To use conversion factors

In LN, you must define an item's inventory unit in the Items - General (tcibd0501m000) session. However, the inventory unit is not always the only unit in which an item's quantity is managed. On a sales order or a purchase order, the same item can have a different unit. For example, an item's inventory unit is 'piece', while the quantity of the same item on a sales order is expressed as 'box' , a box containing 6 pieces.

To keep track of the correct item quantities in inventory, you must establish the ratio between two different units, so that LN can convert quantities. Therefore, define conversion factors in the Conversion Factors (tcibd0103m000) session. Enter a unit in the Base Unit field, and add one or more alternative units and their conversion factors.

Calculate the conversion factor as follows:

alternative unit / base unit
Example
  • Base unit: 1 piece.
  • Alternative unit: 1 box containing 6 pieces.
  • Conversion factor from boxes to pieces: 6/1 = 6.

If a sales order mentions that 15 boxes are sold, LN decreases the inventory of the item by 15 * 6 = 90 pieces.

Example
  • Base unit: 1 meter (100 centimeters).
  • Alternative unit: 1 inch (2.54 centimeters).
  • Conversion factor from inches to meters: 2.54/100 = 0.0254.

If a purchase order mentions 10 inches, LN increases the inventory of that item by 10 * 0.0254 = 0.254 meters.

Retrieving conversion factors

If LN carries out calculations with item quantities expressed in different units, the correct conversion factor must be retrieved. LN uses the Conversion Factors (tcibd0103m000) session to search for the correct conversion factor, in the following sequence:

  1. Conversion factor by item.
  2. Conversion factor by item group.
  3. General conversion factor, which means that both the Item field and the Item Group field are empty.

If no conversion factor is found, the base units in the MCS Parameters (tcmcs0500m000) session are used to find the correct conversion factor.

If LN cannot find the applicable conversion factor, a message indicates that you must define the conversion factor.

Calculations on quantities

LN carries out calculations using the company's base units. Before calculating quantities of items, LN first:

  • Converts quantities of the item that are expressed in alternative units to the item's base/inventory unit.
  • Converts the resulting quantity of the item's base/inventory unit to the company's base unit of the same physical type.

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