Conversion Factors overview

A unit of measure describes the physical quantity in which an item or good is managed by your company. This is used to measure the items and services that you order, ship, or transfer.

In Tax Engine, you must define an item's unit in the Master Data tables > Logistic Tables session. However, an item’s unit is not always the only unit in which an item's quantity is managed. On an outbound or inbound transaction, the same item can have a different unit. To keep track of the correct item quantities in inventory, you must establish the ratio between two different units, so that Tax Engine can convert quantities. Conversion Factors represents the numeric value or ratio that is used to relate one unit of measure to another.