAC is calculated for the component item using
the nominal weight to derive the cost of the
receipt, with the eaches received used as the
divisor.
Type 4 Stock on hand is updated based on what is sent in the Pack on hand is updated based on the quantity of
quantity field on the receipt in terms of eaches. packs received. The component item’s stock on
hand is also updated based on the quantity
Average weight for the component item is also
received * the quantity of the item in the pack.
updated based on the actual weight received (or
nominal weight, if a weight is not provided). Average weight for the pack and component item
are both updated based on the actual weight
WAC is calculated using the received weight to derive
received (or nominal weight, if a weight is not
the cost of the receipt, with the eaches received used
provided).
as the divisor.
WAC is calculated for the component item using
the received weight to derive the cost of the
receipt, with the eaches received used as the
divisor.
Invoicing
Invoice Matching does all processing based on the UOM on the order. So, for variable weight packs and variable weight
component items (type 2 and 4), a conversion is done for the cost based on the weight received, pack quantity and cost
UOM to derive the cost in terms of the pack eaches received. For fixed weight packs, invoicing is done like for non-catch
weight items, based on the order quantity and cost only without the need for conversion.
Type 1 Invoicing is based on the nominal weight ordered, not Since invoicing is based on the nominal weight
the received weight, because for this type of item, the ordered, not the received weight, for this type of
item, the retailer is paying the supplier based on a
retailer is paying the supplier based on a fixed fixed weight of the pack and weight is not
weight. considered.
Type 2 Invoicing is based on the actual received weight, Invoicing is based on the actual received weight,
which might be more or less than ordered, because which might be more or less than ordered, because
for this type of item, the retailer is paying the supplier for this type of item, the retailer is paying the
based on a variable weight. supplier based on a variable weight.
Type 3 Invoicing is based on the nominal weight ordered, not Invoicing is based on the nominal weight ordered,
the received weight, because for this type of item, the not the received weight, because for this type of
retailer is paying the supplier based on a fixed item, the retailer is paying the supplier based on a
weight. fixed weight.
Type 4 Invoicing is based on the actual received weight, Invoicing is based on the actual received weight,
which might be more or less than ordered, because which might be more or less than ordered, because
for this type of item, the retailer is paying the supplier for this type of item, the retailer is paying the
based on a variable weight. supplier based on a variable weight.
Transfers
Type 1 and 2 When the transfer is approved, reserved quantity will When the transfer is approved, reserved quantity
be updated based on nominal weight. In transit for the component item will be updated based on
updates, as well as updates to stock on hand at both the nominal weight of the pack. In transit updates
locations, will consider the actual weight shipped. For for the component item, as well as updates to stock
this type of item, the weight is assumed to be sent in on hand for both locations, will consider the actual
the quantity field for integrations, as that is the weight shipped, if provided. If not provided, the
standard UOM. The separate weight field will be average weight for the pack at the shipping
ignored. location is used. Upon receipt, if a weight is
included, it is ignored; the shipped weight is always
There is no average weight maintained for type 1
used to prevent discrepancies.
and 2 component items.
Pack on hand is updated based on the quantity of
WAC is calculated using the shipped weight to derive
packs shipped and received at both locations2.
the cost of the receipt and as the divisor.
Average weight for the pack is updated on
shipment for both locations, based on either the
actual shipped weight, or the shipping location’s
average weight, if a weight is not provided. If a
weight is included on receipt, it is ignored. The
component item’s average weight is not
maintained for this type.
WAC is calculated for the component item at the
receiving location using the shipped (or average)
weight to derive the cost of the receipt and as the
divisor. The WAC at the shipping location is not
updated.
2 If the receiving location is a warehouse. Pack on hand is not managed for stores .
Type 3 and Reserved, expected, in transit, and stock on hand for Reserved, expected, in transit, and stock on hand
4 the component item will be updated based on the for the pack and component item will be updated
quantity only. based on the transfer quantity only.
Average weight is updated on shipment for both Average weight for the pack and the component
locations based on either the actual shipped weight, item are updated on shipment for both locations,
or the shipping location’s average weight, if a weight based on either the actual shipped weight, or the
is not provided. If a weight is included on receipt, it is shipping location’s average weight, if a weight is
ignored. not provided. If a weight is included on receipt, it is
ignored.
WAC is recalculated using the shipped quantity to
derive the cost of the receipt. WAC is recalculated for the component item using
the shipped quantity to derive the cost of the
receipt.
Type 1 and 2 When the transfer is approved, reserved quantity will When the transfer is approved, reserved quantity
be updated based on nominal weight. In transit for the component item will be updated based on
updates, as well as updates to stock on hand at both the nominal weight of the pack. In transit updates
locations, will consider the actual weight shipped. For for the component item, as well as updates to stock
this type of item, the weight is assumed to be sent in on hand for both locations, will consider the actual
the quantity field for integrations, as that is the weight shipped, if provided. If not provided, the
standard UOM. The separate weight field will be average weight for the pack at the shipping
ignored. location is used. Upon receipt, if a weight is
included, it is ignored; the shipped weight is always
There is no average weight maintained for type 1
used to prevent discrepancies.
and 2 component items.
Pack on hand is updated based on the quantity of
WAC is calculated using the shipped weight to derive
packs shipped and received at both locations
the cost of the receipt and as the divisor.
Average weight for the pack is updated on
shipment for both locations, based on either the
actual shipped weight, or the shipping location’s
average weight, if a weight is not provided. If a
weight is included on receipt, it is ignored. The
component item’s average weight is not
maintained for this type.
WAC is calculated for the component item at the
receiving location using the shipped (or average)
weight to derive the cost of the receipt and as the
divisor. The WAC at the shipping location is not
updated.
Type 3 and Reserved, expected, in transit, and stock on hand for Reserved, expected, in transit, and stock on hand
4 the component item will be updated based on the for the pack and component item will be updated
quantity only. based on the transfer quantity only.
Average weight is updated on shipment for both Average weight for the pack and the component
locations based on either the actual shipped weight, item are updated on shipment for both locations,
or the shipping location’s average weight, if a weight based on either the actual shipped weight, or the
is not provided. If a weight is included on receipt, it is shipping location’s average weight, if a weight is
ignored. not provided. If a weight is included on receipt, it is
ignored.
WAC is recalculated using the shipped quantity to
derive the cost of the receipt. WAC is recalculated for the component item using
the shipped quantity to derive the cost of the
receipt.
Type 1 and 2 For adjustments made at the component item level, For adjustments made to the pack, the inventory
the adjustment is assumed to be in terms of weight. for the pack is adjusted based on the quantity
indicated for the adjustment.
For the component item, inventory is updated
based on the actual weight, if provided. Otherwise,
the update is calculated based on average weight
for the pack.
Average weight for the pack is also updated based
on either the actual adjusted weight, if provided.
The component item’s average weight is not
maintained for this type.
Type 3 and For adjustments made at the component item level, For adjustments made at both the pack and
4 the adjustment is made in terms of quantity. component item level, the adjustment is made in
terms of quantity.
Average weight for is updated if an actual weight is
included. Average weight for both the pack and component
items are updated if an actual weight is included.
Return to Vendor
Type 1 and 2 When the RTV is approved, RTV quantity will be For the pack item, on hand is updated based on the
updated based on nominal weight. Shipment quantity of packs shipped.
updates will consider the actual weight shipped. For
For the component item, the initial RTV reservation
this type of item, the weight is assumed to be sent in
will be based on nominal weight, but on shipment
the quantity field for integrations, as that is the
stock on hand is updated based on actual shipped
standard UOM. The separate weight field will be
weight if provided. If a weight is not included, then
ignored.
average weight for the pack is used.
There is no average weight maintained for type 1
Average weight for the pack is also updated on
and 2 component items.
shipment based on the actual shipped weight, if
The value of the shipment is based on the location’s provided. The component item’s average weight is
WAC and the shipped weight, unless a specific RTV not maintained for this type.
cost has been designated.
The value of the shipment for the component item
is based on the location’s WAC and the shipped
weight, unless a specific RTV cost has been
designated.
Type 3 and RTV Reserved and stock on hand updates for the For the pack item, on hand is updated based on the
4 component item will be based on quantity only. number of packs shipped and average weight
should also be recalculated if actual weight is
Average weight for is updated on shipment based
included for the RTV.
on either the actual shipped weight, if included in the
shipment. For the component item, inventory is removed
based on quantity shipped and average weight is
The value of the shipment is based on the location’s
updated, if an actual weight is included with the
WAC and the shipped quantity, unless a specific RTV
shipment. It is assumed that the cost of this
cost has been designated.
transaction is based on WAC, unless overridden on
the RTV transaction.
Type 1 and 2 Type 1 and 2 Sales and returns will be in terms of actual weight
as the quantity on the transaction. If the weight
field is populated, it is ignored.
Cost of sales will be calculated as the actual
(average) weight * current WAC.
Type 3 and Type 3 and 4 Sales and returns are expected to be in terms of
4 both eaches and actual weight. If a weight is not
included, then the location’s average weight will be
used. Average weight for is updated if an actual
weight is included.Cost of sales will be based on
quantity sold * component WAC.
Note: It is assumed that in a warehouse, inventory is always in cases and never broken down
to eaches.
3Although it is possible to set up a catch weight pack as sellable, for purposes of this document, it is assumed that catch weight simple
packs are not sellable.
Known issues:
Because SIM/SIOCS cannot send both a weight and quantity, direct store delivery (DSD) for Type 2 and 4 items
ordered at the simple pack level will always be received using the nominal weight of the pack, which leads to invoice
matching issues, as this is not how vendors invoice for these types of products.
For Type 1 and 3 items ordered using simple packs, Merchandising will also use nominal weight for DSD receipts
sent from SIM/SIOCS, which may result in inventory valuation being off due to weight fluctuation of the pack,
which would impact margin, but would not cause a mismatch on invoicing with the vendor.
Many vendors are able to utilize EAN128 bar codes to send weight information on ASNs. While SIM/SIOCS does not
yet utilize the weights supplied on ASNs for receiving.
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