Prices for Different Units of Measure

This page describes how prices will be calculated when you sell an Item using different units of measurement.


Price Factors

If an Item can be sold using two units of measure (for example, in individual units and in boxes of twelve), you can use the Price Factor field on the 'Pricing' card of the Item record to help calculate pricing. For example, if the Unit is one dozen because the Item is usually sold in dozens, enter "12" as the Price Factor if the Item can also be sold individually:

When you sell an Item with a Price Factor, enter the quantity using the unit of measure that results from the application of the Price Factor. In this example, enter the quantity of single units, not the quantity of dozens. The Sum in the sales transaction row will be calculated using the formula (Quantity/Price Factor) * Unit Price:

If necessary, you can also enter or change the Price Factor in an individual sales transaction row (on flip D in Invoices and Quotations, on flip E in Sales Orders).

Using a Price Factor can be useful if a price per unit has more than three decimal places (the Unit Price field in a sales transaction and the Base Price field in the Item record can only support three decimal places). For example, if the price per unit is 0.0001, you can enter 0.01 as the Base Price and 100 as the Price Factor. This will result in a price per unit of 0.0001.

The Price Factor also applies to Purchase Orders. Again, you should enter the quantity of single units that you need to buy, and the Sum will be calculated using the same formula.

Unit Quantity Factors

The Price Factor can therefore be useful for Items that you sell using two units of measure (e.g. single units and dozens). However, it can be difficult to know which unit of measure to use when entering a transaction, and it is limited to two units of measure.

An alternative to the Price Factor is to specify a Quantity Factor in each Unit record (i.e. for each unit of measure). The Quantity Factor will allow you to relate each unit of measure to a single unit. For example, in a Unit record representing a dozen, the Quantity Factor will be 12 since a dozen is twelve individual units. In a Unit record representing a single Item, the Quantity Factor will be 1. In the example in the illustrations below we have use