Unit of measure conversions are useful when it comes to buying and selling parts and products. We’ll get into that more as we converse about the implications of handling them manually vs. automatically.
Do you sell products in the same unit of measure as you buy them? For example, you might buy products in a large box and then sell them in that same container, or you might open the box and sell the products individually. If you do the latter, you’ll find it necessary to convert their unit of measure so you don’t inadvertently record the sale of an entire box when you actually sold a single unit. Doing this manually means that by hand you’ll have to update the unit of measure of every single product that you unbox or otherwise change the way you sell it from the way you bought it.
If even a single item gets forgotten in this unit of measure conversion process, it can lead to serious inaccuracies in your accounting and inventory records. These manual conversions require meticulous attention to detail, and you always run the risk of miscalculations leading to misunderstandings about what items are in stock and the total value of your inventory.
All of the necessary unit of measure conversions can be performed for you by a business automation platform. Whenever a new carton is received, the values of the products inside it are already in the system, so it automatically divides the carton into those individual costs.
No product slips through the cracks under this automatic setup. The work is done for you every time, instead of demanding you pay close attention to the value of every item in a shipment that arrives at your warehouse. You can take a high-level view of your inventory and trust that the finer details are always taken care of.
Robert Lockard is a copywriter with Fishbowl. He writes for several blogs about inventory management, manufacturing, QuickBooks, and small business. Fishbowl is the #1-requested manufacturing and warehouse management software for QuickBooks users. Robert enjoys running, reading, writing, spending time with his wife and children, and watching movies.