Applying Order Price Unit in Inventory Management

Order Unit and Order Price Unit

In a purchase order, you can specify a purchase order price unit (OPUn) and an order unit (OUn) that are different from each other. The purchase order price unit is valid in connection with the net price and is used as the basis for valuating the goods receipt and for invoice verification. You need to enter the delivered quantity in both units of measure (OUn and OPUn) when the goods are received.

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For example, you order 10 frozen geese at a price of EUR 5/kg. In the purchase order, you assume that one goose has an average weight of 4 kg (order value 40 kg * EUR 5). During the goods receipt, you determine that 10 geese weigh a total of 45 kg. For the valuation of the goods receipt and the invoice verification, there is an amount of 45 kg * EUR 5 for the 10 geese.

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