Stock is usually maintained in units. However, a unit to the stock system can itself have a quantity attribute. We might stock, and wish to record stock, of packets of twenty cigarettes; 1lb bags of flour; and six-packs of beer.The important factor is that the units in which we record stock are not in themselves further divisible — although we can use decimal fractions.
For example, if we were to record our beer in units of six-packs, then one unit is one six-pack.If we were then to split a six-pack, we would have to record a tin as 0.16 of a six-pack (or 0.1666 if we are recording quantities to four decimal places).
The key is really to choose as your unit the smallest measure in which you would normally sell the item. The Unit of Issue field in the stock file describes this unit — 1LB BAG, BOX-20, 6-PACK in the examples above. It is only descriptive.
The unit of issue may not, however, be the unit in which you can buy — or indeed sell. For example, you may well place an order for a crate of beer — 144 cans (say) or 24 six packs. For convenience, therefore, the stock system (and the Datafile Software order processing system) allows you to enter quantities in terms of packs. The pack size — which can be different for different items — is held as an item on the stock file. The syntax for describing packs as opposed to units requires a separator (typically oblique "/”). For example, 5/ would be 5 crates in the above example; 2/72 would be two crates and 72 cans; and 144 is 144 cans.
The system allows you up to nine prices, and maintains a cost price for each stock item. There are occasions, however, where prices are quoted in multiples. For example, although you may be selling felt-tip pens individually, the buying price quoted by your supplier might be per box of ten — £5 per ten, say. It is more convenient to keep your cost price (and your last order price) at the price break you buy at, rather than divide this down into units. A "Cost Per” option allows you to record the quantity at which prices are held — in the above example, ten.
Similarly, you might quote prices for multiples of product too, even though you sell individual units.For example, you may quote prices for beer in 6-packs rather than in individual tins. In this case you would use the "Price Per” option to record six.
Note
The "Price Per” option usually refers to all selling prices defined. However, the Datafile sales order processing system allows you to read one of the selling prices as a unit price, and also to make a surcharge where a pack must be split to satisfy a customer order.
Article ID: 402
Created On: Mon, Jun 18, 2012 at 10:33 AM
Last Updated On: Thu, Jun 22, 2023 at 11:29 PM
Online URL: https://kb.datafile.co.uk/article/units-of-issue-pack-sizes-and-price-per-402.html