Set Up Units of Measure
Learning Objectives
After completing this unit, you’ll be able to:
- Explain why units of measure are useful.
- Describe how units of measure help to manage products.
- Set up multiple units of measure.
- Explain how units of measure can be used for basic pricing.
About Units of Measure
Be it boxes of cookies or packs of summer coolers, a customer is always mindful of the units of measure (UoM) for the products they’re purchasing.
By definition, a product's UoM is the standard of measurement of its quantity. Any other quantity of the product can be expressed as multiples of its UoM.
You can define UoM or logistical units for a product in CG Cloud to do the following.
- Define a hierarchy of UoMs.
- Specify packaging and containment of UoMs in parent units.
- Define attributes for independent UoMs. For example, specify that a UoM is the default order unit of a product.
- Specify the weight and volume of a product as per predefined units.
- Set the order ability, order unit, and price unit for a product.
Manage Products Using Units of Measure
Product master data includes information that is necessary to identify a product, including the UoM for a product. Maintaining UoM for a product ensures accurate price calculation, availability for order taking, and efficient product distribution.
A sales manager or field rep can specify the logistical information for each specific unit of a product and use this information in business processes such as order entry.
Setting up UoM for each product in CG Cloud has these advantages.
- Supports product logistics as part of product master data to manage flexible UoM for each product.
- Enables barcode scanning based on the UPC code of the UoM. If the product barcode is supported by Salesforce, field reps can search for the product by scanning its barcode. For more information, see Supported Barcodes.
- Adds search and scan options to allow field reps to use the search bar or scan barcodes on their mobile device. However, Global Trade Item Number (GTIN) at UoM level isn’t used for assessment tasks. It’s used for processes such as advanced order or surveys.
- Facilitates order entry based on order item type and UoM with rounding to the nearest logistical unit. For example, a customer ordering boxes of products, but returning only a single product.
- Defines the key attributes required for basic pricing.
Set Up Multiple Units of Measure
Fatima defined the hierarchy level for the product Alpine Mint Summer Cooler in Unit 2. Next, she sets up its UoM. She can set up multiple UoMs for the same product. This means that Fatima can define multiple unit types for the same product, such as Consumer Unit or Sales Unit. Units of Measure are maintained in the related list of a product in CG Cloud.
Set Up Consumer Unit
First, Fatima sets up the unit type Consumer Unit for Alpine Mint Summer Cooler.
- From the App Launcher, find and select Products.
- Select a product. Fatima selects Alpine Mint Summer Cooler.
- Click the Related tab.
- In the Units of Measure list, click New.
- Select the unit type for one unit of measure of a product. Fatima selects Consumer Unit.
- In the Sort field, enter the order of the unit in the hierarchy. Fatima enters
1. - Enter the number of pieces of the unit that makes one parent unit. Fatima enters
12. - Enter the number of pieces of the smallest unit in the hierarchy that makes one unit. Fatima enters
1. - Select Is Consumer Unit to indicate that the UoM is the consumer unit of the product.
- Select Order Ability to indicate that the UoM is available for placing an order.
- Select Is Price Unit to indicate that the UoM is the default unit for pricing. The prices for basic pricing are maintained in the Product Conditions related list.
- Enter other details to create the unit of measure. For information related to the different fields, see Add a Unit of Measure.
- Click Save.
Set Up Sales Unit
Next, Fatima sets up the unit type Sales Unit for Alpine Mint Summer Cooler.
- On the Alpine Mint Summer Cooler record page, click the Related tab.
- In the Units of Measure list, click New.
- Select the unit type for one unit of measure of a product. Fatima selects Sales Unit.
- Enter the order of the unit in the hierarchy. Fatima enters
2. - Enter the number of pieces of the unit that makes one parent unit. Fatima enters
24. - Enter the number of pieces of the smallest unit in the hierarchy that makes one unit. Fatima enters
12. - Select Is Order Unit to indicate that the UoM is the default order unit of the product.
- Select Order Ability to indicate that the UoM is available for placing an order.
- Enter other details to create the unit of measure. For information related to the different fields, see Add a Unit of Measure.
- Click Save.
Use Units of Measure for Basic Pricing
UoMs help determine the basic pricing for a quantity of product ordered. Let’s see an example.
The product Alpine Mint Summer Cooler has two UoMs defined for Consumer Unit and Sales Unit. For both these UoMs, the Order Ability option is selected, which indicates that both the UoMs are available for placing an order.
The Consumer Unit is 12 pieces per parent unit and it’s marked as the Price Unit that is the default unit for pricing. Fatima has defined the price for one Consumer Unit in the Product Condition related list as $0.83.
During order taking, a user can place an order for a product quantity in either Consumer Unit or Sales Unit.
The system calculates the price for:
- Consumer Units: Ordered Quantity * $0.83
- Sales Units: Ordered Quantity * $0.83 * 12
The Road Ahead
With help from Fatima, Gustavo can easily track and review Alpine product records for various NTO customer accounts. The product hierarchy levels and units of measure help him manage business processes such as order entry.
Gustavo can also perform other tasks, such as associating a product to a store or adding information about product parts or product warehouses.
Gustavo gathers useful insights from product records, which help him with sales optimization and retail execution activities. The future looks bright for Gustavo and his team.
