The Add Inventory Item screen includes a field called Purchase Unit of Measure (UOM).

This is not a required field but it is a handy feature when you've bought materials using one unit of measure but you need to charge them out at a different unit of measure.

To help make this feature a little easier to understand, we've prepared some examples for you. The first demonstrates buying pipe lengths as a bundle and then selling each one separately with a markup attached, and the second demonstrates pricing a box of 100 nails by the nail:

Example 1: Pipe Lengths

You buy 10 x 6-metre lengths of 100mm PVC pipe (60 metres in total). Each length costs you $22.50. You need to charge the piping out per metre with a 10% markup.

• In the Unit Type field, select Metre
• Complete the Description field
• In the Quantity field, enter 10
• In the Purchase Unit of Measure (UOM) field, enter 6. Beside this field, AroFlo shows the total number of units you have entered, i.e. 60 x 1-metre units.

On the Pricing tab:

• in the Cost field, enter 3.75 (i.e. 22.50 ÷ 6)
• in the Markup Type field, select Cost + Markup
• in the Markup field, enter 10. The Sell field will show a sell price of 4.125 per metre.

 

 

Example 2: Box of Nails

You buy 5 boxes of nails with 100 nails per box (500 units in total).

• In the Unit Type field, select Box
• Complete the Description field
• In the Quantity field, enter 5
• In the Purchase Unit of Measure (UOM) field, enter 100. Beside this field, AroFlo shows the total number of units you have entered, i.e. 500 units.

Cost per nail was $0.25 and your sell price per nail is $0.50. You would complete the Pricing tab as shown below.

The Purchase Unit of Measure (UOM) field accepts up to 4 decimal places, e.g. 1.5111.

 

 

 

Using Example 2 above, suppose you want to assign some of the nails to a task. In your Task Worksheet, you would:

1. Click Material > Add New > Inventory.
2. In the Search Inventory window, enter Nails in the Item box.
3. On your selected item, enter the Quantity you want (enter 50 for this exercise) and click X to close the search window.
4. Click Save Materials.

You'll see that AroFlo has calculated the total sell price; this will appear on the invoice for this task. If you go back to Manage > Inventory and search for the same nails, you'll see that the total stock remains at 500, but 50 nails have been 'Assigned' to the task, leaving 450 assigned to the Business Unit that purchased them. The value of the nails remaining in stock has been altered accordingly.