3. Units of Measurement - Costbucket

3. Units of Measurement

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The product measurement based on how the item is sold, example per hour, each, batch, lb, per mile, meter, batch, case, or kilogram, It is important to note when doing anything related to the product it will be based on the measurement including when ordering, receiving, or refunding products.

The key guidance when creating inventory is to track and manage by how they are sold. All Finished Goods and Raw Material should be managed based on their unit of measurement.

Example:
Product A is sold per unit. When ordered it is shipped by the supplier in batch /case of 50 with their invoice showing quantity 1 batch/case of 50 pack for $1000. When inputting Product A in Costbucket you need to receive 50 units of Product A at a cost of $20 each for a total of $1000. Costbucket will automatically update the product cost to $20 per unit.

If Product A is to be sold also as a batch/case including per unit, you then need to create a new Product B which is set up as an assembly item made up of 50 units of Product A.

If Product A is sold only as a batch/case, then the order quantity when received would be batch quantity 1.