Items are transacted in different Units.  (eg Nos, Kgs, Liters ).  These are called Units of Measurement (UOM) .   GoodBooks has option to specify required units of measurement in the item master.  Required list of units can be created using the options  UOM and UOM Set.

In the item master, the following options are available.

Purchase UOM   :   Units in which the item is purchased.

Stock UOM : Units, in which the item is stocked, issued and sold.

Normally, the units used for purchasing and stock will be the same. But there are items and transactions, where these may different.

Conversion Factor  :

Conversion factor between Purchase and Stock UOM.  If both the units are same then the factor will be automatically set  as 1 and system will disable the field.

When purchase and stock Units are different the value for conversion has to be specified as

Stock Units  = Purchase Units * Conversion Value

 Conversion value can be specified to a maximum precision of 4 decimals.

The following examples, shows these setting in different scenario.

Example 1

Item        :    ABCD Orange Cream Biscuit – 250 Gms

Purchase :   KGS

Stock       :  Pkts

Conversion Factor  :  4.0000

Purchase is done on KG basis, but stock and sale is done in number of PKTS basis with each packet weighing 250 Gms.

When we purchase 1 Kg stock should be posted as 4 PKTs.

So the conversion factor is 4

Stock = 1 (kg)   x   4  (conversion .factor)     =   4

Example 2

Item                        :   12 MM Aluminum Rod

Purchase               :   KGS

Stock                      :   Mtrs

Conversion Factor  :  3.3456

Purchase is done on KG basis , but stock and sale is done Mtrs basis.    1 KG of the Rod  is  equal to 3.3456 Mtrs

When we purchase 1 Kg stock it should be posted as 3.3456 Mtrs.

So the conversion factor is 3.3456

Stock = 1 (kg)   x   3.3456  (c.factor)