Unit of measure (UOM)
Also called UM
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is unit of measure (UOM)?
A unit of measure (UOM) is the unit an item is bought, stocked or sold in, such as each, box, case, pallet, foot or pound.
How it works
One item has several units of measure, linked by conversion factors. The ERP keeps stock in a base or stocking UOM (often each) and converts from the buying UOM the supplier uses and the selling UOMs customers order in. Prices can have their own unit too, such as per C or per M. A UOM mix-up is a classic order error: a customer who meant 10 each receives 10 cases.
Unit of measure (UOM) example
Gloves are bought by the case of 10 boxes and sold by the box. With a conversion factor of 10, one case received becomes 10 boxes available to sell.
Related terms
- Case packA case pack is the number of units a manufacturer packs into one case or carton, such as 12 tubes of caulk or 100 connectors.
- Per C and per M pricingPer C and per M pricing means a price is quoted per 100 units (C) or per 1,000 units (M), from the Roman numerals, rather than per single unit.
- Stock keeping unit (SKU)A stock keeping unit (SKU) is the unique code a distributor gives each item it sells, so each size, color and pack can be stocked and priced separately.
- Order entryOrder entry is putting a customer’s order into the ERP as a sales order, matching each item to the right SKU, quantity, unit of measure and price.
- Order acknowledgmentAn order acknowledgment is a supplier’s confirmation that it accepted a purchase order, stating what will ship, at what price and when.
